q.beyond: growth accelerates
Quarterly results Q2 2021 9 August 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.
q.beyond with strong and profitable growth
- Q2 2021 provides further evidence of scalability of business model -- marginal return of more than 40%
- 77% of revenues in Q2 2021 were recurring
- 68% of revenues came from the focus sectors of retail, manufacturing and energy
Record new orders boost growth momentum
- Almost 90% of orders in Q2 2021 involve new customers or new projects with existing customers
- Sales success in new focus sector of logistics major order placed by Röhlig Logistics
- Contracts generally have terms of 3 to 5 years
- Strong foundation for ongoing 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
- rising share of IP
- automated processes
- Segment margin already rises to 14% -- despite ongoing investments in future growth
SAP business stable in pandemic
- Recurring revenues from operations and application management stabilise business in the pandemic
- Segment contribution traditionally fluctuates from quarter to quarter
- Y-o-y H1 comparison underlines stability and profitability:
- Revenues H1 2021: € 21.4m (€ +0.1m)
- Seg. contribution H1 2021: € 2.5m (€ +0.9m)
6 q.beyond
Growth in all key earnings figures
| In $\epsilon$ million |
Q2 2020 |
Q2 2021 |
| Revenues |
34.5 |
$\overline{\mathcal{A}}$
38.8 |
| Cost of revenues |
(29.1) |
(30.7) |
| Gross profit |
5.4 |
$\overline{\mathbf{z}}$
8.1 |
| Sales and marketing expenses |
(2.9) |
(3.0) |
| Segment contribution |
2.5 |
$\overline{\mathcal{L}}$
5.1 |
| General and administrative expenses |
(3.9) |
(3.8) |
| Other operating result |
0.7 |
(0.1) |
| EBITDA |
(0.8) |
$\overline{\mathcal{L}}$
1.2 |
| Depreciation |
(4.2) |
(4.1) |
| EBIT |
(5.0) |
$\overline{\mathcal{A}}$
(2.9) |
| Financial result / taxes |
(0.1) |
(0.5) |
| Consolidated net income |
(5.1) |
$\overline{\mathcal{A}}$
(3.4) |
Highlights
- Revenues grow by 12%
- Gross profit rises by 50%
- Segment contribution increases by 104%
- Sales and administrative expenses remain stable
- EBITDA, EBIT and consolidated net income show significant improvements
q.beyond's financing is rock solid …
- Net liquidity of € 30.7 million, as against € 40.4 million at 31/03/2021
- Free cash flow of € -3.6 million (excluding datac purchase price)
- Equity ratio rises to 73%
… in order to grow further: our growth strategy
Focus on platform -based innovations
- Pooling 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
- Focus on forward -looking sector solutions and cross -sector platforms such as StoreButler for retailers
Active role in M&As
q.beyond is making target acquisitions of technology companies -- and has three key focuses:
- Expanding strong position in focus sectors May 2021: Röhlig Logistics
- Extending product portfolio, for example towards enterprise software June 2021: datac
- Unique technologies in cloud services, data analytics, IoT, AI July 2021: Snabble
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"
Greater opportunities for digitalisation in retail
- Acquisition of 25.4% stake in self-checkout specialist Snabble -- option to take over majority stake from 2023
- Proven scan-&-go solution from Snabble (at customers including IKEA, Tegut) to be key component of StoreButler digitalisation platform
- Solution covers whole of shopping experience in digitalised stores with integrated solutions from a single source
Sale of first part of colocation business
- Existing customer DATEV acquires IP Colocation and thus the data centre it itself uses in Nuremberg
- Decision on future of significantly larger IP Exchange with two further data centres to be taken in autumn 2021
- Sale of IP Colocation leads to one-off accounting gains and inflow of funds
- Higher EBITDA and free cash flow forecast for 2021
q.beyond raises EBITDA and FCF forecast
Forecast after IP Colocation sale
- Revenues still set to rise to € 160 to € 170 million
- EBITDA to improve to € 8 to € 13 million (previously: € 5 to € 10 million)
- Free cash flow to reach € -2 to € +3 million (previously: € -10 to € -5 million)
- Sustainably positive free cash flow from Q3 2021 already
On course for revenues of € 200 million
- Ongoing strong and profitable growth means that ambitious targets set out in "2020plus" growth strategy for 2022 are now within reach
- High volume of new orders broadens revenue base
- Scalable business model leads to rising EBITDA margin (2022: >10%)
- Sustainably positive free cash flow from Q3 2021 already
Contact
q.beyond AG Arne Thull Head of Investor Relations/M&A
T +49 221 669-8724 M +49 163 669-8425 [email protected] www.qbeyond.de
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