Temenos response to recent research report

Press Releases, February 15, 2024

Temenos – Company

Ad hoc announcement pursuant to Art. 53 LR

The Board of Directors of Temenos AG (the Company) fundamentally refutes the report published today by Hindenburg Research.

The report contains factual inaccuracies and analytical errors, together with false and misleading allegations, which are intended to adversely impact the Company’s share price. The Company was not contacted in advance for any comment on the report.

The Company is confident in the strength of its business, financial performance and cash position.

On 19 February 2024 after market-close the Company will issue its audited results for the year ended 31 December 2023 and confirms that they are in line with the pre-results announcement made on 19 January 2024. This highlighted the Company’s strong Q4 and FY23 performance:

• Annual Recurring Revenue exceeding guidance and Total Software Licensing and EBIT significantly exceeding minimum guidance
  
• Strong free cash flow growth ahead of guidance in FY23, up 26% to $242.6m – the Board expects free cash flow to continue to grow strongly in the coming years
  
• c. 3,000 customers – industry-leading churn of only c3% p.a. on a dollar basis
  
• The Company’s transition to a recurring revenue business model continues at pace – 391 go-lives on our software in 2023
  
• Significant progress on customer engagement, NPS score of +54 based on survey of over 900 customers

As previously announced, the management of Temenos will hold a Capital Markets Day for investors on 20 February 2024.