Slides
Page 1
1Copyright © 2025 Temenos
Page 2
2Copyright © 2025 Temenos Copyright © 2025 Temenos Jean-Pierre Brulard, CEO Takis Spiliopoulos, CFO Financial Results and Business Update 22 July 2025 Quarter ended, 30 June 2025
Page 3
3Copyright © 2025 Temenos 3 Disclaimer Our presentation and this document may contain forward-looking statements relating to the future of the business and financial performance of Temenos AG. Any statements we make about our expectations, plans and prospects for the Company, including any guidance on the Company’s financial performance, constitute forward-looking statements. The forward-looking financial information provided by the Company on the conference call and in this document represent the Company’s current view and estimates as of July 22nd, 2025. We anticipate that subsequent events and developments may cause the Company’s guidance and estimates to change. Future events are inherently difficult to predict. Accordingly, actual results may differ materially from those indicated by these forward-looking statements as a result of a variety of factors. More information about factors that potentially could affect the Company’s financial results is included in its annual report available on the Company’s website. While the Company may elect to update forward-looking information at some point in the future, the Company specifically disclaims any obligation to do so. © Temenos AG 2025
Page 4
4Copyright © 2025 Temenos 4 Non-IFRS information In its presentation and in this document, the Company may present and discuss non-IFRS measures. Readers are cautioned that non-IFRS measures are subject to inherent limitations. Non-IFRS measures are not based on any comprehensive set of accounting rules or principles and should not be considered as a substitute for IFRS measurements. Also, the Company’s supplemental non-IFRS measures may not be comparable to similarly titled non-IFRS measures used by other reporting companies. In the Appendix accompanying this presentation, the Company sets forth supplemental non-IFRS figures for revenue, operating costs, EBIT, EBITDA, net earnings and earnings per share that exclude the effect of share-based payments, the carrying value of acquired companies’ deferred revenue, the amortization of acquired intangibles, discontinued activities, acquisition/investment related charges, restructuring costs, and the income tax effect of the non-IFRS adjustments. These tables also present the most comparable IFRS financial measures and reconciliations. In addition, the Company provides percentage increases or decreases in its revenue (on both an IFRS and non-IFRS basis) eliminating the effect of changes in currency values when it believes that this presentation is helpful to an understanding of trends in its business. Accordingly, when trend information is expressed "in constant currencies“ or “c.c.”,the results of the "prior" period have first been recalculated using the average exchange rates of the comparable period in the current year, and then compared with the results of the comparable period in the current year.
Page 5
5Copyright © 2025 Temenos 5 Agenda CEO update Operational and financial update Appendix 5
Page 6
6Copyright © 2025 Temenos Strong Q2-25 and H1-25 performance across key metrics Sales environment remained stable, with large deals signing Strong performance in Europe and the Americas in particular Good traction with existing customers, also winning significant number of new logos Continued executing targeted investments across the business including new senior hires in sales and product and technology Strong growth in profitability driven by good cost control and ongoing savings from cost efficiency programs New AI-integrated products launched at Temenos Community Forum Sale of Multifonds completed as planned on 31st May 2025 FY-25 guidance raised; FY-28 targets confirmed Q2-25 highlights Note: figures are proforma, excluding Multifonds
Page 7
7Copyright © 2025 Temenos Q2-25 deal announcements and customer success • Banco da Amazonia, Brazilian regional development bank • Core banking, payments and digital for retail, SME and corporate • Selected Temenos to support move to fully digital bank with national reach, launch new products, and robust scalability and efficiency New customer announcements • EastWest Bank, a leading universal bank in the Philippines • SaaS core and digital for retail, SME and corporate • Selected Temenos for scalability, increased efficiency and ability to drive digital transformation, as well as expansion into new business lines including Wealth Customer success 81 go-lives in Q2-25 Total of 151 go-lives in H1-25 Note: go-live figures for Q2-25 and H1-25 excluding Multifonds
Page 8
8Copyright © 2025 Temenos Temenos Community Forum ‘25 Close to 2,000 attendees Over 90 countries Key product announcements Temenos product manager copilot Gen AI assistant integrating Microsoft Azure OpenAI Service, embedded within the Temenos Retail core banking solution Temenos Financial Crime Mitigation AI agent Detect, investigate, and prevent sanctions transgressions against global watchlists, reducing false positives and evaluating alerts in real time
Page 9
9Copyright © 2025 Temenos Temenos named Best Core Banking System Global recognition Temenos named World’s Best Core Banking Solution Temenos ranked 4th most sustainable company in the world Temenos ranked #1 in 13 categories including Universal Core Banking (20th Year)
Page 10
10Copyright © 2025 Temenos Strategy execution update Product & technology investment Go To Market investment G&A and Operating Model Progress • 50+ new developers and architects hired in US innovation hub • Continued investment in new senior talent including Chief Security and Risk Officer and Chief Technology Officer • 25+ new sales hiring in key regions globally • Investing in our product and technology, in particular our corporate and wealth roadmaps Customer lifecycle
Page 11
11Copyright © 2025 Temenos 11 Agenda CEO update Operational and financial update Appendix 11
Page 12
12Copyright © 2025 Temenos Strong Q2-25 and H1-25 revenue growth (proforma) Note: growth rates are non-IFRS c.c.. Proforma excludes Multifonds Significantly exceeded Q2-25 guidance range whilst absorbing headwind from BNPL client Q2-24 Q2-25 100 125+24% Subscription and SaaS H1-24 H1-25 180 202 +12% Subscription and SaaS Q2-24 Q2-25 237 278 +16% Total Revenue H1-24 H1-25 451 498 +10% Total Revenue
Page 13
13Copyright © 2025 Temenos Strong growth in profit (proforma) Note: non-IFRS EBIT growth rates are c.c., non-IFRS EPS growth rates are reported. Proforma excludes Multifonds Q2-24 Q2-25 86 112+28% Non-IFRS EBIT Q2-24 Q2-25 0.90 1.22+36% Non-IFRS EPS Ongoing targeted investments offset by cost efficiency savings and good cost control H1-24 H1-25 150 181 +19% Non-IFRS EBIT H1-24 H1-25 1.54 1.96+27% Non-IFRS EPS
Page 14
14Copyright © 2025 Temenos ARR increasing as a percentage of product revenue (proforma) Note: Figures are non-IFRS and in constant currencies. Proforma excludes Multifonds. Q2-25 ARR LTM Q2-25 Product Revenue Q2-24 ARR LTM Q2-24 Product Revenue 791 893 715 838 Q2-25 ARR equal to 89% of LTM product revenue vs. 85% in Q2-24
