INVESTOR PRESENTATION Q2 2017 - Basware/media/Files/B/Basware-IR...Q2 2017 PROFITABILITY •Full...
Transcript of INVESTOR PRESENTATION Q2 2017 - Basware/media/Files/B/Basware-IR...Q2 2017 PROFITABILITY •Full...
INVESTOR PRESENTATIONQ2 2017Vesa Tykkyläinen, CEONiclas Rosenlew, CFOJuly 19, 2017
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 toevents 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 arebased 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.
CEO REVIEW
SPEND SMARTER
WHY BASWARE
100% Paperless Processes
Network is Differentiator
EUR 15bn Market Opportunity
SIMPLIFY OPERATIONS
BASWARE IS A LEADING P2P SOLUTION PROVIDER BASED ON FORRESTER RESEARCH
The Forrester Wave™: eProcurement, Q2 2017 Report
Basware cited as a leader in procure-to-pay (P2P) automation
platforms and described by Forrester:
• Excels in invoice automation for global organizations
• The broadest functionality to manage different spend
categories and invoice capture methods.
• Focus on automating process and minimizing manual
approvals is an important differentiator
• Very successful selling to European multinationals, and its
2016 acquisition of Verian has now brought it increased scale
in North America, in addition to some complementary
functionality.
The Forrester Wave™ is copyrighted by Forrester Research, Inc. Forrester and Forrester Wave are trademarks of Forrester Research, Inc. The Forrester Wave is a graphical representation of Forrester's call on a market and is plotted using a detailed spreadsheet with exposed scores, weightings, and comments. Forrester does not endorse any vendor, product, or service depicted in the Forrester Wave. Information is based on best available resources. Opinions reflect judgment at the time and are subject to change.
CUSTOMER SUCCESS
EXAMPLES OF GLOBAL CUSTOMER WINS ACROSS INDUSTRIES IN Q2 2017
KEY Q2 ACTIVITIES
New UK, Germany and NorwaySales Heads
SALES PERFORMANCE
Network & Customer Services Management
ORGANISATION
Strategic SourcingSOLUTIONS
NEW BRAND WEBSITE LIVE IN MAY
Matching Share Plan
Performance Share Plan
Restricted Share Plan
MANAGEMENT ALIGNED WITH SHAREHOLDERS
2% OF BASWARE’S
SHARE CAPITAL
Q2 2017 STRONG CLOUD MOMENTUM
Highest ever quarterly cloud revenues
Subscription ARR Order Intake +61%
US now biggest contributor to P2P revenues
STRATEGIC PRIORITY:
CLOUD REVENUE GROWTH
FINANCIAL REVIEW
STRONG SUBSCRIPTION ORDER INTAKE
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5
5.0
Q2 2016 Q2 2017
EUR
m
• Investments in sales and marketing delivered strong order intake
• Time lag to visibility in revenues
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.
CLOUD REVENUE AT RECORD LEVELS
0
5
10
15
20
25
Q2 2016 Q2 2017SaaS Transaction Services Other Cloud Revenues
EUR
m
Cloud Non Cloud
53%
More Than Half of Total Revenues Now
from Cloud
Q2 2017 NET SALES PROGRESSION
• SaaS growth continued to be extremely strong, up 38%
• Significant cloud potential in existing maintenance customer base being addressed
Net sales by revenue type (EUR thousand)
4-6 2017 4-6 2016 Change
Clou
dR
even
ue
SaaS 8 160 5 904 38%
Transaction services 9 633 8 954 8%
Other cloud revenue 1 801 1 641 10%
Cloud Revenue total 19 594 16 498 19%
Non
-Clo
ud
Rev
enue
Maintenance 9 357 10 385 -10%
License sales 1 120 2 588 -57%
Consulting services 7 324 9 473 -23%
Other non-cloud revenue -105 3
Non-Cloud Revenue total 17 695 22 450 -21%
Group Total 37 289 38 948 -4%
Q2 2017 PROFITABILITY
• Full impact of Q4 2016 productivity measures expected in H2 2017
(EUR thousand) 4-6 2017 4-6 2016 Change
Net Sales 37 289 38 948 -4%
Material and Services -3 630 -3 959 -8%
Personnel Expenses -25 375 -29 068 -13%
Other Operating Expenses -8 738 -8 792 -1%
Total costs and expenses excluding depreciation
-37 743 -41 819 -10%
Reported EBITDA -298 -2 870 90%
Adjustments to EBITDA 618 409 51%
Adjusted EBITDA 320 -2 461
Q2 2017 R&D INVESTMENTS
• Full impact of Q4 2016 productivity measures expected in H2 2017
(EUR thousand) 4-6 2017 4-6 2016 Change
R&D expenses excluding depreciation 3 514 3 217 10%
Capitalised R&D 2 511 2 794 -10%
Total R&D investments 6 025 6 012 0%
Total R&D investments as % of sales 16% 15%
Q2 2017 CASH FLOW AND BALANCE SHEET
• Strong liquidity position with cash and undrawn bank facilities totalling EUR 33.6 m
(EUR thousand) 4-6 2017 4-6 2016
Cash flows from operating activities -4 837 -2 962
Net Change in cash and cash equivalents -8 162 -32 812
Cash and cash equivalents 23 610 21 799
Total available liquidity* 33 610 31 799
* Includes undrawn bank facilities and short term deposits
Cloud revenues to grow by
approximately 20 percent
Adjusted EBITDA at breakeven
2017 FULL YEAR OUTLOOK
Basware’s number one strategic priority is cloud revenue growth.FOR 2017, BASWARE EXPECTS: