INVESTOR PRESENTATION Q1 2017 Vesa Tykkylinen, CEO Niclas - - PowerPoint PPT Presentation
INVESTOR PRESENTATION Q1 2017 Vesa Tykkylinen, CEO Niclas - - PowerPoint PPT Presentation
INVESTOR PRESENTATION Q1 2017 Vesa Tykkylinen, CEO Niclas Rosenlew, CFO April 21, 2017 IMPORTANT NOTICE The following information contains, or may be deemed to contain, forward-looking statements. These statements relate to future events
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.
CEO REVIEW
SPEND SMARTER
WHY BASWARE
100% Paperless Processes Network is Differentiator EUR 15bn Market Opportunity SIMPLIFY OPERATIONS
WE DELIVER COMPELLING VALUE
Procurement strength Analytics leadership Seamless user experience
Leader in Gartner’s Magic Quadrant for Procure-to-Pay Suites
CUSTOMER SUCCESS
EXAMPLES OF GLOBAL CUSTOMER WINS ACROSS INDUSTRIES IN Q1 2017
OPERATIONAL IMPROVEMENTS
New US and Germany Sales Heads
SALES PERFORMANCE
Network Management
DATA OPPORTUNITY
Productivity Programme
AGILITY
Matching Share Plan Performance Share Plan Restricted Share Plan
MANAGEMENT ALIGNED WITH SHAREHOLDERS
2% OF BASWARE’S SHARE CAPITAL
Q1 2017 STRONG CLOUD MOMENTUM
Cloud revenues +29% Subscription ARR Order Intake +171% March record month for Basware Network volumes
STRATEGIC PRIORITY: CLOUD REVENUE GROWTH
FINANCIAL REVIEW
STRONG SUBSCRIPTION ORDER INTAKE
0.0 0.5 1.0 1.5 2.0 2.5 3.0 Q1 2016 Q1 2017
EUR m
- Investments in
sales and marketing delivered strong
- rder intake
- Time lag to
visibility in revenues
Subscription 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 SaaS and other subscription types. Per transaction cloud revenue is not included. Gross new 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.
CLOUD REVENUE AT RECORD LEVELS
2 4 6 8 10 12 14 16 18 20 Q1 2016 Q1 2017 SaaS Transaction Services Other Cloud Revenues
EUR m
Cloud Non Cloud
50%
More Than Half of Total Revenues Now from Cloud
Q1 2017 NET SALES PROGRESSION
- SaaS growth
continued to be extremely strong, up 108%
- Significant cloud
potential in existing maintenance customer base being addressed
Net sales by revenue type (EUR thousand) 1-3 2017 1-3 2016 Change Cloud Revenue SaaS 7 417 3 563 108% Transaction services 9 637 8 430 14% Other cloud revenue 1 442 2 365
- 39%
Cloud Revenue total 18 497 14 358 29% Non-Cloud Revenue Maintenance 9 849 10 132
- 3%
License sales 900 1 501
- 40%
Consulting services 7 482 8 117
- 8%
Other non-cloud revenue 73 17 326% Non-Cloud Revenue total 18 304 19 767
- 7%
Group Total 36 801 34 125 8%
Q1 2017 PROFITABILITY
- Impact of Q4
2016 productivity measures expected in H2 2017
(EUR thousand) 1-3 2017 1-3 2016 Change Net Sales 36 801 34 125 8% Material and Services
- 3 734
- 3 611
3% Personnel Expenses
- 26 459
- 23 848
11% Other Operating Expenses
- 9 108
- 7 533
21% Total costs and expenses excluding depreciation
- 39 301
- 34 992
12% Reported EBITDA
- 2 500
- 867
188% Adjustments to EBITDA 898 350 157% Adjusted EBITDA
- 1 602
- 517
210%
Q1 2017 R&D INVESTMENTS
- Impact of Q4
2016 productivity measures expected in H2 2017
(EUR thousand) 1-3 2017 1-3 2016 Change R&D expenses excluding depreciation 3 282 2 922 12% Capitalised R&D 2 854 2 265 26% Total R&D investments 6 136 5 187 18% Total R&D investments as % of sales 17% 15%
Q1 2017 CASH FLOW AND BALANCE SHEET
- Strong liquidity
position with cash and undrawn bank facilities totalling EUR 42 m
- Basware may consider
additional financing to to support future cloud growth
(EUR thousand) 1-3 2017 1-3 2016 Cash flows from operating activities 7 471 12 234 Net Change in cash and cash equivalents
- 3 464
21 810 Cash and cash equivalents 32 281 54 654** Total available liquidity* 42 281 64 654
* Includes undrawn bank facilities and short term deposits ** EUR 15.3m of the Q1 2016 cash position related to borrowing for the Verian acquisition drawn down at the end of the quarter prior to actual closing of the acquisition on 1 April 2016
Cloud revenues to grow by approximately 20 percent Adjusted EBITDA at breakeven
2017 FULL YEAR OUTLOOK
Basware’s number one strategic priority is cloud revenue growth. FOR 2017, BASWARE EXPECTS: