FINANCIAL RESULTSQ1 2016

ESA TIHILÄ, CEO

NICLAS ROSENLEW, CFO

APRIL 19, 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

ESA TIHILÄ

CEO REVIEW

BASWARE IS THE LEADING PROVIDER OF NETWORKED PURCHASE-TO-PAY SOLUTIONS

E-invoicing solutions &

operator between

buyers & suppliers

• 1 million connected

companies in over 100

countries

Invoice automation,

procurement & travel and

expense management

software and analytics

• 2500+ large customers, 1.2

million users

New value added

innovations: Basware Pay,

Basware Discount &

Basware Advance

• Partnerships include e.g.

MasterCard, Arrowgrass, ING,

WEX

PURCHASE TO PAY

NETWORK

FINANCING SERVICES

A complete and integrated solution:

• Largest e-invoicing network

• # 1 B2B Commerce Network

• # 1 in Accounts Payable

• Top 3 in Procurement

• Working Capital Platform

IN JANUARY BASWARE DEFINED ITS 2016-2018 PRIORITIES FOR TAKING THE NEXT STEP

Extend cloud

Purchase to Pay

leadership

Accelerate

Network growth

Unleash

Financing

Services

1. Accelerating all three businesses:

2. Supported and enabled by:

Further

shortening of

delivery times

Investing in

demand

generation

and sales

Scalable

company

infrastructure

Q1 2016 HIGHLIGHTS

Extend cloud

Purchase to Pay

leadership

Accelerate

Network growth

Unleash

Financing

Services

Accelerated

growth in SaaS

revenues

(+30.4%)

24.8 million Q1

Transactions

(+12.3%)

15 deals closed

26 new Alusta

SaaS deals

closed (vs 11 in

Q1 2015)

March record

month at 8.7

million

First clients

starting to use

Financing

Services

Accelerate

businesses:

Q1 2016

Progress:

CLOUD TRANSITION ACCELERATED IN Q1 2016

Announced

2018 Goal:

Recurring

Revenues**

Cloud

Revenues*

Q1 2016

Progress:

80% Recurring2/3rds Cloud

72.9% Recurring

vs 63.7%

in Q1 2015

42.1% Cloud

vs 29.8%

in Q1 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, non-recurring consulting revenue and alliance fees

Piloted rapid

deployment

methodology for

Alusta

Greater regional

oversight of project

delivery

Moved to global

allocation of

resources in

Professional

Services

Continued focus on

cost base

Q1 INVESTMENTS FOR THE STRATEGY

Announced

Growth

Enablers:

Further

shortening of

delivery times

Investing in

demand

generation

and sales

Scalable

company

infrastructure

Q1 2016

Progress:

Sales and marketing

headcount up 16.3%

Biggest increases to

come in Q2

Marketing campaigns

targeted at key

geographies and

SMB

Verian

acquisition

announced

WEX partnership

announced

Supports 2018 Strategy

Focus on key markets

Expanding to mid

market customers

Growing cloud

revenues

Q1 ACQUISITION AND PARTNERSHIPACTIVITY SUPPORTS THE 2018 STRATEGY

Further strengthens

Basware’s market position

in the US

Stronger customer

offering through enhanced

eProcurement

Extends the Basware

Commerce Network

Expands reach of Basware

Pay to SMB segment,

particularly in US

NICLAS ROSENLEW

FINANCIAL REVIEW

Network

Services

EUR 49

million

REPORTING DEFINITIONS

Solution

Services

EUR 94

million

SaaS

EUR 12 million

Maintenance

EUR 42 million

Licence Sales

EUR 11 million

Consulting Services

EUR 36 million

Transaction Services

EUR 33 million

Other

EUR 10 million

Illustrative 2015 Bridge to Net Sales Types:• Basware reports one operating segment

comprised of the whole group

• From Q1 2016 onwards Basware will

introduce new metrics:

• Organic net sales growth at

constant currencies (reported net

sales adjusted for acquisitions,

non-recurring revenues and FX

movements)

• Adjusted EBITDA (EBITDA adjusted

for non-recurring revenues and

costs)

• To enhance understanding of our

business model, Basware will

report net sales by type, in addition

to net sales by business area

(EUR Thousands) Q1 2016 Q1 2015 Change

Reported Net Sales 34 125 34 041 0.2 %

Organic Net Sales 31 761 30 987

Organic Net Sales at

Constant Currencies32 061 30 987 3.5 %

(EUR Thousands) Q1 2016 Q1 2015

Reported EBITDA -867 2 790

Non-Recurring Revenues -3 054

Non-Recurring Costs 350 282

Adjusted EBITDA -517 18

Reconciliation

between

adjusted and

reported figures:

