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Basware Oyj — Earnings Release 2012
Jan 24, 2013
3257_rns_2013-01-24_889fdabd-50f6-44d8-8fb3-7e9e4cdf97df.pdf
Earnings Release
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basware
Financial statement release
January 24, 2013
BASWARE FINANCIAL STATEMENT RELEASE JANUARY 1 – DECEMBER 31, 2012 (IFRS)
Basware Corporation's fourth quarter and full year 2012
SUMMARY (last year's corresponding period in parentheses, unless otherwise stated)
Financial year 2012: From software company to service company – Automation Services business exceeded license sales
- Net sales EUR 113 699 thousand (EUR 107 750 thousand) – growth 5.5 percent
- Operating profit EUR 8 308 thousand (EUR 12 280 thousand) – decrease of 32.3 percent
- Operating profit 7.3 percent of net sales (11.4%)
- Growth of Automation Services (SaaS and e-Invoicing) 44.1%
- Recurring revenue (Maintenance and Automation Services) 55.8 percent (48.9%) of net sales
- Net cash flows from operating activities EUR 6 441 thousand (EUR 15 207 thousand).
- Earnings per share (diluted) EUR 0.46 (EUR 0.76) – decrease of 40.1 percent
October–December 2012: Transition to services strengthened further during the fourth quarter
- Net sales EUR 30 427 thousand (EUR 30 227 thousand) – growth 0.7 percent
- Operating profit EUR 2 927 thousand (EUR 3 454 thousand) – decrease of 15.3 percent
- Operating profit 9.6 percent of net sales (11.4%)
- Growth of Automation Services (SaaS and e-Invoicing) 38.1%
- The estimated revenue to be recognized for current Automation Services agreements that are in production as well as for new, signed agreements in the next twelve months increased to an estimated EUR 27.8 million, growth of 10.3 percent compared to the previous quarter
- Recurring revenue (Maintenance and Automation Services) 54.9 percent (46.9%) of net sales
- Earnings per share (diluted) EUR 0.15 (EUR 0.23) – decrease of 33.7 percent
Basware expects its net sales for 2013 to grow by more than 15% and operating profit (EBIT) to grow compared to the previous year. The operating profit includes estimated one-off restructuring costs of approximately EUR 2.3 million related to an acquisition that was completed in January.
The operating profit (EBIT) for the first quarter of 2013 is expected to be negative due to one-off restructuring costs.
This financial statement release has been prepared in accordance with IAS 34, Interim Financial Reporting.
The amounts presented in the summary of financial statements and notes to the financial statements are based on the company's audited financial statements. The Auditor's Report was issued on January 23, 2013.
Basware Corporation | Linnoitustie 2, Cello, P.O. Box 97, FI-02601 Espoo, Finland | Tel. +358 9 879 171 | Fax +358 9 8791 7297 | www.basware.com
basware
Financial statement release
January 24, 2013
GROUP KEY FIGURES
| EUR thousand | 10–12/2012 | 10–12/2011 | Change, % | 1–12/2012 | 1–12/2011 | Change, % |
|---|---|---|---|---|---|---|
| Net sales | 30 427 | 30 227 | 0.7% | 113 699 | 107 750 | 5.5% |
| EBITDA | 4 750 | 4 671 | 1.7% | 14 801 | 17 284 | -14.4% |
| Operating profit before IFRS3 amortization | 3 460 | 3 958 | -12.6% | 10 555 | 14 290 | -26.1% |
| Operating profit | 2 927 | 3 454 | -15.3% | 8 308 | 12 280 | -32.3% |
| % of net sales | 9.6% | 11.4% | 7.3% | 11.4% | ||
| Profit before tax | 2 843 | 3 473 | -18.1% | 8 357 | 12 332 | -32.2% |
| Profit for the period | 1 945 | 2 940 | -33.8% | 5 863 | 9 671 | -39.4% |
| Return on equity, % | 7.8% | 12.0% | 5.8% | 11.6% | ||
| Return on investment, % | 11.3% | 14.9% | 8.2% | 14.9% | ||
| Liquid assets *) | 34 519 | 42 977 | -19.7% | 34 519 | 42 977 | -19.7% |
| Gearing, % | -23.8% | -42.3% | -23.8% | -42.3% | ||
| Equity ratio, % | 77.6% | 81.9% | 77.6% | 81.9% | ||
| Earnings per share, EUR | 0.15 | 0.23 | -33.7% | 0.46 | 0.76 | -40.1% |
| Earnings per share (diluted), EUR | 0.15 | 0.23 | -33.7% | 0.46 | 0.76 | -40.1% |
| Parent company's shareholders' equity per share, EUR | 7.84 | 7.76 | 1.0% | 7.84 | 7.76 | 1.0% |
*) Includes cash and cash equivalents
Reporting
Basware Corporation reports one operating segment: Purchase to Pay, P2P.
Basware reports income for products and services as follows: License sales, Professional Services, Maintenance, and Automation Services. License sales consist of Purchase to Pay product family together with payment, financial planning and reporting solutions sold only in Finland. Automation Services include e-Invoicing, scanning services, printing services, catalogue management, purchase message exchange, activation services and Software as a Service (SaaS) services.
Basware also reports the estimated revenue to be recognized for current Automation Services agreements that are in production as well as for new, signed agreements in the next twelve months. Automation Services agreements typically expand several years or are valid until further notice.
As geographic information Basware reports geographical areas Finland, Scandinavia, rest of Europe and Other. Net sales are split by the customer's location. Net sales and operating profit are also reported by the location of the assets. In annual financial statements, the geographical information of non-current assets is reported by the location of the assets.
CEO Esa Tihilä:
"Net sales for Q4 amounted to EUR 30 427 thousand and operating profit to EUR 2 927 thousand. An increasing share of secured deals were made as Software as a Service (SaaS) solutions, which had an effect on the development of net sales for the quarter. 16 new SaaS-based Purchase-to Pay (P2P) agreements were concluded during the last quarter, compared to 2 agreements during the comparative
Basware Corporation | Linnoitustie 2, Cello, P.O. Box 97, FI-02601 Espoo, Finland | Tel. +358 9 879 171 | Fax +358 9 8791 7297 | www.basware.com
basware
Financial statement release
January 24, 2013
3 (28)
period. At the same time, 21 new license-based P2P agreements were concluded during the quarter, compared to 31 agreements during the comparative period. The share of recurring revenue (Maintenance and Automation Services) of net sales developed favorably, totaling 54.9% of net sales. Increasing transaction volumes are essential to the continuous development of Automation Services. The transaction volume increased by 53.2% compared to the corresponding quarter the previous year, with the volume totaling 9.5 million transactions.
Full-year net sales for 2012 increased by 5.5% during the reporting period and amounted to EUR 113 699 thousand. The decrease in license sales is partly attributable to the significant migration to SaaS services. 40 new SaaS-based P2P agreements were concluded in 2012, compared to only 4 agreements during the previous year. At the same time, 78 new license-based P2P agreements were concluded in 2012, compared to 92 agreements during the comparative period. The Automation Services business grew by 44.1% during the year as a whole. We have also connected an increasing number of suppliers and buyers to our open network with new products and delivery methods during the year. The financial period's transaction volume was 34 million, up 63.5%.
Full-year operating profit was EUR 8 308 thousand, or 7.3% of net sales. Recurring revenue (Maintenance and Automation Services) accounted for an increasing share of net sales during each quarter, accounting for 55.8% of net sales during the financial period as a whole. The increasing share of recurring revenue of net sales improves predictability over the long term. The planned investments required for the company's growth and transition process can be seen in the company's full-year financial performance.
During 2012, we proceeded in implementing our growth strategy and transition from a software company to a service company in several concrete ways, in spite of the challenging market conditions. During the year, we have increasingly shifted from license sales-based operations to the service business. We announced two partnership agreements and 28 significant customer agreements, of which 24 included services, during the year. The growth in services was increasingly generated in our international markets in 2012.
Alusta, the unified cloud-based platform for Purchase-to-Pay that was launched at the beginning of the year, was an important milestone in Basware's strategic change and transition to service-oriented business. Alusta has been received well by our customers. The more extensive commercial utilization of Alusta commenced during the second half of the year, when Alusta's full sales and implementation capability was reached.
We have also developed our service centers in Europe and the United States to be able to serve an increasing number of customers with the same infrastructure. In addition, the customer service models of our current customers have been developed and the service offering has been expanded. Our number of personnel has increased through both acquisitions and recruitment as we have been investing in the development of competence in service production and delivery, sales, and marketing. Approximately one-half of the increase in fixed costs in 2012 is attributable to supporting and building our transition process.
In September, we published our updated strategy until 2015, emphasizing our objective of accelerated global growth. According to the updated strategy, our key objectives include accelerated growth in the transaction volume, strengthening our market position in selected key markets, more accurate segmenting of our services and products to companies of all sizes, with particular attention on small and medium-sized enterprises, developing customer loyalty, and improving the company's profitability.
Basware acquired the leading German e-invoice operator First Businesspost GmbH in the beginning of 2012 and announced the acquisition of the network and e-invoice business of Certipost, part of the
Basware Corporation | Linnoitustie 2, Cello, P.O. Box 97, FI-02601 Espoo, Finland | Tel. +358 9 879 171 | Fax +358 9 8791 7297 | www.basware.com
basware
Financial statement release
4 (28)
January 24, 2013
Belgian bpost group, in the end of 2012. The acquisition of Certipost's network and e-Invoicing business was closed on January 2, 2013. Following the acquisitions, Basware is the market leader in Germany and Benelux market in addition to the Nordic countries. The company intends to continue to support organic growth in our key markets through acquisitions.
We expect that the company's transition process will reach a point where the investments begin to pay themselves back during 2013. We also expect that the need for continuous services will remain good in our customer base regardless of economic cycles and the challenging economic situation. The development of profitability is particularly based on the adoption of a scalable sales and delivery model and launching a global efficient service production network at full steam. The growing and developing e-invoice market offers excellent growth opportunities for Basware, which is already the industry-leading independent player worldwide.
I would like to extend my thanks to Basware's shareholders and customers for their trust and our top-class experts for their committed work during the year."
Market outlook and operating environment
According to independent research institutions' most recent market estimates the software market is expected to grow by 6.4 percent globally in 2013 (2012: 6.2%). The entire IT services market is expected to grow by 5.2 percent globally (2012: 4.7%).
The number of acquisitions and partnerships has increased in the market. Companies active in the market are trying to strengthen their supplier networks and expand geographically. Consolidation is expected to continue in the business environment, with the role of services growing in companies' portfolios. Basware continues active analyzing of acquisition targets especially in European e-Invoicing market according to its strategy.
The launch of Basware's next generation Alusta software suite during the first quarter of 2012 has improved the competitiveness of Basware software and services further. Through the acquisition of German e-Invoicing operator in January 2012 we gained innovative technology, which will improve the competitiveness of the company. Automation Services will have a positive impact on the competitiveness, improving the predictability and transparency of the company's net sales and profitability in the long term.
By the end of 2015, Basware aims to become the largest business commerce network for buyers and suppliers. E-Invoicing and the supporting services are targeted to connect suppliers and buyers also outside of Basware's existing software customer base, leading to a higher potential. The penetration rate of e-Invoicing is low, between 5-30 percent depending on the country, which creates a solid foundation for the future growth of Basware Automation Services.
Offshoring operations hold a significant role in the company's strategy. R&D and Automation Services operations at Basware's Indian office have already succeeded in gaining a significant role. The company has developed its offshoring operations in order to improve profitability also with regard to new service business operations and internal support functions.
Basware Corporation | Linnoitustie 2, Cello, P.O. Box 97, FI-02601 Espoo, Finland | Tel. +358 9 879 171 | Fax +358 9 8791 7297 | www.basware.com
basware
Financial statement release
January 24, 2013
5 (28)
FOURTH QUARTER
NET SALES OCTOBER 1 – DECEMBER 31, 2012
Net sales for the fourth quarter increased by 0.7 percent to EUR 30 427 thousand (EUR 30 227 thousand). In local currency terms, net sales decreased by 1.5 percent.
Information on products and services:
| Net sales (EUR thousand) | 10–12/2012 | 10–12/2011 | Change, % | 1–12/2012 | 1–12/2011 | Change, % |
|---|---|---|---|---|---|---|
| License Sales | 5 179 | 6 806 | -23.9 | 17 437 | 20 874 | -16.5 |
| Maintenance | 10 052 | 9 378 | 7.2 | 39 686 | 36 247 | 9.5 |
| Professional Services | 8 560 | 9 236 | -7.3 | 32 877 | 34 179 | -3.8 |
| Automation Services | 6 637 | 4 807 | 38.1 | 23 699 | 16 449 | 44.1 |
| Group total | 30 427 | 30 227 | 0.7 | 113 699 | 107 750 | 5.5 |
The company's license sales decreased by 23.9 percent during the fourth quarter, accounting for 17.0 percent (22.5%) of net sales. Purchase-to-Pay (P2P) license sales, reported in License Sales, decreased by 22.0 percent, with an increasing share of agreements signed implemented as SaaS solutions. 16 (2) new SaaS-based P2P agreements and 21 (31) new license-based P2P agreements were concluded during the fourth quarter. SaaS sales, reported in Automation Services, grew by 19.0 percent. Maintenance revenue increased by 7.2 percent and accounted for 33.0 percent (31.0%) of net sales. Professional Services revenue decreased by 7.3 percent and accounted for 28.1 percent (30.6%) of net sales. Non-billable work required for the first installations of the Alusta product family and the first SaaS production installations of the new service center in North America contributed to the decrease in Professional Services revenue.
During the fourth quarter, Automation Services increased by 38.1 percent and accounted for 21.8 percent (15.9%) of net sales. The transaction volume processed by the Automation Services business continued to increase favorably and was 9.5 million (growth of 53.2 percent). The estimated revenue to be recognized for current Automation Services agreements that are in production as well as for new, signed agreements in the next twelve months increased to an estimated EUR 27.8 million, growth of 10.3 percent compared to the previous quarter.
The international share of Basware's net sales was 56.5 percent (56.9%) in the fourth quarter.
FINANCIAL PERFORMANCE OCTOBER 1 – DECEMBER 31, 2012
Operating profit for the fourth quarter decreased by 15.3 percent to EUR 2 927 thousand (EUR 3 454 thousand). Operating profit represented 9.6 percent (11.4%) of net sales.
The financial statements for 2011 included a provision of EUR 1 203 thousand related to the restructuring of operations in the fourth quarter. The provision was utilized in full during 2012.
The company's fixed costs were EUR 23 019 thousand (EUR 23 422 thousand) in the quarter, and have decreased by 1.7 percent on the corresponding period the previous year. Personnel costs made up 73.1 percent (74.9%) or EUR 16 820 thousand (EUR 17 539 thousand) of the fixed costs. Bad debt and change in bad debt provision are included in fixed costs. Bad debt provision at the end of the fourth quarter amounted to EUR 1 055 thousand (EUR 1 021 thousand).
Basware Corporation | Linnoitustie 2, Cello, P.O. Box 97, FI-02601 Espoo, Finland | Tel. +358 9 879 171 | Fax +358 9 8791 7297 | www.basware.com
basware
Financial statement release
6 (28)
January 24, 2013
Basware's research and development expenses totaled EUR 5 037 thousand (EUR 4 481 thousand), or 16.6 percent (14.8%) of net sales during the fourth quarter. The expenses increased by 12.4 percent compared to the corresponding period the previous year. R&D expenses capitalized during the fourth quarter amount to EUR 1 747 thousand (EUR 1 535 thousand). The research and development costs included in the profit for the fourth quarter totaled EUR 3 291 thousand (EUR 2 946 thousand), or 10.8 percent (9.7%) of net sales.
The company's finance income and finance expenses were EUR -84 thousand (EUR 19 thousand) for the fourth quarter. Profit before tax was EUR 2 843 thousand (EUR 3 473 thousand) and profit for the fourth quarter was EUR 1 945 thousand (EUR 2 940 thousand) or 6.4 percent (9.7%) of net sales. Taxes for the review period totaled EUR 898 thousand (EUR 533 thousand). Undiluted earnings per share were EUR 0.15 (EUR 0.23).
FINANCIAL PERIOD
NET SALES JANUARY 1 – DECEMBER 31, 2012
Basware Group's net sales increased by 5.5 percent during the review period (January–December) and were EUR 113 699 thousand (EUR 107 750 thousand). In local currency terms, net sales increased by 3.3 percent.
Information on products and services:
| Net sales (EUR thousand) | 10–12/2012 | 10–12/2011 | Change, % | 1–12/2012 | 1–12/2011 | Change, % |
|---|---|---|---|---|---|---|
| License Sales | 5 179 | 6 806 | -23.9 | 17 437 | 20 874 | -16.5 |
| Maintenance | 10 052 | 9 378 | 7.2 | 39 686 | 36 247 | 9.5 |
| Professional Services | 8 560 | 9 236 | -7.3 | 32 877 | 34 179 | -3.8 |
| Automation Services | 6 637 | 4 807 | 38.1 | 23 699 | 16 449 | 44.1 |
| Group total | 30 427 | 30 227 | 0.7 | 113 699 | 107 750 | 5.5 |
The company's license sales decreased by 16.5 percent during the reporting period to 15.3 percent (19.4%) of net sales. Purchase-to-Pay (P2P) license sales, reported in License Sales, decreased by 10.2 percent, with an increasing share of agreements signed implemented as SaaS solutions. 40 (4) new SaaS-based P2P agreements and 78 (92) new license-based P2P agreements were concluded in 2012. SaaS sales, reported in Automation Services, grew by 22.2 percent. Maintenance revenue increased by 9.5 percent and accounted for 34.9 percent (33.6%) of net sales. Professional Services revenue decreased by 3.8 percent and accounted for 28.9 percent (31.7%) of net sales. Non-billable work required for the first installations of the Alusta product family and the first SaaS production installations of the new service center in North America contributed to the decrease in Professional Services revenue.
During the period, Automation Services grew by 44.1 percent and accounted for 20.8 percent (15.3%) of net sales. The transaction volume processed by the Automation Services business continued to increase favorably and was 34.0 million (growth of 63.5 percent). The estimated revenue to be recognized for current Automation Services agreements that are in production as well as for new, signed agreements in the next twelve months increased to an estimated EUR 27.8 million, growth of 10.3 percent compared to the previous quarter.
The international share of Basware's net sales was 57.3 percent (54.8%) in the financial period. International operations grew by 10.2 percent.
