Q-Free ASA — Earnings Release 2019

Feb 13, 2020

Q-FREE - FOURTH QUARTER AND PRELIMINARY FY 2019 RESULTS

Q-FREE - FOURTH QUARTER AND PRELIMINARY FY 2019 RESULTS

Q-Free delivered YoY revenue growth of 2% in the fourth quarter of 2019.

Reported EBITDA increased to 11 MNOK from 9 MNOK in Q4-18 whereas the adjusted

EBITDA ended at 15 MNOK in Q4-19 versus 22 MNOK in Q4-18. Order intake was solid

and the backlog remained at a high level. Liquidity and available cash improved

on the back of 46 MNOK in positive cash flow from operations and 11% reduction

in net interest-bearing debt.

Highlights for Q4-19 include:

* 246 MNOK in revenues, up 2% YoY

* 11 MNOK in reported EBITDA and 15 MNOK in adjusted EBITDA (6% margin) compared

to 9 MNOK and 22 MNOK respectively in Q4-18

* 236 MNOK in order intake including a 75 MNOK tolling contract in Thailand

* 46 MNOK in net cash flow from operations and 11 percent reduction in net

interest-bearing debt

* 32 MNOK in impairment of parking assets related to the decision to divest the

parking and infomobility assets

Highlights for FY 2019 (preliminary figures) include:

* 962 MNOK in revenues, up 8% YoY

* 73 MNOK in reported EBITDA and 71 MNOK in adjusted EBITDA (7% margin) compared

to 71 and 89 MNOK respectively in 2018

* 950 MNOK in order intake compared to 972 MNOK in 2018 (1065 MNOK including

ALPR frame agreement in the US)

* 1 080 MNOK in order backlog (excluding frame agreements), versus 1128 MNOK at

the end of 2018

* 25 MNOK in net cash flow from operations

- Q-Free has for the first time in 10 years delivered three consecutive years

with positive EBITDA. On this background the strategic plan the company has

pursued in this period has worked. However, given the vast number of

opportunities presented by a growing traffic technology market and the efforts

required to capture these opportunities, Q-Free wants to slim down its portfolio

and focus its resources and capital. We will therefore seek to divest our

parking and infomobility assets and strengthen our technology and market

activities in tolling and traffic management. The latter will be a combined

urban and inter-urban business unit. This will enable us to maintain our

technology leadership positions and scale solutions in new existing and new

markets, comments President & CEO in Q-Free, Håkon Volldal.

The live broadcast, starting at 9 AM CET, can be followed on

https://www.q-free.com/investor_relations/web-cast/

A recorded version will be available after the webcast has been concluded.

Enclosures: Q4-19 report, Q4-19 presentation

For further information, please contact:

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

Interim CFO, Trond Christensen: +47 481 02 754

About Q-Free

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

products and solutions for efficient, safe and environmentally friendly

transportation. The company has approximately 400 employees, offices in 16

countries, and a 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:@QFreeASA