Investor Briefing Q3 FY20 1 Safe Harbor This document contains - PowerPoint PPT Presentation

Investor Briefing Q3 FY20 1

Safe Harbor This document contains “forward - looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, including financial projections subject to risks, uncertainties and other factors that could materially affect our actual results. Actual results may differ materially from those indicated by such forward looking statements as a result of various important factors including, among others, competition, market demand, technological change, strategic relationships, recent acquisitions, international operations, general economic conditions, and including the potential effects of the coronavirus pandemic on any of the foregoing Any forward- looking statements or financial projections represent our views only as of today and should not be relied upon as representing our views as of any subsequent date. We do not assume any obligation to update any forward- looking statements or financial projections. Further, our financial projections do not consider the impact of any pending or future changes to accounting pronouncements under US Generally Accepted Accounting Principles. For additional discussion of factors that could impact our operational and financial results, please refer to our Form 10-K for the fiscal year ended June 30, 2019 and subsequently filed Form 10-Qs and Form 8-Ks or amendments thereto. Non-GAAP Financial Information The financial results and projections in this document are presented on a non-GAAP basis. Non-GAAP results and projections include core operating income, adjusted EBITDA, adjusted EBITDA margin, core operating margin, core earnings per share, and constant currency information. Reconciliations of our GAAP results to the most directly comparable non-GAAP results and guidance are included at the end of this document. Any non-GAAP outlook we provide has not been reconciled to the comparable GAAP outlook because of the difficulty of predicting the amounts to be adjusted, including but not limited to acquisition-related charges, minimum pension liability adjustments, stock compensation expense and weighted average shares outstanding. Since we expect these factors to have a significant impact on our future GAAP results, a reconciliation is not available on a forward looking basis without unreasonable effort. 2

About Bottomline Bottomline Technologies makes business payments simple, smart and secure Capitalizing on business payment leadership Leveraging product investment to drive position in large market opportunity subscription growth • Trusted brand in B2B payments • Investment in market-leading solutions for large and growing markets • Scale to execute, agile to innovate • Targeting 15-20% subscription revenue growth • Large B2B payment network ($200+ billion annual volume) • $350 million run rate subscription revenue • Secure business payments (domestic and cross border) • 92% recurring revenue • Leading payments and cash management platform 3

T H E O P P O R T U N I T Y B2B Payments Market $ 20T+ $ 25T $ 23T+ Sources: Visa 2017 Investor Day research MasterCard NAPCP Conference Presentation – March 6, 2018 Goldman Sachs Payment Ecosystems Research Report – August 3, 2017 4

Business Payment Complexity PAYMENT PAYER RECIPIENT 5

Business Payment Complexity NATIONAL BANK NATIONAL BANK Paper draft, ACH SWIFT or wire transfer message PROPRIETARY ACH or wire transfer NETWORK Paper draft, ACH PAYER’S BANK PAYMENT PAYMENT or wire transfer PAYER RECIPIENT’S BANK RECIPIENT Paper draft, ACH Commercial card or wire transfer CORRESPONDENT BANKS CARD NETWORK MERCHANT ACQUIRER’S BANK CARD ISSUER BANK 6

M A R K E T- L E A D I N G P R O D U C T S 7

The Paper Problem 67% 63% 75% The way businesses of organizations still of businesses say of organizations that “smarter” systems that make more than half of were victims of payment pay and get paid their payments by drive more efficiencies are fraud experienced necessary for AP’s success 1 paper check check fraud 2 B2B Payments Made Simple, Smart & Secure The Largest Electronic Payment Network for Businesses Paymode-X helps businesses easily automate accounts payable 400,000+ Members in network BANKS provide PAYERS accelerate VENDORS streamline receivables with clients with innovative payment automation, $200+ Billion payment capabilities, improve payment convenient electronic payments and grow market share security and monetize remittance and expand revenue AP spend in payments processed annually opportunities 8 1 The State of ePayables 2018 by Ardent Partners 2 2017 AFP Payment Fraud & Controls Survey

