IT SEMINAR VESA TYKKYLINEN, CEO HELSINKI, 24 NOVEMBER 2016 - - PowerPoint PPT Presentation

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CARNEGIE IT SEMINAR VESA TYKKYLINEN, CEO HELSINKI, 24 NOVEMBER 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

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CARNEGIE IT SEMINAR

VESA TYKKYLÄINEN, CEO HELSINKI, 24 NOVEMBER 2016

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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

ffer to sell or the solicitation of an offer to buy any securities of Basware or otherwise to engage in any

investment activity.

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WHY BASWARE

Huge market

pportunity

THE market leader Cloud focused strategy

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MEGA TRENDS DRIVING DEMAND FOR BASWARE’S SERVICES

Digitalisation e-commerce Open Networks Disruption of Traditional Financing Models Public Sector Initiatives Automation

EXCITING AND GROWING MARKET OPPORTUNITY

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REGULATION IN THE EU AND THE U.S. PUSHING E-INVOICING PENETRATION

EU and US public sector mandated to support e-invoicing from end 2018 More than 50 governments pushing e-invoicing

Cut costs
Increases tax income
Reduces fraud

65% of businesses supply the public sector = 14 million companies in the EU alone

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Future Potential:

100% e-invoices

MARKET POTENTIAL FOR NETWORKED P2P

370 billion invoices annually, globally,

95% currently in paper format

Current Total Addressable Market:

3 billion

e-invoices, 1% of total

Source: Management estimates, Billentis, EESPA. Covers B2B, B2G and B2C

E-invoice Other electronic formats Paper and unstructured data

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GLOBAL LEADER IN A FRAGMENTED MARKET

Network Purchase to Pay Financing Services #1 e-invoicing

perator globally

#1 in Accounts Payable and Top 3 in Procurement Nascent market 3% share of addressable market 7% share of addressable market Nascent market Very few global competitors Multiple small local competitors Global competition from ERP providers Smaller local providers Offering is unique in breadth Competition depends on customer size

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BASWARE A LEADER IN GARTNER’S MAGIC QUADRANT FOR PROCURE-TO-PAY SUITES

“P2P suite Leaders demonstrate a market-defining vision

f how technology and services can help procurement

establish, develop and maintain contract compliance and cost- effective processes for managing and controlling external spend. They have the ability to execute against their vision with products and services, and they have demonstrated results in the form of growth and customer satisfaction. Leaders successfully sell into multiple industries and multiple geographies. Leaders are often what other providers in the market measure themselves against, and they are the most likely vendors from this report to be in the P2P suite business five years from now.”

*Gartner, Magic Quadrant for Procure-to-Pay Suites, Deborah R Wilson, Paolo Malinverno, Magnus Bergfors, Desere Edwards, 13 June 2016 This graphic was published by Gartner, Inc. as part of a larger research document and should be evaluated in the context of the entire document. The Gartner document is available upon request from www.basware.com. Gartner does not endorse any vendor, product or service depicted in its research publications, and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner research publications consist of the opinions of Gartner's research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose. Source: Gartner (June 2016)

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WE HELP CUSTOMERS DO THREE THINGS

Connect Manage Optimize

Simplify and automate
Eliminate paper
Strengthen supplier

relationships

Navigate regulatory

complexity

Improve data accuracy
Deliver financial insights to

the business

Improve collaboration
Control margins and spend
Tap into supplier innovation
Drive cost savings and

efficiency

Drive growth and operational

excellence

Create competitive advantage
Minimize business risk
Reduce supply chain risk
Improve cash flow
Optimize working capital

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END-TO-END SOLUTION UNLOCKS VALUE

Basware Network

SUPPLIERS SUPPLIERS

OPTIMIZE INDIRECT & DIRECT INVOICE PROCESSING UNLOCK CASH FLOW TRANSFORM PROCUREMENT

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One single connection, the most cost-effective

way of communication

Basware automatically converts invoices to

the end format required

Suppliers can reach a large number of

customers using our interoperable network partners

Global trusted partner: multi-lingual, multi-

format and connected to main government hubs

SUCCESS ENABLER: OPEN BASWARE NETWORK

Basware Network is the largest open e-Invoicing network globally, powered by over 220 interoperability network partners and over 1M buyers and sellers

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“

The Basware solution has proved incredibly flexible, providing a seamless integration with our existing systems.”

Ed Prins Financial Services Manager

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HOW BASWARE WILL GRAB THE OPPORTUNITY

Cloud Revenue Growth Continue to strengthen sales and marketing Focus on Customer Success Grow and monetize network and data assets with value added services including financing Increase productivity by simplifying our

perations and increasing scalability

Evolve our culture and way of working to focus more on performance Strategic Priority Actions To Enable Strategy

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CLOUD REVENUES APPROACHING 50%

 SaaS  Transaction Services  Financing Services (excl. alliance fees)  Other subscription revenues 2010 2015 2016 Q3

Cloud Revenues Drive Growth

 Maintenance  Licenses  Consulting

Other Revenues Enable Cloud Growth

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2020 STRATEGY GOALS

Cloud revenue growth Cloud revenue growth >20% CAGR

n an organic basis

Annual net sales >EUR 220 million Recurring revenue ~ 80% of net sales

* Cloud revenue includes transactions services, SaaS and other subscription and financing services revenue excluding alliance fees ** Recurring revenue consists of net sales excluding license sales, consulting revenue related to deliveries, and alliance fees

Continue to improve underlying profitability Strategic Priority 2017-2020 Strategic Goals

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WHY BASWARE

Huge market

pportunity

THE market leader Cloud focused strategy

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NEXT REPORT

MORE INFORMATION: www.basware.com/investors www.basware.com www.twitter.com/basware www.facebook.com/BaswareCorporation www.linkedin.com/company/basware

Q4 INTERIM REPORT ON FEBRUARY 1, 2017