QSC AG

Investor Presentation • Aug 8, 2022

Robust growth in a challenging environment

Quarterly results Q2 2022 8 August 2022| Jürgen Hermann, CEO

Disclaimer

This presentation contains forward-looking statements based on management estimates and reflects the current views of q.beyond AG's ("q.beyond's") management board with respect to future events. These forward-looking statements correspond to the situation at the time this presentation was prepared. Such statements are subject to risks and uncertainties, which q.beyond is mostly unable to influence. These risks and uncertainties are covered in detail within the risk report section in our financial reporting.

Although the forward-looking statements are made with great care, their correctness cannot be guaranteed. Actual results may therefore deviate from the expected results described here. q.beyond does not intend to adjust or update any forward-looking statements after publication of the presentation.

Q2 2022: robust growth …

Revenues continue to rise, but fall short of original expectations

In € million	Q2 2021	Q2 2022	A %
Revenues	38.8	42.0	+8%
EBITDA	1.2	1.4	+17%
Free cash flow	(3.6)	(1.9)	+47%

… in a challenging environment

Macroeconomic conditions have deteriorated significantly

• Increased uncertainty among companies "ifo Business Climate" at lowest level in two years
• Drastically reduced growth forecasts (IMF July 2022: +1.2%)
• High inflation (June 2022: +7.6%)

New orders of more than € 100 million in H1 2022

New orders in 2022 still expected to exceed € 200 million

In Q2 2022

• 72% of orders came from new customers or involved new projects with existing customers
• 28% involved extensions of contracts with terms generally amounting to 3 to 5 years

Q2 2022: revenues rise by 8%

In a challenging environment, q.beyond is benefiting from

• its high share of recurring revenues (Q2 2022: 78%)
• • its concentration on focus sectors - 64% of revenues attributable to retail, logistics and manufacturing
  • energy sector currently no longer in focus due to change in underlying conditions
• its targeted acquisitions (organic growth despite SAP reduction: +3%)

6 q.beyond

Cloud business is crisis-resistant

Growth drivers

• Rising demand for cloud and SaaS solutions
• Success at new subsidiaries

Additional cost factors

• Expansion in SaaS business
• Temporary change in cost structures (particularly given discontinued colocation margin)

SAP business below expectations

Growth inhibitors

• Projects delayed due to pandemic-related restrictions
• High level of uncertainty holds back new business

Cost-cutting measures

• Optimisation of internal resources/freelancers no longer commissioned
• Increased cost discipline

8 q.beyond

Slight improvement in earnings

In € million	Q2 2021	Q2 2022
Revenues	38.8	42.0
Cost of revenues	(30.7)	(35.1)
Gross profit	8.1	6.9
Sales and marketing expenses	(3.0)	(3.6)
Segment contribution	5.1	3.4
General and administrative expenses	(3.8)	(3.2)
Other operating income and expenses	(0.1)	1.3
EBITDA	1.2	1.4
Depreciation and amortisation	(4.1)	(4.0)
EBIT	(2.9)	(2.6)
Financial result	(0.1)	(0.3)
Income taxes	(0.4)	(0.3)
Consolidated net income	(3.4)	(3.1)

Rock-solid financing …

q.beyond finances its growth from its own resources

• equity ratio of 75%
• no bank liabilities

(which formed part of the 2022 forecast) … permits further targeted acquisitions

More sharply focused M&A strategy given macroeconomic uncertainty

Focus still on

• cloud and SaaS providers capable of strengthening q.beyond's portfolio

Greater priority accorded to

• market maturity of respective products
• positive earnings contributions from outset

Against this backdrop, decision not to pursue planned acquisition in energy sector

Package of measures to boost organic growth

Business performance in H1 2022 did not fully conform to expectations

Package of measures to remedy situation with 4 key focuses:

• 1. SAP: adapted market alignment; resource use to be further optimised
• 2. SaaS: greater focus on developing marketable products and services and launching these swiftly onto the market
• 3. Sales: focus on cross-selling and upselling
• 4. Optimised cost and liquidity management

Continued double-digit growth

Forecast issued at end of March 2022:

• Revenues to grow to between € 180 million and € 200 million
• EBITDA to rise to between € 8 million and € 16 million
• Free cash flow at a maximum of € -10 million

Excluding the acquisition in the energy sector and given the challenging environment, we expect revenues and EBITDA at the lower end of the forecast ranges.

Like in 2021, strong second half expected

Three drivers:

• Recovery in SAP business
• Ongoing double-digit cloud growth
• Strong growth in SaaS revenues (2022: around € 10 million secured revenues + € ~5 million new projects in H2 2022)

Package of measures supports growth in all business fields

Forecast assumes that German economy does not enter recession

Questions & Answers

Contact

q.beyond AG Arne Thull Head of Investor Relations/M&A

T +49 221 669-8724 M +49 163 669-8425 invest@qbeyond.de www.qbeyond.de

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