B A S W A R ERoadshow presentation

June 2020

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IMPORTANT NOTICEThe following information contains, or may be deemed to contain, forward-looking statements. These statements relate tofuture events or future financial performance, including, but not limited to, expectations regarding market growth anddevelopment as well growth and profitability of Basware. In some cases, such forward-looking statements can be identifiedby terminology such as “expect”, “plan”, “anticipate”, “intend”, “believe”, “estimate”, “predict”, “potential”, or “continue”, or thenegative of those terms or other comparable terminology. By their nature, forward-looking statements involve risks anduncertainties because they relate to events and depend on circumstances that may or may not occur in the future. Futureresults 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 anapplicable law or regulation.

Nothing in this presentation constitutes investment advice and this presentation shall not constitute an offer to sell or thesolicitation of an offer to buy any securities of Basware or otherwise to engage in any investment activity.

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EUR 148 million revenue in 2019

~1,325 employees in 14 countries

Customers in 100+ countries

73% revenue

comes from cloud

B A S W A R E I N B R I E F

EUR 800 billion managed spend in 2019

We help our customers simplify operations and spend smarter by automating their procurement and finance processes

We are the global leader with largest e-invoicing network in the world

#1 in accounts payable automation and #1-3 in procurement

38%

23% 33%

5%

Revenue by area (Q1/2020)

Americas

Nordics

Europe

APAC

%

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S I M P L I F Y O P E R A T I O N S , S P E N DS M A R T E R

Receive

Source

Order

Shop

Invoice

Match

Analyze

Pay

1) Total economic impact of Basware’s Purchase-to-Pay Cloud Solution, Forrester 2017

From inefficient invoice process → to AP automation

From uncontrolled spend

→ to spend under management

From lack of cashflow visibility

→ to optimize spendwith analytics

307% return on investment and a payback time of 12 months1)

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I N V E S T M E N T H I G H L I G H T S

Large addressable market

Market leader with unique offering

Profitable cloud growth

• EUR 15 billion market potential

• Leader in networked purchase-to-pay• Largest e-invoicing network and innovator

in analytics

• Actions on-going to improve profitability while retaining cloud growth

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R E C O G N I Z E D M A R K E T L E A D E R

Leader with strong market understanding, innovation and product roadmap, and customer experience

“well suited to multinational organizations moving to digital procurement and looking to automate invoice processing”

MAGIC QUADRANT FOR PROCURE TO PAY SUITES 2019

“a leading choice for CPOs and CFOs who aim at achieving 90% or more process automation across their P2P spend”

5/5 in Product strategy | 5/5 in Globalization | 4.2/5 in Invoice Processing

FORRESTER WAVE: ePROCUREMENT PLATFORMS, Q4 2019

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C O M P E T I T I V E D I F F E R E N T I A T O R SPROCUREMENTE-INVOICING NETWORK

& AP AUTOMATION

- 100% invoice capture

- 100% spend visibility

- 100% end-user adoption

ANALYTICS

LARGEST & MOST GLOBAL E-INVOICING NETWORK €800BN SPEND – 150M+ INVOICES

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B A S W A R E C H O S E N B Y C U S T O M E R S A C R O S S T H E W O R L D

Geographies where Basware supports customers

Automotive

Manufacturing

Healthcare / Pharma

Telco / Media

Energy / Utility

Food / Beverage

Services

Industrials

Transport

Retail

Finance / Professional

Public Sector1.5m+ organisations connected to network

EUR 800 billion spend managed in 2019

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T H E J O U R N E Y T O C L O U D

TRANSFORMATION CONSOLIDATION OPTIMIZATION

Client transformations

Subscription pricing

All new business is cloud

Making it happen – cloud growth

Mature processesConsolidate systemsAchieve step change in cost baseDrive efficiency Cloud growth and profitability

Adaptive optimization

Drive efficiency and margins

Strategic investments

Cloud growth & margins

Push to cloud Grow profitably Finetune

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F R O M T R A N S I T I O N T O P R O F I T A B L E G R O W T H

