Basware

Financial Statements 2011 - Seite 3

Transaction volume in 2011 was 20.8 million and the volume grew by 53.0 percent.
Recurring revenue (Automation Services and Maintenance) accounted for 48.9
percent of net sales.  The growth of recurring revenue improves the estimates in
the long run.

Operating profit was EUR 12 280 million and accounted for 11.4 percent of net
sales. Operating profit decreased by 8.9 percent. Operating profit includes a
restructuring provision of EUR 1 203 thousand due to streamlining measures,
during the fourth quarter. By making its operations more efficient, the company
increases its focus on the service business. Through streamlining measures
Basware seeks possibilities for further investments in growth markets outlined
in strategy.

Basware´s CEO Esa Tihilä about future outlook: "During 2012, the company will be
undergoing a strong transformation from a software company into a service
company, which will change our operating methods, solutions, and services. We
are targeting completely new customer groups through segmented customer care
model as well as through product and services offering.

Our strategic objective is to become the world´s leading e-invoice operator.
With the acquisition of a German e-Invoice operator in January 2012, we will be
able to complement our portfolio with innovative technology to transfer also
sales invoices into electronic format, which will also benefit our existing
customers worldwide and support our strategy."

Market outlook and operating environment

Market estimates released in January 2012 expect the software market to grow
6.2 percent globally (previous forecast 7.0%) and 8.0 percent in the U.S. in
2011 (forecast unchanged). The entire IT services market is expected to grow by
4.7 percent globally (previous estimate 6.0%) and by 6.8 percent in the U.S.
(previous estimate 6.0%) in 2012. According to research companies, the software
market is expected to grow at a rate of 7.0 percent globally, IT services by
5.6% and the IT market as a whole by 7.3 percent.

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 software still offer a competitive edge, thanks to new added value
products and the integrated offering consisting of services and products. The
next generation of solutions will improve the company´s competitiveness in the