During 2012, we proceeded in implementing our growth strategy and transition from a software company to a service company in several concrete ways.The group’s net sales increased by 5.5 percent in 2012 to EUR 113 699 thousand, with our operating profit amounting to EUR 8 308 thousand. Recurring revenue (Maintenance and Automation Services) accounted for an increasing share of net sales during each quarter, accounting for 55.8% of full-year net sales. The increasing share of recurring revenue of net sales improves predictability over the long term. The planned investments required for the company’s growth and transition process could be seen in the company’s full-year financial performance.
We have developed our service centers in Europe and the United States to be able to serve an increasing number of customers with the same infrastructure. In addition, the customer service models of our current customers have been developed and the service offering has been expanded. Our number of personnel has increased through both acquisitions and recruitment as we have been investing in the development of competence in service production and delivery, sales, and marketing. Approximately one-half of the increase in fixed costs in 2012 was attributable to supporting and building our transition process.
The Automation Services business grew by 44.1% in 2012. Increasing transaction volumes are essential to the continuous development of Automation Services. We have also connected an increasing number of suppliers and buyers to our open network with new products and delivery methods during the year. Our full-year transaction volume was 34.0 million, up 63.5%. The decrease in license sales in 2012 is partly attributable to the significant shift towards Software as a Service (SaaS) services.
In September, we published our updated strategy until 2015, emphasizing our objective of accelerated global growth. According to the updated strategy, our key objectives include accelerated growth in the transaction volume, strengthening our market position in selected key markets, more accurate segmenting of our services and products to companies of all sizes, with particular attention on small and medium-sized enterprises, developing customer loyalty, and improving the company’s profitability.
"We connected an increasing number of suppliers and buyers to our open network. The transaction volume increased by 63.5% in 2012."
the unified cloud-based platform for Purchase-to-Pay that was launched at the
beginning of 2012, was an important milestone in Basware’s strategic change and
transition to service-oriented business. Alusta has been received well by our
Basware acquired the leading German e-invoice operator First Businesspost GmbH at the beginning of 2012 and announced the acquisition of the network and e-invoice business of Certipost, part of the Belgian bpost group, towards the end of 2012. Following the acquisitions, Basware is the market leader in Germany and Benelux market in addition to the Nordic countries. The company intends to continue to support organic growth in the key markets through acquisitions.
We expect that the company’s transition process and related investments will begin to pay themselves back during 2013. We also expect that the need for continuous services will remain good in our customer base regardless of economic cycles and the challenging economic situation. The development of profitability is particularly based on the adoption of a scalable sales and delivery model and launching a global efficient service production network at full steam. The growing and developing e-invoice market offers excellent growth opportunities for Basware, which is already the industry-leading independent player worldwide.
I would like to extend my thanks to Basware’s shareholders and customers for their trust and our top-class experts for their committed work during the year.”
"The growing and developing e-invoice market offers excellent growth opportunities for Basware, which is already the industry-leading independent player worldwide."