basware q1/2009/media/files/b/basware-ir-v2/docu… · sita: invoice processing solution extension:...

1

Basware Q1/2009

CEO Ilkka Sihvo and CFO Mika Harjuaho

April 16, 2009

Contents

• Q1/2009 in Brief

• Business Review of Q1/2009

• Financial Review of Q1/2009

• Future Outlook

2

Basware in Brief

• Headquarters in Espoo, Finland and ten subsidiaries in Europe and in the US

• 850,000 users globally in 1500+ large organizations

• Net sales 21.7 million at the end of March 2009 (18.2 million)

• 730 employees at the end of March2009 (665)

Breakthrough to Global Leader

3

Q1/2009 in Brief

4

EUR Million Q1/2009 Q1/2008

Net sales 21.7 18.2

Growth of net sales, % 19.1% 7.0%

Operating profit 1.6 -0.3

Change of operating profit % 725.8% -118.1%

% of net sales 7.3% -1.4%

Net profit/loss 0.7 -0.6

Earnings per share, euro 0.06 -0.05

Fixed costs 17.6 16.7

International operations’

share of net sales52.5% 51.8%

Resellers’ share of product

sales12.2% 22.9%

Personnel 31.3. 730 665

• The first quarter success at the expected level

• Profitability developed positively

• Operating profit grew in all geographical areas over 100%

• Professional Services grew 21.8% and Maintenance 24.4%

• Automation Services grew 47.4%

• All geographies continued to grow

• Especially strong growth of 75.8% in the US

• International operations’ share of net sales continues to grow

Highlights of Q1/2009

5

SITA: Invoice Processing

solution extension: roll-

out to German, Belgium

and Luxembourg

Basware adopted

updated strategy for the

years 2009-2012

New customer in US:

Take-Two Interactive

Software

Basware Connectivity

deal with a global

consulting company

Basware launched first Global Theme to support strategic project Must-Have Brand and Thought Leadership

New customer DNA:

Enterprise Purchase to

Pay and SEPA extension

Basware Connectivity launch: a service to automate connections between the buyer and the supplier

Basware announced

acquisition of Itella’s

Norwegian invoice auto-

mation solution business

6

Business Review of Q1/2009

CEO Ilkka Sihvo

Reporting

7

FinlandFinnish, Russian, Asia-Pacificand headquarter businesses

ScandinaviaDenmark, Norway and Sweden

EuropeFrance, Germany, The Netherlands, Southern Europe and UK

North AmericaUSA and Canada

License salesEnterprise Purchase to Pay and

Financial Management Software

Professional Services

Maintenance

Automation ServicesSaaS

Transaction based services

Finland Segment Q1/2009

EUR thousand Q1/08 Q2/08 Q3/08 Q4/08 Q1/09

Net sales 10 493 13 091 10 604 15 329 11 331

Growth of net sales,% -13.0% 6.6% 3.6% 7.4% 8.0%

Operating profit -93 1 926 1 679 4 385 849

Number of personnel 416 421 422 426 439

0

3 000

6 000

9 000

12 000

15 000

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

Net sales

-500

500

1 500

2 500

3 500

4 500

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

Operating profit

0

100

200

300

400

500

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

Personnel

Finland Segment Q1/2009

9

New customers

Cargotec, DNA, Meira,

Maskun Kalustetalo

and Are Oy

Highlights

Growth of Finland and

Russia net sales of

23.3%

New partner in Russia:

LANIT (Laboratory of

New Information

Technologies)

Profile

Segment consists of

Finnish, Russian, Asia-

Pacific and headquarter

businesses.

Altogether 14 resellers in

the segment

Number of personnel 439

(416)


Net sales 4 198 4 628 3 352 6 627 5 317

Growth of net sales,% 4.2% 19.9% 7.2% 14.6% 26.6%

Operating profit 321 489 229 -21 666


Scandinavia Segment Q1/2009

-1 500

500

2 500

4 500

6 500

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

Net sales

0

50

100

150

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

Personnel

-300

0

300

600

900

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

Operating profit

Scandinavia Segment Q1/2009

11

Profile

Centrally managed units

in Sweden, Norway and

Denmark

The segment sells

Enterprise Purchase to

Pay and Financial

Management solutions

excluding payment

management solutions

Mainly direct sales


(99)

New customers

Norges Vassdrags – och

Enrgivesen, Validus AS,

Laerdal Medical AS and

Preem Petroleum AB

Highlights

Growth of 26.6%

Operating profit grew

107.9%

Contempus integration

completed

Europe Segment Q1/2009


Net sales 4 293 4 469 5 428 5 264 4 666

Growth of net sales,% 53.3% 41.7% 56.1% -6.9% 8.7%

Operating profit -277 -123 375 -48 231


0

1 000

2 000

3 000

4 000

5 000

6 000

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

Net sales

-500

0

500

1 000

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

Operating profit

0

50

100

150

200

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

Personnel

Europe Segment Q1/2009

13

Profile

Segment consists of units

in Germany, France, The

Netherlands, UK and

Southern Europe.

