UNLOCKING VALUE IN THE WORLD OF CONNECTED COMMERCE BASWARE OYJ:N VARSINAINEN YHTIÖKOKOUS 13.2.2015 BASWARE S ANNUAL GENERAL MEETING on February 13, 2015
UNLOCKING VALUE IN THE WORLD OF CONNECTED COMMERCE TOIMITUSJOHTAJAN KATSAUS CEO S REVIEW
BASWARE TODAY Scale, performance and established leadership credentials in e-invoicing and purchase to pay solutions, on an international scale. 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 Net sales > 127.7m in 2014 Millions of business users in 1 000 000 organizations in > 100 countries BASWARE COMMERCE NETWORK > 80m e-invoices/pos $500b total annual spend across network > 1 million active buyers and suppliers
KEY EVENTS IN 2014 Network Services business grew well and software sales developed favorably. 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 GROUP 40,0 35,0 30,0 25,0 20,0 15,0 10,0 5,0 0,0 33,0 34,7 31,0 31,8 30,2 2,1 0,3 1,2 1,2 1,7 Q4/2013 Q1/2014 Q2/2014 Q3/2014 Q4/2014 Operating profit by quarter Net sales by quarter 140,0 123,3 127,7 120,0 103,1 107,8 113,7 100,0 92,7 80,0 60,0 40,0 20,0 11,8 13,5 12,3 8,3 3,3 4,3 0,0 2009 2010 2011 2012 2013 2014 Operating profit (EUR million) Net sales (EUR million) 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% Note: Personnel expenses and other OPEX=Fixed costs
GROWTH OF TRANSACTION VOLUMES 2010-2014 Million transactions 2010 2011 2012 2013 2014 24,0 22,0 20,0 18,0 16,0 14,0 12,0 10,0 8,0 6,0 4,0 2,0 0,0 Q1 Q2 Q3 Q4 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 %
Q1/10 Q2/10 Q3/10 Q4/10 Q1/11 Q2/11 Q3/11 Q4/11 Q1/12 Q2/12 Q3/12 Q4/12 Q1/13 Q2/13 Q3/13 Q4/13 Q1/14 Q2/14 Q3/14 Q4/14 SHARE OF RECURRING REVENUE, ROLLING 12 MONTHS AVERAGE EUR thousand 40 000 35 000 30 000 25 000 20 000 15 000 10 000 5 000 0 70,0 % 65,0 % 60,0 % 55,0 % 50,0 % 45,0 % 40,0 % 35,0 % The share of recurring revenue of net sales increased to 67.0 % (63.8 %) in 2014 Net sales Share of recurring revenue, rolling 4 quarters average
SAAS VERSUS LICENSE SALES DYNAMICS 100 % SaaS License sales Combined SaaS & license sales y-o-y 2% 90 % 80 % 70 % 0% -2% 60 % -4% 50 % 40 % -6% 30 % -8% 20 % 10 % -10% 0 % 2007 2008 2009 2010 2011 2012 2013 2014-12% 2011 2012 2013 2014
STRATEGIC FOCUS AREAS FOR 2015-2018 The largest business commerce network Strengthen our market presence Maximize transactions Win with Alusta Unleash financing services Create customers for life
PRIORITIES AND OBJECTIVES FOR OUR BUSINESSES IN 2015 Solution Services Network Services Financing Services 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 High profitability Growing revenue Accelerated revenue growth Improved profitability First revenue
INTRODUCING FINANCING SERVICES 1 First products launched 2 1 Factoring Basware Commerce Network Pay 2 Next development batch underway Supplier Financial Engine Discount Payment Buyer 3 World class partnerships being formed 3 Supplier Discount Timing Funding Dynamic Discount
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
SOLUTIONS FOR A CONNECTED WORLD 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. Purchase-to-pay AP Automation E-invoicing E-procurement E-payments BASWARE COMMERCE NETWORK Analytics Financing Services Travel & Expense
BASWARE MOVING FORWARD A unique platform for growth open network, e-invoicing and purchase to pay solutions, value added financing services, new partnerships and global expertise.
BASWARE OUTLOOK 2015 Basware expects its net sales and operating profit (EBIT) for 2015 to grow compared to 2014: 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.
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