UNLOCKING VALUEIN THE WORLD OF CONNECTED COMMERCE

BASWARE'S AGM 2015

BASWARE OYJ:N VARSINAINEN YHTIÖKOKOUS

13.2.2015

BASWARE’S ANNUAL GENERAL MEETING

on February 13, 2015

UNLOCKING VALUEIN THE WORLD OF CONNECTED COMMERCE

BASWARE'S AGM 2015

TOIMITUSJOHTAJAN KATSAUS

CEO’S REVIEW

OUR HISTORY

Founded 1985

Publicly listed 2000

Ranked constantly among

leaders in P2P and e-

invoicing vendors by

leading independent

research companies

Offices in Europe, the US,

and Asia-Pacific

CORPORATE

PERFORMANCE

BASWARE COMMERCE NETWORK

Net sales > €127.7m

in 2014

Millions of business users

in 1 000 000 organizations

in > 100 countries

> 80m e-invoices/POS

$500b total annual

spend across network

> 1 million active buyers

and suppliers

BASWARE TODAYScale, performance and established leadership credentials in e-invoicing

and purchase to pay solutions, on an international scale.

BASWARE'S AGM 2015

• Network Services grew throughout 2014

• Software sales halt declined during H2

• Share of recurring revenue and

international net sales & international

share of net sales grew

• New Basware Financing Services

business announced

• Directed share issue to international

institutional investors

Over 78 million

transactions

processed via

Basware Commerce

Network in 2014,

up +30.0 %

BASWARE'S AGM 2015

KEY EVENTS IN 2014Network Services business grew well and software sales

developed favorably.

EUR thousand Q4 2014 Q4 2013 YoY 2014 2013 YoY

Net sales 34 664 33 049 4.9% 127 674 123 349 3.5%

Material and services -3 559 -3 265 9.0% -12 796 -11 761 8.8%

Personnel expenses -20 803 -19 327 7.6% -77 779 -76 919 1.1%

Depreciation and amortization -1 735 -1 748 -0.7% -7 029 -7 052 -0.3%

Other operating expenses -6 865 -6 751 1.7% -26 004 -26 200 -0.7%

Operating profit (EBIT) 1 701 2 131 -20.2% 4 325 3 331 29.8%

Net Profit 1 454 2 255 -35.5% 2 959 2 605 13.6%

EPS, EUR (diluted) 0.11 0.18 -39.2% 0.22 0.20 11.4%

Personnel 1 498 1 478 1.4% 1 466 1 485 -1.3%

2,1 0,3 1,2 1,2 1,7

33,0 31,0 31,8

30,2

34,7

0,0

5,0

10,0

15,0

20,0

25,0

30,0

35,0

40,0

Q4/2013 Q1/2014 Q2/2014 Q3/2014 Q4/2014

Operating profit by quarter Net sales by quarter

BASWARE GROUP

Note: Personnel expenses and other OPEX=Fixed costs

11,8 13,5 12,38,3 3,3 4,3

92,7103,1 107,8

113,7123,3 127,7

0,0

20,0

40,0

60,0

80,0

100,0

120,0

140,0

2009 2010 2011 2012 2013 2014

Operating profit (EUR million) Net sales (EUR million)

