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TECHNOLOGY PRESENTATION

• TEMENOS eMerge Presentation
• GAPI
• Mozambique
• July 6th 2007
• Antonio Souto (Gapi)
• Marina Denisova (Temenos)
• Jim Hughes (Temenos)

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Stable supplier with 12 years of growth Temenos
roadmap to success
GLOBUS
eMerge entry into MF Acquired TCB
T24 T24 eMerge TCB
TEMENOS Founded
Listed on SWX
1993
2001
2007
MAJOR TRANSFORMATION
2 Offices 34 Employees 19 Clients 0.25 million
revenues
40 Offices Over 1,900 Employees 580 Clients 300
million revenues(1)
(1) Analyst consensus
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THE KEYS TO SUCCESS
PRODUCTS SERVICES
CLIENTS
IN THE MARKET PLACE
APPENDIX
CORPORATE OVERVIEW
TEMENOS World Presence
TEMENOS operates from 39 offices in 31 countries
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TEMENOS Professional Services
Professional services
Industry Experts
Time to Market
Knowledge Transfer
Autonomy of our Clients
520 service specialists
3.5 years average product experience
48 nationalities
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• TEMENOS has a strong commitment to invest in RD
• 200-300 enhancements added every year, available
  as part of the standard release to all clients
• RD as a percentage of Revenue (2005)

Source Latest annual report for each company
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TEMENOS eMerge Key Business Drivers

• consistent with the social ethos of founders and
  corporate culture
• incubator for long term business relationships
• ability to grow with the client
• self-sustaining and profitable business with long
  term potential
• access to new markets that otherwise would not be
  accessible
• market segmentation through branding allows for
  differential pricing
• increases number of installed customers, larger
  global footprint

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Example of Micro Finance Clients

• Sinapi Api Trust, Ghana
• CETZAM, Zambia
• PSHM, Albania
• ARB Apex Bank, Ghana
• Bank MN, Montenegro
• STEDONICA, Yugoslav
• OMRO, Romania
• OIBM, Malawi
• Mexico Rura Bank ASP
• FUNED, Honduras
• EKI., Bosnia
• SEF, Armenia
• KREP Bank Kenya
• AzerCredit, Azerbaijan
• AgroInvest, Yugoslavia
• Promicro, Brazil
• APED Ghana
• VFC Rwanda

• GEF, Georgia
• GAPI, Mozambique
• BURETI SACCO, Kenya
• BPR Parisbhat, Indonesia
• Kenya Bankers, Kenya
• Fonkoze, Haiti
• Fondo Esperanza, Chile
• Corfinsa , Ecuador
• Opportunity International (worldwide)
• Kadet, Nairobi
• Compartamos, Mexico
• BAWAG, Malta
• KWFT, Kenya
• SMFB Swaziland
• CCP Banco de Mocambique
• Bosco, Botswana
• SEDA Tanzania
• Acleda, Cambodia

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Market expectations

• MFIs now offer banking services deposit and
  investments trade finance corporate services
  foreign exchange
• MFIs use (ATM/POS) networks, mobile banking and
  other channels
• A fully-fledged core banking system was once
  considered overkill in this market now essential
• Fast time to market eMerge implementations are
  typically 4 to 5 months has been done in as
  little as 6 to 8 weeks
• With an existing ASP solution just SIGN and
  JOIN (minimal implementation time)
• Creative charging to avoid unnecessary start off
  expenses

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Specific development foreMerge on T24

• eMerge on T24 is a set of compiled local programs
  and routines that provide very rich and specific
  functionality

Specific MFI local tables, language, parameters
and logos
Local Parameters
eMerge on T24 is pre-configured layer of
functionality based on best practice. Additional
local code can be developed.
Configured (eMerge on T24)
Old T24 Core Application Layer
New T24 Core and Modules
T24 Core Application Layer
T24 core common to all Temenos customers worldwide
Data Base Engine
Operating System
UNIX, Windows, Linux
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Specific development foreMerge on T24
T24 Core plus seventeen T24 modules are enabled
and pre-configured in standard eMerge Additional
T24 modules available as required
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eMerge Foundations

