1

Athens 28 June 2006

George KoukisChairmanTEMENOS

GLOBAL FINANCE

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Brief Introduction to TEMENOS

Worldwide Trends

Experiences with VC’s and Investors

Global Finance

Topics

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Brief Introduction to TEMENOS

TEMENOS

4

19845 Citibankers decided to build « the best banking system in the world »

1988Deployed First version of GLOBUS

1991Sold the Company to COS AG

1993 November 16Sold Company to CTW; 1st VC; Renamed TEMENOS

Genesis

5

•Listed on SWX in 2001•Acquired TCB for Retail Banking in 2001•Launched T24 in 2004

•Listed on SWX in 2001•Acquired TCB for Retail Banking in 2001•Launched T24 in 2004

TEMENOS founded

TEMENOS founded

1993 Key Statistics• 2 Offices• 34 Employees• 19 Banks• USD 0.25m revenues

1993 Key Statistics• 2 Offices• 34 Employees• 19 Banks• USD 0.25m revenues

19931993

A vision transformed into the leading provider of banking software systems…

2006 June Key Statistics• 39 Offices• 1500+ Employees• 520+ Banks in 112 countries• USD 210m Revenues

2006 June Key Statistics• 39 Offices• 1500+ Employees• 520+ Banks in 112 countries• USD 210m Revenues

20062006

Investment in R&D: 3’000 man years (+300 million USD)Investment in R&D: 3’000 man years (+300 million USD)

History and development

6

www.celent.com

Leading Providers of Core Banking System by Number of Live Clients

Source : Celent Communications 2006

6

10

31

45

55

68

91

92

136

245

272

348

411

421

505

520

3620

0 100 200 300 400 500 600 700 800 900 1000

Financial Objects

Polaris

Kordoba

System Access

Infosys

CSC

Alnova

SAP

ERI

Open Solutions

iFlex

Jack Henry

Misys

Fidelity Information Services / Sanchez

Temenos

Metavante

Fiserv

# of clients

7

Number of Clients

2147

7186

114

154176

212

272

365382

437

505

0

100

200

300

400

500

600

68 New Client Additions in 2005HSBCLehman BrothersSumitomo TrustCompanie Monégasque de BanqueFinanciera CompartamosRoyal Bank of Trinidad and TobagoCaja Libertad Zenith BankThe Bank of East AsiaArab Turkish BankMilitary Commercial Joint Stock BankSouth East Asia BankPlus a number of other deals that cannot be disclosed by name.

Client Growth & Credibility with Top Tier Banks

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• TEMENOS operates from 39 offices in 31 countries

Seoul

Quito

Tokyo

Kuala Lumpur

New York(1)

Hong Kong

LONDON

DublinLuxembourg

CHENNAI

Miami

Amsterdam

GENEVA(1)

Bangkok

Paris

Dubai

Warsaw

Moscow

Zurich

Mexico City

Johannesburg

Seoul

Manila

Beirut

AthensMADRID

Copenhagen

Singapore

Jakarta

Beijing

R&D CENTRES(1) 2 Offices

HEMEL HEMPSTEAD

Mumbai

Shanghai

Taipei

OrlandoTehran

Ho Chi Minh City

Riyadh

Global Reach

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• Initial Licence Fees; we leverage a largely fixed cost infrastructure through licensing our products• Recurring Maintenance; we charge minimum 5 years committed maintenance at a standard rate of 21

per cent. of ILF. This gives access to yearly updates to the latest versions and 24/7 helpdesk support• Consultancy Services; we support our client to implement our products. We target consultancy

services to be between 30% and 35% of total revenues

Database

Client specific developments

Parameters and utilitiesProfessionalServices

Initial licence fee

Maintenance

Our initial commitment

Our recurring commitment

T24TCB

eMerge

Regional Platform

Business Model

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• Initial Licence Fees; we leverage a largely fixed cost infrastructure through licensing our products• Recurring Maintenance; we charge minimum 5 years committed maintenance at a standard rate of 21

per cent. of ILF. This gives access to yearly updates to the latest versions and 24/7 helpdesk support• Consultancy Services; we support our client to implement our products. We target consultancy

services to be between 30% and 35% of total revenues

Database

Client specific developments

Parameters and utilitiesProfessionalServices

Initial licence fee

Maintenance

Our initial commitment

Our recurring commitment

T24TCB

eMerge

Regional Platform

New Version

Regional Platform

Business Model

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Business agility through fast time to market

• 22,000 product design parameters

• End user, not IT

• Product innovations from over 100 countries incorporated in each annual release of the system

• Immediate deployment of new products subject to security and authority

• 8,000 users• 391 branches• 12.5 million accounts√ Released 163 new products 3 months

after going live√ Slashed time-to-market for new

services from 90 days to 3

Faster deployment of new products, services and processes enables the modern financial institution to react to and keep ahead of today’s competitive market

“ Temenos offers the best of both worlds: functional richness combined

with the flexibility of its data modeland component-based architecture.”

Sir Jai-Hoa, General Manager

Enable Growth

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Corporate&Wholesale

BankingGeneral Support

Treasury&

CapitalMarkets

Brokerage,Wealth Mgt.,

Private BankingRetail

CustomerRelationshipManagement

Security Management System

Version Presentation Enquiry

WebWeb Call CentreCall Centre BranchBranchMobileMobile IVRIVR

Process Workflow

Service bus

Other systemsOther systems

OLTP Data Store OLAP Data Store (Data Warehouse)

Com

pone

nts

Com

pone

nts

BPEL enginesBPEL engines

Browser

Open Financial Service (OFS) – Web Services - SOA

Broad Functional Coverage

Temenos are the only supplier to cover a full range of banking and investment support in a single, integrated system

“We needed a banking system that would enable us to control the distribution and flow of data within our bank. With T24 we have all our data centralised which eliminates manual intervention and actively assists compliance. This means a decrease in operational costs and increased efficiency.”

Tomas Arrieta Alberdi,Foreign Branches Area Manager , Banco Sabadell

Enable Growth

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Broad Geographic Coverage

• Temenos support systems running in 110 countries with 39 offices

• Temenos team of 48 nationalities speaking 64 languages

• 18 clients operate Temenos systems in multiple countries

• T24 is the only system that can support 24/7 global operations in a single, real-time instance

• 450 users

• Largest independent private bank in Switzerland

√ Upgraded from 1 country to 10

√ Single, efficient IT hub

√ 12 years of system upgrades

A supplier who understands global banking can help its clients expand and can bring them experience from around the world

“Because we have had a reliable infrastructure that provides advanced functionality since our inception, we have devoted few resources to fixing problems and have been able to focus on serving our customers and growing our business.

Ian Cookson, Head of Technology, EFG Bank Group

Enable Growth

Seoul

Quito

Tokyo

Kuala Lumpur

New York(1)

Hong Kong

LONDON

DublinLuxembourg

CHENNAI

Miami

Amsterdam

GENEVA(1)

Bangkok

Paris

Dubai

Warsaw

Moscow

Zurich

Mexico City

Johannesburg

Seoul

Manila

Beirut

AthensMADRID

Copenhagen

Singapore

Jakarta

Beijing

R&D CENTRES(1) 2 Offices

HEMEL HEMPSTEAD

Mumbai

Shanghai

Taipei

OrlandoTehran

Ho Chi Minh City

Riyadh

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Cross Selling

• On-line cross selling propensity engine

• Integrated campaign management• Product innovations from over 100

countries incorporated in each annual release of the system

• Immediate deployment of new products subject to security and authority

• 4th largest retail bank in Spain• 3,800 branches• 6.5 million customers√ Products per customer increased from

1.1 to 3.2√ Deposits increase 75%

It is four times more expensive to sell a product to a new client than an existing one.

“We are committed to keeping our members institutions at the leading edge of banking systems technology.”