Page 15
15Copyright © 2025 Temenos Proforma ARR and non-IFRS income statement – operating ARR (USDm) Q2-25 Q2-24 Y-o-Y reported Y-o-Y c.c. H1-25 H1-24 Y-o-Y reported Y-o-Y c.c. ARR 790.6 703.7 12% 11% 790.6 703.7 12% 11% Income statement (USDm) Q2-25 Q2-24 Y-o-Y reported Y-o-Y c.c. H1-25 H1-24 Y-o-Y reported Y-o-Y c.c. Subscription and SaaS 124.9 99.9 25% 24% 201.7 179.6 12% 12% Maintenance 120.0 107.4 12% 10% 233.5 210.2 11% 10% Services 32.8 30.1 9% 6% 62.8 61.6 2% 1% Total revenue 277.6 237.4 17% 16% 497.9 451.5 10% 10% Operating costs 166.0 151.5 10% 8% 316.9 301.7 5% 5% EBIT 111.6 85.9 30% 28% 181.1 149.8 21% 19% Margin 40.2% 36.2% 4% pts 4% pts 36.4% 33.2% 3% pts 3% pts EBITDA 130.6 106.0 23% 22% 219.2 190.0 15% 14% Margin 47.0% 44.7% 2% pts 2% pts 44.0% 42.1% 2% pts 2% pt Q2-25 proforma (excluding Multifonds) YTD proforma (excluding Multifonds)
Page 16
16Copyright © 2025 Temenos • Q2-25 LFL non-IFRS revenue up 16% • Q2-25 LFL non-IFRS product revenue up 17% • Q2-25 LFL non-IFRS costs up 8% • Q2-25 LFL non-IFRS product costs up 9% 0 50 100 150 200 250 300 Q2-24 Q2-25 +16% LFL non-IFRS Services revenue LFL non-IFRS Product revenue 6% 17% 0 20 40 60 80 100 120 140 160 180 Q2-24 Q2-25 +8% Note: figures are non-IFRS c.c. growth rates unless otherwise stated, excluding Multifonds Like-for-like proforma revenue and costs LFL non-IFRS Services cost LFL non-IFRS Product costs 4% 9%
Page 17
17Copyright © 2025 Temenos In USDm, except EPS Q2-25 Q2-24 Y-o-Y reported Q2-25 Q2-24 Y-o-Y reported EBIT 111.6 85.9 30% 115.7 90.4 28% Net finance charge (2.8) (4.3) (35%) (2.7) (4.2) (35%) FX gain / (loss) (1.2) 0.9 229% (1.2) 0.9 229% Tax (21.0) (16.2) 29% (21.8) (17.4) 25% Net profit 86.6 66.3 31% 90.0 69.8 29% EPS (USD) 1.22 0.90 36% 1.27 0.94 35% Non-IFRS income statement – non-operating Proforma (excluding Multifonds) Reported
Page 18
18Copyright © 2025 Temenos Free cash flow growing double-digit (proforma) Note: Figures are non-IFRS reported growth rates. Proforma excludes Multifonds. Q2-24 Q2-25 61 65 +8% FCF Free cash flow growth of 10% in H1-25 H1-24 H1-25 104 114 +10% FCF
Page 19
19Copyright © 2025 Temenos Leverage at 1.2x at end of Q2-25 Group liquidity (reported) USDm Note: Net debt is reported Cash on Balance Sheet (31/03/25) 79 Operating Cash (6) Tax Capex 2 Net Proceeds / Repayment of Borrowings and Investments 65 Share buyback (160) 135 305 Dividend payment Reported Net Debt Borrowings (111) (888) (17) Net Proceeds on disposal of business Interest, FX & Leases Cash on Balance Sheet (30/06/25) 319 (582)
Page 20
20Copyright © 2025 Temenos Debt, leverage and capital allocation P&L and cash flow (proforma, non-IFRS, c.c.) Debt, leverage and capital allocation (reported) Note: Net debt adjusted for swaps add-back for leverage calculation • Received investment grade rating of BBB- with a stable outlook from S&P Global Ratings • New RCF signed for USD 500m, no further refinancing required until 2028 • CHF 136m of shares repurchased by end of June out of a total of up to CHF 250m • Net debt of USD 539m as of 30 June 2025 • Leverage at 1.2x at quarter end, down from 1.3x in Q1-25
Page 21
