1

Investor Presentation

All Information as of 12/31/17

22

Safe Harbor

This document contains forward-looking information and financial projections subject to risks,

uncertainties and other factors that could materially affect our actual results. Any forward-looking

statements or financial projections represent our views only as of today and should not be relied upon as

representing our views as of any subsequent date. We do not assume any obligation to update any

forward-looking statements or financial projections. Further, our financial projections do not consider the

impact of any pending or future changes to accounting pronouncements under US Generally Accepted

Accounting Principles. For additional discussion of factors that could impact our operational and financial

results, please refer to our Form 10-K for the fiscal year ended June 30, 2017 and subsequently filed

Form 10-Q’s and Form 8-K’s or amendments thereto.

Non-GAAP Financial Information

The financial projections in this document are presented on both a GAAP and a non-GAAP basis. Non-

GAAP projections include core operating income, adjusted EBITDA, adjusted EBITDA margin, core

operating margin, core earnings per share and constant currency growth. A historical reconciliation of our

non-GAAP results to the most directly comparable GAAP result is available in the Investors section of

Bottomline's website at www.bottomline.com/us/about/investors

33

ABOUT BOTTOMLINE

$118

$131 $138

$158

$189

$224

$255

$301

$331

$343 $349

FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17

Bottomline makes business payments simple, smart and

secure

Capitalizing on business payment leadership position in

large market opportunity

• Large B2B payment network ($200 billion annual volume)

• Secure business payments (domestic and cross border)

• Leading payments and cash management platform

• Accounts payable automation

• Accounts receivable automation

• Invoice management

Leveraging product investment to drive subscription and

transaction growth

• Payoff from investment in market leading solutions in large

and growing markets

• $253 million run rate subs and trans revenue

• 86% recurring revenue

$27 $30 $31

$41

$55

$85

$118

$141

$171

$195

$223

FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY 17

11% CAGR

Total Revenue

($ in millions)

24% CAGR

Subscription & Transaction Revenue

($ in millions)

44

BUSINESS PAYMENT COMPLEXITY

PAYER PAYMENT

RECIPIENT

Source: Aité Group

55

BUSINESS PAYMENT COMPLEXITY

5

PAYER PAYER’S BANK PAYMENT

RECIPIENT’S BANK

PAYMENT

RECIPIENT

CORRESPONDENT BANKS

CARD ISSUER BANK MERCHANT ACQUIRER’S BANK

CARD NETWORK

NATIONAL BANKNATIONAL BANK

PROPRIETARY

NETWORK

Paper draft, ACH

or wire transfer

Commercial card

SWIFT

message

Paper draft, ACH or wire

transfer

ACH or wire transfer

Paper draft, ACH or

wire transfer

Source: Aité Group

6

Transition key products

historically sold in license

model to subscription

revenue model

S T R AT E G I C P L A N

Invest in and develop market

leading cloud business

payment solutions

Drive subscription and

transaction revenue

growth of 15-20%

Expand operating and

EBITDA margins

Allocate capital with

discipline

6

7

Market Leading Products

88

PAYMODE-X

The Paper Problem

63% of organizations are still

making more than half of their

payments by paper check

77% of organizations subject

to payment fraud were victims of

check fraud

84% of organizations identify

high overall payment costs as a

driver for automationPayers transform AP

into a profit center

and manage

payments efficiently,

precisely and

securely

Vendors receive

electronic payment

benefits, rich

remittance and

process automation

Automated Electronic Payments

Paymode-X helps businesses easily

transition to electronic payments

(number of vendors, calendar year)

Paymode-X Network

365,000+ Vendors in network

$200B+ in payments processed

50,000

100,000

150,000

200,000

250,000

300,000

350,000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

99

DIGITAL BANKINGInnovative commercial banking platforms empower banks

to win new customers and grow wallet share

Helping Banks Grow Organically

and Defend vs Digital Disruption

Banks Get

• Market-leading payments and cash

management capabilities

• Mobile-first design, with flexible,

modular customization

• Powerful customer engagement platform,

with integrated sales and marketing tools

Bank’s Commercial Customers Get

• Integrated, market-leading payments and

cash management solutions

• Tools to help manage their finances

• Easy-to-use and customizable

digital interface

• Works with SMB business and

accounting software

Leadership Position Market Leading Solution

• Well-positioned to help banks actively

seeking new technology to grow their

business banking franchises

• Top-tier bank client base

Best Overall Partner

Best User Experience

Best Small Business Capabilities

Most Open Architecture

Aite Survey of Cash

Management Vendors

1010

LEGAL SPEND MANAGEMENTThe leading way insurance companies manage their legal spend and relationships

