CARNEGIE IT SEMINAR VESA TYKKYLÄINEN, CEO HELSINKI, 24 NOVEMBER 2016

Transcription

1 CARNEGIE IT SEMINAR VESA TYKKYLÄINEN, CEO HELSINKI, 24 NOVEMBER 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 WHY BASWARE Huge market opportunity THE market leader Cloud focused strategy

4 MEGA TRENDS DRIVING DEMAND FOR BASWARE S SERVICES Digitalisation Automation e-commerce Disruption of Traditional Financing Models Open Networks Public Sector Initiatives EXCITING AND GROWING MARKET OPPORTUNITY

5 REGULATION IN THE EU AND THE U.S. PUSHING E-INVOICING PENETRATION EU and US public sector mandated to support e-invoicing from end 2018 More than 50 governments pushing e-invoicing Cut costs Increases tax income Reduces fraud 65% of businesses supply the public sector = 14 million companies in the EU alone 5

6 MARKET POTENTIAL FOR NETWORKED P2P 370 billion invoices annually, globally, 95% currently in paper format Current Total Addressable Market: 3 billion e-invoices, 1% of total Future Potential: 100% e-invoices E-invoice Other electronic formats Paper and unstructured data 6 Source: Management estimates, Billentis, EESPA. Covers B2B, B2G and B2C

7 GLOBAL LEADER IN A FRAGMENTED MARKET Network Purchase to Pay Financing Services #1 e-invoicing operator globally #1 in Accounts Payable and Top 3 in Procurement Nascent market 3% share of addressable market 7% share of addressable market Nascent market Very few global competitors Multiple small local competitors Global competition from ERP providers Smaller local providers Offering is unique in breadth Competition depends on customer size

8 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 costeffective 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.

9 WE HELP CUSTOMERS DO THREE THINGS Connect Manage Optimize Simplify and automate Eliminate paper Strengthen supplier relationships Navigate regulatory complexity Improve data accuracy Deliver financial insights to the business Improve collaboration Control margins and spend Tap into supplier innovation Drive cost savings and efficiency Drive growth and operational excellence Create competitive advantage Minimize business risk Reduce supply chain risk Improve cash flow Optimize working capital

10 END-TO-END SOLUTION UNLOCKS VALUE UNLOCK CASH FLOW TRANSFORM PROCUREMENT Basware Network SUPPLIERS SUPPLIERS OPTIMIZE INDIRECT & DIRECT INVOICE PROCESSING

11 SUCCESS ENABLER: OPEN BASWARE NETWORK Basware Network is the largest open e-invoicing network globally, powered by over 220 interoperability network partners and over 1M buyers and sellers One single connection, the most cost-effective way of communication Basware automatically converts invoices to the end format required Suppliers can reach a large number of customers using our interoperable network partners Global trusted partner: multi-lingual, multiformat and connected to main government hubs

12 The Basware solution has proved incredibly flexible, providing a seamless integration with our existing systems. Ed Prins Financial Services Manager

13 Actions To Enable Strategy HOW BASWARE WILL GRAB THE OPPORTUNITY Strategic Priority Cloud Revenue Growth Continue to strengthen sales and marketing Focus on Customer Success Grow and monetize network and data assets with value added services including financing Increase productivity by simplifying our operations and increasing scalability Evolve our culture and way of working to focus more on performance

14 CLOUD REVENUES APPROACHING 50% Q3 Cloud Revenues Drive Growth SaaS Transaction Services Financing Services (excl. alliance fees) Other subscription revenues Other Revenues Enable Cloud Growth Maintenance Licenses Consulting

15 2020 STRATEGY GOALS Strategic Priority Strategic Goals Cloud revenue growth >20% CAGR on an organic basis Cloud revenue growth 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

16 WHY BASWARE Huge market opportunity THE market leader Cloud focused strategy

17 NEXT REPORT Q4 INTERIM REPORT ON FEBRUARY 1, 2017 MORE INFORMATION: