QSC AG

Investor Presentation • Aug 10, 2020

Quarterly results Q2 2020, 10 August 2020, Jürgen Hermann, CEO

QSC continues to grow from quarter to quarter

Disclaimer

This presentation contains forward-looking statements based on management estimates and reflects the current views of QSC AG's ("QSC'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 often fall outside the sphere of influence of QSC. These risks and uncertainties are covered in detail within the risk report section in our annual report.

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

Quarterly growth for the 4th time in a row

Order intake reaches record high

Consistent expansion of service portfolio paying off, especially in tough times:

• − 60% of new orders generated by selling additional services to existing and new customers
• − 40% contract extensions

QSC AG

Ongoing growth under exceptional circumstances

QSC is in a privileged position despite the deep recession:

Stable and robust business model

Around 75% of revenues are recurring and platform-based

Net liquidity of € 54.7 million /equity ratio of 73%

Shutdown has triggered a wave of digitalisation among SME companies

Shutdown will cause a further growth push in our core markets Cloud, IoT and SAP

Revenue growth leads to improved profitability

in € million	Q1 2020	Q2 2020
Revenues	34.1	34.5
Cost of revenues	(28.6)	(29.1)
Gross profit	5.5	5.4
Sales and marketing expenses	(3.3)	(2.9)
General and admin expenses	(3.8)	(3.9)
Other operating income	0.6	0.7
Other operating expenses	(0.2)	(0.1)
EBITDA	(1.1)	(0.8)
Depreciation	(4.2)	(4.2)
EBIT	(5.3)	(5.0)
Financial result	(0.1)	(0.1)
Income taxes	(0.1)
Net income	(5.5)	(5.1)

• − Ongoing consistent investment in future growth impacts cost of revenues in particular
• − EBITDA nevertheless approaching break-even

Cloud & IoT: Profitability rises faster than revenues

• − Revenue drivers: Cloud solutions and the digital workplace
• − Segment contribution improved by € 3.2 million to € 1.0 million in Q2 2020 => High scalability of cloud business
• − One-off initial costs for cloud projects counteracted a higher segment contribution in Q2 2020

SAP: Strong growth since Q2 2019

Rock-solid financing thanks to balance sheet

• − Net liquidity of € 54.7 million at 30 June 2020 as against € 61.9 million at 31 March 2020
• Free cash flow of € -3.5 million (excluding dividend payout of € 3.7 million)
• − H1 2020: Capex of € 2.5 million
• − Equity ratio of 73%

2020 forecast confirmed despite deep recession

• − Revenue growth of at least 13% expected despite changed business climate
• − Investments in future growth: Therefore EBITDA of up to € -5 million and FCF of up to € -16 million planned
• − Sustainably positive EBITDA from Q4 2020
• − Sustainably positive free cash flow from Q4 2021

Well positioned for sustainable growth

"Digitaliser to the SME sector"

Excellent

• − Recurring revenues

• − Highly scalable

• − Integrated solutions

• − New technologies

business portfolio Top innovations Effective "go-tomarket" approach

• − Sector focus
• − Strategic partners

Experienced management team

• − Top expertise
• − Entrepreneurial approach

Investments in future and M&A

2022: Revenues of € ~200 million, EBITDA >10%, positive free cash flow

M&A: QSC boosts software and development competence

Full takeover of software engineering specialist Incloud as of 31 July 2020

Developer of cloud and web solutions, mobile apps and IoT products

Rapidly growing IT service provider with 60+ experts on board

Agile teams develop and implement digital business models

Forecast 2020: Revenues of more than € 4 million and positive earnings

Incloud perfectly complements QSC's expertise

New cooperation partners: Advantech and TeamViewer

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The IIoT Starter Kit Architecture at a glance

Partners and M&A will support accelerated growth

Main drivers:

• − Growing order intake due to sharp positioning in growth markets
• − high share of "as-a-service" solutions
• − high share of recurring revenues
• − scalable business model

Next growth push: The Rebranding to "q.beyond"

In H1 2020, business developed as expected despite deep recession

Order intake has proven to be a perfect indicator for business development

Questions & answers

QSC AG

Contact

QSC AG Arne Thull Head of Investor Relations/M&A

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

Twitter.com/QSCIRde Twitter.com/QSCIRen blog.qsc.de xing.com/companies/QSCAG

Appendix

QSC AG

CEO increases his shareholding by 50%

In March 2020, our CEO acquired a further 330,000 QSC shares:

Jürgen Hermann 1,000,000 shares

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

12.68% Gerd Eickers¹ 12.68% Dr. Bernd Schlobohm² 74.64% Free float

¹ Founder and member of Supervisory Board

² Founder and Chairman of Supervisory Board

Status: 30 June 2020

"Buy" recommendations for QSC shares

	MAINFIRST A Stifel Company	QSC AG IT Services 27 May 2020 INITIAT		속 0000 00000 ** Bankhaus Lampe
	Buy PT: €2.25	Initiation of cov QSC AG path Summary
QSC GY €1.31 72.0 162 · 0 COMMERZBANK		· We initiate coverage providing ~72% upsic with a focus on Germ With the sale of the le exclusively active in si & loT, ~30% from SAP, strong financial four · We forecast QSC/	06/05/2020	Recurring revenues support the re Bank Recommendation Target price
			Buy 1.80 EUR	Mainfirst	"Buy"	2.25 €
OSC		rising from bre? 'ecent growt' to stre	Close 04/05/2020	Commerzbank	"Buy"	2.00 €
	2 March 2020		"oomberg: QSC (	Bankhaus Lampe	"Buy"	1.80 €
our rating to Buy. Early d hence success of the	BUV (from Hold)			Warburg Research	"Hold"	1.40 €
re of hidden value from ur view. With additional current levels despite	TP €2.00 (from €1.70) CP €1.12^ (Clocina 22 Labruani 2000)			Independent Research	"Hold"	1.40 €

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