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FINANCIAL
STATEMENTS
42
Stories Reports Financial statements Key figures Information for shareholders

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Financial statements ��������������������������������������������������������������������������������������������� 42
Report of the Board of Directors ��������������������������������������������������������������������� 44
Non-financial statement ������������������������������������������������������������������������������� 50
Consolidated Statement of Comprehensive Income (IFRS) ����������������������� 54
Consolidated Statement of Financial Position (IFRS) ��������������������������������� 55
Consolidated Statement of Cash Flows (IFRS) ���������������������������������������������� 57
Consolidated Statement of Changes in Equity (IFRS) ��������������������������������� 58
Notes to the Consolidated Financial Statements (IFRS) ���������������������������� 59
Parent Company Income Statement (FAS) ���������������������������������������������������� 93
Parent Company Statement of Financial Position (FAS) ���������������������������� 93
Parent Company Cash Flows (FAS) ������������������������������������������������������������������ 94
Notes to the Parent Company Financial Statements (FAS) ����������������������� 95
Auditor’s Report �������������������������������������������������������������������������������������������������� 104
Key figures ��������������������������������������������������������������������������������������������������������������� 108
Financial key figures ������������������������������������������������������������������������������������������� 108
Share indicators ������������������������������������������������������������������������������������������������ 109
Calculation of key indicators ������������������������������������������������������������������������� 110
Information for shareholders ������������������������������������������������������������������������������ 111
Share and shareholders ������������������������������������������������������������������������������������� 112
Information for shareholders ��������������������������������������������������������������������������� 114
Annual General Meeting 2022 �������������������������������������������������������������������� 114
Financial calendar 2022 ������������������������������������������������������������������������������� 114
Contact details for Investor Relations ������������������������������������������������������ 114
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REPORT OF THE BOARD OF DIRECTORS
FROM 2021
Basware offers the largest open business network in the world and is the global leader in provi-
ding networked purchase-to-pay solutions and e-invoicing services� Our technology empowers
organizations with 100% spend visibility by enabling the capture of all financial data across
procurement, finance, accounts payable and accounts receivable functions� Basware's solutions
play an important role in transitioning to a lower-carbon economy by enabling the digitalization
and automation of Purchase-to-Pay enterprise processes that rely on paper� Basware is a global
company doing business in more than 100 countries and is traded on Nasdaq Helsinki�
Basware’s results in 2021
Key figures
EUR THOUSAND 2021 2020 Change, %
Net sales 153,155 151,579 1�0
Cloud revenue 119,996 110,312 8�8
Cloud ARR order intake 17,064 19,250 -11�4
EBIT 7,144 4,667 53�1
EBITDA 22,828 20,207 13�0
Gearing, %
1
72�5 53�0 36�8
Cash and cash equivalents
1
31,060 40,461 -23�2
Cash flow from operating activities 20,435 25,252 -19�1
Earnings per share, diluted, EUR -0�99 -0�51 -93�7
Personnel
1
1,347 1,336 0�8
1
At the end of the period.
Net sales
NET SALES BY REVENUE TYPE,
EUR THOUSAND 2021 2020 Change, %
Cloud 119,996 110,312 8�8
Consulting 26,942 26,875 0�2
Maintenance, license and other 6,216 14,392 -56�8
Tota l 153,155 151,579 1.0
NET SALES BY CUSTOMER LOCATION,
EUR THOUSAND 2021 2020 Change, %
Americas 33,641 35,013 -3�9
Europe 54,767 52,176 5�0
Nordics 56,904 56,428 0�8
APAC 7,843 7,962 -1�5
Tota l 153,155 151,579 1.0
Basware’s net sales for the year 2021 amounted to EUR 153,155 thousand (EUR 151,579
thousand), an increase of 1�0 percent� This equated to 0�9 percent organic growth at constant
currencies�
In 2021 cloud revenues amounted to EUR 119,996 thousand (EUR 110,312 thousand), up by 8�8
percent, equating to 8�6 percent organic growth at constant currencies and accounted for 78
percent (73%) of net sales�
Consulting revenues amounted to EUR 26,942 thousand (EUR 26,875 thousand), an increase
of 0�2 percent, equating to 0�1 percent organic at constant currencies� Maintenance and license
revenues declined in line with expectations as Basware transitions customers to the cloud
and discontinues some of Basware’s legacy services� Maintenance, license and other revenues
amounted to EUR 6,216 thousand (EUR 14,392 thousand), a decrease of 56�8 percent� This
equated 57�1 percent organic decrease at constant currencies� The accelerated decline in
maintenance is due to end of life of some of Basware’s legacy on-premise products triggered on
January 1st 2021�
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ORDER INTAKE BY TYPE,
EUR THOUSAND 2021 2020 Change, %
New logo 6,045 6,065 -0�3
Expansion 8,378 9,357 -10�5
Transformation 2,641 3,828 -31�0
Tota l 17,064 19,250 -11.4
Cloud order intake
Americas accounted for 22�0 percent (23�1%), Europe 35�8 percent (34�4%), Nordics 37�2 percent
(37�2%) and Asia-Pacific area for 5�1 percent (5�3%) of total revenues� Basware’s net sales for the
full year 2021 from Americas was negatively impacted by the development of US dollar against
Euro� At constant currencies net sales from Americas in 2021 declined by 0�9 percent year on
year� A list of Basware Corporation's subsidiaries is in Note 25 of the Financial Statements�
Financial performance
EUR THOUSAND 2021 2020 Change, %
Net sales 153,155 151,579 1.0
Cost of sales -66,837 -65,941 1.4
Gross profit 86,317 85,638 0.8
Sales and marketing -38,286 -40,001 -4�3
Research and development -27,928 -25,930 7�7
General and administration -13,038 -14,096 -7�5
Total operating expenses -79,252 -80,027 -1.0
Other operating income and expenses 79 -944 N/A
EBIT 7,144 4,667 53�1
EBITDA 22,828 20,207 13.0
Basware’s profitability development was positive throughout the year� In 2021 Basware’s
operating profit was EUR 7,144 thousand (EUR 4,667 thousand), an increase of 53�1 percent�
In 2021, cost of sales amounted to EUR -66,837 thousand (EUR -65,941 thousand), an increase
of 1�4 percent�
Out of the total operating expenses, sales and marketing expenses decreased 4�3 percent,
research and development expenses increased 7�7 percent and general and administration
expenses decreased 7�5 percent in 2021� Sales and marketing costs reduced in comparison with
2020 due to lower labor costs and incentives� Research and Development expenses increased in
comparison to 2020 mainly due to a lower level of capitalization of R&D expenses, and a higher
amortization of previously capitalized expenses�
Basware’s loss before taxes was EUR -13,421 thousand (EUR -6,985 thousand) and loss for the
period EUR -14,233 thousand (EUR -7,329 thousand) in 2021� Finance income and expenses
amounted to EUR -20,565 thousand (EUR -11,652 thousand)� Finance expenses for 2021 were
negatively impacted by the refinancing related one-off expenses of EUR 11,210 thousand in the
third quarter 2021� Taxes impacted the result by EUR -812 thousand (EUR 345 thousand)�
Diluted earnings per share were EUR -0�99 (EUR -0�51)�
Basware’s cloud order intake for the year 2021 amounted to EUR 17,064 thousand (EUR 19,250
thousand), a decrease of 11�4 percent� This equated to 11�2 percent decline on an organic
constant currency basis� Full year order intake performance was impacted by uncertainty in
the business environment primarily caused by the pandemic� Based on the systematic actions
to improve sales execution throughout the year, order intake returned to growth in Q4 2021�
For the year 2021, order intake consisted of 35 percent new logo, 49 percent expansion, and 15
percent transformation order intake types� New logo means a new customer to Basware with
whom it does not have prior of significant business�
There will be a time lag before order intake is visible in net sales� Historically, around one
quarter of the full year’s new ARR order intake converts into revenues in the same year, with
roughly fifty to sixty percent converting to revenues in the following year and the remainder
thereafter�
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Adjusted operating result and adjusted EBITDA
EUR THOUSAND 2021 2020 Change, %
EBIT 7,144 4,667 53.1
Adjustments:
Acquisition, disposal and restructuring income (-)
and expenses (+) -75 -301 75�1
Efficiency related expenses 432 453 -4�6
Total adjustments 357 152 134.9
Adjusted EBIT 7,501 4,819 55.7
Depreciation and amortization 15,685 15,540 0�9
Adjusted EBITDA 23,186 20,359 13.9
% of net sales 15�1% 13�4%
Cash flows, financing and investments
Cash flows from operating activities were EUR 20,435 thousand (EUR 25,252 thousand)�
Basware’s cash and cash equivalents including short-term deposits were EUR 31,060 thousand
(EUR 40,461 thousand) at the end of the year� Cash balance decreased in comparison mainly
because of the refinancing related payments in the third quarter 2021�
Basware’s total assets on the balance sheet at the end of the year were EUR 220,720 thousand
(EUR 224,862 thousand)� Net cash flows from investments were EUR -13,408 thousand (EUR
-9,464 thousand) in 2021�
The equity ratio was 33�1 percent (36�7%) and gearing 72�5 percent (53�0%)� Gearing increased
because of lower cash balance and decreased equity driven by the loss for the period, both
attributable to the refinancing transaction as expected� The company’s interest-bearing liabili
-
ties excluding leasing liabilities EUR 71,402 thousand (EUR 68,837 thousand), of which current
liabilities accounted for EUR 1,175 thousand (EUR 2,173 thousand)� The return on investment was
4�3 percent (3�1%) and return on equity -18�3 percent (-8�3%)�
Research and development
In 2021 Basware’s research and development focused on meeting the global regulatory
compliance requirements for e-invoicing with Basware’s network offering, developing Artificial
Intelligence in SmartPDF AI solution, development of user experience in Basware Purchase
solution and improving the user environment in AP Pro solution�
The focus of Basware’s R&D activities is to strengthen the networked Purchase-to-Pay offering
by extending the business coverage and the underlying system intelligence with Artificial
Intelligence in addition to continuous development of an integrated user experience across the
individual business solutions�
In 2021 Basware’s research and development investments including capitalizations but excluding
amortizations were EUR 25,235 thousand (EUR 24,819 thousand)� Research and development
investments were 16�5 percent (16�4%) of net sales in 2021� A total of 237 (273) people worked
in research and development at the end of 2021�
Personnel
PERSONNEL BY AREA, ON AVERAGE 2021 2020 Change, %
Americas 98 106 -7� 6
Europe 380 373 1�9
Nordics 416 425 -2�3
APAC 446 430 3�7
Tota l 1,339 1,334 0.4
Basware employed 1,339 (1,334) people on average during 2021 and 1,347 (1,336) at the end of
2021� On 31 December 2021, 12�0 percent (13�6%) of the personnel worked in sales and marke
-
ting, 31�8 percent (33�2%) in R&D, production and products, 44�8 percent (42�4%) in consulting
and customer services and 11�4 percent (10�7%) in administration�
Information about salaries and employee benefits in Note 5 of the Financial Statements and
other employee related metrics in the section Non-financial statement�
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ANNOUNCEMENT DATE Shareholder Threshold Total holding, %
9 February Arrowgrass Master Fund Ltd Below 15% 14�3%
23 February Long Path Partners LP Over 10% 10�11%
15 April Arrowgrass Master Fund Ltd Below 10% 9�2%
20 July Arrowgrass Master Fund Ltd Below 5% 4�4%
Basware had 11,533 (11,864) shareholders at the end of 2021, including nominee-registers�
Nominee-registered holdings accounted for 54�1 percent (56�4%) of the total number of shares�
More information on Basware’s share and shareholders in sections Key figures and Information
for shareholders�
Share and shareholders
SHARE INDICATORS 2021 2020
Share price performance, EUR
- lowest price 28�25 15�66
- highest price 43�85 42�85
- average price 37� 43 29�58
- closing price 30�25 42�00
Market capitalization at end of period
1
, EUR 437,293,788 605,449,320
Number of shares
1
- at end of the period 14,455,993 14,415,460
- average during the period 14,445,824 14,407,595
- average during the period, diluted 14,580,596 14,638,935
Number of traded shares (share issue adjusted) in Nasdaq
Helsinki
4,162,965 4,817,685
% of average number of shares 28�6% 33�4%
Treasury shares held by the Company at end of the period 7,94 3 5,476
% of total shares 0�1% 0�0%
Share capital, EUR 3,528,368 3,528,368
Earnings per share, undiluted, EUR -0�99 -0�51
Earnings per share, diluted, EUR -0�99 -0�51
Adjusted earnings per share, undiluted, EUR -0�96 -0�50
Adjusted earnings per share, diluted, EUR -0�96 -0�50
Equity per share, EUR 5�06 5�73
Price per earnings (P/E) -30�70 -82�56
1
Excluding treasury shares
Flagging notifications in 2021
During 2021 Basware Corporation received the following notifications from major shareholders:
More information in the section Share indicators in the Financial statements and Information
for Shareholders� See also Remuneration report for information on Basware's share-based
incentive plans�
Annual General Meeting and authorizations of the Board of Directors
Basware Corporation’s Annual General Meeting 2021 was held on March 18, 2021� The Annual
General Meeting adopted the annual accounts for the financial period ending on 31 December
2020� The remuneration report was approved, and the members of the Board of Directors as
well as the CEO were discharged from liability for the financial period ending on 31 December
2020� The Annual General Meeting resolved in accordance with the proposal of the Board of
Directors that no dividend will be paid for the year 2020�
The Annual General Meeting decided the number of members of the Board of Directors to
be six� Mr� Ilkka Sihvo, Mr� Michael Ingelög, Mr� Daryl Rolley and Ms� Minna Smedsten were
re-elected as members of the Board of Directors, and Mr� Carl Farrell and Mr� Jonathan Meister
were elected as new members� The Board of Directors elected in its organizing meeting Michael
Ingelög as the Chairperson and Ilkka Sihvo as the Vice Chairperson of the Board of Directors�
Minna Smedsten was elected as the Chairperson of the Audit Committee and Carl Farrell,
Jonathan Meister and Michael Ingelög as its members� Ilkka Sihvo was elected as the Chairper
-
son of the Remuneration Committee and Daryl Rolley and Michael Ingelög as its members�
Ernst & Young Oy, Authorized Public Accounting Firm, was elected as the company's auditor�
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The Annual General Meeting decided to authorize the Board of Directors to decide on repurcha-
se of 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
1,446,000 company's own shares� The company's own shares shall be repurchased otherwise
than in proportion to the holdings of the shareholders by using the non-restricted equity
through trading on regulated market organized by Nasdaq Helsinki Ltd at the market price
prevailing at the time of acquisition� The repurchase authorization shall be valid for 18 months
and it shall revoke the previous authorizations for repurchasing the company’s own 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� A total maximum of 1,446,000 new shares may be issued
and/or company's own shares held by the company may be conveyed� The number of shares to
be issued to the company itself together with the shares repurchased by the company on basis
of the repurchase authorization shall be at the maximum of 1,446,000 shares� The subscripti
-
on price of the new shares and the consideration payable for the company’s own shares shall
be recorded under the invested non-restricted equity fund� The authorizations shall be valid
for 18 months�
On 18 March 2021 Basware announced a stock exchange release of the resolutions of the Annual
General Meeting� The resolutions from Annual General Meetings are available on Basware’s
investor website at https://investors.basware.com/en/governance/annual-general-meeting�
Changes in the Executive Team
On 23 March 2021 Basware announced that Chief Revenue Officer Paul Taylor has decided
to step down from Basware's Executive Team to take the role of Country Manager for United
Kingdom and Ireland� In March 2021, Basware also started the recruiting process of a new Chief
Revenue Officer� Basware's Chief Executive Officer Klaus Andersen acted as an interim Chief
Revenue Officer during the recruitment period� The changes were effective as of 1 April 2021�
On 24 June 2021 Basware announced that Chief Customer Officer Jussi Vasama has decided
to step down from Basware’s Executive Team� The changes were effective as of 24 June 2021�
Selected members of the senior management team within the Basware Services organization
assumed the responsibilities for Professional Services and Customer Support, reporting to Chief
Executive Officer, Klaus Andersen�
On 24 August 2021 Basware announced that Alwin Schauer has been appointed as the Chief
Revenue Officer of Basware and member of the Executive Team, reporting to Klaus Andersen,
Chief Executive Officer of Basware� Klaus Andersen continued as the company’s interim CRO
until Mr� Schauer started in his position on 1 September 2021�
Other events of the period
Loan arrangement with Macquarie Capital Principal Finance
On 12 July 2021 Basware announced that it has completed an amendment agreement of its debt
facility with Macquarie Principal Financing PTY Limited, effective 12 July 2021� As a result of the
improved terms, the Company will realize a cash benefit of minimum EUR 12 million over the
remaining duration of the Loan, compared with the original debt facility� The renegotiated Loan
reflects Basware’s improved financial performance and significantly decreases Basware’s cost
of debt� Under the amendment, the debt facility is upsized to a EUR 66 million senior secured
Loan which will be due September 2024 in line with the facility’s original maturity and has a
non-call of 24 months� The Loan amount of EUR 66 million consists of EUR 50 million related
to the original debt facility, EUR 11 million related to previously capitalized interest (PIK interest)
and EUR 5 million upsizing to enhance the Company’s overall liquidity position�
Share issue to the company itself without consideration
On 14 January 2021 Basware announced that The Board of Directors of Basware Corporation
has, pursuant to the share issue authorization granted to it by the Annual General Meeting held
on 4 June 2020, resolved on an issue of 43,000 new shares in the company to the company
itself without consideration� The new shares to be issued to the company will be used for
reward payments under the company's incentive programs� The new shares to be issued are
of the same class as the existing shares in the company� The total number of the company's
shares after the share issue was 14,463,936 shares, of which 48,476 shares in total was held by
the company�
Conveyances of Basware Corporation’s own shares
On 19 March 2021 Basware announced that The Board of Directors of Basware Corporation has
decided on 18 March 2021 on a directeds for the reward payment of Basware Corporation's
Performance Share Plan 2019-2020 and Matching Share Plan 2018-2020� In the share issue,
39,908 Basware Corporation shares were issued and conveyed without consideration to the
key persons participating in the plans according to the terms and conditions of the incentive
schemes� After the transfer of the shares, the company held a total of 8,568 own shares�
As a result of the share issue, the Board of Directors also decided upon the adjustment of
the number of shares that can be subscribed on the basis of the 1,000 freely transferable
warrants issued by the company originally to Bregal Milestone in March 2019 and subsequently
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transferred to Briarwood Chase Management LLC in October 2020� Following the adjustment
resolved on 18 March 2021, the warrants entitle their holder to subscribe for a total of 1,003,000
shares in the company (before this adjustment, 1,001,000 shares) at an adjusted subscription
price of EUR 29�7939 per share (before the adjustment, the subscription price per share was
EUR 29�8764)� To increase the number of shares that may be subscribed for with the warrants,
the Board of Directors exercised on 18 March 2021 the authorization granted by the Annual
General Meeting of shareholders held on 18 March 2021 by deciding upon issuance of special
rights that entitle their holder to subscribe for 2,000 new shares in the company� These
adjustments to the terms and conditions of the warrants became effective upon registration
with the Finnish Trade Register�
On 23 September 2021 Basware announced that The Board of Directors of Basware Corporation
has decided on 22 September 2021 a directed share issue for the reward payment of Basware
Corporation’s Restricted Share Plan 2020� In the share issue, 625 Basware Corporation shares
were issued and conveyed without consideration to the key persons participating in the plan
according to the terms and conditions of the plan� After the directed share issue, the company
held 7,943 own shares�
As a result of the share issue, the Board of Directors also decided upon the adjustment of
the subscription price to be utilized when subscribing the 1,000 freely transferable warrants
belonging to Briarwood Chase Management LLC� Following the adjustment, the warrants
entitle their holder to subscribe for a total of 1,003,000 shares in the company at an adjusted
subscription price of EUR 29�7926 per share (before the adjustment, the subscription price per
share was EUR 29�7939)�
Events after the period
There were no significant events after the period�
Strategy
Basware is a global market leader in networked Purchase-to-Pay with the largest open
e-invoicing network in the world� The market growth is estimated to be slightly over 8 percent
from 2022 onwards�
In 2021, the Purchase-to-Pay market that Basware addresses was estimated
to be worth EUR 4�3 billion and the market is expected to grow to EUR 6�2 million by 2025�
Purchase-to-Pay markets are driven by global megatrends such as digitalization and automation,
increased regulation, rapid technological development and sustainability� Basware is focused on
sustainable growth and profitability, increasing operational efficiency in the strategic business
and simplifying operations�
Basware’s key growth markets are US, UK, Germany and France, where the company sees the
greatest opportunity to win new customers� Each of Basware’s top 200 key customers brought
on average approximately EUR 330 thousand annual recurring cloud revenue in 2021� Through
add-on sales and geographical expansions, there is potential to increase the average revenue
from existing customers�
Once Basware wins a new customer they typically stay with the company for many years� In
2021 Basware’s gross renewal rate was 96 percent and net renewal rate was 104 percent� The
gross margin for cloud revenues in 2021 was 68 percent� Together these make the lifetime
value of customer contracts high� In 2021 Basware had a customer lifetime value to customer
acquisition cost ratio of approximately seven times�
Basware’s long-term ambition is to become the networked Purchase-to-Pay vendor of choice
for large global enterprises� Basware moves forward to its vision through six Must-Wins,
which define strategic priorities for the period 2020—2022� The Must-Wins relate to customer
satisfaction, project delivery capabilities, procurement solution, growing with partners, cloud
transformations and Network business� The first Must-Win relates to customer satisfaction,
which is a priority across all functions, from first contact to project delivery, products and
support� The second Must-Win is enhancing delivery capabilities internally and together with
partners to meet customer needs for continuous improvement and change agility� With the
number three Must-Win, Basware’s aim is to further strengthen its procurement solution and
entire Source-to-Pay offering through partnerships and open API architecture� For number
four, Basware aims to accelerate cloud growth through partnering� The fifth Must-Win battle
is to complete the last phase in customer cloud transformations and reallocate resources to
long-term strategic areas� Basware has identified accelerating its Network business as the sixth
Must-Win battle from 2021 onwards�
The second Must-Win Battle Delivery Capabilities was completed in 2021 and will be left out
from the Must-Win Battles, leaving five Must-Win Battles from 2022 onwards� Transformations
now and after, which was defined as the fifth Must-Win Battle for year 2021, is renamed to Ignite
Growth� With the Must-Win battle Ignite Growth Basware is focusing on accelerating growth in
its business as the cloud transformations for Basware’s clients have essentially been completed�
Ignite Growth will be effective from 2022 onwards�
Risks and uncertainty factors
Basware operates in a market where technological innovation plays a key role� While Basware is
recognized as a leader within its segments by independent analysts, it is critical that Basware
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continues to innovate and develop its offering� Basware invests in product development to
ensure the competitiveness of its product portfolio and good end-to-end quality, which impacts
customer satisfaction, customer retention and expansion�
Basware has a growth strategy with high net sales growth expectations for the cloud business�
Executing the strategy requires significant investments in sales and marketing and related resour
-
ces in addition to an optimized pricing model with efficient customer delivery� At the same time,
the industry transformation from an on-premise license-based business model to a SaaS model will
accelerate the decline of certain Basware revenue streams, including license sales and maintenance�
The transformation will also make consulting revenues more volatile� Until the transformation is
fully complete, this will act as a drag on Group net sales growth� The churn rate may increase as
Basware consolidates its product portfolio to focus on strategic high gross margin business�
Market disruptions such as consolidation of significant competitors, aggressive entries of new
competitors or emergence of disruptive technologies may be a risk to Basware’s position as a
market leader and to Basware’s market share�
The fact that more than 45 percent of the company’s sales are expected to come from non-euro
