QSC AG

Investor Presentation • Aug 14, 2023

Revenue growth and higher free cash flow forecast

Quarterly results Q2 2023 | 14 August 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.

Q2 2023: growth in Cloud and SAP businesses

Continued double-digit revenue growth

The continued high rate of growth is due to

• organic rise in revenues in both segments
• consolidation of productive-data
• • high share of recurring revenues (Q2 2023: 74%)
• • concentration on focus sectors – 58% of revenues generated in retail, logistics and manufacturing sectors

Growth despite weak economic backdrop

• Economy weakens further, defying expectations at beginning of year – ifo index falls
• Economic researchers (IfW, RWI) now expect GDP to contract in 2023
• Economic slowdown holds back IT sector Bitkom halves IT revenue growth forecast (January 2023: +6.3%, July 2023: +3.0%)
• q.beyond will grow faster than market once again in 2023

Cloud: double-digit segment margin

Key revenue drivers

• cloud transformation at existing and new customers
• consolidation of productive-data

Cost factors

• Higher electricity, personnel and licence expenses with ongoing adverse impact
• First measures in "2025 Strategy" taking effect
• Segment margin rises to 12% (Q2 2022: 8%)

SAP business recovers

Key revenue drivers

• sales campaign taking effect
• S/4HANA transformation

Cost factors

• individual projects require temporary increase in deployment of external specialists
• optimal use of internal resources remains top priority in 2023

Operating business becoming more profitable

In € million	Q2 2022	Q2 2023
Revenues	42.0	46.4
Cost of revenues	(35.1)	(38.2)
Gross profit	6.9	8.3
Sales and marketing expenses	(3.6)	(3.4)
Segment contribution	3.4	4.8
General and administrative expenses	(3.2)	(3.9)
Other operating income	1.4	0.2
Other operating expenses	(0.1)
EBITDA	1.4	1.0
Depreciation and amortisation	(4.0)	(3.4)
EBIT	(2.6)	(2.3)
Financial result / taxes	(0.5)	(0.4)
Consolidated net income	(3.1)	(2.7)

Marked year-on-year increase in quarterly gross profit and segment contribution:

• gross profit: +20%
• segment contribution: +41%

EBITDA influenced by lower level of operating income (expected to increase in H2 2023)

Lower depreciation and amortisation benefit EBIT and consolidated net income

Free cash flow shows significant improvement

Success of "order-to-cash" project, a measure in the 2025 Strategy

volume of receivables fell by € 7.3 million compared with end of 2022

Year-on-year increase in halfyear free cash flow despite capital expenditure rising by € 1.3 million to € 1.6 million

9 q.beyond

Balance sheet remains rock solid

q.beyond is financing the implementation of its 2025 Strategy with its own resources

• equity ratio of 72%
• no liabilities to banks

Improved FCF forecast thanks to 2025 Strategy

Optimised receivables management improves working capital and reduces outflow of liquidity

• Free cash flow of up to € -4 million now expected rather than up to € -8 million (2022: € -9.7 million)

Revenue and EBITDA forecasts unchanged

• Revenues of € 185 million to € 191 million (2022: € 173.0 million)
• EBITDA of € 5 million to € 7 million (2022: € 5.4 million)

One q.beyond will further boost earnings strength in H2 2023

Progress in implementing 2025 Strategy

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

Focused business model in place

FUTURE MARKETS

Portfolio consistent with customers' needs

Investment focuses of German companies*

15 q.beyond

Expansion in indirect sales proves its worth

• • New orders Q2 2023: € 39.8 million (Q2 2022: € 30.0 million)
• • Contract extension: Tchibo establishes digital partnership
• • 50% of orders in Q2 2023 placed by existing customers
• • q.beyond is SAP's third-largest cloud partner in Germany in H1 2023

One q.beyond is progressing

2025 strategy on course

• 2025 Strategy taking planned effect
• Current implementation reveals the remaining challenges and defines the focus for the remainder of 2023
• Intensity of measures will be increased in Q3/Q4 when necessary
• Clear targets and schedules ensure consistent implementation of strategy

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

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