Keyware Technologies NV — Earnings Release 2015

May 22, 2015

PRESS RELEASE 21 May 2015

Keyware realises a substantial net profit and revenues growth during the first quarter

Brussels, Belgium – 21 May 2015 – Keyware (EURONEXT Brussels: KEYW) discloses today its financial results for the first quarter of 2015 ended as at 31 March 2015.

Keyware generates a net profit of 926 kEUR compared to 219 kEUR for the first quarter of 2014 which is an increase of 323%. The net profit margin (net profit/revenues) amounts to 31.04% compared to 10.25% for the first quarter of 2014.

The result of the first quarter of 2015 also comprises a deferred tax revenue of 212 kEUR which relates to the recognition of an additional deferred tax asset with respect to tax losses as per the related IFRS principles.

During the first quarter of 2015 EBITDA amounts to 785 kEUR which represents an increase of 369 kEUR or 88.7% compared to the first quarter of 2014. EBITDA margin (EBITDA/revenues) amounts 26.32% compared to 19.48% for the first quarter of 2014.

The first quarter of 2015 has recorded revenues of 2,983 kEUR compared to 2,136 kEUR last year. Hence, revenues present an increase of 39.7% as a result of which they are close to their level of the fourth and best quarter of 2014 during which revenues amounted to 3,082 kEUR.

Firstly, the increase in revenues results from the fact that during the first quarter of 2015 Worldline terminals represent a significantly higher portion in the rental agreements compared to the first quarter of 2014.

Secondly, the increase in revenues is also triggered by the asset deal concluded with GlobalPay as a result of which rental and maintenance agreements are transferred at 1 January 2015. This take-over, which has been structured as an asset deal, is expected to impact fiscal year 2015 in full. The purchase price will be paid in tranches in 2015 and will be determined exactly on 31 December 2015.

Even without taking into account the beneficiary impacts of the said asset deal, Keyware has been able to increase its market share during this quarter, both in the payment terminals activity as in the transaction agreements activity.

In the reported figures of the first quarter of 2015 PayItEasy BVBA, which has become a fully subsidiary, has been fully integrated in the consolidated statements whereas the equity method was applied for the first quarter of 2014 giving its stake of 50% at that moment. In order to get to a like-for-like presentation for the first quarter of 2014, the result in the joint venture (loss of 11 kEUR) should be presented amongst services and other goods albeit for 22 kEUR. During the first quarter of 2015 a break-even result has been recorded as a result of the increasing number of transactions processed through our own platform.

First quarter of 2015:

• The Group generated revenues of 2,983 kEUR compared to 2,136 kEUR for the same period in 2014, which represents an increase in revenues of 39.7% compared to the first quarter of 2014;
• the operational cashflow (EBITDA) for the first quarter amounts to 785 kEUR compared to 416 kEUR for the first quarter of 2014 which represents an increase of 369 kEUR or 88.7%;
• the profit before taxes amounts to 716 kEUR compared to 219 kEUR for the first quarter of 2014, which represents an increase of 497 kEUR or 227% compared to the first quarter of 2014;
• the net profit amounts to 926 kEUR compared to a net profit of 219 kEUR as at 31 March 2014, which represents an increase of 707 kEUR or 323% compared to the first quarter of 2014;
• the net cash flow amounts to 1,161 kEUR compared to 560 kEUR as at 31 March 2014, which represents an increase of 601 kEUR or 107% compared to the first quarter of 2014

	st quarter 1
Key figures for the period	31.03.2015	31.03.2014
ending on 31 March	kEUR	kEUR
	(non audited)	(non audited)
Revenues	2.983	2.136
Profit (loss) before taxes	716	219
Profit (loss)	926	219
EBITDA	785	416
Net cash flow	1.161	560
Gross profit margin (profit before taxes / revenues)(%)	24,00	10,25
Net profit margin (net profit / revenues) (%)	31,04	10,25
EBITDA margin (EBITDA / revenues) (%)	26,32	19,48

About Keyware

Keyware (EURONEXT Brussels: KEYW) is a leading supplier of electronic payment solutions, loyalty systems, identity applications and related transaction management. Keyware is based in Zaventem, Belgium. More information is available on www.keyware.com.

For additional information, please contact:

Mr Stéphane Vandervelde President & CEO Keyware Technologies NV Tel: +32 (0)2 346.25.23 ir@keyware.com www.keyware.com