DGAP-Ad-hoc: QSC AG / Key word(s): Miscellaneous QSC completes cost-cutting programme with one-off write-downs 20-Dec-2016 / 15:04 CET/CEST Disclosure of an inside information acc. to Article 17 MAR, transmitted by DGAP - a service of EQS Group AG. The issuer is solely responsible for the content of this announcement. --------------------------------------------------------------------------- QSC completes cost-cutting programme with one-off write-downs Cologne, 20 December 2016. QSC AG is completing its two-year cost-cutting programme at the end of 2016. Cumulative savings have significantly exceeded the figure of EUR 20 million targeted for 2016. The programme has promoted the organisational restructuring process and assisted the Company in consistently realigning its activities towards cloud-based services. Over the next three to four years, QSC intends, among other measures, to migrate a major share of customers in its conventional outsourcing business to the Pure Enterprise Cloud and thus to its "Cloud" segment. With regard to the future revenue and earnings performance in the Outsourcing segment, the Company has now decided to recognize a one-off write-down of EUR 13.9 million on this segment's goodwill and intangible assets in the 2016 consolidated financial statements. These items chiefly result from the takeover of conventional outsourcing provider INFO AG in 2011. As part of this realignment, QSC will also be parting company with its subsidiary FTAPI Software GmbH in the context of a management buyout. This will result in one-off write-downs of EUR 1.5 million. These decisions will not impact on the full-year forecast for 2016. QSC continues to expect revenues of EUR 380 million to EUR 390 million, EBITDA of EUR 34 million to EUR 38 million and free cash flow of more than EUR 7 million. Notes: This ad-hoc announcement 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. Contact: QSC AG Arne Thull Head of Investor Relations T +49 221 669-8724 F +49 221 669-8009 [email protected] www.qsc.de --------------------------------------------------------------------------- 20-Dec-2016 CET/CEST The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Archive at www.dgap.de --------------------------------------------------------------------------- Language: English Company: QSC AG Mathias-Brüggen-Straße 55 50829 Cologne Germany Phone: +49-221-669-8724 Fax: +49-221-669-8009 E-mail: [email protected] Internet: www.qsc.de ISIN: DE0005137004 WKN: 513700 Listed: Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange End of Announcement DGAP News Service --------------------------------------------------------------------------- 531931 20-Dec-2016 CET/CEST