KEY GUIDANCE METRICS

Q1 2016 NET SALES PROGRESSION

EUR thousand Q1 2016 Q1 2015 Change

Transaction

services8 403 7 407 13.4%

SaaS 3 563 2 731 30.4%

Consulting

services8 117 7 895 2.8%

Maintenance 10 132 10 462 -3.2%

License

sales1 501 2 548 -41.1%

Other

revenue2 410 2 998 -19.6%

Group total 34 125 34 041 0.2%

• Total organic net sales growth of

3.5% (0.2% reported)

• Network transaction net sales

continued on a steady growth

path at 13.4%

• SaaS growth accelerated at 30.4%

• Overall growth impacted by the

41.1% decline in license sales,

maintenance as well as the Q1

2015 EUR 3M alliance fee

Q1 OPERATING EXPENSES AND INVESTMENTS

• Operating Expenses increased by EUR 4.3m versus Q1 2015 (14.9%)

• Sales and marketing headcount grew 16.3% compared to 13% for group headcount

• R&D Expenses accounted for 16.4% of sales versus 14.1% in Q1 2015

• While investing for growth, focus on efficiency of the cost base continued

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

EUR thousand Q1 2016 Q1 2015 Change

Employee Benefit Expenses 23 848 20 811 14.6 %

Other Operating Expenses 7 533 6 449 16.8 %

Depreciation and Amortization 1 848 1 658 11.5 %

Total Operating Expenses 33 230 28 918 14.9 %

Materials and Services 3 611 4 009 -9.9 %

R&D Expenses 5 581 4 808 16.1 %

Capitalised R&D 2 265 1692 33.9 %

Personnel 1 713 1 516 13.0 %

Q1 CASHFLOW AND BALANCE SHEET

• Cashflow from operating activities

was EUR 12.2m in Q1

• Q1 traditionally strongest for

cash inflows due to maintenance

payments

• As Basware transitions to SaaS

and Cloud, this effect is

reducing

• Cash position continues to be strong,

with EUR 54.7m of cash and cash

equivalents

• EUR 15.3m related to funding for

the Verian acquisition that was

not utilised until 1st April 2016

(EUR Thousands) Q1 2016 Q1 2015

Cash flows from operating

activities12 232 19 775

Net change in cash and

cash equivalents21 809 14 349

Cash and cash equivalents* 54 653 73 624

* Includes short term deposits

KEY GROUP REPORTED FINANCIALS

EUR thousand Q1 2016 Q1 2015 Change

Net sales 34 125 34 041 0.2%

Material and services -3 611 -4 009 -9.9%

Personnel expenses -23 848 -20 811 14.6%

Other operating expenses -7 533 -6 449 16.8%

EBITDA -867 2 790

Depreciation and amortization -1 848 -1 658 11.5%

Operating result (EBIT) -2 716 1 132

Net result -2 883 595

EPS, EUR (diluted) -0.21 0.04

OUTLOOK

ESA TIHILÄ

2016 FULL YEAR OUTLOOK

• Organic revenue growth at constant currencies of 5 percent or more

• SaaS revenue expected to grow; strong growth of Basware Commerce Network to be sustained

• Continued increase in recurring revenue to outpace progressive slowdown in license revenues

• Temporary pressure on margins driven by growth investments

• Growth related operating investments expected to amount to approximately EUR 20 million

• Adjusted EBITDA (excluding non-recurring items) at break-even

• Disciplined acquisition strategy continues in the e-invoicing key markets; in Europe & US

Q1 2016 SUMMARY HIGHLIGHTS

+ 3.5% Organic

revenue growth

at constant

currencies

Adjusted

EBITDA

EUR -517K

30.4% SaaS

growth, record #

of deals

15 Financing

Services deals

closed

+ 16.3% Sales

and Marketing

Headcount

+ EUR 4.3m

Operating

Expenses

42.1% Cloud

Revenues

24.8 million

Transactions

FinancialsSales

MomentumInvesting in

GrowthTransition to

Cloud

MORE INFORMATION:

www.basware.com/investors

www.basware.com

www.twitter.com/basware

www.facebook.com/BaswareCorporation

www.linkedin.com/company/basware

Q2 INTERIM REPORT ON JULY 19, 2016

NEXT REPORT

HISTORICAL NET SALES TYPE BREAKDOWN

EUR million

34.036.6

33.6

39.2

34.1

Licence Sales

Maintenance

Consulting Services

SaaS

Transaction Services

Other

2.5 2.9 2.1 3.41.5

10.1

8.1

3.6

8.4

2.4

2.5

10.4

10.3

3.2

9.42.6

10.3

7.9

2.9

7.8

2.1

10.5

9.5

3.0

8.6

3.0

10.5

7.9

2.7

7.4