INVESTOR PRESENTATION Q Vesa Tykkyläinen, CEO Niclas Rosenlew, CFO July 18, 2018

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1 INVESTOR PRESENTATION Q Vesa Tykkyläinen, CEO Niclas Rosenlew, CFO July 18, 2018

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 forwardlooking 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 CEO REVIEW

4 SUCCESSFULLY COMPLETING CLEAN UP PHASE, INCREASING FOCUS ON ACCELERATING GROWTH Clean-up Consolidation of R&D sites Transition to AWS Sale of noncore assets Functional organization Scanning services outsourced Cloud focused strategy Performance culture and leadership changes Management become shareholders Country management Account management Partnering organization Growth

5 FOUNDATIONS ALREADY IN PLACE TO ACCELERATE GROWTH Existing sales and marketing ramp-up Improving sales pipeline Quota carriers +40% YE 2018 vs. YE 2017 Marketing pipeline +60% Investment in sales and marketing will increase +12% in Q2 2018

6 WHERE GROWTH WILL COME FROM Key markets Existing customers Partnerships New markets Select M&A

7 SOLUTION LEADERSHIP IN Q Basware recognized as Leader in Gartner s Magic Quadrant Smart PDF: invoice capturing for any machine-readable PDF Basware Assistant: virtual assistant for procurement

8 CUSTOMER SUCCESS EXAMPLES OF NEW CUSTOMER WINS AND TRANSFORMATIONS IN Q2 2018

9 Q2 HIGHLIGHTS STRATEGIC PRIORITY: CLOUD REVENUE GROWTH Cloud revenues 62% of total Cloud order intake at all-time high Clean-up phase completed, moving to accelerate growth

10 WHY BASWARE SIMPLIFY OPERATIONS SPEND SMARTER 100% Digital Processes Network is Differentiator EUR 15bn Market Opportunity

11 FINANCIAL REVIEW

12 ORGANIC CLOUD REVENUE GROWTH FEEDS TOTAL GROWTH H1 Organic Cloud Growth at Constant Currencies Cloud as a proportion of Q2 total revenues Q2 Organic Total Growth at Constant Currencies +17% 62% +7% Cloud Non Cloud

13 EUR m RECORD TOTAL CLOUD ORDER INTAKE Total cloud order intake at all-time high 12,0 10,0 Includes all SaaS and Network recurring revenues 8,0 6,0 4,0 Time lag to visibility in revenues 2, ,0 Q Q H H Annual recurring revenue gross order intake is calculated by summing the total order intake in the period expressed as an ann ual contract value. This includes all SaaS and Network recurring revenues including transaction revenues. Gross order intake covers new cl oud customers, add-ons and renewal uplifts but excludes churn. There will be a time lag before this order intake is visible in net sales. *Organic constant currency growth rate

14 Non-Cloud Revenue Cloud Revenue Q NET SALES PROGRESSION Headline growth impacted by FX and disposals SaaS and Transaction services combined grew 20.4%* Significant cloud potential in existing maintenance customer base being addressed Net sales by revenue type (EUR thousand) Change Change* SaaS % 26.2 % Transaction services % 15.6 % Other cloud revenue % % Cloud Revenue total % 15.6 % Maintenance % % License sales % % Consulting services % 2.0 % Other non-cloud revenue Non-Cloud Revenue total % -4.8 % Group Total % 7.0 % *On an organic basis at constant currencies

15 Q PROFITABILITY Growth rates impacted by disposals and FX (EUR thousand) Change Net sales % Cost of sales % Gross profit % Sales and marketing % Research and development % General and administration % Total operating expenses % Other operating income and expenses Operating profit/loss % Adjustments Depreciation and amortization % Adjusted EBITDA

16 Q CASH FLOW AND BALANCE SHEET Strong liquidity position with cash and undrawn bank facilities totalling EUR 51 million (EUR thousand) Cash flows from operating activities Net change in cash and cash equivalents Cash and cash equivalents Total available liquidity* *Includes undrawn bank facilities and short term deposits

17 2018 FULL YEAR OUTLOOK Basware s number one strategic priority is cloud revenue growth. FOR 2018, BASWARE EXPECTS*: Cloud revenues between EUR 90 and EUR 95 million Total costs slightly above 2017 levels** *On an organic basis at constant currencies **Excluding D&A and adjustments to EBITDA

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