QSC AG

THE DIGITALISER TO THE GERMAN SME SECTOR

Commerzbank Sector Conference – TMT, Consumer & Real Estate

Frankfurt, 29 August 2019

QSC AG

Disclaimer

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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.

Such statements are subject to risks and uncertainties, which often fall outside the sphere of influence

of QSC. These risks and uncertainties are covered in detail within the Risk Report sections of our

financial reports.

Although the forward-looking statements are made with great care, their correctness cannot be

guaranteed. Therefore the actual results may deviate from the expected results described herein.

QSC does not intend to update or adjust any forward-looking statements after the publication of

the presentation.

QSC AG

2019: The new QSC is taking shape

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QSC AG

in figures2000

235

900 employees at10 locations

ISG Provider Lens

Leader GermanyCloud Transformation /

Operation Services & XaaS

2017

20,000 m2

30 years of experience and

a publicly listed company since

2019

Experton Group & West Trax

SAP HANA Leader

2019ISG Provider Lens

Leader GermanyPrivate/Hybrid Cloud – Data Center

Services & Solutions

Revenues of more than

million Euros planned in 2019

(including telecommunications)

Proprietary TÜV and ISO-certified data centres with

data centre space

QSC AG

Transaction with EnBW was closed as of 30 June 2019>

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TC subsidiary Plusnet was sold for € 205 million (enterprise value)>

Beginning of new era of growth>

Clear market focus on Cloud, SAP and IoT>

Clear sector focus on retail, manufacturing and energy>

QSC sold its TC business in Q2 2019

QSC AG

Successful transaction brings QSC back on growth track

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Performance of QSC’s market segments*

2010 2018

* Basis: Index 100, simplified – source: Federal Statistical Office 2019

100

170

90

Strategy 2020plus:

Further development of QSC AG

into market outperformer

Plusnet sale:

Successful transaction at upper end

of expectations

IT & IoT

business

TC business80

180

QSC AG

QSC now operates in the high-growth IT and IoT market

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SAPCloud IoT

B2B market in

Germany

€ 30 billion

2020

B2B market in

Germany

€ 25 billion

2020

B2B market in

Germany

€ 10 billion

2020

Sources: Experton 2017; PAC/own research; Deloitte, IoT study 2016

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Umfassendes

Leistungsportfolio

für die

Digitalisierung

Comprehensive

service portfolio

for digitalisation

SAP Services &

Consulting

Internet of Things &

Industrie 4.0

Cloud Services &

IT-Outsourcing

Colocation &

Virtual Datacenter

QSC AG

Sector-specific solutions

QSC is combining standardized and tailor-made services

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IT services for SMEs(Cloud and SAP)

Strategic partnerships

Retail

IoT products and solutionsfor Industry 4.0

Manufacturing Energy

Standardised and scalable products and services for all SME sectors+ Sourcing advisor

QSC AG

QSC is focussing on the German Mittelstand

Provider

Direct sales

Global player

Web hosters ~3,500,000

~16,000

~50,000

~550

30

Number of German companies by size group

Top-tier mid-size

Mid-size

Small businesses &

micro-entrepreneurs

Large companies

DAX-listed

companies

10

Direct Sales

QSC AG

Q2 2019: Financial update

QSC AG

Revenues € 85.2 million>

Key financial highlights Q2 2019

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EBITDA € 129.9 million>

EBIT € 115.5 million>

Net income € 106.1 million>

Free cash flow € 156.7 million >

QSC AG

Q2 2019 statement of income shaped by Plusnet deal

Main one-off effects

− Higher admin expenses due

to transaction costs

− All major cost items affected

by migration costs

− High other operating income

due to deconsolidation gain

− Higher financial expenses due

to repayment of debt

− Higher taxes due to transaction-

based income tax

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QSC AG

Cloud: Investing in future growth

− Higher recurring revenues with Cloud Services

led to a 26% increase in revenues in Q2 2019

− High growth necessitates ongoing investment

in personnel, technology and sales

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1 IFRS 16 effect

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Outsourcing: New structure is taking shape

− Revenue development mainly influenced

by two factors:

− Step-by-step migration of existing

customers to Cloud Services

− Termination of two large contracts in 2019

− All other contracts were extended or even

expanded in scope in 2018/2019

− Reorganisation to continue in 2019 as planned –

leaner organisation is taking shape

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1 IFRS 16 effect

QSC AG

Microsoft

SAP

Microsoft and SAP

Including/excluding IFRS 16 effect

Consulting: Double-digit growth in Q2 2019

− Consulting on fast growth track in 2019:

revenues up by 13%

− High demand especially for SAP HANA projects

− Strenghtening personnel as well as

drawing on external consultants impacted

segment contribution

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1

QSC AG

Telecommunications: Normalisation in reseller business

− Ongoing normalisation in TC reseller business;

in H1 2018, QSC benefited from a favourable

market environment

− Revenue decline had a impact on the segment contribution

− After the Plusnet deal, TC segment will still include the stable colocation business

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TC revenues with resellers

TC revenues with corporate customers

TC total

IFRS 16 effect1

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Q2 2019: Revenue split between QSC and Plusnet

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QSC AG

Focus on growth: Three uses of Plusnet sales proceeds

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Accelerated implementation of growth strategy

Potential acquisitions for targeted additions to technology portfolio

Full repayment of debt (concluded as of 30 June 2019)

1

2

3

QSC AG

M&A: Targeted additions to technology portfolio

To accelerate growth, QSC intends to acquire small tech specialists. Their profile:

− Unique technology in the field of AI, Cloud Services, Data Analytics, IoT

− Proof of concept done

− First customers or projects on board

− Revenue generation has started

− Majority participation possible

− Manageable investments (less than € 10 million investment per deal)

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QSC AG

QSC is free of debt

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− As of 30 June 2019, QSC fully

repaid its external debt

− High net income led to an

increase in equity ratio to 73%

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FY 2019 and beyond: Outlook

QSC AG

The updated forecast take into account the premature closing

of the Plusnet sale

Revenues of more than € 235 million

EBITDA of more than € 140 million

Free cash flow of more than € 130 million

On track to reaching the updated forecast

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QSC AG

QSC to start continuous growth from Q3 2019

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Q3 2019 will be characterised by:

− Ongoing growth in Cloud

and Consulting

− Further investments in future growth

(e.g. Cloud and IoT specialists as well

as SAP consultants)

QSC AG

High TCV is strengthening growth

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Latest customer wins

− DATEV extends colocation contract

by 10 years

− DIY retail chain FISHBULL commissions

QSC to introduce SAP S/4HANA

− Swiss steel group SCHMOLZ + BICKENBACH

opts for multi-cloud solution

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2022: Revenues of € ~200 million, EBITDA >10%, positive free cash flow

Future investments and M&A

“Digitaliser to the SME sector”

Attractive

business portfolioTop innovations

Effective “go-to-

market” approach

New & experienced

management team

− Highly scalable

− Recurring revenues

− New technologies

− New combined

services

− Strategic partners

− Sector focus

− Top expertise

− Entrepreneurial

approach

Strategy 2020plus: Focus on profitable growth

QSC AG

IoT

SAP

Cloud

Highly scalable and recurring business in 2022

− Application management services

− Integration of SAP into IoT

− SAP cloud business (HEC)

− S/4HANA migration*

− Infrastructure-as-a-service

− Multi-cloud management

− Cloud transformation*

− IoT devices

− IoT operations

− Edge computing

€ ~50 m

€ ~100 m

€ ~50 m

* Project business

More than 80% of our business is

highly scalable – with recurring

revenues

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QSC AG

We bring innovation to SMEs

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New technologies (examples) New combined services (examples)

− Multi-cloud and DevOps

− Artificial intelligence

− Analytics

− Permissioned Blockchain

− 5G and NB-IoT

− …

− Digital workplace

− Smart building technology

− Digital store

− Digital supply chain

− Coupling OT and IT

− …

Specifically

− S/4HANA

− Edge computing Specifically

− “Sensor meets business”

QSC AG

Strategy 2020plus: Double-digit-growth

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2018* 2022

€ 135 million

€ ~200 million

Revenues

* QSC (excluding Plusnet subgroup)

EBITDA >10%

Positive FCF

QSC AG

Appendix

QSC AG

Founders increase shareholding in June 2019

In June 2019, QSC’s two funders acquired

shares as follows:

Gerd Eickers1 200,000 shares

Dr. Bernd Schlobohm2 250,000 shares

Neither founder has yet sold any QSC shares -

share ownership is now structured as follows:

12.71 % Gerd Eickers1

12.70 % Dr. Bernd Schlobohm2

74.59 % Free float

1 Founder and member of Supervisory Board2 Founder and Chairman of Supervisory Board

Status: 31 July 201931

QSC AG

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

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QSC AG

Mathias-Brüggen-Str. 55

50829 Cologne