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Q-Free: Second quarter 2022 financial results

(Oslo, 8 July 2022) Q-Free ASA (Q-Free, OSE: QFR) reported an 31% year-on-year growth in recurring revenues, resulting in annualized recurring revenues of NOK 299 million. The total revenues in the second quarter of 2022 amounted to NOK 214 million, down from NOK 253 million in the same quarter in 2021 mainly due to component shortage. EBITDA in the second quarter ended at NOK 32 million. The order backlog continued to grow for the third consecutive quarter and ended at NOK 1.5 billion, up 20% year-on-year. Based on favorable macro trends related to efficient, safe, and sustainable transportation, the company reiterates its positive outlook.

“I am pleased to observe that we are delivering on our long-term goal of transforming the business model and showing a massive growth in recurring revenues. Given this transformation we are able to deliver a quite strong quarter in term of margin, despite component shortage resulting in a rater soft quarter in terms of revenues from projects and product sales. This quarter hopefully shows indication of what the transformed business model will do to the robustness and stability of the underlying business in Q-Free.” says Trond Christensen, Interim President and CEO of Q-Free.

In the second quarter of 2022 Q-Free reported recurring revenues of NOK 75 million (57), up 31 percent compared to the same period last year, which gives an ARR* of NOK 299 million (228). Total revenues in the quarter amounted to NOK 214 million (253), down 16 percent mainly due to component shortage. EBITDA ended at NOK 32 million (35) in the quarter, while EBIT came in at NOK 19 million (20). Cash flow from operations in the second quarter of 2022 was NOK – 10 million (29).

The order intake was NOK 279 million (151) and the backlog ended at NOK 1 469 million (1 221). Q-Free had another good quarter in terms of order intake, where several important contracts were awarded both within the Tolling segment and within Traffic Management.

“Our order backlog is at historical high level, and it pleases us to see that we are viewed as a preferred vendor in a majority of the cases we bid on, and that we are able to capitalize on the restructured growth platform to improve traffic flow, road safety, and air quality” Christensen continues.

The outlook remains positive, despite global supply constraints that negatively impact revenues, levering on the global opportunity to provide free-flowing, clean and safe transportation. Q-Free reiterates its 2025 ambitions of NOK 1.3 -1.5 billion in revenues and an EBITDA margin in the 15-20 percent range.

“Q-Free continues its transformation to a more robust and scalable recurring business model and is well positioned to benefit from positive macro trends related to efficient, safe, and sustainable transportation,” Christensen concludes.

Q-Free will host a webcast on 8 July 2022 to present its second quarter and first half results 2022. 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 webcast presentation are enclosed.

* ARR, EBITDA and other alternative performance measures (APMs) are defined and reconciled to the IFRS financial statements as a part of the APM section of the second quarter 2022 financial report.

This information is considered to be inside information pursuant to the EU Market Abuse Regulation and is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act. This stock exchange announcement was published by Rita Bøe Isaksen, Board Secretary in Q-Free ASA, on 8 July 2022 at 07:00 CET.

For further information, please contact:

Trond Christensen, Interim President & CEO, +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 NOK 900 million and employs approximately 350 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