Temenos Ag · SIX:TEMN
Temenos — Merger or Acquisition (March 2007)
30 slides from Temenos's merger presentation, Mar 21, 2007
Slide 1: Metavante and Temenos Strategic Alliance
Metavante and Temenos Strategic Alliance Metavante and Temenos Strategic Alliance Creating the most advanced innovation of U.S. banking systems in a generation New York, March 21, 2007 London, March 22, 2007
Slide 2: Agenda
Agenda § Introduction to TEMENOS and Highlights of the Agreement, Andreas Andreades § Introduction to Metavante, Mike Hayford § U.S. Market, Alex Groenendyk § Strategic Alliance, Jim Dempster § Q&A
Slide 3: Introduction to TEMENOS and Highlight of the Agreement
Introduction to TEMENOS and Highlight of the Agreement Andreas Andreades, CEO, TEMENOS
Slide 4: TEMENOS Group
TEMENOS Group § TEMENOS’ VISION is to become the leading global brand in financial services software. TEMENOS today is the provider of choice for the world’s leading financial institutions: § Supporting two product lines for core processing: § TEMENOS T24™ (T24): Private, Universal, Wholesale Banks
Slide 5: Global Reach
GLOBAL REACH Amsterdam Copenhagen New York(1) LONDON Warsaw HEMEL HEMPSTEAD Moscow Seoul Dublin Luxembourg Paris Zurich GENEVA(1) Beijing Seoul MADRID Tehran Tokyo Orlando Athens Shanghai Beirut Bangkok Miami Hong Kong Mexico City Riyadh Taipei Manila Dubai Kuala Lumpur Quito Mumbai Singapore CHENNA
Slide 6: Credibility with Top Tier Banks
Credibility with Top Tier Banks Number of Clients 600 546 505 500 437 400 382 365 300 272 212 200 176 154 114 100 86 71 47 21 0 93 94 98 99 02 03 04 95 96 97 00 01 05 06 19 19 19 19 19 19 19 20 20 20 20 20 20 20
Slide 7: The Agreement
The Agreement § TEMENOS and Metavante have entered into an exclusive joint development and distribution agreement. § Metavante will be the distributor of TCB in the U.S. and TEMENOS will retain royalties on license and maintenance fees, outsourcing fees, and professional services revenues. TEMENOS a
Slide 8: The Agreement (continued)
The Agreement (continued) § TEMENOS expects the combination of Metavante’s leading position and development and distribution prowess in the banking software market, its expertise in outsourcing services, along with the product superiority of TCB, will prove a formidable combination both in the U.S.
Slide 9: The Agreement (continued)
The Agreement (continued) § As part of this agreement TEMENOS intends to issue to Metavante Corporation 2.5 million warrants over TEMENOS stock at a strike price of CHF19.90. Two million of these warrants will vest in 2013 subject to achievement of incremental revenues to the minimum contracted reve
Slide 10: Introduction to Metavante Corporation
Introduction to Metavante Corporation Mike Hayford, Sr. EVP & COO, Metavante
Slide 11: Strategic Alliance
Strategic Alliance § On February 26th, Temenos and Metavante entered into a strategic alliance § Joint development to create Metavante’s Strategic Banking Platform for the U.S. Market using TEMENOS CoreBanking (TCB) as foundation § Metavante has exclusive rights for TCB in the U.S. § Selective, non-
Slide 12: Metavante Corporation
Metavante Corporation § Technology subsidiary of Marshall & Ilsley Corp. (NYSE: MI) § One of the top three U.S. bank technology and payments processors § Business model: +80% recurring revenue driven by financial account processing, related payment services § 2006 Revenue $1.504 billion Net income $
Slide 13: Locations in 35 Cities
Locations in 35 Cities § 5,500 Employees § 8,600 Clients in 50 States and 32 Foreign Countries
Slide 14: Banking and Payments Leadership
Banking and Payments Leadership § Relationships with 48 of top 50 § Business Process Outsourcing U.S. banks relationships with over 475 organizations worldwide § Commercial Treasury relationships with 17 of § Over 4,000 endpoints in top 20 U.S. banks Endpoint Exchange Network § Delivering complete,
Slide 15: Metavante Banking Statistics
Metavante Banking Statistics § 908 core-processing financial institutions § representing $1.04 trillion in banking assets § 12% market share of U.S. commercial banks § 43 processing clients, $6 to $60 billion in assets, 38% market share § 22 million deposit accounts processed, outsourced or in- hous
