Q.beyond Ag · XETR:QBY0
Q.beyond — QSC — 9M 2018 Earnings Presentation
20 slides from Q.beyond's earnings presentation, Nov 12, 2018
Slide 1: The Digitiser to the German SME Sector
Cologne, 12 November 2018 — 9M Results 2018 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: Strategic Update
Strategic Update QSC AG
Slide 4: 9M 2018: Ongoing revenue growth
9M 2018: Ongoing revenue growth Revenues increased by 4% to € 276.4 million Cloud revenues grew by 31% TC revenues up by 11% New vertical organisation is supporting revenue growth TC subsidiary Plusnet is benefiting from greater independence New revenue forecast: At least € 360 million i
Slide 5: New organisation: Higher customer orientation & agility
New organisation: Higher customer orientation & agility Cloud & ITO Consulting Colocation Business unit Business unit Business unit Internet of Things (IoT) Telecommunications Q-loud GmbH Plusnet GmbH QSC AG 5
Slide 6: TC business is leveraging the new structure
TC business is leveraging the new structure Plusnet is now up and running as a 100% subsidiary of QSC Dedicated sales force is opening up new opportunities with business customers & resellers Plusnet spin-off has led to higher visibility Several enterprises have expressed their interest in a
Slide 7: Cloud Services meet the needs of German SMEs
Cloud Services meet the needs of German SMEs QSC’s Cloud business is mainly being driven by rising demand for the Company’s largely proprietary Cloud Services Dedicated sales force is winning new customers in typical German manufacturing strongholds (e.g. automotive suppliers) in financial s
Slide 8: IoT: Huge potential in Industry 4.0 environments
IoT: Huge potential in Industry 4.0 environments QSC’s IoT subsidiary, Q-loud, also focusses on the needs of German SMEs New opportunities arising from the combination of IoT and SAP know-how QSC’s “Energy Management Cockpit” is Germany’s first SAP-Leonardo-qualified solution Since October 2
Slide 9: Financial Update
Financial Update QSC AG
Slide 10: 9M 2018: Ongoing revenue growth
9M 2018: Ongoing revenue growth Consistent quarterly revenue growth in 2018 Gross profit and EBITDA have developed as expected (change mainly due to higher share of low-margin TC business with resellers) EBIT is benefiting from lower depreciation Sustainable net profit since Q1 2017 (latest
Slide 11: Cloud: Beginning to prove its scalability
Cloud: Beginning to prove its scalability Proof of scalability: 9M 2018: Revenues + € 6.0 million Cost of revenues + € 0.9 million Sales and marketing + € 0.6 million Segment margin soared to 16% In 2018, the Cloud segment will – for the first time – make a significant contribution to QSC’s ov
Slide 12: Outsourcing: Revenues developed as expected
Outsourcing: Revenues developed as expected Revenues mainly influenced by the termination of one large contract in Q3 2017 In the course of H2 2018 and at the beginning of 2019, two further contracts will be terminated Ongoing revenue transition to the Cloud segment Organisational restructur
Slide 13: Consulting: High segment margin
Consulting: High segment margin Revenues at a stable level of between € 9 and € 10 million per quarter (Q3 2018: € 9.8 million, Q2 2018: € 9.4 million; Q1 2018: € 9.8 million) Skills shortage has an influence on SAP consulting, especially on S/4HANA business Ongoing optimisation of current sta
Slide 14: Telecommunications: Strong growth and high margin
Telecommunications: Strong growth and high margin TC reseller business is still benefiting from a favourable market environment and the highly efficent Next Generation Network (NGN) Continued moderate growth in business with corporate customers Change in revenue mix and increased sales activit
Slide 15: CAPEX is focused on customers and technology
CAPEX is focused on customers and technology Completion of initial investments in cloud services has had positive effects on CAPEX this year Ongoing investments in modernisation of infrastructure and data services as well as customer projects In FY 2018, QSC aims to invest a maximum of € 20 mi
Slide 16: FCF has shown a strong increase since Q2 2018
FCF has shown a strong increase since Q2 2018 Q1 2018 was influenced by both high prepay- ments for the full year and severance payments In Q2 and Q3 2018, FCF benefited from positive development in operating business 3rd quarter 2nd quarter 1st quarter QSC AG 16
Slide 17: Forecast: QSC now expects to surpass its 2017 revenues
Forecast: QSC now expects to surpass its 2017 revenues Given the recent revenue development, QSC is now expecting: Revenues of at least € 360 million QSC continues to expect: EBITDA of € 35—40 million Free cash flow > € 10 million QSC AG 17
Slide 18: Questions & Answers
Questions & Answers QSC AG
Slide 19: 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 19
Slide 20: QSC AG Mathias-Brüggen-Str. 55 Germany
QSC AG Mathias-Brüggen-Str. 55 50829 QSCCologne, AG Germany