41 of the
world’s
top 50 banks
choose
TEMENOS

Over 3,000 firms across the globe, including 41 of the world’s top 50 banks, rely on Temenos to process the client interactions and daily transactions of more than 500 million banking customers.

The world’s #1 Banking
software company

Our vision is to provide financial institutions, of any size, anywhere
in the world, the software to thrive in the digital banking age.

93

new customer wins in 2019

330

successful deployments in 2019

#1

Best-selling core banking system in the IBS League table for the last 8 years

We achieve this by building, delivering and supporting the world’s best packaged, continuously upgradeable end-to-end banking software which is both cloud native and cloud agnostic; through design led thinking, we orchestrate all our customers’ touchpoints to create a frictionless customer journey.

ONLY FOCUSED ON BANKING, 3,000+ BANKING CLIENTS

LEADING FUNCTIONALITY, LOCALIZATION AND ADVANCED TECHNOLOGY

OPEN & INDEPENDENTLY IMPLEMENTABLE PRODUCTS

cube world

Temenos offers the winning combination of advanced cloud-native, cloud-agnostic and API-first technology and the richest packaged banking functionality to help banks transform faster with the lowest cost of software deployment.

RELENTLESS FOCUS ON INNOVATION

6,500+ CONSULTANTS TAKING A BANK LIVE EVERY DAY

CONTINUOUS & FASTER DEPLOYMENT

CLOUD NATIVE AND CLOUD AGNOSTIC

Temenos solutions are “cloud native” and “cloud agnostic”. This means that the software can run on cloud infrastructures using the features found in them which enable dynamic scalability and built-in resilience.

OPEN APIs

Temenos has a published set of Open APIs which enables clients and other participants in the Temenos technology ecosystem to integrate the solutions into existing operational environments and to design, test and deploy innovative extensions around Temenos’ products.

EXPLAINABLE ARTIFICIAL
INTELLIGENCE (XAI)

Temenos’ patented XAI capabilities are embedded across our products. The technology is a cutting edge innovation which addresses customer and regulator concerns over the use and operation of conventional “black box” AI models which offer little insight as to how they reach their decisions.

Highlights of the year

continued success
year on year

2019 non-IFRS financial highlights
2019 operational highlights

Total software licensing

2019
USD 445m
2018
USD 373m

+19%

Total revenue

2019
USD 981m
2018
USD 841m

+17%

Maintenance

2019
USD 358m
2018
USD 314m

+14%

EBIT margin

2019
32.4%
2018
31.5%

32.4%

Operating cash flow conversion

2019
USD 364m
2018
USD 365m

100%

Dividend per share

2019
CHF 0.85
2018
CHF 0.75

+13%

Earnings per share

2019
USD 3.47
2018
USD 2.95

+18%

  • Strong performance in 2019 with market growth driven by increased focus on digital banking and hyper-personalized, omni-channel experiences
  • SaaS and cloud adoption continues to accelerate, driving incremental demand for software
  • US position strengthened through strategic acquisition of Kony, the leading US digital SaaS player
  • Tier 1 and 2 bank activity remained strong, with sales to tier 1 and 2 banks contributing 43% of total software licensing in 2019
  • Temenos won a total of 93 new clients in 2019, maintaining its market leading position through the winning combination of the best technology and the best functionality
  • Total of 330 clients going live on our software in 2019.

Chairman’s statement

Another year
of growth
& success

In 2019, we had another outstanding year with
record growth in our revenues and profitability and
the successful development of our business and
strategic objectives.
Andreas Andreades
Executive Chairman

Chairman’s statement

Another year
of growth
& success

In 2019, we had another outstanding year with
record growth in our revenues and profitability and
the successful development of our business and
strategic objectives.
Andreas Andreades
Executive Chairman

Our strategy

Strategic initiatives
to drive growth

Enhance award
winning solutions

Cloud-based Microservices

Hypersonalization of front office with XAI

Continuous renovation of
tier 1 back office

Geographic market
development

Significant traction in the
US for Infinity and
Transact post integration
of Kony

Investing in Sales and
Marketing, Cloud and
SaaS, and Talent and
people

68% increase in SaaS
ACV* in 2019

An expanding Partner
ecosystem

6,500 consultants,
12,000 developer
community members

Using M&A to accelerate organic growth

* Definition of ACV to be found on the Sources page in the Appendix.

