INVESTOR PRESENTATION Q2 2018
Vesa Tykkyläinen, CEO Niclas Rosenlew, CFO July 18, 2018
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
Vesa Tykkyläinen, CEO Niclas Rosenlew, CFO July 18, 2018
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
Clean-up Growth
Performance culture and leadership changes Management become shareholders Consolidation
Transition to AWS Country management Sale of non- core assets Functional
Scanning services
Cloud focused strategy Partnering
Account management
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
Existing customers New markets Partnerships Key markets Select M&A
Basware recognized as Leader in Gartner’s Magic Quadrant Smart PDF: invoice capturing for any machine-readable PDF Basware Assistant: virtual assistant for procurement
EXAMPLES OF NEW CUSTOMER WINS AND TRANSFORMATIONS IN Q2 2018
Cloud revenues 62% of total Cloud order intake at all-time high
Clean-up phase completed, moving to accelerate growth
SPEND SMARTER
100% Digital Processes Network is Differentiator EUR 15bn Market Opportunity SIMPLIFY OPERATIONS
Cloud Non Cloud
Cloud as a proportion of Q2 total revenues H1 Organic Cloud Growth at Constant Currencies
Q2 Organic Total Growth at Constant Currencies
0,0 2,0 4,0 6,0 8,0 10,0 12,0
Q2 2017 Q2 2018 H1 2017 H1 2018
EUR m
intake at all-time high
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
9.5 11.0 6.4 5.5
impacted by FX and disposals
Transaction services combined grew 20.4%*
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
Cloud Revenue total 21 783 19 752 10.3 % 15.6 % Non-Cloud Revenue Maintenance 6 226 9 357
License sales 646 1 120
Consulting services 6 201 7 165
2.0 % Other non-cloud revenue 114
Non-Cloud Revenue total 13 186 17 536
Group Total 34 969 37 287
7.0 %
*On an organic basis at constant currencies
impacted by disposals and FX
(EUR thousand) 4-6 2018 4-6 2017 Change Net sales 34 969 37 287
Cost of sales
Gross profit 16 389 17 924
Sales and marketing
12.1 % Research and development
General and administration
29.4 % Total operating expenses
7.0 % Other operating income and expenses
Operating profit/loss
Adjustments 913 618 Depreciation and amortization
11.1 % Adjusted EBITDA
318
position with cash and undrawn bank facilities totalling EUR 51 million
(EUR thousand) 4-6 2018 4-6 2017 Cash flows from operating activities
Net change in cash and cash equivalents
Cash and cash equivalents 41 413 23 610 Total available liquidity* 51 413 33 610
*Includes undrawn bank facilities and short term deposits
Cloud revenues between EUR 90 and EUR 95 million Total costs slightly above 2017 levels**
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