200+ clients

150+ insurance companies

13,000+ law firms

98% retention rate

Top-tier client base

Leadership Position

0

20

40

60

80

100

120

Category 1 Category 2

Penetrated

33%

Opportunity

66%

Bottomline

50%

CSC 20%

Tymetrix

15%

Other15%

Market

Penetration

Carrier

Share

PartnerSelect

+20%

PartnerSelect

+20%

Growth OpportunityStreamlining and Automating

Relationships with Law Firms

Legal invoice and spend management

Paid as a percentage of legal bill

Saves up to 8% of billings

Reduces administrative expense

by 30-50%

PartnerSelect

Choose the right lawyer, for the right

matter, at the right rate

Advanced analytics – improve case

outcomes

11

Financial Highlights

3141

55

85

118

141

171

195

223

257-258

0

35

70

105

140

175

210

245

280

09 10 11 12 13 14 15 16 17 18E 19E

Subscription and Transaction Revenue Growth

25% CAGR

12

• Product investments driving 15-20% organic

subscription and transaction growth

• Most recent quarter:

– 21% growth in fully transitioned products

– 14% growth overall

• Current run rate of $253 million

• Targeting $300 million for FY19

TARGETING

$300 MILLION

FY19

SUBSCRIPTION AND TRANSACTION REVENUE

13Note: Results above are based on Q2-18.

• 66% of revenue is subscription and transaction

• 86% of revenue is recurring

• Subscription and transaction growth driving

margin expansion

Predictable Profitable Revenue Model

9

1619

34

4246

50

61

7175 75

86-87

0

10

19

29

38

48

57

67

76

86

95

07 08 09 10 11 12 13 14 15 16 17 18E 19E

Margin Expansion

14

• New subscription and transaction revenues

driving margin expansion

– Banking subscription backlog of $14

million

– Optimizing existing customer base

through cross-sales and add on

opportunities

• EBITDA run rate of $90 million

– EBITDA Margin of 24%, up two

percentage points year over year

– Targeting $100 million EBITDA in FY19

TARGETING

$100 MILLION

FY19

EBITDA

22% CAGR

NASDAQ: EPAY

31

32

33

34

35

36

37

38

Capital Allocation

15

• Repurchased 1.7 million shares for $40

million in 2017

• Retired convertible debt (Dec 2017)

– Combination of $40 million of cash

and $150 million draw from credit

facility

– $150m draw, with 2/3 fixed, 1/3

floating structure

– No shareholder dilution

• Cash and investments on hand of $78 million

• Able to fund continued growth and

opportunistically repurchase shares

Stock price observed from November 1, 2017 to January 31, 2018

Jan.

2018

Nov.

2017

Consolidated

Bottomline

Transitioning Products

Established Products

Above our 15-20% target

Attractive economic model with

expanding margins. Up from

20% in same period prior year

$14 million of annual

subscriptions currently in

implementation and not yet live

Margins will expand as transition

is completed

Eliminated convertible bond

without diluting shareholders

Core operating income, adjusted EBITDA, core operating margin and core EPS are non-GAAP measures. Definitions and a reconciliation to the most

directly comparable GAAP measures can be found in the Investors section of the Bottomline website.

Q2 FY18

Results

$90 million annualized EBITDA is

up 20% year-over-year, reflecting

attractive business model

Subscription and Transaction Revenue Growth

Subscription and Transaction Revenue

Total Revenue

Operating Income Margin

Operating Income

-4%

$14.9M

$21.0M

5%

$1.1M

Subscription and Transaction Revenue Growth

Subscription and Transaction Revenue

Total Revenue

Operating Income Margin

Operating Income

EBITDA

EBITDA Margin

EPS

14%

$63.2M

$95.2M

19%

$17.6M

$22.5M

24%

$0.31

Subscription and Transaction Revenue Growth

Subscription and Transaction Revenue

Total Revenue

Operating Income Margin

Operating Income

21%

$48.3M

$74.2M

22%

$16.5M

118131 138

158

189

224

255

301

331343 349

384-385

90

130

170

210

250

290

330

370

07 08 09 10 11 12 13 14 15 16 17 18G

27 30 3141

55

85

118

141

171

195

223

257-258

20

50

80

110

140

170

200

230

07 08 09 10 11 12 13 14 15 16 17 18G

9

1619

34

4246

50

61

7175 75

86-87

5

15

25

35

45

55

65

75

85

07 08 09 10 11 12 13 14 15 16 17 18G

6

1315

29

3740

43

53

61 6258

66-67

5

13

20

28

35

43

50

58

65

07 08 09 10 11 12 13 14 15 16 17 18G

Revenue Subscription and Transaction Revenue

Adjusted EBITDA Operating Income

Bottomline Performance ($ millions)

11% CAGR 23% CAGR

22% CAGR 24% CAGR

17CAGR measured from FY07 to FY18 guidance