SIMPLIFY OPERATIONS, SPEND SMARTERMay 2018

IMPORTANT NOTICEThe 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.

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SPEND SMARTER

WHY BASWARE

100% Digital Processes

Network is the Differentiator

EUR 15bn Market Opportunity

SIMPLIFY OPERATIONS

INVESTMENT HIGHLIGHTS

Large addressable market

Market leadership

Differentiated offering

Strong areas of growth

• EUR 15bn market

• Best end-to-end networked source-to-pay

• Largest e-invoicing network• Analytics leadership• Industry innovator leveraging large dataset

• Expansion in core business• Cloud-based model

THE PROBLEMS WE HELP OUR CUSTOMERS SOLVE

✓ INCREASE EFFICIENCY

✓ MANAGE SPEND

✓ RELEASE CASH FROM OPERATIONS

PROCESS INEFFICENCY

EXCESSIVE SPENDING

LACK OF VISIBILITY

5

HUGE MARKET OPPORTUNITY

EVERY ORGANISATION NEEDS OUR HELP

(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 as of 2017

6

UNDERPENETRATED MARKET

Structural growth drivers include:

• Digitalisation

• Automation

• Public Sector Initiatives EUR 149 million Basware 2017 revenues

EUR 5 billion

Current market(1)

EUR 15 billionMarket potential(1)

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Leader with highest score for Geographic Strategy

“a pioneer in the open B2B network approach… it attained our highest score for e-invoicing”

MAGIC QUADRANT FOR PROCURE TO PAY SUITES 2016“an impressive company that offers a leading solution among global P2P providers”

PROCURE TO PAY NAVIGATOR 2016

Leader with highest score for Adaptability

“a particularly strong fit for enterprises that want to automate processing of high invoice

volumes”

Leader with highest score for invoice automation

2017

BASWARE IS A RECOGNIZED MARKET LEADER

FINANCE / PROFESSIONAL PUBLIC SECTOR

TELCO / MEDIA

SERVICES TRANSPORT/LODGING/REAL ESTATE

MANUFACTURING

FOOD / BEVERAGEENERGY / UTILITY

HEALTHCARE / PHARMAAUTOMOTIVE

INDUSTRIALS

RETAIL

BASWARE CHOSEN BY CUSTOMERS ACROSS THEWORLD AND ACROSS INDUSTRIES

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• >1 million organisations connected to our Network

• 2500+ large customers use our Source-to-Pay software

• Support customers in more than 100 countries

VALUE TO CUSTOMERS OF BASWARE SOLUTIONS

307% Return on Investment

45% Reduction in Invoice Processing Costs

12 Month Payback Time

The Total Economic Impact™ Of Basware’s Purchase-To-Pay Cloud Solution

Link to report:

WHY BASWARE WINS

Largest Global Partner and

Interoperability Network

100% DAY 1 100%

100% Onboarding of Suppliers of All

Sizes

Day 1Invoice

Processingfor All Formats

100% Capture of Spend,

Including Non-PO and Direct

Procurement Solutions Built

for the Way People Work

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HUGEDATA ASSET

Largeste-invoicing network

>120 milliontransactions

annually

>EUR 600 billionannual spend on

Basware’s network

Open Network Philosophy

220+interoperability

partners

1.2M+active buyers and

suppliers

Multi-lingual, Multi-format

>70eInvoice formats

supported

VAT compliance

in more than 50countries

Global Trusted Partner

Used in more

than 100countries

Connected to main

governmenthubs

OPEN NETWORK IS DIFFERENTIATOR

GROWTH IS JUST GETTING STARTED

Performance Culture Productivity

Cloud Focused Strategy

• 6 / 9 New Executive Team Members in last 2 years

• 383 new / 1831 total employees globally in 2017

• Management are shareholders

• Sales productivity up 68% in 2017

• Successful implementation of productivity programme announced 2016

• Transition to AWS

• Refined strategic focus areas

• Sale of non-core assets

• Cloud and geographical revenue mix already coming through

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BASWARE LEADS INDUSTRY INNOVATION WITH #SUPERFINANCE

Analytics:Peer Benchmarking, Supplier Quality

Machine Learning:Smart Coding, Predictive Analytics

Value Added Services:Vault, Discount

THE BEST GLOBAL SOLUTION FOR PURCHASING, INVOICING AND PAYING

The best global solution for purchasing, invoicing and paying

Basware’s VisionCloud revenue growth>20% CAGR*

Customer value beyond expectations

#1 networked Source-to-

Pay offering

Largest and smartest

commerce network

Undisputed market leader

*2017 to 2020 on an organic basis

Cost of goods sold and opex to grow at a lower rate than cloud revenues*

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0102030405060708090

100

2013 2014 2015 2016 20170

10

20

30

40

50

60

70

80

2013 2014 2015 2016 2017

NON-CLOUDENABLED BY

TWO ENGINES OF GROWTH

Net

Sal

es, E

UR

mill

ion

• Consulting• Maintenance• Licence

• SaaS• Transaction Services• Value Added Services

CLOUD

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SOLID ORGANIC CLOUD REVENUE GROWTH IN Q1