Basware Corporation | Linnoitustie 2, Cello, P.O. Box 97, FI-02601 Espoo, Finland | Tel. +358 9 879 171 | Fax +358 9 8791 7297 | www.basware.com
basware
Financial statement release
January 24, 2013
FINANCIAL PERFORMANCE JANUARY 1 – DECEMBER 31, 2012
Basware's operating profit for the period decreased by 32.3 percent to EUR 8 308 thousand (EUR 12 280 thousand). Operating profit represented 7.3 percent (11.4%) of net sales.
The company's fixed costs were EUR 90 081 thousand (EUR 82 850 thousand) in the period, up 8.7 percent on the corresponding period the previous year. Personnel costs made up 72.8 percent (74.3%) or EUR 65 590 thousand (EUR 61 575 thousand) of the fixed costs. Bad debt and change in bad debt provision are included in fixed costs. Bad debt provision at the end of the fourth quarter amounted to EUR 1 055 thousand (EUR 1 021 thousand).
Basware's research and development expenses totaled EUR 17 884 thousand (EUR 16 489 thousand), or 15.7 percent (15.3%) of net sales during the review period. The expenses increased by 8.5 percent compared to the corresponding period the previous year. R&D expenses capitalized during the review period amounted to EUR 5 330 thousand (EUR 4 309 thousand). The research and development costs included in the profit for the review period totaled EUR 12 555 thousand (EUR 12 180 thousand), or 11.0 percent (11.3%) of net sales.
The company's finance income and finance expenses were EUR 50 thousand (EUR 52 thousand). The company's profit before tax was EUR 8 357 thousand (EUR 12 332 thousand). Taxes for the financial period totaled EUR 2 494 thousand (EUR 2 661 thousand). Profit for the period was 5.2 percent (9.0%) of net sales, or EUR 5 863 thousand (EUR 9 671 thousand). Undiluted earnings per share were EUR 0.46 (EUR 0.76).
Basware's German subsidiary was subjected to a tax audit in 2011 which was concluded during 2012. Because of this, taxes for the period include EUR 702 thousand of taxes recognized by the subsidiary, of which EUR 462 thousand was recognized in the third quarter. Basware is applying for a mutual agreement procedure, in which the competent German and Finnish authorities will agree on the elimination of double taxation. The process is estimated to take 3-4 years.
FINANCE AND INVESTMENTS
Basware Group's total assets on the balance sheet at the end of the period were EUR 129 758 thousand (EUR 121 966 thousand). The company's liquid assets were EUR 34 519 thousand (EUR 42 977 thousand), which comprises of cash and cash equivalents in full. A loan of EUR 10.0 million was withdrawn in December 2012 to partly finance the acquisition of Certipost's e-invoicing operations on January 2, 2013.
Equity ratio was 77.6 percent (81.9%) and gearing was -23.8 percent (-42.3%). The Company's interest-bearing liabilities totaled EUR 10 524 thousand (EUR 682 thousand), of which current liabilities accounted for EUR 1 906 thousand (EUR 158 thousand). Return on investment was 8.2 percent (14.9%) and return on equity 5.8 percent (11.6%).
Net cash flows from operating activities were EUR 6 441 thousand (EUR 15 207 thousand). Net cash flows from investments were EUR -18 799 thousand (EUR -5 631 thousand).
The company's capital expenditure, resulting from regular additional and replacement investments required for growth, was EUR 1 431 thousand (EUR 2 014 thousand) in the period. Gross investments which include – in addition to those mentioned above – the acquisition as well as capitalized research and development costs totaled EUR 19 606 thousand (EUR 6 331 thousand).
Basware Corporation | Linnoitustie 2, Cello, P.O. Box 97, FI-02601 Espoo, Finland | Tel. +358 9 879 171 | Fax +358 9 8791 7297 | www.basware.com
basware
Financial statement release
January 24, 2013
Amortization of intangible assets totaled EUR 5 724 thousand (EUR 4 390 thousand). There are no indications of impairments of assets.
On January 17, 2012, Basware Corporation acquired the entire share capital of e-Invoicing operator First Businesspost GmbH. The acquisition price was paid in cash in connection with the closing of the acquisition so that 20% of the debt free price was paid to an escrow account. The escrow agreement is in place until the end of January 2013. Basware consolidated First Businesspost's figures into its net sales and profit as of January 1, 2012. The allocated purchase price is approximately EUR 12.5 million. Approximately EUR 2.6 million associated with customer relationships and acquired technology has been allocated to intangible assets, taking deferred tax liabilities into consideration. The value associated with customer relationships will be amortized in seven years and value associated with technology in five years, starting in the first quarter of 2012. The purchase price includes approximately EUR 9.1 million of goodwill. The allocation of the purchase price also takes into account the deferred tax assets of EUR 0.8 million related to the utilization of retained losses.
The Annual General Meeting authorized the Board of Directors to decide on repurchase of the company's own shares in accordance with the proposal of the Board of Directors on February 16, 2012. By virtue of the authorization, the Board of Directors is entitled to decide on repurchasing a maximum of 1 290 000 company's own shares. The Repurchase Authorization is valid until June 30, 2013. The company has repurchased 49 114 own shares by December 31, 2012. The total amount of own shares held by the company on December 31, 2012, is 82 708 shares, representing approximately 0.6% of all of outstanding shares.
RESEARCH, DEVELOPMENT AND NEW PRODUCTS
Basware's research and development expenses totaled EUR 17 884 thousand (EUR 16 489 thousand), or 15.7 percent (15.3%) of net sales during the review period. The expenses increased by 8.5 percent compared to the corresponding period the previous year. Research and development expenses capitalized during the review period amounted to EUR 5 330 thousand (EUR 4 309 thousand). The research and development costs included in the profit for the review period totaled EUR 12 555 thousand (EUR 12 180 thousand), or 11.0 percent (11.3%) of net sales.
The development of the next generation of software, Basware Alusta, had an effect on the amount of capitalized research and development costs.
Alusta, the unified cloud-based platform for Purchase-to-Pay, was launched in the first quarter of 2012. Alusta brings together Basware's B2B process knowledge with its cloud services optimized to ensure easy connectivity with the Open Network to companies of all sizes. Alusta is also strongly offered as a service and supports Basware's strategic transformation to a services company. It will also have a positive impact on the competitiveness of the company.
A total of 351 (311) people worked in R&D of whom 162 people in India at the end of 2012.
PERSONNEL
Basware employed 1 330 (1 058) people on average during the period and 1 423 (1 182) at the end of the period. The number of personnel increased by 241 persons and by 20.4 percent compared with the same period the previous year. The increase in the number of personnel was mainly due to the increase in the number of employees in the Indian unit and the personnel joining Basware through the acquisition of a German e-Invoicing operator.
Basware Corporation | Linnoitustie 2, Cello, P.O. Box 97, FI-02601 Espoo, Finland | Tel. +358 9 879 171 | Fax +358 9 8791 7297 | www.basware.com
basware
Financial statement release
January 24, 2013
Geographical division of personnel:
| Personnel (employed, on average) | 10–12/2012 | 10–12/2011 | Change, % | 1–12/2012 | 1–12/2011 | Change, % |
|---|---|---|---|---|---|---|
| Finland | 507 | 467 | 8.6 | 486 | 454 | 7.0 |
| Scandinavia | 133 | 120 | 11.1 | 129 | 119 | 8.6 |
| Rest of Europe | 196 | 136 | 44.5 | 179 | 137 | 30.3 |
| India | 507 | 359 | 41.2 | 467 | 284 | 64.4 |
| Other | 71 | 67 | 5.0 | 69 | 64 | 7.4 |
| Group total | 1 414 | 1 149 | 23.1 | 1 330 | 1 058 | 25.6 |
The share of personnel working in foreign units has increased compared with the previous year. At the end of the period, 64.4 percent (61.2%) of Basware personnel worked outside of Finland and 35.6 percent (38.8%) in Finland. 11.3 percent of the personnel work in sales and marketing, 57.8 percent in consulting and services, 24.7 percent in Products, and 6.2 percent in administration.
The average age of employees is 34.0 (34.2) years. Of the employees, 24.3 percent have a Master's degree and 29.6 percent have a Bachelor's degree. Women account for 22.8 percent of employees, men for 77.2 percent. For incentive purposes, the Company has a bonus program that covers all employees.
The short-term remuneration of the top management consists of salary, fringe benefits and a possible annual bonus based on performance. Long-term remuneration of the top management consists of a share-based incentive scheme. The Executive Team members' bonus based on performance is no more than 50 percent of annual basic salary. The bonus based performance percentage is not limited in the CEO's contract of employment. The bonus is determined on the basis of the attainment of goals supporting to the company's growth and profitability according to its strategy, and personal objectives. The Board of Directors monitors the fulfillment of the performance and result criteria of the incentive scheme twice a year and approves the bonus to be paid.
A share-based incentive scheme was in use in 2009-2011. The possible reward of the share-based incentive scheme for the vesting period 2009-2011 was based on Basware Corporation's earnings per share (EPS). The bonus for the vesting period 2009 was paid in December 2011 and the bonus for the vesting period 2010 in December 2012. The bonus for the vesting period 2011 will be paid in December 2013. The bonuses are paid partially as shares in the company and partially in cash. The bonus of the share-based incentive scheme is paid two years after the end of the vesting period, and therefore no other restrictions are associated with the ownership of the shares received.