Simplification and profitable growth

Consolidation of R&D sites

Transition to AWS

initiated

Sale of non-strategic

businesses in 2018

Functional organization

Cloud focused strategy in

2016

Scanning services

outsourced

Productivity programmeLaunched in

Q1/19

Cloud revenues

reach 2/3 of total

Consolidation ofproduct portfolio

Push to Cloud

Robust business

development in H2/19

Q1/20 Cloud revenue +14% YoY

EBIT 0.1M€

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C O N T I N U E D C L O U D R E V E N U E G R O W T H

▪ Cloud revenue growth +14% in Q1/20*

▪ Cloud 73% of total revenue

▪ Maintenance, license and other revenue declines in line with expectations as Basware transitions customers to cloud

EUR million1)

*On an organic basis at constant currencies

1)Q1/2017-Q2/2018 revenue has been adjusted for disposals and is indicative only.

0

5

10

15

20

25

30

Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Q2/18 Q3/18 Q4/18 Q1/19 Q2/19 Q3/19 Q4/19 Q1/20

Cloud revenue Consulting Maintenance, license and other revenue

*Organic constant currency basis

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S T R O N G C L O U D M E T R I C S

Cloud Non-Cloud

73%

95% 104% 67% 7XGross renewal rate in 2019

Net renewal rate in 2019

Cloud gross margin in Q1/2020

LTV / CAC ratio in 2019

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EBIT

Basware’s cost base is scalable and has variable cost components that can be reduced to a certain extent to maintain profitability. EBIT for 2020 is expected to be positive.

On April 21st Basware updated its 2020 guidance to reflect the estimated impact of the Covid-19 pandemic.

O U T L O O K F O R 2 0 2 0

Net Sales

Net Sales guidance will be given when it is possible to estimate the COVID-19 pandemic effects more precisely.

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S T R A T E G Y 2 0 2 0 - 2 0 2 2

#1 Happy Customers

MUST-WIN BATTLES LONG TERM

#2 Delivery Capabilites

#3 Procurement

#4 Sell with Advisory Partners

#5 Transformations; now and after

Realize growth potential

Enable Visible Commerce

Scalable growth and profitability

Increase operational efficiency in strategic business

Simplify operations, clean up legacy

GUIDING PRINCIPLES

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G L O B A L C R I S I S B R I N G I N G V I S I B L E C O M M E R C E T O F O C U S

Supplier management

Monitoring cash flow

Basware solutions digitalize and automate customers Purchase-to-Pay processes which enables work from home.

100% visibility and a holistic view to suppliers are key when mitigating against supply shortages, labour irregularities and slow-downs in logistics.

With Basware Analytics companies can analyse spend and plan ahead, prioritize critical suppliers and avoid late payments.

100% digital processes

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M A R K E T G R O W T H D R I V E N B Y G L O B A L M E G A T R E N D S

EUR 148 million Basware 2019 revenues

EUR ~5 billionCurrent market

EUR 15 billionMarket potential

DIGITALIZATION & AUTOMATION

RAPID TECHNOLOGICAL DEVELOPMENT

SUSTAINABILITY

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W H Y I N V E S T I N B A S W A R E ?

Market leader with unique offering

Profitable cloud growth

Large addressable market

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A P P E N D I X

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B A S W A R E H U B F O R V I S I B L E C O M M E R C E

Basware AP Automation

Basware PurchaseBasware Vendor Manager

Open philosophy: Pluggable specialist solutions and 3rd party coexistence

Network

Open Network: partnerships / expansion

Data & Analytics

APIs

+200 interops B2G networks Regional partners

APIs

3rd party procurement

Sourcing

Spend Analytics

Vendor RiskManagement

CLMContingentWorkforce

Management

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M I N I M I Z E E R R O R S , W H I L E S P E E D I N G U P T H E P R O C E S S

*Source: Ardent Partners report, 2018

3.1 days

BES

T IN

CLA

SS

Supplier creates and sends invoices electronically

Automatic content validation & format conversion

Invoices automatically arrive in customer AP/ERP

10.6 days*

MAN

UAL

Customer receives invoices

in mailroom

Customer scans

invoices

Customer validates invoices

Customer enters the data into a

system

Suppliers create

invoices

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C L O U D O R D E R I N T A K E G R O W T H

