CARNEGIE IT SEMINAR

VESA TYKKYLÄINEN, CEO

HELSINKI, 24 NOVEMBER 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.

2

WHY BASWARE

Huge market

opportunity

THE market

leader

Cloud focused

strategy

MEGA TRENDS DRIVING DEMAND FOR BASWARE’S SERVICES

Digitalisation

e-commerce

Open Networks

Disruption of

Traditional

Financing Models

Public Sector

Initiatives

Automation

EXCITING AND GROWING MARKET OPPORTUNITY

REGULATION IN THE EU AND THE U.S. PUSHING E-INVOICING PENETRATION

EU and US

public sector

mandated to

support

e-invoicing

from end 2018

More than 50 governments pushing e-invoicing

• Cut costs

• Increases tax income

• Reduces fraud

65% of businesses supply the public sector

= 14 million companies in the EU alone

5

Future Potential:

100%

e-invoices

MARKET POTENTIAL FOR NETWORKED P2P

6

370 billion invoices annually, globally,

95% currently in paper format

Current Total

Addressable

Market:

3 billion e-invoices,

1% of total

Source: Management estimates, Billentis, EESPA. Covers B2B, B2G and B2C

E-invoice Other electronic formats Paper and unstructured data

GLOBAL LEADER IN A FRAGMENTED MARKET

Network Purchase to Pay Financing Services

#1 e-invoicing

operator globally

#1 in Accounts

Payable and Top 3

in Procurement

Nascent market

3% share of

addressable market

7% share of

addressable marketNascent market

Very few global

competitors

Multiple small local

competitors

Global competition

from ERP providers

Smaller local

providers

Offering is unique in

breadth

Competition

depends on

customer size

BASWARE A LEADER IN GARTNER’S MAGIC QUADRANT FOR PROCURE-TO-PAY SUITES

“P2P suite Leaders demonstrate a market-defining vision

of how technology and services can help procurement

establish, develop and maintain contract compliance and cost-

effective processes for managing and controlling external

spend.

They have the ability to execute against their vision with

products and services, and they have demonstrated results in

the form of growth and customer satisfaction. Leaders

successfully sell into multiple industries and multiple

geographies.

Leaders are often what other providers in the market measure

themselves against, and they are the most likely vendors

from this report to be in the P2P suite business five years

from now.”*Gartner, Magic Quadrant for Procure-to-Pay Suites, Deborah R Wilson, Paolo Malinverno, Magnus Bergfors, Desere Edwards, 13 June 2016This graphic was published by Gartner, Inc. as part of a larger research document and should be evaluated in the context of the entire document. The Gartner document is available upon request from www.basware.com. Gartner does not endorse any vendor, product or service depicted in its research publications, and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner research publications consist of the opinions of Gartner's research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.

Source: Gartner (June 2016)

WE HELP CUSTOMERS DO THREE THINGS

Connect Manage Optimize

• Simplify and automate

• Eliminate paper

• Strengthen supplier

relationships

• Navigate regulatory

complexity

• Improve data accuracy

• Deliver financial insights to

the business

• Improve collaboration

• Control margins and spend

• Tap into supplier innovation

• Drive cost savings and

efficiency

• Drive growth and operational

excellence

• Create competitive advantage

• Minimize business risk

• Reduce supply chain risk

• Improve cash flow

• Optimize working capital

END-TO-END SOLUTION UNLOCKS VALUE

Basware

Network

SUPPLIERSSUPPLIERS

OPTIMIZE INDIRECT & DIRECT

INVOICE PROCESSING

UNLOCK CASH FLOW

TRANSFORM PROCUREMENT

• One single connection, the most cost-effective

way of communication

• Basware automatically converts invoices to

the end format required

• Suppliers can reach a large number of

customers using our interoperable network

partners

• Global trusted partner: multi-lingual, multi-

format and connected to main government hubs

SUCCESS ENABLER: OPEN BASWARE NETWORK

Basware Network is the largest open e-Invoicing network globally, powered by over 220

interoperability network partners and over 1M buyers and sellers

“The Basware solution has proved

incredibly flexible, providing a

seamless integration with our existing

systems.”Ed Prins

Financial Services Manager

HOW BASWARE WILL GRAB THE OPPORTUNITY

Cloud

Revenue

Growth

Continue to strengthen sales and marketing

Focus on Customer Success

Grow and monetize network and data assets

with value added services including financing

Increase productivity by simplifying our

operations and increasing scalability

Evolve our culture and way of working to

focus more on performance

Strategic

Priority

Acti

on

s T

o E

nab

le S

trate

gy

CLOUD REVENUES APPROACHING 50%

SaaS

Transaction Services

Financing Services (excl. alliance fees)

Other subscription revenues

2010 2015 2016 Q3

Cloud Revenues Drive Growth

Maintenance

Licenses

Consulting

Other Revenues Enable Cloud Growth

2020 STRATEGY GOALS

Cloud revenue growth

Cloud revenue growth

>20% CAGR

on an organic basis

Annual net sales

>EUR 220 million

Recurring revenue

~ 80% of net sales

* Cloud revenue includes transactions services, SaaS and other subscription and financing services revenue excluding alliance fees

** Recurring revenue consists of net sales excluding license sales, consulting revenue related to deliveries, and alliance fees

Continue to improve underlying profitability

Strategic Priority 2017-2020 Strategic Goals

WHY BASWARE

Huge market

opportunity

THE market

leader

Cloud focused

strategy

NEXT REPORT

MORE INFORMATION:

www.basware.com/investors

www.basware.com

www.twitter.com/basware

www.facebook.com/BaswareCorporation

www.linkedin.com/company/basware

Q4 INTERIM REPORT ON FEBRUARY 1, 2017