QPR SOFTWARE STOCK EXCHANGE RELEASE, August 4, 2021 AT 9.00 AM

Improvement in net sales and operating profit

January-June 2021

• Net sales amounted to EUR 5,042 thousand (January-June 2020: 4,830), growth 4%.
• SaaS net sales as well as consulting and software license net sales increased. Software maintenance net sales decreased.
• International net sales represented 49% of Group net sales (47).
• EBITDA increased to EUR 569 thousand (330).
• Operating result (EBIT) amounted to EUR 11 thousand (-339).
• Earnings per share EUR -0.005 (-0.026).

April-June 2021

• Net sales amounted to EUR 2,138 thousand (April-June 2020: 2,041).
• Net sales increased 5%, driven by growth in international net sales (+14%).
• SaaS net sales as well as consulting and software license net sales increased. Software maintenance net sales decreased.
• EBITDA amounted to EUR 3 thousand (-60).
• Operating result (EBIT) amounted to EUR -275 thousand (-384).
• Operating expenses remained on the same level as in previous year.

Outlook for the full year 2021 remains unchanged.

Business operations

QPR Software�s mission is to make customers agile and efficient in their operations. We innovate, develop, and sell software aimed at analyzing, monitoring, and modeling operations in organizations. Furthermore, we offer customers consulting services related to our software.

Outlook for 2021 (unchanged)

The exceptional circumstances caused by the pandemic continue to have an impact on our business, but we are already seeing signs of normalization in software purchase decisions. Based on actual sales performance in 2021 and current sales funnel, QPR expects net sales to grow in 2021 (2020: EUR 8,971 thousand).

QPR plans to moderately increase its sales, marketing and product development costs this year. Despite the planned increase in costs, the Company estimates EBITDA and operating result to improve compared to 2020.

REPORTING

QPR Software innovates, develops, sells and delivers software and services in international markets aimed at facilitating operational development in organizations. QPR Software reports one operating segment: Operational development of organizations. In addition to this, the Company reports revenue from products and services as follows: Software licenses, Renewable software licenses, Software maintenance services, SaaS (Software-as-a-service) and Consulting.

Recurring revenue reported by the Company consists of Saas net sales, Renewable software licenses and Software maintenance services.

Software licenses are sold to customers for perpetual use or for an agreed, limited period. Renewable software licenses are sold to customers as a user right with an indefinite duration. These contracts are automatically renewed at the end of the agreed period, usually one year, unless the agreement is terminated within notice period. Renewable license revenue is recognized at one point in time, in the beginning of the invoicing period.

Geographical areas reported are Finland, the rest of Europe (including Russia and Turkey), and the rest of the world. Net sales are reported according to the customer�s headquarter location.

REVIEW BY THE CEO

Our net sales growth continued also in the second quarter, despite the continued negative impact by the coronavirus pandemic on new software sales. Net sales growth was 5%, which is significantly lower than our annual mid-term financial growth target 15-20%. The beginning of the ongoing third quarter, however, has been good also in new software sales. In the beginning of July we signed and published a new significant process mining software deal to a global high-tech engineering solutions provider.

Last year we strengthened our process mining business by recruiting new sales and development resources. This year we have continued by building new sales and consulting partnerships especially in our European key markets. QPR ProcessAnalyzer�s enhanced capabilities in dashboarding and operationalization of process insight have expanded its use in customer organizations and further strengthened the competitiveness of this product. These outlays create a foundation for positive development in our process mining business.

To support our process modeling customers in their operations and quality systems, we will continue the development of a new software tool QPR BusinessPortal this year. With the help of this tool, our customers can� communicate their processes and quality documentation to their personnel, as well as get better visibility to their service and application portfolios. QPR BusinessPortal is now on a piloting phase and will be fully launched to the markets this year.

Performance management software QPR Metrics sales have increased in the Middle East market in the past year. In the autumn, we will further strengthen the delivery team of this product. Furthermore Tero Aspinen, QPR�s Executive Management Team member responsible for this business, relocates to Dubai to support our local partner network in sales and customer success.

Jari Jaakkola
CEO

NET SALES DEVELOPMENT�

April - June 2021

Net sales in the second quarter increased by 5% and amounted to EUR 2,138 thousand (2,041). Significant growth in consulting and software deliveries (+15%) and in SaaS net sales (+16%) had a positive impact on net sales. SaaS net sales were positively impacted by transfers of existing customers to SaaS customers, as well as new software sales. The annual value of SaaS offers to customers has in 1 year doubled to over EUR 2 million.

