QSC AG

Investor Presentation • Nov 23, 2021

q.beyond: strong and profitable growth

Deutsches Eigenkapitalforum 2021 22 – 24 November 2021 | 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.

The growth company q.beyond

Expect the next!

We are reimagining SME digitalisation –– with innovative end-to-end solutions to revolutionise any business model

q.beyond integrates all relevant technologies …

… to help German SMEs solve their digital challenges

A business model for sustainable growth

Q3 2021: growth accelerates

Q3 2021: High profitability following colocation sale

	Q3 2020	Q3 2021
Revenues		€ 35.1 million 22 € 40.0 million
EBITDA		€ -0.6 million € 29.4 million
Operating EBITDA	€ -0.6 million =	7 € 1.6 million
Consolidated net income	€ -5.0 million €	7 € 20.7 million
Free cash flow		€ -3.9 million = 7 = € +3.6 million

Colocation sale at a glance

• 28 July 2021: The existing customer DATEV acquires IP Colocation and thus the data centre it uses in Nuremberg (inflow of funds in Q3 2021: € 9.6 million)
• 17 September 2021: NorthC Group acquires the significantly larger IP Exchange with two data centres in Munich and Nuremberg (purchase price: € 44.0 million enterprise value)
• Both transactions lead to one -off accounting gains and high inflows of funds
• 2021 forecast raised three times

Dynamic revenue growth in 2021

• 79% of revenues in Q3 2021 were recurring
• 65% of revenues came from the focus sectors of retail, logistics, manufacturing and energy

Record new orders boost growth momentum

• 85% of orders in year to date come from new customers or involve new projects with existing customers
• Contracts generally have terms of 3 to 5 years
• New orders expected to reach new record level of more than € 180 million
• Firm foundation for consistently strong and profitable growth

Cloud & IoT as key growth driver

• Great demand for cloud solutions and digital workplaces
• Cloud & IoT business is highly scalable:
  • platform-based
  • growing share of IP
  • automated processes
• Profitable growth in nine-month comparison:
  • Revenues:
    • € 84.9 million (+17%)
  • Segment contribution:
    • € 9.9 million (+120%)

13 q.beyond

Sustainable rise in profitability in SAP business

• Recurring revenues from operations and application management stabilise business during pandemic
• Double-digit segment margin (Q3 2021: 18%) in personnel-intensive business
• Nine-month comparison underlines stability and profitability:
  • Revenues:
    • € 31.4 million (+1%)
  • Segment contribution: € 4.3 million (+95%)

Disproportionate earnings growth

In € million	Q3 2020	Q3 2021
Revenues	35.1	7 40.0
Cost of revenues	(29.6)	(31.9)
Gross profit	5.5	7 8.1
Sales and marketing expenses	(3.4)	(3.1)
Segment contribution	2.0	7 5.0
General and administrative expenses	(3.2)	(4.9)
Other operating income	0.6	33.2
Other operating expenses	(0.1)	(3.8)
EBITDA	(0.6)	7 29.4
Depreciation	(4.3)	(4.2)
EBIT	(4.9)	7 25.3
Financial result / Income taxes	(0,1)	(4.6)
Consolidated net income	(5.0)	7 20.7

• Revenues grow by 14%
• Gross profit rises by 47%
• Segment contribution increases by 150%
• One-off: Transaction costs increase administrative expenses and other operating expenses
• Net one-off items of € 27.8 million in Q3 2021
  • • Accounting gains
  • Reduction in goodwill
  • Transaction costs

Operating EBITDA continues to rise

• EBITDA (excluding deconsolidation items) with sequential growth of 33% to € 1.6 million

High marginal return once more in Q3 2021

• Q3 2021 again documents the scalability of the business model –the marginal return stands at more than 40%

Q3 2021: Positive free cash flow

• Significant increase in net liquidity in Q4 2021 due to payment of purchase price for IP Exchange
  • High free cash flow in Q4 2021 and in 2021 as a whole

q.beyond's financing is rock solid

• Non-current assets no longer include assetintensive colocation business
• Current assets include purchase price receivable for IP Exchange
• Equity ratio rises to 75%

