DGAP-News: QSC AG / Key word(s): Quarter Results QSC confirms preliminary figures for the third quarter of 2014 10.11.2014 / 07:30 --------------------------------------------------------------------- QSC confirms preliminary figures for the third quarter of 2014 - Revenues reach EUR 106.6 million - EBITDA totals EUR 8.8 million - Free cash flow stands at EUR 3.7 million Cologne, November 10, 2014. QSC's quarterly report published today does not contain any changes compared to the preliminary figures reported on October 16, 2014. Revenues totaled EUR 106.6 million following EUR 113.8 million for the same quarter the year before: Because of a noticeable downturn in the economy neither business with new ICT products nor IT Consulting and IT Outsourcing picked up discernibly following the summer vacation. Since revenues in high-margin lines of business, in particular, remained below expectations and since QSC, from the current fiscal year on, will no longer benefit from the return of a deferred income line item in the amount of EUR 5.2 million per quarter, EBITDA of EUR 8.8 million in the third quarter of 2014 was down from the previous year's level of EUR 19.4 million. Consolidated net income was EUR -6.2 million following EUR 4.7 million for the same quarter the year before. Free cash flow stood at EUR 3.7 million, compared to EUR 6.5 million in the third quarter of 2013. Dividend of at least 10 cents per share planned In view of the final figures for the third quarter of 2014, QSC confirms the adjusted guidance for the 2014 fiscal year, which was presented on October 16, 2014. As expected, the company anticipates revenues of at least EUR 430 million, an EBITDA of at least EUR 40 million, and - taking into consideration a one-off negative working capital effect of some EUR 18 million - a free cash flow of not more than EUR -12 million. The company still intends to pay a dividend of at least 10 cents per share for the 2014 fiscal year. QSC started to specifically strengthen its sales operations as early as the summer of 2014; as a result, order bookings of EUR 55.3 million were recorded in the third quarter of 2014 - the highest level in the past two years. The company has also been pushing the sale of new ICT products since autumn 2014, with an entire package of measures, including the development of an independent sales unit for the new products, a telesales team to directly address smaller and mid-sized businesses, and an onboarding team for the active transition of customers into the cloud age. QSC to publish guidance for fiscal 2015 at the end of January 2015 already These growth measures, alongside a comprehensive program to recover QSC's customary profitability, will have a positive effect in the course of 2015. To this end, QSC is currently scrutinizing all expense items and processes. These measures will be directly incorporated into the guidance for fiscal 2015, which QSC will already be publishing, together with the initial preliminary figures for the 2014 fiscal year, at the end of January 2015. QSC's CEO Jürgen Hermann explains: "The course of business so far in 2014 has shown weakness primarily in the marketing of our comprehensive ICT service range. We therefore continue to work flat out at specifically strengthening sales. At the same time, the efficiency of service provision and cost awareness must be enhanced. On this basis QSC will recover profitability during the course of 2015."

In EUR million                            Q3 2014                   Q3 2013
Revenues                                  106.6                     113.8
EBITDA                                    8.8                       19.4
EBIT                                      -3.9                      5.5
Consolidated net income                   -6.2                      4.7
Free cash flow                            3.7                       6.5
Capital expenditures                      6.3                       16.4
Workforce*                                1,709                     1,664

* As of September 30 Notes: The 9-month report is available for download at www.qsc.de/en/qsc-ag/investor-relations.html. This corporate news contains forward-looking statements. These forward-looking statements are based on current expectations and forecasts of future events by the management of QSC AG. Due to risks or mistaken assumptions, actual results may deviate substantially from those made in such forward-looking statements. Queries to: QSC AG Arne Thull Head of Investor Relations Phone: +49 221 669-8724 Fax: +49 221 669-8009 E-mail: [email protected] --------------------------------------------------------------------- 10.11.2014 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG. The issuer is solely responsible for the content of this announcement. The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de --------------------------------------------------------------------- Language: English Company: QSC AG Mathias-Brüggen-Straße 55 50829 Köln Germany Phone: +49-221-6698-724 Fax: +49-221-6698-009 E-mail: [email protected] Internet: www.qsc.de ISIN: DE0005137004 WKN: 513700 Indices: TecDAX Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin, Düsseldorf, Hamburg, Hannover, München, Stuttgart End of News DGAP News-Service --------------------------------------------------------------------- 295989 10.11.2014