INVESTOR PRESENTATION Q Vesa Tykkyläinen, CEO Niclas Rosenlew, CFO October 18, 2017

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1 INVESTOR PRESENTATION Q Vesa Tykkyläinen, CEO Niclas Rosenlew, CFO October 18, 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 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 WHY BASWARE SIMPLIFY OPERATIONS SPEND SMARTER 100% Paperless Processes Network is Differentiator EUR 15bn Market Opportunity

5 CONVERTING TO E-INVOICING E-INVOICING RATE NOW A WHOPPING 96%. CURRENTLY WE ARE SENDING ELECTRONIC INVOICES TO 96% OF OUR CUSTOMERS. IT IS FANTASTIC! I HAVE A HAPPY CFO. Liselotte Frost Christensen, Credit Manager, Carlsberg Group

6 CUSTOMER SUCCESS EXAMPLES OF GLOBAL CUSTOMER WINS ACROSS INDUSTRIES IN Q3 2017

7 CUSTOMER SUCCESS EXAMPLES OF CUSTOMER TRANSFORMATIONS SIGNED IN Q3 2017

8 BASWARE LEADS INDUSTRY INNOVATION IN Q3 Enhancements to Analytics: Peer Benchmarking, Predictive Analytics Discount Partnership with Nordea Basware Vault

9 Q STRONG CLOUD MOMENTUM STRATEGIC PRIORITY: CLOUD REVENUE GROWTH Cloud revenues 55% of total Subscription ARR Order Intake YTD +66% Productivity savings fully visible in cost base

10 FINANCIAL REVIEW

11 EUR m SOLID SUBSCRIPTION ORDER INTAKE Investments in sales and marketing delivered solid order intake 10,0 9,0 8,0 7,0 6,0 Time lag to visibility in revenues 5,0 4,0 3,0 2,0 1,0 0, Q Q YTD 2016 YTD 2017 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. Transaction 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.

12 EUR m STRONG CLOUD REVENUES More than half of total revenues now from Cloud % 5 0 Q Q Cloud Non Cloud SaaS Transaction Services Other Cloud Revenues

13 Non-Cloud Revenue Cloud Revenue Q NET SALES PROGRESSION SaaS growth continued to be strong, up 33% Significant cloud potential in existing maintenance customer base being addressed Net sales by revenue type (EUR thousand) 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 %

14 Q PROFITABILITY Effect of productivity programme visible in cost base Savings achieved as result of personnel reductions approx. EUR 1.6 m in Q3 and EUR 3.3 m YTD (EUR thousand) Change Net sales % Materials and services % Personnel expenses % Other operating expenses % Total costs and expenses excluding depreciation % Reported EBITDA Adjustments to EBITDA % Adjusted EBITDA %

15 Q R&D INVESTMENTS Full impact of Q productivity measures realised (EUR thousand) Change R&D expenses excluding depreciation % Capitalised R&D % Total R&D investments % Total R&D investments as % of net sales 13% 15%

16 Q CASH FLOW AND BALANCE SHEET Strong liquidity position with cash and undrawn bank facilities totalling EUR 35 m EUR 30 m loan financing executed (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 2017 FULL YEAR OUTLOOK Basware s number one strategic priority is cloud revenue growth. FOR 2017, BASWARE EXPECTS: Cloud revenues to grow by approximately 20 percent Adjusted EBITDA at breakeven

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19 APPENDIX

20 EUR m SUBSCRIPTION ARR GROSS ORDER INTAKE Subscription annual recurring revenue gross order intake quarterly 5,0 4,5 4,0 3,5 3,0 2,5 2, ,5 1, ,5 0,0 1.9 Q Q Q Q Q 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. Transaction 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.