TEMENOS AG ANNUAL

Operating and Financial Review

Business review I am extremely proud of the way in which Temenos and all Temenosians responded – with commitment, dedication and empathy – supporting each other, our clients and partners through these unprecedented times. Introduction Looking back on 2020, it has been an exceptional year in every sense of the word. No one could have predicted the impact of the pandemic, both socially and economically. And I am acutely aware of the many losses that so many people and communities have suffered over the last 12 months. I am extremely proud of the way in which Temenos and all Temenosians responded – with commitment, dedication and empathy – supporting each other, our clients and partners through these unprecedented times. Through the crisis, our employees demonstrated our core values of Temenosity. These are tenacity, velocity, responsibility, authenticity and a constant focus on community. This enabled us to make great progress in 2020, despite the crisis, and emerge even stronger. We entered the pandemic in a very strong position, with record sales and profit in 2019 providing significant momentum at the start of 2020. We also benefit from a large recurring revenue base, which means that a significant portion of our profit for the year was already locked in. When the global financial impact of the pandemic became clear in the second quarter, we launched a solidarity program, with the Executive Committee and Leadership team taking salary reductions. 85% of the global workforce also voluntarily agreed to a salary reduction for 2020, to protect the company’s ability to invest in key areas, in particular Research and Development. This commitment from our employees demonstrates the dedication to the success of Temenos among our workforce. Temenos AG – Annual Report and Accounts 2020 Overview Performance Operating responsibly Governance Financial statements 033 Over Temenos’ 27-year history, our Within this market, we have been able to business model has demonstrated many maintain our high win rates through 2020 Over Temenos' 27-year history, our business model times that it can withstand crises and and have continued to take market share emerge even stronger which we showed across our key products and geographies. has shown many times that it can withstand crises and again in 2020. We did this by focusing on The on-premise competitive environment emerge even strong