Q.beyond Ag · XETR:QBY0
Q.beyond — QSC — Q3 2019 Earnings Presentation
24 slides from Q.beyond's earnings presentation, Nov 11, 2019
Slide 1: The Digitaliser to the German SME Sector
Cologne, 11 November 2019 — Q3 2019 results THE DIGITALISER 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: Q3 2019: Strategy update
Q3 2019: Strategy update QSC AG
Slide 4: QSC is back on growth track
QSC is back on growth track Main growth drivers − Cloud business +24% − Consulting +5% QSC AG 4
Slide 5: Increased order intake in 2019
Increased order intake in 2019 Latest customer wins − Brunata-Metrona (Energy) commissions QSC for complete SAP application management − QSC to develop and operate Techem’s data hub, one of the largest IoT platforms in the energy sector QSC AG 5
Slide 6: Ongoing growth in Q4 2019
Ongoing growth in Q4 2019 Main developments − Further growth in Cloud business − Slight decrease in Consulting revenues due to fewer working days in December − Slight growth in Colocation business QSC AG 6
Slide 7: New growth potential: QSC acquires a stake in aiXbrain
New growth potential: QSC acquires a stake in aiXbrain − QSC has acquired 25.1% of aiXbrain, a specialist for artificial intelligence in manufacturing and a spin-off from IT-institute at RWTH Aachen University − aiXbrain has developed a self-learning software which increases flexibility in industria
Slide 8: Legacy system: How most customers work today
Legacy system: How most customers work today QSC AG 8
Slide 9: AI-assisted production: Tomorrow's smart-loop production
AI-assisted production: Tomorrow’s smart-loop production QSC AG 9
Slide 10: Strategy 2020plus: Focus on profitable growth
Strategy 2020plus: Focus on profitable growth “Digitaliser to the SME sector” Attractive Effective “go-to- New & experienced Top innovations business portfolio market” approach management team − Highly scalable − New technologies − Strategic partners − Top expertise − Recurring revenues − New combin
Slide 11: USP: End-to-end experts in the digitalisation value chain
USP: End-to-end experts in the digitalisation value chain QSC AG 11
Slide 12: Q3 2019: Financial update and Outlook
Q3 2019: Financial update and Outlook QSC AG
Slide 13: Cloud: The main driver of revenue growth
Cloud: The main driver of revenue growth − Higher recurring revenues with Cloud Services led to a 24% increase in revenues in Q3 2019 − Cloud revenues - like other segment revenues - positively impacted by Plusnet customers − Segment contribution of € 0.2 million because of QSC’s investment in futur
Slide 14: Outsourcing: Stabilisation of revenues
Outsourcing: Stabilisation of revenues − Stable customer base (all due contracts were extended or even expanded in scope in 2018/2019) − Step-by-step migration of existing customers to Cloud Services − Reorganisation up and running − Segment contribution of € -0.1 million because of ongoing reorgani
Slide 15: Consulting: Investing in further SAP experts
Consulting: Investing in further SAP experts − Consulting on growth track in 2019: revenues up by another 5% in Q3 2019 − High demand especially for SAP HANA projects − Strenghtening personnel as well as drawing on external consultants impacted segment contribution (Q3 2019: € 0.4 million) QSC AG 15
Slide 16: Colocation: Stable high-margin business
Colocation: Stable high-margin business − TC segment now consists of colocation services − Colocation characterised by long-term contracts − Segment contribution of € 1.0 million − Segment margin reached 22% in Q3 2019 QSC AG 16
Slide 17: First P&L after Plusnet sale
First P&L after Plusnet sale − Q3 2019 developed as expected − Current cost base allows future growth without increased costs => scalability of QSC’s business model − IFRS 16 depreciation now at € 1.2 million − One-off tax effect because of Plusnet transaction QSC AG 17
Slide 18: G&A costs will be reduced in 2020
G&A costs will be reduced in 2020 − In H2 2019, QSC is providing admin services for Plusnet − As of January 2020, part of adminstrative employees will become part of the Cologne- based EnBW team − Further reduction in G&A expenses in progress QSC AG 18
Slide 19: Operating FCF in line with EBITDA development
Operating FCF in line with EBITDA development − FCF developed as expected in Q3 2019 − € 8.8 million one-off expenses because of Plusnet transaction (advice, legal and transaction fees) − CAPEX reduced to € 0.9 million in Q3 2019 − Average CAPEX will be at some € 2 million per quarter QSC AG 19
Slide 20: Strong balance sheet after Plusnet sale
Strong balance sheet after Plusnet sale − As of 30 June 2019, QSC fully repaid its external debt − Net liquidity of € 70.1 million − Equity ratio now at 76% QSC AG 20
Slide 21: On track to reaching the updated forecast
On track to reaching the updated forecast Revenues of more than € 235 million (9M 2019: € 204.9 million) EBITDA of more than € 140 million (9M 2019: € 143.6 million) Free cash flow of more than € 130 million (9M 2019: € 140.2 million) QSC AG 21
Slide 22: Questions & answers
Questions & answers QSC AG
Slide 23: 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 23
Slide 24: QSC AG address
QSC AG Mathias-Brüggen-Str. 55 50829 QSCCologne, AG Germany