QSC AG

Investor Presentation • Nov 8, 2021

q.beyond: growth accelerates further

Quarterly results Q3 2021 8 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.

Q3 2021: High profitability following colocation sale

	03 2020	Q3 2021
Revenues		€ 35.1 million ¥2 € 40.0 million
EBITDA		€ -0.6 million >>> € 29.4 million
Operating EBITDA		€ -0.6 million > > € 1.6 million
Consolidated net income	€ -5.0 million €	2 € 20.7 million
Free cash flow		€ -3.9 million >> = € +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 twice

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
• 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%)

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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%)

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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	1 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

9 q.beyond

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%

Colocation sale extends scope for M&A

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

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

EBITDA forecast raised once again

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; before that: € 8 to € 13 million)

Strong growth in 2022 as well

• 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

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