basware financial results q3/2009financial results q3/2009...

43
Basware Financial Results Q3/2009 Basware Financial Results Q3/2009 and 1-9/2009 CEO Ilkka Sihvo and CFO Mika Harjuaho October 13, 2009 1

Upload: others

Post on 23-May-2020

9 views

Category:

Documents


0 download

TRANSCRIPT

Page 1: Basware Financial Results Q3/2009Financial Results Q3/2009 .../media/Files/B/Basware-IR-V2/docu… · Basware in Brief • Headquarters in Espoo, Finland and altogether 10 subsidiaries

Basware Financial Results Q3/2009Basware Financial Results Q3/2009 and 1-9/2009

CEO Ilkka Sihvo and CFO Mika Harjuaho

October 13, 2009

1

Page 2: Basware Financial Results Q3/2009Financial Results Q3/2009 .../media/Files/B/Basware-IR-V2/docu… · Basware in Brief • Headquarters in Espoo, Finland and altogether 10 subsidiaries

Contents

• Q3/2009 in Brief• Q3/2009 in Brief• 1-9/2009 in Brief

• Business Review of Q3/2009

• Financial Review of Q3/2009• Financial Review of 1-9/2009

• Future Outlook

2

Page 3: Basware Financial Results Q3/2009Financial Results Q3/2009 .../media/Files/B/Basware-IR-V2/docu… · Basware in Brief • Headquarters in Espoo, Finland and altogether 10 subsidiaries

Basware in Brief

• Headquarters in Espoo, Finland and altogether 10 subsidiaries in Europe, in the US and Asia-Pacific

• 850,000 users globally in 1500+ large organizations

• Net sales 66 054 thousand at theNet sales 66 054 thousand at the end of September 2009 (59 804 thousand)

• 755 employees at the end of755 employees at the end of September 2009 (686)

Breakthrough to Global Leader

3

Page 4: Basware Financial Results Q3/2009Financial Results Q3/2009 .../media/Files/B/Basware-IR-V2/docu… · Basware in Brief • Headquarters in Espoo, Finland and altogether 10 subsidiaries

Q3/2009 in BriefEUR Million Q3/2009 Q3/2008

Net sales 21 6 19 3

• Excellent performance in recession

• Third quarter all-time record-high Net sales 21.6 19.3

Growth of net sales, % 12.2% 26.1%

Operating profit (EBIT) 4 .0 2.4

q gprofitability - analysts’ consensus estimate was exceeded 100%

• Double-digit net sales growth -Change of operating profit % 69.2% 69.3%

% of net sales 18.6% 12.4%

Net profit/loss 3 0 1 9

g gexceeded analysts’ estimate by EUR 1.8 Million

• Fixed costs tightly managedNet profit/loss 3.0 1.9

Earnings per share, euro 0.27 0.17

Fixed costs 15.1 15.4

g y g• Strong cash flow from operations

EUR 8 540 thousand• Automation Services grew by

International operations’share of net sales

58.0% 55.1%

Resellers’ share of product l

5.7% 15.9%

• Automation Services grew by 28.3%

• Maintenance grew by 18.0%sales

Personnel 30.9. 755 686• License sales grew by 0.7%• International operations’ share of

net sales continued to grow,

4

growth 18.0%

Page 5: Basware Financial Results Q3/2009Financial Results Q3/2009 .../media/Files/B/Basware-IR-V2/docu… · Basware in Brief • Headquarters in Espoo, Finland and altogether 10 subsidiaries

1-9/2009 in BriefEUR Million 1-9/2009 1-9/2008

Net sales 66 0 59 8

• Excellent performance in recession

Net sales 66.0 59.8

Growth of net sales, % 10.5% 19.4%

Operating profit (EBIT) 7.8 4.6

• Record-high profitability for 1-9/2009 at 11.8%

Change of operating profit % 70.4% -18.4%

% of net sales 11.8% 7.6%

Net profit/loss 5 1 3 3

• Automation Services grew by 48.6%

• M i t b 20 8%Net profit/loss 5.1 3.3

Cash flow from operating activities

8.5 6.2

Earnings per share euro 0 45 0 28

• Maintenance grew by 20.8%• License sales declined 10.0%• International operations’ share of Earnings per share, euro 0.45 0.28