Segment sells Enterprise

Purchase to Pay products

excluding payment and

travel management

solutions

Altogether 35 resellers in

the segment


(127)

Highlights

Growth of 8.7%

Operating profit grew

183.3%

Novartis roll-out

altogether to 60

countries globally

SITA Invoice Automation

solution extension to

Germany, Belgium and

Luxembourg

New customers

Adenclassifields,

Zodiac Marine & Pool

and Coen Hagedoom

Bouwgroep BV

North America Segment Q1/2009


Net sales 680 1 446 1 567 1 311 1 195

Growth of net sales,% -9.6% 57.0% 107.1% 27.3% 75.8%

Operating profit -158 185 144 118 137


0

300

600

900

1200

1500

Q4/07Q1/08Q2/08Q3/08Q4/08

Net sales

-500

-300

-100

100

300

500

Q4/07Q1/08Q2/08Q3/08Q4/08

Operating profit

0

5

10

15

20

25

30

Q4/07Q1/08Q2/08Q3/08Q4/08

Personnel

North America Segment Q1/2009

15

Highlights

Strong growth of net

sales of 75.8%

Improvement in

profitability, growth of

186.9%

New customers

Take-Two Interactive

Software Inc.

Profile

The North American

unit sells Basware

Enterprise Purchase

to Pay solutions in

the US and Canada

Altogether 9

resellers in the

segment

Number of

personnel 31 (24)

Basware Strategy presentation 4/16/2009 16

EPP SaaS Offering

EPP Application Management EPP Data management

EPP Solution Support

Invoice Automation Procurement

Operation Center Services


Business

Transactions

Supplier

Portal

Supplier

Activation

Data CaptureCatalog

ManagementPrinting

EPP Automation Services

Licenses and SaaS Only SaaS


17

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 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 electronically, send order confirmations as well as upload and create electronic catalogs via Basware Supplier Portal


18

SupplierBasware

Business

Transactions

Basware

Monitor

Buyers

Printing

services

Buyers

Basware

BusinessTransactions

Basware

Monitor

Buyer

Supplier

Supplier

Scanning and

Data

Capture services

Offering for Buyers

Offering for Suppliers

Analyst estimates

• Gartner

- Enterprise software market will grow

to nearly $300 billion by 2013,

averaging annual growth of 5.4%. Source: Gartner Enterprise Software Markets,

Worldwide, 2008-2013, 1Q09 Update, March 16

- IT spending growth during 2009 will

be a negative 3.7%Source: Gartner Lowers Its Global IT Spending

Growth Forecast for 2009, March 16

• Billentis (Bruno Koch), eInvoicing:

The annual growth rate in Europe

today and for the next years is

expected to be 35% on average (B2C

25%, B2B 40%). Reasons: cost

pressure and government initiatives

in most EU member states.

19

Product

eProcurement

eSourcing

CLM (buy-side)

Spend analysis

EIPP

Services procurement

Supplier network

Suppler performance management

Total ePurchasing (% change)

CLM (sell-side)

Total CLM (%change)

2008 (%)

3

10

25

27

24

27

22

110

13

14

25

2009 (%)

