FINANCIAL RESULTSQ4/2015 & 2015

ESA TIHILÄ, CEO

NICLAS ROSENLEW, CFO

FEBRUARY 2, 2016

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.

FINANCIAL RESULTSQ4/2015 & 2015

BUSINESS REVIEW

KEY EVENTS 2015

The growth in Network Services continued throughout the year

• Position in public sector strengthened with Procserve acquisition

Net sales continued to grow strongly in the US, the UK and Germany, offsetting modest growth in Finland

Tipping point reached in transition to cloud and SaaS-based company:

• Signed Alusta-based SaaS agreements more than doubled;

• Licence sales decline accelerated, offset by growth in SaaS

Investments in Network Services and Financing Services business continued

Cloud business developed

favourably with significant growth

in key markets Starting point for the

next phase of growth

Refined strategy for

2016-2018 announced

Q4/2015 IN BRIEF

Strong growth in net sales & operating profit:

Transition to the cloud

continued

Record number of Alusta-

based SaaS agreements

signed in Q4

8.5 million Network

transactions in October (all-

time monthly high)

NETWORK SERVICES

Net sales grew significantly (53.5% vs Q4 2014)

Growth of transaction volumes continued,

with 25 million transactions in Q4

SOLUTION SERVICES

SaaS net sales grew 21.9%

Licence sales declined at a similar pace to Q3

FINANCING SERVICES

25 new customers signed up since summer 2015

in the UK, the US and Finland for Basware Pay &

Basware Discount

Q4/2015 KEY FINANCIALS

• Net sales EUR 39 210 thousand

(EUR 34 644 thousand), +13.1%

• Operating profit EUR 4 305 thousand

(EUR 1 701 thousand)

Net sales

EUR thousand

-

5 000

10 000

15 000

20 000

25 000

30 000

35 000

40 000

45 000

Q1 Q2 Q3 Q4

2010 2011 2012 2013 2014 2015

STRONG GROWTH IN NET SALESIN HIGH POTENTIAL MARKETS

Net sales by markets (Q1-Q4 2015) Growth in net sales (2015 vs. 2014)

Total:

€143.4 million(1)

Net sales in stable in mature markets Strong organic growth in key markets

(1) Includes Procserve and partnership income.

(2) Excludes Procserve and partnership income.

(1)

(1) (2)

SIGNIFICANT GROWTH CONTINUED IN TRANSACTION VOLUMES

-

5,0

10,0

15,0

20,0

25,0

30,0

Q1 Q2 Q3 Q4

2010 2011 2012 2013 2014 2015

Million transactions

~94 million

transactions in

2015

+20.2% versus

2014

CONTINUOUSLY INCREASING SHARE OF RECURRING REVENUE

The share of

recurring revenue

of net sales increased

to 66.5 % (64.9%) in

Q4/2015

Net sales

Share of

recurring

revenue, rolling

4 quarters

average

0,0 %

10,0 %

20,0 %

30,0 %

40,0 %

50,0 %

60,0 %

70,0 %

80,0 %

0

5 000

10 000

15 000

20 000

25 000

30 000

35 000

40 000

45 000

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

Q1/

15

Q2

/15

Q3/

15

Q4/

15

EUR thousand

0

20

40

60

80

100

120

140

160

2010 2011 2012 2013 2014 2015

TIPPING POINT REACHED IN TRANSITION TO CLOUD AND SAAS

Cloud

businesses

drive growth

Net Sales by type (€M, 2010 – 2015)

Maintenance,

license and

consulting

provide a

solid base

Other Network

related

Transactions

SaaS

Consulting

Licenses

Maintenance

Note: Other Network related includes Procserve and alliance fee.