Digital Banking IQ Helping Banks Grow Organically & Defend vs. Digital Disruption Market-leading commercial banking & payments platform empowers banks to BANKS GET • Intelligent engagement platform, with integrated insights & analytics engage intelligently with customers, deliver • Market-leading payments and cash management capabilities • Embedded intelligence, simplicity & usability a unified experience and acquire, deepen BANK’S COMMERCIAL CUSTOMERS GET and grow profitable relationships. • Proactive insights and engagement from their banking relationship managers • Integrated, market-leading payments and cash management solutions • Tools to help manage their finances Aité Survey of Cash Management Vendors • Easy-to-use and customizable digital interface • Works with SMB business and accounting software Best in Class Leadership Position “The vendor to beat” User Interface and Experience Analytics Best Partner 9 9

Legal Spend Management Leadership Position The leading way insurance 300+ 13,500+ companies manage their legal Clients Law Firms spend and relationships 200+ 98% Streamlining and Automating Relationships with Law Firms Insurance Companies Retention Rate LEGAL INVOICE AND SPEND MANAGEMENT Top-Tier Client Base Paid as a percentage of legal bill Saves up to 8% of billings Reduces administrative expense by 30 – 50% PARTNERSELECT Choose the right lawyer for a right matter at the right rate Advanced analytics – improve case outcomes 10 10

F I N A N C I A L H I G H L I G H T S 11 11

Investment Highlights Large market Leading business opportunity payments product set Driving subscription Attractive lifetime Attractive EBITDA revenue customer value Margin Target 15-20% growth 10-15 years or more 12 12

Q3 Results Strategic Plan Q3 Results Commentary • Subscription revenue growth of 15-20% per year Subscription Revenue Growth 16% Within target range of 15-20% subscription revenue growth, • Leverage inherent attractive Subscription Revenue $87.5M despite COVID lifetime customer value of our Total Revenue $111.7M solutions • Core Operating Income $16.0M Continue to extend our product $350M annual run-rate platform capabilities and market Core Operating Margin 14% leadership Adjusted EBITDA $23.2M • Establish Bottomline as the clear $23.2 million EBITDA, reflecting leader in business payments Adjusted EBITDA Margin 21% consistently profitable model. Core EPS $0.27 Core operating income, adjusted EBITDA, core operating margin, core EPS, and constant currency information are non-GAAP measures. Definitions and a reconciliation to the most directly comparable GAAP measures can be found at the end of this document. 13 13 13

YTD FY’20 Financial Overview Subscription Revenue Total Revenue EBITDA 252 $M 332 $M 72 $M 76% of revenue 90% recurring revenue Consistently profitable model $70M operating cash flow YTD’20 Growth of 17% on a constant currency 37% of revenue is international basis $31M free cash flow YTD’20 100 94 100 296 300 262 252 10% 75 75 72 80 71 223 250 61 195 200 171 60 50 46 141 42 150 118 40 85 100 90% 55 20 50 0 0 Data for the 9-months ending March 30, 2020. Constant currency growth, and EBITDA as referred to here as adjusted EBITDA, are non-GAAP measures. A definition and reconciliation to the most directly comparable GAAP measure can be found in the Investors 14 14 section of the Bottomline website.

YTD Key Metrics YTD FY20 Subscription Gross Margin YTD FY20 YTD FY20 Key Metrics YoY (1) 17% Subscription growth Incremental Subscription Revenue $35.1 +2% Incremental Cost ($8.2) (2) 76% Subscription revenue +7% Incremental Gross Margin $26.9 (2) 90% Recurring revenue +4pp Incremental GM % 77% (2) +2pp 20% Sales and Marketing (2) +1pp 15% Development expense (1) Subscription growth calculated on a YoY constant currency basis; (2) Percentages are as % of total revenue 15 15

Balance Sheet Highlights Net cash on hand at 3/31/20 ($M) Actual Commentary Cash and investments $ 182.3 $120 million additional borrowing capacity from existing facility Total borrowings $ 180.0 $300 million credit facility matures July 2023 TTM results ($M) Actual Commentary Adjusted EBITDA $ 96.6 Consistent predictable cashflow Operating Cashflow $ 85.4 Free Cashflow $ 37.8 Covenant Compliance Actual Commentary Consolidated Net Leverage Ratio 1.4x Credit agreement allows up to 3.75x leverage Consolidated Interest Leverage Ratio 25.6x Credit agreement requires no less than 3.0x coverage Adjusted EBITDA is a non-GAAP measures. Definition is included at the end of this document. 16 16