QSC AG

Investor Presentation • Mar 30, 2023

Strategy 2025

Virtual Analyst and Investor Conference 30 March 2023

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.

Strategy 2025: Focus on profitability

Transformation into IT service provider now complete

q.beyond's portfolio is superbly positioned

Strategy 2025: Focus on higher earnings and financial strength

Three strategic priorities

1.	Review of 2022: Revenue growth in difficult environment	Nora Wolters, CFO
2.	Outlook for 2023: Basis for higher earnings and financial strength	Nora Wolters, CFO
3.	Strategy 2025: Focus on profitability	Thies Rixen, CEO
	Q&A	Thies Rixen, CEO Nora Wolters, CFO

Double-digit growth in difficult environment

• 76% of 2022 revenues were recurring
• • 61% of revenues were generated in focus sectors of retail, logistics, and manufacturing

Strong second half met nearly all expectations

• Q4 revenue growth would have been even higher if individual projects had not been postponed
• Q4 revenues included one-off revenues of € ~2.5 million

Cloud as key growth driver

Growth drivers

• Consistently high demand for cloud solutions
• Consolidation of productivedata since November 2022

Temporary cost factors

• Expansion of SaaS business (discontinued in Q4 2022)
• Changed cost structure (especially discontinuation of colocation margin)

11 q.beyond

SAP segment nearing turnaround

Obstacles to growth

• Macroeconomic downturn
• Sales campaign only launched in H2 2022
• Revenues rose again in Q4 (Q3 2022: € 7.9 million/ Q4 2022: € 8.4 million)

Successful cost management

• Optimisation of internal resources/dispensing with freelancers
• Strict limits on material expenses

Earnings burdened by impairments

In € million	2021	2022
Revenues	155.2	173.0
Cost of revenues	(124.9)	(145.6)
Gross profit	30.3	27.5
Sales and marketing expenses	(12.6)	(12.6)
Segment contribution	17.7	14.9
General and administrative expenses	(17.2)	(14.9)
Other operating income	36.3	6.0
Other operating expenses	(5.1)	(0.5)
EBITDA	31.7	5.4
Depreciation and amortisation	(16.5)	(16.8)
Impairment losses		(20.9)
EBIT	15.2	(32.3)
Financial result	(0.6)	(1.0)
Income taxes	(4.8)	0.2
Consolidated net income	9.8	(33.1)

Successful sale of colocation in Q3 2021 distorts year-onyear comparison:

• Different cost structure (plus scanplus effect)
• Lower other operating result

Impairment losses of € 20.9m recognised on goodwill in 2022

• Trigger: Amended mediumterm planning and higher capitalisation interest rate

q.beyond's financing is rock solid

q.beyond finances its growth from its own resources:

• Equity ratio of 72%
• No bank liabilities

Change in net liquidity due to

• Expenses for acquisitions (scanplus, productive-data)
• Free cash flow of € -9.7m

2023: Growth in both segments

Outlook for 2023 at a glance

• 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 € -8 million (2022: € -9.7 million)
• Focus in 2023 is on the three strategic priorities aimed at sustainably increasing earnings and financial strength in subsequent years

Record new orders boost growth momentum

• 51% of orders in past year involved new customers or new projects with existing customers
• Focus in 2022 was long on expanding business with existing customers
• Sales campaign launched in H2 2022; initial success, particularly in SAP business
• Since 2023: Expansion in new business with smaller SMEs based on a two-track sales approach (effective go-to-market approach)

EBITDA influenced by one -off factors

EBITDA forecast includes additional costs of € 5 million to € 7 million for

• Data centre electricity costs
• Significantly higher salaries due to inflation
• Higher licence costs (SAP, Microsoft)

EBITDA forecast also accounts for costs of implementing strategic priorities

• Integrating subsidiaries ("One q.beyond") requires one -off expenses
• Further development of business model partly involves up -skilling and reskilling measures

Positive free cash flow planned starting 2024

• With net liquidity of € 35.9 million as of 31 December 2022, q.beyond is well financed through to its planned free cash flow break-even
  • Free cash flow is budgeted to be sustainably positive from 2024 onwards

Heading for climate neutrality

Non -financial performance indicators in 2022

• 52% lower CO ² emissions for electricity, business travel and vehicle fleet compared with 2019
• 58% lower energy consumption compared with 2019

Measures to reduce CO ² emissions

• Implementation of EU Code of Conduct for energy -efficient data centres by 2026
• Domestic flights largely avoided
• Conversion of vehicle fleet to electric cars

Heading for lived diversity

Equal pay for equal work

• Gender pay gap reviewed and closed in 2022

Equal opportunities for promotion

• Ambitious targets for share of women in management positions anchored in variable Management Board remuneration

Promoting women in STEM careers

• q.beyond has been an official partner of the German STEM initiative "MINTvernetzt" since 2021

Strategy 2025: Focus on profitability

Strategy 2025 strengthens q.beyond's market position

Our playing field Our priorities

• IT services+
• German SMEs

• 3 + 2 sectors

• Focused business model

• Effective go-to-market
• One q.beyond

Revenue growth (CAGR): 7% –– 8% EBITDA margin: 7% –– 8% Positive customer feedback

Completed transformation as foundation

Strategy 2025 sets clear priorities

24 q.beyond

Focused business model based on strong portfolio

Expanding consulting and development leads to higher-margin revenues

Effective go-to-market approach ensures great penetration of German SME sector

Improved market approach and lower costs thanks to consistent integration

One q.beyond

• Uniform market presence
• Uniform go-to-market approach (one sales & portfolio)
• Integrating subsidiaries will enable duplicate structures to be eliminated
• Uniform use of nearshore hubs (target: >10% of capacity)
• Becoming climate neutral by 2025 and actively living diversity

Strategy 2025: What q.beyond now aims to achieve

Focused business model facilitates more profitable growth

Two-track go-to-market approach broadens basis for growth

One q.beyond boosts growth forces and reduces costs

Clear targets: Plans call for positive free cash flow starting 2024 and positive consolidated net income starting 2025

Commitment to sustainability: Climate neutrality by 2025

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