The Board of Directors of Basware Corporation decided on a new share-based incentive plan for the Basware Group key personnel on February 17, 2012. The aim of the plan is to combine the objectives of the shareholders and the key personnel in order to increase the value of the company, commit the key personnel to the company, and offer them a competitive reward plan based on holding the company shares. The Board of Directors encourages the Basware Executive Team members to hold shares in the company equaling the value of annual gross base salary.
The system includes three earning periods, calendar years 2012, 2013 and 2014. The system comprises annual earning periods 2012, 2013, and 2014 and fixed earning period 2012-2014. Members of Basware Executive Team may be allocated additional shares without consideration against shareholding during the earning period 2012-2014.
The Board of Directors decides on the earnings criteria and targets to be established for them separately for each annual earning period at the beginning of the earning period. There are employment-related conditions for eligibility for reward payment.
Basware Corporation | Linnoitustie 2, Cello, P.O. Box 97, FI-02601 Espoo, Finland | Tel. +358 9 879 171 | Fax +358 9 8791 7297 | www.basware.com
basware
Financial statement release
10 (28)
January 24, 2013
GEOGRAPHICAL INFORMATION
Geographical division of net sales and operating profit is presented in the tables to the financial statement release. As geographic information Basware reports geographical areas Finland, Scandinavia, rest of Europe and Other.
Sales of Software as a Service solutions are increasing at a steady rate, with an increasing number of agreements made as SaaS services and the demand for license sales shifting towards service solutions. New, multi-year SaaS and e-invoicing service agreements have been concluded in all geographical areas during the year. The strong growth in Automation Services continued also during the fourth quarter. Growth in services was largely generated in the international market.
SHARE AND SHAREHOLDERS
Basware Corporation's share capital totaled EUR 3 528 368.70 at the end of the period and the number of shares was 12 931 229.
The Annual General Meeting authorized the Board of Directors to decide on repurchase of the company's own shares in accordance with the proposal of the Board of Directors on February 16, 2012. By virtue of the authorization, the Board of Directors is entitled to decide on repurchasing a maximum of 1 290 000 company's own shares. The Repurchase Authorization is valid until June 30, 2013. The company has repurchased 49 114 own shares by December 31, 2012. The total amount of own shares held by the company on December 31, 2012, is 82 708 shares, representing approximately 0.6% of all of outstanding shares.
In 2012, company's own shares were purchased with EUR 963 038.78 in total.
The company's own shares will be repurchased otherwise than in proportion to the holdings of the shareholders by using the non-restricted equity through public trading on NASDAQ OMX Helsinki Ltd at the market price prevailing at the time of acquisition. The shares shall be repurchased and paid for in accordance with the rules of NASDAQ OMX Helsinki Ltd and Euroclear Finland Ltd.
Share price and trade
During the reporting period, the highest price of the share was EUR 24.00 (EUR 28.10), the lowest was EUR 16.70 (EUR 14.95) and the closing price was EUR 20.25 (EUR 16.45). The average price of the share was EUR 20.84 (EUR 21.58) during the period.
A total of 1 514 703 (5 079 523) shares were traded during the period, equivalent to 11.8 percent (40.1%) of the average number of shares. Market capitalization with the period's closing price on December 31, 2012 was EUR 260 182 550 (EUR 211 737 063).
Shareholders
Basware had 14 443 (15 017) shareholders on December 31 including nominee-registered holdings (12). Nominee-registered holdings accounted for 11.2 percent (12.4%) of the total number of shares.
The company holds 82 708 Basware Corporation shares, corresponding to approximately 0.6% of all shares in the company.
Basware Corporation | Linnoitustie 2, Cello, P.O. Box 97, FI-02601 Espoo, Finland | Tel. +358 9 879 171 | Fax +358 9 8791 7297 | www.basware.com
basware
Financial statement release
11 (28)
January 24, 2013
Shareholdings of the Executive Team and Board of Directors
According to the share register maintained by Euroclear Finland Ltd, CEO Esa Tihilä held 9 850 Basware Corporation shares, Matti Copeland 2 771, Mika Harjuaho 8 000, Mari Heusala 250, Jorma Kemppainen 3 021, Steve Muddiman 8 087, Matti Rusi 3 021, and Jukka Virkkunen 4 750 shares on December 31,2012. Other members of the Executive Team did not hold shares in Basware Corporation.
According to the share register maintained by Euroclear Finland Ltd, Hannu Vaajoensuu held 673 800, Pentti Heikkinen 2 609, Ilkka Sihvo 885 300, Eeva Sipilä 1 593, and Anssi Vanjoki 5 000 shares in Basware Corporation on December 31, 2012.
GOVERNANCE
The Annual General Meeting of Shareholders on February 16, 2012, confirmed the number of Board members as five. The Annual General Meeting resolved to agree on the proposal to elect Pentti Heikkinen, Eeva Sipilä, Ilkka Sihvo, Hannu Vaajoensuu, and Anssi Vanjoki as members of the Board of Directors. In its first meeting held after the Annual General Meeting, the Board of Directors elected Hannu Vaajoensuu as chairman and Ilkka Sihvo as vice chairman of the Board.
The Annual General Meeting further resolved to elect Ernst & Young Oy, Authorized Public Accountants as the auditor, with APA Heikki Ilkka in charge and APA Terhi Mäkinen as the deputy auditor.
Repurchase of the company's own shares
The Annual General Meeting decided to authorize the Board of Directors to decide on repurchase of the company's own shares in accordance with the proposal of the Board of Directors. By virtue of the authorization, the Board of Directors is entitled to decide on repurchasing a maximum of 1 290 000 company's own shares. The company's own shares will be repurchased otherwise than in proportion to the holdings of the shareholders by using the non-restricted equity through public trading on NASDAQ OMX Helsinki Ltd at the market price prevailing at the time of acquisition. The shares will be repurchased and paid for in accordance with the rules of NASDAQ OMX Helsinki Ltd and Euroclear Finland Ltd. The shares shall be repurchased for use as consideration in possible acquisitions or other arrangements related to the company's business, as financing for investments or as part of the company's incentive program or to be held by the company, to be conveyed by other means or to be cancelled. The Board of Directors shall decide on other terms and conditions related to the repurchase of the company's own shares. The Repurchase Authorization shall be valid until June 30, 2013.
Authorizing the Board of Directors to decide on share issue as well as on the issuance of options and other special rights entitling to shares
The Annual General Meeting decided to authorize the Board of Directors to decide on issuing new shares and/or conveying the company's own shares held by the company and/or granting special rights entitling to shares pursuant to Chapter 10, Section 1 of the Finnish Companies Act in accordance with the proposal of the Board of Directors.
The Board of Directors shall decide on all other related to the authorization. The authorization is valid until June 30, 2013.
The company issues a Corporate Governance Statement for 2011, composed in accordance with Recommendation 51 of the new Corporate Governance Code and Chapter 2, Section 6 of the Finnish
Basware Corporation | Linnoitustie 2, Cello, P.O. Box 97, FI-02601 Espoo, Finland | Tel. +358 9 879 171 | Fax +358 9 8791 7297 | www.basware.com
basware
Financial statement release
12 (28)
January 24, 2013
Securities Market Act. The Corporate Governance Statement was issued separately from the company's annual report.
Basware's full governance principles can be read on the company website's Investors pages: http://www.basware.com/about-us/investors/corporate-governance.
Basware Executive Team as of April 1, 2012: Esa Tihilä, CEO; Matti Copeland, Senior Vice President, Strategy; Mika Harjuaho, CFO; Henrik Hasselbalch, Senior Vice President, Professional Services; Mari Heusala, Senior Vice President, HR&Dev; Jorma Kemppainen, Senior Vice President, Products; Pekka Lindfors, Senior Vice President, Volume Sales; Steve Muddiman, Senior Vice President, Global Marketing; Riku Roos, Senior Vice President, Automation Services; Matti Rusi, Senior Vice President, Support; and Jukka Virkkunen, Senior Vice President, Enterprise Sales.
SHORT-TERM RISKS AND UNCERTAINTY FACTORS
In accordance with Basware's risk management policy, risks are divided into six categories: risks related to business operations, products, personnel as well as legal, financial and data security risks. Basware takes risks that are a natural part of its strategy and objectives. These risks are managed and decreased in various ways. Short-term risks are considered to be risks in the current reporting year.
The world economy and markets are unstable, which may result in a decrease in the demand for license sales and services. Furthermore, the conversion of license sales to SaaS solutions will reduce net sales growth over the short term. The shift of demand for license sales towards the SaaS solution will support the long-term growth target of the Automation Services business.
Competitiveness in bringing new customers is essential to the growth pursued by the company. Next generation Alusta software solutions aim to ensure Basware's product leadership in Purchase-to-Pay software and services as well as increase the number of new customers.
Securing the maintenance and service revenue generated by existing software customer accounts is the foundation for the company's profitable growth. Therefore, the aim is to ensure the controlled migration of existing customers to next generation software and services during the next financial periods.
The long-term target in Automation Services is annual growth of more than 50 percent. SaaS and e-invoicing are scalable business models with a high business potential. Achieving the targeted growth requires continuous strong growth in the number of customers and transaction volumes and ensuring the production quality and continuity of the growing service business. The significant production related risks, in order to achieve financial objectives, include for example the service level agreement breaches as well as service outages which might lead to financial losses.
Basware has complemented its organic growth with acquisitions in accordance with its strategy. Ensuring the success of acquisitions is fundamental to the company's profitable growth. In implementing acquisition projects, the aim is to follow due diligence and utilize the company's internal and external expertise in the planning phase, take over phase and when integrating the acquired functions into the company's operations.