Outlook for 2021/2022: double-digit growth

Outlook for 2021: higher EBITDA forecast

Revenue and FCF forecast dated 17 September 2021 confirmed

• Revenues to rise to € 155 to € 165 million (previously: € 160 to € 170 million; loss of colocation revenues of € 5 million in Q4 2021)
• Free cash flow to rise to at least € 33 million (previously: € -2 to € +3 million)
• EBITDA to improve to more than € 31 million (previously: at least € 27 million)

Platform innovations for future growth

• Development focuses on forward -looking sector solutions and cross -sector platforms such as StoreButler for retailers
• Pooling development expertise :
  • Augsburg (Microsoft competence centre)
  • Darmstadt (software engineering)

  • Hamburg (Cloud and SAP competence centre) Cologne (IoT)

  • Riga (software development support)
• R&D budget of € 4.2 million in H1 2021 already corresponds to 2/3 of total R&D spending in 2020

StoreButler at a glance

Retailers use Snabble's self -checkout solution

• Takeover of 25.4% stake in Snabble in July 2021 – option of majority takeover from 2023
• Snabble's tried -and -tested self -checkout solution is already in use at retailers including:
  • - Aldi Suisse (17 stores)
  • - Pflanzen Kölle (13 stores)
  • - tegut… teo (9 fully automated stores)
• • Further competitive advantages
  • Short amortisation period
  • Covers the entire shopping experience
  • Future-proof (integration of Grab&Go)

Expect the next: a platform for edge computing

Growth also driven by targeted acquisitions

q.beyond plans to take over further technology companies with annual revenues of up to € 30 million and has set three key focuses:

• Unique technologies in fields of cloud services, data analytics, IoT, AI July 2021: Snabble
• Extending product portfolio, e.g. towards enterprise software June 2021: datac
• Expanding strong position in focus sectors May 2021: Röhlig Logistics

More growth with "modern workplaces"

• Takeover of 100% of shares in modern workplace and collaboration specialist datac in June 2021
• datac develops and supervises end -to -end solutions for the digital world of work and relies above all on Microsoft products:
  • more than 700 SME customers
  • revenues: around € 6.5 million
  • sustainably profitable
  • 50 IT specialists in Augsburg and Düsseldorf
• Acquisition of new expertise in growth market of "digital workplaces"

Launch of a fourth focus sector: logistics

• New subsidiary to offer all-round IT services for small and medium -sized logistics companies:
  • Consulting (CargoWise, SAP)
  • Cloud services

  • Data integration services 24/7 helpdesk

• Plus: turnkey solution for digital workplaces anywhere in the world
• q.beyond also to invest in a logistics software specialist with the aim of developing sector specific platform -based innovations

Consistently strong growth in 2022

• Revenue target accounts for discontinuation of colocation revenues of € 20 million in 2022
• Scalable business model will continue to raise EBITDA margin (2022: >10%)
• Sustainably positive free cash flow in 2022

On course to success: milestones in 2021/2022

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

Twitter.com/qbyirde Twitter.com/qbyiren blog.qbeyond.de xing.com/companies/qbeyondag

Supervisory Board and management heavily invested

CEO Jürgen Hermann has so far acquired 1,000,000 shares with own funds

Management Team bought 1,000,000 shares in autumn 2020 to take part in the new SMP

Neither founder has yet sold any shares share ownership is structured as follows:

• 12.67 % Gerd Eickers 1
• 12.66 % Dr. Bernd Schlobohm 2
• 74.67 % Free float

Status: 31 October 2021

¹ Founder and member of Supervisory Board

² Founder and Chairman of Supervisory Board

Climate neutrality as new growth opportunity

q.beyond to become climate neutral by 2025

• Gradual reduction in CO² emissions by at least 40% compared with 2019; other emissions to be offset
• CO² balance sheet already strong, as data centres are 100% powered by green electricity
• Climate neutrality as competitive advantage: customers increasingly expect climate-neutral IT services and corresponding portfolio

Gradually heading for climate neutrality

• 2021: Conversion of all office locations to green electricity
• From 2022: Gradual conversion of vehicle pool to e-cars
• Ongoing: Reduction in emissions from business travel (train not plane; virtual cooperation)