BASWARECAPITAL

MARKETS DAY

9 February 2018London

TODAY’S BASWARE PRESENTERS

Vesa Tykkyläinen, CEO

Niclas Rosenlew, CFO

Ilari Nurmi, SVP P2P

Paul Taylor, SVP Sales

Lars Madsen, CMO

Mikko Pilkama, SVP Network & Financing Services

Tehseen Dahya, Executive Advisor

CAPITAL MARKETS DAY PROGRAMME0830 Coffee & welcome0845 Introduction Vesa Tykkyläinen, CEO

0925 Basware Solutions DemoLauri PalokangasDirector, Product Marketing

1025 Coffee Break

1045 Marketing: Customer Value Beyond Expectations Lars Madsen, CMO

Sales: Undisputed Market Leader Paul Taylor, SVP Sales1140 Buffet Lunch

1230 #1 Networked Source-to-Pay Offering Ilari Nurmi, SVP Purchase-to-Pay

1300 Largest and Smartest Commerce NetworkMikko PilkamaSVP Network and Financing Services

1330 Coffee Break

1350 Winning in North America Tehseen Dahya, Executive Advisor

1420 Path to Scalable Growth Niclas Rosenlew, CFO

1500 Concluding Remarks Vesa Tykkyläinen, CEO

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.

INTRODUCTION

Vesa TykkyläinenCEO

SPEND SMARTER

WHY BASWARE

100% Paperless Processes

Network is the Differentiator

EUR 15bn Market Opportunity

SIMPLIFY OPERATIONS

6 / 9 NEW EXECUTIVE TEAM MEMBERS IN LAST 2 YEARS

Vesa Tykkyläinen, CEO

Niclas Rosenlew, CFO

Ilari Nurmi, SVP P2P

Paul Taylor, SVP Sales

Lars Madsen, CMO

Mikko Pilkama, SVP Network & Financing Services

Eric Wilson, SVP North America

Jussi Vasama, SVP Customer Services

Jane Broberg, SVP HR

WHY INVEST IN BASWARE

HUGE MARKET OPPORTUNITY

THE MARKET LEADER

GROWTH IS JUST STARTING

THE PROBLEMS WE HELP OUR CUSTOMERS SOLVE

✓ INCREASE EFFICIENCY

✓ MANAGE SPEND

✓ RELEASE CASH FROM OPERATIONS

PROCESS INEFFICENCY

EXCESSIVE SPENDING

LACK OF VISIBILITY

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

10

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)

11

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

BASWARE LEADS INDUSTRY INNOVATION FOR 30+ YEARS

1985 Basware founded

1997 First invoice processing software launched

2003 E-invoicing launched

2012 Cloud-based P2P solution launched

2014 Financing services launched

2017 Peer benchmarking in Analytics, Network VAS

• >1 million organisations connected to our Network

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

FINANCE / PROFESSIONAL PUBLIC SECTOR

TELCO / MEDIA

SERVICES TRANSPORT / LODGING

MANUFACTURING

FOOD / BEVERAGEENERGY / UTILITY

HEALTHCARE / PHARMAAUTOMOTIVE

INDUSTRIALS

RETAIL

BASWARE CHOSEN BY CUSTOMERS ACROSS THEWORLD AND ACROSS INDUSTRIES

13

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%

• 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

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)

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*

WHY INVEST IN BASWARE

HUGE MARKET OPPORTUNITY

THE MARKET LEADER

GROWTH IS JUST STARTING

BASWARE SOLUTIONSDEMOLauri PalokangasDirector, Product Marketing

SIMPLIFY OPERATIONS, SPEND SMARTER

Receive

Order

Shop

Invoice

Match

Pay Source

100% End-users

PredictiveAnalyticsSPEND, PROCESS & CASH FLOW INSIGHTS

Analyze

100% Suppliers

100% Capture

100% Visibility

100% Adoption

MARKETING: CUSTOMER VALUE BEYOND EXPECTATIONSLars MadsenCMO

FOCUS ON LARGE MULTINATIONAL CUSTOMERS

(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

21

EUR 5 billion

Current market(1)

EUR 15 billionMarket potential(1)