Managing the increasing costs through the cost benefits offered by offshoring sites is an essential part of the continuous improvement of the company's profitability.
The bad debt risk associated with sales receivables is part of the risk related to business operations. The company has intensified the management of sales receivables and collection process during the latter
Basware Corporation | Linnoitustie 2, Cello, P.O. Box 97, FI-02601 Espoo, Finland | Tel. +358 9 879 171 | Fax +358 9 8791 7297 | www.basware.com
basware
Financial statement release
13 (28)
January 24, 2013
half of 2012. Business management regularly monitors the payment of sales receivables as part of the management of customer accounts.
Goodwill was tested for impairment during the last quarter of 2012. According to the testing for asset impairment, goodwill has not been impaired, and there are no indications of impairment.
In other respects, no significant changes have taken place in Basware's short-term risks and uncertainties.
ENVIRONMENTAL AND SOCIAL RESPONSIBILITY
High business ethics, corporate values, and the surrounding legislation guide Basware's social responsibility. The company is committed to financial, social, and environmental responsibility in all of its operations.
Basware's software products reduce paper consumption in thousands of offices around the world, leading the customer companies toward the paperless office, which saves both the environment and money. Profitability and financial stability are an integral part of Basware's responsibility. Stability and trustworthiness yield added value to all stakeholders.
Basware has cooperated with the Plan charity foundation since 2002, and the company sponsors the protection of the Baltic Sea via the WWF.
Audit of the environmental management system
Bureau Veritas Certification has audited Basware Corporation's Espoo, Pori, and Tampere offices and awarded them the ISO 14001:2004 certificate on June 20-21, 2012.
STRATEGY
Basware's Board of Directors and management updated the company's strategy and objectives for the next three years. The updated strategy was announced on September 4, 2012. 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 growth 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.
Basware is the global market leader in Purchase to Pay (P2P) solutions with close to 2000 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
Basware Corporation | Linnoitustie 2, Cello, P.O. Box 97, FI-02601 Espoo, Finland | Tel. +358 9 879 171 | Fax +358 9 8791 7297 | www.basware.com
basware
Financial statement release
14 (28)
January 24, 2013
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. 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. 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 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. The 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.
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.
Basware Corporation | Linnoitustie 2, Cello, P.O. Box 97, FI-02601 Espoo, Finland | Tel. +358 9 879 171 | Fax +358 9 8791 7297 | www.basware.com
basware
Financial statement release
January 24, 2013
15 (28)
EVENTS AFTER THE REPORTING PERIOD
Acquisition of Certipost’s network and e-Invoicing business closed
The company announced on January 2, 2013 on the closing of the acquisition of Certipost’s network and e-Invoicing business. In it, Basware acquires the network and e-Invoicing business of Certipost, the leading e-Invoice operator in the Benelux. The initial acquisition price of approximately EUR 18.2 million was paid in cash on the closing date.
The final acquisition price will be based on the audited 2012 annual accounts. In 2012, the net sales of the acquired business are expected to amount to approximately EUR 8.4 million and operating profit to amount to approximately EUR 0.8 million negative.
Basware will consolidate the acquired business into its net sales and profit starting from January 1, 2013. Synergy benefits are to be explored through the combination of business operations and technologies as well as joint infrastructure and support functions. The annual potential for cost-savings is expected to be approximately EUR 3.0 million once all of the predicted streamlining measures are complete. Non-recurring restructuring and acquisition costs are estimated to amount to approximately EUR 3.0 million. The operating profit of the acquired business is expected to be slightly positive in 2013.
The purchase price to be allocated is approximately EUR 18.2 million. The acquired net assets amount to approximately EUR 1.4 million, including the cash reserves of EUR 2.2 million. Approximately EUR 4.5 million associated with customer relationships and acquired technology has been allocated to intangible assets, taking deferred tax liabilities into consideration. The value associated with customer relationships will be amortized completely over seven years, and the value associated with technology over five years, starting from the first quarter of 2013. The purchase price includes approximately EUR 12.3 million of goodwill. The calculation concerning the allocation of the purchase price is preliminary.
The acquisition will make Basware the market leader in e-Invoicing in the Benelux market. Certipost’s extensive expertise in electronic data interchange (EDI) also played a key role in the conclusion of the agreement.
The company announced the agreement to acquire the network and e-Invoicing business of Certipost, a bpost company, on October 5, 2012. The acquisition of Certipost’s network and e-Invoicing business was Basware’s second announced acquisition in 2012. In early 2012, Basware became the leading e-Invoicing operator in Germany with the acquisition of First Businesspost GmbH.
Changes in Basware’s Executive Team
The company announced a change in the group’s Executive Team: Ilari Nurmi, M.Sc.(Eng.), was appointed as the product manager of Basware Group with the title Senior Vice President, Product Management, and member of the Executive Team as of January 7, 2013.
FUTURE OUTLOOK
Operating environment and market outlook
According to independent research institutions’ most recent market estimates the software market is expected to grow by 6.4 percent globally in 2013 (2012: 6.2%). The entire IT services market is expected to grow by 5.2 percent globally (2012: 4.7%).
Basware Corporation | Linnoitustie 2, Cello, P.O. Box 97, FI-02601 Espoo, Finland | Tel. +358 9 879 171 | Fax +358 9 8791 7297 | www.basware.com
basware
Financial statement release
16 (28)
January 24, 2013
The company's transition process is expected to reach a point where the investments will begin to pay themselves back in the form of increasing net sales and improved profitability during the latter half of the year. The share of R&D expenses of net sales is expected to decrease during 2013 compared to the level in 2012. The emphasis of the overall R&D expenses will move from Alusta product development towards the service development of Automation Services.
The need for continuous services is expected to remain good in our customer base regardless of economic cycles and the challenging economic situation. The predicted development of profitability is particularly based on the adoption of a scalable sales and delivery model and launching a global efficient service production network at full steam. The growing and developing e-invoice market offers good growth opportunities for Basware, which is already the industry-leading independent player worldwide.
The world economy and markets are unstable, which may result in a decrease in the demand for license sales and services. The conversion of license sales to SaaS solutions will reduce net sales growth over the short term. The shift of demand for license sales towards the SaaS solution will support the growth target of the Automation Services business.
Outlook 2013
Basware expects its net sales for 2013 to grow by more than 15% and operating profit (EBIT) to grow compared to the previous year. The operating profit includes estimated one-off restructuring costs of approximately EUR 2.3 million related to an acquisition that was completed in January.
The operating profit (EBIT) for the first quarter of 2013 is expected to be negative due to one-off restructuring costs.
BOARD'S DIVIDEND PROPOSAL
Basware is a growth company that aims at increased market capitalization and moderate dividend yield. When preparing the dividend proposal, the Board considers the company's financial position, profitability and prospects in the near future.
At the end of 2012, the Group parent company's distributable funds are EUR 93 857 156.92.
Basware's Board of Directors proposes to the Annual General Meeting that a dividend of EUR 0.23 per share (2011: EUR 0.41) be paid for 2012.
Espoo, Finland, January 23, 2013
BASWARE CORPORATION
Board of Directors
For more information, please contact
CEO Esa Tihilä, Basware Corporation
Tel. +358 40 480 7098
Basware Corporation | Linnoitustie 2, Cello, P.O. Box 97, FI-02601 Espoo, Finland | Tel. +358 9 879 171 | Fax +358 9 8791 7297 | www.basware.com
basware
Financial statement release
17 (28)
January 24, 2013
Analyst and press briefing and conference call
Basware arranges today, January 24, 2013, a briefing on the Interim Report for the press and analysts at 11:00 a.m. in Hotel Kämp (Kluuvikatu 2, 2nd floor), Helsinki, Finland. During this briefing CEO Esa Tihilä and CFO Mika Harjuaho will comment the events and financial performance of the quarter. Additional information and registration: Sirje Ahvenlampi, Manager, Investor Relations, tel. +358 50 557 3822, sirje.ahvenlampi (at) basware.com.
A conference call for analysts will take place on January 24 at 4:00 p.m. (GMT+2). More information on registration for the conference on the company's investor site: http://www.basware.com/about-us/investors.
Basware's financial reporting and Annual General Meeting in 2013
Basware's Annual Report 2012, including the audited Financial Statements, will be published on the company's website during the week starting on January 21, 2013. Release dates for interim reports:
- Interim Report January-March 2013 (Q1) on Thursday, April 11, 2013
- Interim Report January-June 2013 (Q2) on Wednesday, July 10, 2013
- Interim Report January-September 2013 (Q3) on Thursday, October 10, 2013
Basware Corporation's Annual General Meeting of Shareholders will be held on Thursday, February 14, 2013, starting at 2:00 p.m. in Finlandia Hall (Mannerheimintie 13 e) in Helsinki, Finland.
Distribution:
NASDAQ OMX Helsinki Ltd
Main media
www.basware.com
Basware Corporation | Linnoitustie 2, Cello, P.O. Box 97, FI-02601 Espoo, Finland | Tel. +358 9 879 171 | Fax +358 9 8791 7297 | www.basware.com
basware
Financial statement release
January 24, 2013
SUMMARY OF FINANCIAL STATEMENTS AND NOTES TO THE FINANCIAL STATEMENTS
JANUARY 1 – DECEMBER 31, 2012
Accounting principles:
This financial statement release has been prepared in accordance with IAS 34, Interim Financial Reporting. As from the beginning of the financial period, the company has adopted certain new or amended IFRS standards and IFRIC interpretations as described in the Financial Statements for 2012. However, the adoption of these new and amended norms have not yet had an effect on the reported figures in practice. In other respects, the same accounting policies have been followed as in the annual Financial Statements. Key indicator calculations remain unchanged and are presented in the 2012 Financial Statements.
