Post on 30-Jun-2020
QSC AG
THE DIGITISER TO THEGERMAN SME SECTOR
ODDO BHF Nextcap Forum 2018Paris, 6 June 2018
QSC AG
Disclaimer
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This presentation contains statements relating to the future which are based on estimates of the QSC AG
(“QSC“) Management Board and which reflect its current views on future events. The statements
relating to the future correspond to the circumstances at the time of creating the presentation.
Statements of this nature are subject to risks and uncertainties which QSC is largely unable to influence.
These risks and uncertainties will be dealt with in detail in the risk report as part of financial reporting.
Although the statements relating to the future have been made with the greatest of care, their
correctness cannot be guaranteed. The actual results may therefore differ from the expected results
described here. QSC shall neither adjust nor update statements relating to the future after publication
of the presentation.
QSC AG
1. Business overview
QSC AG
Key figures at a glance
Revenues of
€357.9min 2017
Proprietary
TÜV and
ISO-certified
data centres on
20,000 m²
Proprietary
nationwide
All-IP-based
network
>30,000SME customers
years
of experience30
Awards Experton Industrie 4.0/IoT
Rising Star 2017
Experton Security
Leader 2016
Experton Cloud
Leader 2016
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~1,350 employees
in 12 locations
QSC AG
Our mission
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With decades of experience and
expertise in the areas of Cloud, Internet of Things,
Consulting, Telecommunications and Colocation,
QSC accompanies its customers securely
into the digital age.
QSC AG is the digitiser of the
German SME sector.
Secure.
Innovative.
At your side.
QSC AG
The base of digitization: Cloud solutions
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Our cloud solutions offer all the
benefits of cloud technology and
covers all aspects of a company’s
IT landscape:
Available on every end appliance
Needs-based invoicing
Available around the clock
Uncomplicated provision
Data security
QSC AG
Digital
QSC portfolio SAP HANA
Platform
SAP S/4HANA
Proprietary
IoT Cloud
platform for a
large number
of IoT and
Industry 4.0
scenarios
Managed
Security
Services
Certified
German
Data Centres
All-IP Voice
and Data
Services
Corporate
Network
Services
Workplace
Services
Application
Services
Communi-
cation as a
Service
Multi Cloud
Key digital
technologies*
Portfolio covers the key digital technologies
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IOT ALL-IPBIG DATACLOUD SECURITY
* Sources: Bitkom, Crisp Research, IDC, own research
QSC AG 8
1. We offer a full-range portfolio covering Cloud, IoT, Consulting, Colocation and
Telecommunications with a proprietary data centre and network infrastructure
2. We are an agile service provider, understanding the business and the needs of SMEs
3. We guarantee end-to-end quality
Proprietary TÜV and
ISO-certified
data centres in
Germany
Proprietary cloud and
multi-cloud solutions
Proprietary high-
performance data
and voice network
End-to-end
services covering all
aspects of digitisation
What makes QSC unique in the competitive environment
QSC AG
DAX enterprises
Major enterprises>5,000 IT seats/employees
Small and very small
enterprises<50 IT seats/employees
9Sources: Federal Statistical Office, 2016; techconsult “IT-Cloud-Index” 2015
3,500,000
approx. 16,000
approx. 50,000
30
550
Global Players
Providers
Number of German
companies by size
category
Web hosters
Larger SMEs200 – 5,000 IT seats/employees
SMEs50 – 200 IT seats/employees
Direct sales
Indirect sales
Additional USP: The clear focus on German SME sector
QSC AG
2. Financial development in Q1 2018
QSC AG
Q1 2018: QSC posts revenue growth of 6%
Thanks to strong TC business, revenues increased to € 94.1 million
TC revenues up by 16%
Cloud revenues grew by 37%
Sales push: QSC won several new customers and extended contracts with existing ones
Profitability developed as expected; EBITDA came to € 9.2 million
Net profit increased by 50% to € 0.9 million
QSC now expects its revenues to tend towards the upper end of the € 345-355 million
range for FY 2018
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QSC AG
Revenues grew for the third consecutive quarter
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QSC AG
Revenues are being driven by momentum in TC business
13TC revenues with resellers TC revenues with corporate customers
QSC AG
Telecommunications: Double-digit growth of 16%
TC reseller business is benefiting from a favour-
able market environment and the highly efficent
Next Generation Network (NGN)
TC corporate business has won several
“Stadtwerke” as customers
Higher visibility even before the planned
spin-off attracts new customers
Thanks to increased sales activities, segment
contribution came to € 10.3 million
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TC revenues with resellers
TC revenues with corporate customers
TC total
Segment margin
QSC AG
Cloud: Ongoing high revenue growth
Higher recurring revenues with cloud services
led to a 37% increase in revenues in Q1 2018
Strong interest in IoT solutions; Munich Airport,
for example, is now testing the “EnergyCam”
Despite investments in future growth,
segment contribution is increasing
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Segment margin
QSC AG
Outsourcing: Renewed focus on SMEs
Latest revenue development mainly
influenced by two factors:
Step-by-step migration of existing
customers to the Pure Enterprise Cloud
Termination of one contract in Q3 2017
Revitalised sales activities
Ongoing organisational restructuring is having
an effect on the segment contribution
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Segment margin
QSC AG
Microsoft
SAP
Microsoft and SAP
Segment margin
Consulting: Margin rose to 20% in Q1 2018
Consulting is back on track; revenues
