INVESTOR PRESENTATION Q4 2017 Vesa Tykkyläinen, 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 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% Paperless Processes Network is Differentiator EUR 15bn Market Opportunity
VALUE TO CUSTOMERS OF BASWARE SOLUTIONS 12 Month Payback Time 307% Return on Investment 45% Reduction in Invoice Processing Costs Link to report: The Total Economic Impact™ Of Basware’s Purchase -To-Pay Cloud Solution
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 ARR Order Intake* per Quota Carrier Effects of efficiency measures visible in significant increase in sales productivity FY 2016 FY 2017 *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 Sale aligned with strategy Disposal of Basware Banking and Financial Performance Solutions announced Focus on cloud on 2 February 2018 Focus on global growth
Q4 2017 STRONG CLOUD MOMENTUM Cloud revenues 55% of total STRATEGIC PRIORITY: Subscription ARR CLOUD REVENUE Order Intake 2017 +63% GROWTH Productivity improvements fully visible in financials
FINANCIAL REVIEW
SOLID SUBSCRIPTION ORDER INTAKE • Investments in 14,0 sales and marketing 12,0 delivered solid 10,0 order intake 8,0 EUR m • Time lag to 6,0 visibility in 4,0 revenues 2,0 2.2 3.4 7.9 12.8 0,0 Q4 2016 Q4 2017 FY 2016 FY 2017 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.
STRONG CLOUD REVENUES 90 More than half of 80 total revenues now 70 from Cloud 60 50 EUR m 40 55% 30 20 10 0 Cloud Non Cloud Q4 2016 Q4 2017 FY 2016 FY 2017 SaaS Transaction Services Other Cloud Revenues
Q4 2017 NET SALES PROGRESSION Net sales by revenue type 10-12 10-12 Change • SaaS growth (EUR thousand) 2017 2016 continued to be SaaS 9 162 7 173 28 % strong, up 28% Revenue Transaction services 11 261 10 172 11 % Cloud Other cloud revenue 1 303 1 576 -17 % • Significant cloud Cloud Revenue total 21 726 18 900 15 % potential in existing Maintenance 8 856 10 075 -12 % maintenance Non-Cloud License sales 1 383 1 962 -30 % Revenue customer base Consulting services 7 796 9 360 -17 % being addressed 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 (EUR thousand) 10-12 10-12 Change 2017 2016 productivity programme visible Net sales 39 707 40 211 -1 % in cost base Materials and services -3 939 -4 600 -14 % Personnel expenses -25 879 -27 614 -6 % Other operating expenses -9 464 -9 623 -2 % • Savings achieved Total costs and expenses excluding -39 282 -41 837 -6 % as result of depreciation personnel Reported EBITDA 349 -1 623 reductions approx. Adjustments to EBITDA 1 023 5 283 -81 % EUR 1.8 m in Q4 Adjusted EBITDA 1 372 3 660 -63 % and EUR 5.1 m in 2017
Q4 2017 R&D INVESTMENTS • Full impact of (EUR thousand) 10-12 10-12 Change 2017 2016 Q4 2016 productivity R&D expenses excluding depreciation 3 072 3 410 -10 % measures Capitalised R&D 2 321 3 179 -27 % realised Total R&D investments 5 393 6 589 -18 % Total R&D investments as % of net 14 % 16 % sales
Q4 2017 CASH FLOW AND BALANCE SHEET • Strong liquidity (EUR thousand) 10-12 10-12 2017 2016 position with cash and undrawn bank Cash flows from operating activities -1 795 -5 564 facilities totalling EUR Net change in cash and cash equivalents -4 566 22 856 31 m 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 EURm Cloud Non-Cloud Total Revenue recognition +0.5 to +1.5 -0.5 to -1.5 - 0.5 to + 0.5 changes EURm Cloud Non-Cloud Total Disposals* -1 -10 -11 Disposals pro-forma effect* on costs c. EUR 5m *Assumes that disposals close at end of Q1 2018
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
APPENDIX
SUBSCRIPTION ARR GROSS ORDER INTAKE 5,0 • Subscription 4.4 4,5 annual recurring revenue gross 4,0 3.4 order intake 3,5 quarterly 2.8 2.7 3,0 EUR m 2.2 2.2 2,5 1.9 2,0 1,5 1.1 1,0 1.9 0,5 0,0 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 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
Recommend
More recommend
