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
Helsinki
Stockholm
Oslo

• Founded in 1991
• IPO in 1999
• Approx. 415 employees in 16 countries

Helsingborg
Copenhagen
London
Wroclaw
Paris
Madrid
Frankfurt
New Orleans

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

São Paulo
Sydney
Santiago
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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, June 30 2007
Introduction

• 6,173 shareholders
• 47 percent of the capital owned by institutions
• Skandia 6.1Länsförsäkringar
  Fonder 4.4SIF 3.7Carnegie
  Fonder 3.5 Lannebo Småbolag Select
  2.7Handelsbanken fonder 2.4Roburs Fonder
  1.9
• 87 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 SAP environment
Our solutions

• Products
• INVOICE COCKPIT
• WEB CYCLE
• ANALYZER
• EDI COCKPIT
• WEB BOARD
• PROCESS DIRECTOR
• Packaged solution
• Ready to use complete with consultancy and
  training

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Solutions for Oracle environment
Our solutions

• Products
• INVOICEIT
• INVOICEIT INTELLIGENT ANALYZER
• Solution Package
• Ready to use complete with consultancy and
  training

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Solutions for other Environments
Our solutions

• Products
• APPROVE
• Solution Package
• Ready to use complete with consultancy and
  training

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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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ReadSoft DOCUMENTS
Our solutions
WorkFlow
Archive
INDEX
CLASSIFY
Output
Input
ReadSoft DOCUMENTS software platform
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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
• Pilot customers like 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
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4 Worldwide Market Segments

• Largest segment Transaction Processes Process
  Management will grow to nearly 800m by 2010 with
  annual growth rate of 15.
• Major spur to the growth was attributed to
  Transaction Processes Process Management
  segment
• ReadSoft Market leader in Transaction Processes
  Process Management segment (15)

• 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

Continues...
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Financial development
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First six months 2007Revenue and results
Financial development

• The turnover increased by 9 and amounted to SEK
  236.8 (217.6) million
• Results after tax were SEK 0.7 (12.2) million
• Cash flow from the current business amounted to
  SEK 16.1 (16.0)) million

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Second quarter 2007Revenue and results
Financial development

• The turnover increased by 11 and amounted to SEK
  127.6 (115.3) million
• Results after tax were SEK 3.3 (11.5) million
• Positive development within the SAP segment
• The DOCUMENTS platform launched
• Subsidiary estabilished in Asia

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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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We are gearing up
Going forward

• We are expanding our sales and delivery
  organization
• We will increase our partner sales by adding
  resources both centrally and locally
• We are establishing an organization in Asia and
  are planning for one more new market during
  2007
• Packaged solutions will increase efficency
• We will continue our active acquisition strategy

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Long term goals
Going forward

• Annual growth of 20-25
• Profit margin gt15
• Partner sales will grow to 50 of our sales
• One new product release per year
• Establish a presence on one new market per year
• At least one acquisition 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 Interrim Report for January September will
be presented on October 22, 2007