THE NEXT PHASE OF GROWTH BASWARE CAPITAL MARKETS DAY LONDON, 2ND - - PowerPoint PPT Presentation

THE NEXT PHASE OF GROWTH

BASWARE CAPITAL MARKETS DAY LONDON, 2ND FEBRUARY 2016

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 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

• ffer to sell or the solicitation of an offer to buy any securities of Basware or otherwise to engage in any

investment activity.

2

BASWARE TEAM WITH YOU TODAY

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Esa Tihilä CEO Niclas Rosenlew CFO Vesa Tykkyläinen SVP Network Ad van der Poel SVP Financing Services Ilari Nurmi SVP Purchase to Pay Tuomas Marttila Head of Strategy

BASWARE OVERVIEW

Invoice automation, procurement & travel and expense management software within organizations e-invoicing solutions &

• perator between

buyers & suppliers New value added innovations: Basware Pay, Basware Discount & Basware Advance

• 2500+ large customers
• 1.2 million users
• SaaS / License
• Basware Commerce Network

connects 1 million companies in over 100 countries

• Basware Commerce Network

enabled

• Partnerships include e.g.

MasterCard, Arrowgrass, ING

NETWORK PURCHASE TO PAY FINANCING SERVICES

Founded 1985; Publicly listed 2000 (NASDAQ OMX Helsinki); Net sales of €143.4 million (2015)

Basware is the leading provider of networked purchase-to-pay solutions, spanning e-invoicing to innovative financing services in the world of commerce

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GLOBAL LEADERSHIP WITH A UNIQUELY COMPLETE OFFERING

E-invoicing Working capital

• ptimization

Purchase-to-Pay (P2P) Accounts Payable (AP) Ranked constantly as a leader by leading independent research companies Top 3 in Procurement # 1 B2B Commerce Network # 1 in Accounts Payable

5

Basware Financing Services Largest e-invoicing network

Enabling priorities and investment

Esa Tihilä, CEO

Summary and conclusions

Esa Tihilä, CEO

Extend cloud Purchase to Pay leadership

Ilari Nurmi, SVP Purchase to Pay

TODAY’S FOCUS IS ON THE NEXT PHASE OF GROWTH

6

Starting point for the next phase of growth

Esa Tihilä, CEO

Accelerate Network growth

Vesa Tykkyläinen, SVP Network

2016-2018 Financial implications and goals

Niclas Rosenlew, CFO

13:00- 14:45 15:15- 17:00

Break Cocktails

Unleash Financing Services

Ad van der Poel, SVP Financing Services

Enabling priorities and investment

Esa Tihilä, CEO

Summary and conclusions

Esa Tihilä, CEO

Extend cloud Purchase to Pay leadership

Ilari Nurmi, SVP Purchase to Pay

TODAY’S FOCUS IS ON THE NEXT PHASE OF GROWTH

7

Starting point for the next phase of growth

Esa Tihilä, CEO

Accelerate Network growth

Vesa Tykkyläinen, SVP Network

2016-2018 Financial implications and goals

Niclas Rosenlew, CFO

13:00- 14:45 15:15- 17:00

Break Cocktails

Unleash Financing Services

Ad van der Poel, SVP Financing Services

WE HAVE CREATED A SOLID FOUNDATION FOR GROWTH

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 Growing market driven by digitalization, drive for efficiency and regulation  Recognized product leadership  Established and loyal customer base with high share of recurring revenue  Over 1,000,000 organizations connected via Basware Commerce Network  Large and valuable amounts of data accumulated in the Basware Commerce Network  Streamlined, customer-centric organization with global reach, and strong presence in all key growth markets

2010 2015 SaaS and Network Maintenance, consulting and license

A GROWING CLOUD BUSINESS SUPPORTED BY A STABLE BASE

Cloud businesses growing fast Maintenance, consulting and license businesses provide a solid base

12% 88% 40% 60%

Constant growth year-on-year Positive cash flow Strong balance sheet Cloud transition has temporarily depressed group growth & margins, this is unwinding as transition completes

Note: SaaS and Network: P2P SaaS, transactions, Procserve and transaction network related partnership income.

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STRONG NET SALES GROWTH IN HIGH POTENTIAL MARKETS

Net sales by markets (Q1-Q4 2015) Growth in Net sales (2015 vs. 2014) Total Net sales: €143.4 million(1)  Net sales stable in mature markets  Strong organic growth in key markets

(1) Includes Procserve and partnership income. (2) Excludes Procserve and partnership income. (1) (1) (2)

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WE SERVE A SIGNIFICANT NUMBER OF GLOBAL CUSTOMERS

2,500+ enterprise and corporate customers across all industry verticals and public sector

Banking / Finance Transportation / Logistics Retail Manufacturing Food / Beverage Professional Services Medical / Pharma / Biotech Chemicals Energy Public Sector Construction Services

+ more than 1,000,000 organizations connected to Basware Commerce Network

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MARKET AND COMPETITIVE SITUATION ALLOWS ACCELERATING GROWTH

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Extend cloud Purchase to Pay leadership Accelerate Network growth Unleash Financing Services

 Penetration still low but accelerating  Network is the foundation for value added services  Fragmented standards, Basware the largest network, supporting all  Growth picking up in key large markets  Demand moving rapidly to cloud solutions  Basware is a recognized market leader  Alternative financing services attracting growing investment  Basware an early leader, leveraging network data  First solutions launched NETWORK PURCHASE TO PAY FINANCING SERVICES

KEY 2016-2018 PRIORITIES FOR TAKING THE NEXT STEP

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Extend cloud Purchase to Pay leadership Accelerate Network growth Unleash Financing Services

• 1. Accelerating all three businesses:
• 2. Supported and enabled by:

Further shortening of delivery times Investing in demand generation and sales Scalable company infrastructure

Enabling priorities and investment

Esa Tihilä, CEO

Summary and conclusions

Esa Tihilä, CEO

Extend cloud Purchase to Pay leadership

Ilari Nurmi, SVP Purchase to Pay

TODAY’S FOCUS IS ON THE NEXT PHASE OF GROWTH

14

Starting point for the next phase of growth

Esa Tihilä, CEO

Accelerate Network growth

Vesa Tykkyläinen, SVP Network

2016-2018 Financial implications and goals

Niclas Rosenlew, CFO

13:00- 14:45 15:15- 17:00

Break Cocktails

Unleash Financing Services

Ad van der Poel, SVP Financing Services

BASWARE COMMERCE NETWORK IS AT THE HEART OF MAJOR TRENDS

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• 1. Digitalization accelerating and affects all sizes of
• rganizations
• 2. Regulation in the EU and the U.S.

pushing e-invoicing penetration

• 3. True alternative finance platforms in short supply

BASWARE COMMERCE NETWORK: ACCESS ALL THROUGH SINGLE CONNECTION

BASWARE COMMERCE NETWORK

Point to point connections True network Service provider 1 Service provider 2 Service provider 3

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THE LARGEST OPEN NETWORK

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The world’s largest open commerce network - connecting buyers and suppliers, improving relationships and ultimately enabling the flow of commerce

>1 MILLION ACTIVE BUYERS & SUPPLIERS

A NETWORK OF USERS IN >100 COUNTRIES CONSOLIDATED E-INVOICING & E-ORDERING

SUPPORTS 60+ INVOICE FORMATS VAT COMPLIANT WITH DIGITAL SIGNATURES 200+ E-INVOICING PROVIDERS CONNECTED

BASWARE COMMERCE NETWORK

NETWORK VOLUME & REVENUE SOLID TRACK RECORD

Transaction volume

Transaction volume (in millions)

(1) Includes start-up fees

Transaction revenue(1)

Transaction revenue (€ in millions) Q4/2015 Annualized transactions

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NETWORK 2016-2018 PRIORITIES AND GOALS

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 Accelerate transaction sales

• Growth in Basware P2P customers
• Transactions-only opportunities (including targeted

sending sales)

• New partnerships (e.g. cloud ERP vendors, other networks)

 Accelerate go-lives and ramp-ups

• Delivery tools and processes
• Easier and faster connectivity (e.g. business directory,

vendor manager)

 Focused platform development

• Leading portal functionality co-developed with customers
• Interfaces (e.g. API connectivity, PDF)
• Network data-based value added services

Key 2018 goal: 250 million transactions processed

Enabling priorities and investment

Esa Tihilä, CEO

Summary and conclusions

Esa Tihilä, CEO

Extend cloud Purchase to Pay leadership

Ilari Nurmi, SVP Purchase to Pay

TODAY’S FOCUS IS ON THE NEXT PHASE OF GROWTH

20

Starting point for the next phase of growth

Esa Tihilä, CEO

Accelerate Network growth

Vesa Tykkyläinen, SVP Network

2016-2018 Financial implications and goals

Niclas Rosenlew, CFO

13:00- 14:45 15:15- 17:00

Break Cocktails

Unleash Financing Services

Ad van der Poel, SVP Financing Services

INTRODUCTION TO BASWARE PURCHASE TO PAY

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 Modern cloud-based architecture  Powered by Basware Commerce Network  Accounts payable automation  Procurement  Travel and expense management  Analytics  Leadership recognized by leading independent research companies

