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2016-10-19

Basware: 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 26thSeptember, 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 atwww.basware.com/investors.

Follow Basware on Twitter: @Basware, join the discussion on theBasware
LinkedIn,Basware FacebookandBasware Blogand subscribe for the latest news.

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This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Basware via Globenewswire

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