June 2010

Meet Basware

Basware in Brief• The global leader in purchase-to-pay

automation

• Develops software for procurement and financial process automation

• More than 1,000,000 software users in over 1,500 large organizations

• Services through a network of more than ten own offices in Europe, Asia and the US

• Business partners in over 30 countries

• Founded in 1985, publicly listed

• Net sales EUR 93 million in 2009

• 808 employees at end of Q1 2010

Business environment trends

Technology• Next generation web

applications• From fixed processes to

business rules driven automation

• Cloud computing

Legislation• Strengthening of corporate

governance requirements• EU level e-business

acceleration

Economy• Market turn is around the

corner• Savings on the agenda

of enterprises

Customers• CIO role changing from IT to business

support• Purchase-to-pay and savings driving

the RFP’s• Changing software deployment models• Supplier-buyer networks high in “hype”• From in-house scanning to outsourced

Competitors & market• Mix of market maturity

• Growing market driven by specialists. Replacement investments in procurement

starting (10 years life cycle)• Consolidation of vendors, large ERP

players entering the market, acquisitions

Basware supporting the customer journey

How much have we purchased and from whom?How much have we purchased and from whom?

How is it purchased? How is it purchased?

Are we buying against valid contracts ? Are we buying against valid contracts ?

Year 1Year 1 Year 2Year 2 Year 3Year 3 Year 4Year 4

Where are we spending money?Where are we spending money?

Can we automate tendering?Can we automate tendering?

Year 5Year 5

Increased efficiency with >90% automated invoice matching

Increased efficiency with >90% automated invoice matching

Fully electronic financial process – no more paper

with 100% e-invoicing now

Fully electronic financial process – no more paper

with 100% e-invoicing now

Remove manual errors (Automated discrepancy)

Remove manual errors (Automated discrepancy)

Reducing the purchase cost by 3% has the same effect as*

Increase turnover by•52% in trade industry

•60% in food industry or•43% in mechanical engineering

*Dr. Robert Fieten, BME, 2009

Starting point - contract archives /

Excel sheets / paper

Large global consulting company identified annual

savings of $2.5Mthrough PM automation &

reviewing spend

Scan & capture service to enable shift into e-invoicing.

Scan & capture service to enable shift into e-invoicing.

Recommendation to outsource scanning to accelerate einvoicing

What have we purchased? What have we purchased?

Basware Enterprise Purchase to Pay Solutions

Basware Document Archiving

Basware Travel & Expense Management

Basware KPI Tool

Basware Connectivity

Basware Purchase ManagementBasware Purchase Management

Basware RFxManagementBasware RFxManagement

BaswareContract Lifecycle

Management

BaswareContract Lifecycle

Management

BaswareContract Matching

BaswareContract Matching

BaswareOrder Matching

BaswareOrder Matching

BaswareInvoice

Processing

BaswareInvoice

Processing

Basware Procurement Basware Invoice Automation

Basware Financial Management Solutions

Basware Business PlanningBasware Business Planning

Basware AnalyzerBasware AnalyzerBasware

Transparent Reporting

BaswareTransparent

Reporting

BaswareIFRS / Public Sector

Package

BaswareIFRS / Public Sector

Package

Basware Group Consolidation

Basware Group Consolidation

Basware Business Planning Basware Group Consolidation

BaswareCash FlowBasware

Cash Flow

BaswareInvoice Processing

Strong Global Presence

Finland, Russia and Scandinavia • Headquarters in Finland,Scandinavian organization with

subsidiaries in Sweden, Denmark, Norway• Expansion started to Russia.

• Mainly direct operations (excl. Russia)• Whole product range in distribution

• Pilot area for new products• Sustaining growth, high profitability

Europe• Subsidiaries in Germany, the UK,

the Netherlands and France • Southern Europe on mid term

• Focus remaining on direct and indirect• High growth

• Continuing profitability• Multiple channel partners in each market

North America• Ofiices in Stamford, Boston and

Chicago• Direct sales as main revenue

source in the short term• Channel network and co-marketing

efforts with a few business partners• Strong growth with additional focus

areas (Connectivity, Federal market, low-mid size segment)

• Profitability in the short term

Asia Pacific• Subsidiary in Australia, branch in Singapore• Operations in Australia (mainly direct) and

Asia (mainly indirect)• Emerging market

• Profitability in the short term• Competence center expansion in India

Global Alliances

North America as the strategic market

Germany and UK on strategic

position

APAC business emerging in

Australia and R&D in India.

Middle East, India, China and Japan on radar screen

International Operations & Reseller Channel• International operations’ share of net sales 54% in Q1 2010

• Resellers share of product sales 10 percent in 2009

Basware Technology Partners

• Basware has been partnering with SAP since 2001 • Basware Enterprise Purchase to Pay solutions can easily be integrated with

different SAP ERP systems

• Basware is a Microsoft's highest level Gold Certified Partner • Product development moving to MS .NET architecture

• Basware is an Oracle Certified Partner• Basware Enterprise Purchase to Pay solutions integrate seamlessly with all

Oracle ERP systems

• Basware Invoice Automation solutions integrate seamlessly with Content Management Platform of EMC/Documentum

• Basware partners with Kofax and resells the Kofax Capture for Basware capture solution enabling line item recognition

• Basware is a Technology Partner in the Citrix Global Alliance Partner Program. Cooperation with Citrix enables Basware to deliver its leading Enterprise Purchase to Pay solution to a leading desktop and application virtualization platform

• Basware partners with Transcepta, a provider of on-demand electronic invoicing and Electronic Invoice Presentment and Payment (EIPP) solutions for businesses of all sizes.

Basware has more than 1,500 large customers

www.basware.com

Thank you!