Preparation of financial statements in accordance with the IFRS standards requires Basware's management to make estimates and assumptions that have an effect on the amount of assets and liabilities on the balance sheet at the closing date as well as the amounts of income and expenses for the financial period. In addition, the management must exercise its judgment regarding the application of accounting policies. Since the estimates and assumptions are based on the views at the date of the Financial Statements, they include risks and uncertainties. The actual results may differ from the estimates and assumptions.
The amounts presented in the income statement and balance sheet are Group figures. The amounts presented in the release are rounded, so the sum of individual figures may differ from the sum reported.
The amounts presented in this release are based on the company's audited financial statements. The Auditor's Report was issued on January 23, 2013.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
| EUR thousand | 1.10.–31.12.2012 | 1.10.–31.12.2011 | Change, % | 1.1.–31.12.2012 | 1.1.–31.12.2011 | Change, % |
|---|---|---|---|---|---|---|
| NET SALES | 30 427 | 30 227 | 0.7 | 113 699 | 107 750 | 5.5 |
| Other operating income | 57 | 46 | 25.6 | 228 | 172 | 32.7 |
| Materials and services | -2 715 | -2 179 | 24.6 | -9 045 | -7 788 | 16.2 |
| Employee benefit expenses | -16 820 | -17 539 | -4.1 | -65 590 | -61 575 | 6.5 |
| Depreciation and amortization | -1 823 | -1 218 | 49.7 | -6 493 | -5 004 | 29.8 |
| Other operating expenses | -6 199 | -5 883 | 5.4 | -24 491 | -21 275 | 15.1 |
| Operating profit | 2 927 | 3 454 | -15.3 | 8 308 | 12 280 | -32.3 |
| Finance income | 61 | 232 | -73.7 | 372 | 510 | -27.0 |
| Finance expenses | -145 | -213 | -32.0 | -323 | -458 | -29.5 |
| Profit before tax | 2 843 | 3 473 | -18.1 | 8 357 | 12 332 | -32.2 |
| Income tax expense | -898 | -533 | 68.4 | -2 494 | -2 661 | -6.3 |
| PROFIT FOR THE PERIOD | 1 945 | 2 940 | -33.8 | 5 863 | 9 671 | -39.4 |
| Other comprehensive income: | ||||||
| Exchange differences on translating foreign operations | -14 | 443 | -103.2 | 886 | 368 | 141.2 |
| Income tax relating to components of other comprehensive income | -86 | -48 | 79.2 | 111 | 54 | 103.7 |
| Other comprehensive income, net of tax | -101 | 395 | -125.3 | 996 | 422 | 136.3 |
| TOTAL COMPREHENSIVE INCOME | 1 844 | 3 335 | -44.7 | 6 860 | 10 093 | -32.0 |
Basware Corporation | Linnoitustie 2, Cello, P.O. Box 97, FI-02601 Espoo, Finland | Tel. +358 9 879 171 | Fax +358 9 8791 7297 | www.basware.com
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January 24, 2013
| EUR thousand | 1.10.–31.12.2012 | 1.10.–31.12.2011 | Change, % | 1.1.–31.12.2012 | 1.1.–31.12.2011 | Change, % |
|---|---|---|---|---|---|---|
| Profit attributable to: | ||||||
| Owners of the parent | 1 945 | 2 940 | -33.8 | 5 863 | 9 671 | -39.4 |
| 1 945 | 2 940 | -33.8 | 5 863 | 9 671 | -39.4 | |
| Total comprehensive income attributable to: | ||||||
| Owners of the parent | 1 844 | 3 335 | -44.7 | 6 860 | 10 093 | -32.0 |
| 1 844 | 3 335 | -44.7 | 6 860 | 10 093 | -32.0 | |
| Earnings per share (undiluted), EUR | 0.15 | 0.23 | -33.7 | 0.46 | 0.76 | -40.1 |
| Earnings per share (diluted), EUR | 0.15 | 0.23 | -33.7 | 0.46 | 0.76 | -40.1 |
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
| EUR thousand | 31.12.2012 | 31.12.2011 | Change, % |
|---|---|---|---|
| ASSETS | |||
| Non-current assets | |||
| Intangible assets | 23 169 | 19 208 | 20.6 |
| Goodwill | 41 896 | 32 210 | 30.1 |
| Tangible assets | 1 440 | 1 244 | 15.8 |
| Available-for-sale financial assets | 38 | 38 | 0.0 |
| Trade and other receivables | 1 068 | 0 | 0.0 |
| Deferred tax assets | 2 543 | 2 680 | -5.1 |
| Non-current assets | 70 154 | 55 379 | 26.7 |
| Current assets | |||
| Inventories | 18 | 143 | -87.2 |
| Trade and other receivables | 24 202 | 23 091 | 4.8 |
| Income tax receivables | 865 | 374 | 131.1 |
| Cash and short-term deposits | 34 519 | 42 977 | -19.7 |
| Current assets | 59 604 | 66 586 | -10.5 |
| ASSETS | 129 758 | 121 966 | 6.4 |
Basware Corporation | Linnoitustie 2, Cello, P.O. Box 97, FI-02601 Espoo, Finland | Tel. +358 9 879 171 | Fax +358 9 8791 7297 | www.basware.com
basware
Financial statement release
20 (28)
January 24, 2013
EUR thousand
31.12.2012 31.12.2011 Change, %
TOTAL EQUITY AND LIABILITIES
| Shareholders' equity | |||
|---|---|---|---|
| Share capital | 3 528 | 3 528 | 0.0 |
| Share premium account | 1 187 | 1 187 | 0.0 |
| Own shares | -1 215 | -429 | -183.4 |
| Fair value reserve and other reserves | 62 339 | 62 516 | -0.3 |
| Translation differences | -708 | -1 266 | 44.1 |
| Retained earnings | 35 594 | 34 340 | 3.6 |
| Shareholders' equity | 100 725 | 99 877 | 0.8 |
| Non-current liabilities | |||
| --- | --- | --- | --- |
| Deferred tax liabilities | 1 493 | 2 079 | -28.2 |
| Other non-current financial liabilities | 8 618 | 524 | 1 545.0 |
| Other liabilities | 245 | 486 | -49.5 |
| Non-current liabilities | 10 356 | 3 090 | 235.2 |
| Current liabilities | |||
| --- | --- | --- | --- |
| Other current financial liabilities | 1 906 | 158 | 1 102.9 |
| Trade payables and other liabilities | 15 992 | 16 765 | -4.6 |
| Income tax liabilities | 779 | 873 | -10.7 |
| Provisions | 0 | 1 203 | -100.0 |
| Current liabilities | 18 677 | 19 000 | -1.7 |
TOTAL EQUITY AND LIABILITIES
129 758 121 966 6.4
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
| EUR thousand | Share-holder capital | Share issue | Share premium account | Own shares | Inv. non-restricted equity | Other reserves | Translation differences | Retained earnings | Total |
|---|---|---|---|---|---|---|---|---|---|
| SHAREHOLDERS' EQUITY 1.1.2011 | 3 507 | 255 | 1 187 | -629 | 34 263 | 540 | -1 688 | 29 644 | 67 079 |
| Compr. income | 422 | 9 671 | 10 093 | ||||||
| Dividend distribution | -5 120 | -5 120 | |||||||
| Share issue | 27 345 | 27 345 | |||||||
| Granted warrants | 568 | 568 | |||||||
| Changes in rep. period | 21 | -255 | 200 | -200 | 145 | -89 | |||
| SHAREHOLDERS' EQUITY 31.12.2011 | 3 528 | 0 | 1 187 | -429 | 61 976 | 540 | -1 266 | 34 340 | 99 877 |
| EUR thousand | Share-holder capital | Share issue | Share premium account | Own shares | Inv. non-restricted equity | Other reserves | Translation differences | Retained earnings | Total |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| SHAREHOLDERS' EQUITY 1.1.2012 | 3 528 | 0 | 1 187 | -429 | 61 976 | 540 | -1 266 | 34 340 | 99 877 |
| Compr. income | 996 | 5 863 | 6 860 | ||||||
| Dividend distribution | -5 278 | -5 278 | |||||||
| Acquisition of treasury shares | -963 | -963 | |||||||
| Share-based payments | 220 | 220 | |||||||
| Changes in rep. period | 177 | -177 | -438 | 448 | 10 | ||||
| SHAREHOLDERS' EQUITY 31.12.2012 | 3 528 | 0 | 1 187 | -1 215 | 61 799 | 540 | -708 | 35 594 | 100 725 |
Basware Corporation | Linnoitustie 2, Cello, P.O. Box 97, FI-02601 Espoo, Finland | Tel. +358 9 879 171 | Fax +358 9 8791 7297 | www.basware.com
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January 24, 2013
CONSOLIDATED STATEMENT OF CASH FLOWS
| EUR thousand | 1.1.–31.12.2012 | 1.1.–31.12.2011 |
|---|---|---|
| Cash flows from operating activities | ||
| Profit for the period | 5 863 | 9 671 |
