PRESENTATION Q3 2017 Vesa Tykkylinen, CEO Niclas Rosenlew, CFO - - PowerPoint PPT Presentation
PRESENTATION Q3 2017 Vesa Tykkylinen, CEO Niclas Rosenlew, CFO - - PowerPoint PPT Presentation
INVESTOR PRESENTATION Q3 2017 Vesa Tykkylinen, CEO Niclas Rosenlew, CFO October 18, 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
CONVERTING TO E-INVOICING
”CURRENTLY WE ARE SENDING ELECTRONIC INVOICES TO 96% OF OUR CUSTOMERS. IT IS FANTASTIC! I HAVE A HAPPY CFO.”
Liselotte Frost Christensen, Credit Manager, Carlsberg Group
E-INVOICING RATE NOW A WHOPPING 96%.
CUSTOMER SUCCESS
EXAMPLES OF GLOBAL CUSTOMER WINS ACROSS INDUSTRIES IN Q3 2017
CUSTOMER SUCCESS
EXAMPLES OF CUSTOMER TRANSFORMATIONS SIGNED IN Q3 2017
BASWARE LEADS INDUSTRY INNOVATION IN Q3
Enhancements to Analytics: Peer Benchmarking, Predictive Analytics Discount Partnership with Nordea Basware Vault
Q3 2017 STRONG CLOUD MOMENTUM
Cloud revenues 55% of total Subscription ARR Order Intake YTD +66% Productivity savings fully visible in cost base
STRATEGIC PRIORITY: CLOUD REVENUE GROWTH
FINANCIAL REVIEW
0,0 1,0 2,0 3,0 4,0 5,0 6,0 7,0 8,0 9,0 10,0
Q3 2016 Q3 2017 YTD 2016 YTD 2017
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.
1.9 2.2 5.7 9.5
STRONG CLOUD REVENUES
5 10 15 20 25 Q3 2016 Q3 2017 SaaS Transaction Services Other Cloud Revenues
EUR m
Cloud Non Cloud
55%
More than half of total revenues now from Cloud
Q3 2017 NET SALES PROGRESSION
- SaaS growth
continued to be strong, up 33%
- Significant cloud
potential in existing maintenance customer base being addressed
Net sales by revenue type (EUR thousand) 7-9 2017 7-9 2016 Change Cloud Revenue SaaS 8 451 6 336 33% Transaction services 9 632 8 547 13% Other cloud revenue 1 269 1 572
- 19%
Cloud Revenue total 19 352 16 455 18% Non-Cloud Revenue Maintenance 8 965 10 168
- 12%
License sales 790 1 137
- 31%
Consulting services 6 380 7 439
- 14%
Other non-cloud revenue
- 42
96 Non-Cloud Revenue total 16 092 18 841
- 15%
Group Total 35 444 35 295 0%
Q3 2017 PROFITABILITY
- Effect of
productivity programme visible in cost base
- Savings achieved
as result of personnel reductions approx. EUR 1.6 m in Q3 and EUR 3.3 m YTD
(EUR thousand) 7-9 2017 7-9 2016 Change Net sales 35 444 35 295 0% Materials and services
- 3 562
- 3 576
0% Personnel expenses
- 21 370
- 24 070
- 11%
Other operating expenses
- 7 446
- 7 682
- 3%
Total costs and expenses excluding depreciation
- 32 378
- 35 328
- 8%
Reported EBITDA 3 121
- 33
Adjustments to EBITDA 156 1 414
- 89%
Adjusted EBITDA 3 277 1 381 137%
Q3 2017 R&D INVESTMENTS
- Full impact of
Q4 2016 productivity measures realised
(EUR thousand) 7-9 2017 7-9 2016 Change R&D expenses excluding depreciation 2 572 2 664
- 3%
Capitalised R&D 2 192 2 639
- 17%
Total R&D investments 4 764 5 304
- 10%
Total R&D investments as % of net sales 13% 15%
Q3 2017 CASH FLOW AND BALANCE SHEET
- Strong liquidity
position with cash and undrawn bank facilities totalling EUR 35 m
- EUR 30 m loan
financing executed
(EUR thousand) 7-9 2017 7-9 2016 Cash flows from operating activities
- 4 840
- 5 479
Net change in cash and cash equivalents 1 708
- 8 713
Cash and cash equivalents 25 275 12 951 Total available liquidity* 35 275 22 951
* Includes undrawn bank facilities and short term deposits
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:
APPENDIX
0,0 0,5 1,0 1,5 2,0 2,5 3,0 3,5 4,0 4,5 5,0
Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017
SUBSCRIPTION ARR GROSS ORDER INTAKE
EUR m
- Subscription
annual recurring revenue gross
- rder intake
quarterly
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.
1.9
1.1 2.7 1.9 2.2 2.8 4.4 2.2