INVESTOR
PRESENTATION
Q1 2017
Vesa Tykkyläinen, CEO
Niclas Rosenlew, CFO
April 21, 2017
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 forwardlooking 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
WE DELIVER COMPELLING VALUE
Analytics leadership
Procurement strength
Seamless user experience
Leader in Gartner’s
Magic Quadrant for
Procure-to-Pay Suites
CUSTOMER SUCCESS
EXAMPLES OF GLOBAL CUSTOMER WINS ACROSS INDUSTRIES IN Q1 2017
OPERATIONAL IMPROVEMENTS
SALES
PERFORMANCE
New US and Germany Sales Heads
DATA
OPPORTUNITY
Network Management
AGILITY
Productivity Programme
MANAGEMENT ALIGNED WITH SHAREHOLDERS
2% OF
BASWARE’S
SHARE
CAPITAL
Matching Share Plan
Performance Share Plan
Restricted Share Plan
Q1 2017 STRONG CLOUD MOMENTUM
STRATEGIC
PRIORITY:
CLOUD REVENUE
GROWTH
Cloud revenues +29%
Subscription ARR
Order Intake +171%
March record month for
Basware Network volumes
FINANCIAL
REVIEW
STRONG SUBSCRIPTION ORDER INTAKE
2.5
2.0
EUR m
• Investments in
sales and
marketing
delivered strong
order intake
• Time lag to
visibility in
revenues
3.0
1.5
1.0
0.5
0.0
Q1 2016
Q1 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. Per transaction cloud 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.
CLOUD REVENUE AT RECORD LEVELS
20
18
More Than Half of
Total Revenues Now
from Cloud
16
14
EUR m
12
10
8
50%
6
4
2
0
Q1 2016
SaaS
Transaction Services
Q1 2017
Other Cloud Revenues
Cloud
Non Cloud
Q1 2017 NET SALES PROGRESSION
Cloud
Revenue
Net sales by revenue type
(EUR thousand)
Non-Cloud
Revenue
• SaaS growth
continued to be
extremely strong,
up 108%
• Significant cloud
potential in
existing
maintenance
customer base
being addressed
1-3 2017
1-3 2016 Change
SaaS
7 417
3 563
108%
Transaction services
9 637
8 430
14%
Other cloud revenue
1 442
2 365
-39%
Cloud Revenue total
18 497
14 358
29%
Maintenance
9 849
10 132
-3%
License sales
900
1 501
-40%
7 482
8 117
-8%
Other non-cloud revenue
73
17
326%
Non-Cloud Revenue total
18 304
19 767
-7%
Group Total
36 801
34 125
8%
Consulting services
Q1 2017 PROFITABILITY
• Impact of Q4
2016
productivity
measures
expected in
H2 2017
(EUR thousand)
1-3 2017
1-3 2016
Change
36 801
34 125
8%
-3 734
-3 611
3%
-26 459
-23 848
11%
Other Operating Expenses
-9 108
-7 533
21%
Total costs and expenses excluding
depreciation
-39 301
-34 992
12%
-2 500
-867
188%
898
350
157%
-1 602
-517
210%
Net Sales
Material and Services
Personnel Expenses
Reported EBITDA
Adjustments to EBITDA
Adjusted EBITDA
Q1 2017 R&D INVESTMENTS
• Impact of Q4
2016
productivity
measures
expected in
H2 2017
(EUR thousand)
1-3 2017
1-3 2016
Change
R&D expenses excluding depreciation
3 282
2 922
12%
Capitalised R&D
2 854
2 265
26%
Total R&D investments
6 136
5 187
18%
17%
15%
Total R&D investments as % of sales
Q1 2017 CASH FLOW AND BALANCE SHEET
• Strong liquidity
position with cash and
undrawn bank
facilities totalling EUR
42 m
• Basware may consider
additional financing to
to support future
cloud growth
(EUR thousand)
1-3 2017
1-3 2016
7 471
12 234
Net Change in cash and cash equivalents
-3 464
21 810
Cash and cash equivalents
32 281
54 654**
Total available liquidity*
42 281
64 654
Cash flows from operating activities
* Includes undrawn bank facilities and short term deposits
** EUR 15.3m of the Q1 2016 cash position related to borrowing for the Verian acquisition drawn down at the end of the quarter prior to
actual closing of the acquisition on 1 April 2016
2017 FULL YEAR OUTLOOK
Basware’s number one strategic
priority is cloud revenue growth.
FOR 2017, BASWARE EXPECTS:
Cloud revenues
to grow by
approximately
20 percent
Adjusted EBITDA
at breakeven