countries exposes the Group’s net sales growth to foreign exchange rate movements� In case there
is a significant movement of USD, GBP, NOK, SEK or AUD against the euro, reported net sales may
be affected� In addition, a proportion of Basware’s costs are denominated in INR and RON� Political
risks may have a negative effect on Basware� This includes the uncertainty around the status of the
UK in relation to the European Union which may have a negative impact on Basware’s business in
the UK, and additionally the uncertainty related to taxation and legislation in India which may have
a negative impact on Basware’s business in India�
Basware considers acquisitions as part of its strategy� Acquisitions entail risks, such as failure in
integrating acquisitions or in ensuring that the planned financial benefits and synergies of the
acquisitions materialize�
Basware’s biggest operational risks relate to service disruption which could be as a result of,
data centre failures, various data security threats and non-compliance risks related to Basware’s
solutions and services, the company’s activities or its employees’ behavior� Operational risks are
actively managed by continuous improvement in risk monitoring and protection practices, external
assessments as well as internal training of Basware’s personnel�
The Covid-19 pandemic may have an impact on the timing of organisations’ IT project decisions
and implementations and on the global volume of invoices sent and received� This may impact
Basware’s order intake, revenues, operating profit and cash flow� Basware has a business
continuity plan in place including extensive remote working capabilities across all functions,
however, should the Covid-19 situation materially affect employees’ ability to work, this may
disturb Basware’s ability to serve its customers�
Basware announced on May 2021 that the Basware quality management system has been
certified according to the International Organisation for Standardisation (ISO) 9001:2015
standard, the most widely recognised international quality management standard� In 2021,
Basware also started a project to certify its information security management system (ISMS)
according to ISO27001 standard�
Corporate governance statement
The Corporate Governance Statement is issued separately from the Report of Board of Direc-
tors� Basware Corporation's Corporate Governance Statement is available on the company's
investor website: https://investors.basware.com/en/governance/statements-and-policies�
Non-financial statement
Basware is a supplier of networked purchase-to-pay solutions and e-invoicing services; and has
the largest open business network in the world� Basware’s technology empowers organisations
with 100% spend visibility by enabling the capture of all financial data across procurement,
finance, accounts payable and accounts receivable functions� Basware operates globally and has
1,347 employees in 14 countries� Basware is committed to operating responsibly and sustainably,
helping customers move to paperless processes, fostering employee welfare and taking care of
cybersecurity and data privacy�
Social responsibility and respect for human rights
Employees are Basware’s most important resource� Basware unconditionally supports and
promotes human rights and is committed to act in accordance with the United Nations’
Universal Declaration of Human Rights and the United Nations’ Global Compact principles�
Basware complies with the standards of the International Labour Organization as well as
with all relevant local employment legislation� Basware does not tolerate in any context the
use of servitude, child labor, forced labor, human trafficking, or slavery in our operations in
any region we operate�
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2021 2020
Reported bribery or corruption incidents 0 0
Prevention of corruption and bribery
As part of Basware’s commitment to conducting its business in an honest and ethical manner,
Basware takes a zero-tolerance approach to bribery and corruption, and upholds all relevant
laws to countering bribery and corruption in all jurisdictions it operates in� Basware has an
Anti-Bribery and Corruption Policy, which sets out the responsibilities of Basware employees
in observing and upholding the company’s position on bribery and corruption and provides
guidance for Basware employees on how to recognize and deal with bribery and corruption
issues� The policy was reviewed and updated in 2020�
EMPLOYEES BY AGE GROUP 2021 2020
Under 25 5% 4%
25-34 35% 36%
35-44 35% 37%
45-54 18% 18%
Over 55 7% 6%
In addition, Basware has a global Code of Conduct that applies to all employees� The Code of
Conduct describes the ethical principles according to which Basware operates and expects its
suppliers and partners to operate� Code of Conduct training is mandatory for all employees�
EMPLOYEE METRICS 2021 2020
Women, of total employees 34% 32%
Women, of managers 30% 29%
Full-time employees 98% 98%
Permanent employees 99% 99%
Employees average years of service 5�5 5�5
Attrition rate 1 7�7% 7�1 %
CEO-to-employee pay ratio 5�97-to-1 6�19-to-1
Whistle-blowing practice
Basware encourages its employees to report any suspected misconduct related to Basware
operations immediately� Employees may contact their line manager or Human Resources team
for any concerns� Where the Employee prefers not to raise the issue with his/her line manager
or the Human Resources Team for any reason, they can contact Basware Whistleblowing
Committee, which will ensure that the identity of the person making the report will be confiden
-
tial and known only to the people necessary to ensure case is handled properly� Any Basware
employee who makes a whistleblowing report is protected from any repercussions, such as
dismissal or other forms of reprisal�
Cyber and information security
As a cloud-based service provider, Basware recognizes cyber and information security risks
related to its industry� Basware acknowledges responsibility to ensure confidentiality, integrity,
and availability of customers data and Basware’s information assets� Basware takes any threat
to its customers’ and its own information assets and data seriously and is continuously deve
-
loping processes and technologies to meet the requirements and mitigate any identified risks�
Information security risks are integrated into the company’s multi-disciplinary risk assessment�
Basware has an Information Security Management System (ISMS) to oversee the development
in the security domain� International standards and best practices are employed to structure
Basware information security policy� The ISMS and cybersecurity programs are regularly
enhanced to ensure that security policies and standards continuously follow evolving business
requirements, emerging cyber threats, and regulatory requirements�
2021 2020
Code of Conduct training completion rate 99% 100%
Basware’s ability to attract, retain and develop the right type of talent at all levels is critical for the
company’s success� People are employed based on the principle of equal opportunity and without
distinction to race, color, gender, religion, affiliation or origin� In 2021 Basware’s employees were of
34 different nationalities, of which three largest were Indian, Finnish and Romanian�
Basware organizes YourVoice employee engagement survey annually and follows up the outcome
with interactive employee sessions resulting in action points each year� In 2021 the survey had
a response rate of 93 percent� Survey results in questions measuring employee engagement
remained on par with the previous year’s level, while the other areas improved with three high
-
lights: feedback received from others, reward and recognition as well as career opportunities�
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Basware’s service control environments are externally audited annually by the ISAE 3402
standard, and the reports are available to customers upon request� Basware co-operates with
a leading security company to carry out penetration testing annually and manages potentially
identified threats accordingly� Basware has in place a Responsible Disclosure channel for
security researchers to report any found issues in Basware services�
Awareness training play a key role in assuring security� Employees are regularly educated through
mandatory Global Security e-learning for all employees� In 2021 an extensive update to the internal
Security e-learning was completed and a continuous gamified phishing training service was
introduced for all employees protecting the information of Basware and its’ customers�
Data privacy
Basware is committed to data privacy compliance across its operations� This means that
Basware processes personal data of its employees, customers and partners with due care and
in accordance with the Global Data Protection Regulation (GDPR) and other applicable data
protection laws�
Basware conducts an extensive data privacy program, which is led by the Global Data Protection
Officer (DPO) and reviewed within the Privacy Steering Committee� The program identifies
personal data processing activities, maintains the mandatory privacy process register,
performs impact assessments, builds compliance documentation, and follows up on compliance
improvement actions� As part of the data privacy program, Basware performs specific impact
assessments to ensure that its transfer of personal data from the EU to its affiliates and
subcontractors outside the EU is compliant with the GDPR� These assessments are performed
based by the Schrems II judgment of the EU Court of Justice (2020) and related recommenda
-
tions from the EU Data Protection Board (2021)�
Basware also ensures that employees who process personal data are trained to comply with the
privacy policy and guidelines�
Environmental responsibility
Basware’s corporate environmental responsibility is incorporated into the company’s operations,
including the company’s Code of Conduct� In its day-to-day activities, Basware complies with
all applicable environmental laws and regulations and expects all employees, suppliers and
partners to comply with all relevant legal and industry-specific environmental requirements�
Basware’s main material environmental challenges relate to energy consumption at their office
locations, business travel and responsible commuting� Basware tracks its greenhouse gas
emissions annually and reports them to CDP� Basware has committed to reduce its emissions
footprint and to improve the energy efficiency of its office locations� Basware set an emission
target for 2016—2020 on its office-based CO
2
emissions per employee to decrease with 20%�
The target was clearly reached, and CO
2
emissions dropped with 70% during the period�
Covid-19 had a significant impact on reduced CO
2
emissions for Basware� In addition, the
company executed emission reduction initiatives in its’ offices globally� Basware is committed to
setting new energy targets for mid-term and to communicate on the progress made in energy
saving through its external reporting and annual CDP survey�
Basware has made good progress in reducing its emissions from business travel since 2018�
Basware strives to continue the work in reducing the energy and fuel consumption levels also
in the long-term, by implementing responsible business travel guidelines and monitoring the
business travel of the employees� Basware aims to reduce the need for business travel by using
collaborative technologies and online meeting tools�
The direct, positive environmental impact of Basware’s services is estimated to be moderate
due to the nature of Basware’s business� Basware’s digital solutions and services provide
Basware’s customers with environmental benefits by automating their financial processes by
provision of cloud-based software and reducing the use of paper� By moving from paper invoices
into electronic invoices, the savings from logistics of sending the paper to a preferred location
can also be achieved� Basware is working towards a clearer understanding of the environmental
impacts of its solutions and services and is committed to transparency in communicating about
the environmental benefits and burdens of its business�
2021 2020 Change, %
Air travel emissions, CO
2
e ton 89 669 -87%
Sustainable activities of Basware based on EU Taxonomy
Basware Corporation has analyzed its economic activity according to Taxonomy Regulation of
European Union (EU 2020/852) and related Technical Screening Criteria for climate change
mitigation and climate change adaptation� Basware's economic activities can be identified
from the regulation� Basware Corporation’s activities are eligible according to the Technical
Screening Criteria for climate change mitigation in section 8�2� “Data-driven solutions for GHG
emissions reductions”�
Basware’s eligible activities cover the Purchase-to-Pay process by which Basware’s customers
can reduce their CO
2
emissions and get insight into their GHG emissions from their finance
processes when needed� The eligible activities represent 82% of total net sales of Basware�
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Taxonomy-eligible Capital Expenditure at Basware includes mainly research and development
of eligible activities and facility improvements to some extent, which amounts to 95% of total
CapEx� Taxonomy-eligible Operating Expenditure includes mainly research and development
costs and purchases of taxonomy-aligned activities to some extent� Share of eligible activities is
75% of the OpEx as defined in Taxonomy Regulation�
Due to the nature of Basware’s Cloud business, the capital expenditure and operational expendi
-
ture for research and development is relatively high, and this has impacted the reported figures
based on EU Taxonomy Regulation�
Basware’s eligible activities will be screened for taxonomy-alignment during the year 2022�
Guidance for 2022
Basware guides the following for the full year 2022:
• Order Intake to grow between 15 and 35 percent at organic constant currencies
• Net sales to grow between 3 and 6 percent at organic constant currencies
• EBIT between EUR 7 and 10 million
Constant currencies mean that the effects of any changes in currencies are eliminated by
calculating the figures for the period using comparable period’s exchange rates� Organic means
that the figures are adjusted to remove the effects of any acquisitions or disposals within the
past 12 months�
Board of Directors’ proposal for dividend
On 31 December 2021, the Group’s parent company’s distributable funds were EUR 12,533
thousand� The Board of Directors proposes to the Annual General Meeting that no dividend be
paid for 2021�
Basware Corporation’s Annual General Meeting is planned to be held on 22 March 2022�
Espoo, Finland, on Wednesday, 2 February 2022
BASWARE CORPORATION
Board of Directors
EU TAXONOMY KPI 2021
Net sales 82%
Capital Expenditure 95%
Operating Expenditure 75%
Future outlook
Themes affecting revenues and EBIT
Basware considers the following key drivers affecting net sales and EBIT in 2022:
• Gradual improvements in the business environment throughout the year
• Gradual improvements in demand generation and sales execution throughout the year, and
the timing in the ramp-up of Sales and Marketing capacity and spending
• Cloud revenues impacted by cloud order intake volume and timing, churn and network
transaction volume driven revenues� Approximately fifty percent of Basware’s network
transaction services revenues are subscription based�
• Consulting services revenue is driven primarily by new logo wins, expansion sales, services
adoption and efficiency projects for existing customers, as well as the level of partner
delivered implementations
• Revenues from maintenance and license will continue to decline approximately at the same
rate as in 2021
• Improvements in scalability and operational efficiency are expected to continue
• Inflation and labor costs
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CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (IFRS)
EUR THOUSAND Notes 1.1.-31.12.2021 1.1.-31.12.2020
NET SALES 2 153,155 151,579
Cost of sales -66,837 -65,941
GROSS PROFIT 86,317 85,638
Sales and marketing -38,286 -40,001
Research and development -27,928 -25,930
General and administration -13,038 -14,096
Total operating expenses -79,252 -80,027
Other operating income 4 75 309
Other operating expenses 6 3 -1,253
OPERATING PROFIT/LOSS 7,144 4,667
Finance income 7 832 619
Finance expenses 7 -21,398 -12,271
PROFIT/LOSS BEFORE TAX -13,421 -6,985
Income tax 8 -812 -345
PROFIT/LOSS FOR THE PERIOD -14,233 -7,329
EUR THOUSAND Notes 1.1.-31.12.2021 1.1.-31.12.2020
Other comprehensive income
Other comprehensive income that will not be
reclassified to profit or loss
Remeasurement of employee benefits 17 -33 -5
Other comprehensive income that may be
reclassified subsequently to profit or loss
Exchange differences on translating foreign
operations 4,977 -4,964
Cash flow hedges 18 808 -435
Income tax relating to components of other
comprehensive income
8 -131 112
Other comprehensive income for the year net of tax 5,621 -5,292
TOTAL COMPREHENSIVE INCOME -8,612 -12,621
Profit/loss attributable to:
Equity holders of the parent company -14,233 -7,329
Total comprehensive income attributable to:
Equity holders of the parent company -8,612 -12,621
Earnings per share
undiluted, EUR 9 -0.99 -0.51
diluted, EUR 9 -0.99-0.51
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CONSOLIDATED STATEMENT OF FINANCIAL POSITION (IFRS)
EUR THOUSAND Notes 31.12.2021 31.12.2020
ASSETS
Non-current assets
Intangible assets 10 38,786 41,927
Goodwill 3 80,257 76,676
Tangible assets 11 1,366 1,023
Right-of-use assets 11 11,470 14,322
Non-current financial assets 14 13 13
Other receivables 15 8,133 3,541
Contract assets 2 0 6
Deferred tax assets 8 11,673 10,592
Non-current assets 151,697 148,101
Current assets
Trade receivables 15 27,407 26,602
Other receivables 15 9,471 8,714
Contract assets 2 639 818
Income tax receivables 8 445 166
Cash and cash equivalents 16 31,060 40,461
Current assets 69,023 76,761
TOTAL ASSETS 220,720 224,862
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CONSOLIDATED STATEMENT OF FINANCIAL POSITION (IFRS)
EUR THOUSAND Notes 31.12.2021 31.12.2020
EQUITY AND LIABILITIES
Shareholder's equity
Share capital 19 3,528 3,528
Share premium account 19 1,187 1,187
Treasury shares 19 0 0
Invested unrestricted equity fund 19 110,290 110,290
Other reserves 19 1,006 289
Translation differences 19 -8,205 -13,137
Retained earnings 19 -34,843 -19,600
Shareholders' equity 72,963 82,557
Non-current liabilities
Deferred tax liabilities 8 5,960 5,071
Interest-bearing liabilities 22 70,227 66,665
Leasing liabilities, interest-bearing 22 8,986 11,647
Contract liabilities 2 2,133 2,791
Liabilities from employee benefits 17 509 388
Non-current liabilities 87,814 86,562
Current liabilities
Interest-bearing liabilities 22 1,175 2,173
Leasing liabilities, interest-bearing 22 3,560 3,727
Trade payables and other payables 20 34,930 30,470
Contract liabilities 2 19,965 19,177
Income tax liabilities 8 313 196
Current provisions 21 0 0
Current liabilities 59,943 55,743
TOTAL EQUITY AND LIABILITIES 220,720 224,862
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CONSOLIDATED STATEMENT OF CASH FLOWS (IFRS)
EUR THOUSAND 1.1.-31.12.2021 1.1.-31.12.2020
Cash flows from operating activities
Profit/loss for the period -14,233 -7,329
Adjustments for profit:
Depreciation and amortisation 15,685 15,540
Unrealised foreign exchange gains and losses 310 690
Financial income and expenses 20,217 11,068
Tax on income from operations 812 345
Other adjustments -512 1,566
Total adjustments 36,513 29,208
Changes in working capital:
Increase (-) / Decrease (+) in trade and other receivables 749 810
Increase (+) / Decrease (-) in trade and other payables 2,807 5,069
Increase (+) / Decrease (-) in provisions 0 -211
Total changes in working capital 3,556 5,668
Financial items in operating activities -3,899 -1,301
Income taxes paid (-) / received (+) -1,502 -994
Cash flows from operating activities 20,435 25,252
EUR THOUSAND 1.1.-31.12.2021 1.1.-31.12.2020
Cash flows used in investing activities
Purchase of tangible and intangible assets -8,441 -9,470
Net proceeds from sale of tangible and intangible assets 33 7
Movements in short-term deposits and fixes deposits -5,000 0
Cash flows from investing activities -13,408 -9,464
Cash flows from financing activities
Proceeds from current borrowings 0 176
Repayment of current borrowings -1,996 -1,996
Payment related to financing -9,886 0
Payment of lease liabilities -4,267 -4,257
Cash flows from financing activities -16,149 -6,076
Net change in cash and cash equivalents -9,122 9,712
Cash and cash equivalents at the beginning of period 40,461 31,672
Net foreign exchange difference -279 -922
Cash and cash equivalents at the end of period 31,060 40,461
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CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (IFRS)
EUR THOUSAND Share capital
Share premium
account
Treasury
shares
Invested
unrestricted
equity Other reserves
Translation
differences
Retained
earnings Total
SHAREHOLDERS’ EQUITY Jan. 1, 2021 3,528 1,187 0 110,290 289 -13,137 -19,600 82,557
Comprehensive income 4,932 -14,229 -9,297
Share based payments -982 -982
Defined benefit plans -33 -33
Cash flow hedges 717 717
SHAREHOLDERS' EQUITY Dec. 31, 2021 3,528 1,187 0 110,290 1,006 -8,205 -34,843 72,963
EUR THOUSAND Share capital
Share premium
account
Treasury
shares
Invested
unrestricted
equity Other reserves
Translation
differences
Retained
earnings Total
SHAREHOLDERS’ EQUITY Jan. 1, 2020 3,528 1,187 -98 110,388 653 -8,226 -13,347 94,086
Comprehensive income -4,912 -7,340 -12,253
Share based payments 98 -98 1,092 1,092
Defined benefit plans -5 -5
Cash flow hedges -363 -363
SHAREHOLDERS' EQUITY Dec. 31, 2020 3,528 1,187 0 110,290 289 -13,137 -19,600 82,557
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NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS (IFRS)
Basic information of the group
Basware Corporation is a leading supplier of e-Invoicing and Purchase-to-pay solutions� Parent
company Basware Oyj is a public Finnish company founded under Finnish law� Business ID of
Basware Oyj is 0592542-4 and company's domicile is Espoo, Finland� Basware Corporation and
its subsidiaries form the Basware Group ("Basware" or "the Group")� The shares of the parent
company Basware Corporation have been listed on NASDAQ Helsinki Ltd� since 2000�
The consolidated financial statements for the year ended December 31, 2021 were authorized
for issue in accordance with a resolution of the Board of directors on February 2, 2022�
Shareholders may adopt or reject the financial statements at the Annual General Meeting�
Basware’s financial statements, Board of Directors’ report as well as the Auditor’s report are
available on the Internet at https://investors.basware.com/en or parent company's head
office at Linnoitustie 2, 02601 Espoo�
1. Accounting principles
Basis of preparation
Basware’s consolidated financial statements have been prepared according to the International
Financial Reporting Standards (IFRS), approved for use in EU countries, in accordance with the
IAS and IFRS standards, as well as SIC and IFRIC interpretations valid on December 31, 2021�
The Group’s Financial Statements are presented in euros, which is the primary and reporting
currency of the Group's parent company, and they are based on acquisition costs unless other
-
wise stated in the accounting principles� The amounts presented in the financial statements are
rounded, so the sum of individual figures may differ from the sum reported�
New and revised standards and interpretations
As of January 1, 2021, the Group has applied the following new and revised standards and
interpretations which did not materially impact Group reporting:
• Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16 Interest Rate Benchmark Reform
– Phase 2 (Effective for annual periods beginning on or after January 1, 2021)� On 27 August
2020, the IASB published Interest Rate Benchmark Reform – Phase 2, Amendments to IFRS
9, IAS 39, IFRS 7, IFRS 4 and IFRS 16� The amendments provide temporary reliefs which
address the financial reporting effects when an interbank offered rate (IBOR) is replaced
with an alternative nearly risk-free interest rate (RFR)� The amendments had no impact on
the Group's financial statements�
• Configuration or Customisation Costs in a Cloud Computing Arrangement (IAS 38 Intangible
Assets)� In April 2021, IFRS Interpretations Committee published their final agenda decision
on the accounting of configuration and customization costs in a cloud computing arrange
-
ment (IAS 38 Intangible Assets)� In this agenda decision, the Committee considered when
an intangible asset can be recognized in relation to configuration and customization of an
application software� As the IFRIC agenda decisions do not have a date when they enter into
force, they are expected to be applied as soon as possible� Basware has cloud computing
arrangements and has analysed whether this agenda decision has an impact on the accoun
-
ting principles related to costs in implementing cloud computing arrangements� As a result
of the analysis, it was concluded that the IFRIC agenda decision has an impact on the earlier
accounting treatment related to costs in cloud computing arrangements� As an outcome of
the analysis, Basware has expensed cloud computing related costs which had a minor impact
during the fourth quarter�
Amendments that will enter into force during the financial year 2022 or later
In addition to the standards and interpretations presented in the financial statements for 2021,
the Group will adopt the following standards, interpretations and amendments to standards
published by the IASB during financial periods beginning on or after January 1, 2022� The Group
will adopt each standard on the effective date, or if the effective date is not the first day of a
reporting period, as of the beginning of the following reporting period, provided that they are
approved by the EU�
• Amendments to IFRS3 Business Combinations - Reference to the Conceptual Framework
(Effective for annual periods beginning on or after 1 January 2022)� The amendments are
intended to replace a reference to a previous version of the IASB’s Conceptual Framework
(the 1989 Framework) with a reference to the current version issued in March 2018 (the
Conceptual Framework) without significantly changing its requirements� According to
the Group's current estimate, the amendments will have no impact on the Group's future
financial statements, and it is continuing its assessment of the impact of the amendments�
• Amendments to IAS 37 Onerous Contracts – Costs of Fulfilling a Contract (Effective for
annual periods beginning on or after 1 January 2022)� In May 2020, the IASB issued
amendments to IAS 37 Provisions, Contingent Liabilities and Contingent Assets to specify
which costs an entity needs to include when assessing whether a contract is onerous or
loss-making� According to the Group's current estimate, the amendments will have no impact
on the Group's future financial statements, and it is continuing its assessment of the impact
of the amendments�

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• Amendments to IAS 16 Property, Plant and Equipment: Proceeds before Intended Use –
Amendments to IAS 16 (Effective for annual periods beginning on or after 1 January 2022)�
The amendment prohibits entities from deducting from the cost of an item of property,
plant and equipment (PP&E), any proceeds of the sale of items produced while bringing that
asset to the location and condition necessary for it to be capable of operating in the manner
intended by management� Instead, an entity recognises the proceeds from selling such items,
and the costs of producing those items, in profit or loss� According to the Group's current
estimate, the amendments will have no impact on the Group's future financial statements,
and it is continuing its assessment of the impact of the amendments�
• IFRS 9 Financial Instruments – Fees in the ’10 per cent’ test for derecognition of financial
liabilities: As part of its 2018-2020 annual improvements to IFRS standards process the IASB
issued amendment to IFRS 9� The amendment clarifies the fees that an entity includes when
assessing whether the terms of a new or modified financial liability are substantially different
from the terms of the original financial liability� These fees include only those paid or received
between the borrower and the lender, including fees paid or received by either the borrower
or lender on the other’s behalf� An entity applies the amendment to financial liabilities that
are modified or exchanged on or after the beginning of the annual reporting period in which
the entity first applies the amendment� The amendment is effective for annual reporting
periods beginning on or after 1 January 2022 with earlier adoption permitted� The Group will
apply the amendments to financial liabilities that are modified or exchanged on or after the
beginning of the annual reporting period in which the entity first applies the amendment� The
amendments are not expected to have a material impact on the Group�
• Definition of Accounting Estimates - Amendments to IAS 8: In February 2021, the IASB issued
amendments to IAS 8, in which it introduces a definition of ‘accounting estimates’� The
amendments clarify the distinction between changes in accounting estimates and changes in
accounting policies and the correction of errors� Also, they clarify how entities use measure
-
ment techniques and inputs to develop accounting estimates� The amendments are effective
for annual reporting periods beginning on or after 1 January 2023 and apply to changes in
accounting policies and changes in accounting estimates that occur on or after the start of
that period� Earlier application is permitted as long as this fact is disclosed� The amendments
are not expected to have a material impact on the Group�
• Disclosure of Accounting Policies - Amendments to IAS 1 and IFRS Practice Statement 2:
In February 2021, the IASB issued amendments to IAS 1 and IFRS Practice Statement 2
Making Materiality Judgements, in which it provides guidance and examples to help entities
apply materiality judgements to accounting policy disclosures� The amendments aim to
help entities provide accounting policy disclosures that are more useful by replacing the
requirement for entities to disclose their ‘significant’ accounting policies with a requirement
to disclose their ‘material’ accounting policies and adding guidance on how entities apply the
concept of materiality in making decisions about accounting policy disclosures� The amend
-
ments to IAS 1 are applicable for annual periods beginning on or after 1 January 2023 with
earlier application permitted� Since the amendments to the Practice Statement 2 provide
non-mandatory guidance on the application of the definition of material to accounting policy
information, an effective date for these amendments is not necessary� The Group is currently
assessing the impact of the amendments to determine the impact they will have on the
Group’s accounting policy disclosures�
Basis of consolidation
The consolidated financial statements comprise the parent company Basware Corporation and
the subsidiaries controlled by it at the end of reporting period� Control is achieved when the
Group is exposed, or has rights, to variable returns from its involvement with the investee and
has the ability to affect those returns through its power over the investee� Being in control me
-
ans the power to govern the financial and operating policies of the company to obtain benefits
from its activities� The subsidiaries have been included in the Group financial statements as
of the acquisition date� Intra-group holding is eliminated using the acquisition cost method�
Acquired companies are accounted for using the purchase method according to which the
assets and liabilities of the acquired company are measured at their fair value when it has been
possible to determine the value reliably� Deferred taxes of the acquisition cost adjustments are
recognized according to the valid tax rate and the remainder is recognized as goodwill on the
balance sheet� When circumstances indicate that there are changes in elements of control the
consolidation is re-assessed�
Intra-group business transactions, internal liabilities and receivables, and internal profit
distribution are eliminated in the Group financial statements�
Transactions in foreign currencies
Transactions in foreign currencies are recorded in the operating currency at the approximate
exchange rates prevailing at the transaction dates� Monetary items in foreign currencies have
been translated into the operating currency using the exchange rates at the end of the repor
-
ting period� Non-monetary items denominated in foreign currencies are carried at the exchange
rate at the date of the transaction�
In the Group financial statements, the income statements of foreign subsidiaries are translated
into euros at the average rate for the financial period and balance sheets at the exchange
rate of the balance sheet date� Average rate difference due to different exchange rates on the
statement of comprehensive income and balance sheet are entered in other comprehensive
income� Translation differences arising from the elimination of foreign subsidiaries and trans
-
lation of equity items accumulated after the acquisition are entered in other comprehensive
income� Foreign currency gains and losses from monetary items part of the net investment in
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a foreign unit are recognized in other comprehensive income and entered on the statement of
comprehensive income when the foreign unit is divested�
Segment information
Basware reports one operating segment� The reported segment is comprised of the entire
Group, and the segment figures are consistent with the Group figures�
Entity-wide disclosures are presented in Note 2 and 13�
Government grants
Government grants are recognized when there is reasonable assurance that the grant will be
received� The grants received are recognized as offsetting items of the expenses incurred� When
the grant relates to capitalized R&D projects it will reduce the carrying amount of the asset, and
they are recognized in profit and loss by way of lower depreciation charge over the useful life of
the intangible asset�
Research and development costs
Research expenses are booked as an expense as they are incurred� Development expenditures
on an individual project are recognized as an intangible asset when the Group can demonstrate:
• The technical feasibility of completing the intangible asset so that the asset will be available
for use or sale�
• Its intention to complete and its ability and intention to use or sell the asset�
• How the asset will generate future economic benefits�
• The availability of resources to complete the asset�
• The ability to measure reliably the expenditure during development�
Costs related to the adoption of new technology or development of a new generation of pro-
ducts are capitalized and recognized and amortized over the useful life of 3–5 years� In determi-
ning the useful life, the obsolescence of technology and the typical life cycle of products in the
industry are taken into consideration� Amortization begins when development is complete, the
asset is available for use and the product is ready for commercial utilization� Maintenance of
existing products and minor enhancements are expensed when they are incurred� Government
grants related to research and development are recognized through profit or loss in the periods
during which the corresponding costs are recognized as expenses�
Accounting principles requiring management’s judgement and key uncertainties
relating to the use of estimates
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�
More information on the most significant items requiring management’s judgement:
Goodwill (Note 3)
Development expenses (Note 10)
Leases (Note 12)
Trade receivables (Note 15)
Deferred tax assets (Note 8)
Share-based payments (Note 5)
Financial risk management (Note 18)
Warrants (Note 19)
Alternative performance measures
Basware presents the following financial measures to supplement its Consolidated Financial
Statements which are prepared in accordance with IFRS� These measures are designed to
measure growth and provide insight into the company’s underlying operational performance�
The Group has applied the recent guidance from ESMA (the European Securities and Markets
Authority) on Alternative Performance Measures which is applicable as of July 3, 2016 and
defined alternative performance measures as follows�
Cloud revenue includes net sales from SaaS and other subscription revenues, transactions
services and financing services excluding alliance fees�
Organic revenue growth is calculated by comparing net sales between comparison periods in
constant currencies excluding alliance fees as well as net sales from acquisitions and disposals
that have taken place in the past 12 months�
Net sales in constant currencies is calculated by eliminating the impact of exchange rate
fluctuations by calculating the net sales for the comparable period by using the current
period’s exchange rates�
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Gross investments are total investments made to non-current assets including acquisitions and
capitalized research and development costs�
Other capitalized expenditure consists of investments in property, plant and equipment and
intangible assets excluding acquisitions and capitalized research and development costs�
EBITDA is calculated as operating result plus depreciation and amortization�
Adjusted EBITDA is calculated from EBITDA excluding any adjustments related to alliance
fees, acquisitions and disposals, restructuring and efficiency measures, impairment losses and
litigation fees and settlements�
Adjusted operating result (Adjusted EBIT) is calculated from operating result excluding any
adjustments related to alliance fees, acquisitions and disposals, restructuring and efficiency
measures, impairment losses and litigation fees and settlements�
Adjusted earnings per share (Adjusted EPS) is calculated by excluding from the profit/loss any
adjustments related to alliance fees, acquisitions and disposals, restructuring and efficiency
measures, impairment losses and litigation fees and settlements�
Annual recurring revenue gross order intake is calculated by summing the total order intake in
the period expressed as an annual contract value� For cloud order intake this includes all SaaS
and Network recurring revenues including transaction revenues� Gross order intake covers
new cloud customers, add-ons and renewal uplifts but excludes churn� There will be a time lag
before this order intake is visible in net sales�
Free cash flow metric is defined as EBITDA minus capitalizations, total debt service costs, tax
and payment of lease liabilities, and excluding the share part of share-based compensation and
any impact from acquisitions or disposals�
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2. Revenue and contract balances
Accounting principles
Net sales
Net sales are presented net of discounts and exchange rate differences of foreign
currency sales�
Revenue recognition
Basware reports net sales by type� Net sales by type is divided into two groups: cloud
and non-cloud revenue� Cloud revenue consists of net sales from SaaS and other
subscription types and transaction revenue and non-cloud revenue includes net sales
from licences, maintenance and consulting� SaaS and transaction services are sold
together with consulting services and e-invoicing services include also work related to
set-up activities which are charged separately as Start up fee�
IFRS 15 Revenue from Contracts with Customers is based on the principle that sales
are recognized when the control of the goods or service is transferred to the customer�
According to IFRS 15 the contract qualifies as a customer contract when each party's
general and specific rights and obligations are described, contract is approved by
the parties, each party's enforecable rights and obligations exists, the contract has
commercial substance and it is probable that the consideration to which the entity is
entitled to in exchange for the goods or services will be collected� Group does not have
a significant financing components in its contracts with customers or sale with a right
of return�
Basware revenue for different revenue types is recognized over time except for
licenses which is recognized at a point in time� SaaS and transaction service fees are
fixed and are invoiced on a monthly or annual basis, or monthly based on user and
transaction volumes� Both fees are recognized on a monthly basis over the term of
the contract� Revenue from set up activities are deferred and recognized over time
throughout the contract term�
Revenue from the license sales is recognized when contractual criteria of IFRS 15
has been fulfilled and when license has been delivered to the customer� Maintenance
services which includes new version releases and customer support are recognized
over the contract period�
Revenue of professional services are recognized during the reporting period in
which service is provided� Revenue of fixed-price consulting projects are recognized
as revenue and expenditure on the basis of the percentage of completion when the
outcome of the project can be reliably estimated� If the resulting costs and recognized
profits exceed the amount invoiced for the transaction, the difference is presented in
“contract assets” on the balance sheet� If the resulting costs and recognized profits
are lower the invoicing for the transaction, the difference is presented in “contract
liabilities” on the balance sheet� When it is likely that the total costs required for
completing the project exceed the total revenue from the transaction, the expected
loss is recognized as an expense immediately�
Basware reports geographical areas Americas, Europe, Nordics and APAC� Americas
includes business operations in North and South America� Europe includes operations
in Europe and Russia, excluding the Nordic countries (Denmark, Finland, Norway and
Sweden), which are reported separately� APAC includes operations in Asia and the
Pacific region�
EUR THOUSAND
Timing of revenue
recognition 1.1.-31.12.2021 1.1.-31.12.2020
Cloud Revenue
SaaS Over time 65,227 58,344
Transaction services Over time 49,844 47,272
Other cloud revenue Over time 4,926 4,696
Cloud Revenue total 119,996 110,312
Non-Cloud Revenue
Maintenance Over time 6,051 14,687
License sales At a point in time 136 348
Consulting services Over time 26,942 26,875
Other non-cloud revenue Over time 30 -644
Non-Cloud Revenue Total 33,158 41,267
Group total 153,155 151,579
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Net sales by type