▪ Reported as annual recurring revenue (ARR) gross order intake

▪ Share of cloud order intake from new customers increasing

▪ Key markets: US, UK, Germany and France

EUR

mill

ion

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KEY FIGURESEUR thousand Q1/2020 Q1/2019 Change,% 2019 2018 Change, %

Net sales 38,245 35,895 6.5 148,302 141,417 4.9

Cloud 27,774 24,282 14.4 101,442 89,482 13.4

Consulting 6,496 5,441 19.4 24,962 23,567 5.9

Maintenance, license and other 3,975 6,172 -35.6 21,889 28,368 -22.8

Cost of sales -17,473 -18,147 -3.7 -71,493 -69,620 2.7

Gross profit 20,772 17,748 17.0 76,810 71,797 7.0

S&M -10,767 -11,375 -5.3 -45,190 -43,041 5.0

R&D -6,176 -7,404 -16.6 26,815 -27,222 -1.5

G&A -3,575 -4,607 -22.4 -14,572 -16,247 -10.3

Total operating expenses -20,518 -23,386 -12.3 -86,577 -86,510 0.1

Other operating income and expenses

-153 -2,142 -92.8 -4,770 13,242

Operating profit (EBIT) 100 -7,780 -14,537 -1,471

Adjustments -59 1,960 3,781 -13,581

Depreciation and amortization 3,970 4,121 -15,941 10,688 49.2

Adjusted EBITDA 4,011 -1,699 5,185 -4,364

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SHAREHOLDER BREAKDOWN

SHAREHOLDER DISTRIBUTION AS OF APRIL 30, 2020

1 Based on Euroclear Finland shareholder register as of April 30, 20202 Based on their latest flagging notification

TOP 20 SHAREHOLDERS1 Shares, pcs % of total

1 Arrowgrass Capital Partners2 3,600,698 25.02 Sihvo Ilkka 887,300 6.23 Long Path Partners LP2 760,971 5.34 Briarwood Chase Management2 720,347 5.05 Vaajoensuu Hannu 567,857 3.946 Fjärde Ap Fonden 469,873 3.26

7Ilmarinen Mutual Pension Insurance Company 420,830 2.92

8 Perttunen, Sakari 384,375 2.679 Veritas Pension Insurance Company Ltd. 352,345 2.45

10 Danske funds 270,000 1.8711 The State Pension Fund 256,000 1.7812 Pöllänen Antti 192,127 1.3313 Perttunen, Meimi 145,107 1.01

14Sijoitusrahasto Taaleritehdas Mikro Markka 90,000 0.62

15 Vaajoensuu, Matias 83,800 0.5816 Vaajoensuu Petra 83,800 0.5817 Vaajoensuu Sara 83,700 0.5818 OP-Finland Small Firms Fund 79,605 0.5519 Kaloniemi Markku 77,000 0.5320 Koripalloilun Tukisäätiö Sr 45,000 0.31

Total top 20 9,570,735 66.5 %Total number of shares 14,401,936 100 %

Executive team & Board

6 %

International Institutional

Investors52 %

Other Founders

15 %

Finnish Institutional

Investors 15 %

Households8 %

Other4 %

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F R E E C A S H F L O W M E T R I C

-7,816

-9,794

-1,445

-4,774

-3,579

Q1/2019 Q2/2019 Q3/2019 Q4/2019 Q1/2020 EUR thousand 1-3/

20201-3/2019

EBITDA 4,070 -3,660

Capitalizations -3,111 -2,993

Finance expenses -3,021 -650

Taxes, excl. deferred taxes -628 -95

Share based compensation, share part

-1,174 -953

Gain/loss on sale of assets 285 534

Free cash flow metric -3,579 -7,816

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EUR thousand 1-3/

20201-3/2019

Cash flows from operating activities 6,497 1,626

Net change in cash and cash equivalents 1,250 -5,879

Cash and cash equivalents 32,558 35,117

Gross financial debt 62,264 53,669

Net financial debt 29,706 18,522

C A S H F L O W A N D B A L A N C E S H E E T

▪ Improvement in operating cash flows driven by higher profitability

▪ Heightened efforts on receivables collection

▪ Increase in gross and net financial debt mainly driven byPIK interest and principalaccrual