RESULTSPRESENTATIONQ4 2018Vesa Tykkyläinen, CEONiclas Rosenlew, CFO

January 31, 2018

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.

2

CEO REVIEW

BASWARE IN BRIEF

Global leader in networked Source-to-Pay

Market potential worth EUR 15 billion annually

EUR 1 billion revenue long-term growth vision

SPEND SMARTERSIMPLIFY OPERATIONS

KEY EVENTS IN STRATEGY EXECUTION 2018

Partnering organization established

Move to a functional

organization

Scanning services outsourcing partnership

Disposingnon-core

businesses

Strategy updated: New mid-term

target and long-term growth

vision

Cloud revenues

+16%

Gross margin

53%

Employees

~1,400

Cloud order intake

+22%

CUSTOMER SUCCESS

EXAMPLES OF GLOBAL CUSTOMER WINS ACROSS INDUSTRIES IN 2018

CUSTOMER SUCCESS

EXAMPLES OF CUSTOMER TRANSFORMATIONS SIGNED IN 2018

#SUPERFINANCE IN Q1 2018

Value Leader in Spend Matters’ Q4 2018 Procure-to-Pay SolutionMap

New functions in Procurement Marketplace and Basware Analytics

LEADING INDUSTRY INNOVATION IN Q4/2018

New enablement services and PDF eOrder solution for suppliers

Q4/2018 HIGHLIGHTS

All time high quarterlycloud revenuesSTRATEGIC

PRIORITY: CLOUD REVENUE

GROWTH

9

Cloud revenues 66% of total

+58% more Partner deals

FINANCIAL REVIEW

ORGANIC CLOUD REVENUE GROWTHFEEDS TOTAL GROWTH

Cloud Non Cloud

66%

Cloud as a proportion of Q4

total revenues

Organic cloud growth at constant currencies in 2018

+16%

Organic total growth at constant currencies in 2018

+5%

11

0,0

5,0

10,0

15,0

20,0

25,0

Q4/2017 Q4/2018 2017 2018

17.9 21.5

CLOUD ORDER INTAKE GROWTH

EUR

mill

ion

• Includes all SaaS and Network recurring revenues

• Time lag to visibility in revenues:• ~1/4 year 1• 50-60% year 2

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 all SaaS and Network recurring revenues including transaction revenues. Gross 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.*Organic constant currency growth rate

12

4.9 5.9

Q4/2018 NET SALES PROGRESSION

• Headline growthimpacted bydisposals

• Significant cloud potential in existing maintenance customer base being addressed

Net sales by revenue type, EUR thousand

10-12 2018

10-122017

Change Change*

Clou

d

SaaS 10 866 9 532 14.0% 21.0%

Transaction services 11 758 10 770 9.2% 9.3%

Other cloud revenue 1 292 1 310 -1.4% -1.3%

Cloud Revenue total 23 916 21 612 10.7% 13.6%

Non

-Clo

udMaintenance 5 899 8 856 -33.4% -12.6%

License sales 661 1 383 -52.2% -20.6%

Consulting services 6 063 7 447 -18.6% -6.3%

Other non-cloud revenue -52 -54

Non-Cloud Revenue total 12 571 17 631 -28.7% -10.2%

Group Total 36 488 39 243 -7.0% 4.1%

*On an organic basis at constant currencies 13

Q4/2018 PROFITABILITY

• Growth rates impacted by disposals and sales and marketing investments

EUR thousand 10-12 2018

10-12 2017

Change

Net sales 36 488 39 243 -7.0%

Cost of sales -17 026 -19 087 -10.8%

Gross profit 19 462 20 156 -3.4%

Sales and marketing -11 969 -9 947 20.3%

Research and development -6 848 -7 603 -9.9%

General and administration -4 061 -4 465 -9.0%

Total operating expenses -22 878 -22 014 3.9%

Other operating income and expenses

-433 -1 004 -56.9%

Operating profit/loss -3 850 -2 862 -34.5%

Adjustments 431 1 023 -57.9%

Depreciation and amortization 2 593 2 747 -5.6%

Adjusted EBITDA -826 90814

UNDERLYING PROFITABILITY

15

EUR

~8m

EUR

~6.6m

EUR ~0.7m

2017

Adjusted EBITDA

EBITDA

contribution

of disposed

businesses

in 2017

Additional

S&M Spend

in 2018

Underlying

profitability

improvement

~EUR 7.6m

EUR

- 4.4m

Additional

share-based

compensation

in 2018

EUR

3.3m

Ad

jus

ted

EB

ITD

A (

EU

Rm

)

2018

Adjusted EBITDA

Q4/2018 CASH FLOW AND BALANCE SHEET

• Strong liquidity position with cash and undrawn bank facilities totalling EUR 51 million

EUR thousand 10-122018

10-122017

Cash flows from operating activities -2 840 -1 795

Net change in cash and cash equivalents -5 323 -4 566

Cash and cash equivalents 40 747 20 683

Total available liquidity* 50 747 30 683

*Includes undrawn bank facilities and short term deposits16

IFRS 16 ESTIMATED IMPACT 2019

EBITDA

Assets and liabilities

EUR 4-6 million

EUR 17.5-19.5 million

Basware implements IFRS16 from 1 January 2019 onwards. The estimates describe the approximate impact on full year 2019 EBITDA and assets and liabilities.

Total revenues to grow at

approximately 5%

Cloud revenues to grow at

approximately 15%

OUTLOOK FOR 2019BASWARE’S NUMBER ONE STRATEGIC PRIORITY IS CLOUD REVENUE GROWTH.

FOR 2019 BASWARE EXPECTS SCALABLE CLOUD GROWTH TO CONTINUE*:

*On an organic basis at constant currenciesAfter IFRS16 changes have been applied.

18

Adjusted EBITDA to be at breakeven or

better