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EUR THOUSAND 1.1.-31.12.2021 1.1.-31.12.2020
Americas 33,641 35,013
Europe 54,767 52,176
Nordics 56,904 56,428
APAC 7,843 7,962
Group total 153,155 151,579
EUR THOUSAND 31.12.2021 31.12.2020
Trade receivables 27, 4 07 26,602
Contract assets:
Non-current 0 6
Current 639 818
Contract liabilities:
Non-current 2,133 2,791
Current 19,965 19,177
During 2020-2021 the Group has not recognized significant impairment losses on contract assets�
EUR THOUSAND 1.1.-31.12.2021 1.1.-31.12.2020
Revenue recognized from amounts included in contract
liabilities at the beginning of the period: 17,349 15,203
% 1.1.-31.12.2021 1.1.-31.12.2020
EUR 54�1 52�8
USD 20�5 21�3
GBP 7� 3 7� 2
Other 18�0 18�6
Group total 100 100
Net sales by customer location
Summary of contract balances:
Set out below is the amount of revenue recognized from amounts included in
contract liabilities at the beginning of period:
Net sales by currency
Contract assets and liabilities
The timing of invoicing may differ from the timing of revenue recognition� The Group
recognizes an contract asset when revenue is recognized prior to invoicing, and a
contract liability when revenue is recognized subsequent to invoicing�
Revenue of professional services are recognized during the reporting period in which
service is provided� Revenue of fixed-price consulting projects are recognized as
revenue and expenditure on the basis of the percentage of completion when the
outcome of the project can be reliably estimated� If the resulting costs and recognized
profits exceed the amount invoiced for the transaction, the difference is presented in
“contract assets” on the balance sheet� If the resulting costs and recognized profits
are lower the invoicing for the transaction, the difference is presented in “contract
liabilities” on the balance sheet�
The majority of contract liabilities arise from:
• SaaS and Transactions services invoiced in advance and recognized as revenue on
monthly basis over the contract term
• Setup activities invoiced in advance and recognized as revenue during the contract
period
• maintenance revenue invoiced in advance and recognized as revenue over the
maintenance period
Transaction price allocated to the remaining performance obligations
The Group has elected to use the practical expedient in IFRS 15�121 in disclosing the transaction
price allocated to remaining performance obligations as its related performance obligations are
a part of a contract that have a original expected duration of less than one year, or the revenue
recognition from performance obligations is done according to IFRS 15�B16�
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3. Goodwill
Accounting principles
Goodwill is measured as the excess of the cost of the acquisition over the Group's share
of the fair values of the acquiree's net assets at the time of the acquisition� After initial
recognition, goodwill is measured at cost less any accumulated impairment losses�
Goodwill impairment testing
Goodwill is not amortised, but is tested for impairment annually, and when circums-
tances indicate that the carrying value may be impaired� Impairment is determined for
goodwill by assessing the recoverable amount of each cash generating unit (CGU) to
which the goodwill relates� When the recoverable amount of the CGU is less than its
carrying amount, an impairment loss is recognised� An asset’s recoverable amount is
the higher of CGU’s fair value less costs of disposal and its value in use� In assessing
value in use, the estimated future cash flows are discounted to their present value
using a pre-tax discount rate that reflects current market assessments of the time
value of money and the entity specific risks� Impairment losses relating to goodwill
cannot be reversed in future periods�
EUR THOUSAND 31.12.2021 31.12.2020
Acquisition cost Jan� 1 76,676 80,345
Translation difference 3,580 -3,669
Business disposals 0 0
Acquisition cost Dec. 31 80,257 76,676
Book value Dec. 31 80,257 76,676
Goodwill is tested according to IAS 36� The Group does not possess any other intangible assets
than Goodwill that has indefinite economical life� Unfinised intangible assets are also subjected
to impairment testing during reporting period� Impairment testing is carried out at group level
as the Group has centralised steering model and reporting structure� Goodwill is monitored
at group level internally�
Goodwill has been tested for impairment in the last quarter of 2021� The recoverable amounts
from the cash generating unit (CGU) are determined based on value-in-use calculations� The
calculations are prepared on a discounted cash flow method basis, derived from the board
approved estimates for the following year and subsequent development derived from the
strategic plans, covering five years� Terminal year value has been defined based on the long
term strategic financials�
Cash flows beyond the 10-year period are calculated using the terminal value method� The
terminal growth rate of 2�5% percent (2�5%) used in projections is based on management’s
assessment on conservative long term growth� Key driver for the valuation is the revenue
growth based on the Group’s performance and future strategic growth plans, market position as
well as the potential in key markets�
The applied discount rate is the weighted average pre-tax cost of capital (WACC)� The
components of the WACC are risk-free rate, market risk premium, company specific factor, and
industry specific beta, cost of debt and debt/equity ratio� The WACC of 11�1% percent (11�2%) has
been used in the calculations�
As a result of the impairment test, no impairment loss for the CGU were recognized for the
financial periods ended 31 December 2021 and 2020 respectively�
A sensitivity analysis was conducted and there is no indication that the changes in the assump
-
tions could be so substantial that the carrying amount would exceed the recoverable amount�
The impairment testing is influenced by how the Group will meet the targets set for year 2022
and beyond� In a sensitivity analysis the impacts of substantial changes to the most significant
assumptions like terminal growth, average EBIT-margin and the discount rate was assessed�
Terminal year growth should decrease more than 900 percentage points, pre-tax discount
rate should increase more than 20 percentage points or the average EBIT-margin during the
forecast period should decrease more than 13 percentage points for an impairment to take
place� Value in use exceeds the carrying amount by more than 100 percent�
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EUR THOUSAND 1.1.-31.12.2021 1.1.-31.12.2020
Gain on sale of assets 44 26
Other operating income 31 283
Other operating income 75 309
4. Other operating income
Accounting principles
Other operating income includes proceeds from the sale of business operations and
property, plant and equipment�
In financial year 2020, other operating income mainly consists of other proceeds related
to divestment�
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5. Personnel And Employee Benefits
Accounting principles
The Group has exclusively defined contribution pension arrangements, and the related
payments are expensed in the year they are incurred�
The Group also has a defined benefit based incentive scheme to commit personnel in
accordance with local regulations and practices in India� The calculations for defined
benefit plan are done according to same principles as defined benefit plans for
pensions and they predispose the Group to actuary risks like payroll risk, interest risk
and risk related to expected lifetime� Amounts of the defined benefit plans are based
on the yearly calculations submitted by independent actuaries� The present value of
the defined benefit obligations is determined by discounting the estimated future cash
flows using interest rates of Government issued bonds, if interest rate of high quality-
corporate bonds is not available� The plan is unfunded and more information on the
defined benefit plan is presented in Note 17�
The Group's related parties include parent company (Basware Corporation) and its
subsidiaries, the members of the Board of Directors, the members of the Corporate
Executive Team, CEO and their family members and their controlled companies�
Basware Corporation's subsidiaries are disclosed in Note 25� No loans have been given
to the related parties of the Group, except subsidiaries, and no guarantees or other
collateral have been issued on their behalf�
AVERAGE NUMBER OF PERSONNEL 1.1.-31.12.2021 1.1.-31.12.2020
Americas 98 106
Europe 380 373
Nordics 416 425
APAC 446 430
Tota l 1,339 1,334
EUR THOUSAND 1.1.-31.12.2021 1.1.-31.12.2020
Salaries and fees -72,925 -74,171
Share-based incentive plans -534 -1,409
Expenses from defined benefit plans -114 -74
Pension expenses, defined contribution plans -6,407 -5,690
Other employee benefits -6,441 -6,268
Employee benefits expense, total -86,420 -87,613
EUR THOUSAND 1.1.-31.12.2021 1.1.-31.12.2020
CEO of the parent company
Klaus Andersen -1,145 -519
Compensation of the members of the Board of Directors
Michael Ingelög -116 -80
Ilkka Sihvo -63 -59
Daryl Rolley -51 -74
Minna Smedsten (from June 4, 2020) -60 -37
Carl Farrell (from Mar 18, 2021) -40 0
Jonathan Meister (from Mar 18, 2021) -40 0
Asko Schrey (until Mar 18, 2021) -9 -44
Tuija Soanjärvi (until August 21, 2019) 0 -4
Tota l -1,524 -817
Employee benefits expense
Management and Board salaries, fees and benefits
Group's key employees are defined as CEO, members of the Board of Directors and Executive
team, including appointed interim positions� No loans, guarantees or other collaterals have been
given on behalf of group's key employees�
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EUR THOUSAND 1.1.-31.12.2021 1.1.-31.12.2020
Salaries and other short-term employee benefits -1,746 -1,862
Share-based payments -395 -523
Tota l -2,141 -2,385
Key management employee benefits
Total fixed salary of the CEO Klaus Andersen for the period January 1 - December 31, 2021 was
EUR 411 thousand (EUR 410 thousand January 1 - December 31, 2020)� Salary in money was
EUR 391 thousand (EUR 410 thousand), and fringe benefits were EUR 20 thousand (EUR 19
thousand)� Additionally, Andersen was paid a bonus of EUR 123 thousand from the financial
year 2020 (EUR 99 thousand in 2020 from the financial year 2019)�
Andersen was also given a total of 16,657 shares (354 shares in 2020) on the basis of the
share-based incentive schemes� Of these, 8,329 shares (177 shares in 2020) were conveyed to
Andersen, the value of which was approximately EUR 305 thousand (EUR 5 thousand) based
on the average share price of the payment days, and EUR 305 thousand (EUR 5 thousand) was
paid in cash to cover the withholding tax�
The accrued pension cost of Klaus Andersen amounted to EUR 64 thousand (61 thousand in
2020)� The CEO's pension plan is pursuant to the employment pension legislation� CEO Klaus
Andersen has 3 months’ period of notice, in addition to which he is entitled to severance pay
equivalent of 12 months’ fixed salary should the company give notice�
Matching Share Plan 2018-2020
The Board of Directors resolved on July 17, 2018 to establish a new matching share plan for
2018-2020 for the Group's key employees�
The prerequisite for receiving reward on the basis of the matching share plan was that the plan
member acquired Basware shares� The plan member will, as a reward, receive two (2) matching
shares for each share subject to the share ownership prerequisite after a matching period of
three (3) years�
Receipt of matching shares was contingent on the continuation of employment or service and
on the plan member holding the acquired shares upon reward payment� The rewards to be paid
in aggregate to plan members on the basis of the matching share plan corresponded to the
value of a maximum total of 77,714 Basware Corporation shares, including also the proportion to
be paid in cash�
The 32 Group’s key employees eligible for receiving a reward based on the plan had acquired
or allocated a total of 29,336 Basware Corporation shares based on the plan� The rewards to
be paid to the key employees on the basis of the plan thus corresponded to 58,672 Basware
Corporation shares, including also the proportion to be paid in cash� The reward was conveyed,
and the plan ended in March 2021�
Performance Share Plan 2017-2019
The Board of Directors resolved on March 1, 2017 to establish a performance share plan for
2017-2019 for key employees�
The performance share plan includes three performance periods, calendar years 2017-2018,
2018-2019 and 2019-2020� The Board of Directors decides on the performance criteria and on
the required performance levels for each criterion at the beginning of each performance period�
The reward for the performance period 2019-2020 was based on the Group’s key performance
measures in 2019� The potential rewards to be paid on the basis of the performance period
2019-2020 corresponded to the value of a maximum total of 60,225 Basware Corporation
shares, including also the proportion to be paid in cash� The plan was directed to approximately
45 key employees, including the members of the Basware Executive Team�
In March 2021, 10,572 shares were conveyed on a directed share issue related to the reward
payment for the performance period 2019-2020 of the performance share plan 2017-2019,
closing the final performance period 2019-2020 of the plan� The rewards paid on the basis of
Share-based payments
Accounting principles
Share-based incentive schemes are valued at fair value on the grant date based on
the gross number of shares awarded, recognized as an expense in the consolidated
statement of comprehensive income during the period in which the conditions are met
(the vesting period) and with a corresponding adjustment to the equity� The withholding
paid by the company to the tax authority is recognized directly in equity�

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the plan in 2020 corresponded to a total of 21,140 Basware Corporation shares, including also
the proportion to be paid in cash�
The plan ended in March 2021�
Performance Share Plan 2020-2021
The Board of Directors resolved on December 18, 2019 to establish a performance share plan
for 2020-2021 for key employees�
The Performance Share Plan includes one performance period, calendar years 2020-2021� The
Board of Directors have resolved on the performance criteria at the required performance
levels for each criterion� The plan is directed to approximately 45 key employees, including the
members of the Basware Executive Team�
The potential reward from the performance period 2020—2021 will be based on the company´s
Total Shareholder Return (TSR), the Group´s total revenue and ARR order intake during
2020—2021� The rewards to be paid on the basis of the performance period 2020—2021 corres
-
pond to the value of a maximum total of 320,000 Basware Corporation shares (including also
the proportion to be paid in cash)�
At the end of 2021, the performance share plan included 45 key employees�
Restricted Share Plan 2020
The Board of Directors resolved on December 18, 2019 to establish a restricted share plan
2020� The restricted share plan is directed to selected key contributors� Receipt of the reward is
contingent on the continuation of employment or service upon reward payment�
The reward from the restricted share plan will be paid after a vesting period of one to three
years� The total rewards to be allocated on the basis of the plan amount to a maximum of
10,000 Basware Corporation shares, including also the proportion to be paid in cash�
In September 2021, 625 shares were conveyed on a directed share issue related to the reward
payment for the restricted share plan 2020� The rewards paid on the basis of the plan in 2021
corresponded to a total of 1,250 Basware Corporation shares, including also the proportion
paid in cash�
At the end of 2021, the restricted share plan included 3 key employees�
Performance Share Plan 2022-2024
The Board of Directors resolved on December 16, 2021 to establish a performance share plan
2022-2024 for key employees�
The Performance Share Plan includes one performance period, calendar years 2022—2023 and
one additional vesting period, the calendar year 2024�
The potential reward from the performance period 2022—2023 will be based on the company´s
Total Shareholder Return (TSR), the Group´s total revenue and ARR order intake during
calendar years 2022—2023� The rewards to be paid based on the plan correspond to the value
of a maximum total of 315,600 Basware Corporation shares (including also the proportion to be
paid in cash)�
The Board of Directors have resolved on the performance criteria at the required performance
levels for each criterion� The plan is directed to approximately 60 key employees, including the
members of the Basware Executive Team�
Restricted Share Plan 2022
The Board of Directors resolved on December 16, 2021 to establish a restricted share plan 2022�
The restricted share plan is directed to selected key contributors� Receipt of the reward is
contingent on the continuation of employment or service upon reward payment�
The reward from the restricted share plan will be paid after a vesting period of one to three
years� The total rewards to be allocated on the basis of the plan amount to a maximum of
20,000 Basware Corporation shares, including also the proportion to be paid in cash�
Employee Share Savings Plan
The Board of Directors resolved on November 23, 2021 to establish a new long-term share
savings plan for the employees of Basware Corporation and its subsidiaries� The objective
of the Employee Share Savings Plan (ESSP) is to offer all employees at Basware a favorable
opportunity to invest a part of their salary in Basware shares, increasing alignment of interests
between employees and shareholders in Basware’s long-term value creation�
The first plan period will commence on 1st of April 2022 and end on 31st of March 2025� Shares
will be acquired in the market quarterly in four tranches based on the savings amount� The first
tranche will be acquired after the publication of the Q2 2022 interim report�
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Each participant shall receive one matching share free of charge for each two savings shares
acquired during the first saving period (April 2022-March 2023)� The delivery of matching
shares will be subject to the participant still owning the acquired savings shares and continued
employment at the end of the plan period�
The cost of the plan is a factor of the number of participants, the number of shares acquired
in the plan and the share price development� The total savings for the first saving period (April
2022–March 2023) are expected to be between 0�6 and 1�0 million euros� The Board has the
possibility to adjust the total savings amount before the plan period commences�
Effect on the result for the period and on the financial
position in 2021
Expenses for the financial year, share-based payments 533,517
Liabilities arising from share-based payments December 31, 2021 2,409
Future cash payment to be paid to the tax authorities from share-based
payments, estimated at the end of the period 58,988
Effect of Share-based Incentives on the result and financial position during the period
Valuation parameters for instruments granted during the period
Information on share-based incentive plans
Matching Share Plan
2018-2020
Restricted Share Plan
2020
Maximum number of shares 77,714 10,000
Initial grant date 18�7�2018 19�12�2019
Vesting date 31�3�2021
12-36 month Restriction
Period
Vesting conditions
Share ownership and
employment Employment
Maximum contractual life, years 2�7 -
Remaining contractual life, years 0�0 -
Number of persons at December 31,
2021 0 3
Payment method Shares & Cash Shares & Cash
Performance share plans:
Performance Period
2019-2020
Performance Period
2020-2021
Maximum number of shares 60,225 320,000
Initial grant date 20�6�2019 19�12�2019
Vesting date 31�3�2021 31�5�2022
Vesting conditions
Group's key performance
measures and employment
Group's key performance
measures and employment
Maximum contractual life, years 1�8 2�4
Remaining contractual life, years 0�0 0�4
Number of persons at December
31, 2021 0 45
Payment method Shares & Cash Shares & Cash
Share price at grant 38�69
Share price at December 31, 2021 30�25
Expected dividends 0
Fair value at December 31, 2021 135,425
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Changes in 2021
Matching Share Plan
2018-2020
Restricted Share Plan
2020
Outstanding at January 1, 2021 64,356 1,650
Granted 0 3,500
Forfeited -5,684 0
Exercised, gross -58,672 -1,250
Outstanding December 31, 2021 0 3,900
Performance share plans:
Performance Period
2018-2019
Performance Period
2019-2020
Outstanding at January 1, 2021 59,409 354,100
Granted 0 0
Forfeited -38,269 -65,840
Exercised, gross 21,140 0
Outstanding December 31, 2021 0 288,260
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8. Income taxes
Accounting principles
Income taxes comprise of tax recognized on the taxable income for the financial
year and deferred taxes� Taxes for the items recognised in the income statement are
included in taxes in the income statement� For items recognised directly in equity or
other comprehensive income, the income tax effect is similarly recognised�
Taxes based on taxable income are recorded according to the local tax rules of each
country using the applicable tax rate�
When uncertainty is included in interpretation of income tax rules, the Group
estimates, if a company is able to fully utilize the tax position that is stated in income
tax computation� If necessary, tax bookings are adjusted to reflect the changes in tax
position� At reporting date booked income tax amounts reflect the estimates of future
tax payments�
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72
6. Other operating expenses
EUR THOUSAND 1.1.-31.12.2021 1.1.-31.12.2020
Impairment losses on trade receivables 463 -745
Acquisition, disposal and restructuring expenses -8 -8
Efficiency related expenses -432 -453
Other operating expenses -20 -47
Other operating expenses total 3 -1,253
7. Finance income and expenses
Accounting principles
The Group recognizes borrowing costs as an expense in the period during which they
are incurred�
EUR THOUSAND 1.1.-31.12.2021 1.1.-31.12.2020
Finance income
Interest income on instruments valued at amortized cost 7 25
Foreign exchange gain on instruments valued at amortized
cost 510 548
Other financing income 316 46
Tota l 832 619
Finance expenses
Interest expenses on debt instruments valued at amortized cost -19,515 -10,196
Foreign exchange loss on instruments valued at amortized
cost
-1,117 -1,167
Interest expenses on lease liabilities -762 -881
Other financing expenses -4 -27
Tota l -21,398 -12,271
Finance income and expenses total -20,566 -11,652
Exchange differences recognized on income statement
EUR THOUSAND 1.1.-31.12.2021 1.1.-31.12.2020
Exchange differences included in net sales 30 -644
Exchange differences included in purchases and expenses -27 -5
Foreign exchange gains 510 548
Foreign exchange losses -1,117 -1,167
Exchange differences recognized on income statement -604 -1,267

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Direct taxes
EUR THOUSAND 1.1.-31.12.2021 1.1.-31.12.2020
Income tax on operations -942 -1,027
Tax for previous accounting periods -352 76
Change in deferred tax liabilities and tax assets 482 607
Income tax total -812 -345
Tax rate reconciliation
EUR THOUSAND 1.1.-31.12.2021 1.1.-31.12.2020
Profit/loss before taxes -13,421 -6,985
Tax calculated at domestic tax rate 2,684 1,397
Tax for previous years -352 76
Effect of different tax rates of foreign subsidiaries -298 -384
Effect of change in tax rate 0 0
Non-deductible expenses -3,390 -2,099
Losses for which no deferred tax asset is recognised 0 0
Other -130 528
Income not subject to tax 3 65
Taxable profit not included in the accounting profit 0 0
Utilization of previous year losses 1,159 839
Previous year losses for which deferred tax asset is booked -488 -766
Income taxes -812 -345
Taxes relating to other comprehensive income
EUR THOUSAND 1.1.-31.12.2021 1.1.-31.12.2020
Taxes on foreign exchange gains from net investments -41 41
Taxes on derivatives -90 72
Income tax receivables and payables
EUR THOUSAND 31.12.2021 31.12.2020
Income tax receivables 445 166
Income tax liabilities 313 196
Deferred taxes
Accounting principles
Deferred taxes are calculated from all temporary differences between the carrying
amount and taxable value at the corporate income tax rates prevailing at the reporting
date� The most significant temporary differences arise from depreciation of property,
plant and equipment, unused tax losses, research and development adjustments,
and adjustments for fair values in connection with acquisitions� Deferred tax is not
recognized for goodwill that is permanently non-taxable� Deferred tax is not recognized
for non-distributed profits of subsidiaries in so far as the difference is not likely to be
discharged in the foreseeable future� Deferred tax assets are recognised for all other
deductible temporary differences� A deferred tax asset is recognized to the extent
that it is likely that there will be future taxable income against which it is deductible�
The requirements for the recognition of deferred tax assets are reassessed at each
reporting date�
EUR THOUSAND 1.1.2021
Recognized
in profit or
loss
Business
acquisitions
/ disposals
Period
change
booked in
equity 31.12.2021
Tax losses 4,848 -502 0 0 4,345
Deferred expenses 5,168 1,851 0 0 7,019
Other items 576 603 0 0 1,180
Tota l 10,592 1,952 0 0 12,544
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73
Deferred tax assets 2021

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Deferred tax assets 2020
EUR THOUSAND 1.1.2020
Recognized
in profit or
loss
Business
acquisitions
/ disposals
Period
change
booked in
equity 31.12.2020
Tax losses 5,613 -766 0 0 4,848
Deferred expenses 3,516 1,652 0 0 5,168
Other items 525 51 0 0 576
Tota l 9,654 938 0 0 10,592
Deferred tax liabilities 2021
EUR THOUSAND 1.1.2021
Recognized
in profit or
loss
Exchange
rate
differences
Period
change
booked in
equity 31.12.2021
Allocation of fair value on
purchases 5,127 596 203 0 5,926
Fair valuation of deriva-
tives -56 0 0 90 34
Other items 0 871 0 0 871
Tota l 5,071 1,467 203 90 6,831
Deferred tax liabilities 2020
EUR THOUSAND 1.1.2020
Recognized
in profit or
loss
Exchange
rate
differences
Period
change
booked in
equity 31.12.2020
Allocation of fair value on
purchases 4,987 335 -195 0 5,127
Fair valuation of deriva-
tives 15 0 0 -72 -56
Tota l 5,003 335 -195 -72 5,071
The Group has recognised total of EUR 4,345 thousand (EUR 4,848 thousand) of deferred tax
assets for unused tax losses, of which EUR 632 thousand will expire during 2026–2028, while
the rest have no expiry period� According to the transfer pricing principle, subsidiaries accu
-
mulate taxable income against which confirmed losses can be utilized in the future� The Group
has offset deferred taxes EUR 871 thousand from the same source� The Group has total of EUR
21,207 thousand of tax losses and EUR 21,802 thousand of non-deductible interests for which
deferred tax asset has not been recognized� The Group will reassess the amount of deferred tax
assets if there are changes in the expectations for accumulation of future taxable profit�
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74

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Accounting principles
Other intangible assets are measured at cost less accumulated amortization and
possible impairment� Government grants related to the acquisition of an intangible
asset are deducted from the acquisition cost of the asset and recognized as income by
reducing the amortization of the asset they are related to� Amortization is calculated
on a straight-line basis over the estimated useful lives of the assets� The estimated
useful lives of intangible assets are 3–10 years� Each financial year end useful lives are
reviewed and adjusted prospectively, if appropriate�
Assets relating to customer relationships and technology that are acquired through
business combinations are measured at fair value at the time of acquisition and
amortized over the useful life�
10. Intangible assets
9. Earnings per share
Accounting principles
Undiluted earnings per share is calculated by dividing the profit for the period
attributable to the owners of the parent company by the weighted average number of
shares outstanding during the year� The average number of shares has been adjusted
with the treasury shares� Diluted earnings per share reflect the impact of the share-
based incentive plans�
EUR THOUSAND 1.1.-31.12.2021 1.1.-31.12.2020
Profit/loss for the period -14,233 -7,329
Average number of shares (1,000)
Undiluted 14,446 14,408
Diluted 14,581 14,639
Earnings per share (EUR)
Undiluted -0�99 -0�51
Diluted -0�99 -0�51
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76
Intangible assets 2021 Intangible assets 2020
EUR THOUSAND
Develop-
ment costs
Intangible
rights
Other
long-term
investments
Assets,
unfinished
projects To ta l
Acquisition cost Jan� 1 66,802 47,716 2,617 14,246 131,380
Translation difference
(+/-) 20 971 147 1 1,138
Additions 313 391 111 7,1 9 1 8,007
Disposals -6,337 -7,134 -303 0 -1 3 ,7 74
Reclassifications between
items 5,701 0 0 -5,885 -184
Acquisition cost Dec. 31 66,498 41,944 2,572 15,552 126,566
Cumulative amortization
Jan� 1 -47,175 -41,023 -1,256 0 -89,453
Translation difference
(+/-) -38 -677 -77 0 -792
Cumulative amortiza-
tion on disposals and
reclassifications 6,246 7,134 286 0 13,666
Amortization -9,265 -1,643 -293 0 -11,201
Cumulative
amortization Dec. 31 -50,231 -36,210 -1,339 0 -87,781
Book value Dec. 31,
2021 16,267 5,734 1,233 15,552 38,785
EUR THOUSAND
Develop-
ment costs
Intangible
rights
Other
long-term
investments
Assets,
unfinished
projects To ta l
Acquisition cost Jan� 1 64,741 48,068 2,858 8,118 123,785
Translation difference
(+/-) -36 -1,003 -241 0 -1,280
Additions 692 650 0 7, 578 8,920
Disposals 0 0 0 -46 -46
Reclassifications between
items 1,405 0 0 -1,405 0
Acquisition cost Dec. 31 66,802 47,716 2,617 14,246 131,380
Cumulative amortization
Jan� 1 -39,003 -39,401 -980 0 -79,384
Translation difference
(+/-) 48 658 92 0 799
Cumulative amortiza-
tion on disposals and
reclassifications 0 0 0 0 0
Amortization -8,220 -2,280 -368 0 -10,868
Cumulative
amortization Dec. 31 -47,175 -41,023 -1,256 0 -89,453
Book value Dec. 31,
2020 19,627 6,693 1,361 14,246 41,927
Goodwill is presented in Note 3�

