SIMPLIFY OPERATIONS, SPEND SMARTERHandelsbanken Mid Cap Seminar

7 June 2017

IMPORTANT NOTICEThe 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.

WHAT WE DO

• We help our customers simplify operations and spend smarter

• We do this by automating their procurement and finance processes

• This helps customers increase efficiencies and reduce unnecessary spend

KEY FACTS

• Net sales €149m in 2016

• Supporting customers in > 100 countries

• Offices in Europe, the US and Asia-Pacific

• 1800+ Empoyees

MARKET LEADER

• Largest e-invoicing network in the world

• Number one in accounts payable automation

• Top 3 in procurement

• Cloud based solutions

BASWARE IN BRIEF

WHY INVEST IN BASWARE?

HUGE MARKET OPPORTUNITY

THE MARKET LEADER

CLOUD FOCUSED STRATEGY

THE PROCESS WE HELP CUSTOMERS IMPROVE

Choose supplier and products

Shop

Approve

NETWORKED SOURCE TO PAY

Receive Match

Order Invoice Pay

Sourcing Procurement Accounts payable automation Pay

PROCESS INEFFICENCY

EXCESSIVE SPENDING

THE PROBLEMS WE HELP OUR CUSTOMERS SOLVE

WORKING CAPITAL

INCREASE EFFICIENCY

MANAGE SPEND

RELEASE CASH FROM OPERATIONS

OUR END-TO-END SOLUTION HELPS CUSTOMERS

HUGE MARKET OPPORTUNITY

EVERY ORGANISATION NEEDS OUR HELP

(1) Annual spend on source-to-pay and e-invoicing network services for key, corporate, SMB medium and public sector customers in Europe and North America. Source: Basware, Forrester, Gartner, Billentis, EESPA

8

UNDERPENETRATED MARKET

Structural growth drivers include:

• Digitalisation

• Automation

• Public Sector Initiatives EUR 149 million Basware 2016 revenues

EUR 3.5 billion

Current market(1)

EUR 15 billionMarket potential(1)

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Leader with highest score for Geographic Strategy

“a pioneer in the open B2B network approach…

it attained our highest score for e-invoicing”

MAGIC QUADRANT FOR PROCURE TO PAY SUITES 2016“an impressive company that offers a leading

solution among global P2P providers”

PROCURE TO PAY NAVIGATOR 2016

Leader with highest score for Adaptability

“a particularly strong fit for enterprises that want

to automate processing of high invoice volumes”

Leader with highest score for

invoice automation

2017

BASWARE IS A RECOGNIZED MARKET LEADER

CHOSEN BY CUSTOMERS ACROSS THE WORLD AND ACROSS INDUSTRIES

10

• >1 million organisations connected to our Network

• 2500+ large customers use our P2P software

FINANCE / PROFESSIONAL PUBLIC SECTOR

TELCO / MEDIA

SERVICES TRANSPORT / LODGING

MANUFACTURING FOOD / BEVERAGE ENERGY / UTILITY

HEALTHCARE / PHARMA AUTOMOTIVE

INDUSTRIALS

RETAIL

COMPETITIVE DIFFERENTIATORS

Geographical reach

World’s largest e-invoicing network

Innovation

End-to-end solution

OPEN NETWORK IS DIFFERENTIATOR

12

HugeData Asset

Largeste-invoicing network

>100 millionTransactions

annually

>EUR 500 billionannual spend on

Basware’s network

Open Network Philosophy

220+interoperability

partners

1M+Active buyers and

suppliers

Multi-lingual, Multi-format

>70eInvoice formats

supported

VAT compliance

in more than 50countries

Global Trusted Partner

Used in more

than 100countries

Connected to main

governmenthubs

13

Geographies where Basware supports customers

Basware supports

customers in more

than

100Countries

GEOGRAPHICAL AND INDUSTRYREACH IS DIFFERENTIATOR

OUR 2020 STRATEGIC GOALS:

