Welcome to ReadSoft

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Welcome to ReadSoft
Presented by Jan Andersson, President and CEO
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Short facts on ReadSoft
Introduction

• Founded in 1991
• IPO in 1999
• Approx. 440 employees in 15 countries

• Over 5000 customers in
  70 countries
• The leading supplier holding 15 of the
  market world-wide

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Business Misssion
Introduction

• To develop and market software for Document
  Automation and related management of information

Corporate Vision

• To free businesses everywhere from manual
  document handling by means of Document Automation

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Shareholder Information, September 30, 2007
Introduction

• 5,922 shareholders
• 47 percent of the capital owned by institutions
• Skandia 6.1Länsförsäkringar Fonder 4.4SIF
  3.7Carnegie Fonder 3.3 Lannebo
  Småbolag Select 2.7Handelsbanken
  fonder 2.0Roburs Fonder 1.5
• 86 percent of capital owned by Swedish
  shareholders

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This is what we do
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Document Automation
This is what we do

• Replaces manual handling of all documents
• Increases efficiancy
• Saves money
• Saves time
• Creates flexibility and dynamics
• Increases data quality and enhances the quality
  of working processes
• Improves security and tracability

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Business drivers
This is what we do

• Companies looking for solutions to facilitate
• New efficient organization models, e.g. networks
• Service centers
• Outsourcing projects
• Electronic business and information exchange
• Compliance, e.g. SOX

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Electronic Mailroom
Purchase to Pay
Two big solution segments
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Purchase to Pay
Our solutions

• Probably the single largest group of documents on
  earth
• Every company and organization handles them
• Handling costs for the documents are (very)
  large
• Legal demands in many countries for tax reasons
• Compliance demands

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Our solutions

• Automates the reading, interpretation and
  verification of supplier invoices
• Work flows with manual add on, verification,
  approval, etc
• Certified integration to ERP systems like SAP and
  Oracle
• Patented technology in Sweden/Europe
• More than 2,000 customers world-wide

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Solutions for a number ERP systems
Our solutions

• SAP
• INVOICE COCKPIT
• WEB CYCLE
• ANALYZER
• EDI COCKPIT
• WEB BOARD
• PROCESS DIRECTOR
• ORACLE
• INVOICEIT
• INVOICEIT INTELLIGENT ANALYZER
• Other ERP systems
• APPROVE
• Packed solutions
• Ready to use including training and support

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Electronic Mailroom
Our solutions

• The missing part in ECM and EDM systems
• A catalyst for large investments in the EC/DM
  area
• Emerging market out of the old forms processing
  market
• Very few vendors have good technology
• A very high technology threshold to enter
  market

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Our solutions

• Automates the handling of all incoming mail
• Reads data from all incoming documents,
  classifying, sorting, distributing and tracking
  them electronically
• Creates efficiency, speed, flexibility and
  control
• Selected customers are GMAC-RFC, RBS, Nationwide,
  Virginia Credit Union and Siemens China

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Our solutions

• The worlds best software in automatic reading and
  interpretation of data from forms, blanks and
  other documents
• Saves time and money with a higher level of
  precision compared to manual handling
• More than 3,000 customers in 70 countries

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The Worldwide Market for Document Capture
Software 2006-2010
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Worldwide Market Growth

• Market growth - 21 since last year to 1.3 bn
• 16.4 annual growth until 2010 (2.42 bn)
• Geographic market share
• North America (54 705m)
• EMEA (36 465m)
• Rest of the World (10 137m)

organic growth 16.6 (i.e. excl. new
entrants)EMEA Europe, The Middle East Africa

• Four Market Segments

• growth 14.2 p.a.

• growth 15.5 p.a.

• growth 15 p.a.

• growth 20.2 p.a.

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Market leader of the largest segment

• Transaction Processes Process Management is the
  largest segment (444m growing at 15 p.a.)
• Main driver of growth Automation of Invoice
  Processing
• ReadSoft has maintained an almost exclusive
  focus on this fragmented market segment and has
  gained a reputation for being the leader in
  invoice processing
• ReadSoft owns 15 of TPM
• 2005-6 Newcomers TiS, Dicom/Kofax
• 2005-6 Dropouts IRIS, AnyDoc

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Worldwide Industry Trends

• Use of MFPs (Multifunction peripherals) for
  capture
• Expanded use of office collaboration (esp.
  Sharepoint)
• Moves to SOA (Service-Oriented Architectures)
• Reduction of physical first class mails
• Automation of invoice processing
• Automated classification tools
• Integration of similar solutions globally in
  large corporations in order to reduce costs and
  improve management

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Financial development
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First nine months 2007Revenue and results
Financial development

• The turnover increased by 14 and amounted to SEK
  362.7 (317.8) million
• Results after tax were SEK -3.9 (13.8) million
• Cash flow from the current business amounted to
  SEK 19.6 (29.7) million

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Third quarter 2007Revenue and results
Financial development

• The turnover increased by 26 and amounted to SEK
  125.9 (100.2) million
• Results after tax were SEK -4.6 (1.6) million
• Strong development within the SAP segment in both
  Europe and the US
• Continued growth in the US
• Subsidiary established in Benelux

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Financial development
Growth per quarter 2004 2007
MSEK
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Turnover per market12 months rolling, MSEK
Financial development
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Licences turnover per quarter 12 months
rolling, MSEK
Financial development
MSEK
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Financial development
Revenue distribution 12 months rolling, MSEK
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Going forward
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2007 a year of investments
Going forward

• We are expanding our sales and delivery
  organization
• We are focusing more on our partner sales by
  adding resources both centrally and locally
• We are establishing organizations in Asia and
  Benelux
• We are producing Packaged solutions which will
  increase efficiency

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Long term market goals
Going forward

• Annual growth of 20-25
• Profit margin gt15 (EBITDA)
• Partner sales will grow to 50 of our sales
• Establish a presence on one new market per year

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For more information on ReadSoft, our
products/services, and financial updates
www.readsoft.com
More information
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Thank you!
The Year End Report for 2007 will be presented on
February 12, 2008