SIMPLIFY OPERATIONS, SPEND SMARTER FEBRUARY 2017

Transcription

1 SIMPLIFY OPERATIONS, SPEND SMARTER FEBRUARY 2017

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.

3 WHY BASWARE Huge Market Opportunity THE Market Leader Cloud Focused Strategy 3

4 SIMPLIFY OPERATIONS, SPEND SMARTER The Problem The Solution Uncontrolled spending Inefficient manual processes Poor cash flow visibility Connect Manage Optimize 4

5 HELPING OUR CUSTOMERS REALIZE TOMORROW S FINANCIAL GOALS TODAY >1 million organisations connected to our Network large customers use our P2P software 60% 66% cost savings Hitting on-time payment target rate of over 85% straight through invoice processing 500,000 E-invoices delivered annually Delayed/denied $457,000 on $7.6 million in spend Process over 90% of invoices without any manual intervention 450,000 direct cost savings 40% Reduction in AP headcount 75% Reduction of paper 176,000 annual savings Reduced invoicing costs by 75% Receive 97% of invoices as electronic invoices 60% e-invoicing 5

6 MEGA TRENDS DRIVING DEMAND FOR BASWARE S SERVICES Digitalisation Open Networks Big Data e-commerce Robotics and AI Public Sector Initiatives Disruption of Traditional Financing Models Automation 6

7 SIGNIFICANT MARKET OPPORTUNITY Underpenetrated market is global leader Largest e-invoicing network No. 1 in Accounts Payable Top 3 in Procurement Competition is fragmented EUR 149 million Basware 2016 revenues EUR 15 billion Market potential (1) EUR 3.5 billion Current market (1) (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 7

8 RECOGNIZED MARKET LEADER Procure to Pay Navigator 2016 Leader with highest score for Adaptability Basware scores highest in five categories an impressive company that offers a leading solution among global P2P providers 8

9 OPEN NETWORK IS DIFFERENTIATOR Largest e-invoicing network Open Network Philosophy Multi-lingual, Multi-format Global Trusted Partner >100 million Transactions annually 220+ interoperability partners >70 einvoice formats supported Used in more than 100 countries >EUR500 billion annual spend on Basware s network 1M+ Active buyers and suppliers VAT compliance in more than 50 countries Connected to main government hubs Huge Data Asset 9

10 GEOGRAPHICAL AND INDUSTRY REACH IS DIFFERENTIATOR Supporting customers in all industries Across the globe Manufacturing Food / Beverage Energy / Utility Telco / Media Healthcare / Pharma Automotive Services Industrials Transport / Lodging Retail Finance / Professional Public Sector Geographies where Basware supports customers 10

11 INNOVATION IS DIFFERENTIATOR Basware is a Visionary We invented networked P2P and have continued to innovate since then, leading the market and maintaining our product superiority. Invents P2P software Creates its e-invoicing network to enable true AP automation Recognized by industry analysts as a leader in providing analytics for customers Expands value added services to utilize Basware s huge network data asset 11

12 END-TO-END SOLUTION IS DIFFERENTIATOR NETWORK / E-INVOICING AP AUTOMATION ANALYTICS WePROCUREMENT FINANCING SERVICES Stronger relationships Foundation for sustainable growth 100% e-invoicing from day one Increased productivity Streamlined processes Automate all invoices from all systems Analytics & KPIs Complete spend visibility Higher compliance Risk mitigation Direct and indirect spend Consumer experience Collaboration with AP and suppliers New savings opportunities Eliminate payment friction Improved DSO, DPO, net operating income and return on capital More cash for growth CONNECT MANAGE OPTIMIZE 12

13 HOW BASWARE WILL SEIZE THE OPPORTUNITY Sales & Marketing effectiveness High performance culture Customer experience Integrated & high-quality offering Innovation Operational excellence Extend P2P Leadership Grow the Network Expand Value Added Services Cloud Revenue Growth 13

