BasWare - Company Announcement

Basware revises its organic revenue guidance for 2016

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

Basware revises its organic revenue guidance for 2016

Basware is updating its 2016 guidance:

Basware's transition to a cloud company has progressed at a fast pace. Our SaaS
revenues have been growing very strongly both organically and in total, and are
expected to continue to do so. However, although our organic SaaS growth has
been faster than indicated in our strategy, it has not yet fully offset the
faster than expected decline in revenues from license sales and maintenance. The
transition to SaaS has also impacted our consulting revenues which have been
more negative than expected in 2016.

Transaction volumes in our network have grown at a reasonable rate in 2016,
however transaction revenues have been impacted by the decline of start-up fees.
Overall the growth in transaction revenues has not yet been sufficient to offset
the drags on our business caused by the SaaS transformation and decline of
consulting revenues.

Basware has faced headwinds in its key markets in 2016. In the UK, uncertainty
caused by the EU referendum has led to delays in decision making by both public
and private sector customers. In Germany, the ramp up of the sales force has
been held back by the competitive job market which has made it difficult to
attract high quality hires within the desired timeframe.

2016 Full year:

Basware's organic revenue growth at constant currencies in 2016 was expected to
be 5 percent or more. The company now expects its growth trajectory to be
delayed because of the revenue mix effects outlined above. As a result, organic
growth at constant currencies is expected to be flat for 2016.

Revenues from SaaS and Basware's network are expected to continue to grow for
the rest of 2016.

Adjusted EBITDA for 2016 is expected to be around breakeven, in line with
original guidance.

The growth related operating investments are expected to amount to approximately
20 million euros in 2016 including Verian.

Comments from Vesa Tykkyläinen, CEO of Basware:

"The revision to our 2016 guidance is being driven by the business
transformation that Basware continues to undergo, which is in line with our
strategy. Basware's cloud revenues have been growing well in 2016 and will
continue to grow. In the long run it is this which will deliver value to our
shareholders."

"Basware has a great strategy and we are a leader in an industry with
significant market growth potential. It is now down to execution on our part to
capture that potential. I want Basware to be an efficient, best in class cloud
services company. I have today separately announced a number of actions to
better execute our strategy and to ensure that Basware continues to strengthen
its position as the leader in networked purchase to pay solutions including e-
invoicing and financing services."

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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