Best-in-class Networked Purchase to pay

WORLD-LEADING INTEGRATED PURCHASE-TO-PAY SUITE

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PROCUREMENT

• Easy & compliant

shopping experience

• Supplier

collaboration in the network

• Contract lifecycle

management TRAVEL & EXPENSE MANAGEMENT ACCOUNTS PAYABLE AUTOMATION ANALYTICS

• Corporate-wide

financial visibility

• Insights into P2P

process and spend

• Self-reliant financial

decision-making

• Paperless AP from

day 1

• Automated matching
• Intelligent invoice

processing

• Exception handling
• Capturing receipts as

the expenses occur

• Travel costs savings

with early bookings

• Expense claims when

mostly convenient

WE BUILD ON YEARS OF EXPERIENCE AND A SOLID CUSTOMER BASE

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 The leader in P2P with 20 years of expertise  2,500+ P2P customers globally  Significant R&D investment  Business and process consulting services Select recent customer wins:

BASWARE P2P PAYS BACK IN NO TIME

“We systematically go after achieving early-pay discounts. In the past, we captured about 50% of all early-pay discounts that were available to us; with Basware, we were able to push it to 95%.”

Manager, finance at a large manufacturing company

“We can now finally see — on a nationwide level — which actual suppliers we use and how much we use

• them. We can use these insights to

better negotiate with existing suppliers and even contract with suppliers in areas where we previously didn’t have any arrangements.”

Development manager at a large property management company

A COMMISSIONED STUDY CONDUCTED BY FORRESTER CONSULTING ON BEHALF OF BASWARE:

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CLOUD DRIVES P2P REVENUE GROWTH; DEAL MIX SUGGESTS ACCELERATION

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SaaS revenue ~20% of total…

10 20 30 40 50 60 70 2015 Maintenance License SaaS

>80% total recurring revenue

…with recent deal mix suggesting rapid growth

P2P revenue (€M)

0 % 10 % 20 % 30 % 40 % 50 % 60 % 70 % 80 % 90 % 100 % Q4/2013 Q4/2014 Q4/2015 License SaaS

Direct P2P deals (#)

~100% YoY growth in # of SaaS deals Q4/’14-Q4/’15

PURCHASE TO PAY 2016-2018 PRIORITIES AND GOALS

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 Accelerate sales

• Strengthen go to market in key markets
• Develop partner channel (especially BPOs)

 Cloud transformation

• Continue driving new sales to SaaS
• Transform existing on-premise customers to cloud

 Faster go-lives and roll-outs

• Improve delivery tools and processes

 Continued innovation

• Continue leading edge innovations (e.g. Analytics, Mobility)
• Leverage Network and Financing services

Key 2018 goal: >30% SaaS revenue CAGR (2015-2018)

Enabling priorities and investment

Esa Tihilä, CEO

Summary and conclusions

Esa Tihilä, CEO

Extend cloud Purchase to Pay leadership

Ilari Nurmi, SVP Purchase to Pay

TODAY’S FOCUS IS ON THE NEXT PHASE OF GROWTH

27

Starting point for the next phase of growth

Esa Tihilä, CEO

Accelerate Network growth

Vesa Tykkyläinen, SVP Network

2016-2018 Financial implications and goals

Niclas Rosenlew, CFO

13:00- 14:45 15:15- 17:00

Break Cocktails

Unleash Financing Services

Ad van der Poel, SVP Financing Services

WHY BASWARE FINANCING SERVICES

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Traditional focus leaves money on the table

Missed opportunity by focusing on efficiency only

Total potential value Efficiency Working capital Time and Focus of AP Programs

Both parties want to manage risk Both parties use tools to

• ptimize working capital

Suppliers want to reduce payment time Buyers want to extend payment time The AP/AR dilemma:

Reason is a fundamental dilemma

FINANCING SERVICES OVERVIEW

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Financing Services completes networked P2P… …for unlocking more value in the supply chain… …by taking control of the financial supply chain… …leveraging four core components “69% of companies surveyed admitted to using late payments as a strategic lever to hold on to cash reserves” ”-2%/10, net 30” early payment terms equals 36% Return on Capital for the buyer 80% of suppliers would offer a discount to be paid early

