Q.beyond Ag · XETR:QBY0
Q.beyond — German Corporate Conference | Stifel 2023
30 slides from Q.beyond's conference presentation, May 12, 2023
Slide 1: Implementation of 2025 Strategy now underway
Implementation of 2025 Strategy now underway German Corporate Conference| Stifel Frankfurt, 12 May 2023 | Thies Rixen, CEO
Slide 2: Disclaimer
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
Slide 3: 2025 Strategy: Focus on profitability
2025 Strategy: Focus on profitability
Slide 4: Transformation into IT service provider now complete
Transformation into IT service provider now complete 4 q.beyond
Slide 5: Acquisitions complete portfolio
Acquisitions complete portfolio FUTURE MARKETS Financial Public Retail Logistics Manufacturing services sector Portfolio covers all IT requirements of focus sectors Cloud SAP Microsoft Custom Code Data Analytics Cloud Security APPLICATIONS 5 q.beyond
Slide 6: 2025 Strategy: higher earnings and financial strength
2025 Strategy: higher earnings and financial strength Revenue growth of 7% -- 8% a year q.beyond is growing faster than the market EBITDA margin of 7% -- 8% Targets q.beyond is sustainably raising its margins for 2025 Positive consolidated net income starting 2025 q.beyond is returning to profitabil
Slide 7: Great customer benefits thanks to complete portfolio with focus on applications
Great customer benefits thanks to complete portfolio with focus on applications FUTURE MARKETS Financial Public Retail Logistics Manufacturing services sector Development Customer benefits: • Further development of applications Consulting based on sector or topical expertise IT Services • Stable and
Slide 8: Expanding consulting and development leads to higher-margin revenues
Expanding consulting and development leads to higher-margin revenues Future focuses: • Consulting: applications & processes • Development of suitable applications 2022 2025 • Operations with these applications Development Consulting & development Operations Consulting IT Services Operations 8 q.beyo
Slide 9: Effective go-to-market approach ensures great penetration of German SME sector
Effective go-to-market approach ensures great penetration of German SME sector Effective go-to-market NEW Development Direct customer approach Indirect customer approach Consulting IT Services Solutions business Product business Operations SAP Microsoft Custom Code Data Analytics Cloud Security APPL
Slide 10: Improved market approach and lower costs thanks to consistent integration
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 capa
Slide 11: 2025 Strategy: what q.beyond now aims to achieve
2025 Strategy: 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 co
Slide 12: Q1 2023: Progress in implementing 2025 Strategy
Q1 2023: Progress in implementing 2025 Strategy
Slide 13: 2025 Strategy boosts earnings and financial strength
2025 Strategy boosts earnings and financial strength Our priorities Targets: Focused business model Revenue growth of 7% -- 8% a year EBITDA margin of 7% -- 8% Effective go-to-market Positive consolidated net income from 2025 and sustainably positive free One q.beyond cash flow from 2024 13 q.beyond
Slide 14: 2025 Strategy requires changes to personnel structure
2025 Strategy requires changes to personnel structure Focused business model Automation of operations frees up capacities Development Consulting IT services Migration of activities to nearshoring locations Recruitment of additional Operations Exit from peripheral consulting and business fields devel
Slide 15: New order mix: "high value, lower volume"
New order mix: “high value, lower volume” New orders Q1 2023: € 21.4 million Effective go-to-market (Q1 2022: € 76.3 million) Development Focus now on consulting Consulting IT services and development orders Operations 80% of new orders in Initial success in Q1 2023 came from new NEW indirect sales:
Slide 16: Numerous advances with integration
Numerous advances with integration One q.beyond One Sales & Portfolio New market presence: scanplus now “q.beyond Cloud Solutions” Preparations for merger of q.beyond Cloud Solutions and datac Second nearshoring location: operations start at q.beyond ibérica Strict receivables management to improve
Slide 17: Revenues and FCF rise in Q1 2023
Revenues and FCF rise in Q1 2023
Slide 18: Q1 2023: double-digit 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 18 q.beyond
Slide 19: SAP returns to growth
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 resour
Slide 20: Cloud continues to grow strongly
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
Slide 21: Higher expenses impact on earnings
Higher expenses impact on earnings 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 21 q.beyond
Slide 22: 2025 Strategy reduces personnel expenses
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 alr
Slide 23: Significant improvement in free cash flow
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 • risi
Slide 24: q.beyond still virtually free of debt
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 24 q.beyond
Slide 25: 2023 forecast: growth in both segments
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 a
Slide 26: Appendix
© q.beyond
Slide 27: Heading for climate neutrality
Heading for climate neutrality Non-financial performance indicators in 2022 • 52% lower CO2 emissions for electricity, business travel and vehicle pool compared with 2019 • 58% lower energy consumption compared with 2019 Measures to reduce CO2 emissions • Implementation of EU Code of Conduct for ene
Slide 28: Heading for lived diversity
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
Slide 29: Contact
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 29 q.beyond
Slide 30: expect the next
expect the next © q.beyond