QSC AG

Investor Presentation • May 8, 2023

Implementation of 2025 Strategy now underway

Quarterly results Q1 2023 8 May 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.

2025 Strategy sets clear priorities

Revenues rise by 13%

Implementation of 2025 Strategy impacts on EBITDA and free cash flow in Q1 2023

41.2	46.6
+0.8	(1.3)
(1.6)	+1.1

2025 Strategy boosts earnings and financial strength

2025 Strategy requires changes to personnel structure

• Short-term: recruitment costs and personnel cuts (provisions) increase expenses
• Medium-term: new personnel structure boosts growth and earnings strength

New order mix: "high value, lower volume"

Numerous advances made with integration in Q1 already

Financial statements for Q1 2023: substantial revenue growth

Q1 2023: double-digit growth

Strong year-on-year growth driven by

• organic growth in both segments
• • consolidation of productive-data
• • high share of recurring revenues (Q1 2023: 73%)
• • concentration on focus sectors -- 60% of revenues attributable to retail, logistics and manufacturing

SAP returns to growth

Success in new business

• sales campaign (launched in H2 2022) beginning to pay off

Challenges on cost side

• higher personnel expenses with adverse impact on earnings
• new orders require increased use of external specialists on a temporary basis
• optimal use of internal resources has top priority in 2023

Cloud continues to grow strongly

Success in new and existing business

• consistently high demand, particularly for hybrid cloud solutions
• consolidation of productive-data

Challenges on cost side

• higher electricity, licence and personnel costs in 2023
• conversion in personnel structures requires one-off expenses

Higher expenses impact on earnings

In € million	Q1 2022	Q1 2023
Revenues	41.2	46.6
Cost of revenues	(35.4)	(40.6)
Gross profit	5.8	6.0
Sales and marketing expenses	(2.6)	(3.6)
Segment contribution	3.3	2.4
General and administrative expenses	(3.7)	(3.8)
Other operating income	1.6	0.2
Other operating expenses	(0.3)	(0.1)
EBITDA	0.8	(1.3)
Depreciation and amortisation	(4.1)	(3.3)
EBIT	(3.3)	(4.6)
Financial result / taxes	(0.2)	(0.4)
Consolidated net income	(3.5)	(5.0)

Increased cost of revenues in Q1 2023 due to

• higher electricity, licence and personnel expenses
• conversion in personnel structures (provisions of € 1.3 million in Q1 2023)

EBITDA also influenced by reduction in other operating income

2025 Strategy reduces personnel expenses

Measures to align personnel expense ratio to competitors

• eliminate duplicate structures (One q.beyond)
• migration to nearshoring locations (One q.beyond)
• automation
• Provisions in Q1 2023 create basis for personnel expenses to fall during rest of 2023 already

^* Peer group companies with comparable business models (All for One, Allgeier and Datagroup)

Significant improvement in free cash flow

Order-to-cash project within "One q.beyond" has proved successful

receivables fell by € 8.6 million

free cash flow increased by € 2.7 million

net liquidity rose by € 1.1 million

Two main reasons mean that FCF will decrease again in the coming quarters

• rising capital expenditure (Q1 2023: € 0.5 million)
• implementation of 2025 Strategy

q.beyond still virtually free of debt

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

• equity ratio of 74%
• no liabilities to banks

2023 forecast: growth in both segments

Full -year forecast confirmed

• Revenues of € 185 million to € 191 million (2022: € 173.0 million)
• EBITDA of € 5 to € 7 million (2022: € 5.4 million)
• Free cash flow of up to € -8 million (2022: € -9.7 million)
• "One q.beyond" will increase earnings strength above all in H2 2023

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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