Timing Payment Funding Discount

Networked P2P:  Efficiency gains, transparency and control  Platform to host transactions and related data Financing services:  Working capital gains  Dynamic cash position management

BASWARE FINANCING SERVICES PRODUCT VISION

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Basware Commerce Network Timing Payment Funding B2B ePayments Dynamic Discounting Multibank Payment Gateway including FX Discount Supply Chain Finance DPO - DSO Optimization Advance Payment Alternative funding sources

FIRST PARTS OF OUR SUITE OF SERVICES LAUNCHED AND AVAILABLE FOR 2016

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SUPPLIER DRIVEN BUYER DRIVEN

Basware Discount Basware Pay Basware Advance

BASWARE COMMERCE NETWORK

 A working capital platform offering clients payable and receivable financing  Built on top of Basware Commerce Network, utilizing data flow between companies  In partnership with financial institutions  Current market entry offerings:

Basware Pay: in partnership with MasterCard Basware Discount: a dynamic discounting solution Basware Advance: in partnership with ArrowGrass

FIT FOR PURPOSE GO TO MARKET PLAN BEING IMPLEMENTED

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Phased geographic expansion Phase I: Launch (completed)  Pay & Discount  Existing direct customers in North America and Western Europe Phase II: Growth (2016-2017)  Pay, Discount, Finance & Advance  Geographic scope expanded, new customers targeted Phase III: Maturity (2018-)  Further geographic expansion  Offering extended with new innovations Consultative selling approach  Starting point: Understanding the client’s approach to working capital and identifying the right improvement levers  Value creation potential uncovered through spend analysis performed by Basware

FINANCING SERVICES 2016-2018 PRIORITIES AND GOALS

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 Invest into accelerating working capital platform development

• Maturing existing products and introducing Finance, Payment

Gateway and FX

 Expand dedicated Financing Services sales channels

• Direct dedicated sales force
• Leveraging partnerships for referrals and revenue
• Marketing and positioning in the treasury and cash

management space

 Grow delivery and support in line with sales growth  Continue forming partnerships

Key 2018 goal: >10% of Basware net sales (with significant upside potential not included in estimates)

Enabling priorities and investment

Esa Tihilä, CEO

Summary and conclusions

Esa Tihilä, CEO

Extend cloud Purchase to Pay leadership

Ilari Nurmi, SVP Purchase to Pay

TODAY’S FOCUS IS ON THE NEXT PHASE OF GROWTH

34

Starting point for the next phase of growth

Esa Tihilä, CEO

Accelerate Network growth

Vesa Tykkyläinen, SVP Network

2016-2018 Financial implications and goals

Niclas Rosenlew, CFO

13:00- 14:45 15:15- 17:00

Break Cocktails

Unleash Financing Services

Ad van der Poel, SVP Financing Services

KEY COMPANY WIDE GROWTH ENABLERS

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• Invest in sales and marketing to scale lead generation and sales up in

line with market growth opportunity present in all markets

• Double sales force by 2018 – focusing on key large markets: the US,

UK and Germany

• Continue to optimize production to improve scalability of production

platforms and drive down cost of sales

• Increase use of digital tools and services to selectively automate

demand generation and sales activities

• Accelerate go-live and ramp-up times across all services to enable

faster recurring revenue ramp-up from new deals

• Standardize and rationalize delivery work to enable shorter projects at

lower cost, leveraging off/near-shore and self service

Invest in demand generation and sales Scalable company infrastructure Shorten delivery times Extend cloud Purchase to Pay leadership Accelerate Network growth Unleash Financing Services

SIGNIFICANT DEMAND GENERATION AND SALES SCALE-UP DURING 2016-2018

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Example: Sales headcount increase

2015 2018

Go to market investment highlights  Focus on reaching critical mass in the US, UK and Germany  Grow our partner sales through business process outsourcing players and other cloud ERP/accounting service providers  Increase dedicated small and medium sized business sales

DELIVERY TIME A KEY LEVER TO ACCELERATE CLOUD REVENUE GROWTH

37

Sales force increase Order intake ramp-up Sales FTE/revenue

Incremental recurring revenue

Sales reps’ ramp-up Delivery lead time

Sales force increase conversion to incremental recurring revenue

Time

ILLUSTRATIVE Delivery lead time partly mitigated with starting partial billing at contract signing