-9

0

12

13

12

17

7

79

3

10

12

Forrester Feb 2009:ePurchasing Software Market

Revenues by type is

estimated to change

License

Maintenance

Subscriptions

Services

Total

2008

%

5

13

23

11

13

2009

%

-6

2

13

-1

3

2008

$M

$799

$729

$1041

$848

$3417

2009

$M

$753

$741

$1175

$838

$3508

20

Financial Review of Q1/2009

CFO Mika Harjuaho

Key Financials 2004–2008

EUR thousand 2004 2005 2006 2007 2008

Restated

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

Grow th 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

0

10000

20000

30000

40000

50000

60000

70000

80000

90000

100000

2004 2005 2006 2007 2008

Net sales

0

1000

2000

3000

4000

5000

6000

7000

8000

9000

10000

2004 2005 2006 2007 2008

Operating profit

0

100

200

300

400

500

600

700

800

2004 2005 2006 2007 2008

PersonneltEUR tEUR

Development of Quarterly Net Sales

05000

1000015000200002500030000

Q1 Q2 Q3 Q4

2009 2008

EUR thousand Q1/09 Q1/08 Q2/09 Q2/08 Q3/09 Q3/08 Q4/09 Q4/08

Net sales 21 717 18 233 22 312 19 259 26 294

Growth % 19.1% 7.0% 25.5% 26.1% 13.4%

Other operating income 30 69 62 58 62

Materials and services 1 552 1 211 1 385 797 1 333

Personnel expences 12 896 11 765 12 608 10 933 15 093

Depreciation and write-offs 1 004 671 693 690 990

Other operating expenses 4 703 4 910 5 257 4 516 4 818

Operating profit 1 592 -254 2 431 2 381 4 122

2008

Q121 %

Q226 %Q3

22 %

Q4 31 %

Q1-3 %

Q226 %

Q326 %

Q4 45 %

Development of Quarterly Profit

-1000

0

1000

2000

3000

4000

5000

Q1 Q2 Q3 Q4

2009 2008 2008

EUR thousand Q1/09 Q1/08 Q2/09 Q2/08 Q3/09 Q3/08 Q4/09 Q4/08

Net sales 21 717 18 233 22 312 19 259 26 294

Growth % 19.1% 7.0% 25.5% 26.1% 13.4%

Other operating income 30 69 62 58 62

Materials and services 1 552 1 211 1 385 797 1 333

Personnel expences 12 896 11 765 12 608 10 933 15 093

Depreciation and write-offs 1 004 671 693 690 990

Other operating expenses 4 703 4 910 5 257 4 516 4 818

Operating profit 1 592 -254 2 431 2 381 4 122

Net Sales by Primary Segment 1-3/2009

0

2 000

4 000

6 000

8 000

10 000

12 000

Finland Scandinavia Europe North America

1-3/2008 1-3/2009

Finland

Scandinavia

Europe

North America

Net sales 1-3/2009 1-3/2008 Change, %

Finland 11 331 10 493 8.0

Scandinavia 5 317 4 198 26.6

Europe 4 666 4 293 8.7

North America 1 195 680 75.8

Net sales between segments -791 -1 430 -44.7

Group total (IFRS) 21 717 18 233 19.1

Net Sales by Operation Q1/2009

Licenses = License sales of software products

Professional Services = Former consulting, includes also Maintenance and Automation Services related consulting

Maintenance = Continuous, annually charged fees (18-20% of license sales)

Automation Services = Software as a Service, transaction based services

Growth of License sales 2.5%

Growth of Maintenance 24.4%

Growth of Professional Services

21.8%

Growth of Automation Services

47.4%

Thousand euros

4 676

7 139

8 496

1 406

Licenses Maintenance

Professional Services Automation Services

Operating Profit by Primary Segment 1-3/2009

-1 500

0

1 500

Finland Scandinavia Europe North America

1-3/2008

1-3/2009

Operating profit 1-3/2009 1-3/2008 Change, %

Finland 849 -93 1 017.1

Scandinavia 666 321 107.9

Europe 231 -277 183.3

North America 137 -158 186.9

Operating profit between segments -292 -47 523.3

Group total (IFRS) 1 592 -254 725.8

Products

• R&D costs

EUR 3 694 thousand (EUR 3 793 thousand)

- Decrease of 2.6 percent

- 17.0 % of net sales (20.8%)

- EUR 493 thousand i.e.14.4% (16.5%) of costs capitalized

• Products unit personnel 176 (160)

- Units in Finland, India and Norway

- Future recruitments in India24.1% of

personnel

17.0% of

net sales

Personnel

• In total 730 (665) employees at the end of March 2009

• Growth 9.8 percent

• 54.5 percent in Finland;

45.5 percent abroad

• Average age 35.8 years

R&D 24%

Admin 9%

Customer Services

49%

Sales & Sales

Support 18%

Personnel GroupsEducation

Master35%

Bachelor 43%

College and other

22%

Finance and Investments

• Total assets on the balance sheet EUR 86 512 thousand

(EUR 67 496 thousand)

• Cash and cash equivalents EUR 11 460 thousand


• Cash flow from operations EUR 8 423 thousand


• Equity ratio 55.6% (66.4%)

• Gearing -0.7% (-15.7%)

• Total gross investments EUR 619 thousand ( EUR 822 thousand)

- Includes capitalized R&D costs and acquisitions

Share and Shareholders

• Number of shareholders 17 016 (17 923 ) at the end of March 2009

• Share price development during January–March 2009:

- Average price of the share EUR 7.37 (EUR 8.27)

- Highest EUR 7.75 (EUR 10.45), lowest EUR 6.60 (EUR 7.50)

- Closing price EUR 7.50 (EUR 7.90)

• Traded shares 431 908 (482 102)

- 3.8% (4.2%) of all shares

• Market capitalization EUR 85.3 million (EUR 90.6 million)

Industry and Basware Outlook

• Uncertainty in world economy

- IT spending growth during 2009 estimated to be negative 3.7%

- Enterprise software market estimated to grow to nearly $300 billion by 2013, averaging

annual growth of 5.4%

- eProcurement growth estimate in 2009 will be negative 9% and EIPP growth 12%

• Growth areas: Europe, US, Russia, Asia, profitability improving

• Scandinavia & Finland focus on profitability, mild growth

• Software production expanding to India, R&D costs will not substantially increase from the level

of 2008

• Growth related investments will start earliest in the second half of the year if Q2 operating profit

and net sales are at the expected level

• Automation Services order backlog: EUR 12.5 M

• New offering: Basware Automation Services

• Review of acquisition possibilities continues: distribution channel and product portfolio

• The cost savings resulting from the synergy benefits of the Contempus integration will

materialize starting from the beginning of 2009 and they will be approximately EUR 2 million by

the end of 2009 (including depreciation of EUR 1 million).

• 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.

Next interim report on July 10, 2009

Analyst and press briefing takes place on July 10, 2009 at

11.00 in Hotel Kämp, Pohjoisesplanadi 29, Helsinki,

Finland.

Welcome!

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