Consulting net sales, including software deliveries, amounted to EUR 1,126 thousand (981). Software deliveries were positively impacted by significant projects sold to Middle East early this year. SaaS net sales increased to EUR 317 thousand (273),

New software license net sales amounted to EUR 133 thousand (79). Renewable software license net sales decreased to EUR 81 thousand (121), mainly due to transfers of existing customers to SaaS customers. SaaS net sales increased 16% to EUR 317 thousand (273).

Software maintenance net sales decreased to EUR 481 thousand (587), mainly due to lower international channel maintenance net sales.

Net sales in Finland decreased by 2% but international net sales increased by 14%. Of the Group net sales, 54% (57) derived from Finland, 25% (27) from the rest of Europe (including Russia and Turkey) and 21% (16) from the rest of the world.

January - June 2021

Net sales in January � June amounted to EUR 5,042 thousand (4,830) and increased by 5%. The share of recurring revenue was 46% of net sales (48).

Net sales in Finland were on the same level as in the previous year (+1%). International net sales increased by 8%, driven by software sales.

Of the Group net sales, 51% (53) derived from Finland, 24% (26) from the rest of Europe (including Russia and Turkey) and 24% (21) from the rest of the world.

FINANCIAL PERFORMANCE

April - June 2021

The Group�s EBITDA amounted to 3 thousand (-60) and operating result (EBIT) to EUR -275 thousand (-384). �The improvement in operating result was due to increase in net sales and decrease in depreciation. Operating expenses were on the same level as in previous year.

Result for the period was EUR -231 thousand (-321). Earnings per share were EUR -0.019 (-0.027).

January - June 2021

The Group�s EBITDA amounted to EUR 569 thousand (330) and operating result (EBIT) amounted to EUR 11 thousand (-339). The improvement in operating result was mainly due to increase in net sales and decrease in depreciation. Operating expenses were almost on the same level as in previous year (-1%).

The Group�s fixed costs were EUR 4,397 thousand (4,494) in the reporting period. Credit losses, included in fixed costs, were EUR 24 thousand (6).

Result before taxes was EUR -78 thousand (-342) and result for the period was EUR -61 thousand (-310). Earnings per share were EUR -0.005 (-0.026).

FINANCE AND INVESTMENTS

Cash flow from operating activities in January-June increased to EUR 1,211 thousand (921). mainly due to improved financial results. Cash and cash equivalents at the end of the reporting period were EUR 878 thousand (722).

Net financial expenses were EUR 88 thousand (3) and included a one-off guarantee payment related to a closed project. The payment was made in January 2021.

Investments in January - June totaled EUR 379 thousand (583). Investments were mainly related to product development expenditure.

The� Group�s financial position is good. Cash and cash equivalents at the end of the reporting period were EUR 878 thousand (722), and in addition the Group has access to EUR 1.3 million other short-term financial instruments. At the end of the period, the Group had a short-term bank loan of EUR 700 thousand and no long-term interest-bearing bank loans. The gearing ratio was -1% (-23). At the end of the reporting period, the equity ratio was 40% (50).

PRODUCT DEVELOPMENT

QPR innovates and develops software products that analyze, measure and model operations in organizations. The Company develops the following software products: QPR ProcessAnalyzer, QPR BusinessPortal, QPR EnterpriseArchitect, QPR ProcessDesigner, and QPR Metrics.

In January - June product development expenses were EUR 956 thousand (1,135). Product development expenses worth EUR 358 thousand (451) were capitalized. The amortization of capitalized product development expenses was EUR 346 thousand (434). The amortization period for capitalized product development expenses is four years.

PERSONNEL

At the end of the quarter, the Group employed a total of 82 persons (88). The average number of personnel during the quarter was 82 (85).

The average age of employees is 42.3 (42.1) years. Women account for 22% (22) of employees, men for 78% (78). �Of all personnel, 18% (17) work in sales and marketing, 39% (44) in consulting and customer care, 35% (29) in product development, and 8% (10) in administration.

For incentive purposes, the Company has a bonus program that covers all employees. Short term remuneration of the top management consists of salary, fringe benefits, and a possible annual bonus based mainly on the Group and business unit net sales performance. Furthermore, the Company has a key employee stock option plan in use.

GOVERNANCE

In March 2021, the Board of Directors gave a notice to the shareholders of QPR Software Plc that the Annual General Meeting will be held on Thursday March 25, 2021. The Board of Directors of the Company resolved on extraordinary measures pursuant to the temporary legislation approved by the Finnish Parliament. In order to prevent the spread of the Covid-19 pandemic, the Annual General Meeting was held without shareholders� presence at the Meeting venue. Participation and exercise of shareholder rights in the Meeting was possible only by way of proxy representation, by submitting counterproposals and asking questions in advance.

