QSC AG

Investor Presentation • Aug 9, 2011

QSC AGCompany PresentationResults Q2 2011

Cologne, August 8, 2011

AGENDA

• 1. Highlights Q2 2011
• 1. Financial Results Q2 2011
• 1. Outlook 2011
• 1. Questions & Answers

MAJOR ACHIEVEMENTS IN Q2 2011

• • Ongoing transformation, accelerated by the acquisitionof INFO AG and IP Partner
• • QSC raised its holdings in INFO AG to more than 90 percent of the voting rights
• •First projects initiated to intensify collaboration with INFO AG
• •Fast integration of IP Partner
• • Partnership agreement with E-Plus to launch mobile servicesfor business customers

QSC COMPLEMENTS ITS ICT PORTFOLIOWITH MOBILE SERVICES

• • In May 2011, QSC announced a partnership with E-Plus
• • At the end of Q3 2011, QSC will launch its first own mobile services / Revenue impact from 2012 onward
• • Business customer are provided with one-stop shoppingfor fixed-line and mobile services

• •Core offering: Highly competitive flat rates

• • Free fixed-mobile calls within QSC's network
• • Integration of mobile services into IPfonie centraflex
• • One app for mobile and fixed-line services for Android and iPhone

A SHORT UPDATE ON INFO AG

• • After the voluntary public tender offer, QSC's holdingstotal 91.90% of the voting rights
• • Since July 15, 2011, a squeeze-out has been possible in Germanywith > 90% of voting rights
• •Jürgen Hermann has also been CFO of INFO AG since July 1, 2011
• • Since May, QSC and INFO have initiated first projects to intensify collaboration (sales, marketing, finance)
• • In July, QSC and INFO won their first joint project after the announcement of the public tender offer

A SHORT UPDATE ON IP PARTNER

• •QSC aims to integrate this Housing and Hosting specialist quickly
• • Since July, the company has been led by a mixed team fromIP Partner and QSC
• •In summer 2011: ten roadshows for QSC's sales partners in Germany
• • In H2 2011, QSC will start to adapt the products of IP Partner for its indirect partner channels:
• • Launch is planned in
  • Q4 2011 for Rack Housing with individual SLAs
  • Q1 2012 for a Cloud solution of Microsoft Exchange
  • Q2 2012 for back-up services in the Cloud

INFO AG AND IP PARTNER HELP TO RAISETHE SHARE OF IP-BASED REVENUES

SEGMENT MANAGED SERVICES IS BENEFITING THE MOST FROM THE ACQUISITIONS

• • The majority of revenuesof INFO AG and IP Partner have become part of theManaged Services segment
• • INFO AG has won DussmannGruppe as a new customer
• • IP Partner is now running a data center for DATEV

DECLINING REVENUES IN THE PRODUCT SEGMENT

WHOLESALE/RESELLERS SEGMENTBENEFITED FROM THE NGN

• • Rising revenues in Voice Wholesale and Managed Outsourcing
• • QSC is able to earn sufficient margins thanks to its highly cost-effective NGN
• • Revenues in ADSL2+ wholesale business declined as planned: -27% to € 18.3 m

SEGMENT REPORTING UNDERLINES THE ATTRACTIVENESS OF THE ICT BUSINESS

Results Q2 2011 –

GENERAL TRENDS WITH IMPACT ON REVENUES

• (-) Fierce price competition in the voice market
• (-) Market saturation and pricing pressure in ADSL2+
• (-) Lower termination fees for mobile (since Q1 2011) and fixed-line (starting in Q3 2011) calls

versus

• (+) Demand for IP-VPN and VoIP services & applications
• (+) Market for ICT services (e.g. Housing, Hosting, ICT Outsourcing)

• (+) Growing interest in Cloud Services

• 1. Highlights Q2 2011
• 1. Financial Results Q2 2011
• 1. Outlook 2011
• 1. Questions & Answers

Q2 2011: QSC IS BACK ON GROWTH COURSE

I € i l l i n m o n s	Q 2 2 0 1 0		Q 2 2 0 1 1
R • e v e n u e s	1 0 4 9		1 2 1. 8	1 6 1 % +
( ) 1 N t k • e w o r e x p e n s e s	6 6 9		8 2 9	2 3 9 % +
G f i t • r o s s p r o	3 8. 0 +		3 8. 9 +	2. 4 % +
( ) 1 O t h t i • e r o p e r a n g e p e n s e s x	1 8 3		1 9 6	% 7. 1 +
E B I T D A •	1 9. 7 +		1 9. 3 +	2. 0 % -
D i t i • e p r e c a o n	1 6 4		1 2 9	1 1. 6 % -
E B I T •	5. 1 +		6. 4 +	% 2 5. 5 +
F i i l l t • n a n c a r e s u s	0 5 -		0 7 -	4 0 0 % -
I t • n c o m e a e s x	0 3 -		1. 8 -	n m
f N t i t • e p r o	3 4. +		3. 9 +	9. 3 % -
( 1 ) Ex lu d in de ia io d h s ha -b d t ts c g p re c n an no n- ca s re as e p ay m en