21Copyright © 2025 Temenos New FY-25 guidance FY-24 proforma (USD, c.c.) ARR (c.c.) At least 12% growth (no change) 768m Subscription and SaaS (c.c.) At least 6% growth (previously 5-7%) 413m EBIT (c.c.) At least 9% growth (previously at least 5%) 308m EPS (reported) 10-12% growth (previously 7-9%) 3.35* Free cash flow (reported) At least 12% growth (no change) 223m* • FY-24 EPS and free cash flow are not restated for currency. • See Disclaimer at beginning of this presentation on forward-looking statements FY-25 guidance raised (non-IFRS, proforma) • FY-25 guidance raised; excludes any contribution from Multifonds • FY-24 proforma also excludes any contribution from Multifonds and is constant currency
Page 22
22Copyright © 2025 Temenos Updated FY-28 targets (USD) FY-24 proforma (USD, c.c.) Implied CAGR (unchanged from Nov-24 CMD) ARR >1.2bn 768m 13% EBIT c.450m 308m 10% Free Cash Flow (new) c.400m 223m* 16% • Free Cash Flow new definition includes IFRS 16 leases and interest costs • FY-24 Free Cash Flow is reported figure and not restated, new definition includes IFRS 16 leases and interest costs • Tax rate expected to marginally decrease from 20-22% to 19-21% • See disclaimer at beginning of this presentation on forward-looking statements FY-28 targets (non-IFRS) • FY-28 targets excluding any contribution from Multifonds • FY-24 proforma also excludes contribution from Multifonds and is constant currency
Page 23
23Copyright © 2025 Temenos 23 Agenda CEO update Operational and financial update Appendix 23
Page 24
24Copyright © 2025 Temenos In preparing the FY-25 guidance, the Company has assumed the following FX rates: EUR to USD exchange rate of 1.16 GBP to USD exchange rate of 1.34; and USD to CHF exchange rate of 0.80 FX and other assumptions underlying FY-25 guidance The Company has also assumed the following for FY-25 guidance: • FY-25 tax rate expected to be between 15-17%, benefiting from one-off tax impact of c.USD 15m from prior years; normalized tax rate of 19-21%
Page 25
25Copyright © 2025 Temenos FX exposure % of total USD EUR GBP CHF INR RON Other Subscription and SaaS 70% 19% 2% 2% 0% 0% 7% Maintenance 78% 14% 2% 1% 0% 0% 5% Services 50% 29% 5% 7% 0% 0% 9% Revenues 71% 18% 2% 2% 0% 0% 7% Non-IFRS costs 31% 13% 10% 5% 17% 2% 22% Non-IFRS EBIT 147% 28% (13)% (4)% (32)% (3)% (23)% NB. All % are approximations based on FY-24 actuals Mitigated FX exposure – matching of revenues / costs and hedging 25
Page 26
26Copyright © 2025 Temenos Revenue line items and cloud ARR disclosure • Annual disclosure on cloud ARR introduced to provide transparency on growth in cloud adoption • Revenue disclosure updated to reflect changes in customer demand and industry best practice, with increasing use of hybrid and public cloud • Renaming ‘total software licensing’ as ‘subscription and SaaS’ to bring in line with leading global software players • ‘Subscription and SaaS’ will comprise subscription, term license and SaaS revenue • Term license expected to continue declining to around USD 20-30m p.a. steady state ARR ARR Revenue Subscription Term license SaaS Total software licensing Maintenance Services Total revenue Previous disclosure ARR ARR Cloud ARR (% of total ARR) Revenue Subscription and SaaS Maintenance Services Total revenue Updated disclosure
Page 27
27Copyright © 2025 Temenos ARR, USD m Q1-24 Q2-24 Q3-24 Q4-24 Q1-25 Q2-25 ARR 683.5 703.7 721.4 749.5 741.4 790.6 Quarterly proforma ARR and FCF FCF, USD m Q1-24 Q2-24 Q3-24 Q4-24 Q1-25 Q2-25 FCF 43.5 60.6 22.5 96.6 48.8 65.3
Page 28
28Copyright © 2025 Temenos Total software licensing revenue breakdown by geography Q2-25 (proforma) 15% 31% 17% 37% APAC Europe MEA Americas
Page 29
29Copyright © 2025 Temenos DSOs at 150 at Q2-25 (Q2-25 proforma* DSOs at 160) 136 133 134 152 153 150 146 147 160 0 20 40 60 80 100 120 140 160 Q1-24 Q2-24 Q3-24 Q4-24 Q1-25 Q2-25 Q4-24 ProformaQ1-25 ProformaQ2-25 Proforma DSOs Note: Proforma view excludes Multifonds revenue and receivables
