PRESENTATION Q4 2017 Vesa Tykkylinen, CEO Niclas Rosenlew, CFO - - PowerPoint PPT Presentation
PRESENTATION Q4 2017 Vesa Tykkylinen, CEO Niclas Rosenlew, CFO - - PowerPoint PPT Presentation
INVESTOR PRESENTATION Q4 2017 Vesa Tykkylinen, CEO Niclas Rosenlew, CFO February 2, 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% Paperless Processes Network is Differentiator EUR 15bn Market Opportunity SIMPLIFY OPERATIONS
VALUE TO CUSTOMERS OF BASWARE SOLUTIONS
307% Return on Investment 45% Reduction in Invoice Processing Costs 12 Month Payback Time
The Total Economic Impact™ Of Basware’s Purchase-To-Pay Cloud Solution Link to report:
CUSTOMER SUCCESS
EXAMPLES OF GLOBAL CUSTOMER WINS ACROSS INDUSTRIES IN 2017
CUSTOMER SUCCESS
EXAMPLES OF CUSTOMER TRANSFORMATIONS SIGNED IN 2017
BASWARE LEADS INDUSTRY INNOVATION IN 2017
Enhancements to Analytics: Peer Benchmarking, Supplier Quality Smart Coding with Machine Learning Value Added Services: Vault, Discount
SALES PRODUCTIVITY INCREASES
Effects of efficiency measures visible in significant increase in sales productivity
FY 2016 FY 2017
ARR Order Intake* per Quota Carrier
*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.
FOCUS ON CORE STRATEGY
Disposal of Basware Banking and Financial Performance Solutions announced
- n 2 February 2018
Focus on cloud Focus on global growth Sale aligned with strategy
Q4 2017 STRONG CLOUD MOMENTUM
Cloud revenues 55%
- f total
Subscription ARR Order Intake 2017 +63% Productivity improvements fully visible in financials
STRATEGIC PRIORITY: CLOUD REVENUE GROWTH
FINANCIAL REVIEW
0,0 2,0 4,0 6,0 8,0 10,0 12,0 14,0
Q4 2016 Q4 2017 FY 2016 FY 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.
2.2 3.4 7.9 12.8
STRONG CLOUD REVENUES
10 20 30 40 50 60 70 80 90 Q4 2016 Q4 2017 FY 2016 FY 2017 SaaS Transaction Services Other Cloud Revenues
EUR m
Cloud Non Cloud
55%
More than half of total revenues now from Cloud
Q4 2017 NET SALES PROGRESSION
- SaaS growth
continued to be strong, up 28%
- Significant cloud
potential in existing maintenance customer base being addressed
Net sales by revenue type (EUR thousand) 10-12 2017 10-12 2016 Change Cloud Revenue SaaS 9 162 7 173 28 % Transaction services 11 261 10 172 11 % Other cloud revenue 1 303 1 576
- 17 %
Cloud Revenue total 21 726 18 900 15 % Non-Cloud Revenue Maintenance 8 856 10 075
- 12 %
License sales 1 383 1 962
- 30 %
Consulting services 7 796 9 360
- 17 %
Other non-cloud revenue
- 54
- 86
- 37 %
Non-Cloud Revenue total 17 981 21 310
- 16 %
Group Total 39 707 40 211
- 1 %
Q4 2017 PROFITABILITY
- Effect of
productivity programme visible in cost base
- Savings achieved
as result of personnel reductions approx. EUR 1.8 m in Q4 and EUR 5.1 m in 2017
(EUR thousand) 10-12 2017 10-12 2016 Change Net sales 39 707 40 211
- 1 %
Materials and services
- 3 939
- 4 600
- 14 %
Personnel expenses
- 25 879
- 27 614
- 6 %
Other operating expenses
- 9 464
- 9 623
- 2 %
Total costs and expenses excluding depreciation
- 39 282
- 41 837
- 6 %
Reported EBITDA 349
- 1 623
Adjustments to EBITDA 1 023 5 283
- 81 %
Adjusted EBITDA 1 372 3 660
- 63 %
Q4 2017 R&D INVESTMENTS
- Full impact of
Q4 2016 productivity measures realised
(EUR thousand) 10-12 2017 10-12 2016 Change R&D expenses excluding depreciation 3 072 3 410
- 10 %
Capitalised R&D 2 321 3 179
- 27 %
Total R&D investments 5 393 6 589
- 18 %
Total R&D investments as % of net sales 14 % 16 %
Q4 2017 CASH FLOW AND BALANCE SHEET
- Strong liquidity
position with cash and undrawn bank facilities totalling EUR 31 m
(EUR thousand) 10-12 2017 10-12 2016 Cash flows from operating activities
- 1 795
- 5 564
Net change in cash and cash equivalents
- 4 566
22 856 Cash and cash equivalents 20 683 35 755 Total available liquidity* 30 683 38 755
* Includes undrawn bank facilities and short term deposits
PRO-FORMA IMPACT ON 2017 FINANCIALS
*Assumes that disposals close at end of Q1 2018
EURm Cloud Non-Cloud Total Revenue recognition changes +0.5 to +1.5
- 0.5 to -1.5
- 0.5 to + 0.5
Disposals pro-forma effect* on costs c. EUR 5m EURm Cloud Non-Cloud Total Disposals*
- 1
- 10
- 11
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
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 Q4 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 3.4
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