QSC EARNS RISING EBIT IN Q2 2011

19.7	$-2%$	19.3
Q2/10		Q2/11

NET PROFIT IMPACTED BY TAX EFFECTS

QSC IS GENERATING A HIGH OPERATING CASH FLOW

17

QSC IS INVESTING IN HOUSING AND HOSTING

DESPITE HIGHER CAPEX QSC IS EARNING ASUSTAINABLE POSITIVE FREE CASH FLOW

EFFECTS OF ACQUISITIONS SHAPE QSC'S FINANCES

20

QSC IS SOLIDLY FINANCED FOR 2011 AND BEYOND

• •Ongoing and sustainable positive free cash flow
• • Collaboration and integration with INFO AG and IP Partner will have an additional positive impact in 2012 and beyond
• •Low-level of net debt as of June 30, 2011
• •New credit facility of € 150 million planned

• ⇒ QSC has managed to finance the most important acquisitions in its history with its own means – a clear sign of financial strength

• 1. Highlights Q2 2011
• 1. Financial Results Q2 2011
• 1. Outlook 2011
• 1. Questions & Answers

OUTLOOK 2011QSC REITERATES FORECAST FOR 2011

• Accelerated transformation process through the acquisition of INFO AG
• Focus on profitability and financial strength
• Payment of a dividend for fiscal 2011

2011: FOCUS ON COLLABORATION AND INTEGRATION

• •IP Partner will have been fully integrated by the end of the year
• • Milestones for the collaboration with INFO AG
• •Sep 2011: Annual shareholders' meeting of INFO AG
• • Oct 2011: Analyst Day in Hamburg – presentation of the new ICT strategy of the QSC group
• • H2 2011: Collaboration in areas such as finance, marketing and especially sales

• ⇒ In 2012, all these initiatives will lead to rising contributions of the new subsidiaries to QSC's revenues and earnings

• 1. Highlights Q2 2011
• 1. Financial Results Q2 2011
• 1. Outlook 2011
• 1. Questions & Answers

FINANCIAL CALENDAR

3 1 2 0 1 1 A t u g u s ,	C f T M T o n e r e n c e C f b k, F k t o m m e r z a n r a n u r
S t b 6 2 0 1 1 e p e m e r ,	/ T h T l D e c e c o a y W L B L d t e s o n o n ,
S t b 7 2 0 1 1 e p e m e r ,	C f T M T o n e r e n c e D h B k, L d t e s c e a n o n o n u
O b 1 2 2 0 1 1 t c o e r ,	G C F t e r m a n o r p o r a e o r u m J P M C L d o r g a n a z e n o v e o n o n ,
N b 2 0 1 1 7 o v e m e r ,	P b l i i f Q l R I I I / 2 0 1 1 t t t u c a o n o u a r e r y e p o r
N b 2 1 2 3 2 0 1 1 o v e m e r – ,	G E i F F l l 2 0 1 1 t e r m a n q u y o r u m a D h B ö F k f t t e u s c e r s e r a n u r ,

SAFE HARBOR STATEMENT

This presentation includes forward-looking statements as such term is defined in the U.S. Private Securities Litigation Act of 1995. These forward-looking statements are based on management's current expectations and projections of future events and are subject to risks and uncertainties. Many factors could cause actual results to vary materially from future results expressed or implied by such forward-looking statements, including, but not limited to, changes in the competitive environment, changes in the rate of development and expansion of the technical capabilities of DSL technology, changes in prices of DSL technology and market share of our competitors, changes in the rate of development and expansion of alternative broadband technologies and changes in prices of such alternative broadband technologies, changes in government regulation, legal precedents or court decisions relating, among other things, to line sharing, rent for co-location and unbundled local loops, the pricing and timely availability of leased lines, and other matters that might have an effect on our business, the timely development of value-added services, our ability to maintain and expand current marketing and distribution agreements and enter into new marketing and distribution agreements, our ability to receive additional financing if management planning targets are not met, the timely and complete payment of outstanding receivables from our distribution partners and resellers of QSC services and products, as well as the availability of sufficiently qualified employees.

A complete list of the risks, uncertainties and other factors facing us can be found in our public reports and filings with the U.S. Securities and Exchange Commission.

DISCLAIMER

• • This document has been produced by QSC AG (the "Company") and is furnished to you solely for your information and may not be reproduced or redistributed, in whole or in part, to any other person
• • No representation or warranty (express or implied) is made as to, and no reliance should be placed on, the fairness, accuracy or completeness of the information contained herein and, accordingly, none of the Company or any of its parent or subsidiary undertakings or any of such person's officers or employees accepts any liability whatsoever arising directly or indirectly from the use of this document
• • The information contained in this document does not constitute or form a part of, and should not be construed as, an offer of securities for sale or invitation to subscribe for or purchase any securities and neither this document nor any information contained herein shall form the basis of, or be relied on in connection with, any offer of securities for sale or commitment whatsoever