14 2020 STRATEGY GOALS Strategic Priority Cloud Revenue Growth 2020 Strategic Goals Cloud revenue growth >20% CAGR on an organic basis Annual net sales >EUR 220 million Recurring revenue ~ 80% of net sales Continue to improve underlying profitability * 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 14

15 Net Sales, EUR millions STRONG CLOUD GROWTH TOTAL REVENUES IMPACTED BY TRANSITION Cloud Non-Cloud Total = SaaS Transaction Services Other Cloud Maintenance License Consulting Other Non-Cloud 15

16 SHIFT IN REVENUE MIX SUPPORTS FUTURE GROWTH ACCELERATION Q4 Cloud Cloud Revenues Approaching 50% Non-Cloud Q4 US, UK, Germany International Business Growing Other International Finland

17 R&D as % of Net Sales Net Operating Cashflow (EURm) Adjusted EBITDA (EURm) HISTORICALLY PROFITABLE & CASH GENERATIVE 20 Sales and marketing expansion + Ongoing investments in product development = % Impact on 2016 profitability 10% 0% R&D (expensed) R&D (capitalized) 17

18 ACQUISITIONS SUPPORT BASWARE STRATEGY WITH M&A OUR PRIORITIES ARE... Extend Basware Network Consolidate P2P competition Strengthen our offering Focus on key markets DISCIPLINED APPROACH TO ACQUISITIONS Year Company Country Key rationale OUR KEY CRITERIA INCLUDES... High share of cloud revenues Visible revenue synergy opportunity Profitable or clear path to profitability Substantial benefits to customers 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 st BP Germany Become a leading e-invoice operator in Germany 18

19 WHY BASWARE Huge Market Opportunity THE Market Leader Cloud Focused Strategy 19

20 APPENDIX SUPPORTING MATERIALS

21 THE SAAS TRANSITION: LOWER UPFRONT BUT HIGHER RECURRING REVENUES On-Premise Deal: Upfront License Payment + Annual Maintenance Payments Cumulative Revenues from Year 1 Year 1 Year 2 Year 3 Year 4 Year 5 Year 1 Year 2 Year 3 Year 4 Year 5 License and Maintenance License & Maintenance SaaS SaaS Deal: Monthly Payments Cumulative Revenues from Year 2 Year 1 Year 2 Year 3 Year 4 Year 5 SaaS Year 2 Year 3 Year 4 Year 5 Maintenance SaaS 21

22 THE BASWARE EXPERIENCE EMPLOYEE REQUESTER I need something. Online shopping experience Items on contract All orders captured Special order requests Automated calculations 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. I came in 12% under budget! Woohoo I am in the leader position in savings! I received it! I can tell the system I know where my order is I know who to ping 22

23 THE BASWARE EXPERIENCE THE APPROVER Accessible from my smartphone On the Go Approvals Detailed s Relevant Intelligence Actionable Links Budget Summary Transaction Impact Committed Funds Expensed Amounts I know whether I should approve this the relevant budget, policy, and trends are right there for me. Easy access to actionable items 23

24 THE BASWARE EXPERIENCE THE EXECUTIVE Track spending to budgets See committed funds I have data at my fingertips as I plan for next year We are driving margin through our disciplined use of financial resources. We are much more efficient. See controlled vs. uncontrolled spending Track hard dollar tangible results 24

25 THE BASWARE EXPERIENCE AP ENTRY CLERK Invoices enter system automatically Visualize the AP Workflow Automatic matching of invoices to receipts to POs We are able to do our job faster and more accurately. With added visibility, monthly accruals are a snap. Automated status to suppliers through self service Automate payment of recurring invoices Only intervene where discrepancies are flagged Flexible tolerances for intervention 25

26 PAPER INVOICE EXAMPLES DIFFERENT FIELDS, LAYOUTS, LANGUAGES 26

27 Extract from XML Format E-Invoice: Accompanying Image Conversion: E-INVOICE EXAMPLE STRUCTURED DATA, MACHINE READABLE Note: Customer details blacked out 27

28 MORE INFORMATION FOR INVESTORS BASWARE RESEARCH REPORTS