Temenos – Update

Company

Ticker

Country

Upside Potential

Sharpe (FY01)

Temenos

TEMN

CH

> 40 %

4.20

Information Technology

(growth)

Investment case:

Temenos is a core banking software supplier. Together with Oracle and Infosys, it is one of the key software providers to the banking and asset management industry. The company has about 800 customers around the globe. Its business model incorporates an unprecedented partner-led service model, including development and scalability opportunities. This along with its leading position in core banking applications, creates an attractive long-term growth opportunity. The company realizes internal growth opportunities as and when required through specific acquisitions.

Temenos is one of the key beneficiaries of the industry-wide trend of replacing and updating legacy IT systems. This is critically important as banks and other financial institutions have to comply with ever higher and more complex regulatory requirements. Additionally, the institutions they service have more and more multifaceted product offerings, making in-house solutions highly expensive to develop and run.

Finally, TEMN is one of the few players that offers a valuable and comprehensive opportunity in the field of digitization and the coordination of information between fixed online applications and mobile applications.