FINANCIAL RESULTSQ4 2016

VESA TYKKYLÄINEN, CEO

NICLAS ROSENLEW, CFO

FEBRUARY 1, 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 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

VESA TYKKYLÄINEN

CEO REVIEW

SIGNIFICANT MARKET OPPORTUNITY

4(1) Annual spend on source-to-pay and e-invoicing network services for key,

corporate, SMB medium and public sector customers in Europe and North America.

Source: Basware, Forrester, Gartner, Billentis, EESPA

EUR 3.5

billion Current

market(1) EUR

149 million Basware 2016 revenues

EUR 15 billionMarket potential(1)

Underpenetrated market

Competition is fragmented

Basware is

global leader

Largest e-invoicing

network

#1 in Accounts

Payable

Top 3 in Procurement

RECOGNISED AGAIN AS MARKET LEADER

Leader with highest score for Adaptability

“an impressive company that offers a leading solution among global P2P providers”

Procure to Pay Navigator 2016

5

Basware scores highest in five categories

Q4 2016 HIGHLIGHTS

Extend cloud

P2P leadership

Accelerate

Network growth

Unleash

Financing

Services

SaaS revenues

+123.1%

29.7 million Q4

Transactions

(18.9%)

Maturing the

solutions

29 new P2P

SaaS deals

closed (vs 26 in

Q4 2015)

November

record month at

10.4m

54 deals signed

in total since

inception

Strategy:

Q4 2016

Progress:

6

CLOUD TRANSITION CONTINUED IN Q4 2016

Announced

2020 Goal:

Recurring

Revenues**

Cloud

Revenues*

Q4 2016

Progress:

80% Recurring>20% CAGR

2017 to 2020

73.6 %

Recurring vs

66.5 %

in Q4 2015

47.0 % Cloud

vs 38.5 %

in Q4 2015

* 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 7

27 Alusta SaaS

go-lives

vs 13 in Q4 2015

Express delivery

Productivity

programme initiated

in November 2016

Shift to AWS

infrastructure

Q4 INVESTMENTS FOR THE STRATEGY

Announced

Growth

Enablers:

Further

shortening of

delivery times

Investing in

demand

generation

and sales

Scalable

company

infrastructure

Q4 2016

Progress:

Sales and

marketing

headcount up

23.5%

Roll out of Account

Management

8

FINANCIAL REVIEW

NICLAS ROSENLEW

(EUR Thousands) Q4 2016 Q4 2015 Change 1-12 2016 1-12 2015 Change

Reported Net Sales 40 211 39 210 2.6% 148 580 143 410 3.6%

Organic Net Sales 37 401 39 156 -4.5% 138 137 140 192 -1.5%

Organic Net Sales at

Constant Currencies37 991 39 156 -3.0% 140 594 140 192 0.3%

KEY GUIDANCE METRICS

(EUR Thousands) Q4 2016 Q4 2015 1-12 2016 1-12 2015

Reported EBITDA -1 623 6 224 -5 394 11 902

Total Adjustments 5 283 559 7 456 219

Adjusted EBITDA 3 660 6 783 2 063 12 121

2.6% Net

Sales growth

(-3.0% organic

at constant

currencies)

in Q4 2016

10

Q4 2016 NET SALES PROGRESSION

EUR thousand Q4 2016 Q4 2015 Change

SaaS 7 173 3 216 123.1%

Transaction services 10 152 9 399 8.0%

Other Cloud 1 576 2 477 -36.4%

Cloud total 18 900 15 091 25.2%

Consulting services 9 360 10 315 -9.3%

Maintenance 10 075 10 387 -3.0%

License sales 1 962 3 397 -42.2%

Other Non-Cloud -86 21

Non-Cloud total 21 310 24 119 -11.6%

Group total 40 211 39 210 2.6%

• SaaS growth accelerated at

123.1% total, 60.5% organic

• Transaction services revenue

increased 8.0%; differences vs

transaction volume driven by

retroactive billing in Q4 2015

• Overall growth impacted by the

decline in non cloud revenues,

as well as weakness in the UK

11

Q4 OPERATING EXPENSES AND INVESTMENTS

• Operating Expenses increased by EUR 8.7 m versus Q4 2015. This included c. EUR 5m related to employee efficiency related measures