| Adjustments for profit | 9 158 | 7 613 |
| Working capital changes | -4 697 | 2 456 |
| Interest paid | -6 | -285 |
| Interest received | 170 | 483 |
| Other financial items in operating activities | -173 | -285 |
| Income taxes paid | -3 874 | -4 446 |
| Net cash flows from operating activities | 6 441 | 15 207 |
Cash flows used in investing activities
| Purchase of tangible and intangible assets | -6 820 | -5 631 |
|---|---|---|
| Acquisition of subsidiaries, net of cash acquired | -11 979 | 0 |
| Net cash flows used in investing activities | -18 799 | -5 631 |
Cash flows from financing activities
| Share issue | 0 | 28 063 |
|---|---|---|
| Proceeds from borrowings | 10 000 | 0 |
| Repayments of borrowings | 0 | -3 550 |
| Purchase of own shares | -963 | 0 |
| Payment of finance lease liabilities | -175 | 0 |
| Dividends paid | -5 278 | -5 120 |
| Net cash flows from financing activities | 3 584 | 19 393 |
| Net change in cash and cash equivalents | -8 774 | 28 969 |
| --- | --- | --- |
| Cash and cash equivalents at the beginning of period | 42 977 | 13 822 |
| Net foreign exchange difference | 112 | 187 |
| Cash and cash equivalents acquired in intra-Group re-organizations | 204 | 0 |
| Cash and cash equivalents at the end of period | 34 519 | 42 977 |
Basware Corporation | Linnoitustie 2, Cello, P.O. Box 97, FI-02601 Espoo, Finland | Tel. +358 9 879 171 | Fax +358 9 8791 7297 | www.basware.com
basware
Financial statement release
22 (28)
January 24, 2013
GROUP QUARTERLY INCOME STATEMENT
| EUR thousand | 1-3/2012 | 1-3/2011 | 4-6/2012 | 4-6/2011 | 7-9/2012 | 7-9/2011 | 10-12/2012 | 10-12/2011 |
|---|---|---|---|---|---|---|---|---|
| NET SALES | 27 435 | 26 058 | 28 718 | 27 280 | 27 119 | 24 185 | 30 427 | 30 227 |
| Other operating income | 58 | 42 | 58 | 41 | 55 | 43 | 57 | 46 |
| Materials and services | -2 061 | -1 948 | -1 957 | -1 727 | -2 313 | -1 933 | -2 715 | -2 179 |
| Employee benefit expenses | -16 072 | -14 738 | -17 282 | -16 004 | -15 415 | -13 293 | -16 820 | -17 539 |
| Depreciation and amortization | -1 366 | -1 237 | -1 495 | -1 279 | -1 809 | -1 270 | -1 823 | -1 218 |
| Other operating expenses | -6 171 | -5 219 | -6 745 | -5 478 | -5 376 | -4 694 | -6 199 | -5 883 |
| Operating profit | 1 822 | 2 957 | 1 298 | 2 832 | 2 261 | 3 038 | 2 927 | 3 454 |
| % | 6.6% | 11.3% | 4.5% | 10.4% | 8.3% | 12.6% | 9.6% | 11.4% |
| Finance income | 146 | 51 | 75 | 125 | 91 | 102 | 61 | 232 |
| Finance expenses | -50 | -77 | -76 | -53 | -52 | -115 | -145 | -213 |
| Profit before tax | 1 918 | 2 930 | 1 296 | 2 904 | 2 300 | 3 024 | 2 843 | 3 473 |
| % | 7.0% | 11.2% | 4.5% | 10.6% | 8.5% | 12.5% | 9.3% | 11.5% |
| Income tax expense | -442 | -662 | -347 | -742 | -807 | -723 | -898 | -533 |
| PROFIT FOR THE PERIOD | 1 476 | 2 268 | 949 | 2 162 | 1 493 | 2 301 | 1 945 | 2 940 |
| % | 5.4% | 8.7% | 3.3% | 7.9% | 5.5% | 9.5% | 6.4% | 9.7% |
Basware Corporation | Linnoitustie 2, Cello, P.O. Box 97, FI-02601 Espoo, Finland | Tel. +358 9 879 171 | Fax +358 9 8791 7297 | www.basware.com
basware
Financial statement release
23 (28)
January 24, 2013
COMMITMENTS AND CONTINGENT LIABILITIES
| EUR thousand | 31.12.2012 | 31.12.2011 |
|---|---|---|
| Own guarantees | ||
| Floating charge | 1 200 | 1 200 |
| Guarantees on behalf of subsidiaries and other Group companies | ||
| Guarantees | 244 | 1 290 |
| Other own guarantees | ||
| Lease liabilities | ||
| Current lease liabilities | 944 | 825 |
| Lease liabilities maturing in 1–5 years | 737 | 899 |
| Total | 1 681 | 1 723 |
| Other rental liabilities | ||
| Current rental liabilities | 4 369 | 4 551 |
| Rental liabilities maturing in 1–5 years | 3 820 | 7 016 |
| Total | 8 189 | 11 568 |
| Other own guarantees, total | 9 870 | 13 291 |
| Commitments and contingent liabilities, total | 11 314 | 15 781 |
SEGMENT REPORTING
Basware Corporation reports one operating segment: Purchase to Pay, P2P. The reported operating segment is comprised of the entire Group, and the segment figures are consistent with the Group figures.
GEOGRAPHICAL INFORMATION
As geographic information Basware reports geographical areas Finland, Scandinavia, rest of Europe and Other. Net sales are split by the customer's location. Net sales and operating profit are also reported by the location of the assets. The Finland geographical area includes the business operations in Finland, Russia, and Asia-Pacific (excluding Australia) and the head office functions. The business operations in North America and Australia are reported in the Other geographical area.
Basware Corporation | Linnoitustie 2, Cello, P.O. Box 97, FI-02601 Espoo, Finland | Tel. +358 9 879 171 | Fax +358 9 8791 7297 | www.basware.com
basware
Financial statement release
January 24, 2013
Net sales by the location of customer:
| Net sales (EUR thousand) | 10–12/2012 | 10–12/2011 | Change, % | 1–12/2012 | 1–12/2011 | Change, % |
|---|---|---|---|---|---|---|
| Finland | 13 235 | 13 042 | 1.5 | 48 567 | 48 660 | -0.2 |
| Scandinavia | 7 263 | 7 987 | -9.1 | 25 809 | 25 381 | 1.7 |
| Rest of Europe | 6 895 | 5 115 | 34.8 | 25 194 | 20 187 | 24.8 |
| Other | 3 034 | 4 083 | -25.7 | 14 129 | 13 522 | 4.5 |
| Group total | 30 427 | 30 227 | 0.7 | 113 699 | 107 750 | 5.5 |
Geographical information by the location of assets
| Net sales (EUR thousand) | 10–12/2012 | 10–12/2011 | Change, % | 1–12/2012 | 1–12/2011 | Change, % |
|---|---|---|---|---|---|---|
| Finland | 17 277 | 16 497 | 4.7 | 61 870 | 57 685 | 7.3 |
| Scandinavia | 7 443 | 7 977 | -6.7 | 26 310 | 25 693 | 2.4 |
| Rest of Europe | 7 055 | 5 237 | 34.7 | 26 035 | 20 940 | 24.3 |
| Other | 2 877 | 3 816 | -24.6 | 12 925 | 12 737 | 1.5 |
| Sales between segments | -4 226 | -3 300 | 28.1 | -13 441 | -9 305 | 44.4 |
| Group total | 30 427 | 30 227 | 0.7 | 113 699 | 107 750 | 5.5 |
| Operating profit (EUR thousand) | 10–12/2012 | 10–12/2011 | Change, % | 1–12/2012 | 1–12/2011 | Change, % |
| --- | --- | --- | --- | --- | --- | --- |
| Finland | 1 694 | 1 647 | 2.9 | 5 506 | 6 812 | -19.2 |
| Scandinavia | 291 | 1 349 | -78.5 | 849 | 4 533 | -81.3 |
| Rest of Europe | 480 | 400 | 20.1 | 1 775 | 1 629 | 9.0 |
| Other | 605 | 474 | 27.7 | 884 | 963 | -8.2 |
| Operating profit between segments | -144 | -416 | -65.4 | -707 | -1 657 | -57.3 |
| Group total | 2 927 | 3 454 | -15.3 | 8 308 | 12 280 | -32.3 |
| Personnel (employed, on average) | 10–12/2012 | 10–12/2011 | Change, % | 1–12/2012 | 1–12/2011 | Change, % |
| --- | --- | --- | --- | --- | --- | --- |
| Finland | 507 | 467 | 8.6 | 486 | 454 | 7.0 |
| Scandinavia | 133 | 120 | 11.1 | 129 | 119 | 8.6 |
| Rest of Europe | 196 | 136 | 44.5 | 179 | 137 | 30.3 |
| India | 507 | 359 | 41.2 | 467 | 284 | 64.4 |
| Other | 71 | 67 | 5.0 | 69 | 64 | 7.4 |
| Group total | 1 414 | 1 149 | 23.1 | 1 330 | 1 058 | 25.6 |
Net sales by business
Basware reports income for products and services as follows: License sales, Professional Services, Maintenance, and Automation Services. License sales consist of Purchase to Pay product family together with payment, financial planning and reporting solutions sold only in Finland. Automation Services include e-Invoicing, scanning services, printing services, catalogue management, purchase message exchange, activation services and Software as a Service (SaaS) services.
