FINANCIAL RESULTSQ4/2015 & 2015
ESA TIHILÄ, CEO
NICLAS ROSENLEW, CFO
FEBRUARY 2, 2016
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.
FINANCIAL RESULTSQ4/2015 & 2015
BUSINESS REVIEW
KEY EVENTS 2015
The growth in Network Services continued throughout the year
• Position in public sector strengthened with Procserve acquisition
Net sales continued to grow strongly in the US, the UK and Germany, offsetting modest growth in Finland
Tipping point reached in transition to cloud and SaaS-based company:
• Signed Alusta-based SaaS agreements more than doubled;
• Licence sales decline accelerated, offset by growth in SaaS
Investments in Network Services and Financing Services business continued
Cloud business developed
favourably with significant growth
in key markets Starting point for the
next phase of growth
Refined strategy for
2016-2018 announced
Q4/2015 IN BRIEF
Strong growth in net sales & operating profit:
Transition to the cloud
continued
Record number of Alusta-
based SaaS agreements
signed in Q4
8.5 million Network
transactions in October (all-
time monthly high)
NETWORK SERVICES
Net sales grew significantly (53.5% vs Q4 2014)
Growth of transaction volumes continued,
with 25 million transactions in Q4
SOLUTION SERVICES
SaaS net sales grew 21.9%
Licence sales declined at a similar pace to Q3
FINANCING SERVICES
25 new customers signed up since summer 2015
in the UK, the US and Finland for Basware Pay &
Basware Discount
Q4/2015 KEY FINANCIALS
• Net sales EUR 39 210 thousand
(EUR 34 644 thousand), +13.1%
• Operating profit EUR 4 305 thousand
(EUR 1 701 thousand)
Net sales
EUR thousand
-
5 000
10 000
15 000
20 000
25 000
30 000
35 000
40 000
45 000
Q1 Q2 Q3 Q4
2010 2011 2012 2013 2014 2015
STRONG GROWTH IN NET SALESIN HIGH POTENTIAL MARKETS
Net sales by markets (Q1-Q4 2015) Growth in net sales (2015 vs. 2014)
Total:
€143.4 million(1)
Net sales in stable in mature markets Strong organic growth in key markets
(1) Includes Procserve and partnership income.
(2) Excludes Procserve and partnership income.
(1)
(1) (2)
SIGNIFICANT GROWTH CONTINUED IN TRANSACTION VOLUMES
-
5,0
10,0
15,0
20,0
25,0
30,0
Q1 Q2 Q3 Q4
2010 2011 2012 2013 2014 2015
Million transactions
~94 million
transactions in
2015
+20.2% versus
2014
CONTINUOUSLY INCREASING SHARE OF RECURRING REVENUE
The share of
recurring revenue
of net sales increased
to 66.5 % (64.9%) in
Q4/2015
Net sales
Share of
recurring
revenue, rolling
4 quarters
average
0,0 %
10,0 %
20,0 %
30,0 %
40,0 %
50,0 %
60,0 %
70,0 %
80,0 %
0
5 000
10 000
15 000
20 000
25 000
30 000
35 000
40 000
45 000
Q1/
11
Q2/
11
Q3
/11
Q4/
11
Q1/
12
Q2/
12
Q3/
12
Q4
/12
Q1/
13
Q2/
13
Q3/
13
Q4/
13
Q1
/14
Q2/
14
Q3/
14
Q4/
14
Q1/
15
Q2
/15
Q3/
15
Q4/
15
EUR thousand
0
20
40
60
80
100
120
140
160
2010 2011 2012 2013 2014 2015
TIPPING POINT REACHED IN TRANSITION TO CLOUD AND SAAS
Cloud
businesses
drive growth
Net Sales by type (€M, 2010 – 2015)
Maintenance,
license and
consulting
provide a
solid base
Other Network
related
Transactions
SaaS
Consulting
Licenses
Maintenance
Note: Other Network related includes Procserve and alliance fee.