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Tangible assets are measured at cost less accumulated depreciation and possible
impairment� The useful lives of tangible assets are 3–10 years� The useful life of an
asset is reviewed at least at the end of each financial year and adjusted, if appropriate�
Sales gains and losses on disposal or transfer of tangible assets are presented in other
operating income and expenses� Sales gains or losses are calculated as the difference
between the sales price and the remaining acquisition cost�
11. Tangible assets
Accounting principles
Tangible assets 2021 Tangible assets 2020
EUR THOUSAND
Right-of-
use-assets,
buildings
Right-of-
use-assets,
machinery
and equip-
ment
Machi-
nery and
equipment
Other
tangible
assets Tota l
Acquisition cost Jan� 1 21,088 2,148 10,651 152 34,040
Translation difference (+/-) 444 -2 95 536
Additions 3,778 504 470 4,752
Disposals -3,091 -50 -3,177 -6,318
Reclassifications between
items 184 184
Acquisition cost Dec. 31 22,218 2,600 8,222 152 33,193
Cumulative depreciation
Jan� 1 -7,567 -1,347 -9,780 0 -18,694
Translation difference (+/-) -209 2 -81 -288
Cumulative depreciation
on disposals and
reclassifications 0 0 3,177 3,177
Depreciation -3,706 -521 -326 -4,552
Cumulative
depreciation Dec. 31 -11,483 -1,866 -7,009 0 -20,357
Book value Dec. 31, 2021 10,736 735 1,213 152 12,836
EUR THOUSAND
Right-of-
use-assets,
buildings
Right-of-
use-assets,
machinery
and equip-
ment
Machi-
nery and
equipment
Other
tangible
assets Tota l
Acquisition cost Jan� 1 18,778 1,865 11,069 152 31,865
Translation difference (+/-) -501 4 -121 0 -617
Additions 2,990 298 435 0 3,723
Disposals -180 -19 -732 0 -931
Acquisition cost Dec. 31 21,088 2,148 10,651 152 34,040
Cumulative depreciation
Jan� 1 -4,024 -689 -10,147 0 -14,860
Translation difference (+/-) 146 -4 122 0 264
Cumulative depreciation
on disposals and
reclassifications 0 0 714 0 714
Depreciation -3,689 -654 -469 0 -4,812
Cumulative
depreciation Dec. 31 -7,567 -1,347 -9,780 0 -18,694
Book value Dec. 31, 2020 13,521 802 871 152 15,346
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77

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12. Leases
Accounting principles
The group has lease contracts for office spaces, vehicles and various items of office
equipment (e�g�, coffee machines, copy machines, water machines, servers etc)� All
Group's real estate contracts and car leasing contracts were analyzed to belong in the
scope IFRS 16� The Group has elected to use the exemptions applicable to the stan
-
dard on short-term lease contracts (lease period less than 12 months), and for lease
contracts for which the underlying asset is of low value� The Group is not subleasing
any of its leased assets�
There are several lease contracts that include extension and termination options�
The Group applies judgement in evaluating whether it is reasonably certain whether
or not to exercise the option to extend or terminate the lease� That is, it considers
all relevant factors that create an economic incentive for it to exercise either the
extension or termination� The Group applied the following practical expedients in
determining lease period:
• if both parties have the right to terminate the contract on a certain date and after
this certain date the contract is valid until further notice the contract is interpreted
to be terminated on the date when both parties have right to terminate the
contract;
• if the Group has right to terminate the contract before the lessor, each contract is
separately analyzed: what is the most likely outcome taking into consideration the
future prospects and investments made to the premises�
The Group is exposed to potential cash outflows that are not reflected in the measu-
rement of lease liabilities� The Group has committed to enter into a lease agreement
with expected cash outflows during the coming year�
The carrying amounts of right-of-use assets recognised and the movements during
the period are presented in Note 11� Tangible Assets�
The maturity analysis of lease liabilities is disclosed in Note 18� Management of
financial risk�
EUR THOUSAND 1.1.-31.12.2021 1.1.-31.12.2020
Depreciation expense of right-of-use assets -4,227 -4,203
Interest expense on lease liabilities -762 -881
Expense relating to leases of low-value assets -643 -530
Total amount recognised in profit or loss -5,631 -5,613
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13. Entity-wide disclosures
Of the entity-wide information assets are shown by their location�
Assets presented below consists mainly of goodwill, intangible assets, right-of-use assets and
other non-current receivables�
Non-current assets based on the location of the assets
EUR THOUSAND 1.1.-31.12.2021 1.1.-31.12.2020
Finland 53,909 51,834
Americas 30,707 28,895
Europe 42,884 43,828
Nordics 9,369 9,292
APAC 3,156 3,661
Group total 140,025 137,509
The sales shown by the location of customers is presented in note 2�
The group doesn't have customers whose share of the revenue exceeds 10% of total revenue�
14. Non-current financial assets
EUR THOUSAND 31.12.2021 31.12.2020
Acquisition cost Jan� 1 13 13
Acquisition cost Dec. 31 13 13
Non-current financial assets include unquoted equity shares�

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15. Current trade and other receivables
Accounting principles - Expected credit losses on trade receivables
The Group recognizes loss allowances for expected credit losses (ECL) on trade recei-
vables in accordance with IFRS 9� For analyzing and recognition of ECL regarding trade
receivables, the simplified approach for determining the expected credit losses of IFRS
9 is applied� In this approach the credit losses are based on predetermined credit loss
rates by category� The rates are determined by past events and external sources� Loss
allowances for trade receivables are always measured at an amount equal to lifetime ECL�
For measurement of ECL for trade receivables the Group uses a provision matrix� The
provision matrix is based on historical observed default rates over the expected life of the
trade receivables and is adjusted for forward-looking estimates specific to the geographic
region and the economic environment� At every reporting date the historical observed
default rates are updated and changes in the forward-looking estimates are analyzed�
Expected credit losses have not been recorded from the value added tax that is included
in trade receivables�
Loss allowances for ECL are presented in the statement of financial position as a
deduction from the gross carrying amount of the assets� In profit or loss, the amount of
ECL (or reversal) is recognised as an impairment gain or loss in other operating expenses
category�
EUR THOUSAND 31.12.2021 31.12.2020
Non-current receivables
Contract assets 0 6
Capitalized contract costs 1,996 2,854
Other non-current receivables 1,138 688
Pledged bank account 5,000 0
Non-current trade and other receivables total 8,133 3,547
Current receivables
Trade receivables 27, 4 07 26,602
Contract assets 639 818
Capitalized contract costs 2,600 3,271
Other receivables 6,871 5,443
Current receivables total 37,518 36,134
The fair values of financial assets and liabilities are presented in Note 22 and definitions for
contract assets presented in Note 2�
Contract costs
The incremental costs of obtaining a contract with a customer includes sales
commissions related to long-term service contracts� Contracts costs are capitalized if
the recognition criteria are satisfied and the entity expects to recover those costs� The
capitalized costs are amortized on a straight-line basis over the contract term in which
the services are transferred and the revenue is recognized� Below table describes the
changes in capitalized contract costs�
EUR THOUSAND 31.12.2021 31.12.2020
Capitalized contract costs, opening balance 6,125 6,636
Capitalized during the period 2,063 3,204
Recognized as an expense during the period -3,590 -3,715
Capitalized contract costs, ending balance 4,598 6,125

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81
The aging analysis of trade receivables and impairment loss
EUR THOUSAND 2021
Impairment
provision Net 2021 2020
Impairment
provision Net 2020
Not due 20,693 -9 20,684 20,026 -9 20,017
Overdue
1-180 days 6,844 -74 6,770 7,009 -70 6,939
181-360 days 681 -305 376 454 -212 242
Over 360 days 87 -210 -123 577 - 574 4
Additional
provision 0 -300 -300 0 -600 -600
Tota l 28,306 -898 2 7, 407 28,066 -1,464 26,602
In addition to the standard company practice of provisioning for credit losses the Group
estimates an additional provision of EUR 300 thousand related to increased uncertainty of
economic conditions in countries where the Group operates due to Covid-19 pandemic�
No significant concentrations of credit risk are associated with the receivables� The balance
sheet values equal the best to the maximum amount of the credit risk� Principles of the Group's
credit risk management are presented in Note 18�
16. Cash and short-term deposits
Accounting principles
Cash and cash equivalents consist of cash, short-term bank deposits that can be with-
drawn on demand and other current highly liquid investments that can be exchanged
to an amount of cash assets that is known in advance, and with a low risk of changes in
value� Items classified as cash and cash equivalents have a maximum maturity of three
months from acquisition�
EUR THOUSAND 31.12.2021 31.12.2020
Cash and cash equivalents 31,060 40,461
Cash and short-term deposits 31,060 40,461
17. Defined benefit plans
The Group has in Indian subsidiary an incentive scheme to commit employees, where benefit is
paid to the employee after five years in service, in case of the employment is ending�
The calculations for defined benefit plans are done according to same principles as defined
benefit plans for pensions and they predispose the Group to actuary risks like wage risk,
interest risk and risk related to expected lifetime� These plans are unfunded�
EUR THOUSAND 1.1.-31.12.2021 1.1.-31.12.2020
Opening value Jan� 1 - liability 388 377
Amounts recognised in profit and loss
Service cost, benefits earned during the year 64 70
Interest expense (+) / income (-) 26 25
Changes due to currency fluctuation 34 -43
Amounts recognised in other comprehensive income
Acturial losses (+) / gains (-) 33 4
Other changes
Benefits paid -36 -46
Ending value Dec. 31 - liability 509 388
The most significant actuarial assumptions
Discount rate (%) 6�9% 6�6%
Increase of wages (%) 7�0 % 7�0 %

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18. Management of financial risk
The Group's international business involves customary financial risks such as foreign exchance
risk, interest rate risks, liquidity risks and credit risks� The risk management principles are
defined in the Treasury Policy approved by the Board of Directors� Basware Treasury is respon
-
sible for the centralized management of the financial risk�
Foreign currency risk
The Group's main currency is euro, accounting for approximately 54 percent of net sales in
2021 (approximately 53% in 2020)� Total Net sales were 153 (152) million EUR� In addition to the
euro area, Basware has sales in various areas, the most significant being the United States, the
United Kingdom, Sweden and Norway� In addition, Basware has internal operations in India and
Romania�
Net sales by currency
% 1.1.-31.12.2021 1.1.-31.12.2020
EUR 54�1 52�8
USD 20�5 21�3
GBP 7� 3 7�2
Other 18�0 18�6
Group total 100 100
Sales in subsidiaries are carried out mainly in local currencies and do not expose the Group
to significant foreign currency transaction risk� Operational expenses, such as IT services,
and other purchases that takes place in non-functional currency expose the Group to foreign
exchange risk and is considered as significant risk to profit and loss statement� In addition, the
Group is exposed to foreign currency risk through intra-company trade and funding� Internal
loans are primarily in the functional currency of the subsidiary letting the parent company to
carry the foreign exchange risk� All outstanding interest-bearing liabilities on the reporting
date were in Euros� The most relevant transaction risk exposures arising from US dollar, Indian
Rupee and Romanian Leu�The Group hedged substantial foreign currency items in the financial
period according to the Treasury Policy� The Group strategy is to hedge foreign exchange
exposures of contractual and other highly probable recurring expenses and sales according to
guidelines set within the treasury policy� The hedged exposures consist of future forecasted
contracted cash flows in next 12 months� The Group hedges also balance sheet risk arising from
foreign currency denominated items on the balance sheet� Foreign currency cash flow hedges
are conducted at parent company level� Foreign currency forward and non-deliverable forward
contracts are used for Hedging�
Accounting principles are presented in Note 22� The effective portion of changes in the fair
values of hedge accounted derivatives are recognized in other comprehensive income� The
changes of non-hedge accounted derivatives are recognized in profit and loss statement� The
table below presents the fair values of foreign currency derivatives at year-end�
2021 2020
EUR THOUSAND
Nominal
value
Positive
fair
value
Negati-
ve fair
value
Net fair
value
Nominal
value
Positive
fair
value
Negati-
ve fair
value
Net fair
value
Foreign-currency
derivatives 28,958 794 -54 74 0 14,162 55 -413 -358
The sensitivity of foreign currency exposure on revenue and operating profit has been
estimated using 10 percent change to all currencies the company is exposed to� Revenue impact
is calculated using the total group net revenue for the reporting period� Operating profit
sensitivity includes all line items as per profit and loss statement excluding hedge accounted
derivatives� Foreign exchange sensitivity is estimated by recalculating the reporting period
result using changed average rates� Sensitivity analysis of the operative items as well as the
financial instruments have been changed since the annual report 2020 and are not comparable�
Comparison year has been recalculated here using the new method�
10% change in the average foreign exchange rates
Revenue Impact Operating profit impact
Change in EUR revenue
would be 4�6% (4�7%)
Change in EUR operating profit is
smaller than change in revenue
A sensitivity analysis of financial instruments as required by IFRS 7, include the following items:
foreign currency cash and cash equivalents, currency derivatives, foreign currency leasing debt,
foreign currency internal loans and net investment loans� The next table presents the effects,
net of taxes, of a +/- 10 percent change in EUR foreign exchange rates:

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TUHATTA EUROA USD AUD GBP SEK DKK NOK RON INR
Pitkäaikaiset varat
Lyhytaikaiset varat
Rahavarat
Myyntisaamiset ja
muut saamiset
Lyhytaikaiset velat
Korottomat velat
Stories Reports Financial statements Key figures Information for shareholders
83
TUHATTA EUROA Tuloslaskelma Laajan tuloslaskelman erät
2021 +10% -10% +10% -10%
EUR/USD 1,790 -136 1,926 -1,926
EUR/GBP 237 -95 332 -332
EUR/SEK 267 -62 328 -328
EUR/NOK 359 -153 511 -511
EUR/INR 762 -161 923 -923
EUR/RON 612 -170 782 -782
Muut valuutat 593 -140 728 -728
4,620 -917 5,531 -5,531
TUHATTA EUROA Tuloslaskelma Laajan tuloslaskelman erät
2021 +10% -10% +10% -10%
EUR/USD 2,174 541 1,633 -1,633
EUR/GBP 774 45 729 -729
EUR/SEK 204 -118 322 -322
EUR/NOK 44 -463 507 -507
EUR/INR 229 -194 423 -423
EUR/RON 484 -30 514 -514
Muut valuutat 339 -167 465 -465
4,248 -386 4,593 -4,593
Changes in the other comprehensive income are caused by net investment loans and foreign
currency contracts relating to and designated in cash flow hedge accounting�
Interest rate risk
Rhe objective of the risk management with regard to interest rate risk is to diminish the
negative impacts of changes in interest rates on the Group's financial performance� Changes in
market rates are impacting interest rates of loan portfolio as well as interest-bearing payables
and receivables�
The Group is exposed to cash flow interest rate risk through its loan portfolio which arises
from floating rate loans� In order to manage and diversify the risk the Group has both fixed
and floating rate loans and possibility to apply interest rate derivatives for hedging� In the last
financial period the Group has not used derivatives against the interest rate risk�
On December 31, 2021 the Group had a total of EUR 71�4 million (EUR 68�8 million) interest-
bearing liabilities, excluding leasing-liabilities, of which a total of EUR 60�2 million variable-rate
loans� At the closing date all external loans have been in Euro with the average cost of debt
of 10�8 percent (14�2%) and average maturity of 2�6 years� Cost of debt calculation for 2021
excluded one time costs relating to the amendment of the Macquarie debt facility in July 2021�
According to IFRS 7 standard calculated sensitivity analysis represents the effect of variable
rate interest-bearing liabilities on profit before taxes if interest rate would have increased
or decreased by 1 percentage with all other variables constant� For interest rate analysis the
impact would have been -0�3/+0�0 million euros (-0�2/+0�0 million)� At the closing date the
Group didn’t have significant interest-bearing assets or other financial items that would be
exposed to market rate changes�
The following table illustrates the effect of a sensitivity analysis on interest rates�
EUR THOUSAND 2021 2020
Change in interest rates +1% -1% +1% -1%
Interest-bearing liabilities -300 0 -237 0
Liquidity risk and refinancing risk
LLiquidity risk is the risk that current funds and existing loan facilities are insufficient which
may affect the Group's ability to deliver on the long-term strategy� Liquidity risk is managed
by securing the availability of long-term funding and maintaining sufficient cash reserves� The
refinancing risk is managed by using various funding sources and distributing maturities of
loans� The Group maintains sufficient liquidity and its cash and cash equivalents was EUR 31�1
million on 31 December 2021�
On July 12, Basware completed an amendment agreement of its debt facility with Macquarie
Principal Financing PTY Limited, effective 12th of July 2021� As a result of the improved terms,
the Company will realize a cash benefit of minimum EUR 12 million over the remaining duration
of the Loan, compared with the original debt facility� The renegotiated Loan reflects Basware’s
improved financial performance and significantly decreases Basware’s cost of debt� Under the
amendment, the debt facility is upsized to a EUR 66 million senior secured Loan which will be
due September 2024 in line with the facility’s original maturity and has a non-call of 24 months�
The Loan amount of EUR 66 million consists of EUR 50 million related to the original debt
facility, EUR 11 million related to previously capitalized interest (PIK interest) and EUR 5 million
upsizing to enhance the Company’s overall liquidity position�

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84
Below is presented changes in the Group's debt portolio in the financial year�
EUR THOUSAND 2020
Cash flow
(+/-)
Non-cash
flow (+/-) 2021
Non-current
Loans from financial
institutions 56,706 -9,886 13,432 60,253
Bond 9,958 16 9,974
Current
Loans from financial
institutions 2,173 -1,996 998 1,175
Leasing liabilities 1 5 , 374 -4,267 2,191 13,298
Tota l 84,212 84,700
The Group’s liquidity remained stable during the financial year� The Group's ability to secure
financing may affect its ability to deliver on the strategy� The tables below describe the maturity
structure of the interest-bearing liabilities� The figures are revealed with inclusion of interest
and principal repayment, figures have not been discounted�
Maturity distribution of financial liabilities 2021
EUR THOUSAND
Balance
sheet
value Cash flow
less than 1
year 1-3 years 3-5 years
over 5
years
Loans, interest-
bearing 71,402 90,292 5,266 85,026 0 0
Leasing liabilities,
interest-bearing 13,298 14,513 4,203 6,537 3,773 0
Foreign currency
derivatives 54 54 54 0 0 0
Trade and other
payables 12,207 12,207 12,207 0 0 0
Tota l 96,961 117,066 21,730 91,563 3,773 0
Maturity distribution of financial liabilities 2020
EUR THOUSAND
Balance
sheet
value Cash flow
less than 1
year 1-3 years 3-5 years
over 5
years
Loans, interest-
bearing 68,837 115,881 5,148 22,728 88,005 0
Leasing liabilities,
interest-bearing 1 5, 374 17,875 4,608 6,925 4,351 1,990
Foreign currency
derivatives 357 357 357 0 0 0
Trade and other
payables 10,196 10,196 10,196 0 0 0
Tota l 94,765 144,309 20,309 29,654 92,356 1,990

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85
Credit risk
The sales receivables of the Group are widely spread among a customer base and do not
include significant concentration of credit risks� Business management regularly monitors the
payment of sales receivables as part of the management of customer accounts� The Group has
not used surety bonds to secure sales receivables�
Impairment losses recognized during the financial period and the age distribution of accounts
receivables are presented in Note 15�
Capital management
Shareholders’ equity reported in the Group balance sheet is managed as capital� The Group's
capital management aims to ensure the continuity of its operations (going concern) and
increase the value of shareholder’s investment�
The capital structure can be adjusted by decisions on, e�g�, distribution of dividend, share
repurchase and share issues� The resolutions of the Annual General Meeting and the authoriza
-
tions of the Board of Directors are presented in the Annual Report� Additional information on
the share and share issue is presented under Share and Shareholders�
The Group monitors the financial covenants as part of its business and strategy planning� In
order to ensure sufficient headroom in relation to covenant thresholds and maximum levels
the group forecasts the future values and provide the management with the information
on financial and risk positions� No covenant was breached in the financial period ending 31
December 2021�
The Group aims to maintain a strong equity ratio and a moderate gearing ratio� At the end of
2021 the equity ratio was 33�0 percent (36�7%) and gearing ratio 73�4 percent (53�0%)� Gearing
ratio excluding leasing liabilities was 55�2 percent (34�4%)�
19. Shareholders' equity
Accounting principles
Costs related to the issue or purchase of equity instruments are recorded as a reduc
-
tion of shareholders' equity� Own equity instruments that are reacquired (treasury
shares) are recognised at cost and deducted from equity�
Shareholders' equity 2021
EUR THOUSAND
Share-
holders'
equity
Share
premium
account
Invested
un-restricted
equity
Other
reserves
Own
shares Tota l
Jan 1, 2021 3,528 1,187 110,290 290 0 115,296
Decrease of treasury
shares
Transactions that do
not affect the number
of shares / Cash flow
hedges 717 717
Dec 31, 2021 3,528 1,187 110,290 1,006 0 116,013
Shareholders' equity 2020
EUR THOUSAND
Share-
holders'
equity
Share
premium
account
Invested
un-restricted
equity
Other
reserves
Own
shares Tota l
Jan 1, 2020 3,528 1,187 110,388 653 -98 115,659
Decrease of treasury
shares -98 98 0
Transactions that do
not affect the number
of shares / Cash flow
hedges -363 -363
Dec 31, 2020 3,528 1,187 110,290 290 0 115,296
The nominal value of one share is not determined�

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86
Number of shares
2021 2020
Number of outstanding shares Jan� 1 14,415,460 14,397,639
Incentive plan (+) 0 17,821
Number of outstanding shares Dec. 31 14,415,460 14,415,460
Treasury shares Jan� 1 5,476 4,297
Share issue without consideration (+) 19,000 19,000
Incentive plan (-) -17,821 -17,821
Treasury shares Dec. 31 6,655 5,476
Other reserves
Other reserves include the fair value reserve, which includes the cash flow hedges and the
increase in the value of the Analyste deal shares between the publication and realization of the
deal in 2006�
Treasury shares
The treasury shares reserve includes the acquisition cost of own shares held by the Group�
Warrants
Basware entered into a loan agreement with Bregal Milestone LLP with detachable warrants
entered into at the same time (On November 23, 2020 the loan was transferred to Macquarie
Principal Finance PTY Limited, UK Branch)� On October 9, 2020, Basware received flagging
notifications from Bregal Milestone and Briarwood Chase Management LLC according to which
Briarwood Chase Management LLC had acquired all warrants from Bregal Milestone�
The management used judgement in valuing the warrants at fair value� The loan is calculated
at amortized cost applying EIR� As a result of the share issue decided by the Board of Directors
on 22 September 2021, the Board of Directors also decided upon the adjustment of the subsc
-
ription price to be utilized when subscribing the 1,000 freely transferable warrants belonging to
Briarwood Chase Management LLC� Following the adjustment, the warrants entitle their holder
to subscribe for a total of 1,003,000 shares in the company at an adjusted subscription price of
EUR 29�7926 per share� The warrants are exercisable at any time until 20 business days prior to
the 19 September 2024�
Dividends
The Board of Directors proposes to the Annual General Meeting that no dividend will be paid for
the year 2021 (2020: 0 euros per share)�
20. Trade and other liabilities
EUR THOUSAND 31.12.2021 31.12.2020
Long-term trade and other liabilities
Contract liabilities 2,133 2,791
Long-term trade and other liabilities total 2,133 2,791
Short-term trade and other liabilities
Trade liabilities 7,79 6 6,178
Contract liabilities 19,965 19,177
Other Liabilities 27,134 24,292
Short-term trade and other liabilities total 54,895 49,648
Accrued expenses include personnel related expenses EUR 17,137 thousand (EUR 17,054
thousand)�
The fair values of financial assets and liabilities are presented in Note 22 and definitions for
contract liabilities presented in Note 2�
21. Provisions
Accounting principles
A provision is recognized when the Group has a present legal or constructive obligation
as a result of a past event, it is probable that the obligation will have to be settled,
and the amount of the obligation can be reliably estimated� Provisions are measured
at the present value required in order to cover the obligation� The present value
factor used in the calculation of the present value is selected so that it represents the
market insight into the time value of money and liability-related risks at the time of the
assessment�

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87
EUR THOUSAND 31.12.2021 31.12.2020
Opening balance Jan� 1 0 266
Additions 0 0
Disposals 0 -266
Closing balance Dec. 31 0 0
22. Financial assets and liabilities
Accounting principles
A financial instrument is any contract that gives rise to a financial asset of one entity
and a financial liability or equity instrument of another entity�
Financial assets
The financial assets are categorized as follows:
• financial asset measured at amortized cost
• financial asset measured at fair value through other comprehensive income
• financial asset measured at fair value through profit or loss
A financial asset is measured at amortized cost when both of the following conditions
are met:
• the objective is to hold financial assets to collect contractual cash flows and
• the contractual terms of the financial asset give rise on specified dates to cash flows
that are solely payments of principal and interest on the principal amount outstanding�
A financial asset is measured at fair value through other comprehensive income when
both of the following conditions are met:
• the objective is to collect contractual cash flows and to sell financial assets and
• the contractual terms of the financial asset give rise on specified dates to cash
flows that are solely payments of principal and interest on the principal amount
outstanding�
A financial asset is measured at fair value through profit or loss unless it is
measured at amortized cost or at fair value through other comprehensive income�
On initial recognition of an equity instrument that is not held for trading, the Group
may irrevocably elect to present subsequent changes in fair value in other compre
-
hensive income� This election is made on an investment by investment basis�
The categorization is based on the purpose of the acquisition of the financial assets
and it is performed in connection with the original acquisition� Financial assets are
classified as non-current assets if they mature in more than 12 months� If they are to
be held for less than 12 months financial assets are disclosed as current assets�
All purchases and sales of financial assets are recognized at the transaction date,
which is the date on which the Group commits to purchase or sell the financial
instruments� A financial asset is derecognized when the rights to receive cash flows
from the asset have expired the Group has transferred substantially all the risks and
rewards of the asset�
Impairment of financial assets
Trade receivables are measured at amortized cost less impairment losses� The princip
-
les for impairment of trade receivables are presented in Note 15� For the other financial
assets the impairments are recognized based on Expected Credit Losses� In addition,
the Group assesses at each reporting date whether there is objective evidence that a
financial asset is impaired�
Financial liabilities
The Group's financial liabilities include trade and other payables and financial liabilities
that are measured at amortized cost� Financial liabilities are classified as non-current
liabilities if they mature in more than 12 months� Liabilities maturing in less than 12
months are classified as current�
Derivatives
Derivative financial instruments are recognized at fair value on the trade date and
subsequently revalued at the fair value on each reporting date� For all derivatives the
fair value calculation is based on using the observable market data for foreign currency
and interest rate price quotation on the reporting date� Derivatives are included in
current assets or liabilities and on the reporting date, except derivatives maturities
greater than 12 months after the balance sheet date, which are classified as non-
current assets or liabilities�
designated in the cash flow hedge accounting is no longer valid or a hedge relationship

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The Group applies hedge accounting for foreign currency cash flow hedging� For
foreign exchange forwards and swaps not qualifying for hedge accounting changes in
fair values are recognized in income statement in financial income and expenses�
Hedge relationship qualifies for hedge accounting only if the specific requirements are
met� At inition the hedge relationships have to be formally documented and consist of
eligible hedge instrument and hedged item(s)� The documentation defines the relation
-
ship between the designated hedging instrument(s) and the designated hedged item(s),
the nature of the risk being hedged with the company’s risk management objective
and strategy� The designated items have to be identifiable and reliably measurable� In
addition, analysis of the sources for the ineffectiveness are documented�
The hedge effectiveness is assessed at inception and after that ongoing basis
considering the economic relationship, credit risk and the hedge ratio� Effectiveness is
assessed using qualitative methodology� In cash flow hedge accounting is used foreign
currency forward and non-deliverable forward contracts to hedge exposures in foreign
currency cash flows which ensures economic relationship� Economic relationship exist
between the designated hedged item and the designated hedging instrument which
means that the values of these items move in the opposite directions because of the
common underlying risk� Selecting appropriate stakeholders enables assessment
of credit risk and ensuring that the effect of credit risk is not dominating the value
changes in the fair values� The hedge ratio in hedge accounting is the same used for
actual hedging�
Forward contracts are designated with the full fair value to hedge relationships,
meaning spot and forward elements are not separated� For cash flow hedges the
effective portion of changes in the fair value of hedging instruments are recognized
through other comprehensive income (OCI) to hedge reserve within equity� When the
hedged transaction affects the income statement the hedging instruments recognized
in OCI are transferred to income statement� Accumulated changes in fair values within
equity are recognized in income statement in adjustment of purchases or sales in the
same period when the hedged item affects income statement�
Any ineffective portion of hedges under hedge accounting treatment are reclassified
immediately to income statement in financial gain or expense� If hedging instrument
doesn't meet the criteria for hedge accounting, the cumulative change in the fair value
the hedging instrument will remain in the equity until a recognition of the hedged
item in the income statement� The cumulative change in the fair value of the hedging
instrument is reclassified to income statement to adjustment item immediately if the
hedged cash flow is not firm or highly probable and not expected to realize in the future�
Changes in the fair values of foreign exchange derivatives are recognized in financing
income and expenses if hedged items are recognized as assets or liabilities�
Cash flow hedging resulted in the net profit of EUR 76 thousand in the income statement
and the balance sheet impact (OCI) was EUR 450 thousand at the end of 2021�

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89
EUR THOUSAND Note
Derivatives, hedge
accounting
Fair value through
profit or loss Amortized cost
2021
Carrying amount
2021
Fair value
Financial assets non-current
Unlisted share investments 14 13 13 13
Other receivables 15 6,138 6,138 6,138
Financial assets current
Trade and other receivables 15 28,600 28,600 28,600
Derivatives 18 471 323 794 794
Cash and cash equivalents 16 31,060 31,060 31,060
Financial assets 66,605 66,605
Financial liabilities non-current
Loans, interest-bearing 70,227 70,227 78,151
Leasing liabilities, interest-bearing 8,986 8,986 8,986
Financial liabilities current
Loans, interest-bearing 1,175 1,175 1,175
Leasing liabilities, interest-bearing 3,560 3,560 3,560
Trade and other payables 20 12,207 12,207 12,207
Derivatives 18 21 33 54 54
Financial liabilities 96,209 104,133

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90
EUR THOUSAND Note
Derivatives, hedge
accounting
Fair value through
profit or loss Amortized cost
2020
Carrying amount
2020
Fair value
Financial assets non-current
Unlisted share investments 14 13 13 13
Other receivables 15 688 688 688
Financial assets current
Trade and other receivables 15 27,807 27,807 27,807
Derivatives 18 55 55 55
Cash and cash equivalents 16 40,461 40,461 40,461
Financial assets 69,024 69,024
Financial liabilities non-current
Loans, interest-bearing 66,665 66,665 77,299
Leasing liabilities, interest-bearing 11,647 11,647 11,647
Financial liabilities current
Loans, interest-bearing 2,173 2,173 2,173
Leasing liabilities, interest-bearing 3,727 3,727 3,727
Trade and other payables 20 10,196 10,196 10,196
Derivatives 18 413 413 413
Financial liabilities 94,821 105,455

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91
Financial instruments that are measured at fair value in the balance sheet are presented
according to fair value measurement hierarchy:
Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities�
Level 2: inputs other than quoted price included within Level 1 that are observable for the
assets or liability, either directly (that is, as prices) or indirectly (that is, derived from prices)�
Level 3: inputs for the assets or liability that is not based on observable market data (unobser
-
vable inputs)�
In determining the values of the financial assets and liabilities, the following price quotations,
assumptions and valuation models have been used�
Long-term financial assets
Long-term financial assets consist of unlisted share investments and other receivables� Unquo
-
ted equity shares of EUR 13 thousand are classified as level 3 in the fair value measurement
hierarchy� �
Short-term financial assets
Trade and other receivables are measured at amortized cost less impairment losses� Financial
assets arising from derivative financial instruments of EUR 794 thousand are classified as
level 2�
Long-term financial liabilities
Long-term loans from financial institutions consist of a loan from Macquarie Principal Finance
PTY Limited, UK Branch and other institutions� The terms of the debt facility with Macquarie
Principal Financing PTY Limited was ammended effective 12th of July 2021� Fair value of the
loan from Macquarie Principal Finance PTY is measured to reflect the amount the Group would
need to pay if it would repay the loan in full at the end of reporting period� The loan is classified
as level 2 in the fair value measurement hierarchy� The value of the loan as of 31 December,
2021 would approximately be 68�2 million euros if calculated based on discounted cash flows�
Other loans are at fixed or variable rate and their fair values are considered to correspond to
the book values as divergences between the values are assessed as immaterial�
Short-term financial liabilities
The fair values of short-term loans from financial institutions are considered to correspond to
the book values� Trade payables and other liabilities are measured at amortized cost� Financial
liabilities arising from derivative financial instruments of EUR 54 thousand are classified as
level 2�
The maturity distribution of financial liabilities is presented in Note 18�
23. Auditor fees
EUR THOUSAND 1.1.-31.12.2021 1.1.-31.12.2020
Audit fees -277 -258
Tax consultancy -1 0
Other fees and services -5 -4
Auditor fees total -283 -262
24. Commitments and contingent liabilities
EUR THOUSAND 31.12.2021 31.12.2020
Own guarantees
Guarantees 1,052 1,262
Business mortgage 86,200 0
Commitments on behalf of subsidiaries
Guarantees 862 822
Other commitments
Maturing in less than 1 year 2,831 3,455
Maturing in 1-5 years 572 2,876
Maturing later than 5 years 2 0
Tota l 3,405 6,331
Commitments and contingent liabilities total 91,518 8,415
Other commitments include leases and other rental not in scope of IFRS 16, as well as com-
mitments arising from license agreements� Obligations from long term service agreements
are not included� The group does not have pledges, mortgages or guarantees on behalf of
external parties�

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92
On July 12, Basware completed an amendment agreement of its debt facility with Macquarie
Principal Financing PTY Limited, effective 12th of July 2021� Under the amendment, the debt
facility type was changed to a senior secured debt facility which will be due September 2024
in line with the facility’s original maturity and has a non-call of 24 months� As a security for
the debt facility mortgage notes with a total nominal of EUR 86�2 million were pledged to the
lender�
The Group has committed to enter into a lease agreement with expected cash outflows during
the coming year� When this occurs, the Group is exposed to potential cash outflows that are not
now disclosed in the measurement of rental liabilities or other commitments�
In addition, Basware has an asset of EUR 5,000 thousand in a pledged bank account that is
related to the guarantee the Company has from Garantia for its multi-issuer bond�
The Group’s Indian subsidiary is in receipt of Show Cause Notice pertaining to Indian financial
year 2017-2018 and 2018-2019 for goods and service tax liability and if services are considered
to be Intermediary services or export of services� This issue is related to a substantial number
of global IT companies operating in India� As a result of the analysis made based on the recent
circular No� 159/15/2021 dated 20 September 2021 issued by Central Board of Indirect Taxes
(CBIC), it has been concluded by the Group that software development services provided by
Basware India to Basware Oyj would qualify as export of services� The Group has not recorded
any provision related to the Notice as the Group considers it to be more likely than not that it
will not realize�
25. Shares in subsidiaries
Domicile Country Group holding, %
Basware International Oy Espoo Finland 100
Basware GmbH Düsseldorf Germany 100
Basware AB Stockholm Sweden 100
Basware B�V� Amsterdam Netherlands 100
Basware A/S Herlev Denmark 100
Basware, Inc� Delaware United States 100
Basware SAS Paris France 100
Basware AS Oslo Norway 100
Basware Pty Ltd Chatswood Australia 100
Basware SRL Iasi Romania 100
Basware India Private Limited Chandigarh India 100
Basware Belgium NV Aalst Belgium 100
Basware Holdings Ltd� London Great Britain 100
Basware Shared Services Ltd� London Great Britain 100
Foreign branches
The parent company has a branch office in Russia, Moscow (reg�no� 16926�1)�
Basware GmbH is exempt from the duty of corporations to audit and disclose financial state
-
ments pursuant to German legislation (§ 264 III HGB)�
26. Events after the reporting period
After the balance sheet date, no significant events have taken place within the Group�

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Parent company income statement (FAS) Parent company balance sheet (FAS)
EUR Note 1.1.-31.12.2021 1.1.-31.12.2020
NET SALES 2 75,308,359.44 76,404,254.64
Other operating income 3 15,536�52 104,306�00
Materials and services 4 -16,325,836�33 -16,603,144�76
Employee benefits expenses 5 -28,612,352�29 -27,577,060�55
Depreciation and amortization 6 -10,199,482�36 -9,754,876�74
Other operating expenses 7 -20,929,989�17 -24,205,080�20
Operating profit/loss -743,764.19 -1,631,601.61
Financial income 8 834,932�24 886,438�27
Financial expenses 8 -20,290,644�39 -11,530,950�03
Dividend from group companies 794,821�86 200,000�00
Impairment on investments 8 0�00 -17,884�00
Profit/loss before appropriation and taxes -19,404,654.48 -12,093,997.37
Income tax expense 9 0�00 0�00
PROFIT/LOSS FOR THE PERIOD -19,404,654.48 -12,093,997.37
EUR Note 31.12.2021 31.12.2020
ASSETS
Non-current assets
Intangible assets 10 34,389,564�65 36,566,585�97
Tangible assets 11 653,149�67 677,978�80
Investments 12 103,515,446�52 107,583,005�73
Long-term trade and other receivables 13 5,987,351�20 645,316�57
Non-current assets 144,545,512.04 145,472,887.07
Current assets
Short-term trade and other receivables 14 21,808,245�72 23,008,460�06
Cash and cash equivalents 22,111,900�02 32,370,471�67
Current assets 43,920,145.74 55,378,931.73
TOTAL ASSETS 188,465,657.78 200,851,818.80
EQUITY AND LIABILITIES
Shareholders' equity
Share capital 3,528,368�70 3,528,368�70
Share premium account 1,118,161�00 1,118,161�00
Fair value reserve 450,412�66 -357,511�42
Other reserves 115,939,220�13 115,939,220�13
Retained earnings -47,243,286�26 -35,149,288�89
Result for the period -19,404,654�48 -12,093,997�37
Shareholders' equity 15 54,388,221.75 72,984,952.15
Liabilities
Long-term liabilities 16 70,958,990�48 68,901,805�96
Short-term liabilities 17 63,118,445�55 58,965,060�69
Total liabilities 134,077,436�03 127,866,866�65
TOTAL EQUITY AND LIABILITIES 188,465,657.78 200,851,818.80
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93

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Parent company cash flow statement (FAS)
EUR 1.1.-31.12.2021 1.1.-31.12.2020
Cash flow from operating activities
Result for the period -19,404,654�48 -12,093,997�37
Adjustments for result
Planned depreciations 10,199,482�36 9,754,876�74
Proceeds from sale of non-current assets 0�00 46,177�46
Unrealized exchange gains and losses 100,286�43 810,886�35
Finance income and expenses 18,540,986�58 9,684,729�72
Other non-cash items -465,602�69 -766,477�46
Working capital changes 759,165�79 -8,736,187�40
Interest paid -2,839,758�57 -72,669�22
Dividends received 795,398�82 700,000�00
Interest received 156,022�23 381,335�11
Other financial items in operating activities -338,048�50 -426,385�25
Net cash from operating activities 7,503,277.97 -717,711.32
Cash flow from investing activities
Purchase of tangible and intangible assets -8,092,503�40 -8,816,475�72
Proceeds from sale of tangible and intangible assets 0�00 6,500�00
Investments in group companies -1,100,000�00 0�00
Proceeds from repayments of loans 5,168,220�28 6,356,996�74
Movements in short-term deposits and fixes deposits -5,000,000�00 0�00
Addition / deduction of cash equivalents 169,522�16 817,979�14
Net cash used in investing activities -8,854,760.96 -1,634,999.84
Cash flow before financing activities -1,351,482�99 -2,352,711�16
The company includes intra-group accounts in the financing activities�
EUR 1.1.-31.12.2021 1.1.-31.12.2020
Cash flow from financing activities
Repayment of current borrowings -1,995,972�00 -1,995,972�00
Addition / deduction of current borrowings 4,263,928�51 13,791,066�35
Proceeds from borrowings 0�00 1,446,904�88
Repayment of non-current borrowings -11,175,045�17 0�00
Net cash used in financing activities -8,907,088.66 13,241,999.23
Net change in cash and cash equivalents -10,258,571.65 10,889,288.07
Cash and cash equivalents at the beginning of period 32,370,471�67 21,481,183�60
Cash and cash equivalents at the end of period 22,111,900.02 32,370,471.67
Stories Reports Financial statements Key figures Information for shareholders
94