2015 Net sales mix

2010 Net sales mix

Maintenance, consulting and license

SaaS and Network

FINANCIAL RESULTSQ4/2015 & 2015

FINANCIAL REVIEW

-2,0

4,0

10,0

0,0

10,0

20,0

30,0

40,0

Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 Q2/15 Q3/15 Q4/15

Net sales Operating profit

KEY GROUP FINANCIALS

EUR thousand Q4 2015 Q4 2014

Q4 15 vs Q4

14 growth FY 2015 FY 2014 YoY growth

Net sales 39 210 34 664 13.1% 143 410 127 674 12.3%

Material and services -4 098 -3 559 15.1% -16 396 -12 796 28.1%

Personnel expenses -22 456 -20 803 7.9% -85 726 -77 779 10.2%

Other operating expenses -6 517 -6 865 -5.1% -29 490 -26 004 13.4%

EBITDA 6 224 3 436 81.1% 11 902 11 354 4.8%

Depreciation and amortization -1 919 -1 735 10.6% -7 226 -7 029 2.8%

Operating result (EBIT) 4 305 1 701 153.1% 4 676 4 325 8.1%

Net result 2 954 1 454 103.1% 3 083 2 959 4.2%

EPS, EUR (diluted) 0.21 0.11 90.6% 0.22 0.22 -2.3%

Personnel (on average) 1 652 1 498 10.3% 1 591 1 466 8.5%

EU

R m

illi

on

NETWORK SERVICES & SOLUTION SERVICES IN Q4/2015

Solution Services (software solutions & services):

EUR 25 124 (25 489) thousand, -1.4%;

Net sales increased versus Q3 in line with the seasonal trend

License sales declined 25% vs Q4 2014 (a similar pace to Q3)

SaaS sales grew 21.9% vs Q4 2014

Network Services (e-invoicing solutions & services):

EUR 14 086 (9 175) thousand, +53.5%;

Net Sales growth includes Procserve

Transaction volumes up 14.6% Q4 15 vs Q4 14

Transaction net sales up 16.8% Q4 15 vs Q4 14

Net sales by business in Q4/2015:

(25 642, -0.6 %) 4 000

6 000

8 000

10 000

12 000

14 000

16 000

NETWORK SERVICES

10 000

15 000

20 000

25 000

SOLUTIONS SERVICESEUR thousand

EXPENSES, FINANCING & INVESTMENTS

Operating expenses* amounted to EUR 122 442 thousand (110 813), +10.5%

Operating expenses include approximately EUR 3 500 thousand non-recurring expenses

R&D expenses amounted to EUR 20 748 thousand (17 680), 14.5% of net sales (13.8%)

Capitalized R&D expenses amounted to EUR 8 754 thousand (4 274)

The operating cash flow amounted to EUR 13 648 thousand (14 912)

Strong balance sheet with cash & cash equivalents amounting to EUR 33 238 thousand (28 954)

Disciplined investment in the business:Demonstrated ability

to scale the business

Opex growth kept lower

than net sales growth in

2015

*Operating expenses include employee benefits, depreciations & amortizations, and other operating expenses

FINANCIAL RESULTSQ4/2015 & 2015

FUTURE OUTLOOK

MARKET AND COMPETITIVE SITUATION ALLOWS ACCELERATING GROWTH

Extend cloud Purchase

to Pay leadership

Accelerate Network

growth

Unleash Financing

Services

Penetration still low but

accelerating

Network is the

foundation for value

added services

Fragmented standards,

Basware the largest

network, supporting all

Growth picking up in

key large markets

Demand moving rapidly

to cloud solutions

Basware is a

recognized market

leader

Alternative financing

services attracting

growing investment

Basware an early

leader, leveraging

network data

First solutions launched

NETWORK PURCHASE TO PAY FINANCING SERVICES

KEY 2016-2018 PRIORITIES FOR TAKING THE NEXT STEP

Extend cloud

Purchase to Pay

leadership

Accelerate

Network growth

Unleash

Financing

Services

1. Accelerating all three businesses:

2. Supported and enabled by:

Further

shortening of

delivery times

Investing in

demand

generation

and sales

Scalable

company

infrastructure

BASWARE OUTLOOK FOR 2016

SaaS revenue expected to grow; strong growth of Basware

Commerce 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

• EBITDA excluding non-recurring items at break-even

Disciplined acquisition strategy continues in the e-invoicing

key markets; in Europe & US

Operating investments

to be accelerated

Expanding sales and

marketing & go-to-market

capabilities

R&D capability and other

investments to shorten

implementation

Supporting development of

Financing Services offering

Organic revenue growth of 5 percent or more:

MORE INFORMATION:

www.basware.com/investors

www.basware.com

www.twitter.com/basware

www.facebook.com/BaswareCorporation

www.linkedin.com/company/basware

Q1 INTERIM REPORT ON APRIL 19, 2016

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