QSC AG

Investor Presentation • May 11, 2020

QSC on growth course

Quarterly results Q1 2020, 11 May 2020, Jürgen Hermann, CEO

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.

QSC grows from quarter to quarter

Growth in exceptional circumstances

QSC is in a privileged position in the coronavirus pandemic:

Stable and robust business model

Around 75% of revenues are recurring and platform-based

Net liquidity of € 61.9 million / equity ratio of 71%

Shutdown triggers wave of digitalisation among SME companies

4

Digital workplaces in particular demand

• − Since 17 March 2020, all QSC staff working in home offices
• − Remote operations guarantee best possible protection for our customers, partners and staff
• − QSC supports customers in migrating operations to home offices
• − Hundreds of cloud-based workplaces created within 96 hours in some cases

S/4HANA still on the agenda

Strong order growth in Q1 2020

Consistent expansion in service portfolio paying off ever more clearly from quarter to quarter:

• − 70% of new orders generated by selling additional services to existing and new customers
• − 30% contract extensions

EBITDA ahead of plan and close to break-even

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

• − Administrative expenses now in line with QSC's new size (Q3 2019: € 4.9 million)
• − Ongoing consistent investment in future growth
• − EBITDA nevertheless approaching break-even (Q3 2019: € -2.2 million)

Both segments generate positive earnings

High volume of net liquidity secures financing

• − Net liquidity of € 61.9 million at 31 March 2020 as against € 66.0 million at 31 Dec 2019
• Free cash flow of € -4.1 million
• − Equity ratio of 71%
• − Capex of € 0.8 million

2020 forecast confirmed despite difficult climate

• − Revenue growth of at least 13% expected despite recession
• − 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

Impact of pandemic on operating business

Assumption: normalisation in public life and economic activity from Q3 2020

> Demand for solutions for digital workplaces
> Demand for cloud solutions
> Consulting on location at customers

Growth to accelerate from year to year

• − Accelerated growth thanks to
  • − high share of as-aservice solutions
  • − high share of recurring revenues
  • − scalable business model

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

Questions & answers

QSC AG

Contact

QSC AG Arne Thull Head of Investor Relations

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

Annex

QSC AG

CEO increases own shareholding by 50%

In March 2020, the 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:

12.71% Gerd Eickers¹ 12.70% Dr. Bernd Schlobohm² 74.59% Free float

¹ Founder and member of Supervisory Board

² Founder and Chairman of Supervisory Board

Status: 30 April 2020

"Buy" recommendations for QSC shares

Bank	Recommendation	Target price
Commerzbank	"Buv"	2.00 €
Bankhaus Lampe	"Buy"	1.80 €
Warburg Research	"Hold"	1.40 €
Independent Research	"Hold"	1.20 €

QSC AG

QSC AG QSC AG Mathias-Brüggen-Str. 55 50829 Cologne/Germany