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UNLOCKING VALUEIN THE WORLD OF CONNECTED COMMERCE
MORGAN STANLEY EUROPEAN TECHNOLOGY,
MEDIA & TELECOM CONFERENCE 2015
NOVEMBER 11, 2015
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
offer to sell or the solicitation of an offer to buy any securities of Basware or otherwise to engage in any
investment activity.
GLOBAL LEADER IN E-INVOICING & PURCHASE TO PAY (P2P)
Founded 1985; Publicly listed 2000
HQ in Finland, offices globally
Net sales of €138.9 million (LTM as of Q3 2015)
Invoice automation, procurement
& TEM software
within organizations
e-invoicing solutions &
operator between
buyers & suppliers
New value added innovations:
Basware Pay, Basware Discount
& Basware Advance
• 2500+ large customers
• 1.2 million users
• License / SaaS
• Basware Commerce Network
connects 1 million companies
in over 100 countries
• Basware Commerce Network
enabled
• Partnerships include e.g.
MasterCard, Arrowgrass, ING
NETWORK SERVICES SOLUTION SERVICES FINANCING SERVICES
Ke
y f
ac
tsO
ur
bu
sin
es
s
Basware is the leading provider of networked purchase-to-pay solutions,
spanning e-invoicing to innovative financing services in the world of commerce
Note: 2015 LTM = 4Q/2014-3Q/2015
Basware Commerce Network 1,000,000 organizations
> 100 countries
€500 billion value of transactions p.a.
100 million transactions
RECOGNIZED GLOBAL LEADERSHIP
Working capital optimization
Purchase-to-Pay (P2P)
Automated Accounts Payable (AP)
Ranked constantly as a leader
by leading independent
research companies
Top 3
in P2P# 1
B2B Commerce Network
# 1 in AP &
e-invoicing
OUR OPPORTUNITY TO UNLOCKThe world of commerce today is inefficient – things take too long, things cost too much – resulting in
an ocean of untapped economic value.
$16
5-10 days
20%
13.5 days
Potential savings per
invoice processed using
AP automation and
e-invoicing
Average payment time
from invoice received
Can be saved through invoice automation
Potential savings
due to improved
compliance using
e-procurement
Average time to process
an invoice
55 days
$2 trillionPotential annual saving that
AP Automation, e-invoicing and
e-procurement can provide to
the world of commerce
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:
Networked Purchase-to-Pay Basware Commerce Network Financing Services
THREE CORE COMPONENTS TO FREE UP CASH
SUCCESSFUL TRANSITION FROM LICENSE TO CLOUD
2010 2015 LTM
SaaS and Network
License and consulting
TRANSITION TO FAST GROWING CLOUD-BASED SERVICES
Cloud businesses have
grown fast
License and consulting
businesses provide a solid
base
12%
88%
38%
62%
Constant growth year-on-year
Positive cash flow
Strong balance sheet
Cloud transition temporarily
depresses group growth & EBIT
margins, this will unwind as transition
completes
Note: License and consulting: license sales and related maintenance as well as all consulting services.SaaS and Network: P2P SaaS, transactions, Procserve
and transaction network related partnership income. 2015 LTM = 4Q/2014-3Q/2015.
Maintenance
License
Consulting
SaaS
Transactions
Other Network related
0
20
40
60
80
100
120
140
160
2010 2011 2012 2013 2014 2015 LTM
ACCELERATING GROWTH ONSTABLE & CASH GENERATIVE BASE
Revenue by type (2010 – 2015 LTM)
Revenue (€
in m
illio
ns)
Transaction Network:
• Accelerated adoption of e-invoicing
in Europe and US
• Income per transaction
• Basis for value added Financing
Services
Purchase-to-Pay:
• Increasing demand for the best in
class, cloud-based P2P solutions
• License sales conversion to SaaS
reaching a turning point
• Revenue recognition slowing near-
term revenue
• Maintenance & consulting provide
a stable revenue base
Note: Other Network related includes Procserve and network related partnership income. 2015 LTM = 4Q/2014-3Q/2015.
0
5
10
15
20
25
30
35
2010 2011 2012 2013 2014 2015 LTM0
10
20
30
40
50
60
70
80
90
100
2010 2011 2012 2013 2014 2015LTM
NETWORK VOLUME & REVENUESOLID TRACK RECORDTransaction volume
Tra
nsactio
n v
olu
me (
in m
illio
ns)
Note: 2015 LTM = 4Q/2014-3Q/2015
(1) Includes start-up fees
Transaction revenue(1)
Tra
nsactio
n r
evenue (€
in m
illio
ns)
Annualized
transactions
0
2
4
6
8
10
12
14
2010 2011 2012 2013 2014 2015LTM
SAAS OUTWEIGHING LICENSE DECLINE
SaaS Maintenance
License Consulting
0
10
20
30
40
50
60
2010 2011 2012 2013 2014 2015LTM
0
10
20
30
40
50
60
2010 2011 2012 2013 2014 2015LTM
+16%
-13%
+5%
Note: SaaS includes ASP revenues and SaaS start-up fees. Consulting includes Network Services and Solution Services related consulting.
The %s reflect CAGR 2010-2015 LTM. 2015 LTM = 4Q/2014-3Q/2015.
SaaS growth outweighing
license decline; SaaS
creates greater life time
value as the stacking
revenues accrue.
Conversion to SaaS
proceeding according to the
strategy. License models
generate significantly more
revenue & profits upfront.
Very stable business
which will gradually
erode with transition to
the SaaS model.
Limited local SaaS New global SaaS
platform
Revenue (€
m)
Revenue (€
m)
Revenue (€
m)
Revenue (€
m)
0
10
20
30
40
50
60
2010 2011 2012 2013 2014 2015LTM
Consulting will evolve
with the business;
stable profile.
0%
ALUSTAENABLING OUR SOLUTIONS
Smart
Mobile, analytics &
collaboration tools
for insight and
productivity
Intuitive Open
Simplicity,
familiarity and
ease-of-use driving
user adoption
ERP agnostic, easy
connectivity and
onboarding
accelerating
participation
Basware’s purchase-to-pay (P2P) solutions are powered by Alusta,
the unified cloud-based platform
Flexible
Solutions &
packages for all
company sizes
0
10
20
30
40
50
60
70
80
90
2012 2013 2014 2015
Axis
Title
PURCHASE TO PAY (P2P) SAASDEMAND ACCELERATING
Growth in number of P2P SaaS customers
2015 Q3
Alu
sta
SaaS
cu
sto
mers
(in
dexed
)
# of deals 2012-2015 LTM (CAGR): 83%
# of deals (2015 Q1-Q3 vs. 2014 Q1-Q3): 183%
12 %
44 %
2 %
Total Key markets Finland
STRONG REVENUE GROWTH IN HIGH POTENTIAL MARKETS
Revenue by markets (Q1-Q3 2015) Growth in revenue (Q1-Q3 2014 vs Q1-Q3 2015)
Total revenue Q1-Q3:
€104.2 million(1)
Highly visible revenue in mature markets Strong growth in key markets
Note: Key markets include US, UK and Germany
(1) Includes Procserve and partnership income.
(2) Excludes Procserve and partnership income.
Finland34 %
Key markets27 %
Other39 %
(1)
(1) (2)
SIGNIFICANT MARKET POTENTIAL
INDUSTRY DYNAMICS PLAYING IN OUR FAVOR
TAKING OVER
THE WORLD
Growth in value added
services and emergence of
alternative finance
Public sector mandates
driving global
e-invoicing adaptation
Organizations seek
savings, efficiencies,
transparency and control
through digitalization
Low penetration in large
markets and increasing
market acceptance
Basware has the strongest growth in the
markets with the largest potential and
lower penetration
Basware’s ~100 million transactions make
us # 1 e-invoicing operator
2015 EU and US government mandates
driving growth in our key markets
Network accumulates proprietary
payment data giving basis for additional
customer services
BASWARE IS THE LARGEST PLAYER IN THE ATTRACTIVE E-INVOICING MARKET
Source: E-invoicing/E-billing Market Overview 2015, published Feb 2015 by Billentis, Bruno Koch. Results of surveys with 20,000+ enterprises and 15,000
consumers, report issued in June 2015.
Leaders Average Developing Laggars
E-invoicing penetration still
low worldwide, but growing
The market is fairly fragmented,
Basware has the largest network
BASWARE FINANCING SERVICES
SUPPLIER DRIVEN BUYER DRIVEN 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
Basware Discount
Basware Pay
Basware Advance BASWARE
COMMERCE
NETWORK
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
MOREINFORMATION