SAAS DELIVERY TIMES REDUCING, DRIVEN BY VARIOUS FOCUSED EFFORTS

2014 2015

Median P2P SaaS delivery time (indexed)

Note: Median delivery time from project launch to go-live in calendar days, indexed to 2014=100

38

 Rapid Deployment Methodology purpose built for all sizes of customers  Central Delivery Units (off/near-shore) to ensure cost efficient and scalable capacity increase to speed up delivery time  Further development of features and functions that shorten delivery time  Continuous improvement of migration tools to accelerate on-premise to cloud transformation  Network innovations to limit implementation project needs

WE HAVE ALIGNED OUR STRUCTURE, INCENTIVES AND VALUES TO THE STRATEGY

39

• Structure aligned to customer

needs

 Customer facing activities global, segment drive  Business Areas with direct

• wnership of product roadmap
• Incentive model geared to drive

growth

 Whole organization incentiviced to grow sales, deliver faster, delight the customer and ensure quality

• Basware Values refined and

implemented

Enabling priorities and investment

Esa Tihilä, CEO

Summary and conclusions

Esa Tihilä, CEO

Extend cloud Purchase to Pay leadership

Ilari Nurmi, SVP Purchase to Pay

TODAY’S FOCUS IS ON THE NEXT PHASE OF GROWTH

40

Starting point for the next phase of growth

Esa Tihilä, CEO

Accelerate Network growth

Vesa Tykkyläinen, SVP Network

2016-2018 Financial implications and goals

Niclas Rosenlew, CFO

13:00- 14:45 15:15- 17:00

Break Cocktails

Unleash Financing Services

Ad van der Poel, SVP Financing Services

0% 10% 20% 30% 40% 50% 60% 70% 80% 20 40 60 80 100 120 140 160 2010 2011 2012 2013 2014 2015 Maintenance, license and consulting revenue Cloud revenue Cloud % of total net sales % Recurring revenue

SMOOTH TRACK RECORD OF TRANSITIONING TO CLOUD

Net sales by type (€M)

Alusta P2P SaaS Basware Commerce Network Basware Financing Services

Note: Cloud revenue includes SaaS, transaction, Procserve and other Network related revenue

41

20 40 60 80 100 120 140 160 2010 2011 2012 2013 2014 2015

TRANSACTIONS, SAAS KEY CONTRIBUTORS TO GROWING CLOUD REVENUE

Cloud businesses drive growth

Net Sales by type (€M, 2010 – 2015)

Maintenance, license and consulting provide a solid base

Other Network related Transactions SaaS Consulting Licenses Maintenance

Note: Other Network related includes Procserve and partnership income.

42

BOOKINGS DRIVE FUTURE TOP LINE; MINIMAL CHURN PROVIDING PREDICTABILITY

Recurring revenue bookings(1) soaring Revenue churn(2) at a good level

(1) Recurring revenue bookings based on first years sales quota value

• f new deals

(2) Revenue churn reflects rolling 4 quarter revenue of contracts terminated within the period, as share of total equivalent period revenue

0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 2015 vs. 2014 2015/Q4 vs. 2014/Q4 % YoY growth

43

2015 revenue churn

< 5%

20 40 60 80 100 120 2012 2013 2014 2015

Axis Title

P2P SAAS DEMAND RAPIDLY GROWING, ENABLING SAAS REVENUE ACCELERATION

Growth in number of P2P SaaS customers

Alusta SaaS customers (indexed)

# of deals 2012-2015 (CAGR): 108% # of deals (Q4 2015 vs. Q4 2014): 200%

44

CLOUD REVENUES ON SOLID GROWTH TRACK…

Transaction revenue: strong growth (€M)

• Acceleration of P2P sales and e-

invoicing penetration

• Dedicated focus to small and medium

sized businesses

• Open network through

interoperability partnerships

• Turning point in SaaS growth

reached

• Seeing significant momentum
• Significant growth expected due to:

 New sales almost entirely SaaS  Expanding sales force  Change in billing model

45

Financing Services revenue

2016-18 CAGR:

>30%

2018:

250M

transactions

SaaS revenue: turning point reached (€M)

2018 :

>10% of Basware net sales

(with significant upside potential not included in estimates)

• Financing Services

unleashed

…WHILE THE BASE SUPPORTS THE CLOUD STORY

Maintenace stable; to erode gradually (€M)

• Very stable maintenance

business with expected marginal erosion through transition to SaaS License business shrinking (€M) Consulting stable with upside (€M)