Cloud Non Cloud

59%

Cloud as a proportion of total revenues

in Q1 2018

Organic Cloud Growth at Constant

Currencies in Q1 2018

+18.4%

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STRONG ORDER INTAKE AND LOW CHURN

Subscription annual recurring revenue gross order intake is calculated by summing the total order intake in the period expres sed as an annual contract value. This includes SaaS and other subscription types. Transaction 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.

Strong Growth in Subscription Order Intake2016-2017 Low Net ARR Churn

0.2% in 2017

Gross ARR Churn 7% in 2017

Customer lifetimes 10 to 20 years

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+63%

Maintenance SaaS

SAAS GROWTH SUPPORTED BY TRANSFORMATIONS

New customers and add-ons

Transformation from Maintenance

Roughly Half of Subscription Order Intake from Maintenance

Customers in 2017

Cloud vs Licence

Solution Expansion

Components of Revenue Uplift from Transformation

Resulting in Significant Revenue Uplift per Customer

GeographicalExpansion

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SHIFT IN REVENUE MIX SUPPORTSFUTURE GROWTH ACCELERATION

20172014

Cloud

Non-Cloud

International Business Growing

Cloud Revenues More Than 50%

Rest of World

US

Nordics

Other key markets (UK, Germany, France)

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Q1 2018 NET SALES PROGRESSION

• Continued transition to Cloud model

• Partner sales growth

• Non-cloud performance in line with expectations

• Impact from disposals and FX

Net sales by revenue type (EUR thousand)

1-3 2018 1-3 2017 Change Organic Growth at Constant Currencies

Clou

dR

even

ue

SaaS 9 576 8 002 19.7 % +29.7 %

Transaction services 10 476 9 471 10.6 % +13.1 %

Other cloud revenue 1 291 1 444 -10.6 %

Cloud Revenue total 21 343 18 917 12.8 % +18.4 %N

on-C

loud

R

even

ue

Maintenance 7 836 9 849 -20.4 %

License sales 542 900 -39.7 %

Consulting services 6 337 7 071 -10.4 %

Other non-cloud revenue -89 73

Non-Cloud Revenue total 14 627 17 893 -18.3 %

Group Total 35 969 36 810 -2.3 % +5.3 %20

PATH TO PROFITABILITY

2017 Mid Term*Cloud Gross Margin 60% 67-72%Total Gross Margin 49% 55-60%R&D as % of Revenue** 20% 15-20%S&M as % of Revenue** 24% 25-30%G&A as % of Revenue** 9% 8-10%EBITDA Margin*** 2% 12-15%Operating Margin -6% 5-8%

* 2020** Including depreciation and amortisation*** Excluding adjustments to EBITDA 21

+6% points

Gross Margin Improvement

Q1 2018 vs Q1 2017

ACQUISITIONS SUPPORT BASWARE STRATEGY

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WITH M&A OUR PRIORITIES ARE...• Buy technology or capability to

further strengthen our offering • Extend Basware Network

OUR KEY CRITERIA INCLUDES...• Bring substantial value to

customers• Gain points of differentiation• Extend market presence and

accelerate growth

DISCIPLINED APPROACH TO ACQUISITIONSYear Company Country Key rationale

2016 Verian US Strengthen market position in the US. Extend Network to Verian customers. Strengthen eProcurement

2015 Procserve UK Access to UK public sector customers to leverage the eInvoicing opportunity

2013 Certipost Benelux Gain a significant position in the Benelux e-Invoicing market

2012 1st BP Germany Become a leading e-Invoice operator in Germany

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WHY INVEST IN BASWARE?

Market leadership

Large addressable market

Differentiated offering

Strong areas of growth

APPENDIX

Q1 2018 PERFORMANCE AND OTHER FINANCIAL INFORMATION

Q1 2018 PROFITABILITY

• New functional P&L format

• Growth rates impacted by disposal and FX

(EUR thousand) 1-3 2018 1-3 2017 Change

Net sales 35 969 36 810 -2.3 %

Cost of sales -17 913 -20 476 -12.5 %

Gross profit 18 056 16 334 10.5 %

Sales and marketing -9 879 -9 395 5.2 %

Research and development -6 811 -7 830 -13.0 %

General and administration -3 868 -3 257 18.8 %

Total operating expenses -20 558 -20 483 0.4 %

Other operating income and expenses

14 997 -934

Operating profit/loss 12 495 -5 084

Adjustments -15 113 898

Depreciation and amortization -2 630 -2 592 1.5 %

Adjusted EBITDA 12 -1 59326

Q1 2018 CASH FLOW AND BALANCE SHEET

• Strong liquidity position with cash and undrawn bank facilities totalling EUR 64 million

(EUR thousand) 1-3 2018 1-3 2017

Cash flows from operating activities 7 111 7 466

Net change in cash and cash equivalents 33 685 -3 464

Cash and cash equivalents 54 183 32 281

Total available liquidity* 64 183 42 281

* Includes undrawn bank facilities and short term deposits

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Cloud revenues between EUR 90 and

EUR 95 million

Total costs slightly above 2017 levels**

2018 FULL YEAR OUTLOOK

Basware’s number one strategic priority is cloud revenue growth.

FOR 2018, BASWARE EXPECTS*:

*On an organic basis at constant currencies**Excluding D&A and adjustments to EBITDA 28

ILLUSTRATIVE ORGANIC CONSTANT CURRENCY IMPACT*

2018 Cloud Revenues Reported

FY 2018 FX impact (expected)**

Total FX and disposal impact

X

EUR 2.0m

EUR 4.3m

FY 2018 disposal impact*** EUR 2.3m

2018 Cloud Revenues Organic at Constant

CurrenciesX + EUR 4.3m

2018 costs excluding D&A and adjustments

FY 2018 FX impact (expected)**

Total FX and disposal impact

Y

EUR 4.0m

EUR 7.0m

FY 2018 disposal impact****

EUR 3.0m

2018 Costs Organic at Constant Currencies

Y + EUR 7.0m

* Illustrative, final numbers will only be available at year end** Expected FX impact as of 31 March 2018, total effect will change with further FX movements*** 2017 cloud revenues plus 2017 subscription order intake for disposed businesses**** 2017 carve-out costs adjusted for TSA costs

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2,5

3,8

2,0

2,92,7

0,0

0,5

1,0

1,5

2,0

2,5

3,0

3,5

4,0

Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018

SUBSCRIPTION ARR GROSS ORDER INTAKE

EUR

m

• Subscription annual recurring revenue gross order intake quarterly

• Numbers restated to account for changes in revenue recognition practices and disposal (see notes to Q1 2018 interim report)

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. Transaction 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. 30

FROM ORDER INTAKE TO REVENUE GROWTH

EURm

Baseline

Order Intake

Components of SaaS growth

Churn

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THE SAAS TRANSITION: LOWER UPFRONT BUT HIGHER RECURRING REVENUES

Year 1 Year 2 Year 3 Year 4 Year 5

License and Maintenance

Year 1 Year 2 Year 3 Year 4 Year 5

SaaS

Year 1 Year 2 Year 3 Year 4 Year 5

License & Maintenance SaaS

Year 2 Year 3 Year 4 Year 5

Maintenance SaaS

On-Premise Deal: Upfront License Payment + Annual Maintenance Payments

SaaS Deal: Monthly Payments

Cumulative Revenues from Year 1

Cumulative Revenues from Year 2

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OTHER

WHAT WE DO

• We help our customers simplify operations and spend smarter

• We do this by automating their procurement and finance processes

• This helps customers increase efficiencies and reduce unnecessary spend

KEY FACTS

• Net sales €149m in 2017

• Supporting customers in > 100 countries

• Offices in Europe, the US and Asia-Pacific

• 1800+ Employees

MARKET LEADER

• Largest e-invoicing network in the world

• Number one in accounts payable automation

• Top 3 in procurement

• Cloud based solutions

BASWARE IN BRIEF

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THE PROCESS WE HELP CUSTOMERS IMPROVE

Choose supplier and products

Shop

Approve

NETWORKED SOURCE TO PAY

Receive Match

Order Invoice Pay

Sourcing Procurement Accounts payable automation Pay

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SUSTAINABLE BUSINESS MODEL

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* Office based per employee GHG emissions

Basware helps customers move to 100% paperless

GHG emissions reduction target: 20% by 2020*

Environmental Policy since 2018Code of Conduct since 2016

SHAREHOLDER BREAKDOWNTOP 20 INSTITUTIONAL

SHAREHOLDERS

INTERNATIONAL SHAREHOLDER DEVELOPMENT

SHAREHOLDER DISTRIBUTION

12% 51%

2013 Y/E 2018 Q1

% of sharesQ1 2018 Country

37

Households6%

Other6%

Other founders

16%

Executive team and

Board7%

Finnish institutional

investors17%

International institutional

investors49%