Page 30
30Copyright © 2025 Temenos Leverage ratios 1.4x 1.4x 1.8x 1.3x 1.3x 1.2x 0.0x 0.5x 1.0x 1.5x 2.0x Q1-24 Q2-24 Q3-24 Q4-24 Q1-25 Q2-25 Balance sheet – leverage Note: Includes Multifonds EBITDA
Page 31
31Copyright © 2025 Temenos USDm Q1-24 Q2-24 Q3-24 Q4-24 FY-24 Cap’ dev’ costs (19.3) (17.1) (17.4) (16.5) (70.3) Amortisation 14.8 14.3 16.1 14.8 60.0 Net cap’ dev’ (4.6) (2.7) (1.3) (1.7) (10.3) Capitalization of development costs Proforma, USDm Q1-25 Q2-25 Q3-25 Q4-25 FY-25 Cap’ dev’ costs (15.4) (15.0) Amortisation 13.1 13.1 Net cap’ dev’ (2.2) (1.9)
Page 32
32Copyright © 2025 Temenos Reconciliation from IFRS to non-IFRS IFRS revenue measure + Deferred revenue write-down = Non-IFRS revenue measure IFRS profit measure +/- Share-based payments and related social charges +/- Deferred revenue write down + / - Discontinued activities + / - Gain/loss from sale of business + / - Amortisation of acquired intangibles + / - Restructuring / M&A related costs + / - Fair value change on financial investments + / - Taxation = Non-IFRS profit measure
Page 33
33Copyright © 2025 Temenos Accounting elements not included in non-IFRS guidance Below are the accounting elements not included in the FY-25 non-IFRS guidance: FY-25 estimated share-based payments charge of c.5% of revenue FY-25 estimated amortisation of acquired intangibles of USD 45m FY-25 estimated restructuring / M&A related costs of USD 35m Restructuring / M&A related costs include costs incurred in connection with a restructuring programme or other organisational transformation activities planned and controlled by management, or cost related mainly to advisory fees, integration, separation, carve-out costs and earn out credits or charges. Severance charges, for example, would only qualify under this expense category if incurred as part of a company-wide restructuring plan. These estimates do not include impact of any further acquisitions or restructuring programmes commenced after July 22nd, 2025. The above figures are estimates only and may deviate from expected amounts.
Page 34
34Copyright © 2025 Temenos Earnings Reconciliation – IFRS to non-IFRS In USDm, except EPS 3 Months Ending 30 June 3 Months Ending 30 June 2025 2025 2024 2024 IFRS Non-IFRS adj. Non-IFRS IFRS Non-IFRS adj. Non-IFRS Subscription and SaaS 127.0 127.0 101.9 101.9 Maintenance 125.2 125.2 115.0 115.0 Services 33.3 33.3 31.5 31.5 Total Revenue 285.5 285.5 248.4 248.4 Total Operating Costs (207.2) 37.3 (169.8) (195.8) 37.8 (158.0) Restructuring/M&A costs (16.3) 16.3 (14.8) 14.8 - Amort of Acq’d Intang. (10.7) 10.7 (10.6) 10.6 - Share-based payments (10.3) 10.3 (12.5) 12.5 - Operating Profit 78.3 37.3 115.7 52.6 37.8 90.4 Operating Margin 27% 41% 21% 36% Financing Costs (13.2) 9.3 (3.9) (4.9) 1.6 (3.3) Gain on sale of Multifonds 136.5 (136.5) - - - - Taxation (36.9) 15.1 (21.8) (10.6) (6.8) (17.4) Net Earnings 164.7 (74.7) 90.0 37.1 32.7 69.8 EPS (USD per Share) 2.32 1.05 1.27 0.50 0.44 0.94
Page 35
35Copyright © 2025 Temenos Net earnings reconciliation IFRS to non-IFRS In USDm, except EPS Q2-25 Q2-24 IFRS net earnings 164.7 37.1 Share-based payments (10.3) (12.5) Amortisation of acquired intangibles (10.7) (10.6) Restructuring / M&A related costs (16.3) (14.8) Fair value change on financial instruments (9.3) (1.6) Taxation (15.1) 6.8 Gain on sale of Multifonds 136.5 0.0 Net earnings for non-IFRS EPS 90.0 69.8 No. of dilutive shares (m shares) 71.0 73.9 Non-IFRS diluted EPS (USD) 1.27 0.94
