INVESTOR PRESENTATION Q2 2018 Vesa Tykkylinen, CEO Niclas - - PowerPoint PPT Presentation

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INVESTOR PRESENTATION Q2 2018 Vesa Tykkylinen, CEO Niclas - - PowerPoint PPT Presentation

INVESTOR PRESENTATION Q2 2018 Vesa Tykkylinen, CEO Niclas Rosenlew, CFO July 18, 2018 IMPORTANT NOTICE The following information contains, or may be deemed to contain, forward-looking statements. These statements relate to future events or


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SLIDE 1

INVESTOR PRESENTATION Q2 2018

Vesa Tykkyläinen, CEO Niclas Rosenlew, CFO July 18, 2018

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SLIDE 2

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

  • ther 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,

  • r 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

  • f an offer to buy any securities of Basware or otherwise to engage in any investment activity.
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SLIDE 3

CEO REVIEW

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SLIDE 4

SUCCESSFULLY COMPLETING CLEAN UP PHASE, INCREASING FOCUS ON ACCELERATING GROWTH

Clean-up Growth

Performance culture and leadership changes Management become shareholders Consolidation

  • f R&D sites

Transition to AWS Country management Sale of non- core assets Functional

  • rganization

Scanning services

  • utsourced

Cloud focused strategy Partnering

  • rganization

Account management

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SLIDE 5

FOUNDATIONS ALREADY IN PLACE TO ACCELERATE GROWTH

Existing sales and marketing ramp-up Improving sales pipeline Investment in sales and marketing will increase

Quota carriers +40% YE 2018 vs. YE 2017 Marketing pipeline +60% +12% in Q2 2018

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SLIDE 6

WHERE GROWTH WILL COME FROM

Existing customers New markets Partnerships Key markets Select M&A

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SLIDE 7

SOLUTION LEADERSHIP IN Q2 2018

Basware recognized as Leader in Gartner’s Magic Quadrant Smart PDF: invoice capturing for any machine-readable PDF Basware Assistant: virtual assistant for procurement

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SLIDE 8

CUSTOMER SUCCESS

EXAMPLES OF NEW CUSTOMER WINS AND TRANSFORMATIONS IN Q2 2018

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SLIDE 9

Q2 HIGHLIGHTS

Cloud revenues 62% of total Cloud order intake at all-time high

STRATEGIC PRIORITY: CLOUD REVENUE GROWTH

Clean-up phase completed, moving to accelerate growth

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SLIDE 10

SPEND SMARTER

WHY BASWARE

100% Digital Processes Network is Differentiator EUR 15bn Market Opportunity SIMPLIFY OPERATIONS

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SLIDE 11

FINANCIAL REVIEW

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SLIDE 12

ORGANIC CLOUD REVENUE GROWTH FEEDS TOTAL GROWTH

Cloud Non Cloud

62%

Cloud as a proportion of Q2 total revenues H1 Organic Cloud Growth at Constant Currencies

+17%

Q2 Organic Total Growth at Constant Currencies

+7%

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SLIDE 13

0,0 2,0 4,0 6,0 8,0 10,0 12,0

Q2 2017 Q2 2018 H1 2017 H1 2018

RECORD TOTAL CLOUD ORDER INTAKE

EUR m

  • Total cloud order

intake at all-time high

  • Includes all SaaS

and Network recurring revenues

  • Time lag to visibility

in revenues

Annual recurring revenue gross order intake is calculated by summing the total order intake in the period expressed as an annual contract

  • value. This includes all SaaS and Network recurring revenues including transaction revenues. Gross order intake covers new cloud customers,

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

9.5 11.0 6.4 5.5

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SLIDE 14

Q2 2018 NET SALES PROGRESSION

  • Headline growth

impacted by FX and disposals

  • SaaS and

Transaction services combined grew 20.4%*

  • Significant cloud

potential in existing maintenance customer base being addressed

Net sales by revenue type (EUR thousand) 4-6 2018 4-6 2017 Change Change* Cloud Revenue SaaS 9 663 8 372 15.4 % 26.2 % Transaction services 10 900 9 573 13.9 % 15.6 % Other cloud revenue 1 220 1 807

  • 32.5 %
  • 31.3 %

Cloud Revenue total 21 783 19 752 10.3 % 15.6 % Non-Cloud Revenue Maintenance 6 226 9 357

  • 33.5 %
  • 11.7 %

License sales 646 1 120

  • 42.3 %
  • 21.9 %

Consulting services 6 201 7 165

  • 13.5 %

2.0 % Other non-cloud revenue 114

  • 105

Non-Cloud Revenue total 13 186 17 536

  • 24.8 %
  • 4.8 %

Group Total 34 969 37 287

  • 6.2 %

7.0 %

*On an organic basis at constant currencies

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SLIDE 15

Q2 2018 PROFITABILITY

  • Growth rates

impacted by disposals and FX

(EUR thousand) 4-6 2018 4-6 2017 Change Net sales 34 969 37 287

  • 6.2 %

Cost of sales

  • 18 580
  • 19 363
  • 4.0 %

Gross profit 16 389 17 924

  • 8.6 %

Sales and marketing

  • 10 434
  • 9 304

12.1 % Research and development

  • 6 964
  • 7 657
  • 9.0 %

General and administration

  • 4 315
  • 3 335

29.4 % Total operating expenses

  • 21 712
  • 20 296

7.0 % Other operating income and expenses

  • 1 006
  • 397

Operating profit/loss

  • 6 329
  • 2 769
  • 128.6 %

Adjustments 913 618 Depreciation and amortization

  • 2 742
  • 2 469

11.1 % Adjusted EBITDA

  • 2 674

318

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SLIDE 16

Q2 2018 CASH FLOW AND BALANCE SHEET

  • Strong liquidity

position with cash and undrawn bank facilities totalling EUR 51 million

(EUR thousand) 4-6 2018 4-6 2017 Cash flows from operating activities

  • 7 856
  • 4 837

Net change in cash and cash equivalents

  • 12 988
  • 8 162

Cash and cash equivalents 41 413 23 610 Total available liquidity* 51 413 33 610

*Includes undrawn bank facilities and short term deposits

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SLIDE 17

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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