• TEMENOS has been a close and proactive
  participant in the changing microfinance industry
  over the last ten years
• Original build based on 100 microfinance sites
• Specification done with industry experts and key
  institutions
• TEMENOS participation in World Bank and other
  international forums
• Accredited by CGAP and recognised as leading
  product
• Partnership in product development with leading
  microfinance development institutions
• 60 microfinance customers and over 100 sites in
  50 countries
• Ten years in the market learning and growing with
  the industry

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Opportunity

• New key features
• multi-company / multi-book capability
• browser capability
• account based lending that permits borrowers to
  prepay loans with rapid rescheduling
• Secure data within each MFI

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Opportunity

• Smaller MFIs in Mozambique may lack capacity and
  financial resources to manage application and
  environment.
• Leveraging off GAPI and eMerge can provide an
  opportunity to extend services to smaller
  organizations in district environments
• Access to Centralised infrastructure can make
  available proprietary or shared Channel
  facilities. (e.g. ATM/POS, Mobile and Home
  Banking)
• MFIs can share the same physical infrastructure
  but maintain separate and secure data.
• Central infrastructure resilience and non-stop
  processing
• Local resources can be trained to assume control
  of technology and support as business grows.

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Deployment
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Remote Application Support
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Required at MFI / District level

• Hardware
• PC or PC Server and LAN
• Internet, modem or wireless connection
• People
• Super user to provide local help and application
  support
• Support
• Grow local support capability

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Summary

• It is the same T24 core software implemented by
  TEMENOS for over 580 clients in 110 countries
  around the world
• eMerge is T24 configured for the realities of the
  community banking and tier 4 5 retail space in
  the real world of emerging markets
• MFIs each manage a unique configuration under a
  multi-book configuration
• Licensing services could be provided on a
  transaction or other incremental pricing basis
• Common infrastructure could be configured in such
  a way as to enable a customer of one institution
  to transact business at any branch or payment
  point of the other, with the account revenues and
  fees apportioned to the institution providing the
  services.

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Summary

• A centre of excellence could be established to
  provide training and implementation services to
  facilitate support to local institutions that
  select eMerge for their business.
• MFIs operating in remote areas will have easier
  access to the management tools provided through
  eMerge, without investing up-front on a complete
  new system.
• Time to market is a key advantage with a rapid
  implementation methodology

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Award

• Temenos wins The Banker award for eMerge on T24
• Geneva, Switzerland 1 June 2007 - Temenos
  Group (SWX TEMN), the provider of integrated
  core banking systems, today announced that it had
  won The Bankers marketing technology of the year
  award for Temenos eMerge (eMerge), its
  pre-configured bank in a box , specifically
  designed for microfinance and emerging markets.
  Based on TEMENOS T24 (T24), the companies modular
  core banking system, eMerge on T24 delivers the
  same core software implemented in over 500 banks
  across 110 countries utilising best industry
  practice from tier 1 banks around the world.
• Murray Gardiner, general manager, eMerge,
  Temenos, says Micro-banks sit in large markets
  with huge growth potential, however they lack the
  technology to scale and offer banking services at
  an affordable price. By their very nature they
  have to be able to offer community lending at the
  lowest cost, so adopting effective technology
  that achieves a lower cost of ownership is a
  pre-requisite for doing business.
• The Banker, the Financial Times Groups global
  banking publication, launched its technology
  awards in 2003 and they are now acknowledged as
  the most prestigious in the industry. The awards
  recognise new concepts and ideas that allow
  financial institutions to break ahead of the
  competition. Specific criteria include ability to
  scale, effective teamwork and communication,
  research and development, return on investment
  and inventiveness.
• Stephen Timewell, editor-in-chief, The Banker,
  comments eMerge was the clear winner of The
  Bankers Marketing Technology Award. It is a
  solution that meets the specific requirements of
  both emerging markets and micro-financing. The
  judging panel were impressed by, not only the
  technology, but how truly cost effective it was
  in terms of implementation as well as the level
  of service offered by Temenos.

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Thank You
Thank You