Category A+

Category A

Other

Example Customers

Regional / local

UNDISPUTED MARKET LEADER

Deliver the best global solution for purchasing, invoicing and paying

Help our customers simplify operations and spend smarter

Enable our customers to realize tomorrow’s financial goals today

VISION

MISSION

PROMISE

NEW WEBSITE ALIGNED WITH NEW BRAND

WEBSITE TRAFFIC

WEBSITE CONVERSION

2017 GLOBAL MARKETING PROGRAMS

GROW YOUR BUSINESS

FUTURE OF FINANCE

TOMORROW’S GOALS TODAY

CPO / PROCUREMENT

CFO / FINANCEEXECUTIVE

TARGET PERSONAS

TREASURER

INNOVATIVE GLOBAL CAMPAIGNS

SIMPLIFYOPERATIONS

SPENDSMARTER

RELEASE CASH

CUSTOMER VALUE BEYOND EXPECTATIONS

CHALLENGE AND ADVISE

PROVE VALUE (& PRICE POINT)

DRIVE CUSTOMER SUCCESS

GENERATE DEMAND

ROLE OF VALUE ENGINEERINGSIMPLIFY OPERATIONS

SPEND SMARTER

RELEASE CASH

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

WHAT OUR CUSTOMERS SAY

Network and invoice automation is a differentiator

“ ““The solution supports justabout any international

invoice format and facilitate communication at all levels,

such as via Value Added Networks, or via the Internet.”

Lode ReyskensICT Business Analyst

Philips

“Functionality, usability and the ability to incorporate

multiple sites and languages were high on our wish list and

Basware delivered on every count.”

Betina Rehné MathiesenHead of Shared Business IT

Solutions, Falck A/S

““Basware’s purchase-to-pay solution allowed us to make a

safe jump from electronic workflow to true invoice

automation.”

Kyösti BergdahlProject and Development

Manager, DNA

““Basware has helped us to achieve a 75% reduction in

invoice cycle time, down from four weeks to five days, so we

are processing the 250,000 invoices we handle per annum

much more efficiently”.

Steve KatonaUK Accounts Payable Manager

ADT and TF&IS, Tyco

THE CUSTOMER BUSINESS CASE FOR BASWARE’S SOLUTIONS

Source: “Total Economic Impact of Basware’s Purchase-to-Pay Cloud Solution”, Forrester 2017, link below:

ROI 307%

Payback time 12 months

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

CUSTOMER VALUE BEYOND EXPECTATIONS

New Brand Changes the Game

Increased Marketing Effectiveness

Value Based Selling

SALES: UNDISPUTED MARKET LEADERPaul TaylorSVP Sales

ACQUIRE, MAINTAIN, DEVELOP

Net New Names

Transformation Upsell

ACQUIRE MAINTAIN DEVELOP

33

Geographies where Basware supports customers

Basware supports

customers in more

than

100Countries

GEOGRAPHICAL REACH IS DIFFERENTIATOR

CUSTOMER ENGAGEMENT MODEL

LARGER CUSTOMERS

MID-MARKET CUSTOMERS

• Served intimately• Account teams• Advisory services

Customer driven engagement approach:

• Standardization• Time to value• Self-service tools

Discover Evaluate & buy

Deploy & use

Maximize benefit

Buy more

…across the full customer journey:

Category A+

Category A

Other

Example Customers

Regional / local

NEW SALES LEADERS

JerryEllis, US

Louis Fernandes, UK

Jens Burmester, Germany

Dany De Budt, Benelux

Torstein Skjaeran, Norway

36

Incentives alignedwith ARR

Discipline around pipeline management

Increased focus on customer satisfaction

FOCUS IN 2017

IMPROVING SALES EFFICIENCY IN 2017

Focused Sales GTM & Territory

Management

P2P transformation & Network only

concepts

Integrated Demand

Management

Account management &

Account planning

Basware Partner

Framework

Value engineering & best practices

framework

Key deal & closing plan

review process

Qualification & RFP best practises

Sales Opportunity Management

process

CRM data ownership and

quality

Sales agreement and

pricing simplification

Skills development in

selling value

Quarterly LMS programs for

knowledge transfer

Onboardingprogram for

Aes, Sales Mgnt & Presales

Sales Competence Development

Framework

Individual performance management

Sales coaching

Sales activity management &

visibiliity

Must win case & key deal visibility

AE Pipeline & Performance

visibility

Sales (productivity)

KPIs

SALES STRATEGY, PLANNING & GOVERNANCE

PROCESS & TOOLS

SALES TALENT MANAGEMENT

METRICS & REWARDS

Performance Culture

SALES PRODUCTIVITY INCREASES

Effects of efficiency measures visible in significant increase in sales productivity

FY 2016 FY 2017

ARR Order Intake* per Quota Carrier

*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.

