Qred increased operating income with 44%

Stockholm, February 28, 2022 - Qred continues to grow with profitability. Operating income during the interim period increased by 44% and operating profit amounted to SEK 10.7 million.

During the quarter, Qred carried out a directed new share issue to the Nordic Capital Evolution Fund, which enables continued expansion and development of new smart services and products that simplify life for small businesses owners. After the new share issue, the company's equity / assets ratio is 45.5%.

In early 2022, Qred started operations aimed at Norwegian small businesses, making Qred the first fintech company in financing and payment to small businesses with coverage throughout the Nordic region, in addition to the Netherlands and Belgium.

Values ​​for the same period last year are stated within brackets.

October - December 2021

• The number of active users increased by 44% to 13,483 (9,498)
• Operating income increased by 44% to SEK 105.7 m (73.6)
• Commission income increased by 85% to SEK 66.3 m (35.8)
• Interest income increased by 11% to SEK 51.4 m (46.4)
• Operating profit amounted to SEK 7.0 m (3.6)
• Net income for the period amounted to SEK 10.8 m (2.5)

January - December 2021

• Operating income increased by 25% to SEK 372.6 m (298.0)
• Commission income increased by 102% to SEK 224.9 m (111.3)
• Interest income decreased by 6% to SEK 187.6 m (199.1)
• Operating profit amounted to SEK 15.8 m (31.8)
• Net income for the period amounted to SEK 17.0 m (29.4)

Significant events during the interim period

• As a result of the previous agreements with the Nordic Capital Evolution Fund, the Extraordinary  General Meeting of Qred Holding AB (publ) decided on December 21, 2021 to increase the Company's share capital by SEK 1,106,899 through a directed new share issue of 758,150 Series B common shares to Cidron Gallo 2 S.à .r.l.
• The Annual General Meeting elected Per Widerström, Joakim Lundvall and David Samuelson as new Board members. Per Widerström was elected Chairman of the Board.
• Qred has sold its own bonds with a nominal value of EUR 4.7m.

Significant events after the interim period

• Qred has launched digital and smart business loans in Norway.

Comments from Emil Sunvisson, CEO at Qred:

It is with concern that we follow the ongoing invasion of Ukraine that brings the Cold War to mind. We have no staff in Ukraine, but several of us have relatives and friends who remain in the country and our thoughts go to all those affected. Even if Qred or most of our customers are not directly affected by the current unrest, the long-term consequences are difficult to foresee. It is therefore important that we as entrepreneurs also stand up for freedom, transparency and a democratic legal system.

2021 has been another strong year for Qred and we continue to grow with profitability - both in Sweden and internationally. We will continue to focus on scalable growth driven by customer-friendly products combined with really good customer service.

I am extremely pleased that Qred also is available in Norway as of early 2022. Norwegian small business owners have for a long time been an underserved group by the traditional banks, but will now have access to smooth and easy financing online. With the launch in Norway, Qred is now present throughout the Nordic region in addition to the Netherlands and Belgium.

We continue to invest heavily in the further development of our products, which will make financing easier for small businesses. In addition to our business loans, we launched Qred VISA in 2021, which makes it possible to have the company's everyday purchases invoiced in arrears with up to 45 days of free credit. During 2022, we will add many smart features that improve our customers' liquidity while fully automating accounting.

Qred has a big social impact. 4 out of 5 new jobs are created by small businesses. With the help of our platform for financing, we help create 10 new jobs a day, 7 days a week. In addition, we have Sweden's most satisfied customers, according to Trustpilot.

To read the full report, please visit: Year-end Report 2021

Andrea Romander
Head of Brand & Communications Qred AB
+46 730 926 607

andrea.romander@qred.com

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