PRESENTATION Q1 2018 Vesa Tykkylinen, CEO Niclas Rosenlew, CFO - - PowerPoint PPT Presentation
PRESENTATION Q1 2018 Vesa Tykkylinen, CEO Niclas Rosenlew, CFO - - PowerPoint PPT Presentation
INVESTOR PRESENTATION Q1 2018 Vesa Tykkylinen, 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
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% Digital Processes Network is Differentiator EUR 15bn Market Opportunity SIMPLIFY OPERATIONS
FOCUS ON CORE STRATEGY
Disposal of Basware Banking and Financial Performance Solutions completed
- n 28 February 2018
Focus on cloud Focus on global growth Sale aligned with strategy
CUSTOMER SUCCESS
EXAMPLES OF NEW CUSTOMER WINS AND TRANSFORMATIONS IN Q1 2018
#SUPERFINANCE IN Q1 2018
Enhancements to Analytics: Supplier Dashboard Dun & Bradstreet supplier data enrichment Mobile discussions
#SUPERFINANCE IN Q1 2018
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%
- f total
Disposals accelerate Cloud transition
STRATEGIC PRIORITY: CLOUD REVENUE GROWTH
Indirect sales increase
FINANCIAL REVIEW
ITEMS AFFECTING REPORTING
Disposals FX impact IFRS 15 and revenue allocation changes New P&L
2.5 2.7 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5
Q1 2017 Q1 2018
SOLID SUBSCRIPTION ORDER INTAKE
EUR m
- Investments in
sales and marketing delivered solid
- 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. 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
Cloud Non Cloud
59%
Cloud as a proportion of total revenues Organic Cloud Growth at Constant Currencies
+18.4%
Q1 2018 NET SALES PROGRESSION
- Headline growth
significantly impacted by FX and disposals
- Significant cloud
potential in existing maintenance customer base being addressed
Net sales by revenue type (EUR thousand) 1-3 2018 1-3 2017 Change Cloud Revenue SaaS 9 576 8 002 19.7 % Transaction services 10 476 9 471 10.6 % Other cloud revenue 1 291 1 444
- 10.6 %
Cloud Revenue total 21 343 18 917 12.8 % Non-Cloud Revenue Maintenance 7 836 9 849
- 20.4 %
License sales 542 900
- 39.7 %
Consulting services 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
Growth Reported Cloud Revenues Organic Growth at Constant Currencies SaaS Revenues Total Revenues 12.8% 19.7%
- 2.3%
18.4% 29.7% 5.3% Transaction Revenues 10.6% 13.1%
Q1 2018 PROFITABILITY
- New functional
P&L format
- Growth rates
impacted by disposal and FX
(EUR thousand) 1-3 2018 1-3 2017 Change Net sales 35 969 36 810
- 2.3 %
Cost of sales
- 17 913
- 20 476
- 12.5 %
Gross profit 18 056 16 334 10.5 % 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 expenses 14 997
- 934
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
position with cash and undrawn bank facilities totalling EUR 64 million
(EUR thousand) 1-3 2018 1-3 2017 Cash flows from operating activities 7 111 7 466 Net change in cash and cash equivalents 33 685
- 3 464
Cash and cash equivalents 54 183 32 281 Total available liquidity* 64 183 42 281
* Includes undrawn bank facilities and short term deposits
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
ILLUSTRATIVE ORGANIC CONSTANT CURRENCY IMPACT*
2018 Cloud Revenues Reported FY 2018 FX impact (expected)** Total FX and disposal impact X EUR 2.0m EUR 4.3m FY 2018 disposal impact*** EUR 2.3m 2018 Cloud Revenues Organic at Constant Currencies X + EUR 4.3m 2018 costs excluding D&A and adjustments FY 2018 FX impact (expected)** Total FX and disposal impact Y EUR 4.0m EUR 7.0m FY 2018 disposal impact**** EUR 3.0m 2018 Costs Organic at Constant Currencies Y + EUR 7.0m
* 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
2.5 3.8 2.0 2.9 2.7 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0
Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018
SUBSCRIPTION ARR GROSS ORDER INTAKE
EUR m
- Subscription annual
recurring revenue gross order intake quarterly
- Numbers restated
to account for changes in revenue recognition practices and disposal (see notes to Q1 2018 interim report)
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 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 62 63 65 63 64 61 64 63 63 62 65 64