EXTENDING VALUE WITH PARTNER ECOSYSTEMVALUE ADDED RESELLERS BUSINESS PROCESS OUTSOURCING FINANCING SERVICES

NETWORK

TECHNOLOGY & SOLUTION

SALES: UNDISPUTED MARKET LEADER

Basware wins by selling and delivering value

Sales productivity up significantly

Partner strategy multiplies sales potential

#1 NETWORKED SOURCE-TO-PAY OFFERINGIlari NurmiSVP Purchase-to-Pay

WORLD-LEADING SOURCE-TO-PAY SUITESOURCING AND PROCUREMENT

ACCOUNTS PAYABLEAUTOMATION

ANALYTICS

• 100% invoice capture• 100% automation• PO and non-PO

invoices, direct and indirect invoices

• Leading module in the suite; #1 in the world

• 100% spend visibility• Ready made

dashboards for process and spend visibility

• Major differentiator in the market

• 100% end-user adoption• Focus on indirect

procurement • Strong catalogue

management, global marketplace

• Large and rapidly growing customer base

100% IS KEY

100% Capture

100% Adoption

100% Automation

100% Visibility

FALCK ACHIEVING 100% VISIBILITY

100% spend visibility

Chosen for superior auto-matching capabilities

Robust cloud integration platform

SOURCE-TO-PAY ADOPTION TAKES OFF

128% GROWTH IN USAGE(Q4 2017 VS Q4 2016)

IMPORTANCE OF TRANSFORMATIONS

EXAMPLES OF CUSTOMER TRANSFORMATIONS SIGNED IN 2017

Analytics

• Peer Benchmarking• Predictive Analytics• Supplier Quality Analytics

Accounts Payable Leadership

NetworkedProcurement

• Smart Coding with Machine Learning

• Best-fit Matching

• Global Marketplace• Full Mobile Capabilities• Sourcing (RFX, Auctions)

NEW CAPABILITIES INTRODUCED IN 2017

#1 NETWORKED SOURCE-TO-PAY OFFERING

Strong adoption of cloud based Source-to-Pay solution

Large existing customer base is an asset

Basware is innovation leader

LARGEST AND SMARTEST COMMERCE NETWORKMikko PilkamaSVP Network and Financing Services

50

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

WORLD’S LARGEST OPEN NETWORK

OUR COMPETITIVE LANDSCAPE

Value Added Services to Innovate

Open Network

Value Added Services

The Network Effect

Network Relevance

Tungsten

Crossinx

Cegedim

Opentext

Source: Basware

NETWORK VALUE PROPOSITION

Network only: “Global Reach and Connectivity”

SMB

AnyIndustry

Value Added Services

Consolidators: “Add the world’s largest network to your portfolio”

Source-to-Pay led: “100% paperless from day 1”

Select Industry Verticals

GROWTH THROUGH INDUSTRY FOCUS

Man

ufac

turi

ng

Auto

mot

ive

Cons

truc

tion

Hea

lthc

are

Man

ufac

turi

ng

GROWTH THROUGH SUBSCRIPTION PRICING

Front loads revenue

Commitment from the customer

Aligned pricing for Networked Source-to-Pay

Transaction based pricing

Subscription based pricing

Rev

enue

Time

Rev

enue

Time

GROWTH THROUGH INNOVATION

2017 2018

Discountwith Nordea

Vendor DataEnrichment

Cloud ERPswith Network

Game-changing Smart

PDF EmailVault

AR:Accelerate SMB andConsumer Payments

LARGEST AND SMARTEST COMMERCE NETWORK

Largest open network

Actions to boost network growth are underway

Potential in data driven value added services

WINNING IN NORTH AMERICATehseen DahyaExecutive Advisor

WHY WE FOCUS ON NORTH AMERICA

*ePurchasing market including eProcurement, eSourcing, spend analysis, eInvoicing, supplier network. Source: Forrester 2016

