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
Oslo
Stockholm
London
Helsingborg

• Founded in 1991
• IPO in 1999
• Approx. 310 employees in 11 countries

Copenhagen
Paris
Frankfurt
Madrid
New Orleans
São Paulo
Santiago
Sydney

• Over 4500 customers in 70 countries
• The leading supplier holding 16 percent of the
  market world-wide

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Shareholder information, March 31 2006
Introduction

• Listed since June 1999
• 7161 shareholders
• 45 percent of the capital owned by institutions
• Skandia 6.3Industrivärden 4.3
• SIF 3.9 Roburs Fonder 3.4 Lannebo
  Småbolag Select 3.0 Amplus Fond 2.7
  Goldman Sachs International 1.9
• 87 percent of capital owned by Swedish
  shareholders
• Traded on the Attract40 of Stockholmsbörsen

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This is what we do
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Business Misssion
This is what we do

• 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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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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A complete solution for document automation
This is what we do

• Handles data from all types of documents paper,
  e-mail, fax etc.
• Reads, interprets and understands all data
• Work flows with manual add on, verification,
  approval, etc
• Integration to ERP systems like SAP and Oracle
• Electronic information sharing via XML, etc

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Always one step ahead
This is what we do

• First in data capture
• First selfteaching system in handeling invoices
• First invoices solution with SAP certificat
• First complete solution for document automation

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Our solutions
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Our solutions

• A complete software solution for document
  automation

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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

Yves Rocher Avon CSN Bank of England
Skatteverket HSBC Bank Littlewoods Leisure
Audi Telstra Wachovia Bank N.A. M.J. Gleeson
Group Statistics Malaysia Census Laos
Spanish Traffic Authority BMRB Thomas Cook
The Statistics Department of Peru Abbey
National Bank Karolinska Universitetssjukhuset
Burke Market Research Manpower Swedish Match
The Open University Census Phillipines
Malmö Stad Australian Stock Exchange
Pharmaceutical Association of Spain Census
Argentina Lithuanian Tax Authorities DFDS
Transport Tesco ING Föreningssparbanken
Finans And some 3000 more...
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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
• More than 1,500 installations world-wide
• Patented technology in Sweden/Europe

DaimlerChrysler Carrefour Danfoss Ericsson
Volvo Danske Radio IKEA Sidel Pfizer
Borealis ABB Scandinavian Airlines System
Telia Vodafone Commerzbank Portugal Telecom
Leroy Merlin Siemens John Deere Wanadoo
Spain Arla Foods BASF Coatings Schneider
Electric 3 E-ON Energie AmcorING Direct
Moorepay RTL Norska Vägverket CSC Porsche
Volvo Computershare SEB Finance Lockheed
Martin K-rauta Svea Leasing Sidel Alcan
Song Networks Emons Spedition Dahl Heraeus
ThyssenKrupp Coca-Cola Sony And some 1500
more...
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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
• So far installed at pilot customers like AFA in
  Sweden

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Our market (according to Harvey Spencer
Associates)
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Market Growth 2005-2009
Our market

• Over 16 annual growth
• North America accounts for 54 of the market,
  Europe 37 and the rest of the world 10
• Worldwide value approx. US 2.1 billion in 2009

The Capture Software Market (end user 000)
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Market Growth 2005-2009
Our market

• ReadSoft joined the top five for the first time
• Leadership position in high value Invoice
  processing systems
• Number one in the largest segment,
• Data Capture for Process and Transactions
  Management

2005 Market Segments (1052m)
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Market leader in the largest segment
Our market

• This segment is 34 of the full Document Capture
  market
• ReadSoft owns 16 (12) of the segment
• Market worth approx. US 0.6 Billion in 2009

Data Capture for Process and Transaction
Management
2005
2004
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Trends worldwide
Our market

• Corporate Governance, Sarbanes Oxley and EU
  directives stress effective document processes
• The Basel II regulations and the US Patriot Act
  are financial regulations that require
  sophisticated risk assessment systems
• Increasing interest in Mailroom applications
• Consolidation continues wordwide
• Images are losing their exotic feel and are
  regarded as just another data type
• E-commerce continues to grow

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ReadSoft competition... Comes primarily from the
U.S., Germany and France
Our market
ReadSoft
I.R.I.S.
Océ
ITESOFT
Cardiff
SER
Captiva
AnyDoc
T.i.S
Kofax
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Financial development
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Financial development
Growth and profit 2003 - 2005
MSEK
Growth
Profit margin after tax
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Financial development
Growth per quarter 2003 2006
MSEK
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First quarter 2006Important deals and events
Financial development

• Largest revenue ever for a Q1
• American company, Lockheed Martin, installed
  ReadSoft DOCUMENTS for Invoices to handle 400,000
  invoices annualy
• Computershare, Australia, are scaling up its
  ReadSoft infrastructure with ReadSoft DOCUMENTS
  for Forms to be able to handle over 26 million
  documents yearly.

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First quarter 2006Revenue and results
Financial development

• The turnover increased by 22 and amounted to
  SEK 102.3 (84.0) million
• Results after tax were SEK 0.8 (5.5) million
• Cash flow from the current business amounted to
  SEK 18.6 (17.2) million

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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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Goals and strategies
Going forward

• Balanced growth of 15-20 annually
• Gradually improved profit margin
• Broadened product offering
• Increased collaboration with international
  partners
• Active acquisition strategy

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Aquisition strategy
Going forward

• Acquisitions with significant synergies in terms
  of complementary
• Technical skills and/or products
• Distribution channels and/or markets

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Focus 2006
Going forward

• Balanced revenue growth in line with results
• Sales of licenses and service fees are
  prioritized
• A modest expansion of present organization
• Focus on large international customers in the
  SAP/Oracle segments
• Active acquisition strategy

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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 interim report for January June will be
presented on August 14 2006