Carlos Moradell, CEO, RSI

Enable Growth

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Reduced infrastructure through single, integrated system

• 800 users

• Retail, Corporate, Treasury and Islamic Banking

√ Rationalised applications from 107 to 7

Temenos systems offer a broad functional coverage that can replace a wide range of legacy systems in a single, low cost and integrated environment

“With such a complex network of systems, we knew that we needed a single 24/7 core application to support our retail,corporate treasury and Islamic banking needs. By implementing T24, we can now offer products that comply with Islamic law and have already exceeded our target for carrying out securities trading four-fold.”

CEO, Saudi Hollandi Bank

Balance Cost

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Proven implementation methodology

An methodology built upon over 400 successful projects minimises implementation risk and ensures projects that deliver their value as early as possible

“I am very proud of the level of professionalism Temenos has shown during the implementation. Armed with a solid implementation methodology and supported by a team of skilled and enthusiastic consultants, Temenos was able to fulfil its commitments towards Finance House and implement T24 on time and on budget, which is not a very common practice in the market.

Mohammad Wassim Khayata, SVP strategic planning and Development,Finance House

Programme/Project Management

System Integration

Ris

k C

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tro

l

Ch

an

ge M

an

ag

eme

nt

GAP Definition

Core GAP Dev’

Analysis & Build

UAT

Local Dev(*1)

Local Dev

Business Process Re-Engineering

Data Migration

Roll Out

Programme/Project Management

System Integration

Ris

k C

on

tro

l

Ch

an

ge M

an

ag

eme

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Programme/Project Management

System Integration

Ris

k C

on

tro

l

Ch

an

ge M

an

ag

eme

nt

GAP Definition

Core GAP Dev’

Analysis & Build

UAT

Local Dev(*1)

Local Dev

Business Process Re-Engineering

Data Migration

Roll Out

GAP Definition

Core GAP Dev’Core GAP Dev’

Analysis & Build

UATUAT

Local Dev(*1)Local Dev(*1)

Local DevLocal Dev

Business Process Re-EngineeringBusiness Process Re-Engineering

Data MigrationData Migration

Roll OutRoll Out

Control Risk

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Stable supplier

• N°5 in Switzerland►Corporate Governance Quotient: 84.7 – Institutional Shareholder Services 2004

• TRANSPARENCY(1)►95% - 100% compliant with SWX Directive on Corporate Governance

• BEST PRACTICE(1)► Top 15 – compliance with ethos. Corporate Rating 2004

(1) Study published by the ethos.Foundation on the 100 largest Swiss companies (www.ethosfund.ch; November 2004)

Novartis 99.1

Credit Suisse Group 96.0

Geberit 94.1

Ciba Specialty Chemicals 90.2

TEMENOS Group 84.7

Board of Directors2 Executives and 4 Non Executives

Strong Independent Board with Banking and Software experience

Executive BoardExperienced and Dynamic Team,

Responsible for Strategyimplementation and day to day management

Executive Regional Management4 Regions Focusing on Operations and

Client Relationships

Temenos is one of the most professionally managed companies in Switzerland.

Control Risk

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Source: IBS Market Report; Roland Berger

Major players by segment

Universal

TEMENOS

I-Flex

Misys

T24

TCB

Flexcube

Equation, Midas, Bankmaster

Vendor Products Retail Private Wholesale

Infosys

Fidelity

Finacle

CorebankingSAP

Corebank, Systematics

Competition

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Suppl i er Produc t

New name cus tomers

s igned in 2005 Customers L ive s i tes

i-flex Solutions Flexcube 38 170 200+

TEMENOS T24/TCB 34 478 645

Misys Summit 17 110 200+

R-Style RS-Bank 16 370 370

Calypso Tech. Calypso 15 27 16

Infosys Finacle 13 88 72

Misys Equation/Midas 9 646+ 924+

Fidelity Corebank/Profile/Systematics

5 176 190

SAP BCA, AM 4 35 28

Fiserv ICBS 3 110 130

• For the last eight years, TEMENOS has been ranked either #1 or #2 in terms of new client wins per year by IBS