The Annual General Meeting approved the Board's proposal that no dividend be paid for the financial year 2020.� The Annual General Meeting made an advisory decision on the Remuneration Report and decided to approve the presented Remuneration Report.

The Annual General Meeting resolved that the number of Board Members is four (4) and elected Pertti Ervi, Matti Heikkonen, Antti Koskela and Jukka Tapaninen members of the Company�s Board of Directors. The term of office of the members of the Board of Directors expires at the end of the next Annual General Meeting. At its organizing meeting, the Board of Directors elected Pertti Ervi as its Chairman.

The Annual General Meeting elected Authorized Public Accountants KPMG Oy Ab as QPR Software�s auditor with Miika Karkulahti, Authorized Public Accountant, acting as principal auditor. The term of office of the auditor expires at the end of the next Annual General Meeting.

The Annual General Meeting decided to authorize the Board of Directors to decide on conveyance of the own shares held by the Company (share issue) either on one or several occasions. The share issue can be carried out as a share issue against payment or without consideration on terms to be determined by the Board of Directors.

All authorizations of the Board and other decisions made by the previous Annual General Meeting are available in their entirety in the stock exchange release published by the Company on March 25, 2021. The release can be found in Investors section of the Company's website, https://www.qpr.com/investors/stock-exchange-and-press-releases.

Jari Jaakkola announced on May 5, 2021 to the Board of Directors that he will resign as the company�s Chief Executive Officer. To ensure a smooth transition, the Board and Jaakkola agreed that Jaakkola will continue in office until approximately the beginning of September. The Board of Directors appointed on June 24, 2021 Jussi Vasama as the new CEO of QPR Software Plc. He will take up his post no later than October 7, 2021. Vasama has a Master's degree in Industrial Engineering and Management, specializing in the international operations of industrial companies. He has held various global and regional management positions in the software industry since 2012.

EVENTS AFTER THE REVIEW PERIOD

QPR informed on July 5, 2021 that it has signed in July a significant agreement to deliver QPR ProcessAnalyzer software to a global high-tech Engineering solutions provider. The customer�s first process mining project will focus on Shared Services process improvement across the Procure to Pay process. The project will provide transparency and insight into highly complex procurement processes comprising high-value; often bespoke goods and services. The objective is to increase procurement efficiency and deliver substantial savings.

SHORT-TERM RISKS AND UNCERTAINTIES

Internal control and risk management at QPR Software aims to ensure that the Company operates efficiently and effectively, distributes reliable information, complies with regulations and operational principles, reaches its strategic goals, reacts to changes in the market and operational environment, and ensures the continuity of its business.

QPR has identified the following three groups of risks related to its operations: risks related to business operations (country, customer, personnel, legal), risks related to information and products (QPR products, IPR, data security) and risks related to financing (foreign currency, short-term cash flow). The Company has an insurance policy covering property, operational and liability risks.

Financial risks include reasonable credit risk concerning individual business partners, which is characteristic of any international business. QPR seeks to limit this credit risk by continuously monitoring standard payment terms, receivables and credit limits.

Approximately 58% of the Group�s trade receivables were in euro at the end of the quarter (46). At the end of the quarter, the Company had not hedged its non-euro trade receivables.

Risks and risk management practices related to the Company�s business are further described in the Annual Report 2020, pages 22-24 (https://www.qpr.com/investors/financial-information/annual-reports)

FINANCIAL INFORMATION
In 2021, QPR Software Plc will publish its financial information, in Finnish and English, as follows:

Interim Report 1-9/2021: Friday, October 22, 2021

QPR SOFTWARE PLC

BOARD OF DIRECTORS

Further information:

Jari Jaakkola, CEO
Tel. +358 (0) 40 5026 397��

Distribution:
NASDAQ OMX Helsinki Ltd
Main Media

Neither this press release nor any copy of it may be taken, transmitted or distributed, directly or indirectly, in or into the United States of America or its territories or possessions.

HALF YEAR FINANCIAL STATEMENTS

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NOTES TO INTERIM FINANCIAL STATEMENTS

ACCOUNTING PRINCIPLES

This report complies with requirements of IAS 34 �Interim Financial Reporting�. Starting from the beginning of 2021, the Group has applied certain new or revised IFRS standards and IFRIC interpretations, as described in the Consolidated Financial Statements 2020. The implementation of these new and revised requirements has not impacted the reported figures. For all other parts, the accounting principles and methods are the same as they were in the 2020 financial statements.

When preparing the consolidated financial statements, management is required to make estimates and assumptions regarding the future and to consider the appropriate application of accounting principles, which means that actual results may differ from those estimated.

All amounts presented in this report are consolidated figures, unless otherwise noted. The amounts presented in the report are rounded, so the sum of individual figures may differ from the sum reported. This report is unaudited.