QSC AG

Investor Presentation • Nov 12, 2024

๑ q.beyond

expect the next

• Quarterly Results Q3 2024 -

Analysts and Investors Conference Call | 11 November 2024

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.

Q3: Earnings strength rises as planned

Quarterly comparison: significant EBITDA growth

"2025 Strategy" is working
"One q.beyond" is enhancing efficiency
Profitability has priority over growth

9M comparison underlines success of 2023 Strategy

Greater efficiency thanks to One q.beyond

Standardisation and simplification of structures
Automation of processes /
deployment of Al
Expansion in nearshoring and offshoring (current share: 13\%)

Revenue growth despite ongoing recession

Q3 2024
Q3 2023

$47.0$

45.4
€ million

Success due to "profitability over growth"
High share of recurring revenues (75\%)
Concentration on five focus sectors (72\%)
Focus on profitable business fields

Sales to perform as in 2023: strong Q4 expected

Managed Services: revenue and earnings growth

Q3 2024
Q3 2023
$132.9$
Q3 2023
$31.3$
€ million

Gross profit:
Q3 2024: $€ 6.6$ million
Q3 2023: $€ 5.6$ million

Factors:

• High resilience due to long-term contracts
• Greater efficiency thanks to One q.beyond
• Higher personnel and licence expenses

Consulting: project business held back by recession

Q3 2024
Q3 2023
14.1

€ million

Factors:

• Higher efficiency thanks to One q.beyond
• New projects in consulting and development
• SMEs reluctant to invest
• Higher personnel expenses

Consolidated net income approaches break-even

	Q3 2023	Q3 2024
Revenues	45.4	47.0
Cost of revenues	(38.5)	(39.4)
Gross profit	6.9	7.6
Sales and marketing expenses	(3.2)	(2.7)
General and administrative expenses	(3.9)	(3.4)
Other operating result	0.2	0.7
EBITDA	0.1	2.2
Depreciation and amortisation	(3.7)	(3.1)
EBIT	(3.6)	(0.9)
Financial result	0.1	0.2
Taxes	(0.3)	(0.1)
Consolidated net income	(4.0)	(0.9)

[^0]< Savings offset higher personnel and licence expenses
< Higher efficiency in sales and administration
< EBITDA margin rises as planned to 5\%
< Positive consolidated net income expected for 2025

[^0]: < Savings offset higher personnel and licence expenses

Personnel expense ratio falls - earnings rise

	2022	Q3 2024
Personnel expense ratio	$53 \%$	$50 \%$
Number of employees	1,112	$1,101^{*}$
Nearshoring and offshoring quota	$3 \%$	$13 \%$

• Including 58 employees at q.beyond logineer India.
  $>$ Target: nearshoring and offshoring quota of at least 20\%

Positive free cash flow: rising net liquidity

31 December 2023
$37.6$
€ million

Free cash flow of $€ 1.0$ million (Q3 2023: $€ 1.1 \mathrm{~m}$ )
Net liquidity of $€ 0.31$ per share
Acquisition in line with relevant agreement of further shares in q.beyond Data Solutions for $€ 1.3$ million in Q3 2024

2024: EBITDA

set to rise by significantly more than $40 \%$ !

Profitability before growth: high EBITDA growth

5.7 EBITDA

2023

$8-10$ EBITDA

€ million

2024 forecast

Revenues closer to $€ 192$ million than to $€ 198$ million
(2023: $€ 189.3$ million)
Sustainably positive free cash flow
(2023: $€ 1.7$ million)

Earnings strength growing - despite recession!

$>$ Ongoing recession
Federal government: GDP set to contract for second consecutive year in 2024
$>$ Low confidence levels
Even after latest increase, Ifo Index indicates continuing crisis
$>$ Massive reluctance to invest
Gross capital investments fall by 3.4\% in 2024 (BMWK)

EBITDA margin will rise further in 2025

2024
Profitability levers
Focused business model
Nearshoring and offshoring
Artificial intelligence

2025
Targets are set
Sustainably positive consolidated net income
Sustainably positive free cash flow
Rising company value

Questions \& answers

Contact

q.beyond AG

Arne Thull

Head of Investor Relations/M\&A
T +49 221 669-8724
M +49 163 669-8425
invest@qbeyond.de
www.qbeyond.de
www.qbeyond.de/linkedin
www.qbeyond.de/xing
www.qbeyond.de/facebook
www.qbeyond.de/instagram
www.qbeyond.de/youtube
blog.qbeyond.de

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