QSC presents roadmap for growth strategy

- Revenue growth of at least 13% to more than EUR 143 million in 2020
- Double-digit growth rates for subsequent years
- Sustainably positive EBITDA from fourth quarter of 2020

Cologne, 25 November 2019. QSC published its 2020plus growth strategy in May 2019. In the run-up to the Deutsches Eigenkapitalforum equity fair, QSC has now presented its roadmap for the next three years: For 2020, the Company plans to increase its revenues by at least 13% to more than EUR 143 million. Revenues for the current year - excluding the TC business sold as of 30 June 2019 - will amount to around EUR 127 million.

QSC will then maintain its growth course in the following two years: It has budgeted revenue growth of at least 16% to more than EUR 165 million for 2021 and growth of 20% to EUR 200 million for 2022. The Company expects to generate a sustainably positive free cash flow and an EBITDA margin of more than 10% in 2022. Milestones along the way include breakeven for EBITDA from the fourth quarter of 2020 and for the free cash flow from the fourth quarter of 2021 - with correspondingly sustainable developments in these key figures.

The most important foundation for this success is provided by QSC's unique IoT, SAP and Cloud portfolio, which offers hands-on support to SME players in seizing the opportunities presented by digitalisation for their own businesses. Furthermore, by focusing on the retail, manufacturing and energy sectors QSC is able to develop and implement industry-specific solutions in end-to-end quality. This way, the Company can offer specific and direct benefits for SME companies as they pursue their own digital transformation.

Scalability of business model

Comments QSC's CEO Jürgen Hermann: "We have brought QSC a huge way forward in recent years. The very successful sale of our telecommunications business in June 2019 has given us a further boost. We now have the focus and the means to continue investing in our staff and our portfolio. And we have our sights permanently set on growth." Since the third quarter of 2019, QSC has regained its growth course and will continue on this in the quarters ahead as well. The new orders of around EUR 107 million received in the first nine months offer planning reliability. Adds Jürgen Hermann: "Our developments and innovations are capable of deployment in a variety of customer scenarios and are used on an as-a-service basis. That creates scalability and ensures recurring revenues." In the third quarter of 2019, recurring revenues accounted for around 75% of total revenues.

Alongside organic growth, acquisitions and other investments are also possible. Just recently, QSC secured access to artificial intelligence and industry process optimisation by investing in aiXbrain GmbH. With its self-learning software, this company offers "planning-as-a-service" for industrial production. Internally developed software is becoming an ever more important factor: QSC already has more than 60 software developers creating innovative customer solutions. Explains Jürgen Hermann: "Digitalisation requires an IT landscape that supports new digital services and business models. Alongside our technology competence - ranging from sensors to SAP to Cloud - and our industry expertise, home-grown solutions provide a key building block for digital transformation."

QSC will publish further details on the 2020 financial year together with its preliminary results for the 2019 financial year at the beginning of March 2020.

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 events may deviate materially from these forward-looking statements.

Contact:
QSC AG
Arne Thull
Head of Investor Relations
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