were higher than in Q3 and Q4 2017
Early focus on SAP HANA is paying off
Further optimisation of staff utilisation is
leading to a strong increase in segment margin
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QSC AG
Overall, profitability developed as expected
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QSC AG
Q1 2018: Net profit grew by 50%
Earnings
Gross profit burdened by higher
costs of revenues (as a result of
the altered revenue mix)
EBITDA developed as expected
EBIT is benefiting from lower
depreciation
Sustainable net profit
since Q1 2017
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QSC AG
Moderate CAPEX in Q1 2018
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Completion of initial investments in
cloud services has positive effects
on CAPEX
Ongoing investments in modernisation
of infrastructure and data services as
well as customer projects
QSC AG
FCF has returned to its customary Q1 level
Q1 development of FCF is usually influenced
by high prepayments for the full year
Additionally, severance payments for employ-
ees as well as for two former board members
were incurred in Q1 2018 as expected
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QSC AG
Given the good start to the year, QSC is now expecting:
Revenues tend towards the upper end of the € 345 — 355 million range
EBITDA of € 35 — 40 million
Free cash flow > € 10 million
Forecast 2018: Revenues tend to be higher
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QSC AG
3.Strategic outlook:New growth opportunities in the new organisation
QSC AG
Cloud & ITOProfit centre
The new vertical organisation at a glance
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ConsultingProfit centre
ColocationProfit centre
TelecommunicationsSpin-off planned
Internet of Things (IoT)Q-loud GmbH
QSC AG
New opportunities with corporate customers: NetCologne
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QSC provides central components
for the new cloud offering of
NetCologne
White label solution for the
development of cloud-based
telephone systems
Fast time to market (TTM)
thanks to flexible IT architecture
QSC AG
New opportunities with resellers: fibre optics
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More and more local authorities
are developing their own fibre
optic networks –
QSC can operate them
Since October 2017, QSC has
also been feeding this customer’s
network with voice, data and
IPTV functionalities
Fibre optic network will cover
50,000 FTTH and FTTB
connections
QSC AG
SECURITY & DOMAINS
SERVICES & SOLUTIONS
Colocation services: flexible and individual
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COLOCATION DATA CENTRE
Colocation rack
Cage & area
Twin data centre
Remote hands
Server, storage and network
VIRTUAL DATA CENTRE
Infrastructure as a service
Hybrid und private cloud
DevOps@QSC
Managed NetworkStorage on Demand
Managed OSManaged Virtualisation
Managed Monitoring
DDoS-Protection
Email Security VPN
DDoS Protection
Domains
Managed Solutions
Backup
Firewall SSL certificates
QSC AG
Consulting: QSC is an excellent SAP full-service provider
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QSC is an SAP Gold Partner
The partner status recognises performance in terms of service, quality and SAP
expertise. SAP customer projects and qualified customer references are included.
The award documents that the SAP-HANA offering as well as the project
implementation satisfy the high expectations of QSC customers.
The award is given to partners with special expertise and successful reference
projects for an SAP solution or sector.
SAP HANA Leader Germany 2017
The end-to-end approach – with which the SME sector is fully supported in
all SAP-HANA services – was highlighted above all else.
QSC publishes book on SAP
17 QSC authors, 1 topic: “Logistics with SAP”. The book was a bestseller at
SAP PRESS in November and December 2017.
QSC AG
Cloud: PEC convinces our customers
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Realisation
Provision of complete
business IT from the Pure
Enterprise Cloud
Highly available operation
in the QSC data centres
Database services
VoIP services
Operation of the entire
LAN/WAN
Assumption of all desktop
services
Outlook
Fast integration of
further life insurance
companies into the
IT environment
First life insurance
company has already
been acquired and
incorporated in the IT
by QSC
Objective
IT landscape is to grow
flexibly and swiftly with
the new business model
and rapidly increasing
data volumes
Secure operation of the
business IT in the German
judicial area
High availability
Provision of virtualised
enterprise workplace
environments
Cost efficiency through
modern procurement
model from the cloud
Sector: banks and
insurance companies
Revenues: € 1.3 billion
Headquarters: Bad
Homburg
QSC AG
The future belongs to the multi-cloud
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QSC AG
IoT: Q-loud convinces with full-stack approach
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Concept &Consulting
Software Development
System Integration
SecureConnectivity
StandardisedHardware
HardwareDevelopment
IoTPlatform
EcosystemHardware Production
HardwareRetrofit
IoT Backend
Innovator (2016)
QSC AG
Q-loud convinces in Smart Energy (NB-IoT)
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Energie meter- Electricity
- Gas
- Heating
- Water
Q-loud-
IoT adapterEnergyCam,
NB-IoT modem
Q-loud-
IoT data source
Big Data analytics,
user application,
smart support
On site /third provider
Equipment Integration / hardware / operation Application / analytics
868 MHz
AES encryption
Q-loud
Gateway
TCP/IP
MNO
NB-IoT
Edge Connectivity
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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Twitter.com/QSCIRde
Twitter.com/QSCIRen
blog.qsc.de
xing.com/companies/QSC AG
slideshare.net/QSCAG
QSC AG
QSC AG
Mathias-Brüggen-Str. 55
50829 Cologne, Germany