NORTH AMERICA 60% OF ePURCHASING MARKET*

North America60%

6%

31%

Nordics

Europe

Australia4%

North America is largest market for Source-to-Pay

Fragmented market

Basware Top 3 position

WHY WE WIN IN NORTH AMERICA

Strongest end-to-end Source-to-Pay solution

Largest supplier network

Ability to accept invoices in all formats

2017 ACHIEVEMENTS IN NORTH AMERICA

27% Organic Cloud growth in 2017

US SINGLE BIGGEST BASWARE SOURCE-

TO-PAY MARKET

of Basware revenue in 201717%

Networked Source-to-Pay positioned as core offering

Enhanced status with Industry Analysts

Expanded visibility and reach in North America

Expanded Customer Success and Customer Support Teams

Performance oriented culture

SELECT NA WINS IN 2017

BASWARE LEADERSHIP TEAM IN NORTH AMERICA

Tehseen Dahya, Executive Advisor

Jerry Ellis, Sales

Amanda Elam, Marketing

Tommy Benston, Customer Success

Eric Wilson, SVP North America, member of Basware Executive Team

FOCUS GOING FORWARD

Expand Verticals and Partnerships

Expand Customer Engagement

Expand Sales and Marketing Reach

WINNING IN NORTH AMERICA

Huge opportunity in the North American market

Basware is winning against local competition

Key actions taken to drive growth

PATH TO SCALABLE GROWTHNiclas RosenlewCFO

66

Cloud growth is our main engine of growth

Supported by strong order intake and low

churn

Growth is scalable

PATH TO SCALABLE GROWTH

CLOUD TRANSFORMATION IS DRIVING GROWTH

Cloud revenues growing

+20% CAGR

Cloud revenues

55% of total and

rising

Strong order intake driving future Cloud

growth

Cloud revenues

sticky with low

churn

CLOUD REVENUE GROWTH PROGRESSION

0

10

20

30

40

50

60

70

80

90

2015 2016 2017

Other Cloud Transaction Services SaaS

Strategic target:>20% CAGR 2017 – 2020*EU

R m

illio

n

*on an organic basis

SHIFT IN BUSINESS MIX SUPPORTS FUTURE GROWTH ACCELERATION

20172014

Cloud

Non-Cloud

Cloud Revenues Now 55% of Total

STRONG SAAS CONTRIBUTION TO CLOUD GROWTH

11,8

23,0

33,2

0,0

5,0

10,0

15,0

20,0

25,0

30,0

35,0

2015 2016 2017

EUR

mill

ion

0

2

4

6

8

10

12

14

2016 2017

P2P SaaS Other Subscriptions

STRONG ORDER INTAKE

EUR

m

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.

71

Strong Growth in Subscription Order Intake

Maintenance SaaS

SAAS GROWTH SUPPORTED BY TRANSFORMATIONS

72

New customers and add-ons

Transformation from Maintenance

Roughly Half of Subscription Order Intake from Maintenance

Customers

Cloud vs Licence

Solution Expansion

Components of Revenue Uplift from Transformation

Resulting in Significant Revenue Uplift per Customer

GeographicalExpansion

STRONG CUSTOMER RETENTION IN SAAS

Low Net ARR Churn 0.2% in 2017

Customer lifetimes 10 to 20 years

Gross ARR Churn 7% in 2017

FROM ORDER INTAKE TO REVENUE GROWTH

EUR

m

Baseline

Order Intake

Components of SaaS growth

Churn

74

NETWORK TRANSACTION GROWTH ACCELERATING

33,3

36,0

40,2

0,0

5,0

10,0

15,0

20,0

25,0

30,0

35,0

40,0

45,0

2015 2016 2017

EUR

m

Industry focus

Shift to subscription pricing

Significant potential in installed base

MANAGING OTHER REVENUES

Maintenance Licence

Consulting Other Cloud

-9%• Managed transition

to Cloud• Revenue uplift

-42%• No more direct

license sales• Minimal EUR effect

-16%• More deals• More standardisation• Less customisation

-20%• Some impact from

UK public sector

Numbers shown are 2016 to 2017 growth rates

SHIFT IN GEOGRAPHICAL MIX SUPPORTS FUTURE GROWTH

2017 Geographical Revenue Split

Rest of World

US

Nordics

Other key markets (UK, Germany, France)

Cloud growth by market (2014 to 2017 CAGR)

91%

39%

US Other Key Markets Nordics Rest of World

13%

7%

Opex declining 2017 vs 2016

SCALABLE BUSINESS MODEL

Cloud revenues growing faster than Cost of Goods Sold

Track record of delivering on productivity

Cost of Goods Sold

+ 20%

+ 1%

2016 to 2017

Cloud Revenue

-5%

Opex

PATH TO PROFITABILITY

2017* Mid Term**Cloud Gross Margin 60% 67-72%Total Gross Margin 50% 55-60%R&D as % of Revenue*** 20% 15-20%S&M as % of Revenue*** 25% 25-30%G&A as % of Revenue*** 10% 8-10%EBITDA Margin**** 2% 12-15%Operating Margin -6% 5-8%

* Unaudited. Subject to change. Final version will be disclosed in Q1 2018 report** 2020*** Including depreciation and amortisation**** Excluding adjustments to EBITDA

80

Cloud growth is our main engine of growth

Supported by strong order intake and low

churn

Growth is scalable

PATH TO SCALABLE GROWTH

CONCLUDING REMARKS

Vesa TykkyläinenCEO

WHY BASWARE

HUGE MARKET OPPORTUNITY

THE MARKET LEADER

GROWTH IS JUST GETTING STARTED