THE NEXT PHASE OF GROWTH BASWARE CAPITAL MARKETS DAY LONDON, 2ND - PowerPoint PPT Presentation

THE NEXT PHASE OF GROWTH BASWARE CAPITAL MARKETS DAY LONDON, 2ND FEBRUARY 2016

IMPORTANT NOTICE The following information contains, or may be deemed to contain, forward-looking statements. These statements relate to future events or future financial performance, including, but not limited to, expectations regarding market growth and development as well growth and profitability of Basware. In some cases, such forward- looking statements can be identified by terminology such as “expect,” “plan,” “anticipate,” “intend,” “believe,” “estimate,” “predict,” “potential,” or “continue,” or the negative of those terms or other comparable terminology. By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. Future results may vary from the results expressed in, or implied by, the forward-looking statements, possibly to a material degree. All forward-looking statements included herein are based on information presently available to Basware and, accordingly, Basware assumes no obligation to update any forward-looking statements, unless obligated to do so pursuant to an applicable law or regulation. Nothing in this presentation constitutes investment advice and this presentation shall not constitute an offer to sell or the solicitation of an offer to buy any securities of Basware or otherwise to engage in any investment activity. 2

BASWARE TEAM WITH YOU TODAY Esa Tihilä Niclas Rosenlew Vesa Tykkyläinen CEO CFO SVP Network Ilari Nurmi Ad van der Poel Tuomas Marttila SVP Purchase to Pay SVP Financing Services Head of Strategy 3

BASWARE OVERVIEW Basware is the leading provider of networked purchase-to-pay solutions, spanning e-invoicing to innovative financing services in the world of commerce Founded 1985; Publicly listed 2000 (NASDAQ OMX Helsinki); Net sales of € 143.4 million (2015) NETWORK PURCHASE TO PAY FINANCING SERVICES Invoice automation, procurement e-invoicing solutions & New value added innovations: & travel and expense operator between Basware Pay, Basware Discount management software buyers & suppliers & Basware Advance within organizations • Basware Commerce Network • • Basware Commerce Network 2500+ large customers • connects 1 million companies 1.2 million users enabled • • Partnerships include e.g. in over 100 countries SaaS / License MasterCard, Arrowgrass, ING 4

GLOBAL LEADERSHIP WITH A UNIQUELY COMPLETE OFFERING Ranked constantly as a leader Working capital by leading independent optimization research companies Basware Financing E-invoicing Services Purchase-to-Pay (P2P) Accounts Payable (AP) Largest # 1 in Accounts Top 3 e-invoicing Payable in Procurement network # 1 B2B Commerce Network 5

TODAY’S FOCUS IS ON THE NEXT PHASE OF GROWTH Starting point for the next phase of growth Esa Tihilä, CEO 13:00- Accelerate Network growth 14:45 Vesa Tykkyläinen, SVP Network Extend cloud Purchase to Pay leadership Ilari Nurmi, SVP Purchase to Pay Break Unleash Financing Services Ad van der Poel, SVP Financing Services Enabling priorities and investment 15:15- Esa Tihilä, CEO 17:00 2016-2018 Financial implications and goals Niclas Rosenlew, CFO Summary and conclusions Esa Tihilä, CEO Cocktails 6

TODAY’S FOCUS IS ON THE NEXT PHASE OF GROWTH Starting point for the next phase of growth Esa Tihilä, CEO 13:00- Accelerate Network growth 14:45 Vesa Tykkyläinen, SVP Network Extend cloud Purchase to Pay leadership Ilari Nurmi, SVP Purchase to Pay Break Unleash Financing Services Ad van der Poel, SVP Financing Services Enabling priorities and investment 15:15- Esa Tihilä, CEO 17:00 2016-2018 Financial implications and goals Niclas Rosenlew, CFO Summary and conclusions Esa Tihilä, CEO Cocktails 7

WE HAVE CREATED A SOLID FOUNDATION FOR GROWTH  Growing market driven by digitalization, drive for efficiency and regulation  Recognized product leadership  Established and loyal customer base with high share of recurring revenue  Over 1,000,000 organizations connected via Basware Commerce Network  Large and valuable amounts of data accumulated in the Basware Commerce Network  Streamlined, customer-centric organization with global reach, and strong presence in all key growth markets 8

A GROWING CLOUD BUSINESS SUPPORTED BY A STABLE BASE Constant growth year-on-year Cloud businesses 40% Positive cash flow growing fast 12% Strong balance sheet 88% Cloud transition has temporarily 60% Maintenance, consulting depressed group growth & margins, and license businesses provide a solid base this is unwinding as transition 2010 2015 completes SaaS and Network Maintenance, consulting and license 9 Note: SaaS and Network: P2P SaaS, transactions, Procserve and transaction network related partnership income.

