INVESTOR PRESENTATION Q3 2018
Vesa Tykkyläinen, CEO Niclas Rosenlew, CFO October 17, 2018
INVESTOR PRESENTATION Q3 2018 Vesa Tykkylinen, CEO Niclas - - PowerPoint PPT Presentation
INVESTOR PRESENTATION Q3 2018 Vesa Tykkylinen, CEO Niclas Rosenlew, CFO October 17, 2018 IMPORTANT NOTICE The following information contains, or may be deemed to contain, forward-looking statements. These statements relate to future events
Vesa Tykkyläinen, CEO Niclas Rosenlew, CFO October 17, 2018
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
events and depend on circumstances that may or may not occur in the future. Future results may vary from the results expressed in,
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
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BASWARE’S VISION Deliver the best global solution for networked purchasing, invoicing and paying
A HUGE MARKET OPPORTUNITY
EUR 15bn
EUR 5bn EUR 149m
Basware 2017 revenues Current market size Market potential
Every organisation can benefit from our solutions Supported by digitalisation, automation and AI megatrends Growing market
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BASWARE’S KEY DIFFERENTIATORS
Largest E-invoicing network Uniquely complete solution Captures 100% spend
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BASWARE’S GROWTH VISION
EUR 1 billion revenues
DELIVER CUSTOMER VALUE BEYOND EXPECTATIONS BE THE UNDISPUTED MARKET LEADER SIMPLIFY GLOBAL TRADE INTERACTIONS ENTER SELECT NEW GEOGRAPHIES NUMBER 1 IN LARGE EUROPEAN MARKETS LEADER IN US
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WHERE GROWTH WILL COME FROM
Customer Expansions Partnering Customer Transformations New Customer Acquisitions Select M&A
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STRONG ROI ON S&M INVESTMENTS
Increasing investments into Sales and Marketing significantly
LTV / CAC ratio
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MEDIUM TERM TARGET Accelerate to more than
Organic cloud growth by 2022
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CUSTOMER SUCCESS
EXAMPLES OF NEW CUSTOMER WINS AND TRANSFORMATIONS IN Q3 2018
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PARTNERSHIP WITH XEROX
with 387 employees transferring
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Q3 HIGHLIGHTS
Cloud revenues 66% of total Cloud Order intake +29%
STRATEGIC PRIORITY: CLOUD REVENUE GROWTH
Xerox partnership
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ORGANIC CLOUD REVENUE GROWTH FEEDS TOTAL GROWTH
Cloud Non Cloud
66%
Cloud as a proportion of Q3 total revenues YTD Organic Cloud Growth at Constant Currencies
+16%
YTD Organic Total Growth at Constant Currencies
+6%
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0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 18.0
Q3 2017 Q3 2018 YTD 2017 YTD 2018
CLOUD ORDER INTAKE GROWTH ACCELERATES
EUR m
growth accelerates
and Network recurring revenues
in revenues:
Annual recurring revenue gross order intake is calculated by summing the total order intake in the period expressed as an annual contract
add-ons and renewal uplifts but excludes churn. There will be a time lag before this order intake is visible in net sales. *Organic constant currency growth rate
13.0 15.5 4.5 3.5
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STRONG CLOUD UNIT ECONOMICS
CAC LTV
106% net renewal rate 95% gross renewal rate 19 years customer lifetime
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Q3 2018 NET SALES PROGRESSION
impacted by disposals
potential in existing maintenance customer base being addressed
Net sales by revenue type (EUR thousand) 7-9 2018 7-9 2017 Change Change* Cloud Revenue SaaS 10 177 8 903 14.3% 21.0% Transaction services 11 029 9 875 11.7% 12.4% Other cloud revenue 1 233 1 274
Cloud Revenue total 22 440 20 052 11.9% 15.0% Non-Cloud Revenue Maintenance 6 150 8 965
License sales 401 790
Consulting services 4 966 6 063
Other non-cloud revenue 34
Non-Cloud Revenue total 11 551 15 776
Group Total 33 991 35 827
5.2%
*On an organic basis at constant currencies
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Q3 2018 PROFITABILITY
impacted by disposals, sales and marketing investments and stock based compensation
(EUR thousand) 7-9 2018 7-9 2017 Change Net sales 33 991 35 827
Cost of sales
Gross profit 17 890 18 862
Sales and marketing
37.8% Research and development
0.9% General and administration
31.2% Total operating expenses
22.8% Other operating income and expenses
22.7% Operating profit/loss
1 205 Adjustments 187 156 19.9% Depreciation and amortization
18.4% Adjusted EBITDA
3 661
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UNDERLYING PROFITABILITY
c. EUR 2m c. EUR 3m c. EUR 1m Adjusted EBITDA EUR -0.88m Disposal impact Additional S&M spend Additional Stock based compensation Total impact: c. EUR 6m
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Q3 2018 CASH FLOW AND BALANCE SHEET
position with cash and undrawn bank facilities totalling EUR 56 million
million financing via multi-issuer bond in September
(EUR thousand) 7-9 2018 7-9 2017 Cash flows from operating activities
Net change in cash and cash equivalents 4 760 1 708 Cash and cash equivalents 46 235 25 275 Total available liquidity* 56 235 35 275
*Includes undrawn bank facilities and short term deposits 22
Cloud revenues between EUR 90 and EUR 95 million Total costs slightly above 2017 levels**
2018 FULL YEAR OUTLOOK
Basware’s number one strategic priority is cloud revenue growth. FOR 2018, BASWARE EXPECTS*:
*On an organic basis at constant currencies **Excluding D&A and adjustments to EBITDA
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