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QSC AG Investor Presentation 2024
343_ip_2024-03-11_8ca03a57-bdc6-4108-ba3b-966b0940bc95.pdf
Investor Presentation
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–- Preliminary Results for 2023 & Outlook for 2024 –- Analysts and Investors Conference | 11 March 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.
2025 Strategy: IT'S WORKING!
Successes of the 2025 Strategy
Financial strength
rises
2023
Restructuring completed
Positive free cash flow one year earlier than planned
Revenues grow by 9% to € 189.3 million
2024
Earnings strength set to follow
Increase in EBITDA to € 8–10 million (2023: € 5.7 million)
Priorities of the 2025 Strategy
| 1 | Focused business model | > | More profitable revenues |
|---|---|---|---|
| 2 | Effective go-to-market | > | Revenue growth |
| 3 | One q.beyond | > | Enhanced efficiency |
2023: Financial strength rises.
2023 forecast: all targets met!
189.3 REVENUES 5.7 EBITDA +1.7 FCF € million
2023 target: 185––191
2023 target: 5––7
2023 target: ≥-4
7
Rise in free cash flow: € +11.4 million
Rising revenues: +9% growth
189.3 173.0 2022 2023
€ million
High share of recurring revenues (73%)
Concentration on five focus sectors (70%)
Successful turnaround for SAP (revenues +13%)
Consolidation of q.beyond Data Solutions
Cloud business: revenues of € +12.0 million
2022
2023
151.2
139.2
€ million
Segment contribution: 2023: € 10.3 million 2022: € 11.7 million
Effects:
- + Growth in logistics focus sector
- + Consolidation of q.beyond Data Solutions
+ Contract extensions
- –- Higher costs (personnel, energy, licences)
- –- One-off restructuring costs
SAP business: revenues of € +4.3 million
- + Sales campaign takes effect
- + S/4HANA transformation
- –- Higher personnel expenses
- –- External specialists for individual projects
New business model: new segmentation
Managed Services: gross margin of 19%
Lower depreciation/amortisation: better earnings
| € million | 2023 | |
|---|---|---|
| Revenues | 189.3 | |
| Cost of revenues | (145.6) | (161.7) |
| Gross profit 27.4 |
27.6 | |
| Sales and marketing expenses | (12.6) | (14.6) |
| Segment contribution 14.8 |
13.0 | |
| General and administrative expenses | (14.9) | (16.4) |
| Other operating income | 6.0 | 9.4 |
| Other operating expenses |
(0.5) | (0.2) |
| EBITDA 5.4 |
5.7 | |
| Depreciation and amortisation | (16.8) | (13.8) |
| Impairment losses | (20.9) | (2.9) |
| EBIT (32.3) |
(10.9) | |
| Financial result | (1.0) | (0.3) |
| Taxes | 0.2 | (5.2) |
| Consolidated net income (33.1) |
(16.4) |
< Restructuring costs limit gross profit
< Decision by tax authorities on Plusnet sale
< Lower volume of impairment losses
< One-off tax payment for Plusnet sale
Solid balance sheet: equity ratio of 64%
2024: Earnings strength set to rise.
Starting in 2024: profitability set to rise sustainably!
5.7 EBITDA 8--10 EBITDA
2023
2024 forecast
Revenues of € 192--198 million
Sustainably positive free cash flow
€ million
Profitability levers in 2025 Strategy
1 Focused business model Sales activities focus on consulting and development orders
5% higher share of consulting & development boosts gross margin by up to 2%
Profitability levers in 2025 Strategy
2 Nearshoring and offshoring
Doubling in share of employees in this area to at least 20% (2023: 11%)
5% rise in share of nearshoring/ offshoring activities increases gross margin by at least 1%
Profitability levers in 2025 Strategy
3 Artificial intelligence
Deployment in all areas of company: 1st-level service, software development, and resource planning
AI reduces manual input and eases burden on teams for routine tasks
EBITDA margin: more than doubles
Questions & Answers
Contact
q.beyond AG
Arne Thull Head of Investor Relations /M&A
T +49 221 669-8724 M +49 163 669-8425
[email protected] www.qbeyond.de
www.qbeyond.de/linkedin
www.qbeyond.de/xing
www.qbeyond.de/facebook
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blog.qbeyond.de