Business review

A SIGNIFICANT
YEAR OF
GROWTH

We delivered an excellent set of results in for the full
year 2019, and our investment in product, strategic
acquisitions and people has laid the foundation for a
strong 2020 and beyond.
Max Chuard
Chief Executive Officer

Business review

A SIGNIFICANT
YEAR OF
GROWTH

We delivered an excellent set of results in for the full
year 2019, and our investment in product, strategic
acquisitions and people has laid the foundation for a
strong 2020 and beyond.
Max Chuard
Chief Executive Officer

Our market opportunity

Growing our
global opportunity

Europe

22

Offices in the region

42%

Total revenue

39%

Total software licensing revenue

Middle East & Africa

8

Offices in the region

15%

Total revenue

13%

Total software licensing revenue

Asia Pacific

21

Offices in the region

20%

Total revenue

21%

Total software licensing revenue

The Americas

17

Offices in the region

23%

Total revenue

27%

Total software licensing revenue

Europe

22

Offices in the region

42%

Total revenue

39%

Total software licensing revenue

Middle East & Africa

8

Offices in the region

15%

Total revenue

13%

Total software licensing revenue

Asia Pacific

21

Offices in the region

20%

Total revenue

21%

Total software licensing revenue

The Americas

17

Offices in the region

23%

Total revenue

27%

Total software licensing revenue

Addressable bank IT spend
Consistent growth in our addressable market

2015

Total addressable market (5% CAGR)

usd 46bn

Spend on third party IT (8% CAGR)

usd 9bn

2020

Total addressable market (5% CAGR)

usd 60bn

Spend on third party IT (8% CAGR)

usd 14bn

2022

Total addressable market (forecast)

usd 67bn

Spend on third party IT (forecast)

usd 16bn

Source: IDC, Ovum, Celent, Temenos estimates.

Acquisitions

Strategic acquisitions
to accelerate organic growth

Our three pronged approach
to M&A to accelerate organic growth

01

Accelerated R&D roadmap
in key markets and segments

02

Increased scale

03

Adjacent markets and
complementary products

A strong track record
of strategic M&A

2019
3 acquisitions
Kony
Logical Glue
hTrunk
2018
1 acquisition
Avoka
2017
1 acquisition
Rubik
2015
2 acquisitions
Multifonds
Akcelerant

Financial review

AN EXCELLENT
YEAR
ACROSS
KPIs

We had an excellent set of results in 2019, with total software licensing
growth of 19% and total revenue growth of 17%. Our EBIT grew by 20%
and we delivered a full year EBIT margin of 32.4%, an increase of 87bps
year-on-year. We saw double-digit growth in Temenos Transact and even
stronger growth in Temenos Infinity. The integration of Kony and Avoka has
significantly strengthened the Temenos Infinity platform and this was
reflected in client demand.
Panagiotis “Takis” Spiliopoulos
Chief Financial Officer

Financial review

AN EXCELLENT
YEAR
ACROSS
KPIs

We had an excellent set of results in 2019, with total software licensing
growth of 19% and total revenue growth of 17%. Our EBIT grew by 20%
and we delivered a full year EBIT margin of 32.4%, an increase of 87bps
year-on-year. We saw double-digit growth in Temenos Transact and even
stronger growth in Temenos Infinity. The integration of Kony and Avoka has
significantly strengthened the Temenos Infinity platform and this was
reflected in client demand.
Panagiotis “Takis” Spiliopoulos
Chief Financial Officer

Our solutions

comprehensive, cloud native, cloud
agnostic, microservices architecture

PRODUCTS

Temenos organizes its products into five key areas reflecting the needs of its customers.

Discover our products
0/ 9
Temenos Infinity

A Digital Front Office product driving outstanding experience across customer acquisition, servicing and retention journeys, built on a foundation of Explainable AI and Open APIs.

1/ 9
Temenos Transact

The world’s best-selling, most technically advanced and functionally rich core banking product used by over 1,000 banks in all sectors and geographies, delivered using a Microservice architecture which enables progressive and agile transformation programs which deliver personalised and intelligent banking.

2/ 9
Temenos Payments

A universal end-to-end payments product built on cloud-native and cloud agnostic software with built-in support for ISO 20022 and with tools to enable new payment channels to be addressed easily and quickly.

3/ 9
Temenos Fund Administration

Investment Accounting and Investor Services software used by seven of the world’s top ten fund administrators, offering the widest range of underlying instrument support with market leading STP rates and operational efficiency.