• Sales and marketing headcount grew 23.5% compared to 14.4% for group headcount

• R&D Expenses accounted for 17.0% of sales versus 15.5% in Q4 2015. This included c. EUR 1.6m related to employee efficiency related measures

Operating expenses include employee benefits, depreciations & amortizations, and other operating expenses

** 2016 number includes c. EUR 5m related to employee efficiency related measures

EUR thousand Q4 2016 Q4 2015 Change

Employee Benefit Expenses* 27 614 22 456 23.0%

Other Operating Expenses 9 623 6 517 47.7%

Depreciation and Amortization 2 391 1 919 24.6%

Total Operating Expenses 39 628 30 892 28.3%

Materials and Services 4 600 4 098 12.2%

R&D Expenses 6 845 6 096 12.3%

Capitalised R&D 3 179 2 889 10.0%

Personnel 1 891 1 652 14.4%

12

Q4 CASHFLOW AND BALANCE SHEET

• Cashflow from operating activities

was EUR -5.6 m in Q4

• Cashflow was impacted by the

increase in growth

investments

• EUR 35.8 m of cash and cash

equivalents

• Increase in cash position

compared to Q4 2015 related

to incomings from financing

and outgoings from

acquisitions and growth

related investments

(EUR Thousands) Q4 2016 Q4 2015

Cash flows from operating

activities-5 564 1 241

Net change in cash and

cash equivalents22 856 -3 682

Cash and cash equivalents* 35 755 33 238

* Includes short term deposits13

KEY GROUP REPORTED FINANCIALS

EUR thousand Q4 2016 Q4 2015 Change

Net sales 40 211 39 210 2.6%

Material and services -4 600 -4 098 12.2%

Personnel expenses* -27 614 -22 456 23.0%

Other operating expenses -9 623 -6 517 47.7%

EBITDA -1 623 6 224

Depreciation and amortization -2 391 -1 919 24.6%

Operating result (EBIT) -4 014 4 305

Net result -3 121 2 954

EPS, EUR (diluted) -0.22 0.21

* 2016 number includes c. EUR 5m related to employee efficiency related measures14

Q4 2016 SUMMARY HIGHLIGHTS

+ 25.2% Cloud

revenue growth

Adjusted

EBITDA

EUR 3 660K

+ 123.1% total

SaaS revenue

growth

+ 18.9%

Network

transaction

volume growth

+ 23.5% Sales

and Marketing

headcount

47.0% Cloud

Revenues

108 million full

year

Transactions

FinancialsSales

momentum

Investing in

growth

Transition to

cloud

Account

Management

Roll-out

15

OUTLOOK

VESA TYKKYLÄINEN

HOW BASWARE WILL SEIZE THE OPPORTUNITY

Customer

experience

High

performance

culture

Integrated &

high-quality

offering

Sales &

Marketing

effectiveness

Cloud

Revenue

Growth

Operational

excellenceInnovation

Grow the

Network

Extend P2P

Leadership

Expand Value

Added Services

17

2020 STRATEGY GOALS

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

2020 Strategic Goals

Cloud Revenue Growth

Continue to improve

underlying profitability

Strategic Priority

18

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

19

APPENDIX

BREAKDOWN OF REVENUES BY CURRENCY

• To enable further

understanding of

Basware’s exposure to

currency movements, a

breakdown of 2016

revenues split by

currency is provided:

55.4%

13.8%

10.5%

20.3%

EUR USD GBP Other

21

MORE INFORMATION:

www.basware.com/investors

www.basware.com

www.twitter.com/basware

www.facebook.com/BaswareCorporation

www.linkedin.com/company/basware

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