2015 Net sales mix
2010 Net sales mix
Maintenance, consulting and license
SaaS and Network
FINANCIAL RESULTSQ4/2015 & 2015
FINANCIAL REVIEW
-2,0
4,0
10,0
0,0
10,0
20,0
30,0
40,0
Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 Q2/15 Q3/15 Q4/15
Net sales Operating profit
KEY GROUP FINANCIALS
EUR thousand Q4 2015 Q4 2014
Q4 15 vs Q4
14 growth FY 2015 FY 2014 YoY growth
Net sales 39 210 34 664 13.1% 143 410 127 674 12.3%
Material and services -4 098 -3 559 15.1% -16 396 -12 796 28.1%
Personnel expenses -22 456 -20 803 7.9% -85 726 -77 779 10.2%
Other operating expenses -6 517 -6 865 -5.1% -29 490 -26 004 13.4%
EBITDA 6 224 3 436 81.1% 11 902 11 354 4.8%
Depreciation and amortization -1 919 -1 735 10.6% -7 226 -7 029 2.8%
Operating result (EBIT) 4 305 1 701 153.1% 4 676 4 325 8.1%
Net result 2 954 1 454 103.1% 3 083 2 959 4.2%
EPS, EUR (diluted) 0.21 0.11 90.6% 0.22 0.22 -2.3%
Personnel (on average) 1 652 1 498 10.3% 1 591 1 466 8.5%
EU
R m
illi
on
NETWORK SERVICES & SOLUTION SERVICES IN Q4/2015
Solution Services (software solutions & services):
EUR 25 124 (25 489) thousand, -1.4%;
Net sales increased versus Q3 in line with the seasonal trend
License sales declined 25% vs Q4 2014 (a similar pace to Q3)
SaaS sales grew 21.9% vs Q4 2014
Network Services (e-invoicing solutions & services):
EUR 14 086 (9 175) thousand, +53.5%;
Net Sales growth includes Procserve
Transaction volumes up 14.6% Q4 15 vs Q4 14
Transaction net sales up 16.8% Q4 15 vs Q4 14
Net sales by business in Q4/2015:
(25 642, -0.6 %) 4 000
6 000
8 000
10 000
12 000
14 000
16 000
NETWORK SERVICES
10 000
15 000
20 000
25 000
SOLUTIONS SERVICESEUR thousand
EXPENSES, FINANCING & INVESTMENTS
Operating expenses* amounted to EUR 122 442 thousand (110 813), +10.5%
Operating expenses include approximately EUR 3 500 thousand non-recurring expenses
R&D expenses amounted to EUR 20 748 thousand (17 680), 14.5% of net sales (13.8%)
Capitalized R&D expenses amounted to EUR 8 754 thousand (4 274)
The operating cash flow amounted to EUR 13 648 thousand (14 912)
Strong balance sheet with cash & cash equivalents amounting to EUR 33 238 thousand (28 954)
Disciplined investment in the business:Demonstrated ability
to scale the business
Opex growth kept lower
than net sales growth in
2015
*Operating expenses include employee benefits, depreciations & amortizations, and other operating expenses
FINANCIAL RESULTSQ4/2015 & 2015
FUTURE OUTLOOK
MARKET AND COMPETITIVE SITUATION ALLOWS ACCELERATING GROWTH
Extend cloud Purchase
to Pay leadership
Accelerate Network
growth
Unleash Financing
Services
Penetration still low but
accelerating
Network is the
foundation for value
added services
Fragmented standards,
Basware the largest
network, supporting all
Growth picking up in
key large markets
Demand moving rapidly
to cloud solutions
Basware is a
recognized market
leader
Alternative financing
services attracting
growing investment
Basware an early
leader, leveraging
network data
First solutions launched
NETWORK PURCHASE TO PAY FINANCING SERVICES
KEY 2016-2018 PRIORITIES FOR TAKING THE NEXT STEP
Extend cloud
Purchase to Pay
leadership
Accelerate
Network growth
Unleash
Financing
Services
1. Accelerating all three businesses:
2. Supported and enabled by:
Further
shortening of
delivery times
Investing in
demand
generation
and sales
Scalable
company
infrastructure
BASWARE OUTLOOK FOR 2016
SaaS revenue expected to grow; strong growth of Basware
Commerce Network to be sustained
Continued increase in recurring revenue to outpace
progressive slowdown in license revenues
Temporary pressure on margins driven by growth investments
• Growth related operating investments expected to
amount to approximately EUR 20 million
• EBITDA excluding non-recurring items at break-even
Disciplined acquisition strategy continues in the e-invoicing
key markets; in Europe & US
Operating investments
to be accelerated
Expanding sales and
marketing & go-to-market
capabilities
R&D capability and other
investments to shorten
implementation
Supporting development of
Financing Services offering
Organic revenue growth of 5 percent or more:
MORE INFORMATION:
www.basware.com/investors
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www.linkedin.com/company/basware
Q1 INTERIM REPORT ON APRIL 19, 2016
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