Temenos Ag · SIX:TEMN
Temenos — Investor Day (December 2011)
20 slides from Temenos's investor day presentation, December 2011
Slide 1: The Banking Software Company
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Slide 2: Agenda
Agenda 09:00 – 09:05 Welcome and Overview Max Chuard – Director M&A & IR 09:05 – 09:50 Growing in an Uncertain World Guy Dubois – CEO Harnessing the Forces of Change: 09:50 – 10:20 Joao Caldeira – Deloitte Has the Time for Global Core Banking Arrived? 10:20 – 10:45 Break Lino Finini – Head of Back O
Slide 3: Growing in an uncertain world
Growing in an uncertain world Guy Dubois, CEO
Slide 4: Temenos Investor Day
Temenos Investor Day 1. Our market supports sustainable, mid-term growth 2. Our value proposition answers the industry’s challenges 3. We have the strategy to extend our leadership 4. We are outlining mid-term financial goals and have the right team to deliver 4
Slide 5: The Banking Market Today
The Banking Market Today Market shocks keep coming RoE Levels Pre- And Post-Crisis Sovereign Pre-crisis Global Financial Crisis Debt Crisis Banking industry profitability has been rebased (BCG, Thomson Reuters) The crisis has exposed the structural problems in the banking industry 5
Slide 6: Core Banking Market Dynamics
Core Banking Market Dynamics 1 Core banking market is big… 2 …growing… Spend on Core Banking vs. Selected Software Markets (2010) Third-Party Core Banking Spend (Licences & Maintenance) (Celent, IDC – represents internal and external spend on licence & maintenance) (Celent, IDC, Temenos) 3 …underpen
Slide 7: Core Banking Drivers
Core Banking Drivers The need to overcome global …is making core renewal a much more 1 challenges… 3 important strategic priority… More demanding, Higher funding costs less loyal customers $1.3bn CAGR 7.5% $2.1bn CAGR 7.0% $2.7bn Higher capital Heightened requirements competition 2004 2010 2014e Cor
Slide 8: Temenos’ Value Proposition
Temenos’ Value Proposition Value Proposition Our products are open, integrated, componentised and upgradable, supported by a dedicated professional services organisation & a strong partner ecosystem. We deliver superior business value by productising the domain experience of more than 1,000 customer
Slide 9: Temenos’ Value Proposition - Evidenced
Temenos’ Value Proposition - Evidenced Greater Techcombank has been growing profit per customer by an wallet share average of 25% since going live with T24 Lower asset Bank of Shanghai had NPLs of 1.12% in 2010 (70% below provisions average*) despite an asset CAGR of 26% (7x average*) Market Credit
Slide 10: Temenos’ Leading Position
Temenos’ Leading Position 1 Market Share 2 Customer Profitability USDm 1.4 3000 1.2 2500 18% 1.0 Temenos 2000 0.8 1500 8% 0.6 Rest of the 1000 market 0.4 500 0.2 0 0.0 2004 2010 Temenos Core banking Legacy customers customers customers Temenos Market Share 2004 vs. 2010 (Licence & Maintenance) Retur
Slide 11: Temenos Growth Record
Temenos Growth Record LTM Revenues and Adjusted EBIT 2011 YTD Performance H1-2006 to H2-2011 510 120 480 450 110 Like-for-Like Revenues +1.5% 420 100 Adjusted EBIT –12% LTM Adjusted EBIT in USDm 390 90 360 LTM Revenues in USDm 330 80 300 70 270 High exposure to Europe 60 240 210 50 180 40 150 Sales
Slide 12: Temenos’ Recent Business Performance
Temenos’ Recent Business Performance Year to Date 2011 vs. 2010 34 Number of new banks signed +10% 36 Number of customer go-lives +24% 18.5% Estimated market share +150bps >97% Maintenance renewal rate unchanged #1 On the IBS Sales League Table unchanged 1,700 Number of partners consultants +350 Tem
Slide 13: Temenos’ Strategic Priorities
Temenos’ Strategic Priorities 1 Extend leadership with innovative apps built on superior architecture 2 Place a relentless focus on sales to drive growth 3 Create a profitable, knowledge led, expert services organisation 4 Continue to strengthen our partner ecosystem 5 Exploit growth opportunities w
Slide 14: Progress To Date
Progress To Date Strategic Priorities Year to date Progress 1 Product Leadership • Completed largest ever benchmark with Microsoft • Creation of Product Business Group (PBG) • Increased penetration of Asia market - 17% to 27%* 2 Sales • Completed re-tooling of the sales organisation • Appointed
Slide 15: Mid-term Strategic Goals
Mid-term Strategic Goals Strategic Priorities Targeted Directions Key Metrics • Leader in chosen sectors eg Retail, WM Top 2 1 Product Leadership • Exploit market leading architecture #1 • Grow share of sales to customer base 46% to >55%* 2 Sales • Focus on key geos - Asia & Americas 35% to >40%* •
Slide 16: Mid-term Financial Goals
Mid-term Financial Goals 1 Return to 10-15% annual licence growth 2 Restore Services to double-digit margins 3 Keep Services Contribution to c. 25% of total revenues 4 Increase Adj. EBIT margins by 100-150bps on average p.a. 5 Maintain 100% conversion of EBITDA into Cash from Ops We aim for consiste
Slide 17: Temenos’ Competitive Advantages
Temenos’ Competitive Advantages Temenos’ 10 Sustainable Competitive Advantages 1. Flexible, configurable system built on open architecture 2. Packaged front to back integrated suite with best of breed components 3. Greatest functional breadth 4. Platform independence 5. Country-specific conf
Slide 18: Temenos Investor Day
Temenos Investor Day 1. Our market supports sustainable, mid-term growth 2. Our value proposition answers the industry’s challenges 3. We have the strategy to extend our leadership 4. We are outlining mid-term financial goals and have the right team to deliver 18
Slide 19: Leadership Team
Leadership Team Guy Dubois CEO Andre Loustau David Arnott CTO CFO Mark Winterburn Mark Cullinane Bernd-Michael Rumpf PBG COO CSG 19
Slide 20: TEMENOS
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