4/ 9
Temenos SaaS

Delivering market leading, compliant and highly secure, functionally rich banking products to clients in all geographies and banking sectors, building on market expertise gained since 2011.

5/ 9
Analytics

Using Temenos Data Lake to unlock the power of banks’ data to power AI, insight and automation.

6/ 9
Financial Crime Mitigation

Real-time and flexible products using datadriven AI to deliver Anti Money Laundering, Fraud Detection and Sanctions Screening protection to banks and their customers.

7/ 9
Risk and Compliance

Enabling financial institutions to remain compliant whilst focusing on business growth and digital transformation.

8/ 9
Temenos Infinity

Packaged country specific functionality covering over 150 countries which enables banks to go live quicker and to focus on areas of competitive advantage.

9/ 9
TECHNOLOGY PLATFORM

Technology is strategy. We say this because our Technology products and frameworks make banks more agile, competitive and profitable, and help them thrive in complex, margin pressured environments.

View our technology platform
0/ 6
Cloud-native and cloud-agnostic

A cloud-native and cloud-agnostic approach for real-time, non-stop banking.

1/ 6
Microservices and containers

Efficient scalability built around a containerized deployment model.

2/ 6
Cloud-native and cloud-agnostic

Temenos’ Open APIs allow you to integrate quickly with a wide range of internal or external systems to help drive your product and service innovation.

3/ 6
AI & machine learning

The most advanced next-generation Explainable AI and Machine Learning banking products embedded in the cloud-native, cloud-agnostic Temenos Platform.

4/ 6
Distributed database

Engineered to use distributed relational database technology.

5/ 6
Continuous Deployment

Extend cloud capabilities to DevOps so banks can code in the morning and deploy in the afternoon.

6/ 6
SECTOR SOLUTIONS

Temenos offers software solutions to banks and financial institutions of all types and sizes.

Discover our sector solutions
0/ 6
Retail Banking

Temenos provides retail banks with agility and freedom to innovate front-to-back using the latest cloud and API technology.

1/ 6
Corporate Banking

Assemble cross-product line solutions for corporate customers linking directly to their financial systems and broader ecosystems using Open APIs.

2/ 6
Wealth Management

Empowering portfolio and relationship managers with the latest in wealth management and modern cloud technology.

3/ 6
Fund Administration

Providing unparalleled multi-asset class fund administration capabilities across all geographies.

4/ 6
Islamic Banking

A flexible and efficient award-winning solution enabling Shari’ah compliant innovation, scalability and digital engagement.

5/ 6
Inclusive Banking

Enabling Financial Inclusion to be rapidly extended using a packaged and integrated model bank that is developed specifically to increase access to relevant financial services.

6/ 6

Research and development

R&D

The highest R&D in the industry

% of revenue spent on R&D

USD 2.1bn

Cumulative R&D investment 1990-2019
Source: Company Annual Reports, Temenos estimates.
*Oracle FSS, TCS, FIS, Fiserv, Jack Henry, SS&C.
Open banking
Temenos marketplace
Temenos developer community

OPen banking

The pace of innovation is accelerating at the same time as competitive boundaries are blurring.

Traditionally banks have operated as vertically integrated enterprises. This means that they have both manufactured banking products, and also distributed them to their customers. Although this model remains valid for many banks and markets, changing technology and regulation is also encouraging the growth of institutions which specialized in providing one part of the overall banking value chain. Some of these are existing banks, but others are new banks, whether owned by existing banks or not, and some are technology companies whose services are beginning to overlap with some areas of banking.

A clear majority
of bankers (89%)
now see Open
Banking as more of
an opportunity
than a threat.

THE TEMENOS
MARKETPLACE

Bringing the power of fintech to banking.

The Temenos MarketPlace was launched in 2015, when we had already recognised the value that fintech could bring to banks. Our vision was clear – to help our customers to benefit from the collective innovative power of fintech – and that vision remains true today.

We are identifying the very best in fintech solutions to add to MarketPlace, those solutions which complement our software and bring real and proven value to banks. This curation of tried and tested fintech plays a key strategic role for our customers, enabling them to readily tap into an ecosystem of innovation, to identify those solutions that make sense for their businesses, and to be able to continue to innovate and differentiate within their markets. The pre-integration of MarketPlace solutions ensures that our customers can rapidly implement the solutions they select for a quick time-to-value.