Fixed costs 50.7 50.0

International operations’h f l

54.3% 51.9%

pnet sales continued to grow, growth 15.5%

• Order backlog EUR 10.8 Million, share of net sales

Resellers’ share of product sales

9.2% 16.8%

Personnel 30 9 755 686

g ,several new large AutomationServices deals

5

Personnel 30.9. 755 686

Page 6: Basware Financial Results Q3/2009Financial Results Q3/2009 .../media/Files/B/Basware-IR-V2/docu… · Basware in Brief • Headquarters in Espoo, Finland and altogether 10 subsidiaries

Highlights of Q3/2009g g

Enterprise Purchase to Pay solution and BaswareC ti it S i

Acquisition of Basware’s G S

Enterprise Purchase to Pay solution to the State of S O f Connectivity Services

(including scan and capture) to HCR ManorCare, Inc

reseller TAG Services in Australia

South Australia. One of the largest license sales deals in Basware’s history

Invoice Processing solution Connectivity Services togto Her Majesty’s Prison Services

Connectivity Services to Metso Corporation

6

Page 7: Basware Financial Results Q3/2009Financial Results Q3/2009 .../media/Files/B/Basware-IR-V2/docu… · Basware in Brief • Headquarters in Espoo, Finland and altogether 10 subsidiaries

Business Review of Q3/2009

CEO Ilkka Sihvo

7

Page 8: Basware Financial Results Q3/2009Financial Results Q3/2009 .../media/Files/B/Basware-IR-V2/docu… · Basware in Brief • Headquarters in Espoo, Finland and altogether 10 subsidiaries

2009 market estimate up-dates2009 market estimate up dates

Forrester August 2009 Forrester Sept. 2009 Gartner March 2009 W t /C t l E USA

2009 2010 2009 2010 2009 2010S f 4% % 9 4% 9 3% NA NA

Western/Central Europe USA

Software purchases

-5.4% 5.5% -9.4% 9.3% NA NA

IT services NA NA NA NA NA NA

Total IT purchases

-6.3% 4% -9.3% 7.7% -3.7% 2.4

Source: Gartner, March 2009Source: Forrester: European IT Market Outlook: 2009 To 2010, Aug 2009

8

Page 9: Basware Financial Results Q3/2009Financial Results Q3/2009 .../media/Files/B/Basware-IR-V2/docu… · Basware in Brief • Headquarters in Espoo, Finland and altogether 10 subsidiaries

Reportingp g

FinlandFinnish, Russian, Asia-Pacific(excl. Australia) and h d t ti

License salesEnterprise Purchase to Pay andFinancial Management Software

headquarter operations

Scandinavia

g

Professional ServicesDenmark, Norway and Sweden

EuropeMaintenance

A t ti S iEuropeFrance, Germany, The Netherlands, UK

Automation ServicesSaaSConnectivity (e-invoicing, S &C t )

OtherNorth-America, Australia

Scan&Capture)

9

Page 10: Basware Financial Results Q3/2009Financial Results Q3/2009 .../media/Files/B/Basware-IR-V2/docu… · Basware in Brief • Headquarters in Espoo, Finland and altogether 10 subsidiaries

Segment: Finland Q3/2009g

EUR thousand Q3/08 Q4/08 Q1/09 Q2/09 Q3/09EUR thousand Q3/08 Q4/08 Q1/09 Q2/09 Q3/09Net sales 10 604 15 329 11 331 12 406 11 478Growth of net sales,% 3.6% 7.4% 8.0% -5.2% 8.2%Operating profit 1 679 4 385 849 1 295 2 546Number of personnel 422 426 439 458 458

20 000Net Sales Operating Profit

500

Personnel

10 000

15 000

20 000

2 000

3 000

4 000

5 000

200

300

400

500

0

5 000

Q3/08Q4/08Q1/09Q2/09Q3/090

1 000

2 000

Q3/08 Q4/08 Q1/09 Q2/09 Q3/090

100

200

Q3/08Q4/08Q1/09Q2/09Q3/09

10

Page 11: Basware Financial Results Q3/2009Financial Results Q3/2009 .../media/Files/B/Basware-IR-V2/docu… · Basware in Brief • Headquarters in Espoo, Finland and altogether 10 subsidiaries

Segment: Finland Q3/2009g

New deals withHighlightsProfile

• Aktia• Metso• Helsingin seurakunta-

Basware Connectivitydeal with Metso

Segment consists of Finnish, Russian, Asia-Pacific (excluding Helsingin seurakunta

yhtymä • Schenker• Ilmarinen

Financial Management Team integration to Finnish Business Unit

Pacific (excludingAustralia) operations and head quarter functions

Finnish Business UnitAltogether 14 resellers in the segment

Number of personnel 458 (422)

