Cabonline Group Holding AB (publ) Interim report January to March 2021

JANUARY - MARCH

• Revenue amounted to MSEK 945(1,410), a decrease of 33%.
• Organically, revenue decreased by32%.
• Adjusted EBITA amounted to MSEK 45(44) and the corresponding margin was 4.8% (3.1).
• Operating profit amounted to MSEK 34 (-10), including items affecting comparability of MSEK-4 (-19).
• Net loss for the period amounted to MSEK -17(-49). ▪Earnings per share before and after dilution was SEK -0.82(-1.73).
• Cash flow from operating activities was MSEK 66 (-11).

CEO ́s comment

The corona pandemic has a major impact for Cabonline
The continued ongoing pandemic had a strong effect on the first quarter. The increased spread of the infection has resulted in stricter recommendations and restrictions from authorities, which have a continued negative impact on the travel volumes. In general, the restrictions are stricter than in the spring of 2020. The increased vaccination programs do however, give hope for less restrictions and an increase in travel going forward. We closely monitor the development in the Nordics, and we are ready when the demand increases.

Continued streamlining of operations
During the quarter, Cabonline has continued to implement measures to adjust the operations to current demand and to prepare and streamline the company to face of the market conditions expected after the pandemic. Among other things, parts of the traffic management for Regions Mid, South and West in Sweden have been transferred to our Customer Service center in Latvia. The process of reducing redundancy among staff in the organization has been completed while Cabonline continues to use the government programs for short-term layoffs. These unfortunate, but necessary measures, have had a significant impact on the business and reduced staff costs in the quarter and going forward. Our ability to quickly implement such changes shows that we have a strong organizational culture with leaders and employees with strong competence, loyalty, and commitment.

The financial result of the first quarter was in line with management's expectations, and we are happy to deliver a strong result despite the challenging market situation. Revenues landed at MSEK 945, a decrease of 33% compared to the previous year. At the same time, Cabonline has managed to counteract the effect of the revenue loss with a reduced cost base due to the extensive cost-out program being launched. Adjusted EBITDA for the quarter amounted to MSEK 71, which is in line with the previous year, while the adjusted EBITDA margin increased to 7.5%, compared to 5.0% during the same period in 2020. The cost-out is to a large extent considered permanent, which is positive for the future when the activity in society increases.

Public transport
During the first quarter, we were awarded several tenders, both new ones and previous assignments continued through gained trusts. Among them are school services in the municipality of Nordmaling starting in March 2021 and school transports for Särskola and wheelchair taxis for the municipality of Umeå starting in July 2021. We have also been awarded a tender in Trondheim, Norway, were we have started patient transports, a contract that runs up to 4 years. In Sweden Region West we have carried out many vaccination trips during the period January -March. In the Stockholm region, we have gained increased trust in running Covid home-tests to private individuals and we handled over 100,000 tests during the quarter.

Positive signals
Business travel is for understandable reason slow at the moment. It is therefore very satisfying to note that the number of new agreements signed during the quarter was in line with the same period last year, which will have positive effects going forward. Our efforts to improve our offering and sales efforts aimed at the B2B segment continues. It is also very positive that the Norwegian business is developing so well in the deregulated taxi market since November 2020, where the number of cars, the environmental profile and the quality of delivery are developing in the right direction. To meet new competition, we have also improved our offer to young professionals in Oslo and Bergen. The goal is to be the consumer market's most affordable taxi product and to get even more young professionals to ride with us, which we have already seen works beyond expectations.

The future
We have taken the necessary actions to reduce our cost base which will continue to have a positive impact for Cabonline. Our core strengths are not affected by the pandemic – we have a good business platform where a large part of our business is based on socially important tender assignments, strong Nordic coverage with a presence in over 60 locations in the Nordic region and a large customer base that knows and trusts our brands. The platform makes it possible to offer travelers, transporters, and drivers a competitive offer. We continue to work to further increase the quality of our service delivery for good availability and a safe and professional response. Cabonline, through its customer offering, sustainability work and operational model, is well positioned for the market and competition that is formed after the pandemic. Once again, I would like to express my appreciation to all transporters, drivers and colleagues for their commitment and efforts during these difficult times. I would also like to thank our customers for the trust we enjoy as the leading taxi company in the Nordic region. In the short term, demand will be entirely determined by the pace at which restrictions are reduced. We expect the pace of recovery rate will gradually increase in the future, and our transporters are ready to increase capacity and the number of cars in line with demand.

Dag Kibsgaard-Petersen
President and CEO
May 2021

This information is information that Cabonline Group Holding AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, at 13:00 CET on May 7, 2021.

About Cabonline
Cabonline is the leading taxi company in the Nordic region with 2,500 connected transporters and approximately 4,400 vehicles in Sweden, Norway, Finland and Denmark. Cabonline contains a series of well-known brands, such as Flygtaxi, TaxiKurir, Norgestaxi, TOPCAB, Kovanen, Taxi Skåne, Taxi Väst, Umeå Taxi, Sverigetaxi and Taxi 4x27. Through Cabonline, transporters have access to attractive customer agreements, support from industry- leading technological development and utilization of economies of scale, efficient service and a shared infrastructure. The Group revenue 2020 was approximately 4.2 billion. For further information: www.cabonlinegroup.com.