Slide 16: Metavante Business Strategy
Metavante Business Strategy “To be the premier provider of global integrated banking and payments solutions” 1. Increase market share in U.S. community, regional and national banks 2. Expand our presence in international markets 3. Expand electronic payment solutions including healthcare and governm
Slide 17: U.S. Market
U.S. Market Alex Groenendyk, President Americas, TEMENOS
Slide 18: The Opportunity
The Opportunity § U.S. core systems are 20 to 30 years old and have reached current state through a process of build up from old architectures, often by silo and acquisition combined with years of modification upon modification. § This has created the following issues: § Multiple instances of custom
Slide 19: The U.S. Market
The U.S. Market § There are approximately 8,000 retail / commercial banks § We will initially target the $5 billion upwards – 150 institutions starting with the top 50. § This segment today, spend approximately $5.5 billion on IT § In excess of 70% to 80% is spent on maintenance instead of new busin
Slide 20: U.S. Players
U.S. Players Vendor Type Annual Rev. Rank All FI Rank Small FI Fiserv, Inc. TK/OS/SW $4.059B 1 1 Fidelity Ntl. Info. Svcs. TK/OS/SW $4.0B 2 4 Metavante TK/OS/SW $1.247B 3 3 Jack Henry & Assoc. TK/OS $535.9M 4 2 Open Solutions, Inc. TK/OS $370 M 5 5 Harland Financial Sols. TK/OS 256.8 M 6 6 Computer
Slide 21: Overseas Competition
Overseas Competition § Key competitors are other global banking solutions attempting to enter U.S. market: § Oracle/I-Flex § SAP/Accenture § Infosys/Finnacle § A critical advantage of Metavante/Temenos is the U.S. banking knowledge within Metavante, existing customer relationships and all the ancill
Slide 22: Strategic Alliance
Strategic Alliance Jim Dempster, Chief Technology Officer, Metavante
Slide 23: Why Metavante and Temenos?
Why Metavante and Temenos? Bringing together U.S. and global knowledge and experience; a unique combination § This Strategic Alliance is a Winning Combination § Temenos brings advanced technology and international perspective with over 580 installations worldwide § Metavante has extensive knowledge
Slide 24: The Winning Combination
The Winning Combination Temenos and Metavante will combine the best of U.S. banking technologies and functionality with an U.S. Global Banking advanced technology platform, and global banking Technology functions and processing characteristics, to lead the change to U.S. Global Banking 2025 U.S. Tec
Slide 25: Metavante and Temenos Have a Solution
Metavante and Temenos Have a Solution § Co-develop an advanced U.S. global banking platform based on TCB using an incremental, component-based release plan § The solution will consist of licensed software components targeted at the top 50 U.S. banks marketplace § It will also include software compon
Slide 26: Metavante's Complete Solution
Metavante’s Complete Solution Metavante-TCB System ACH Core Banking Components VRU Single Source of Customer Information Check Integrated Multi-channel Delivery Enterprise Customer Credit Internet Management Card Payment Services Debit Card ATM/POS Account Processing and Servicing Payment Deposit Le
Slide 27: The Solution
The Solution § Based on technology developed nine years ago, the solution offered is party-centric with a highly flexible product catalogue, facilitating maximum speed to market of new products - all within one system § Build an advanced “U.S. Global Banking Platform” § TCB foundation § Incremental,
Slide 28: Taking the Product to Market
Taking the Product to Market § Metavante becomes exclusive distributor of the TCB- based product line in the U.S. § Metavante will initially target the top 50 U.S. financial institutions § Metavante will offer the joint product on a component basis, enabling large banks to replace aging legacy syste
Slide 29: Investment in the Future of U.S. Core Banking
Metavante and Temenos are jointly making an investment in the future of U.S. core banking Strategic alliance will transform businesses by enabling dramatic change - working faster, better and more profitably QUESTIONS & ANSWERS
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