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NOTES TO THE PARENT COMPANY FINANCIAL STATEMENTS (FAS)
1. Accounting principles
Basware Corporation’s financial statements have been prepared in accordance with the Finnish
Accounting Act�
Transactions in foreign currencies
Transactions in foreign currencies are recorded at the exchange rates prevailing at the
transaction dates� The unsettled balances on foreign currency receivables and liabilities
are valued at the rates of exchange prevailing at the end of the accounting period� Foreign
exchange gains and losses related to normal business operations are entered in the appropriate
income statement account before operating profit and foreign exchange gains and losses
associated with financing are entered as a net amount under financial income and expenses�
Revenue recognition
Parent company applies the same revenue recognition principles as the Group� Revenue
recognition principles of the Group are presented in Note 2�
Other operating income
Other operating income includes proceeds from the sale of business operations and property,
plant and equipment and rental income�
Research and development costs
Research expenses are booked as an expense as they are incurred� Costs related to the
adoption of new technology or development of a new generation of projects are capitalized,
recognized and amortized over the useful life of 3–5 years� In determining the useful life, the
obsolescence of technology and the typical life cycle of products in the industry are taken
into consideration� Amortization starts once the product is ready for commercial utilization�
Maintenance of existing products and minor enhancements are recognized as they are incurred�
Public subsidies related to research and development are recognized through profit or loss in
the periods during which the corresponding costs are recognized as expenses�
Pensions
The statutory pension coverage for employees is provided through insurance policies taken out
with a pension institution� The statutory pension expenses are recognized as expenses in the
year they are incurred�
Intangible assets
Intangible assets are recognized at the original acquisition cost less accumulated amortization
according to plan and possible impairment� Public subsidies related to the acquisition of an
intangible asset are deducted from the acquisition cost of the asset and recognized as income
by reducing the amortization of the asset they are related to� The expected useful lives of
intangible assets are 3–10 years� The useful lives are reviewed at the end of each financial year
and are adjusted if needed�
Tangible assets
Tangible assets are recognized in the balance sheet at the original acquisition cost less accumu
-
lated depreciation�
The useful lives of tangible assets are 3–5 years�
Investments
The company’s subsidiary shares and other shares in the investments in non-current assets are
valued at acquisition cost or, if lower, at fair value�
Financial instruments
Financial instruments are recognized at fair value in accordance with Accounting Act section
5: 2a� The accounting principles of hedge accounting are presented in Note 18 and Note 22
of group financial statements�
Provisions
A provision is recognized when the Group has a present legal or constructive obligation as a
result of a past event, it is probable that the obligation will have to be settled, and the amount
of the obligation can be reliably estimated�
Leases
Leasing payments are recognized as annual expenses�
Income taxes
Income taxes are recognized in accordance with Finnish tax legislation�
Income taxes include the income tax payments for the period based on the profit for the period,
taxes for prior periods and tax refunds� Deferred taxes are not included in the parent’s income
statement and balance sheet�
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95

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2. Net sales
Net sales by revenue type
Below is a breakdown of revenue by type� Revenue by type is not directly comparable with
group revenue because figures reported by parent company include intra-group revenue�
3. Other operating income
4. Materials and services
EUR THOUSAND 1.1-31.12.2021 1.1-31.12.2020
Cloud revenue
SaaS 39,485 35,349
Transaction services 23,614 23,871
Other cloud revenue 83 60
Cloud revenue total 63,182 59,281
Non-cloud revenue
Maintenance 4,459 9,682
License sales 74 193
Consulting services 7,457 7,518
Other non-cloud revenue 136 -269
Other than cloud revenue total 12,127 17,124
Revenue total 75,308 76,404
EUR THOUSAND 1.1.-31.12.2021 1.1.-31.12.2020
Gain on sale of assets 7 23
Other operating income 8 81
Other operating income total 15 104
EUR THOUSAND 1.1.-31.12.2021 1.1.-31.12.2020
Purchases during the financial period -15,754 -15,614
Services purchased -571 -989
Tota l -16,326 -16,603
EUR THOUSAND 1.1-31.12.2021 1.1-31.12.2020
Finland 36,633 36,315
Export 38,675 40,089
Tota l 75,308 76,404
Net sales by location of customer
Salaries and fees paid to each member of the management are detailed in Note 5 to the
consolidated financial statement�
5. Personnel and employee benefits
EUR THOUSAND 1.1-31.12.2021 1.1-31.12.2020
Salaries paid to CEO and the Board of Directors -1,524 -817
Salaries paid to other personnel -22,233 -22,715
Pension expenses -3,996 -3,139
Other personnel expenses -859 -906
Tota l -28,612 -27, 57 7
Personnel expenses
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1.1-31.12.2021 1.1-31.12.2020
Personnel average for the period 340 347
Personnel at the end of the period 335 346
Number of personnel
6. Depreciation and amortization
8. Finance income and expenses
7. Other operating expenses
EUR THOUSAND 1.1.-31.12.2021 1.1.-31.12.2020
Intangible assets -10,005 -9,565
Tangible assets -195 -190
Tota l -10,199 -9,755
EUR THOUSAND 1.1.-31.12.2021 1.1.-31.12.2020
Other interest and financial income
From group companies 358 845
From others 477 41
Other interest and financial income 835 886
Interest and financial expenses
To group companies -623 -1,283
To others -19,668 -10,248
Impairment on investments 0 -18
Other interest and financial expenses total -20,291 -11,549
Tota l -19,456 -10,663
EUR THOUSAND 1.1.-31.12.2021 1.1.-31.12.2020
Income taxes from previous financial periods 0 0
Tota l 0 0
EUR THOUSAND 1.1.-31.12.2021 1.1.-31.12.2020
Rents -1,425 -1,376
Non-statutory employee benefits -412 -387
Travelling -137 -313
Marketing -4,824 -3,531
IT and telephone -920 -904
Auditor fees -198 -171
Other expenses -13,013 -17,523
Other operating expenses total -20,930 -24,205
Audit fees -193 -167
Tax consultancy 0 0
Other fees and services -5 -4
Audit fees total -198 -171
9. Direct taxes
The deferred tax asset arising from accumulated losses total of 5�6 (6�4) million euros has not
been recognized on the balance sheet� In addition, the company has non-deductible interests
in total of 26�1 (17�2) million euros for which deferred tax asset has not been recognized on the
balance sheet� The postponed R&D amortizations 7�0 (5�2) million euros are booked as deferred
tax asset on the Group balance sheet�
Income taxes have been recognized in accordance with Finnish tax legislation�
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10. Intangible assets
Intangible assets 2021
Intangible assets 2020
EUR THOUSAND Development costs Intangible rights Goodwill/merger loss
Other long-term
investments
Assets, unfinished
projects Tot al
Acquisition cost Jan� 1 65,652 18,496 17,625 288 14,044 116,104
Additions 321 391 0 28 7,1 78 7,9 1 9
Disposals -6,337 -7,134 0 0 0 -13,471
Reclassifications between items 5,701 0 0 0 -5,701 0
Acquisition cost Dec. 31 65,337 11,753 17,625 317 15,520 110,552
Cumulative amortization Jan� 1 -45,771 -16,035 -17,625 -107 0 -79,538
Cumulative amortization on disposals and reclassifications 6,246 7,134 0 0 0 13,380
Amortization -9,265 -706 0 -34 0 -10,005
Cumulative amortization Dec. 31 -48,790 -9,607 -17,625 -140 0 -76,163
Book value Dec. 31 16,547 2,146 0 176 15,520 34,389
EUR THOUSAND Development costs Intangible rights Goodwill/merger loss
Other long-term
investments
Assets, unfinished
projects Tot al
Acquisition cost Jan� 1 63,503 17,846 17,625 288 8,118 107,380
Additions 74 4 650 0 0 7, 3 3 0 8,725
Disposals 0 0 0 0 0 0
Reclassifications between items 1,405 0 0 0 -1,405 0
Acquisition cost Dec. 31 65,652 18,496 17,625 288 14,044 116,104
Cumulative amortization Jan� 1 -37, 55 1 -14,726 -17,625 -72 0 -69,973
Cumulative amortization on disposals and reclassifications 0 0 0 0 0 0
Amortization -8,220 -1,309 0 -35 0 -9,565
Cumulative amortization Dec. 31 -45,771 -16,035 -17,625 -107 0 -79,538
Book value Dec. 31 19,881 2,460 0 182 14,044 36,566
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11. Tangible assets 12. Investments
Tangible assets 2021
Tangible assets 2020
EUR THOUSAND
Machinery and
equipment
Other tangible
assets To tal
Acquisition cost Jan� 1 6,898 152 7,050
Additions 170 0 170
Disposals -3,061 0 -3,061
Acquisition cost Dec. 31 4,007 152 4,159
Cumulative depreciation Jan� 1 -6,372 0 -6,372
Cumulative depreciation on disposals
and reclassifications 3,061 0 3,061
Depreciation -195 0 -195
Cumulative depreciation Dec. 31 -3,506 0 -3,506
Book value Dec. 31 501 152 653
EUR THOUSAND 1.1.-31.12.2021 1.1.-31.12.2020
Shares in group companies
Book value Jan� 1 98,075 98,075
Increase 3,352 0
Book value Dec. 31 101,427 98,075
Other shares
Book value Jan� 1 13 13
Book value Dec. 31 13 13
Receivables from group companies
Loan receivables from group companies 2,075 9,495
Investments total 103,515 107,583
EUR THOUSAND
Machinery and
equipment
Other tangible
assets To tal
Acquisition cost Jan� 1 6,954 152 7,1 07
Additions 49 0 49
Disposals -106 0 -106
Acquisition cost Dec. 31 6,898 152 7,050
Cumulative depreciation Jan� 1 -6,287 0 -6,287
Cumulative depreciation on disposals
and reclassifications 106 0 106
Depreciation -190 0 -190
Cumulative depreciation Dec. 31 -6,372 0 -6,372
Book value Dec. 31 526 152 678
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Subsidiary shares
Domicile Country
Parent company
holding, %
Basware International Oy Espoo Finland 100
Basware GmbH Düsseldorf Germany 100
Basware AB Stockholm Sweden 100
Basware B�V� Amsterdam Netherlands 100
Basware A/S Herlev Denmark 100
Basware Inc� Delaware United States 100
Basware SAS Paris France 100
Basware AS Oslo Norway 100
Basware Pty Ltd Chatswood Australia 100
Basware SRL Iasi Romania 100
Basware India Private Limited Chandigarh India 99
Basware Belgium NV Aalst Belgium 99
Basware Holdings Ltd� London Great Britain 100
Basware Shared Services Ltd� London Great Britain 100
Foreign branches
The parent company has a branch office in Russia, Moscow (reg�no� 16926�1)�
13. Non-current receivables
14. Current receivables
EUR THOUSAND 31.12.2021 31.12.2020
Rent deposits 7 7
Accrued employee expenses and other prepaid expenses 980 638
Pledged bank account 5,000 0
Tota l 5,987 645
EUR THOUSAND 31.12.2021 31.12.2020
Accounts receivables 6,463 5,662
Receivables from group companies
Accounts receivables 7,275 10,262
Interest receivables 0 0
Loan receivables 147 317
Other receivables 2,887 2,910
Tota l 10,309 13,488
Prepaid expenses and accrued income 4,204 3,698
Other receivables 833 159
Tota l 5,036 3,858
Current receivables total 21,808 23,008
Prepaid expenses and accrued income
Accrued employee expenses 2 7
Other prepaid expenses and accrued income 4,202 3,692
Tota l 4,204 3,698
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15. Shareholders' equity
EUR THOUSAND 31.12.2021 31.12.2020
Share capital Jan� 1 3,528 3,528
Share capital Dec. 31 3,528 3,528
Share premium account Jan� 1 1,118 1,118
Share premium account Dec. 31 1,118 1,118
Fair value reserve Jan� 1 -358 77
Increase or decrease 808 -435
Fair value reserve Dec. 31 450 -358
Restricted Equity Dec. 31 5,097 4,289
Invested non-restricted equity Jan� 1 115,939 116,037
Decrease of treasury shares 0 -98
Invested non-restricted equity Dec. 31 115,939 115,939
Retained earnings Jan� 1 -47,243 -35,246
Decrease of treasury shares 0 98
Profit for the period -19,405 -12,094
Retained earnings Dec. 31 -66,648 -47,243
Non-restricted equity Dec. 31 49,291 68,696
Shareholders' equity Dec. 31 54,388 72,985
EUR THOUSAND 31.12.2021 31.12.2020
Specification of distributable funds
Profit for the period -19,405 -12,094
Retained earnings -47,243 -35,148
Other distributable funds 115,939 115,939
Warrants -4,691 -4,691
Development expenses, capitalized* -32,067 -33,925
Distributable funds Dec. 31 12,533 30,080
* According to Accounting Act 5:8 capitalized development expenses are deducted from distributable
funds�
Warrants are detailed in Note 19� Shareholders' equity in the consolidated financial statement�
16. Non-current liabilities
EUR THOUSAND 1.1.-31.12.2021 1.1.-31.12.2020
Loans from financial institutions 70,227 66,665
Deferred income 555 613
Debts to group companies 177 1,624
Non-current liabilities total 70,959 68,902
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17. Current liabilities
18. Commitments and contingent liabilities
EUR THOUSAND 31.12.2021 31.12.2020
Own guarantees
Guarantees 399 398
Business mortgage 86,200
Commitments on behalf of subsidiaries
Guarantees 862 822
EUR THOUSAND 31.12.2021 31.12.2020
Accounts payable 6,220 5,145
Liabilities to group companies
Accounts payable 1,291 2,345
Other debts 38,914 34,709
Tota l 40,205 37,054
Loans from financial institutions 998 1,996
Other debts 1,373 1,363
Accrued expenses and deferred income 14,323 13,408
Tota l 16,693 16,767
Current liabilities total 63,118 58,965
Accrued expenses and deferred income
Accrued employee expenses 8,125 7,787
Deferred income 1,841 3,683
Other accrued expenes 4,357 1,938
Tota l 14,323 13,408
EUR THOUSAND 31.12.2021 31.12.2020
Other own contingent liabilities
Leasing liabilities
Current lease liabilities 306 299
Lease liabilities maturing in 1–5 years 344 190
Tota l 651 489
Rental liabilities*
Current rental liabilities 3,719 4,380
Rental liabilities maturing in 1- 5 years 4,687 7,278
Rental liabilities maturing over 5 years 0 1,048
Tota l 8,407 12,706
Other own contingent liabilities total 9,057 13,196
Commitments and Contingent Liabilities total 96,518 14,416
*Value added tax is only included in vehicle leasing liabilities� The other liabilities are exclusive
of value added tax� The lease agreements are ordinary lease agreements� The finance lease
agreements are ordinary finance lease agreements and have no associated leaseback clauses�
The group does not have pledges, mortgages or guarantees on behalf of external parties�
On July 12, Basware completed an amendment agreement of its debt facility with Macquarie
Principal Financing PTY Limited, effective 12th of July 2021� Under the amendment, the debt
facility type was changed to a senior secured debt facility which will be due September 2024 in
line with the facility’s original maturity and has a non-call of 24 months� As a security for the
debt facility mortgage notes with an total nominal of EUR 86�2 million where pledged to the
lender�
In addition, Basware has an asset of EUR 5,000 thousand in a pledged bank account that is
related to the guarantee the Company has from Garantia for its multi-issuer bond�
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SIGNATURES FOR THE BOARD OF DIRECTORS' REPORT
AND FINANCIAL STATEMENTS
In Espoo, February 2, 2022
Michael Ingelög
Chair of the Board
Jonathan Meister
Member of the Board
Ilkka Sihvo
Vice Chair of the Board
Carl Farrell
Member of the Board
Daryl Rolley
Member of the Board
The Auditor's Note
A report on the audit performed has been issued today�
Helsinki 2�2�2022
Ernst & Young Oy
Authorized Public Accountant Firm
Terhi Mäkinen
Authorized Public Accountant
Minna Smedsten
Member of the Board
Klaus Andersen
CEO
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AUDITOR’S REPORT (TRANSLATION OF THE
FINNISH ORIGINAL)
To the Annual General Meeting of Basware Corporation
Report on the Audit of the Financial Statements
Opinion
We have audited the financial statements of Basware Corporation (business identity code
0592542-4) for the year ended 31 December, 2021� The financial statements comprise the
consolidated balance sheet, statement of comprehensive income, statement of changes in
equity, statement of cash flows and notes, including a summary of significant accounting
policies, as well as the parent company’s balance sheet, income statement, statement of cash
flows and notes�
In our opinion
• the consolidated financial statements give a true and fair view of the group’s financial
position as well as its financial performance and its cash flows in accordance with Interna
-
tional Financial Reporting Standards (IFRS) as adopted by the EU�
• the financial statements give a true and fair view of the parent company’s financial perfor
-
mance and financial position in accordance with the laws and regulations governing the
preparation of financial statements in Finland and comply with statutory requirements�
Our opinion is consistent with the additional report submitted to the Audit Committee�
Basis for Opinion
We conducted our audit in accordance with good auditing practice in Finland� Our responsibili
-
ties under good auditing practice are further described in the Auditor’s Responsibilities for the
Audit of the Financial Statements section of our report�
We are independent of the parent company and of the group companies in accordance with the
ethical requirements that are applicable in Finland and are relevant to our audit, and we have
fulfilled our other ethical responsibilities in accordance with these requirements�
In our best knowledge and understanding, the non-audit services that we have provided to the
parent company and group companies are in compliance with laws and regulations applicable
in Finland regarding these services, and we have not provided any prohibited non-audit
services referred to in Article 5(1) of regulation (EU) 537/2014� The non-audit services that we
have provided have been disclosed in note 23 to the consolidated financial statements and
note 7 to the parent company financial statements�
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a
basis for our opinion�
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most
significance in our audit of the financial statements of the current period� These matters were
addressed in the context of our audit of the financial statements as a whole, and in forming our
opinion thereon, and we do not provide a separate opinion on these matters�
We have fulfilled the responsibilities described in the Auditor’s responsibilities for the audit
of the financial statements section of our report, including in relation to these matters�
Accordingly, our audit included the performance of procedures designed to respond to our
assessment of the risks of material misstatement of the financial statements� The results of our
audit procedures, including the procedures performed to address the matters below, provide
the basis for our audit opinion on the accompanying financial statements�
We have also addressed the risk of management override of internal controls� This includes
consideration of whether there was evidence of management bias that represented a risk of
material misstatement due to fraud�
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KEY AUDIT MATTER HOW OUR AUDIT ADDRESSED THE KEY AUDIT MATTER
Valuation of Goodwill
We refer to the Group’s accounting policies and the note 3
At the balance sheet date 31 December 2021, the value of goodwill amounted to EUR 80 million
representing 36% of total assets and 110% of total equity (2020: EUR 77 million, 34% of total
assets and 93% of total equity)� The valuation of goodwill was a key audit matter as:
• the management’s annual impairment test is complex and involves judgments;
• the annual impairment test is based on market and economical assumptions;
• the goodwill balance is significant�
The cash flows of the cash generating unit is based on the value in use� Changes in the
assumptions used can significantly impact the value in use� The value in use is dependent on
several assumptions such as the revenue growth, operating profit and discount rate used�
Changes in these assumptions can lead to an impairment�
Our audit procedures included, among others, involving internal valuation specialist to assist us
in evaluating the assumptions and methodologies used by the group including those related to
forecasted revenue, operating profit and the weighted average cost of capital used in discoun-
ting the cash flows�
We reviewed the sensitivity in the available headroom by cash generating unit and focused on
whether any reasonably possible change in assumptions could cause the carrying amount to
exceed its recoverable amount�
We compared the historical forecasting of the group with actual outcome and we compared
projections to the latest estimates approved by the board� We checked the mathematical
accuracy of the underlying calculations�
We compared the groups’ disclosures related to impairment tests in note 3 in the financial
statements with presentation requirements in applicable accounting standards and we reviewed
the information provided on sensitivity analysis�
Revenue Recognition
We refer to the Group’s accounting policies and the note 2
Sales are recognized when the control of the goods or service is transferred to the customer�
Revenue is recognized at an amount that reflects the considerations to which the company
expects to be entitled in exchange for transferring goods or services to a customer� Revenue is
recognized over time or at a point in time�
The group focuses on revenue as a key performance measure which could create an incentive
for revenue to be recognized before the control have been transferred� Revenue recognition
was determined to be a key audit matter and a significant risk of material misstatement
referred to in EU Regulation No 537/2014, point (c) of Article 10(2) due to the identified risk of
material misstatement in timely revenue recognition�
Our audit procedures, considering the significant risk of material misstatement related to
revenue recognition, included amongst other:
• assessing the application of group’s accounting policies over revenue recognition and
comparing the group’s accounting policies over revenue recognition with applicable
accounting standards;
• identifying the nature of the revenues and identification of any unusual contract terms;
• testing the revenue recognized including testing of group’s controls on revenue recognition,
when applicable� Our testing included tracing the information to agreements and payments�
• assessing the revenue recognized with substantive analytical procedures and
• assessing the group’s disclosures on revenue recognition�
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Responsibilities of the Board of Directors and the Managing Director
for the Financial Statements
The Board of Directors and the Managing Director are responsible for the preparation of
consolidated financial statements that give a true and fair view in accordance with Interna
-
tional Financial Reporting Standards (IFRS) as adopted by the EU, and of financial statements
that give a true and fair view in accordance with the laws and regulations governing the
preparation of financial statements in Finland and comply with statutory requirements� The
Board of Directors and the Managing Director are also responsible for such internal control as
they determine is necessary to enable the preparation of financial statements that are free
from material misstatement, whether due to fraud or error�
In preparing the financial statements, the Board of Directors and the Managing Director are
responsible for assessing the parent company’s and the group’s ability to continue as going
concern, disclosing, as applicable, matters relating to going concern and using the going
concern basis of accounting� The financial statements are prepared using the going concern
basis of accounting unless there is an intention to liquidate the parent company or the group
or cease operations, or there is no realistic alternative but to do so�
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance on whether the financial statements as
a whole are free from material misstatement, whether due to fraud or error, and to issue an
auditor’s report that includes our opinion� Reasonable assurance is a high level of assurance, but
is not a guarantee that an audit conducted in accordance with good auditing practice will always
detect a material misstatement when it exists� Misstatements can arise from fraud or error and
are considered material if, individually or in aggregate, they could reasonably be expected to
influence the economic decisions of users taken on the basis of the financial statements�
As part of an audit in accordance with good auditing practice, we exercise professional judgment
and maintain professional skepticism throughout the audit� We also:
• Identify and assess the risks of material misstatement of the financial statements, whether
due to fraud or error, design and perform audit procedures responsive to those risks, and
obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion�
The risk of not detecting a material misstatement resulting from fraud is higher than for
one resulting from error, as fraud may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control�
• Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing
an opinion on the effectiveness of the parent company’s or the group’s internal control�
• Evaluate the appropriateness of accounting policies used and the reasonableness of
accounting estimates and related disclosures made by management�
• Conclude on the appropriateness of the Board of Directors’ and the Managing Director’s use
of the going concern basis of accounting and based on the audit evidence obtained, whether
a material uncertainty exists related to events or conditions that may cast significant
doubt on the parent company’s or the group’s ability to continue as a going concern� If
we conclude that a material uncertainty exists, we are required to draw attention in our
auditor’s report to the related disclosures in the financial statements or, if such disclosures
are inadequate, to modify our opinion� Our conclusions are based on the audit evidence
obtained up to the date of our auditor’s report� However, future events or conditions may
cause the parent company or the group to cease to continue as a going concern�
• Evaluate the overall presentation, structure and content of the financial statements,
including the disclosures, and whether the financial statements represent the underlying
transactions and events so that the financial statements give a true and fair view�
• Obtain sufficient appropriate audit evidence regarding the financial information of the
entities or business activities within the group to express an opinion on the consolidated
financial statements� We are responsible for the direction, supervision and performance of
the group audit� We remain solely responsible for our audit opinion�
We communicate with those charged with governance regarding, among other matters, the
planned scope and timing of the audit and significant audit findings, including any significant
deficiencies in internal control that we identify during our audit�
We also provide those charged with governance with a statement that we have complied
with relevant ethical requirements regarding independence, and communicate with them all
relationships and other matters that may reasonably be thought to bear on our independence,
and where applicable, related safeguards�
From the matters communicated with those charged with governance, we determine those
matters that were of most significance in the audit of the financial statements of the current
period and are therefore the key audit matters� We describe these matters in our auditor’s
report unless law or regulation precludes public disclosure about the matter or when, in
extremely rare circumstances, we determine that a matter should not be communicated in
our report because the adverse consequences of doing so would reasonably be expected to
outweigh the public interest benefits of such communication�
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Other reporting requirements
Information on our audit engagement
We were first appointed as auditors by the Annual General Meeting on 14 February 2008, and
our appointment represents a total period of uninterrupted engagement of 14 years�
Other information
The Board of Directors and the Managing Director are responsible for the other information�
The other information comprises the report of the Board of Directors and the information
included in the Annual Report, but does not include the financial statements and our auditor’s
report thereon� We have obtained the report of the Board of Directors prior to the date of this
auditor’s report, and the Annual Report is expected to be made available to us after that date�
Our opinion on the financial statements does not cover the other information�
In connection with our audit of the financial statements, our responsibility is to read the
other information identified above and, in doing so, consider whether the other information is
materially inconsistent with the financial statements or our knowledge obtained in the audit, or
otherwise appears to be materially misstated� With respect to report of the Board of Directors,
our responsibility also includes considering whether the report of the Board of Directors has
been prepared in accordance with the applicable laws and regulations�
In our opinion, the information in the report of the Board of Directors is consistent with the
information in the financial statements and the report of the Board of Directors has been
prepared in accordance with the applicable laws and regulations�
If, based on the work we have performed on the other information that we obtained prior to
the date of this auditor’s report, we conclude that there is a material misstatement of this
other information, we are required to report that fact� We have nothing to report in this regard�
Other opinions on assignment of the Audit Committee
We support that the financial statements should be adopted� The proposal by the Board of
Directors regarding the use of the distributable funds shown in the financial statements is in
compliance with the Limited Liability Companies Act� We support that the Members of the
Board of Directors and the Managing Director of the parent company should be discharged
from liability for the financial period audited by us�
Helsinki 2�2�2022
Ernst & Young Oy
Authorized Public Accountant Firm
Terhi Mäkinen
Authorized Public Accountant
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GROUP KEY FINANCIAL PERFORMANCE INDICATORS
EUR THOUSAND 2021 2020 2019 2018 2017
Cloud ARR order intake 17,064 19,250 23,694 21,474 -
Net sales 153,155 151,579 148,302 141,417 149,167
Growth of net sales, % 1�00% 2�20% 4�90% -5�20% 0�40%
Organic revenue growth, % 0�90% 3�20% 5�90% 5�40% 1�50%
Operating profit 7,144 4,667 -14,537 -1,471 -9,509
% of net sales 4�70% 3�10%
EBITDA 22,828 20,207 1,403 9,217 599
% of net sales 14�90% 13�30% 0�90% 6�50% 0�40%
Adjusted EBITDA 23,186 20,359 5,185 -4,364 3,294
Return on equity, % -18�30% -8�30% -22�90% -6�30% -9�36%
Return on investment, % 4�30% 3�10% -8�60% -0�90% -5�77%
Interest-bearing liabilities excl� leasing liabilities 71,402 68,837 60,885 57,206 49,282
Cash and cash equivalents 31,060 40,461 31,672 4 0,747 20,683
Cash flows from operating activities 20,435 25,252 4,159 -6,261 -4,001
Gearing, % 72�50% 53�00% 48�90% 14�90% 25�24%
Gross investments 8,554 9,877 10,617 10,933 12,498
% of net sales 5�60% 6�50% 7�20% 7�70 % 8�40%
R&D expenses excluding amortizations 17,666 16,447 19,138 21,231 24,372
R&D costs, capitalised 7,569 8,372 8,829 8,862 9,879
R&D investments, total 25,235 24,819 27,967 30,093 34,251
% of net sales 16�50% 16�40% 18�90% 21�30% 23�00%
Depreciation and amortization 15,685 15,539 15,941 10,688 10,108
Other capitalised expenditure 985 1,505 1,788 2,071 2,620
Personnel at end of period 1,347 1,336 1,325 1,412 1,829
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GROUP SHARE INDICATORS
2021 2020 2019 2018 2017
Earnings per share, undiluted -0�99 -0�51 -1�63 -0�49 -0�80
Earnings per share, diluted -0�99 -0�51 -1�63 -0�49 -0�80
Adjusted earnings per share, undiluted
(EUR) -0�96 -0�50 -1�37 -1�44 -0�61
Adjusted earnings per share, diluted (EUR) -0�96 -0�50 -1�37 -1�44 -0�61
Equity per share 5�06 5�73 6�53 7�71 7�89
Dividend per share 0,00* 0,00 0,00 0,00 0,00
Dividend per profit, % 0�00% 0�00% 0�00% 0�00% 0�00%
Effective dividends, % 0�00% 0�00% 0�00% 0�00% 0�00%
Price/Earnings ratio (P/E) -30�70 -82�56 -14�58 -80�20 -59�18
Share price performance, share issue
adjusted
lowest share price 28�25 15�66 16�76 19�75 31�96
highest share price 43�85 42�85 41�10 47�60 47�50
average share price 37� 4 3 29�58 23�61 34�00 38�84
closing share price 30�25 42�00 23�75 39�50 47�50
Market value of shares at end of period** 437,293,788 605,449,320 341,943,926 567,633,802 682,085,892
Share issue adjusted number of traded
shares 4,162,965 4,817,685 4,204,444 3,005,479 1,681,791
% of average share number 28�60% 33�40% 29�20% 20�92% 11�70%
Number of shares**
- at end of the period 14,455,993 14,415,460 14,397,639 14,370,476 14,359,703
- average during the period 14,445,824 14,407,595 14,388,469 14,367,829 14,357,343
- average during the period, diluted 14,580,596 14,638,935 14,473,519 14,461,175 14,406,674
*) Board’s proposal to the Annual General Meeting of Shareholders
**) Excluding treasury shares
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CALCULATION OF KEY INDICATORS
EARNINGS PER SHARE
Profit for the period
Adjusted average number of shares during the period
DILUTED EARNINGS PER
SHARE
Profit for the period
Adjusted average number of shares during the period +
dilutive shares
DIVIDEND/PROFIT, %
Dividend per share
x 100
Earnings per share
Alternative performance measures
RETURN ON EQUITY (ROE),
%
(Profit or loss before taxes - taxes)
x 100
Shareholders' equity (average)
RETURN ON INVESTMENT
(ROI), %
(Profit before taxes + interest and other financial
expenses)
x 100
Balance sheet total - non-interest bearing liabilities
(average)
GEARING, %
(Interest-bearing liabilities - interest-bearing assets)
x 100
Shareholders' equity
EQUITY RATIO, %
Shareholders' equity
x 100
Balance sheet total - advance payments received
ADJUSTED EARNINGS PER SHARE (EPS)
is calculated by excluding from the profit/loss any adjustments related to alliance fees, acqui-
sitions and disposals, restructuring and efficiency measures, impairment losses and litigation
fees and settlements�
EQUITY PER SHARE
Shareholders' equity
x 100
Adjusted number of shares at the end of the financial
period - own shares
DIVIDEND PER SHARE
Total dividend
x 100
Adjusted number of shares at the end of the financial
period - own shares t
EFFECTIVE DIVIDEND
YIELD, %
Dividend per share
x 100
Adjusted share price at the end of the financial period
PRICE-EARNINGS RATIO
(P/E)
Adjusted share price at the end of the financial period
x 100
Earnings per share
ADJUSTED EBITDA
Adjusted EBITDA is reported excluding any adjustments related to alliance fees, acquisitions
and disposals, restructuring and efficiency measures, impairment losses and litigation fees and
settlements�
OPERATING PROFIT
Operating profit is the net sum of operating income added to net sales, less cost of sales
consisting of materials and services, less the costs resulting from employee benefits, depre
-
ciation and amortization as well as other operating expenses and any impairment� Exchange
rate differences and gains or losses arising from changes in the fair value of derivatives are
included in operating profit, provided that they result from items related to business operations;
otherwise they are recognized under financing items� All other items of the consolidated
statement of comprehensive income are presented after operating profit�
ADJUSTED OPERATING PROFIT (ADJUSTED EBIT)
Is calculated from operating result excluding any adjustments related to alliance fees, acqui-
sitions and disposals, restructuring and efficiency measures, impairment losses and litigation
fees and settlements�
GROSS INVESTMENTS
Total investments made to non-current assets including acquisitions and capitalized research
and development costs�
FREE CASH FLOW METRIC
Free cash flow is calculated as follows: EBITDA minus capitalizations, total debt service costs,
tax and payments of lease liabilities, and excluding the share part of share-based compensation�
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INFORMATION FOR
SHAREHOLDERS
111
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SHARE AND SHAREHOLDERS
Share
Basware shares are listed on Nasdaq Helsinki Ltd� The company has one series of shares, with
the trading code BAS1V�
Trading code BAS1V
ISIN code FI0009008403
Book-counter value EUR 0�30
Listing price on February 29, 2000 EUR 5�70
Closing price on December 31, 2021 EUR 30�25
At the end of 2021, the total number of shares issued by Basware was 14,463,936
(14,420,936)� Each share confers one vote in the general meeting of shareholders, and all
shares carry an equal right to dividend�
Share capital and trading
At the end of 2021, Basware Corporation's share capital was EUR 3,528,368�70 (EUR
3,528,368�70)�
During 2021, the highest price of the share was EUR 43�85 (EUR 42�85), the lowest was EUR
28�25 (EUR 15�66) and the closing price was EUR 30�25 (EUR 42�00)� The average price of the
share was EUR 37�43 (EUR 29�58) during the period�
A total of 4,162,965 (4,817,685) shares were traded on Nasdaq Helsinki stock exchange during
the period, corresponding to 28�6 percent (33�4%) of the average number of shares� Market
capitalization with the period’s closing price on December 31, 2021, was EUR 437,293,788 (EUR
605,449,320)�
The total amount of own shares held by the company on December 31, 2021 was 7,943 shares
(5,476 shares), representing approximately 0�1 percent (0�0%) of all outstanding shares�
Incentive schemes
Additional information on the share-based incentive schemes is available on the Group's
investor webpages at https://investors.basware.com/en/governance/compensation�
Shareholders
Basware had 11,533 (11,864) shareholders on December 31, 2021, of which 10 are nominee
registers� Nominee registered holdings accounted for 54�0 percent (56�4%) of the total number
of shares�
COUNTRY
Number of
shareholders
% of
shareholders
Number of
shares % of shares
Finland 11,375 98�6 6,095,464 42�1%
United States 37 0�3 4,085,870 28�2%
Sweden 17 0�1 1,844,118 12�7%
United Kingdom 14 0�1 432,138 3�0%
Germany 9 0�1 279,412 1�9%
Other 81 0�7 1,726,934 11�9%
Tota l 11,533 100.0 14,463,936 100
Number of
shareholders
% of
shareholders
Number of
shares % of shares
International institutions 10 0�1 7,812,930 54�0%
Finnish institutions 520 4�5 2,723,811 18�8%
Households 10,978 95�2 984,408 6�8%
Non-profit organizations 2 0�0 26,000 0�2%
Treasury 1 0�0 7,94 3 0�1%
Other 22 0�2 2,908,844 20�1%
Tota l 11,533 100 14,463,936 100
Of which nominee-registered 10 0�1 7,812,930 54�0
Distribution of holdings by country as at December 31, 2021
Distribution of holdings by sector as at December 31, 2021
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Number of
shares
% of all
shares
Michael Ingelög, Chair 8,347 0�1
Ilkka Sihvo, Vice-Chair 887,300 6�1
Daryl Rolley 3,786 0�0
Minna Smedsten 1,135 0�0
Carl Farrel 538 0�0
Jonathan Meister 538 0�0
Holdings of the Board of Directors in total 901,644 6.2
Klaus Andersen, CEO 18,984 0�1
Martti Nurminen, CFO 0 0�0
Jane Broberg 5,482 0�0
Lars Madsen 7, 896 0�1
Perttu Nihti 2,197 0�0
Mogens Pedersen 1,500 0�0
Alwin Schauer 0 0�0
Executive Team holdings in total 36,059 0.3
Major shareholders as at December 31, 2021 Holdings of the Board of Directors and the Executive Team as at December 31, 2021
On December 31, 2021, the members of the Board of Directors and Executive Team held in total
937,703 company shares, accounting for 6�5 percent of the total number of shares and votes�
Number of
shares % of shares
1� Long Path Partners 1,462,776 10�1
2� Lannebo Fonder 1,316,479 9�1
3� Ilkka Sihvo 887,300 6�1
4� Briarwood Chase Management 635,352 4�4
5� Hannu Vaajoensuu 560,446 3�9
6� Artisan Partners 492,073 3�4
7� Fourth Swedish National Pension Fund 469,873 3�3
8� Ilmarinen Mutual Pension Insurance Company 420,830 2�9
9� Janus Henderson Investors 420,508 2�9
10� Teton Capital 39 1 ,974 2�7
11� Kirsi Eräkangas 390,313 2�7
12� Capital Group 380,200 2�6
13� The State Pension Fund of Finland 306,000 2�1
14� Sakari Perttunen 301,121 2�1
15� Sp-Fund Management Company 290,612 2�0
16� Allianz Global Investors 276,231 1�9
17� Veritas Pension Insurance Company 241,102 1�7
18� OP Fund Management Company 189,333 1�3
19� Franklin Templeton 182,574 1�3
20� Antti Pöllänen 161,454 1�1
Total 20 largest shareholders 9,776,551 67. 6
Nominee registered total 7,812,930 54�0
Tota l 14,463,936 100.0
Source: Datablocks by Modular Finance AB. Compiled and processed data from various sources,
including Euroclear Finland and Morningstar.
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FOR SHAREHOLDERS
Annual General Meeting 2022
The Annual General Meeting of Basware Corporation will be held on 22 March 2022 at 3:00
p�m� EET� The meeting will be held under special arrangements without shareholders’ or their
proxy representatives’ presence in the company’s headquarters, at the address Linnoitustie
2, Building Cello, 02600 Espoo� The Board of Directors of the company has resolved on an
exceptional meeting procedure based on the Act temporarily amending the Companies Act and
certain other community laws (375/2021, the “Temporary Act”)� In order to limit the spread of
the Covid-19 pandemic, the Annual General Meeting will be held without shareholders’ or their
proxy representatives’ presence at the meeting venue� This is necessary in order to organize
the General Meeting in a predictable way while taking into account the health and safety of the
company’s shareholders, personnel and other stakeholders�
Each shareholder, who is registered on 10 March 2022 in the shareholders' register of the
company held by Euroclear Finland Ltd, has the right to participate in the General Meeting�
A shareholder, whose shares are registered on his/her personal Finnish book-entry account,
is registered in the shareholders' register of the company� Registration for the meeting and
advance voting begin on 17 February 2022 at 9:00 a�m� EET, when the deadline for delivering
counterproposals has expired and the company has published the possible counterproposals to
be put to a vote on the company’s website� A shareholder entered in the company's shareholder
register, who wishes to participate in the General Meeting by voting in advance, must register
for the General Meeting and deliver his/her votes in advance on 16 March 2022 at 4:00 p�m� EET
at the latest, by which time the notice of participation and the votes must be received�
Shareholders with a Finnish book-entry account can register and vote in advance on certain
items on the agenda of the General Meeting during the period 17 February 2022 at 9:00 a�m�
EET–16 March 2022 at 4:00 p�m� EET� Instructions regarding the voting are available to share
-
holders on the company’s website at http://investors.basware.com/en�
A holder of nominee registered shares has the right to participate in the General Meeting by
virtue of such shares, based on which he/she on the record date of the General Meeting, i�e� on
10 March 2022, would be entitled to be registered in the shareholders' register of the company
held by Euroclear Finland Ltd� The right to participate in the Annual General Meeting requires,
in addition, that the shareholder on the basis of such shares has been temporarily registered
into the shareholders' register held by Euroclear Finland Ltd at the latest by 17 March 2022 by
10:00 a�m� EET� As regards nominee registered shares this constitutes due registration for the
General Meeting�
Dividend for 2021
Board of Directors proposes to the Annual General Meeting that no dividend be paid for 2021�
Financial reporting in 2022
In 2022, Basware Corporation will publish financial information as follows:
April 21, 2022 - Interim report for January 1 – March 31, 2022
July 21, 2022 - Half-year financial report for January 1 – June 30, 2022
October 25, 2022 - Interim report for January 1 – September 30, 2022
All interim reports and stock exchange releases are available on Basware's investor webpages
at https://investors.basware.com/en�
Basware Investor Relations contacts
For investor relations questions or inquiries please contact IR@basware.com�
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© 2021 Basware