TEMENOS
DEVELOPER
COMMUNITY

Driving innovation through the building and engaging
of banking’s largest collaborative Community.

In 2019, we launched our Developer Portal, which provides access to hundreds of APIs, enabling developers to discover first-hand the power our API-first architecture and to experience just how easy it is to integrate with our products and innovate around our software. The Developer Portal is a key part of engaging our growing Community of developers from across our industry, from banks to Partners, from educational establishments to fintechs and consultants. Through this open sharing of technology, alongside online forums and live events that bring the Community and Temenos experts together, we are helping developers everywhere to use our software to its full potential.

Encouraging innovation around Temenos software through the openness of our technology and the sharing of knowledge benefits our clients downstream, who are in turn able to take advantage of resulting fintech activity and solutions that are ready integrated with our products.

Open banking
Temenos marketplace
Temenos developer community

OPen banking

The pace of innovation is accelerating at the same time as competitive boundaries are blurring.

Traditionally banks have operated as vertically integrated enterprises. This means that they have both manufactured banking products, and also distributed them to their customers. Although this model remains valid for many banks and markets, changing technology and regulation is also encouraging the growth of institutions which specialized in providing one part of the overall banking value chain. Some of these are existing banks, but others are new banks, whether owned by existing banks or not, and some are technology companies whose services are beginning to overlap with some areas of banking.

A clear majority
of bankers (89%)
now see Open
Banking as more of
an opportunity
than a threat.

THE TEMENOS
MARKETPLACE

Bringing the power of fintech to banking.

The Temenos MarketPlace was launched in 2015, when we had already recognised the value that fintech could bring to banks. Our vision was clear – to help our customers to benefit from the collective innovative power of fintech – and that vision remains true today.

We are identifying the very best in fintech solutions to add to MarketPlace, those solutions which complement our software and bring real and proven value to banks. This curation of tried and tested fintech plays a key strategic role for our customers, enabling them to readily tap into an ecosystem of innovation, to identify those solutions that make sense for their businesses, and to be able to continue to innovate and differentiate within their markets. The pre-integration of MarketPlace solutions ensures that our customers can rapidly implement the solutions they select for a quick time-to-value.

TEMENOS
DEVELOPER
COMMUNITY

Driving innovation through the building and engaging
of banking’s largest collaborative Community.

In 2019, we launched our Developer Portal, which provides access to hundreds of APIs, enabling developers to discover first-hand the power our API-first architecture and to experience just how easy it is to integrate with our products and innovate around our software. The Developer Portal is a key part of engaging our growing Community of developers from across our industry, from banks to Partners, from educational establishments to fintechs and consultants. Through this open sharing of technology, alongside online forums and live events that bring the Community and Temenos experts together, we are helping developers everywhere to use our software to its full potential.

Encouraging innovation around Temenos software through the openness of our technology and the sharing of knowledge benefits our clients downstream, who are in turn able to take advantage of resulting fintech activity and solutions that are ready integrated with our products.

Delivering client success

A delivery ecosystem designed for success
THE FOCUS FOR TEMENOS SERVICES
TEMENOS LEARNING COMMUNITY

A Delivery ecosystem
designed for
success

The Temenos Delivery Ecosystem comprising Temenos Services and our Partner consultants continues to expand, providing the scalable capacity and capability to implement the full portfolio of Temenos Products across all markets and all geographies, and deliver excellence to our growing customer base.

I am delighted with the performance of our implementation business in 2019, across both our own consultants as well as those of our Partners. With over 6,500 trained consultants worldwide, we are very well positioned to help our clients go live, on time and on budget. We had 330 go lives globally in 2019, reflecting our commitment to client success and proving the excellence of our delivery ecosystem across the entire portfolio of Temenos solutions. We also see an increasing number of our clients leveraging our extensive cloud capabilities to reduce cost and accelerate the speed of their implementations. This is an extremely exciting business areas for us where we are seeing rapid growth.

Colin Jarrett
Chief Cloud and Delivery Officer

THE FOCUS FOR
TEMENOS SERVICES

As the Services division of a Product Company, our aim is to support the Delivery Ecosystem to continually improve and drive the transformation of the Temenos Implementation and post live services delivery.

Centers of Excellence (CoE) reflecting the Temenos five engines of growth, (Temenos Transact, Temenos Infinity, Payments, Funds and SaaS) have been created. A lead has been appointed for each CoE and they work with the Regional Consulting Managers to focus on building the skills and capabilities required to implement our solutions, both within Temenos and across our Partner network. They also work closely with the product teams during product launches to ensure that we, and our Partner network, are prepared as part of the go-tomarket process.