• TEMENOS market share for new licenses in its target markets was approximately 30% per cent (2004: 23%)

IBS League Table

(1) Number of known winsSource: International Banking Systems, 2005; TEMENOS

Position in the Market

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• In the last 4 quarters, we have been steadily improving our win ratios from an already high 80% and winning consistently against competition including iflex, Misys, Fidelity and SAP

• TEMENOS has the richest product and broader distribution, as well as domain expertise to compete effectively against any combination of players

• Success demonstrated by 2005 IBS Report which ranked Temenos No1 in terms of new licenses by dollar value and No2 for number of new deals

• TEMENOS market share for new licenses in our target markets was approximately 30% in 2005 (2004: 23%)

Competition and Market Share

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Worldwide Market Trends

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• External IT spending now consumes 57% of total IT expenditure (1999:53%)

• Global External spending growing at CAGR 7.9% versus CAGR 4.5% for Global IT spending

• Budget shift towards further external IT spending driven by replacement of legacy systems

• Systems replacement or transformation necessary, as they hamper delivery of competitive value to customers as well as compliance with multiple regulatory mandates

Market Trends – External IT Spending

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MARKET TRENDS- IT SPENDING MIX

Market Trends – IT Spending Mix

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“When do you think your company will start a major renewal initiative regarding your core applications (e.g. banking platforms)?”(1)

“Do you think your company needs a major application renewal?”(2)

(1) Base: 33 European financial services firms that are not currently executing a major renewal initiative regarding core applications (percentages may not total 100 because of rounding)

(2) Base: 62 European financial services firmsSource: Forrester Research 2005

21%26%

21%

32%

0

10

20

30

40

2005 2006-2007 2008-2010 Don't Know

Banks

Yes60%

Don't Know6%

No34%

Market Trends – Application Renewal

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• Industry analysts are assessing our market to be growing at around 6% to 8%

• TEMENOS is increasingly confident it can continue to outpace the market. We grew like for like license revenues by 38% for the last 12 months.

• Analysts expect that 68% of European Financial Services firms will start a major renewal initiative of their core applications by 2010 (source: Forester Research), faster growth is expected in APAC and emerging markets. We expect that this pace of change will result in faster market growth than we have seen in the past few years.

• TEMENOS is in an excellent position to take advantage of this faster growing market, with excellent product, domain expertise and distribution.

• As we are revising our three year revenue plans consistent with the above we will also be investing for further growth in key strategic product initiatives and sales coverage.

• We will be announcing a number of key strategic product initiatives in our Temenos Client Forum on June 13th, 2006 that are intended to significantly broaden our addressable market in our core space.

Market Growth & TEMENOS Forecast

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• Organic growth model on track, EPS growth + 46% (2005/2004)

• Majority of banks are expected to replace their Core Banking systems in the next 5 years. Vendor growth over the next 3-5 years will determine long term leadership in our market. TEMENOS intends to take advantage of the opportunity to complement an accelerating organic growth model with acquisitions in order to achieve this leadership.

• TEMENOS has a significant pipeline of potential acquisitions in its core business areas:

– Enhance product– Acquire client base– Strengthen delivery capability and distribution

• Management continues to maintain a disciplined approach in conducting acquisitions and will remain focused on delivering shareholder value.

• Acquisitions will be funded either through cash or equity. Company raised CHF 132.5 million or equivalent of approx. USD 100 million in March through a convertible bond offering.

