Temenos Ag · SIX:TEMN
Temenos — Investor Day (November 2010)
17 slides from Temenos's investor day presentation, Nov 19, 2010
Slide 1: The Banking Software Company
\é The Banking Software Company
Slide 2: Drivers to Growth
Drivers to Growth Low penetration - Structural Growth Market Partner Programme Extended Sales Channel Technology Choice Rapid Scalability of Delivery Product Strategy Technical Leadership Broaden Functional Coverage Lower Risk Implementation Acquisitions Create Scale Enhance Leadership Accelerate Gr
Slide 3: Market Dynamics
Market Dynamics Core banking is the most exciting software market in the world offering low penetration coupled with strong drivers Addressable* 10-15% CAGR Today 12.6bn • Slower economic growth • Lower leverage 2.1bn • More regulation • Greater competitive pressures *Source: Celent, Gartner, IDC, T
Slide 4: Temenos proven value proposition
Temenos proven value proposition 4
Slide 5: Drivers to Growth
Drivers to Growth Low penetration - Structural Growth Market Partner Programme Extended Sales Channel Technology Choice Rapid Scalability of Delivery Product Strategy Technical Leadership Broaden Functional Coverage Lower Risk Implementation Acquisitions Create Scale Enhance Leadership Accelerate Gr
Slide 6: Broadest Choice
Broadest Choice ‘e ain “ORACLE e) evenos | TEMENOS oo (Cognizant tl Deloitte Capge =)" The Banking Software Company
Slide 7: Partners add scale to service capability
Partners add scale to service capability Numbers of external Temenos Consultants 1000 Capgemini Deloitte 750 Microsoft 500 Cognizant 250 Program Start Local Partners 2007 2008 2009 2010 7
Slide 8: Drivers to Growth
Drivers to Growth Low penetration - Structural Growth Market Partner Programme Extended Sales Channel Technology Choice Rapid Scalability of Delivery Product Strategy Technical Leadership Broaden Functional Coverage Lower Risk Implementation Acquisitions Create Scale Enhance Leadership Accelerate Gr
Slide 9: T24 Addressable Market
T24 Addressable Market Temenos Current Addressable Market DISTRIBUTION CHANNELS Insight ARC AML CRM BANKING INVESTMENT SERVICES INSURANCE BUSINESS INTELLIGENCE Retail/Universal Asset mgmt. T24 RISK & COMPLIANCE TCM Wholesale Life Private General GENERAL SUPPORT STeP PAYMENTS 9
Slide 10: Product Extensions into adjacent markets
Product Extensions into adjacent markets Add-on revenues continue to grow as a percentage of licence revenues 2007 2008 2009 2010 % of licence <5% 5% 10% 15% revenues ARC Biometrics ARC Mobile T-Risk Insight AML STeP Compelling value proposition exists for combining add-on products to T24 licences –
Slide 11: Product Direction
Product Direction • Java version of T24 • T24 SOA and Componentisation • New option on IBM and Oracle stacks • Major re-architecting of T24 into separately • Same code base so development deployable components progressing well efficiency not compromised • Main target is larger banks who seek • Initi
Slide 12: Drivers to Growth
Drivers to Growth Low penetration - Structural Growth Market Partner Programme Extended Sales Channel Technology Choice Rapid Scalability of Delivery Product Strategy Technical Leadership Broaden Functional Coverage Lower Risk Implementation Acquisitions Create Scale Enhance Leadership Accelerate Gr
Slide 13: Strong Acquisition Track Record
Strong Acquisition Track Record 13
Slide 14: Balance sheet – debt and financing
Balance sheet – debt and financing Pro-Forma Comments Q3 2010 (USDm) Credit facilities 161.0 Recently refinanced with a USD 350m facility Other 1.0 Obligations under finance leases TOTAL DEBT 162.0 CASH 177.0 Held in ST deposits & treasury shares NET CASH 15.0 We expect to have leverage of less than
Slide 15: Acquisitions bring us market leadership
Acquisitions bring us market leadership Market share in FST Private Banking Revenues Temenos: 4% Temenos: USD 55m Viveo: 34% Odyssey: USD 75m Combined: 38% Combined: USD 130m Reference Customers Reference Customers Banque de France RBC BNP Paribas ING Credit Agricole Societe Generale Expand product
Slide 16: Strong growth trend
Strong growth trend LTM revenues and adj. EBIT since Q3 2005 (USDm) Adjusted EBIT CAGR of 40% 16
Slide 17: In Summary
In Summary Operating in a growth market Partner strategy Acquisition strategy Product strategy Ensures steady future growth 17