BASWARE’S STRATEGIC AMBITION

14

Cloud revenue growth

>20% CAGR

on an organic basis

Annual net sales

>EUR 220 million

Recurring revenue

~ 80% of net sales

* Cloud revenue includes transactions services, SaaS and other subscription and financing services revenue excluding alliance fees

** Recurring revenue consists of net sales excluding license sales, consulting revenue related to deliveries, and alliance fees

Continue to improve underlying profitability

We provide

market leading,

cloud based,

innovative

Networked

Source to Pay

and value added

services

OUR STRATEGIC PRIORITY:WHAT WE DO:

Cloud Revenue

Growth

HOW BASWARE WILL SEIZE THE OPPORTUNITY

15

Grow the Network

Extend P2P Leadership

Expand Value Added Services

Customer experience

High performance

culture

Integrated & high-quality

offering

Sales & Marketing

effectivenessOperational excellenceInnovation

Cloud Revenue

Growth

NON-CLOUDENABLED BY

TWO ENGINES OF GROWTH

0

10

20

30

40

50

60

70

80

90

100

2013 2014 2015 2016

0

10

20

30

40

50

60

70

2013 2014 2015 2016N

et S

ales

, EU

R m

illio

ns

• Consulting• Maintenance• Licence

• SaaS• Transaction Services• Value Added Services

CLOUD

SHIFT IN REVENUE MIX SUPPORTS FUTURE GROWTH ACCELERATION

2017 Q12013

20162010

Cloud

Non-Cloud

Other International

US, UK, Germany

Finland

International

Business Growing

Cloud Revenues

More Than 50%

STRONG SUBSCRIPTION ORDER INTAKE

0.0

0.5

1.0

1.5

2.0

2.5

3.0

Q1 2016 Q1 2017

EUR

m

• Investments in sales and marketing delivered strong order intake

• Time lag to visibility in revenues

Subscription annual recurring revenue gross order intake is calculated by summing the total order intake in the period expressed as an annual contract value. This includes SaaS and other subscription types. Per transaction cloud revenue is not included. Gross new order intake covers new cloud customers, add-ons and renewal uplifts but excludes churn. There will be a time lag before this order intake is visible in net sales.

Matching Share Plan

Performance Share Plan

Restricted Share Plan

MANAGEMENT ALIGNED WITH SHAREHOLDERS

2% OF BASWARE’S

SHARE CAPITAL

20

Huge Market Opportunity

THE Market Leader

Cloud FocusedStrategy

WHY INVEST IN BASWARE?

APPENDIX

ACQUISITIONS SUPPORT BASWARE STRATEGY

22

WITH M&A OUR PRIORITIES ARE...

• Extend Basware Network

• Consolidate P2P competition

• Strengthen our offering

• Focus on key markets

OUR KEY CRITERIA INCLUDES...

• High share of cloud revenues

• Visible revenue synergy

opportunity

• Profitable or clear path to

profitability

• Substantial benefits to customers

DISCIPLINED APPROACH TO ACQUISITIONS

Year Company Country Key rationale

2016 Verian US Strengthen market position in the US. Extend Network to Verian customers.

Strengthen eProcurement

2015 Procserve UK Access to UK public sector customers to leverage the eInvoicing opportunity

2013 Certipost Benelux Gain a significant position in the Benelux e-Invoicing market

2012 1st BP Germany Become a leading e-Invoice operator in Germany

NET SALES BY REVENUE TYPE

Net sales by revenue type (EUR thousand)