Every Temenos consultant is mapped to one of the Centers of Excellence and the Leads run regular communication events to provide updates and share best practice with its members.

TEMENOS LEARNING
COMMUNITY

In 2017 Temenos set out to restructure and modernize its training and learning model in answer to the increasing demand for Temenos experts, by making the process of knowledgetransfer easier, faster and more cost effective for our clients and Partners. The Temenos Learning Community (TLC) was created to answer those demands, and during 2019 we have driven continued growth, cementing TLC as the number one provider for all Temenos’ educational needs, creating experts at the heart of the Temenos Ecosystem.

Temenos Learning Community continues to engage with all of our expanding ecosystem to put the knowledge-sharing and learning of Temenos products and technologies at the heart of our clients’ and Partners’ learning strategies.

Delivering client success

A delivery ecosystem designed for success
THE FOCUS FOR TEMENOS SERVICES
TEMENOS LEARNING COMMUNITY

A Delivery ecosystem
designed for
success

The Temenos Delivery Ecosystem comprising Temenos Services and our Partner consultants continues to expand, providing the scalable capacity and capability to implement the full portfolio of Temenos Products across all markets and all geographies, and deliver excellence to our growing customer base.

I am delighted with the performance of our implementation business in 2019, across both our own consultants as well as those of our Partners. With over 6,500 trained consultants worldwide, we are very well positioned to help our clients go live, on time and on budget. We had 330 go lives globally in 2019, reflecting our commitment to client success and proving the excellence of our delivery ecosystem across the entire portfolio of Temenos solutions. We also see an increasing number of our clients leveraging our extensive cloud capabilities to reduce cost and accelerate the speed of their implementations. This is an extremely exciting business areas for us where we are seeing rapid growth.

Colin Jarrett
Chief Cloud and Delivery Officer

THE FOCUS FOR
TEMENOS SERVICES

As the Services division of a Product Company, our aim is to support the Delivery Ecosystem to continually improve and drive the transformation of the Temenos Implementation and post live services delivery.

Centers of Excellence (CoE) reflecting the Temenos five engines of growth, (Temenos Transact, Temenos Infinity, Payments, Funds and SaaS) have been created. A lead has been appointed for each CoE and they work with the Regional Consulting Managers to focus on building the skills and capabilities required to implement our solutions, both within Temenos and across our Partner network. They also work closely with the product teams during product launches to ensure that we, and our Partner network, are prepared as part of the go-tomarket process.

Every Temenos consultant is mapped to one of the Centers of Excellence and the Leads run regular communication events to provide updates and share best practice with its members.

TEMENOS LEARNING
COMMUNITY

In 2017 Temenos set out to restructure and modernize its training and learning model in answer to the increasing demand for Temenos experts, by making the process of knowledgetransfer easier, faster and more cost effective for our clients and Partners. The Temenos Learning Community (TLC) was created to answer those demands, and during 2019 we have driven continued growth, cementing TLC as the number one provider for all Temenos’ educational needs, creating experts at the heart of the Temenos Ecosystem.

Temenos Learning Community continues to engage with all of our expanding ecosystem to put the knowledge-sharing and learning of Temenos products and technologies at the heart of our clients’ and Partners’ learning strategies.

Operating responsibly

ACHIEVING EXCELLENCE
RESPONSIBLY

Temenos’ culture powers the company. We define it as ‘TEMENOSITY’ because this single word captures the spirit of who we are and how we make things happen: collaboratively, dynamically and boldly. These are the qualities that make up TEMENOSITY.

Tenacity

We are innovators who disrupt the status quo. We are driven and hate to lose, so we never give up. We put Temenos first to achieve great things.

Velocity

We operate with a long term strategic view and a day-to-day sense of urgency. We are ambitious, never stand still and are always thinking ahead. We are growth-minded, execution-focused and results-driven.

Responsibility

We act with integrity and keep our promises. We love, protect and invest in our software and technology. We relentlessly focus on value creation.

Authenticity

We are straight talkers, hate politics and do not let hierarchy define us. We work with freedom and are not afraid of taking risks. We champion diversity and see things differently.

Community

We care about and respect each other in good times and bad. We work collaboratively and inspire each other. We put our clients at the heart of everything we do.