| Net sales (EUR thousand) | 10–12/2012 | 10–12/2011 | Change, % | 1–12/2012 | 1–12/2011 | Change, % |
|---|---|---|---|---|---|---|
| License Sales | 5 179 | 6 806 | -23.9 | 17 437 | 20 874 | -16.5 |
| Maintenance | 10 052 | 9 378 | 7.2 | 39 686 | 36 247 | 9.5 |
| Professional Services | 8 560 | 9 236 | -7.3 | 32 877 | 34 179 | -3.8 |
| Automation Services | 6 637 | 4 807 | 38.1 | 23 699 | 16 449 | 44.1 |
| Group total | 30 427 | 30 227 | 0.7 | 113 699 | 107 750 | 5.5 |
Basware Corporation | Linnoitustie 2, Cello, P.O. Box 97, FI-02601 Espoo, Finland | Tel. +358 9 879 171 | Fax +358 9 8791 7297 | www.basware.com
basware
Financial statement release
January 24, 2013
25 (28)
GROUP KEY INDICATORS
Financial Performance Indicators
| EUR thousand | 1-12/2012 | 1-12/2011 | 1-12/2010 |
|---|---|---|---|
| Net sales | 113 699 | 107 750 | 103 094 |
| Growth of net sales, % | 5.5% | 4.5% | 11.3% |
| EBITDA | 14 801 | 17 284 | 18 604 |
| % of net sales | 13.0% | 16.0% | 18.0% |
| Operating profit before IFRS3 amortization | 10 555 | 14 290 | 15 691 |
| % of net sales | 9.3% | 13.3% | 15.2% |
| Operating profit | 8 308 | 12 280 | 13 487 |
| Growth of operating profit, % | -32.3% | -8.9% | 14.1% |
| % of net sales | 7.3% | 11.4% | 13.1% |
| Profit before tax | 8 357 | 12 332 | 13 325 |
| % of net sales | 7.4% | 11.4% | 12.9% |
| Profit for the period | 5 863 | 9 671 | 10 331 |
| % of net sales | 5.2% | 9.0% | 10.0% |
| Return on equity, % | 5.8% | 11.6% | 16.7% |
| Return on investment, % | 8.2% | 14.9% | 20.1% |
| Interest-bearing liabilities | 10 524 | 682 | 3 582 |
| Liquid assets | 34 519 | 42 977 | 13 822 |
| Gearing, % | -23.8% | -42.3% | -15.3% |
| Equity ratio, % | 77.6% | 81.9% | 73.3% |
| Total assets | 129 758 | 121 966 | 91 470 |
| Gross investments * | 19 606 | 6 331 | 4 567 |
| % of net sales | 17.2% | 5.9% | 4.4% |
| Capital expenditure | 1 431 | 2 014 | 970 |
| % of net sales | 1.3% | 1.9% | 0.9% |
| Research and development costs | 17 884 | 16 489 | 14 883 |
| % of net sales | 15.7% | 15.3% | 14.4% |
| R&D personnel at end of period | 351 | 311 | 239 |
| Personnel on average during the period | 1 330 | 1 058 | 845 |
| Personnel at end of period | 1 423 | 1 182 | 913 |
| Increase in personnel, % | 20.4% | 29.5% | 20.0% |
*) Includes acquisitions and capitalized R&D costs
Basware Corporation | Linnoitustie 2, Cello, P.O. Box 97, FI-02601 Espoo, Finland | Tel. +358 9 879 171 | Fax +358 9 8791 7297 | www.basware.com
basware
Financial statement release
January 24, 2013
Group Share indicators
| 1-12/2012 | 1-12/2011 | 1-12/2010 | |
|---|---|---|---|
| Earnings per share (basic), EUR | 0.46 | 0.76 | 0.90 |
| Earnings per share (diluted), EUR | 0.46 | 0.76 | 0.89 |
| Equity/share, EUR | 7.79 | 7.72 | 5.74 |
| Parent company's shareholders' equity per share, EUR | 7.84 | 7.76 | 5.78 |
| Dividend per share, EUR | 0.23* | 0.41 | 0.40 |
| Dividend per profit, % | 50.4% | 53.8% | 44.6% |
| Effective dividend yield, % | 1.1% | 2.5% | 1.6% |
| Price per earnings (P/E) | 44.34 | 21.57 | 27.58 |
| Share price performance, share issue adjusted | |||
| lowest price | 16.70 | 14.95 | 15.00 |
| highest price | 24.00 | 28.10 | 24.80 |
| average price | 20.84 | 21.58 | 19.27 |
| closing price | 20.25 | 16.45 | 24.75 |
| Share issue adjusted average number of shares 31.12. | 12 931 229 | 12 931 229 | 11 690 024 |
| Market capitalization at end of period | 260 182 550 | 211 737 063 | 287 093 169 |
| Share issue adjusted number of traded shares | 1 514 703 | 5 079 523 | 2 131 071 |
| % of average number of shares | 11.8% | 40.1% | 18.5% |
| Average number of shares | |||
| - during the period | 12 836 966 | 12 679 281 | 11 513 690 |
| - at end of the period | 12 931 229 | 12 931 229 | 11 690 024 |
| - during the period, diluted | 12 836 966 | 12 686 792 | 11 585 155 |
*) Board's proposal to the Annual General Meeting of Shareholders
Basware Corporation | Linnoitustie 2, Cello, P.O. Box 97, FI-02601 Espoo, Finland | Tel. +358 9 879 171 | Fax +358 9 8791 7297 | www.basware.com
basware
Financial statement release
January 24, 2013
Major shareholders, December 31, 2012
| Shares | % | ||
|---|---|---|---|
| 1. | Ilmarinen Mutual Pension Insurance Company | 1 471 407 | 11.4 |
| 2. | Sihvo, Ilkka | 885 300 | 6.8 |
| 3. | Eräkangas, Kirsi | 827 300 | 6.4 |
| Eräkangas, Kirsi | 576 900 | 4.5 | |
| Eräkangas, Lotta | 250 400 | 1.9 | |
| 4. | Vaajoensuu, Hannu | 673 800 | 5.2 |
| Havacment Oy | 266 500 | 2.1 | |
| Vaajoensuu, Hannu | 323 500 | 2.5 | |
| Vaajoensuu, Matias | 83 800 | 0.6 | |
| 5. | Perttunen, Sakari | 665 900 | 5.1 |
| 6. | Varma Mutual Pension Insurance Company | 530 000 | 4.1 |
| 7. | Fondita Nordic Micro Cap Placeringsf | 460 000 | 3.6 |
| 8. | Nordea Nordic Small Cap Fund | 387 585 | 3.0 |
| 9. | OP-Finland. Small Cap | 377 923 | 2.9 |
| 10. | Pensionsförsäkringsaktiebolaget Veritas | 368 608 | 2.9 |
| 11. | Pöllänen, Antti | 299 023 | 2.3 |
| 12. | OP-Focus Fund (Non-UCITS) | 292 887 | 2.3 |
| 13. | Aktia Capital Fund | 273 313 | 2.1 |
| 14. | State Pension Fund | 256 000 | 2.0 |
| 15. | Op-Delta Fund | 232 952 | 1.8 |
| 16. | Sr Danske Invest Suomi Kasvuosake | 175 776 | 1.4 |
| 17. | Perttunen, Meimi | 175 400 | 1.4 |
| 18. | Ahonen, Asko | 168 736 | 1.3 |
| 19. | Fim Fenno Fund | 162 554 | 1.3 |
| 20. | Fim Forte Fund | 150 000 | 1.2 |
| 20 largest shareholders total | 8 834 464 | 68.3 | |
| Nominee registered shares total | 1 453 731 | 11.2 | |
| Others | 2 643 034 | 20.4 | |
| Total | 12 931 229 | 100.0 |
Basware Corporation | Linnoitustie 2, Cello, P.O. Box 97, FI-02601 Espoo, Finland | Tel. +358 9 879 171 | Fax +358 9 8791 7297 | www.basware.com
basware
Financial statement release
January 24, 2013
Distribution by sector, December 31, 2012
| Number of holders | Number of shares | Votes, % | |
|---|---|---|---|
| Private companies | 497 | 832 004 | 6.4 |
| Financial and insurance institutions | 23 | 2 781 678 | 21.5 |
| Public sector institutions | 7 | 2 645 949 | 20.5 |
| Non-profit organizations | 36 | 361 368 | 2.8 |
| Households | 13 826 | 4 839 274 | 37.4 |
| Foreign | 42 | 17 225 | 0.1 |
| 14 431 | 11 477 498 | 88.8 | |
| Nominee-registered | 12 | 1 453 731 | 11.2 |
| Total | 14 443 | 12 931 229 | 100.0 |
Distribution of holdings by number of shares, December 31, 2012
| Number of shares | Number of holders | Number of shares | Votes, % |
|---|---|---|---|
| 1-100 | 12 121 | 282 635 | 2.2 |
| 101-1 000 | 2 045 | 613 024 | 4.7 |
| 1 001-10 000 | 221 | 562 003 | 4.3 |
| 10 001-100 000 | 30 | 1 342 818 | 10.4 |
| 100 001 + | 26 | 10 130 749 | 78.3 |
| Total | 14 443 | 12 931 229 | 100.0 |
Basware Corporation | Linnoitustie 2, Cello, P.O. Box 97, FI-02601 Espoo, Finland | Tel. +358 9 879 171 | Fax +358 9 8791 7297 | www.basware.com