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A member firm of Ernst & Young Global Limited

Independent Auditor’s Report on Basware Oyj’s ESEF Consolidated Financial
Statements (Translation of the Finnish original)

To the Board of Directors of Basware Oyj

We have performed a reasonable assurance engagement on the iXBRL tagging of the consolidated
financial statements included in the digital files 743700ULKFAAEA2N3D13-2021-12-31-fi.zip of Basware
Oyj for the financial year 1.1. – 31.12.2021 to ensure that the financial statements are tagged with iXBRL
mark ups in accordance with the requirements of Article 4 of EU Commission Delegated Regulation (EU)
2018/815 (ESEF RTS).


Responsibilities of the Board of Directors and Managing Director

The Board of Directors and Managing Director are responsible for the preparation of the Report of Board
of Directors and financial statements (ESEF financial statements) that comply with the ESEF RTS. This
responsibility includes:
• preparation of ESEF financial statements in accordance with Article 3 of ESEF RTS
• Tagging the consolidated financial statements included within the ESEF financial statements by
using the iXBRL mark ups in accordance with Article 4 of ESEF RTS
• Ensuring consistency between ESEF financial statements and audited financial statements

The Board of Directors and Managing Director are also responsible for such internal control as they
determine is necessary to enable the preparation of ESEF financial statements in accordance the
requirements of ESEF RTS.


Auditor’s Independence and Quality Control

We are independent of the company in accordance with the ethical requirements that are applicable in
Finland and are relevant to the engagement we have performed, and we have fulfilled our other ethical
responsibilities in accordance with these requirements.
The auditor applies International Standard on Quality Control (ISQC) 1 and therefore maintains a
comprehensive quality control system including documented policies and procedures regarding
compliance with ethical requirements, professional standards and applicable legal and regulatory
requirements.

Auditor’s Responsibilities

In accordance with the Engagement Letter we will express an opinion on whether the electronic tagging
of the consolidated financial statements complies in all material respects with the Article 4 of ESEF RTS.
We have conducted a reasonable assurance engagement in accordance with International Standard on
Assurance Engagements ISAE 3000.
The engagement includes procedures to obtain evidence on:
• whether the tagging of the primary financial statements in the consolidated financial statements
complies in all material respects with Article 4 of the ESEF RTS
• whether the ESEF financial statements are consistent with the audited financial statements

The nature, timing and extent of the procedures selected depend on the auditor’s judgement including
the assessment of risk of material departures from requirements sets out in the ESEF RTS, whether due
to fraud or error.
We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for our
statement.


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A member firm of Ernst & Young Global Limited

Opinion

In our opinion the tagging of the consolidated financial statement included in the ESEF financial
statements of Basware Oyj for the year ended 31.12.2021 complies in all material respects with the
requirements of ESEF RTS.

Our audit opinion on the consolidated financial statements of Basware Oyj for the year ended
31.12.2021 is included in our Independent Auditor’s Report dated 2.2.2022. In this report, we do not
express an audit opinion or any other assurance on the consolidated financial statements.


Helsinki 23.2.2022
Ernst & Young Oy
Authorized Public Accountant Firm


Terhi Mäkinen
APA


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