Page 36
36Copyright © 2025 Temenos Proforma & Reported ARR and non-IFRS income statement – operating ARR (USDm) Q2-25 Q2-24 Y-o-Y reported Y-o-Y c.c. ARR 790.6 703.7 12% 11% Income statement (USDm) Q2-25 Q2-24 Y-o-Y reported Y-o-Y c.c. Subscription and SaaS 124.9 99.9 25% 24% Maintenance 120.0 107.4 12% 10% Services 32.8 30.1 9% 6% Total revenue 277.6 237.4 17% 16% Operating costs 166.0 151.5 10% 8% EBIT 111.6 85.9 30% 28% Margin 40.2% 36.2% 4% pts 4% pts EBITDA 130.6 106.0 23% 22% Margin 47.0% 44.7% 2% pts 2% pts Q2-25 proforma (excluding Multifonds) Q2-25 Q2-24 Y-o-Y reported Y-o-Y c.c. 790.6 742.4 6% 5% Q2-25 Q2-24 Y-o-Y reported Y-o-Y c.c. 127.0 101.9 25% 24% 125.2 115.0 9% 7% 33.3 31.5 6% 3% 285.5 248.4 15% 13% 169.8 158.0 7% 6% 115.7 90.4 28% 26% 40.5% 36.4% 4% pts 4% pts 134.7 111.9 20% 19% 47.2% 45.0% 2% pts 2% pt Q2-25 reported
Page 37
37Copyright © 2025 Temenos Non-IFRS adjustments Share-based payment charges Adjustment made for shared-based payments and social charges Deferred revenue write-down Adjustments made resulting from acquisitions Discontinued activities Discontinued operations at Temenos that do not qualify as such under IFRS Gain/loss from sale of business Gain or loss from sale of part of the business Acquisition / Investment related finance cost Mainly relates to acquisition & investment related financing expenses and fair value changes on investments Amortisation of acquired intangibles Amortisation charges as a result of acquired intangible assets Restructuring / M&A related costs Costs incurred in connection with a restructuring programme or other organisational transformation activities planned and controlled by management, or cost related mainly to advisory fees, integration, separation, carve-out costs and earn out credits or charges. Severance charges, for example, would only qualify under this expense category if incurred as part of a company -wide restructuring plan. Taxation Adjustments made to reflect the associated tax charge mainly on deferred revenue write-down, gain/loss from sale of business and amortization of acquired intangibles, fair value changes on investment and on the basis of Temenos’ expected effective tax rate Other Proforma (excluding Multifonds) Income statement line items and free cash flow adjusted to remove any contribution from Multifonds, with sale of Multifonds expected to close in Q2-25. Revenue visibility Visibility on revenue includes a combination of revenue that is contractually committed and revenue that is in our pipeline and that is likely to be booked, but is not contractually committed and therefore may not occur. Constant currencies Prior year results adjusted for currency movement Like-for-like (LFL) Adjusted prior year for acquisitions and movements in currencies SaaS Revenues generated from Software-as-a-Service, reported in Subscription and SaaS. Subscription Revenue from software sold on a subscription basis. License and Maintenance are recognized separately, with the License obligation reported in Subscription and SaaS. Annual Recurring Revenues (ARR) Annualized contract value committed at the end of the reporting period from active contracts with recurring revenue streams. Includes New Customers, up- sell/cross-sell, and attrition. Excludes variable elements. Product Revenues Revenues from Subscription and SaaS and Maintenance combined i.e. Total revenues excluding services revenues Non-IFRS definitions
Page 38
38Copyright © 2025 Temenos Thank you temenos.com