QSC's 2020plus growth strategy: revenues of EUR 200 million targeted for 2022

- QSC plans double-digit revenue growth rates from 2020
- Highly scalable business model: 80% recurring revenues in 2022
- Growth driven by top innovations, strategic partners and sector focus
- EBITDA margin of more than 10% budgeted for 2022

Cologne, 27 May 2019. The successful sale of the Plusnet telecommunications subsidiary was a key milestone at QSC AG as it heads into a new phase of growth. The digitaliser of the German SME sector will now implement its 2020plus growth strategy more rapidly and plans to generate revenues of EUR 200 million in 2022. Excluding Plusnet, 2018 revenues came to EUR 135 million. Furthermore, QSC plans for an EBITDA margin of more than 10% and a positive free cash flow in 2022.

Comments QSC's CEO, Jürgen Hermann: "We are now a growth company once again. We operate solely in growth markets and have a portfolio tailored exactly to the needs of our SME customers. Our business is built on our great technological expertise, above all in Cloud, SAP and IoT, which we combine intelligently." Long-term customer relationships mean that recurring revenues will account for 80% of total revenues in 2022.

Innovations and strategic partnerships as key growth drivers

QSC will further expand its existing Cloud, SAP and IoT portfolio in the years ahead and extend this with software developments covering larger shares of the vertical value chain. One current example is the solution being developed for networked production at manufacturers. This technology will for the first time combine automation technology with company IT, closing a gap on the way towards networked production. It comprises what might be termed a "Fritzbox for Industry 4.0" and is currently the only solution in Europe that combines OT and IT. QSC may also make targeted acquisitions of highly scalable technologies to expand and verticalise its existing portfolio.

In its solutions business, QSC will focus more clearly on the three sectors of retail, manufacturing and energy. This way, it will provide targeted support addressing specific challenges and business models in these sectors. Its standardised products will still be targeted at corporate customers across all sectors. A proactive go-to-market approach will generate strong growth momentum. In particular, by expanding its strategic partnerships with companies such as SAP, Microsoft and other specialists, QSC intends to broaden and multiply its market access. Furthermore, sales activities are due to step up a gear. Notable successes in recent weeks include major orders placed by the Fressnapf Group and the steel conglomerate SCHMOLZ + BICKENBACH.

Experienced six-member management team

A new management team of six will work alongside the Management Board to accelerate implementation of the growth strategy. This comprises: Thies Rixen (Head of Cloud and IT Outsourcing), Thorsten Raquet (Head of SAP and Innovation), Dr. Myriam Jahn (Managing Director of the IoT subsidiary Q-loud), Rüdiger Hofer (Head of Colocation), Waldemar Gerlach (Head of Strategic Partner Management), and Christoph Reif (Head of Finance). Adds Jürgen Hermann: "We now have all the competencies we need on board and can implement our growth strategy more rapidly. Our target for 2022 is clear - revenues of EUR 200 million."

Notes:
This Corporate News contains forward-looking statements that are based on current expectations and forecasts on the part of the management of QSC AG with regard to future events. Due to risks or erroneous assumptions, actual results may deviate materially from these forward-looking statements. Explanations of the key financial used can be found in the 2018 Annual Report of QSC AG (available at: https://www.qsc.de/en/investor-relations/ir-publications).

Contact for enquiries:
QSC AG
Arne Thull
Head of Investor Relations
T +49 221 669-8724
F +49 221 669-8009
[email protected]
www.qsc.de