PRESENTATION Q1 2018 Vesa Tykkylinen, CEO Niclas Rosenlew, CFO - PowerPoint PPT Presentation

INVESTOR PRESENTATION Q1 2018 Vesa Tykkyläinen, CEO Niclas Rosenlew, CFO April 19, 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 th ose 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 offer to sell or the solicitation of an offer to buy any securities of Basware or otherwise to engage in any investment activity.

CEO REVIEW

WHY BASWARE SIMPLIFY OPERATIONS SPEND SMARTER 100% Digital Processes Network is Differentiator EUR 15bn Market Opportunity

FOCUS ON CORE STRATEGY Sale aligned with strategy Disposal of Basware Banking and Financial Performance Solutions completed Focus on cloud on 28 February 2018 Focus on global growth

CUSTOMER SUCCESS EXAMPLES OF NEW CUSTOMER WINS AND TRANSFORMATIONS IN Q1 2018

#SUPERFINANCE IN Q1 2018 #SUPERFINANCE IN Q1 2018 Enhancements to Analytics: Supplier Dashboard Dun & Bradstreet supplier data enrichment Mobile discussions

FURTHER INTERNATIONAL EXPERIENCE TO BASWARE BOARD • Two new Board members elected in March 2018 • Daryl Rolley • Asko Schrey

Q1 2018 DISPOSALS ACCELERATE CLOUD TRANSITION Cloud revenues 59% of total STRATEGIC PRIORITY: Disposals accelerate CLOUD REVENUE Cloud transition GROWTH Indirect sales increase

FINANCIAL REVIEW

ITEMS AFFECTING REPORTING Disposals FX impact IFRS 15 and revenue allocation changes New P&L

SOLID SUBSCRIPTION ORDER INTAKE 3.5 • Investments in sales and 3.0 2.7 marketing 2.5 delivered solid 2.5 order intake 2.0 EUR m 1.5 • Time lag to visibility in 1.0 revenues 0.5 0.0 Q1 2017 Q1 2018 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. Transaction 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.

SOLID ORGANIC CLOUD REVENUE GROWTH Organic Cloud Cloud as a Growth at proportion of Constant total revenues Currencies +18.4% 59% Cloud Non Cloud

Q1 2018 NET SALES PROGRESSION Net sales by revenue type 1-3 2018 1-3 2017 Change • Headline growth (EUR thousand) significantly SaaS 9 576 8 002 19.7 % impacted by FX Revenue Transaction services 10 476 9 471 10.6 % and disposals Cloud Other cloud revenue 1 291 1 444 -10.6 % • Significant cloud Cloud Revenue total 21 343 18 917 12.8 % potential in existing Maintenance 7 836 9 849 -20.4 % maintenance Non-Cloud License sales 542 900 -39.7 % customer base Revenue Consulting services being addressed 6 337 7 071 -10.4 % Other non-cloud revenue -89 73 Non-Cloud Revenue total 14 627 17 893 -18.3 % Group Total 35 969 36 810 -2.3 %

SOLID ORGANIC CLOUD REVENUE GROWTH Organic Growth Growth at Reported Constant Currencies Cloud Revenues 12.8% 18.4% SaaS Revenues 19.7% 29.7% Transaction Revenues 10.6% 13.1% Total Revenues -2.3% 5.3%

Q1 2018 PROFITABILITY • New functional (EUR thousand) 1-3 2018 1-3 2017 Change P&L format Net sales 35 969 36 810 -2.3 % Cost of sales -17 913 -20 476 -12.5 % • Growth rates impacted by Gross profit 18 056 16 334 10.5 % disposal and FX Sales and marketing -9 879 -9 395 5.2 % Research and development -6 811 -7 830 -13.0 % General and administration -3 868 -3 257 18.8 % Total operating expenses -20 558 -20 483 0.4 % Other operating income and 14 997 -934 expenses Operating profit/loss 12 495 -5 084 Adjustments -15 113 898 Depreciation and amortization -2 630 -2 592 1.5 % Adjusted EBITDA 12 -1 593

Q1 2018 CASH FLOW AND BALANCE SHEET • Strong liquidity (EUR thousand) 1-3 2018 1-3 2017 position with cash and Cash flows from operating activities 7 111 7 466 undrawn bank Net change in cash and cash equivalents 33 685 -3 464 facilities totalling EUR 64 million Cash and cash equivalents 54 183 32 281 Total available liquidity* 64 183 42 281 * Includes undrawn bank facilities and short term deposits

2018 FULL YEAR OUTLOOK Basware’s number one strategic priority is cloud revenue growth. FOR 2018, BASWARE EXPECTS*: Cloud revenues Total costs slightly between EUR 90 and above 2017 levels** EUR 95 million *On an organic basis at constant currencies **Excluding D&A and adjustments to EBITDA

ILLUSTRATIVE ORGANIC CONSTANT CURRENCY IMPACT* 2018 Cloud Revenues 2018 costs excluding D&A X Y Reported and adjustments FY 2018 FX impact FY 2018 FX impact EUR 2.0m EUR 4.0m (expected)** (expected)** FY 2018 disposal FY 2018 disposal impact*** EUR 2.3m EUR 3.0m impact**** Total FX and disposal Total FX and disposal EUR 4.3m EUR 7.0m impact impact 2018 Cloud Revenues 2018 Costs Organic at Organic at Constant X + EUR 4.3m Y + EUR 7.0m Constant Currencies Currencies * Illustrative, final numbers will only be available at year end ** Expected FX impact as of 31 March 2018, total effect will change with further FX movements *** 2017 cloud revenues plus 2017 subscription order intake for disposed businesses **** 2017 carve-out costs adjusted for TSA costs

APPENDIX

SUBSCRIPTION ARR GROSS ORDER INTAKE 4.0 3.8 • Subscription annual recurring revenue 3.5 gross order intake 2.9 quarterly 3.0 2.7 • Numbers restated 2.5 2.5 to account for changes in revenue 2.0 EUR m 2.0 recognition practices and 1.5 disposal (see notes to Q1 2018 interim 1.0 report) 0.5 0.0 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 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. Transaction 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.

NETWORK BUSINESS DAYS Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2016 2016 2016 2016 2017 2017 2017 2017 2018 2018 2018 2018 62 63 65 63 64 61 64 63 63 62 65 64