11

Page 12: Basware Financial Results Q3/2009Financial Results Q3/2009 .../media/Files/B/Basware-IR-V2/docu… · Basware in Brief • Headquarters in Espoo, Finland and altogether 10 subsidiaries

Segment: Scandinavia Q3/2009g

EUR thousand Q3/08 Q4/08 Q1/09 Q2/09 Q3/09EUR thousand Q3/08 Q4/08 Q1/09 Q2/09 Q3/09Net sales 3 352 6 627 5 317 6 278 4 505Growth of net sales,% 7.2% 14.6% 26.6% 35.6% 34.4%Operating profit 229 21 666 1 249 212Operating profit 229 -21 666 1 249 212Number of personnel 103 146 138 137 135

7 000

Net Sales1 300

Operating profit160

Personnel

2 0003 0004 0005 0006 0007 000

500700900

1 100

6080

100120140

01 0002 000

Q3/08 Q4/08 Q1/09 Q2/09 Q3/09 -100100300

Q3/08Q4/08Q1/09Q2/09Q3/09

02040

Q3/08 Q4/08 Q1/09 Q2/09 Q3/09

12

Page 13: Basware Financial Results Q3/2009Financial Results Q3/2009 .../media/Files/B/Basware-IR-V2/docu… · Basware in Brief • Headquarters in Espoo, Finland and altogether 10 subsidiaries

Segment: Scandinavia Q3/2009g

Profile

C t ll d it

New deals withHighlights

Centrally managed unitsin Sweden, Norway and Denmark

• Danske Regioner• Arctic Securities

Several new deals(customer names notpublic)

The segment sellsEnterprise Purchase to Pay solutions

Customer Care Modelsuccesfully introduced in Scandinavia

Mainly direct salesNumber of personnel 135 (103)

Scandinavia

( )

13

Page 14: Basware Financial Results Q3/2009Financial Results Q3/2009 .../media/Files/B/Basware-IR-V2/docu… · Basware in Brief • Headquarters in Espoo, Finland and altogether 10 subsidiaries

Segment: Europe Q3/2009g p

EUR thousand Q3/08 Q4/08 Q1/09 Q2/09 Q3/09EUR thousand Q3/08 Q4/08 Q1/09 Q2/09 Q3/09Net sales 5 428 5 264 4 666 4 318 4 104Growth of net sales,% 56.1% -6.9% 8.7% -3.4% -24.4%Operating profit 375 48 231 32 465Operating profit 375 -48 231 -32 465Number of personnel 130 127 122 119 116

Net Sales Operating Profit Personnel

3 0004 0005 0006 000

0100200300400

Operating Profit

120125130135

Personnel

01 0002 000

Q3/08 Q4/08 Q1/09 Q2/09 Q3/09

-200-100

0

Q3/08 Q4/08 Q1/09 Q2/09 Q3/09105110115

Q3/08 Q4/08 Q1/09 Q2/09 Q3/09

14

Page 15: Basware Financial Results Q3/2009Financial Results Q3/2009 .../media/Files/B/Basware-IR-V2/docu… · Basware in Brief • Headquarters in Espoo, Finland and altogether 10 subsidiaries

Segment: Europe Q3/2009g p

New deals with

• Her Majesty’s Prison

Profile

Segment consists of units

Highlights

• Profitability improved • Her Majesty s PrisonService

• Eurofoam• Deutschland Ringier

Segment consists of unitsin Germany, France, The Netherlands and UK

S t ll E t i

• Profitability improved by 24.0% •Basware Connectivity Services: Major success • Deutschland Ringier

AG• Provimi Petfood• Frencken Group

Segment sells Enterprise Purchase to Pay solutions

Altogether 35 resellers in

Services: Major success in 1-9/2009 extending Basware’s portfoliocompetitiveness Frencken GroupAltogether 35 resellers in

the segmentNumber of personnel 116 (130)

competitiveness

• ADT & Tyco saved over 400,000 Euros with 400,000 Euros with Basware Invoice Automation in the first year

15

y

Page 16: Basware Financial Results Q3/2009Financial Results Q3/2009 .../media/Files/B/Basware-IR-V2/docu… · Basware in Brief • Headquarters in Espoo, Finland and altogether 10 subsidiaries

Segment: Other Q3/2009g

EUR thousand Q3/08 Q4/08 Q1/09 Q2/09 Q3/09Net sales 1 567 1 311 1 195 1 128 3 980Growth of net sales,% 107.1% 27.3% 75.8% -21.9% 154.0%Operating profit 144 118 137 -102 1 223Number of personnel 28 29 31 31 46

Net Sales Operating Profit Personnel

2 000

3 000

4 000

500

1 000

1 500

20

30

40

50

0

1 000

Q3/08 Q4/08 Q1/09 Q2/09 Q3/09

-500

0

Q3/08Q4/08Q1/09Q2/09Q3/090

10

20

Q3/08 Q4/08 Q1/09 Q2/09 Q3/09

16

Page 17: Basware Financial Results Q3/2009Financial Results Q3/2009 .../media/Files/B/Basware-IR-V2/docu… · Basware in Brief • Headquarters in Espoo, Finland and altogether 10 subsidiaries

Segment: Other Q3/2009g

Highlights New deals withProfile

• One of the largestslicense deals inBasware’s history with

• HCR ManorCare,Inc

Fl

Segment consistsunits in North-America and A t li

ythe State of South Australia

• Flowserve

• The State of South Australia

Australia

Altogether 9 resellers in the • Acquisition of Australian

reseller TAG Services Pty Ltd

Australiaresellers in the segment

Number ofNumber of personnel 46 (28)

17

Page 18: Basware Financial Results Q3/2009Financial Results Q3/2009 .../media/Files/B/Basware-IR-V2/docu… · Basware in Brief • Headquarters in Espoo, Finland and altogether 10 subsidiaries

Basware Connectivity Servicesy

Business Transactions: enablesdelivery of e-invoices and purchase messages between

Scan and Capture: convertspaper invoices into electronicf tpurchase messages between

buyers and suppliers format

BaswareBaswareConnectivity

ServicesBasware Supplier Portal: enables suppliers to createeinvoices and to handle

Basware Supplier Activationservice: enables buyers to

t li ’einvoices and to handlepurchase messages and catalogues

convert suppliers’ paperinvoices into electronic invoices

18

Page 19: Basware Financial Results Q3/2009Financial Results Q3/2009 .../media/Files/B/Basware-IR-V2/docu… · Basware in Brief • Headquarters in Espoo, Finland and altogether 10 subsidiaries

Basware Connectivity Servicesy

• Basware Connectivity is a new set of services which enable suppliers and buyers of all sizes and maturity to transact electronicallyelectronically

• Launched on the markets early 2009, clear demand for the solution • New customers in all important markets including North America

- For example Metso Corporation, SITA NEWS, large Finnish corporation and HCR ManorCare Inc. in the US

• Basware strong player in connectivity markets• Basware strong player in connectivity markets• Competitors local or small by transaction volumes• Major success in 1-9/2009 extending Basware’s competitivenessMajor success in 1 9/2009 extending Basware s competitiveness

and ensuring recurring revenue stream

19

Page 20: Basware Financial Results Q3/2009Financial Results Q3/2009 .../media/Files/B/Basware-IR-V2/docu… · Basware in Brief • Headquarters in Espoo, Finland and altogether 10 subsidiaries

Financial Review of Q3/2009 and 1-9/2009

CFO Mika Harjuaho

20

Page 21: Basware Financial Results Q3/2009Financial Results Q3/2009 .../media/Files/B/Basware-IR-V2/docu… · Basware in Brief • Headquarters in Espoo, Finland and altogether 10 subsidiaries

Key Financials 2004-2008y

EUR thousand 2004 2005 2006 2007 2008

R t t dRestated

Net sales 33 891 41 666 59 954 73 270 86 098

Growth of net sales, % 29.4% 43.9% 22.2% 17.5%

Operating profit 6 256 3 611 8 078 7 512 8 679

% of net sales 18.5% 8.7% 13.5% 10.3% 10.1%

Personnel, 31.12. 302 395 528 658 731,

100000

Net sales10000

Operating profit800

PersonneltEUR tEUR

5000060000700008000090000

50006000700080009000

400

500

600

700

010000200003000040000

01000200030004000

0

100

200

300

21

2004 2005 2006 2007 20080

2004 2005 2006 2007 20080

2004 2005 2006 2007 2008

Page 22: Basware Financial Results Q3/2009Financial Results Q3/2009 .../media/Files/B/Basware-IR-V2/docu… · Basware in Brief • Headquarters in Espoo, Finland and altogether 10 subsidiaries

Q3/2009 and 1-9/2009 in Brief

EUR Thousand Q3/09 Q3/08 1-9/09 1-9/08EUR Thousand Q3/09 Q3/08 1-9/09 1-9/08Net sales 21 609 19 258 66 054 59 804Growth of net sales, % 12.2% 26.1% 10.5% 19.4%Operating profit 4 028 2 381 7 767 4 557Change of operating profit, % 69.2% 69.3% 70.4% -18.4%% f % % % %% of net sales 18.6% 12.4% 11.8% 7.6%Net profit/loss 3 005 1 941 5 066 3 290Earning per share EUR 0 27 0 17 0 45 0 28Earning per share, EUR 0.27 0.17 0.45 0.28Fixed costs 15 127 15 449 50 683 49 988International operations' share of net sales,% 58.0% 55.1% 54.3% 51.9%Resellers' share of product sales,% 5.7% 15.9% 9.2% 16.8%

22

Page 23: Basware Financial Results Q3/2009Financial Results Q3/2009 .../media/Files/B/Basware-IR-V2/docu… · Basware in Brief • Headquarters in Espoo, Finland and altogether 10 subsidiaries

Development of Quarterly Net Salesp y

EUR thousand Q1/09 Q1/08 Q2/09 Q2/08 Q3/09 Q3/08 Q4/09 Q4/08Net sales 21 717 18 233 22 729 22 312 21 609 19 259 26 294Net sales 21 717 18 233 22 729 22 312 21 609 19 259 26 294Growth % 19.1% 7.0% 1.9% 25.5% 12.2% 26.1% 13.4%Other operating income 30 69 52 62 47 58 62Materials and services 1 552 1 211 1 611 1 385 1 395 797 1 333Materials and services 1 552 1 211 1 611 1 385 1 395 797 1 333Personnel expences 12 896 11 765 13 444 12 608 11 113 10 933 15 093Depreciation and write-offs 1 004 671 1 067 693 1 106 690 990Oth ti 4 703 4 910 4 513 5 257 4 014 4 516 4 818Other operating expenses 4 703 4 910 4 513 5 257 4 014 4 516 4 818Operating profit 1 592 -254 2 146 2 431 4 028 2 381 4 122

2009 2008 2008

200002500030000

2009 2008

21 %31 %

2008

05000

1000015000

26 %

22 %

23

0Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

Page 24: Basware Financial Results Q3/2009Financial Results Q3/2009 .../media/Files/B/Basware-IR-V2/docu… · Basware in Brief • Headquarters in Espoo, Finland and altogether 10 subsidiaries

Development of Quarterly profitp y p

EUR thousand Q1/09 Q1/08 Q2/09 Q2/08 Q3/09 Q3/08 Q4/09 Q4/08Net sales 21 717 18 233 22 729 22 312 21 609 19 259 26 294Growth % 19.1% 7.0% 1.9% 25.5% 12.2% 26.1% 13.4%Other operating income 30 69 52 62 47 58 62Materials and services 1 552 1 211 1 611 1 385 1 395 797 1 333Materials and services 1 552 1 211 1 611 1 385 1 395 797 1 333Personnel expences 12 896 11 765 13 444 12 608 11 113 10 933 15 093Depreciation and write-offs 1 004 671 1 067 693 1 106 690 990Other operating expenses 4 703 4 910 4 513 5 257 4 014 4 516 4 818Operating profit 1 592 -254 2 146 2 431 4 028 2 381 4 122

2009 2008 2008

300040005000

2009 2008-3 %

26 %45 %

008

10000

10002000

26 %

24

-1000Q1 Q2 Q3 Q4

Q1 Q2 Q3 Q4

Page 25: Basware Financial Results Q3/2009Financial Results Q3/2009 .../media/Files/B/Basware-IR-V2/docu… · Basware in Brief • Headquarters in Espoo, Finland and altogether 10 subsidiaries

Net Sales by Operation Q3/2009y p

7405

1884EUR Thousand

Maintenance, growth

Licensesales, growth7405

5803

gof 18.0%

sales, growthof 0.7%

AutomationServices,

growth

Professional Services, growth of

6517Maintenance Professional ServicesLi A t ti S i

growthof 28.3%

growth of 13.2%

Licenses Automation Services

Licenses = License sales of software products Professional Services = Former consulting includes also Maintenance and Automation Services related consulting

25

Professional Services = Former consulting, includes also Maintenance and Automation Services related consultingMaintenance = Continuous, annually charged fees (18-20% of license sales)Automation Services = Software as a Service, transaction based services

Page 26: Basware Financial Results Q3/2009Financial Results Q3/2009 .../media/Files/B/Basware-IR-V2/docu… · Basware in Brief • Headquarters in Espoo, Finland and altogether 10 subsidiaries

Net Sales by Primary Segment Q3/2009y y gNet sales 7-9/09 7-9/08 Change, %Finland 11 478 10 604 8.2Scandinavia 4 505 3 352 34.4Europe 4 104 5 428 -24.4Other 5 980 1 567 154.0Net sales between segments -2 459 -1 692 45.3

Group total (IFRS) 21 609 19 259 12.2

14000

7-9/2009 7-9/2008

8000100001200014000

0200040006000

26

0Finland Scandinavia Europe Other Finland Scandinavia Europe Other

Page 27: Basware Financial Results Q3/2009Financial Results Q3/2009 .../media/Files/B/Basware-IR-V2/docu… · Basware in Brief • Headquarters in Espoo, Finland and altogether 10 subsidiaries

Operating Profit by Primary Segment Q3/2009Operating profit Q3/09 Q3/08 Change,%Finland 2 546 1 679 51.6Scandinavia 212 229 -7.2Europe 465 375 24.0Other 1 223 144 748.4Operating profit between segments -417 -47 787.2Group total (IFRS) 4 028 2 381 69.2

Other

Scandinavia

Europe

Q3/2008Q3/2009

Finland

Scandinavia Q3/2009

27

0 500 1000 1500 2000 2500 3000

Page 28: Basware Financial Results Q3/2009Financial Results Q3/2009 .../media/Files/B/Basware-IR-V2/docu… · Basware in Brief • Headquarters in Espoo, Finland and altogether 10 subsidiaries

Net Sales by Primary Segment 1-9/2009y y g

Net sales 1-9/2009 1-9/2008 Change,%et sa es 9/ 009 9/ 008 C a ge,%Finland 35 215 34 188 3.0Scandinavia 16 100 12 179 32.2Europe 13 087 14 189 -7.8pOther 6 303 3 692 70.7Net sales between segments -4 652 -4 444 4.7Group total (IFRS) 66 054 59 804 10.5p ( )

Other

Europe

Other

1-9/2008

Finland

Scandinavia 1-9/2009

28

0 10000 20000 30000 40000

Page 29: Basware Financial Results Q3/2009Financial Results Q3/2009 .../media/Files/B/Basware-IR-V2/docu… · Basware in Brief • Headquarters in Espoo, Finland and altogether 10 subsidiaries

Operating profit by Primary Segment 1-9/2009

Operating profit 1-9/2009 1-9/2008 Change,%Finland 4 690 3 513 33.5Scandinavia 2 128 1 038 104.9Europe 664 -26 2 653.8pOther 1 258 171 634.0Operating profit between segments -972 -140 594.3Group total (IFRS) 7 767 4 557 70.4Group total (IFRS) 7 767 4 557 70.4

Other

Europe

Other

1-9/2008

Finland

Scandinavia 1-9/2009

29

-1000 0 1000 2000 3000 4000 5000

Page 30: Basware Financial Results Q3/2009Financial Results Q3/2009 .../media/Files/B/Basware-IR-V2/docu… · Basware in Brief • Headquarters in Espoo, Finland and altogether 10 subsidiaries

Development of Profit Q3/2009 and 1-9/2009p

EUR Thousand Q3/09 Q3/08 1-9/09 1-9/08Operating profit 4 028 2 381 7 767 4 557Change of operating profit,% 69.2% 69.3% 70.4% -18.4%% of net sales 18.6% 12.4% 11.8% 7.6%Profit before tax 3 946 2 370 7 553 4 548N fi /l 3 00 1 941 066 3 290Net profit/loss 3 005 1 941 5 066 3 290Earnings per share, EUR 0.27 0.17 0.45 0.28Fixed costs 15 127 15 449 50 683 49 988P l t 11 113 10 933 37 453 35 306Personnel costs 11 113 10 933 37 453 35 306R&D costs 3 405 3 000 10 934 11 134

30

Page 31: Basware Financial Results Q3/2009Financial Results Q3/2009 .../media/Files/B/Basware-IR-V2/docu… · Basware in Brief • Headquarters in Espoo, Finland and altogether 10 subsidiaries

Products

• R&D costs EUR 10 934 thousand(EUR 11 134 thousand)- Decrease of 1.8 percentDecrease of 1.8 percent- 16.6 percent of net sales (18.6%)- EUR 1 094 thousand of costs

capitali ed i e 10 0%R&D costs 16.6% of net sales

capitalized i.e. 10.0%

• Products unit personnel 184 (162)Products unit personnel 184 (162)- Units in Finland, India and Norway- Future recruitments in India

24.4% of personnel

31

Page 32: Basware Financial Results Q3/2009Financial Results Q3/2009 .../media/Files/B/Basware-IR-V2/docu… · Basware in Brief • Headquarters in Espoo, Finland and altogether 10 subsidiaries

Personnel

• In total 755 (686) employees at the end of September 2009

• 47.0 percent abroad• Average age 36.5 years

College and other

Sales & Sales Admin

Masterand other Support

R&D

BachelorBachelorCustomer Service

Education Personnel groups

32

g p

Page 33: Basware Financial Results Q3/2009Financial Results Q3/2009 .../media/Files/B/Basware-IR-V2/docu… · Basware in Brief • Headquarters in Espoo, Finland and altogether 10 subsidiaries

Finance and Investments

• Total assets on the balance sheet EUR 84 942 thousand (EUR 80 537 thousand)

• Cash and cash equivalents EUR 7 567 thousand(EUR 8 680 th d)(EUR 8 680 thousand)

• Cash flow from operations EUR 8 540 thousand (EUR 6 205 thousand)(EUR 6 205 thousand)

• Equity ratio 61.9% (60.0%)• Gearing 3.2% (8.3%) g ( )• Total gross investments EUR 7 084 thousand

(EUR 11 262 thousand)- Includes capitalized R&D costs and acquisitions

Page 34: Basware Financial Results Q3/2009Financial Results Q3/2009 .../media/Files/B/Basware-IR-V2/docu… · Basware in Brief • Headquarters in Espoo, Finland and altogether 10 subsidiaries

Share and Shareholders

• Number of shareholders 16 668 (17 301) at the end of September ( ) p2009

Sh i d l t d i J S t b 2009• Share price development during January–September 2009:- Average price of the share EUR 9.29 (EUR 7.70)

Hi h t EUR 11 49 (EUR 10 45) l t EUR 6 60 (EUR 6 14)- Highest EUR 11.49 (EUR 10.45), lowest EUR 6.60 (EUR 6.14)- Closing price EUR 10.72 (EUR 7.00)

• Traded shares 1 297 031 (1 808 869)- 11.4% (15.8%) of all shares ( )

• Market capitalization EUR 121 970 273 (EUR 80 276 868)

Page 35: Basware Financial Results Q3/2009Financial Results Q3/2009 .../media/Files/B/Basware-IR-V2/docu… · Basware in Brief • Headquarters in Espoo, Finland and altogether 10 subsidiaries

Future Outlook

CEO Ilkka Sihvo

35

Page 36: Basware Financial Results Q3/2009Financial Results Q3/2009 .../media/Files/B/Basware-IR-V2/docu… · Basware in Brief • Headquarters in Espoo, Finland and altogether 10 subsidiaries

Industry and Basware Outlook• Uncertainty in world economy

- Total software purchases forecast 2009: -5.4% in Western/Central Europe and -9.4% in USAT t l ft h f t 2010 5 5% i W t /C t l E d 9 3% i USA- Total software purchases forecast 2010: 5.5% in Western/Central Europe and 9.3% in USA

- Total IT purchases forecast 2009: -6.3% in Western/Central Europe and -9.3% in USA - Total IT purchases forecast 2010: 4.0% in Western/Central Europe and 7.7% in USA

• Growth areas: Europe, US, Russia, Asia-Pacific, profitability improving• Scandinavia & Finland focus on profitability, mild growth• Software production expanding to India year 2009 R&D costs are expected not to substantiallySoftware production expanding to India, year 2009 R&D costs are expected not to substantially

increase from the level of 2008• Growth related investments in Q4/2009 if operating profit and net sales are at the expected level• Automation Services order backlog: EUR 10.8 Mg

• Review of acquisition possibilities continues: distribution channel and product portfolio• The cost savings resulting from the synergy benefits of the Contempus integration will materialize

t ti f th b i i f 2009 d th ill b i t l EUR 2 illi b th d f 2009starting from the beginning of 2009 and they will be approximately EUR 2 million by the end of 2009.

• Net sales expected to develop positively on the level of 2008. • Operating profit (EBIT) for 2009 is expected to be from 10 to 15 percent of net sales.

Page 37: Basware Financial Results Q3/2009Financial Results Q3/2009 .../media/Files/B/Basware-IR-V2/docu… · Basware in Brief • Headquarters in Espoo, Finland and altogether 10 subsidiaries

Next interim report on January 26, 2010

Analyst and press briefing takes place on January 26, 2010 at 11 00 in Hotel Kämp Pohjoisesplanadi 292010 at 11.00 in Hotel Kämp, Pohjoisesplanadi 29, Helsinki, Finland.

Welcome!

Page 38: Basware Financial Results Q3/2009Financial Results Q3/2009 .../media/Files/B/Basware-IR-V2/docu… · Basware in Brief • Headquarters in Espoo, Finland and altogether 10 subsidiaries

Additional Slides

Page 39: Basware Financial Results Q3/2009Financial Results Q3/2009 .../media/Files/B/Basware-IR-V2/docu… · Basware in Brief • Headquarters in Espoo, Finland and altogether 10 subsidiaries

EPP Automation Services

Licenses and SaaS Only SaaS

Basware Connectivity

Business Supplier SupplierTransactions Portal Activation

Data Capture Catalog Management Printing

EPP SaaS Offering

g

EPP Application Management EPP Data management

EPP Solution Support

Invoice Automation Procurement

Operation Center Services

Basware Strategy presentation 10/13/2009 39

Page 40: Basware Financial Results Q3/2009Financial Results Q3/2009 .../media/Files/B/Basware-IR-V2/docu… · Basware in Brief • Headquarters in Espoo, Finland and altogether 10 subsidiaries

Basware Connectivityy

Basware Connectivity is a set of enabling services that allows buyers and suppliers of all sizes and maturity to accelerate automation of the purchase to pay process including:• The ability to deliver e-invoices and purchase messages with Basware Business Transactions• Basware’s Scan and Capture service to convert all paper invoice to• Basware s Scan and Capture service to convert all paper invoice to electronic format• Basware’s Supplier Activation service to communicate with the suppliers, assist and activate them to connect to the buyers’ purchase to pay process.• The ability for suppliers to key-in invoices, receiver orders y pp y ,electronically, send order confirmations as well as upload and create electronic catalogs via Basware Supplier Portal

40

Page 41: Basware Financial Results Q3/2009Financial Results Q3/2009 .../media/Files/B/Basware-IR-V2/docu… · Basware in Brief • Headquarters in Espoo, Finland and altogether 10 subsidiaries

Basware Connectivity

BaswareMonitor BuyersOffering for Suppliers

SupplierBaswareBusiness Buyers

y

ppTransactions

Buyers

Printingservices

BaswareMonitorSupplier

Off i f B

BaswareBusiness Buyer

pp

Supplier

Offering for Buyers

Transactionsypp

Scanning andData

Capture services

41

Page 42: Basware Financial Results Q3/2009Financial Results Q3/2009 .../media/Files/B/Basware-IR-V2/docu… · Basware in Brief • Headquarters in Espoo, Finland and altogether 10 subsidiaries

Basware’s process tools

Procurement

p

BankSupplier BankSupplierSourcing &

Supplier Management Agree-

ment

Tendering Contractmanagement

PaymentStakeholderReporting

InvoiceOrderCatalog

Budget

Planning &Budgeting

Purchasemanagement

InvoiceProcessing Reporting Group

consolidation

MatchingPurchasevolume Matching

SpendAnalysis

Budgeting

CategoryMgmt

ProductItems

volume

Basware Strategy presentation 10/13/2009 42

Invoice AutomationAnalysisMgmtItems

Page 43: Basware Financial Results Q3/2009Financial Results Q3/2009 .../media/Files/B/Basware-IR-V2/docu… · Basware in Brief • Headquarters in Espoo, Finland and altogether 10 subsidiaries

Basware Enterprise Purchase to Payp y

Procurement Invoice

sProcurement Automation

y S

ervi

ces

Serv

ices

Ser

vice

s

usto

mer

s

onne

ctiv

ity

nnec

tivity

Snn

ectiv

ity

Sup

plie

rs

Cu

sine

ss C

o

pplie

rC

onup

plie

r CoS

Bu

Sup

Su

KPI Measurement and Continuous Improvement

Customer Legacy Systems e.g. Financial Systems, ERP

Basware Strategy presentation 10/13/2009 43Basware Strategy presentation 10/13/2009 43

KPI Measurement and Continuous Improvement