QSC AG

Investor Presentation • May 10, 2021

q.beyond: strong and profitable growth

Quarterly results Q1 2021 10 May 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 posts strong and profitable growth

• Q1 2021 shows scalability of business model. The marginal yield amounts to more than 50%
• 76% of revenues in Q1 2021 were recurring
• 68% of revenues came from the focus sectors of retail, manufacturing and energy

Cloud & IoT: revenue growth of 13%

• Revenue drivers: Cloud solutions and digital workplaces

• Disproportionate growth in segment contribution despite ongoing investments in future growth
• Segment margin rises to 10%

SAP: segment margin of 13%

• Broad positioning proves its worth: SAP operations and application management continue as usual during in Covid-19 crisis

• Restrictions on contact hold back on-location consulting
• Segment margin rises to 13%

Disproportionate increase in segment margin

• Year-on-year, quarterly segment margins grow far more quickly than revenues
  • q.beyond's business model is scalable
• Double-digit segment margin paves way for sustainable rise in earnings strength

Higher revenues boost earnings strength

In € million	Q1 2020	Q1 2021
Revenues	34.1	ア 37.5
Cost of revenues	(28.6)	(30.6)
Gross profit	5.5	7 6.9
Sales and marketing expenses	(3.3)	(2.7)
Segment contribution	2.2	7 4.1
General and administrative expenses	(3.8)	(4.0)
Other operating result	0.4	0.6
EBITDA	(1.1)	7 0.7
Depreciation	(4.2)	(4.1)
EBIT	(5.3)	7 (3.4)
Financial result / taxes	(0.2)	(0.1)
Consolidated net income	(5.5)	7 (3.5)

• Revenues grow by 10%
• Gross profit increases by 25%
• Segment contribution improves by 86%
• Sales and administrative expenses at stable levels
• EBITDA, EBIT and consolidated net income improve significantly

q.beyond is very solidly financed …

• Net liquidity of € 40.4 million, as against € 44.9 million at 31.12.2020
  • Free cash flow of € -4.2 million (excluding second tranche of Incloud purchase price)
• Equity ratio rises to 74%

… in order to grow further: our growth strategy

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

Good start in logistics with major order

• Double-digit million-euro order from Röhlig Logistics – a specialist for intercontinental sea freight, air freight and contract logistics with more than 2,200 employees in 150 offices in 35 countries
• Contract to further develop digital strategy has a 5 -year term and covers:
  • IT operations
  • Expanding system platform for contract logistics (CargoWise)
  • SAP finance topics
  • Data analytics

New orders reach € 96 million by May

• More than 90% of orders involve new customers or new projects with existing customers
• Success above all in focus sectors concentration is paying off
• Contracts generally have terms of 3 to 5 years
• Good basis for ongoing strong and profitable growth

High new orders boost growth momentum

Outlook for 2021 confirmed:

• Revenues to rise to € 160 to 170 million
• Strong growth especially in H2 2021
• EBITDA to grow to € 5 to 10 million
• Free cash flow of € -10 to € -5 million
• Sustainably positive free cash flow from Q4 2021 onwards

Growth also driven by targeted acquisitions

Following investment in logistics software specialist, q.beyond plans to acquire further technology companies –- with three aspects in focus:

• Extending product portfolio, e.g. towards enterprise software
• Unique technologies in cloud services, data analytics, embedded software, IoT, AI
• Expanding strong position in focus sectors

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

€ 200 million revenues in 2022

• Consistently strong and profitable growth creates good foundation for 2022
• High volume of new orders broadens revenue base
• Scalable business model leads to rising EBITDA margin (2022: >10%)
• Sustainably positive free cash flow from Q4 2021

Contact

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

T +49 221 669-8724 F +49 221 669-8009 invest@qbeyond.de www.qbeyond.de

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