Temenos : Reconfirms Its Sustainable Long Term Growth Targets and Updates Its Medium Term Targets

Temenos AG (SIX: TEMN), the banking software company, today reconfirms its sustainable long term growth targets and updates its medium term targets, which will be discussed in detail at its Capital Markets Day taking place today in London.

The targets are as follows:

Sustainable Long Term Targets

Non-IFRS total software licensing growth of at least 15% CAGR

Non-IFRS total revenue growth of at least 10-15% CAGR

Non-IFR EPS growth of at least 15% CAGR

Tax rate of c.20%

Cash conversion of 100%+ of EBITDA p.a.

Medium Term Targets

DSOs to reach 90 days

Non-IFRS EBIT margin target of 36%+

Tax rate of 18-20%

Commenting on the targets, Temenos CEO Max Chuard said:

'I am pleased to reconfirm our sustainable growth targets, which we are confident in delivering over the long term given the sustained growth we have delivered over the past five years. We continue to benefit from a large addressable market of USD 60bn, and we are a leader in this market. We made excellent progress in 2019 across our product innovation roadmap, expanding our global ecosystem in particular with our global technology partners, and strategic M&A to accelerate our organic growth and our R&D. We see exceptional demand for SaaS, and we have a strong pipeline for both Temenos Transact and Temenos Infinity. We are confident we can continue growing at these levels for the next 10 to 15 years.'

Dividend

Taking into account the strength of profit growth and cash generation, as well as the expected strength of future cash flows, subject to shareholder approval at the AGM on 20 May 2020, Temenos intends to pay a dividend of CHF 0.85 per share for 2019. The timing for the dividend payment will be as follows:

20 May AGM approval

22 May Shares trade ex-dividend

25 May Record date

26 May Payment date

Temenos' policy is to distribute a growing dividend.

Investor & Media Contacts

Adam Snyder

Temenos Head of Investor Relations

[phone]

[e-mail]

Haya Herbert-Burns

Teneo for Temenos

[phone]

[e-mail]

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