Geneva, Switzerland, 11 July 2012 – Temenos Group AG (SIX: TEMN), the market-leading provider of missioncritical software to banks globally, today announces senior management changes as well as its preliminary estimates for Q2 2012 licence revenues and a revised full year outlook.

Senior management changes

Guy Dubois, group CEO since 1 July 2011, has decided to step down from his position as CEO for personal reasons. David Arnott, who has acted as group CFO for the last 11 years, will replace Guy Dubois as CEO. Max Chuard, previously Director of Corporate Finance and Investor Relations, will assume the role of CFO and join the company’s Executive Committee. Andreas Andreades, group Chairman and formerly group CEO, will take up the role of Executive Chairman. All appointments take effect immediately.

In addition, the company announces changes to the operating committees of the Board of Directors. Thibault de Tersant, recently appointed non-executive Director, becomes Chairman of the Audit Committee. Chris Pavlou, nonexecutive Director, becomes Vice-Chairman and Chairman of the Nomination Committee. Lastly, Sergio Giacoletto-Roggio, recently appointed non-executive Director, becomes Chairman of the Compensation Committee.

Preliminary licence revenue estimates

The company gives its preliminary estimates for licence revenues for the quarter. The company expects licence revenues of approximately USD24m, representing a contraction of 37% compared to the same quarter last year after excluding the effect of currency movements. In light of six months of trading and the prevailing market conditions, the company now moves to tighten its revenue outlook range for the year, while keeping the outlook for adjusted EBIT margins unchanged. In 2012, the company now expects constant currency revenue growth of between -5% and +1% (compared to -5% and +6% previously) and an adjusted EBIT margin of between 19% and 22% (unchanged). The company is confident to deliver within these ranges, which are consistent with the first half licence revenues, owing to its ability to manage costs and to the momentum being seen in areas such as installed base sales.

Andreas Andreades, Executive Chairman, comments:

“We respect Guy’s decision to step down as CEO and we thank him for his contribution to the company. David Arnott is a very talented and capable replacement to meet the current challenges and lead the implementation of our stated strategic priorities. As well as being CFO for 11 years, David also ran the services business for a year.He has a profound understanding of the company and its market which, when combined with his many personal qualities, make him an ideal CEO. Max Chuard is a natural successor as CFO given his wealth of M&A, debt and capital markets knowledge and extensive operating experience. I look forward to working closely with David, Max and the rest of the senior team to ensure Temenos’ continued success.”

David Arnott, CEO, adds:

“The core banking software market continues to be one of the most exciting and attractive global software markets. The banking industry urgently needs to update its technology infrastructure in order to meet the challenges of a rapidly-changing regulatory, customer and competitive environment. As the market leader in mission-critical banking applications, Temenos is best-placed to lead this technological transformation and my goal will be to extend the company’s lead through innovation and delivering unparalleled customer success. Nonetheless, as the Q2 licence revenues illustrate, the company is still facing difficult near-term market conditions and my first priority will be to deliver our 2012 financial commitments.”

Conference call

The company plans to hold a call this afternoon at 18.30CET to discuss these developments. Conference call
details are as follows:
+44 (0) 1452 555 566 (UK Standard International Call)
0800 694 0257 (UK Free Call)
+41 (0) 565 800 007 (Switzerland Local Call)
0800 828 006 (Switzerland Free Call)
1 866 966 9439 (US Free Call)
Conference ID # 99819097

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About Temenos

Founded in 1993 and listed on the Swiss Stock Exchange (SIX: TEMN), Temenos Group AG is the market leading provider of banking software systems to retail, corporate, universal, private, Islamic, microfinance and community banks, wealth managers, and financial institutions. Headquartered in Geneva with more than 60 offices worldwide, Temenos is proven in over 1,500 customer deployments in more than 125 countries across the world. Temenos’ software products provide advanced technology and rich functionality, incorporating best practice processes that leverage Temenos’ expertise around the globe. Temenos customers are proven to be more profitable than their peers: over the last 3 years Temenos customers have enjoyed on average a 30% higher return on assets, a 46% higher return on capital and a cost/income ratio that is 8.5 points lower than banks running legacy applications.

For more information please visit www.temenos.com

Press and Investor contacts:

Chris McGinnis
Associate Director, Strategy and IR
Tel: +44 207 423 3774
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Wendy Baker/ Andrew Hayes
Hudson Sandler for Temenos
Tel: +44 207 796 4133
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