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I N T E R I M R E P O R TJanuary–March 2021
Q 1 / 2 0 2 1
2
I M P O R T A N T N O T I C E
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 offer to sell or thesolicitation of an offer to buy any securities of Basware or otherwise to engage in any investment activity.
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K E Y T A K E A W A Y S
Cash positioncontinued to develop positively
Net sales in line with expectations,positivedevelopment inprofitability
Order intake impacted by continueduncertainty in the businessenvironment
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C U S T O M E R S U C C E S S I N Q 1 / 2 0 2 1
Geographies where Basware supports customers
26%39%
35%
Cloud order intake EUR 2.9 million
% Cloud order intake by region
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B A S W A R E I N L E A D E R C A T E G O R Y I N P R O C U R E T O P A YBasware's strengths according to IDC MarketScape 2021:
Link to study: IDC MarketScape: Worldwide SaaS and Cloud-Enabled Procure-to-Pay Applications 2021 Vendor Assessment
150+ million transactions in 2020
€1 trillion spend managed in 2020 175+ countries 2+ million
buyers and suppliers
1. Basware's network
2. Number of features leveraging machine learning
3. Technology enabling 100% visibility and transparency around all spend
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P A R T N E R S T R A T E G Y
• PwC Germany, a leading advisory and consultancy firm, was added to Basware's partner ecosystem
• Basware cloud solutions now used as technology enabler in PWC Germany’s finance transformation programs
• Joint projects started in Germany and France
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P A R T N E R A N D C O - E X I S T S T R A T E G Y
• Partner lead deal together with one of our global competitors
• Joint value proposition and proposal
• Advisory and implementation Partner
+ Basware Networked Accounts Payable
+ Sourcing & Procurement competitor
• First contract ever with this type of go to market approach
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I N N O V A T I O N H I G H L I G H T S
• Integrated and improved Shopping Experience in Basware Purchase ready for launch
• E-Invoice Receiving Solution Compliant with China Fapiao Regulations allowing customers to quickly and easily detect non-compliant invoices
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E - I N V O I C I N G M A N D A T E S & C L E A R A N C E
Italy B2G
Spain B2G
Turkey clearance
LATAM e-invoicing Mexico, Brazil, Ecuador, Peru, Chile
and Argentina
Italy clearance
PEPPOL Singapore
PEPPOL Australia & NZ
Uruguay e-invoicing
Portugal B2G
India clearance
Germany B2G PEPPOL
China FAPIAO
France clearance
Poland clearance
+++2016-2017
2018-2019 2022-2023
2020-2021
F I N A N C I A L R E V I E W
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F I N A N C I A L P E R F O R M A N C E O V E R V I E W
Order intake impacted by the business environment
Net sales on previous year's level
Positive development in profitability
Robust cash position
€37.7MNet sales
€1.4MOperating profit
€43.1MCash and cash equivalents
€2.9MOrder intake
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C L O U D O R D E R I N T A K E
EUR
mill
ion
Annual recurring revenue gross order intake is calculated by summing the total order intake in the period expressed as an annual contract value.
▪ Overall, performance impacted by continued uncertainty in the business environment leading to longer sales cycles
▪ Expansion sales to existing customers approximately in line with prior year
▪ Growth in Benelux, Sweden and North America
▪ Positive contribution from Partners4.9 6.4 5.5 6.9 3.6 6.1 3.6 5.9 2.9
0.0
2.0
4.0
6.0
8.0
Q1/19 Q2/19 Q3/19 Q4/19 Q1/20Q2/20Q3/20Q4/20 Q1/21
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N E T S A L E S
▪ SaaS growth approximately in line with Q4 ’20
▪ Transaction services growth continued to be impacted by change in the transaction volume mix
▪ Strong growth in Consulting revenues
▪ Acceletarated Maintenance revenue decline driven by 31.12.2020 end of life of certain on-premise products
EUR thousand 1-3/2021
1-3/2020
Change, % Change, %1
SaaS 15,612 14,191 10.0 11.8
Transaction services 12,237 12,389 -1.2 -0.4
Other cloud revenue 1,195 1,195 0.0 1.7
Cloud Revenue total 29,043 27,774 4.6 6.0
Maintenance 1,382 4,089 -66.2 -66.1
License sales 64 79 -18.8 -26.2
Consulting services 7,185 6,496 10.6 12.2
Other non-cloud revenue 67 -193
Non-Cloud Revenue total 8,698 10,471 -16.9 -15.9
Total 37,742 38,245 -1.3 0.0
1On an organic basis at constant currencies
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EUR thousand 1-3/2021
1-3/2020
Change, %
Net sales 37,742 38,245 -1.3
Cost of sales -16,415 -17,473 -6.1
Gross profit 21,326 20,772 2.7
S&M -9,242 -10,767 -14.2
R&D -6,830 -6,176 10.6
G&A -3,761 -3,575 5.2
Total operating expenses -19,833 -20,518 -3.3
Other operating income and expenses -113 -153 -26.0
Operating profit (EBIT) 1,380 100
Adjustments 53 -59
Depreciation and amortization 3,845 3,970 -3.1
Adjusted EBITDA 5,278 4,011 31.6
P R O F I T A B I L I T Y
▪ Overall, continued improvements in profitability driven by systematic strategy execution
▪ Gross margin performance▪ Gross margin 57%, +2Pts YoY▪ Cloud gross margin 69%, +2Pts YoY
▪ Sales & Marketing expense reduction mainly driven by less spending related to travel and physical events
▪ Research & Development expense increase mainly driven by lower capitalization of Development expenses
15
EUR thousand 1-3/2021
1-3/2020
Cash flows from operating activities 6,358 6,497
Net change in cash and cash equivalents 2,430 1,250
Cash and cash equivalents 43,080 32,558
Gross financial debt 69,020 62,264
Net financial debt 25,940 29,706
C A S H F L O W A N D B A L A N C E S H E E T
▪ Overall, continued robust cash flow generation
▪ Receivables management progressing well
▪ EUR 0.5 million of payment deferrals remaining to be repaid by the end of 2022
O U T L O O K
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S A L E S E X E C U T I O N• Continued cautiousness particularly from
larger enterprises• Longer sales cycles and opportunities moving
later into the year• Increased focus:
• Partner strategy• Network only business• Pipeline growth
• Sales excellence
• CRO Paul Taylor to lead Basware UKI and step down from Basware’s Executive Team
• Search process for a new CRO started • Denmark, Sweden and Norway merged into
one Scandinavian region under new common leadership
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O U T L O O K F O R 2 0 2 1
Basware expects continued uncertainty in the business environment in the first half of 2021 and keeps the guidance for the full year 2021 unchanged:
EBIT approximately at the same level or better than theprevious year
Modest positive Net sales growth 1)
1) on an organic constant currency basis.
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K E Y T A K E A W A Y S
Cash positioncontinued to develop positively
Net sales in line with expectations,positivedevelopment inprofitability
Order intake impacted by continueduncertainty in the businessenvironment
Q & A
A P P E N D I X
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F I N A N C I A L C A L E N D A R
15 Jul 2021Half-Year Financial Report forJanuary 1 – June 30, 2021
19 Oct 2021Interim Report forJanuary 1 – September 30, 2021
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