Acquisitions

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Conflicts in Building a Business

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VALUE PROPOSITION - Institutions

– Fast product and service time to market– Cross selling through single customer view– Ensure customer retention through improved service– Clear management information directing resources to maximize profit– Multiple and modern distribution channels– Enabler for cost-effective compliance– Broad and modular functional coverage enabling rapid expansion

TEMENOS enables growth

– Efficient straight-through-processing– Open systems allow cost-effective platform choices– Local flexibility ensures low cost modifications– Predictable and modular license model– Reduced infrastructure through single, integrated system

TEMENOS controls cost

– Proven implementation and migration methodology with 600 sites worldwide– Continuous product development policy– Ten years of financial growth and an experienced and stable management team– Open technology standards and state-of-the art-architecture negate

obsolescence

TEMENOS protects investment, controls risk

29

VALUE PROPOSITION - Customers

– Accurate and timely cross-selling– Appropriate charging structures

Personalized service

– Multiple delivery channels– Single, real-time customer view– Multiple frequencies– Appropriate formats and details

Accurate and timely information

– Exciting, high quality products offered in a timely manner– Breadth of product and service

Competitive products

– Competitive cost structures enabled through more efficient processing

Benefit from lower cost

30

Balancing Act

ClientsClients

InvestorsInvestorsMarketsMarketsAnalystsAnalystsCompetitorsCompetitors

Economy/PoliticsEconomy/PoliticsRegulatorsRegulators

FunctionalityTechnology Local SupportExpert StaffLowest Cost per transaction

Highest ReturnEfficient Allocation of ResourcesSustainable Growth

New Products Recession, Wars Basel II, and III….IX

31

Conflicts – Short and Long Term

InvestmentInvestment

ProfitProfit

InvestorsInvestorsMarketsMarketsAnalystsAnalysts

ClientsClientsCompetitorsCompetitors

EconomyEconomyRegulatorsRegulators

DreamsDreams

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Experiences with VC’s and Investors

33

Life is like a Marriage - Before

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Life is like a Marriage - After

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Life is like a Marriage - Divorce

36

1988IAVM, FSSL, GENSEC, COMMERCIAL CAPITAL

June 2000Global Finance

VC’s and Investors in TEMENOS

37

Beginning

I Have A Dream………G. Koukis I Have A Dream………G. Koukis (19(198888))

38

Beginning - COS AG in Zurichwas looking for a buyer for GLOBUS

39

The Business Plan

The CTW Business Plan

Easy to ReadComprehensible

40

Beginning – Need for Capital

41

I want to be in controlI want to….

Conquer The World

The Experts endorsed the plan….

42

Was thatConquer The World

orConjure The World ?

Let me read to youmy business plan…“In the beginning….

I hate competitors……..I’ve bin working hard, yetHe’s bin landing clients!!

The Experts endorsed the plan….

43

Hands up those that think I ’m crazy…..

44

Competition

We Know how to smoke them We Know how to smoke them outout

45

We will Build a Team

WinnersWinners

46

I.P.O.

47

Make Money

48

We are willing to learn but not copy others

49

We tried our own ways

50

Painful Lessons

51

June 2000 – Global Finance

VC’s and Investors in TEMENOS

52

BordeauxBordeaux

We wanted to be the best

Rolls Rolls RoyceRoyce

MozartMozart Patek Patek PhillippePhillippe

53

To be Different

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To be One of the Few

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Source: Celent Communications, 2005; TEMENOS

Sustainable Growth

As demand grows, the

competitive landscape will

become extremely fierce

with a few strong vendors

leading the way…

Celent research,

2006 figures

Octavio Marenzi CEO

Temenos are one of top few suppliers of international banking and financial service systems. We believe this market will further consolidate with only a few competitive suppliers remaining.Control Risk

6

10

31

45

55

68

91

92

136

245

272

348

411

421

505

520

3620

0 100 200 300 400 500 600 700 800 900 1000

Financial Objects

Polaris

Kordoba

System Access

Infosys

CSC

Alnova

SAP

ERI

Open Solutions

iFlex

Jack Henry

Misys

Fidelity Information Services / Sanchez

Temenos

Metavante

Fiserv

# of clients

56

Global Finance

57

Athens 28 June 2006

George KoukisChairmanTEMENOS

GLOBAL FINANCE