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