Q1 2017

Q1 2016 Change

FY 2016

FY2015 Change

Clou

dR

even

ueSaaS 7 417 3 563 108% 22 975 11 811 95%

Transaction services 9 637 8 430 14% 35 996 33 256 8%

Other cloud revenue 1 442 2 365 -39% 7 270 7 150 2%

Cloud Revenue total 18 497 14 358 29% 66 242 52 217 27%

Non

-Clo

ud

Rev

enue

Maintenance 9 849 10 132 -3% 40 761 41 664 -2%

License sales 900 1 501 -40% 7 188 10 921 -34%

Consulting services 7 482 8 117 -8% 34 389 35 616 -3%

Other non-cloud revenue 73 17 0 2992

Non-Cloud Revenue total 18 304 19 767 -7% 82 338 91 193 -10%

Group Total 36 801 34 125 8% 148 580 143 410 4%

PROFITABILITY

(EUR thousand) Q1 2017

Q1 2016

Change FY 2016

FY2015 Change

Net Sales 36 801 34 125 8% 148 580 143 410 4%

Material and Services -3 734 -3 611 3% -15 746 -16 396 -4%

Personnel Expenses -26 459 -23 848 11% -104 600 -85 726 22%

Other Operating Expenses -9 108 -7 533 21% -33 631 -29 490 14%

Total costs and expenses excluding depreciation

-39 301 -34 992 12% -153 977 -131 612 17%

Reported EBITDA -2 500 -867 188% -5 394 11 902

Adjustments to EBITDA 898 350 157% 7 456 219

Adjusted EBITDA -1 602 -517 210% 2 063 12 121 -83%

THE SAAS TRANSITION: LOWER UPFRONT BUT HIGHER RECURRING REVENUES

Year 1 Year 2 Year 3 Year 4 Year 5

License and Maintenance

Year 1 Year 2 Year 3 Year 4 Year 5

SaaS

Year 1 Year 2 Year 3 Year 4 Year 5

License & Maintenance SaaS

Year 2 Year 3 Year 4 Year 5

Maintenance SaaS

On-Premise Deal:

Upfront License Payment

+ Annual Maintenance Payments

SaaS Deal:

Monthly Payments

Cumulative Revenues from Year 1

Cumulative Revenues from Year 2

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• Online shopping experience

• Items on contract• All orders captured

• I came in 12% under budget!• Woohoo – I am in the leader

position in savings!• I received it!• I can tell the system

“I got my stuff easily and quickly, and I didn’t need to know procurement to do it. And I feel good about

helping the company, too.”

• Special order requests

• Automated calculations

• I know where my order is• I know who to ping

THE BASWARE EXPERIENCEEMPLOYEE REQUESTER

“I need something.”

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“I know whether I should approve this – the relevant budget, policy, and trends are right

there for me.”

• Accessible from my smartphone

• On the Go Approvals• Detailed Emails• Relevant Intelligence• Actionable Links

• Easy access to actionable items

• Budget Summary• Transaction Impact• Committed Funds• Expensed Amounts

THE BASWARE EXPERIENCETHE APPROVER

27

• Track spending to budgets• See committed funds

• See controlled vs. uncontrolled spending

• Track hard dollar tangible results

“We are driving margin through our disciplined use of financial resources. We

are much more efficient.”

THE BASWARE EXPERIENCETHE EXECUTIVE

• I have data at my fingertips as I plan for next year

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• Invoices enter

system

automatically

“We are able to do our job faster and more

accurately. With added visibility, monthly

accruals are a snap.”

• Visualize the AP

Workflow

• Automatic matching

of invoices to

receipts to POs

• Only intervene where

discrepancies are

flagged

• Flexible tolerances for

intervention

• Automated status to suppliers through self service

• Automate payment of recurring invoices

THE BASWARE EXPERIENCEAP ENTRY CLERK

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PAPER INVOICE EXAMPLESDIFFERENT FIELDS, LAYOUTS, LANGUAGES

30

E-INVOICE EXAMPLESTRUCTURED DATA, MACHINE READABLE

Extr

act

from

XM

L Fo

rmat

E-I

nvoi

ce:

Acco

mpa

nyin

g Im

age

Conv

ersi

on:

Note: Customer details blacked out31