Q-Free ASA — Earnings Release 2017

Feb 16, 2018

Q-FREE- FOURTH QUARTER AND PRELIMINARY FULL YEAR RESULTS 2017

Q-FREE- FOURTH QUARTER AND PRELIMINARY FULL YEAR RESULTS 2017

Highlights Q4-2017:

* 265 MNOK in revenues, up 10% YoY

* 40 MNOK in EBITDA (15% margin), up from 7 MNOK (2.9% margin) in Q4-16

* 133 MNOK in order intake

* -3 MNOK in net cash flow from operating activities including investments

despite 47 MNOK in increased work in progress on the Slovenia Truck Tollling

project

Highlights FY 2017:

* 973 MNOK in revenues, up 11% YoY

* Operating expenses in percent of revenues reduced with 6% YoY

* 110 MNOK in EBITDA excl. non-recurring items (11.3% margin) vs. 11 MNOK (1.3%)

in 2016

* 1.0 bn NOK in order backlog of which 442 MNOK is scheduled for delivery in

2018

* -79 MNOK in net cash flow from operating activities including investments,

heavily influenced by increased work in progress on the Slovenia Truck Tolling

project

- We are pleased to announce our best quarter since Q4-2009. Moreover, in 2017 Q

-Free met its key financial targets of double-digit revenue growth and EBITDA

margin. The solid financial performance was positively impacted by strong

organic revenue growth, the restructuring done in the second half of 2016 and

good cost control throughout the year. In 2018 Q-Free will continue its efforts

to build leading positions in its target segments. The demand for intelligent

transportation systems will continue to grow, and Q-Free is well positioned to

capture its fair share of the growth going forward. A prerequisite for continued

success will be to further reduce the complexity of Q-Free's business. Hence, we

have initiated a process to exit underperforming businesses and product lines,

comments CEO in Q-Free, Håkon Volldal.

Enclosures: Q4-17 report and presentation

For further information, please contact:

President & CEO, Håkon Volldal: +47 977 19 973

CFO, Tor Eirik Knutsen: +47 950 50 062

About Q-Free

Q-Free is a leading global supplier of ITS (Intelligent Transportation Systems)

products and solutions. The company has approximately 415 employees, offices in

18 countries, and presence on all continents. Headquartered in Trondheim,

Norway, Q-Free is listed on the Oslo Stock Exchange under the ticker QFR.

www.q-free.com

Twitter:@Q-FreeASA