QSC AG

Investor Presentation • Nov 13, 2023

Ongoing growth in challenging times

Quarterly results Q3 2023 | 13 November 2023 Thies Rixen, CEO | Nora Wolters, CFO

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 2023: Progress with implementing 2025 Strategy

Core objective of 2025 Strategy: sustainably higher earnings and financial strength

Revenues and FCF rise in Q3 2023

43.1	45.4
1.7	0.1
(1.7)	1.1

Focused business model in place

FUTURE MARKETS

Expansion in indirect sales proves its worth

• • New orders Q3 2023: € 27.4 million (Q3 2022: € 25.1 million)
• • New major customer gained
• • 35% of orders in Q3 2023 already attributable to indirect sales

One q.beyond is progressing

Systematically expanding share of nearshoring and offshoring activities

• q.beyond AG locations
• q.beyond subsidiaries

Foundation of q.beyond logineer India

• 50 employees from day one
• focus of activities:
• SAP and CargoWise
• IT infrastructure
• 24/7 helpdesk
• initial focus on supporting growing logineer business
• looking ahead, services will also be provided for other sectors

Targeted acquisitions boost growth momentum

Focuses of potential acquisitions

• expanding consulting and development expertise in and around six business fields
• expanding consulting, development and operating expertise in focus sectors

Potential targets should each have

• revenues of at least € 10 million
• EBITDA margin of at least 10%
• positive free cash flow

Q3 2023: 2025 Strategy is boosting financial strength

Revenues rise again in third quarter of 2023

This consistent growth is driven by

• • high share of recurring revenues (Q3 2023: 75%)
• • concentration on focus sectors 58% of revenues attributable to retail, logistics, and manufacturing
• • consolidation of q.beyond Data Solutions, formerly productive-data

Cloud business feels short-term impact of recession and inflation

Revenue effects

• delays in new business
• price pressure upon contract extensions

Cost effects

• year-on-year increases, particularly in personnel expenses

Nine-month comparison shows resilience of business model

in $\epsilon$ million	9M 2022	9M 2023	Change
Revenues	101.0	111.1	+10%
Segment contribution	7.7	8.5	$+10%$

SAP business reports significant growth

Sales effects

• sales campaign taking effect
• S/4HANA transformation

Cost effects

• increased personnel expenses
• individual projects require temporary deployment of external specialists

Cost pressure impacts on nine-month comparison

in $\epsilon$ million	9M 2022	9M 2023	Change
Revenues	25.4	27.3	+7%
Segment contribution	2.7	2.5	(7)%

Inflation holds back profitability

In $\epsilon$ million	Q3 2022	Q3 2023
Revenues	43.1	45.4
Cost of revenues	(35.9)	(38.5)
Gross profit	7.3	6.9
Sales and marketing expenses	(3.5)	(3.2)
Segment contribution	3.7	3.8
General and administrative expenses	(3.6)	(3.9)
Other operating income	1.7	0.2
Other operating expenses	(0.1)
EBITDA	1.7	0.1
Depreciation and amortisation	(4.3)	(3.7)
EBIT	(2.6)	(3.6)
Financial result / taxes	(0.2)	(0.4)
Consolidated net income	(2.8)	(4.0)

Q3 2023: Due above all to inflation, cost of revenues rise more rapidly than revenues temporary reduction in profitability

Starting in 2024: measures set out in the 2025 Strategy increase profitability

EBITDA also affected by lower other operating income

Free cash flow improves markedly

2025 Strategy already boosting free cash flow in short term

Increase chiefly driven by optimised receivables management

Sustainably positive free cash flow budgeted from 2024 onwards

16 q.beyond

Positive FCF increases liquidity

Balance sheet as solid as ever:

• equity ratio of 71%
• no liabilities to banks

Higher revenues and improved FCF planned

For 2023, q.beyond still expects to generate

• revenues of € 185 million to € 191 million (2022: € 173.0 million)
• EBITDA of € 5 million to € 7 million (2022: € 5.4 million)
• free cash flow of up to € -4 million (2022: € -9.7 million)

Other operating income resulting from decision on tax treatment of Plusnet sale will have a positive one-off impact on EBITDA in Q4 2023.

Increased financial and earnings strength starting in 2024

2025 Strategy requires reorganisation of company

• focused business model in place (new segmentation starting in 2024)
• new double -track sales model up and running
• One q.beyond progressing

Profitability drivers from 2024 onwards

• changed revenue mix
• higher share of nearshoring and offshoring activities
• uniform processes and structures

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

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