STRONG NET SALES GROWTH IN HIGH POTENTIAL MARKETS Net sales by markets (Q1-Q4 2015) Growth in Net sales (2015 vs. 2014)  Net sales stable in mature markets  Strong organic growth in key markets (1) Total Net sales: € 143.4 million (1) (1) (2) (1) Includes Procserve and partnership income. (2) Excludes Procserve and partnership income. 10

WE SERVE A SIGNIFICANT NUMBER OF GLOBAL CUSTOMERS 2,500+ enterprise and corporate customers across all industry verticals and public sector Food / Beverage Energy Transportation / Logistics Manufacturing Medical / Pharma / Biotech Construction Chemicals Retail Services Professional Services Public Sector Banking / Finance + more than 1,000,000 organizations connected to Basware Commerce Network 11

MARKET AND COMPETITIVE SITUATION ALLOWS ACCELERATING GROWTH NETWORK PURCHASE TO PAY FINANCING SERVICES    Penetration still low but Growth picking up in Alternative financing accelerating key large markets services attracting growing investment   Network is the Demand moving rapidly  foundation for value to cloud solutions Basware an early added services leader, leveraging  Basware is a network data  Fragmented standards, recognized market  Basware the largest leader First solutions launched network, supporting all Accelerate Network Extend cloud Purchase Unleash Financing growth to Pay leadership Services 12

KEY 2016-2018 PRIORITIES FOR TAKING THE NEXT STEP 1. Accelerating all three businesses: Extend cloud Unleash Accelerate Purchase to Pay Financing Network growth leadership Services 2. Supported and enabled by: Investing in Further Scalable demand shortening of company generation delivery times infrastructure and sales 13

TODAY’S FOCUS IS ON THE NEXT PHASE OF GROWTH Starting point for the next phase of growth Esa Tihilä, CEO 13:00- Accelerate Network growth 14:45 Vesa Tykkyläinen, SVP Network Extend cloud Purchase to Pay leadership Ilari Nurmi, SVP Purchase to Pay Break Unleash Financing Services Ad van der Poel, SVP Financing Services Enabling priorities and investment 15:15- Esa Tihilä, CEO 17:00 2016-2018 Financial implications and goals Niclas Rosenlew, CFO Summary and conclusions Esa Tihilä, CEO Cocktails 14

BASWARE COMMERCE NETWORK IS AT THE HEART OF MAJOR TRENDS 1. Digitalization accelerating and affects all sizes of organizations 2. Regulation in the EU and the U.S. pushing e-invoicing penetration 3. True alternative finance platforms in short supply 15

BASWARE COMMERCE NETWORK: ACCESS ALL THROUGH SINGLE CONNECTION Point to point connections True network Service provider 1 BASWARE Service provider 2 COMMERCE NETWORK Service provider 3 16

THE LARGEST OPEN NETWORK The world’s largest open commerce network - connecting buyers and suppliers, improving relationships and ultimately enabling the flow of commerce A NETWORK OF VAT COMPLIANT WITH DIGITAL SIGNATURES USERS IN >100 COUNTRIES BASWARE >1 MILLION ACTIVE SUPPORTS 60+ COMMERCE BUYERS & SUPPLIERS INVOICE FORMATS NETWORK CONSOLIDATED 200+ E-INVOICING E-INVOICING & E-ORDERING PROVIDERS CONNECTED 17

NETWORK VOLUME & REVENUE SOLID TRACK RECORD Transaction revenue (1) Transaction volume Transaction revenue ( € in millions) Transaction volume (in millions) Q4/2015 Annualized transactions 18 (1) Includes start-up fees

NETWORK 2016-2018 PRIORITIES AND GOALS  Accelerate transaction sales o Growth in Basware P2P customers o Transactions-only opportunities (including targeted Key 2018 goal: sending sales) o New partnerships (e.g. cloud ERP vendors, other networks) 250 million transactions processed  Accelerate go-lives and ramp-ups o Delivery tools and processes o Easier and faster connectivity (e.g. business directory, vendor manager)  Focused platform development o Leading portal functionality co-developed with customers o Interfaces (e.g. API connectivity, PDF) o Network data-based value added services 19

TODAY’S FOCUS IS ON THE NEXT PHASE OF GROWTH Starting point for the next phase of growth Esa Tihilä, CEO 13:00- Accelerate Network growth 14:45 Vesa Tykkyläinen, SVP Network Extend cloud Purchase to Pay leadership Ilari Nurmi, SVP Purchase to Pay Break Unleash Financing Services Ad van der Poel, SVP Financing Services Enabling priorities and investment 15:15- Esa Tihilä, CEO 17:00 2016-2018 Financial implications and goals Niclas Rosenlew, CFO Summary and conclusions Esa Tihilä, CEO Cocktails 20