FINANCIAL RESULTS Q ESA TIHILÄ, CEO NICLAS ROSENLEW, CFO JULY 19, 2016

Transcription

1 FINANCIAL RESULTS Q ESA TIHILÄ, CEO NICLAS ROSENLEW, CFO JULY 19, 2016

2 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. 2

3 CEO REVIEW ESA TIHILÄ

4 HUGE MARKET POTENTIAL FOR E-INVOICING 370 billion invoices annually, globally, 95% currently in paper and unstructured data format Current Total Addressable Market: 3 billion e-invoices, 1% of total E-invoice Other electronic formats Paper and unstructured data 4 Source: Management estimates, Billentis, EESPA. Covers B2B, B2G and B2C

5 BASWARE A LEADER IN GARTNER S MAGIC QUADRANT FOR PROCURE-TO-PAY SUITES P2P suite Leaders demonstrate a market-defining vision of how technology and services can help procurement establish, develop and maintain contract compliance and cost-effective processes for managing and controlling external spend. They have the ability to execute against their vision with products and services, and they have demonstrated results in the form of growth and customer satisfaction. Leaders successfully sell into multiple industries and multiple geographies. Leaders are often what other providers in the market measure themselves against, and they are the most likely vendors from this report to be in the P2P suite business five years from now. Source: Gartner (June 2016) *Gartner, Magic Quadrant for Procure-to-Pay Suites, Deborah R Wilson, Paolo Malinverno, Magnus Bergfors, Desere Edwards, 13 June 2016 This graphic was published by Gartner, Inc. as part of a larger research document and should be evaluated in the context of the entire document. The Gartner document is available upon request from Gartner does not endorse any vendor, product or service depicted in its research publications, and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner research publications consist of the opinions of Gartner's research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.

6 Q HIGHLIGHTS Strategy: Accelerate Network growth Extend cloud P2P leadership Unleash Financing Services Q Progress: 27.2 million Q2 Transactions (+15.7%) June record month at 9.2 million SaaS revenues +99.0% 27 new P2P SaaS deals closed (vs 19 in Q2 2015) Select customers live in Arrowgrass JV Focus on development work continues

7 CLOUD TRANSITION CONTINUED IN Q Cloud Revenues* Recurring Revenues** Q Progress: 42.4% Cloud vs 37.6% in Q % Recurring vs 68.7% in Q Announced 2018 Goal: 2/3rds Cloud 80% Recurring * 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, non-recurring consulting revenue and alliance fees

8 Q2 INVESTMENTS FOR THE STRATEGY Announced Growth Enablers: Investing in demand generation and sales Further shortening of delivery times Scalable company infrastructure Q Progress: Sales and marketing headcount up 19.6% Bulk of new sales and marketing hires now made 34 Alusta go-lives vs 15 in Q Express delivery for Alusta now available in select countries Progress on moving to public cloud infrastructure Continued focus on productivity

9 VERIAN INTEGRATING WELL Rationale Fit with strategy Integration progress Further strengthens Basware s market position in the US Stronger customer offering through enhanced e- procurement Extends Basware s network Focus on key markets Expanding to midmarket customers Growing cloud revenues First cross-sell deals already achieved: Network Verian procurement and Alusta Tehseen Dahya, former Verian CEO appointed Head of Basware US

10 FINANCIAL REVIEW NICLAS ROSENLEW

11 KEY GUIDANCE METRICS (EUR Thousands) Q Q Change H H Change Reported Net Sales % % 6.4% Net Sales growth (1.5% organic) in Q Organic Net Sales Organic Net Sales at Constant Currencies % % (EUR Thousands) Q Q H H Reported EBITDA Total Adjustments Adjusted EBITDA

12 Q NET SALES PROGRESSION SaaS growth accelerated at 34.5% organic, 99.0% total Transaction services revenue increased 3.3%; differences vs transaction volume driven by timing of billing Overall growth impacted by the decline in license sales, maintenance and consulting EUR thousand Q Q Change Transaction services % SaaS % Consulting services % Maintenance % License sales Other revenue % % Group total %

13 Q2 OPERATING EXPENSES AND INVESTMENTS Operating Expenses increased by EUR 6.1m versus Q Sales and marketing headcount grew 19.6% compared to 12.4% for group headcount R&D Expenses accounted for 14.8% of sales versus 14.0% in Q While investing for growth, focus on efficiency of the cost base continued EUR thousand Q Q Change Employee Benefit Expenses % Other Operating Expenses % Depreciation and Amortization % Total Operating Expenses % Materials and Services % R&D Expenses % Capitalised R&D % Personnel % * Operating expenses include employee benefits, depreciations & amortizations, and other operating expenses

14 Q2 CASHFLOW AND BALANCE SHEET Cashflow from operating activities was EUR m in Q2 Cashflow was impacted by the increase in growth investments Cash position continues to be strong, with EUR 21.8 m of cash and cash equivalents Decrease in cash position compared to Q related to acqusitions of Procserve and Verian and growth related investments (EUR Thousands) Q Q Cash flows from operating activities Net change in cash and cash equivalents Cash and cash equivalents* * Includes short term deposits

15 KEY GROUP REPORTED FINANCIALS EUR thousand Q Q Change Net sales % Material and services % Personnel expenses % Other operating expenses % EBITDA Depreciation and amortization % Operating result (EBIT) % Net result % EPS, EUR (diluted) %

16 OUTLOOK ESA TIHILÄ

17 2016 FULL YEAR OUTLOOK Organic revenue growth at constant currencies of 5 percent or more SaaS revenue expected to grow; strong growth of Basware s 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 Adjusted EBITDA at break-even Disciplined acquisition strategy continues in the e-invoicing key markets; in Europe & US

18 Q SUMMARY HIGHLIGHTS Financials Sales momentum Investing in growth Transition to cloud + 1.5% Organic revenue growth at constant currencies % total SaaS revenue growth % Sales and Marketing headcount 42.4% Cloud Revenues Adjusted EBITDA EUR K % Network transaction volume growth Bulk of new sales and marketing hires made 27.2 million Transactions

19 NEXT REPORT Q3 INTERIM REPORT ON OCTOBER 19, 2016 MORE INFORMATION: