FINANCIAL RESULTS Q4/2015 & 2015 ESA TIHILÄ, CEO NICLAS ROSENLEW, CFO FEBRUARY 2, 2016

Transcription

1 FINANCIAL RESULTS Q4/2015 & 2015 ESA TIHILÄ, CEO NICLAS ROSENLEW, CFO FEBRUARY 2, 2016

2 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.

3 FINANCIAL RESULTS Q4/2015 & 2015 BUSINESS REVIEW

4 KEY EVENTS 2015 Cloud business developed favourably with significant growth in key markets The growth in Network Services continued throughout the year Position in public sector strengthened with Procserve acquisition Starting point for the next phase of growth Refined strategy for announced Net sales continued to grow strongly in the US, the UK and Germany, offsetting modest growth in Finland Tipping point reached in transition to cloud and SaaS-based company: Signed Alusta-based SaaS agreements more than doubled; Licence sales decline accelerated, offset by growth in SaaS Investments in Network Services and Financing Services business continued

5 Q4/2015 IN BRIEF Strong growth in net sales & operating profit: NETWORK SERVICES Net sales grew significantly (53.5% vs Q4 2014) Growth of transaction volumes continued, with 25 million transactions in Q4 SOLUTION SERVICES SaaS net sales grew 21.9% Licence sales declined at a similar pace to Q3 FINANCING SERVICES 25 new customers signed up since summer 2015 in the UK, the US and Finland for Basware Pay & Basware Discount Transition to the cloud continued Record number of Alustabased SaaS agreements signed in Q4 8.5 million Network transactions in October (alltime monthly high)

6 Q4/2015 KEY FINANCIALS Net sales EUR thousand (EUR thousand), +13.1% Operating profit EUR thousand (EUR thousand) Net sales EUR thousand Q1 Q2 Q3 Q

7 STRONG GROWTH IN NET SALES IN HIGH POTENTIAL MARKETS Net sales by markets (Q1-Q4 2015) Growth in net sales (2015 vs. 2014) Net sales in stable in mature markets Strong organic growth in key markets (1) Total: million (1) (1) (2) (1) Includes Procserve and partnership income. (2) Excludes Procserve and partnership income.

8 SIGNIFICANT GROWTH CONTINUED IN TRANSACTION VOLUMES Million transactions 30,0 25,0 20,0 15,0 10,0 5,0 ~94 million transactions in % versus Q1 Q2 Q3 Q

9 Q1/11 Q2/11 Q3/11 Q4/11 Q1/12 Q2/12 Q3/12 Q4/12 Q1/13 Q2/13 Q3/13 Q4/13 Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 Q2/15 Q3/15 Q4/ CONTINUOUSLY INCREASING SHARE OF RECURRING REVENUE EUR thousand 0 80,0 % 70,0 % 60,0 % 50,0 % 40,0 % 30,0 % 20,0 % 10,0 % 0,0 % The share of recurring revenue of net sales increased to 66.5 % (64.9%) in Q4/2015 Net sales Share of recurring revenue, rolling 4 quarters average

10 TIPPING POINT REACHED IN TRANSITION TO CLOUD AND SAAS Net Sales by type ( M, ) Transactions SaaS Consulting Licenses Maintenance Other Network related Cloud businesses drive growth Maintenance, license and consulting provide a solid base 2015 Net sales mix 2010 Net sales mix Maintenance, consulting and license SaaS and Network Note: Other Network related includes Procserve and alliance fee.

11 FINANCIAL RESULTS Q4/2015 & 2015 FINANCIAL REVIEW

12 EUR million KEY GROUP FINANCIALS 40,0 10,0 30,0 20,0 4,0 10,0 0,0 Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 Q2/15 Q3/15 Q4/15 Net sales Operating profit -2,0 EUR thousand Q Q Q4 15 vs Q4 14 growth FY 2015 FY 2014 YoY growth Net sales % % Material and services % % Personnel expenses % % Other operating expenses % % EBITDA % % Depreciation and amortization % % Operating result (EBIT) % % Net result % % EPS, EUR (diluted) % % Personnel (on average) % %

13 NETWORK SERVICES & SOLUTION SERVICES IN Q4/2015 EUR thousand SOLUTIONS SERVICES Net sales by business in Q4/2015: Solution Services (software solutions & services): EUR (25 489) thousand, -1.4%; Net sales increased versus Q3 in line with the seasonal trend License sales declined 25% vs Q (a similar pace to Q3) SaaS sales grew 21.9% vs Q Network Services (e-invoicing solutions & services): EUR (9 175) thousand, +53.5%; Net Sales growth includes Procserve Transaction volumes up 14.6% Q4 15 vs Q4 14 Transaction net sales up 16.8% Q4 15 vs Q NETWORK SERVICES (25 642, -0.6 %) 4 000

14 EXPENSES, FINANCING & INVESTMENTS Disciplined investment in the business: Operating expenses* amounted to EUR thousand ( ), +10.5% Operating expenses include approximately EUR thousand non-recurring expenses R&D expenses amounted to EUR thousand (17 680), 14.5% of net sales (13.8%) Capitalized R&D expenses amounted to EUR thousand (4 274) The operating cash flow amounted to EUR thousand (14 912) Strong balance sheet with cash & cash equivalents amounting to EUR thousand (28 954) Demonstrated ability to scale the business Opex growth kept lower than net sales growth in 2015 *Operating expenses include employee benefits, depreciations & amortizations, and other operating expenses

15 FINANCIAL RESULTS Q4/2015 & 2015 FUTURE OUTLOOK

16 MARKET AND COMPETITIVE SITUATION ALLOWS ACCELERATING GROWTH NETWORK PURCHASE TO PAY FINANCING SERVICES Penetration still low but accelerating Network is the foundation for value added services Fragmented standards, Basware the largest network, supporting all Growth picking up in key large markets Demand moving rapidly to cloud solutions Basware is a recognized market leader Alternative financing services attracting growing investment Basware an early leader, leveraging network data First solutions launched Accelerate Network growth Extend cloud Purchase to Pay leadership Unleash Financing Services

17 KEY PRIORITIES FOR TAKING THE NEXT STEP 1. Accelerating all three businesses: Accelerate Network growth Extend cloud Purchase to Pay leadership Unleash Financing Services 2. Supported and enabled by: Investing in demand generation and sales Further shortening of delivery times Scalable company infrastructure

18 BASWARE OUTLOOK FOR 2016 Organic revenue growth 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 EBITDA excluding non-recurring items at break-even Disciplined acquisition strategy continues in the e-invoicing key markets; in Europe & US Operating investments to be accelerated Expanding sales and marketing & go-to-market capabilities R&D capability and other investments to shorten implementation Supporting development of Financing Services offering

19 NEXT REPORT Q1 INTERIM REPORT ON APRIL 19, 2016 MORE INFORMATION: