Q.beyond Ag · XETR:QBY0
Q.beyond — QSC — FY2018 Earnings Presentation
22 slides from Q.beyond's earnings presentation, Feb 27, 2019
Slide 1: The Digitiser to the German SME Sector
Cologne, 27 February 2019 — Preliminary figures for 2018 & outlook for 2019 THE DIGITISER TO THE GERMAN SME SECTOR QSC AG
Slide 2: Disclaimer
Disclaimer This presentation contains forward-looking statements based on management estimates and reflects the current views of QSC AG’s (“QSC’s”) management board with respect to future events. These forward-looking statements correspond to the situation at the time this presentation was prepared.
Slide 3: Financial development 2018
Financial development 2018 QSC AG
Slide 4: 2018: Cloud and TC business the revenue drivers
2018: Cloud and TC business the revenue drivers Revenues increased by 2% to € 366.8 million Cloud revenues grew by 31% TC revenues up by 6% New vertical organisation supports revenue growth EBITDA and FCF developed as expected Dividend proposal for FY 2018: € 0.03 per share QSC AG 4
Slide 5: QSC exceeded raised revenue target
QSC exceeded raised revenue target QSC AG 5
Slide 6: Cloud: Beginning to prove its scalability
Cloud: Beginning to prove its scalability Proof of scalability: 2018: Revenues + € 8.7 million Cost of revenues + € 1.9 million Sales and marketing + € 1.6 million Segment margin soared to 16% Profitable growth based on success in both pillars: Cloud Services: Winning over of new customers,
Slide 7: Cloud: Attractive growth quarter by quarter
Cloud: Attractive growth quarter by quarter QSC AG 7
Slide 8: Outsourcing: Revenues developed as expected
Outsourcing: Revenues developed as expected 2018 revenues mainly influenced by the termination of one large contract in late 2017 At the beginning of 2019, two further contract terminations took effect Contracts with all other major clients were extended or even expanded in 2018 Ongoing reve
Slide 9: Consulting: Stable margin in times of skills shortage
Consulting: Stable margin in times of skills shortage Skills shortage influenced SAP consulting, especially S/4HANA business Numerous initiatives to tackle skills shortage are under way (e.g. Junior Programme for graduates) Ongoing optimisation of current staff utilisation ensures a high segme
Slide 10: TC: Resellers drive revenues
TC: Resellers drive revenues In H1 2018, TC reseller business benefited from a favourable market environment and the highly efficent Next Generation Network (NGN) Continued moderate growth with corporate customers Change in revenue mix and increased sales activities impacted segment contributi
Slide 11: TC: Reseller business back to normal in H2 2018
TC: Reseller business back to normal in H2 2018 TC revenues with resellers TC revenues with corporate customers QSC AG 11
Slide 12: 2018 at a glance: Sustainable net profit
2018 at a glance: Sustainable net profit Costs Change in TC revenue mix affected costs of revenues Sales activities in the new vertical organisation developed as expected Depreciation clearly declined Results EBITDA reflects strengthened sales activities EBIT benefits from lower depreciati
Slide 13: Free cash flow at previous year's level
Free cash flow at previous year’s level FCF developed 2018 as expected Stable FCF allows stable dividend proposal of € 0.03 per share In Q1, QSC traditionally earns negative FCF due to prepayments and variable remuneration 4th quarter 3rd quarter 2nd quarter 1st quarter QSC AG 13
Slide 14: Moderate CAPEX support free cash flow
Moderate CAPEX support free cash flow Completion of initial investments in Cloud services had positive effects on CAPEX in 2018 Ongoing investments in modernisation of infrastructure and data services as well as customer projects QSC AG 14
Slide 15: Solid balance sheet and sound financing
Solid balance sheet and sound financing Equity ratio up by 2 percentage points compared to 31 Dec 2017 Premature payback of € 75.5 million of promissory note loan in Q4 2018 by means of a raised syndicated loan Long-term debt now mainly consists of still € 35 million of promissory note loan an
Slide 16: Financial outlook for 2019
Financial outlook for 2019 QSC AG
Slide 17: 2019: Revenues of more than € 350 million expected
2019: Revenues of more than € 350 million expected QSC’s expectations for the 2019 financial year are: Revenues of more than € 350 million EBITDA of more than € 65 million (incl. IFRS 16 effect) Positive free cash flow QSC AG 17
Slide 18: 2019: TC and Outsourcing influence total revenues
2019: TC and Outsourcing influence total revenues QSC AG 18
Slide 19: 2019: A new QSC is taking shape
2019: A new QSC is taking shape QSC plans to reach a decision on the future of Plusnet by the end of May at the latest Currently, a structured and bias-free decision-making process is under way, including negotiations with several interested buyers Under the new management, IoT subsidiary Q-lo
Slide 20: Questions & Answers
Questions & Answers QSC AG
Slide 21: Contact
Contact QSC AG Arne Thull Head of Investor Relations T +49 221 669-8724 F +49 221 669-8009 invest@qsc.de www.qsc.de Twitter.com/QSCIRde Twitter.com/QSCIRen blog.qsc.de xing.com/companies/QSC AG slideshare.net/QSCAG QSC AG 21
Slide 22: QSC AG address
QSC AG Mathias-Brüggen-Str. 55 50829 QSCCologne, AG Germany