BASWARE'S AGM 2015

0,02,04,06,08,0

10,012,014,016,018,020,022,024,0

Q1 Q2 Q3 Q4

2010 2011 2012 2013 2014Million

transactions

The transaction volume

continued to grow

during the last quarter,

amounting to 21.8

million, growth of

25.6 %

In 2014, more than 78

million transactions

were processed via

Basware Commerce

Network, a growth of

30.0 %

BASWARE'S AGM 2015

GROWTH OF TRANSACTION VOLUMES

2010-2014

EUR thousand

The share of

recurring revenue

of net sales

increased to 67.0 %

(63.8 %) in 2014

35,0 %

40,0 %

45,0 %

50,0 %

55,0 %

60,0 %

65,0 %

70,0 %

0

5 000

10 000

15 000

20 000

25 000

30 000

35 000

40 000

Q1/1

0

Q2/1

0

Q3/1

0

Q4/1

0

Q1/1

1

Q2/1

1

Q3/1

1

Q4/1

1

Q1/1

2

Q2/1

2

Q3/1

2

Q4/1

2

Q1/1

3

Q2/1

3

Q3/1

3

Q4/1

3

Q1/1

4

Q2/1

4

Q3/1

4

Q4/1

4

Net sales

Share of recurring

revenue, rolling 4

quarters average

BASWARE'S AGM 2015

SHARE OF RECURRING REVENUE,

ROLLING 12 MONTHS AVERAGE

SAAS VERSUS LICENSE SALES DYNAMICS

0 %

10 %

20 %

30 %

40 %

50 %

60 %

70 %

80 %

90 %

100 %

2007 2008 2009 2010 2011 2012 2013 2014

License salesSaaS

-12%

-10%

-8%

-6%

-4%

-2%

0%

2%

2011 2012 2013 2014

Combined SaaS & license sales y-o-y

BASWARE'S AGM 2015

STRATEGIC FOCUS AREAS FOR 2015-2018

The largest business commerce network

Strengthen our market presence

Maximize transactions Win with Alusta

Create customers for life

Unleash financing

services

BASWARE'S AGM 2015

PRIORITIES AND OBJECTIVES

FOR OUR BUSINESSES IN 2015

• Drive Alusta to new &

current customers

• Shorten go-live times

• Optimize consulting

• Improve scalability

• Reach senders &

SMEs

• Network consolidation

• Successful first

customers

• Build sales capability

Solution

Services

Network

Services

Financing

Services

• High profitability

• Growing revenue

• Accelerated revenue

growth

• Improved profitability

• First revenue

BASWARE'S AGM 2015

INTRODUCINGFINANCING SERVICES

Supplier Buyer

Basware

Commerce

Network

PaymentDiscount

Timing Funding

Financial Engine

Pay

Dynamic

Discount

Factoring

Supplier

Discount

First products

launched

Next development

batch underway

World class

partnerships

being formed

1

2

3

2 1

3

KEY DRIVERS WITHIN

THE E-INVOICING INDUSTRY

1. E-invoicing is becoming more

commonplace & benefits

realized more widely

2. Continued push from governments

to adopt e-invoicing

3. E-commerce, open networks &

interoperability

4. Consolidation within the industry

5. Cash flow continues to be a

concern for businesses of all sizes

6. Companies’ interest in new online,

real-time payment alternatives

BASWARE'S AGM 2015

BASWARE COMMERCE NETWORK

SOLUTIONS FOR A CONNECTED WORLD

E-payments

Purchase-to-pay

Financing Services

Analytics

AP Automation

Travel & Expense

A best-in-class Purchase to Pay portfolio - helping businesses of all sizes

buy better, sell better and pay and be paid in new ways.

BASWARE'S AGM 2015

E-procurementE-invoicing

BASWARE MOVING FORWARDA unique platform for growth – open network, e-invoicing and purchase to pay solutions, value

added financing services, new partnerships and global expertise.

BASWARE'S AGM 2015

• Strong growth in Network Services by developing & automating the connection of buyers and suppliers to the e-invoicing service, by utilizing digital marketing and sales channels more extensively, and through acquisitions

• Sales of Alusta are expected to have a positive effect on software net sales and professional services.

• Fixed costs are expected to develop moderately. The company will invest more extensively in sales and marketing as well as research and development of new solutions and services in particular.

• Active analysis of acquisition targets especially in the e-invoicing market in Europe and in the U.S. will continue.

BASWARE'S AGM 2015

BASWARE OUTLOOK 2015Basware expects its net sales and operating profit (EBIT) for 2015

to grow compared to 2014:

FOR INVESTORS

www.basware.com

www.twitter.com/basware

www.linkedin.com/company/basware

www.facebook.com/BaswareCorporation

www.basware.fi/vuosikertomus

www.basware.fi/sijoittajat

www.basware.com/annualreport

www.basware.com/investors

SIJOITTAJILLE

BASWARE'S AGM 2015