Q-Free ASA — Earnings Release 2021

Apr 29, 2021

Q-Free: First quarter 2021 financial results

Q-Free: First quarter 2021 financial results

(Oslo, 29 April 2021) Q-Free ASA (OSE: QFR) reported revenues of NOK 191 million

(202) in the first quarter of 2021 and an EBITDA of NOK 13 million (-8). The

order intake ended at NOK 434 million (220), contributing to a backlog exceeding

NOK 1.3 billion. Q-Free reiterates its positive outlook for 2021 and its 2025

ambitions of NOK 1.3-1.5 billion in revenues with an EBITDA margin in the 15-20%

range.

"Q-Free delivered a quarter with significant operational improvements. Although

revenues were down, order intake in the quarter almost doubled compared to last

year. This increase was driven by several key contract wins in both Tolling and

Traffic Management. Profitability in the quarter improved substantially compared

to last year due to higher gross margin and reduced operational expenses.

Moreover, the divestment of our parking assets in combination with the

successful conversion of the convertible bond to equity will ensure a more

focused and better capitalized company going forward." says Håkon Volldal,

President and CEO of Q-Free.

In the first quarter of 2021 Q-Free generated revenues of NOK 191.5 million,

down 5 percent from NOK 201.5 million in the corresponding quarter in 2020

because of COVID-19 and currency effects. EBITDA ended at NOK 13.3 million (

-7.9) following a 5 percentage point increase in gross margin and a 13 percent

reduction in operational expenses. EBIT was NOK -0.9 million in the period (

-23.6). Order intake ended at NOK 434 million (220), contributing to a backlog

exceeding NOK 1.3 billion.

Q-Free reiterates its double-digit revenue growth ambition in 2021.The company

has also established 2025 ambitions of NOK 1.3-1.5 billion in revenues and an

EBITDA margin in the 15-20 percent range.

"We are operating in an industry with favorable drivers and trends, are building

leading technology and market positions, and have a sizeable order backlog. In

addition, we already generate more than NOK 200 million in annual recurring

revenues and will continue to shift our business towards such recurring models.

Consequently, we are targeting an annual revenue growth in excess of 10 percent

leading to 2025 revenues of 1.3-1.5 billion NOK. Potential growth from bolt-on

acquisitions to strengthen and scale-up certain market offerings will come on

top," Volldal concludes.

Because of Q-Free's increased focus on recurring business models, all future

contracts that generate more than NOK 2.5 million in annual recurring revenues

will be publicly announced

Q-Free will host a webcast on 29 April to present the first quarter 2021

results. The presentation starts at 09:00 CET and can be followed live on:

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

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

report from the Board of Directors and the Q1-21 presentation are enclosed.

For further information, please contact:

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

Trond Christensen, CFO, +47 481 02 754

About Q-Free:

Q-Free ASA (OSE: QFR) is a global innovator in intelligent transportation

systems that improve traffic flow, road safety, and air quality. With an open,

collaborative approach to tolling, traffic and active transportation management,

Q-Free works with customers and partners on every continent to digitize

infrastructure and overcome modern mobility challenges for the greater good of

society.

Headquartered in Trondheim, Norway, Q-Free has annual revenues of approximately

1 billion NOK and employs approximately 360 transportation innovators, experts,

and enthusiasts. To learn more about how Q-Free is "changing the movements of

life", visit www.q-free.com or Twitter:@Q-FreeASA