SIMPLIFY OPERATIONS, SPEND SMARTER. Handelsbanken Mid Cap Seminar 7 June 2017

Transcription

1 SIMPLIFY OPERATIONS, SPEND SMARTER Handelsbanken Mid Cap Seminar 7 June 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 forwardlooking 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 BASWARE IN BRIEF 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 MARKET LEADER Largest e-invoicing network in the world Number one in accounts payable automation Top 3 in procurement Cloud based solutions KEY FACTS Net sales 149m in 2016 Supporting customers in > 100 countries Offices in Europe, the US and Asia-Pacific Empoyees

4 WHY INVEST IN BASWARE? HUGE MARKET OPPORTUNITY THE MARKET LEADER CLOUD FOCUSED STRATEGY

5 THE PROCESS WE HELP CUSTOMERS IMPROVE Choose supplier and products Approve Receive Match Shop Order Invoice Pay Sourcing Procurement Accounts payable automation Pay NETWORKED SOURCE TO PAY

6 THE PROBLEMS WE HELP OUR CUSTOMERS SOLVE PROCESS INEFFICENCY EXCESSIVE SPENDING WORKING CAPITAL

7 OUR END-TO-END SOLUTION HELPS CUSTOMERS INCREASE EFFICIENCY MANAGE SPEND RELEASE CASH FROM OPERATIONS

8 EVERY ORGANISATION NEEDS OUR HELP UNDERPENETRATED MARKET HUGE MARKET OPPORTUNITY Structural growth drivers include: Digitalisation EUR 15 billion Market potential (1) Automation Public Sector Initiatives EUR 149 million Basware 2016 revenues 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 8

9 BASWARE IS A RECOGNIZED MARKET LEADER 2017 PROCURE TO PAY NAVIGATOR 2016 Leader with highest score for Adaptability an impressive company that offers a leading solution among global P2P providers MAGIC QUADRANT FOR PROCURE TO PAY SUITES 2016 Leader with highest score for Geographic Strategy a pioneer in the open B2B network approach it attained our highest score for e-invoicing Leader with highest score for invoice automation a particularly strong fit for enterprises that want to automate processing of high invoice volumes 9

10 CHOSEN BY CUSTOMERS ACROSS THE WORLD AND ACROSS INDUSTRIES MANUFACTURING FOOD / BEVERAGE ENERGY / UTILITY TELCO / MEDIA HEALTHCARE / PHARMA AUTOMOTIVE >1 million organisations connected to our Network SERVICES RETAIL INDUSTRIALS FINANCE / PROFESSIONAL TRANSPORT / LODGING PUBLIC SECTOR large customers use our P2P software 10

11 COMPETITIVE DIFFERENTIATORS World s largest e-invoicing network Geographical reach Innovation End-to-end solution

12 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 >EUR 500 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 12

13 GEOGRAPHICAL AND INDUSTRY REACH IS DIFFERENTIATOR Basware supports customers in more than 100 Countries Geographies where Basware supports customers 13

14 BASWARE S STRATEGIC AMBITION WHAT WE DO: We provide market leading, cloud based, innovative Networked Source to Pay and value added services OUR STRATEGIC PRIORITY: Cloud Revenue Growth OUR 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 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 15

16 Net Sales, EUR millions TWO ENGINES OF GROWTH CLOUD ENABLED BY NON-CLOUD SaaS Transaction Services Value Added Services Consulting Maintenance Licence

17 SHIFT IN REVENUE MIX SUPPORTS FUTURE GROWTH ACCELERATION Q1 Cloud Revenues More Than 50% Cloud Non-Cloud US, UK, Germany International Business Growing Other International Finland

18 EUR m STRONG SUBSCRIPTION ORDER INTAKE Investments in sales and marketing delivered strong order intake Time lag to visibility in revenues Q Q 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.

19 MANAGEMENT ALIGNED WITH SHAREHOLDERS 2% OF BASWARE S SHARE CAPITAL Matching Share Plan Performance Share Plan Restricted Share Plan

20 WHY INVEST IN BASWARE? Huge Market Opportunity THE Market Leader Cloud Focused Strategy 20

21 APPENDIX

22 ACQUISITIONS SUPPORT BASWARE STRATEGY 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 st BP Germany Become a leading e-invoice operator in Germany 22

23 Non-Cloud Revenue Cloud Revenue NET SALES BY REVENUE TYPE Net sales by revenue type (EUR thousand) Q Q Change FY 2016 FY 2015 Change SaaS % % Transaction services % % Other cloud revenue % % Cloud Revenue total % % Maintenance % % License sales % % Consulting services % % Other non-cloud revenue Non-Cloud Revenue total % % Group Total % %

24 PROFITABILITY (EUR thousand) Q Q Change FY 2016 FY 2015 Change Net Sales % % Material and Services % % Personnel Expenses % % Other Operating Expenses % % Total costs and expenses excluding depreciation % % Reported EBITDA % Adjustments to EBITDA % Adjusted EBITDA % %

25 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 25

26 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 26

27 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 27

28 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 28

29 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 29

30 PAPER INVOICE EXAMPLES DIFFERENT FIELDS, LAYOUTS, LANGUAGES 30

31 Extract from XML Format E-Invoice: Accompanying Image Conversion: E-INVOICE EXAMPLE STRUCTURED DATA, MACHINE READABLE Note: Customer details blacked out 31

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