Basware Corporation stock exchange release, September 4, 2012 at 13:00
Basware's strategy update 2013-2015 aims for accelerated global growth
Basware's Board of Directors and management have updated the company's strategy
and objectives for the next three years. The updated strategy for 2013-2015
focuses on accelerated global growth both organically and through acquisitions,
which facilitates positive development of operating profit margin.
By the end of 2015, Basware aims to become the largest business commerce network
for buyers and suppliers. Basware's objective is to reach 150 million
transactions in 2015, compared with 21 million transactions in 2011.
Basware's long-term objectives for net sales and operating profit remain
unchanged. The long-term objective is to grow 15-30 percent in net sales
annually boosted by over 50 percent growth in Automation Services. The company's
long-term objective for operating profit margin is 15-20 percent of net sales,
improving towards the end of the period. The share of recurring revenue is aimed
to grow to 70 percent of net sales, with Software as a Service (SaaS) and
electronic invoicing contributing most to the growth, thus improving the
profitability.
Today, Basware is the global market leader in Purchase to Pay (P2P) solutions
with close to 2,000 software and SaaS customers in Invoice Automation and
Procurement and approximately 800,000 active organizations transacting through
the Basware supplier and buyer network for invoices and purchase messages.
Basware's focus markets - the P2P software and e-invoicing markets - are
expected to grow substantially over the next few years, especially in the
geographical areas where Basware is already well-positioned.
Basware's business is based on automating procurement and accounts payable and
receivable processes within and between organizations. Basware offers all
products and services through a global cloud. The services are hosted in a few
key locations, which meet the highest service level requirements of private and
public organizations.
Basware is the global product category leader in P2P. The company's product and
services strategy is geared around category leadership. Basware Alusta, launched
in early 2012, is a cloud-based flexible platform for P2P technology that is
built on open standards and designed to bring together Basware's Business-to-
Business process knowledge with its cloud services. It is optimized to ensure
easy connectivity with the Open Network to companies of all sizes. Basware
Alusta is strongly offered as a service and supports Basware's strategic
transformation to a services company. The company will focus on transitioning
the current customers to Basware Alusta. Contributing to the growth of cloud
service business in the future, value added services such as Supply Chain
Financing and Dynamic Discounting will offer new revenue streams.
Basware will intensify its go-to-market activities in order to reach higher
growth by segmenting customers by size and by buyers' and suppliers'
organizations. Special attention will be placed on small and medium-sized
organizations. Company's go-to-market activities are expanded with channel and
online sales on top of direct sales. Basware is looking for partners that are
providing outsourcing services for financial processes for global organizations.
The company is looking for service providers and accounting firms as partners
for small and medium-sized organizations. Such partners act as Virtual Operators
or Sales Agents. Additionally, the company will support organic growth through
acquisitions.
Basware's offering and solutions and services are available globally. The
company aims to increase its global presence by increasing its service
provisioning and delivery activities for supplier customers while putting
additional emphasis on sales on selected key markets for getting a higher share
in P2P software and services business. These markets offer significant upside
potential for the company in terms of market share and transaction volume,
organically and in the form of potential acquisitions.
In the strategy period, Basware aims to significantly increase the number of new
customers for its products and services. Basware will support new customer
acquisition by centralizing and automating the marketing lead generation
process, thus creating an increasing number of actionable leads for sales
operations.
Realizing the strategy will improve the profitability of the company in several
ways over the strategy period. The benefits of the new strategic profitability
drivers are partially offset by investments required for the growth.
* SaaS and electronic invoicing offer the benefits of a scalable business
model where technical platforms can take up new customers without having to
invest into infrastructure in the same proportion that the revenue grows.
* Partner and online channel will contribute positively to the profitability
in the long run. Strong investments in Basware's online channel will be
carried out during the strategy period.
* Delivering standardized products and services enables optimum resource
utilization and scalable processes across the company.
* Basware will continue expanding the use of lower cost base sourcing of
resources in its operations globally for the needs of the growing business.
In addition to the current R&D and transaction services production, use of
offshoring will continue in customer support, project delivery and internal
support functions.
More information:
Esa Tihilä, CEO, Basware Corporation
Tel. +358 40 480 7098
Distribution:
NASDAQ OMX Helsinki Ltd
Key media
www.basware.com
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