BasWare - Company Announcement

Refinements to Basware's strategy targets and focus on execution

Basware Corporation, stock exchange release, October 19, 2016 at 08:40

Refinements to Basware's strategy targets and focus on execution

Basware is the global leader in providing networked purchase-to-pay solutions,
including e-invoicing and financing services. Basware has passed a tipping point
in its transition from a license-dominated software company to a cloud-based
services provider. Cloud revenue growth is Basware's primary objective and
Basware will continue to strengthen its leading market position in order to grow
cloud revenue.

Basware announced on February 2, 2016 its strategy for 2016 to 2018. We are
today announcing refinements to our strategy targets and additional actions to
improve execution and boost future growth.

Clarification of priorities and vision

Basware's vision of the significant growth potential in the markets it operates
in and Basware's ability to capture that opportunity is unchanged.

Vesa Tykkyläinen was appointed as CEO of Basware on 26(th) September, 2016.
Since taking on the role of CEO, in conjunction with the Basware executive team
and Board, he has undertaken a review of Basware's business and has concluded
that more focus and simplicity are needed in order to better execute the
strategy.

Cloud revenue growth is Basware's primary objective and where long term value in
our business will be created. Cloud revenues are comprised of revenues from
SaaS, other subscriptions, network transactions and financing services.

Enabling execution of Basware's strategy

Since announcing its strategy in February, Basware has invested in operating
investments to accelerate growth. This has included a 25 percent increase in
sales and marketing headcount. The positive effects of these investments will
take time to be visible in increased net sales.

As part of the review of the business conducted since Vesa Tykkyläinen became
CEO, an additional set of actions to boost future growth, simplify our
operations and improve our productivity have been identified. These actions will
mainly be targeted at:
  * Continuing to strengthen sales and marketing to drive cloud revenue growth
  * Focusing on Customer Success by further improving customer satisfaction and
    experience
  * Continuing to grow and monetize the network and data assets with financing
    and other value added services, focusing on product development and
    partnerships
  * Increasing productivity by simplifying our operations and increasing
    scalability
  * Evolving our culture and way of working to focus more on performance

As before, organic growth is the key focus and this will be supported by a
disciplined acquisition strategy.

Refinements to strategy targets

The CEO review of Basware's business concluded that the long term opportunity
remains intact. However there will be a timing shift in achieving the original
targets outlined in February 2016. Basware is therefore moving the horizon for
its strategy period from 2018 to 2020.

Simplifying Basware's operations begins with rationalizing its targets. For the
period from 2017 to 2020, Basware will focus on three key metrics aimed at
boosting cloud revenues:
  * Cloud revenues to increase by more than 20% CAGR on an organic basis
  * Annual net sales greater than EUR 220 million
  * Recurring revenue approximately 80% of net sales

At the same time Basware will continue to improve underlying profitability
(excluding growth related investments) over the period.

Financing services and similar value added services based on Basware's
significant network data asset continue being a core part of Basware's growth
strategy. As the market is nascent and exact revenues difficult to forecast, a
specific financing services revenue forecast is not included in the revised
strategy goals.

These refined strategy targets provide clarity of mission and focus Basware on
the areas of our business where most value will be created for the company and
its shareholders.

With these actions, Basware looks forward to further strengthening its global
leadership position in networked purchase-to-pay and to driving cloud revenue
growth.

Vesa Tykkyläinen, CEO, Basware Corporation

For more information, please contact:

Investor enquiries:
Ben Selby, Head of Investor Relations, Basware Corporation
Tel. +358 50 305 8077, ben.selby@basware.com

Media enquiries:
Sirje Ahvenlampi-Hyvönen, Communications Director, Basware Corporation
Tel. +358 50 557 3822, sirje.ahvenlampi@basware.com

Distribution:
Nasdaq Helsinki
Key media
www.basware.com/investors

About Basware:
Basware (Nasdaq: BAS1V) is the global leader in providing networked purchase-to-
pay solutions, e-invoicing and innovative financing services. Basware's commerce
and financing network connects businesses in over 100 countries and territories
around the globe. As the largest open business network in the world, Basware
provides scale and reach for organizations of all sizes, enabling them to grow
their business and unlock value across their operations by simplifying and
streamlining financial processes. Small and large companies around the world
achieve significant cost savings, more flexible payment terms, greater
efficiencies and closer relationships with their suppliers. Find out more at
www.basware.com/investors.

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