• Conversion to SaaS

proceeding according to the strategy

• License net sales reduced

to mainly add-on sales

• Consulting growth driven

by the accelerating number of projects and new value consulting services balancing shrinking billable days per delivery

46

2016-18 CAGR:

• 5%

2016-18 CAGR:

• 25%

2016-18 CAGR: 0-2%

2010 2015 2018 target Maintenance, license and consulting Cloud revenue

2018 GOAL: €220-280M NET SALES, 2/3 FROM CLOUD BUSINESSES

Cloud based businesses growing fast:  Turning point in business model change reached  Constant growth year-on-year  Stacking revenues Maintenance, consulting and license businesses provide a solid base  Stable and predictable  Gradually declining

12% 88% 40% 60% 1/3 2/3

Note: Cloud Net sales includes SaaS, transaction, Procserve and other Network related Net sales

CAGR (’15-’18) ~40%

• 5-0%

47 €103.1M €143.6M €220-280M

Recurring revenue goal ~80%

Net sales: >50% CAGR

2015 2016 2017 2018 Net sales (indexed)

U.S. EXAMPLE: GOAL TO MULTIPLY BUSINESS; 2015-18 NET SALES CAGR >50%

48

2015 2016 2017 2018 P2P deals (indexed) 2015 2016 2017 2018 Transactions (indexed)

P2P deals: ~6x Transactions: ~10x Headcount ~2,5x

2015 2016 2017 2018 Personnel (headcount)

Organic plan complemented with continuous M&A target screening

~€20M OPEX INCREASE IN 2016 TO IMPLEMENT NECESSARY ENABLERS

• ~€20M year-on-year increase in operating expense:

 Sales  Marketing  R&D, especially Financing Services  Focus on US, UK and Germany

• Investment funded with company cash flows

49

EBITDA MARGIN TEMPORARILY IMPACTED; UNDERLYING PROFITABILITY IMPROVING

2015 2016 2017 2018

Basware total

EBITDA

8%

Transactions

Gross Margin

50-60%

SaaS

Gross Margin

60-70%

Financing Services

Gross Margin

N/A 80-90%

Consulting

Gross Margin

10-20%

License

Gross Margin

~90%

Maintenance

Gross Margin

>90%

50

SELECTIVE M&A TO SUPPORT OUR GROWTH TRACK

We are uniquely positioned to leverage M&A for our strategy execution

 Extend Basware Commerce Network  Consolidate the market

Focus on attractive “key markets”

 US, UK and Germany

Internal capability

 History of successful, disciplined M&A  Financial flexibility

51

2018 STRATEGIC GOALS

52

Priority

Top line & transaction growth

Net sales

€220 to €280 million

• Delivering growth is our #1

priority

• Continuing focus on

growing cloud businesses and share of recurring revenue

• Opex increase to implement

necessary growth enablers

• Improving profitability over

time

• Select acquisitions to

accelerate growth

Cloud sales

2/3 of total revenue from cloud businesses

Recurring revenue

~80% of total revenues

Transactions

250 million transactions processed in the network annually

P2P SaaS CAGR Financing Services

>30% P2P SaaS revenue CAGR over 2016-2018 >10% of Basware net sales (significant upside not included in estimate)

Enabling priorities and investment

Esa Tihilä, CEO

Summary and conclusions

Esa Tihilä, CEO

Extend cloud Purchase to Pay leadership

Ilari Nurmi, SVP Purchase to Pay

TODAY’S FOCUS IS ON THE NEXT PHASE OF GROWTH

53

Starting point for the next phase of growth

Esa Tihilä, CEO

Accelerate Network growth

Vesa Tykkyläinen, SVP Network

2016-2018 Financial implications and goals

Niclas Rosenlew, CFO

13:00- 14:45 15:15- 17:00

Break Cocktails

Unleash Financing Services

Ad van der Poel, SVP Financing Services

BASWARE: KEY DIFFERENTIATORS

Networked Purchase-to-Pay Over 2,500 Networked Purchase-to-Pay customers Network Leadership Global Reach with Open Commerce Network Financing Innovation Just in Time Financing Services

54

FOR INVESTORS www.basware.com/investors www.basware.com/annualreport BASWARE www.basware.com www.twitter.com/basware www.facebook.com/BaswareCorporation www.linkedin.com/company/basware FINANCING SERVICES www.basware.com/financing-services RESEARCH REPORTS www.basware.com/knowledge-center

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