THE DIGITISER TO THE GERMAN SME SECTOR

Transcription

1 ODDO BHF Nextcap Forum 2018 Paris, 6 June 2018 THE DIGITISER TO THE GERMAN SME SECTOR

2 Disclaimer This presentation contains statements relating to the future which are based on estimates of the ( 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. 2

3 1. Business overview

4 Key figures at a glance >30,000 SME customers ~1,350 employees in 12 locations Revenues of 357.9m in years of experience Proprietary TÜV and ISO-certified data centres on 20,000 m² Proprietary nationwide All-IP-based network Awards Experton Industrie 4.0/IoT Rising Star 2017 Experton Security Leader 2016 Experton Cloud Leader

5 Our mission is the digitiser of the German SME sector. Secure. Innovative. At your side. 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. 5

6 The base of digitization: Cloud solutions 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 6

7 Portfolio covers the key digital technologies Key digital technologies* CLOUD BIG DATA IOT SECURITY ALL-IP Digital QSC portfolio Workplace Services Application Services Communication as a Service 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 Multi Cloud * Sources: Bitkom, Crisp Research, IDC, own research 7

8 What makes QSC unique in the competitive environment 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 highperformance data and voice network End-to-end services covering all aspects of digitisation 8

9 Additional USP: The clear focus on German SME sector Providers Global Players 30 Number of German companies by size category DAX enterprises 550 Major enterprises >5,000 IT seats/employees Direct sales Indirect sales approx. 16,000 approx. 50,000 Larger SMEs 200 5,000 IT seats/employees SMEs IT seats/employees Web hosters 3,500,000 Small and very small enterprises <50 IT seats/employees Sources: Federal Statistical Office, 2016; techconsult IT-Cloud-Index

10 2. Financial development in Q1 2018

11 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 million range for FY

12 Revenues grew for the third consecutive quarter 12

13 Revenues are being driven by momentum in TC business TC revenues with resellers TC revenues with corporate customers 13

14 Telecommunications: Double-digit growth of 16% TC reseller business is benefiting from a favourable 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 TC revenues with resellers TC revenues with corporate customers TC total Segment margin 14

15 Cloud: Ongoing high revenue growth Higher recurring revenues with cloud services led to a 37% increase in revenues in Q Strong interest in IoT solutions; Munich Airport, for example, is now testing the EnergyCam Despite investments in future growth, segment contribution is increasing Segment margin 15

16 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 Q Revitalised sales activities Ongoing organisational restructuring is having an effect on the segment contribution Segment margin 16

17 Consulting: Margin rose to 20% in Q Consulting is back on track; revenues were higher than in Q3 and Q Early focus on SAP HANA is paying off Further optimisation of staff utilisation is leading to a strong increase in segment margin Microsoft SAP Microsoft and SAP Segment margin 17

18 Overall, profitability developed as expected 18

19 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 Q

20 Moderate CAPEX in Q 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 20

21 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 employees as well as for two former board members were incurred in Q as expected 21

22 Forecast 2018: Revenues tend to be higher Given the good start to the year, QSC is now expecting: Revenues tend towards the upper end of the million range EBITDA of million Free cash flow > 10 million 22

23 3. Strategic outlook: New growth opportunities in the new organisation

24 The new vertical organisation at a glance Cloud & ITO Profit centre Consulting Profit centre Colocation Profit centre Internet of Things (IoT) Q-loud GmbH Telecommunications Spin-off planned 24

25 New opportunities with corporate customers: NetCologne 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 25

26 New opportunities with resellers: fibre optics 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 26

27 Colocation services: flexible and individual 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 Network Managed Virtualisation SERVICES & SOLUTIONS Managed Solutions Managed OS Managed Monitoring Storage on Demand Backup DDoS-Protection SECURITY & DOMAINS Firewall SSL certificates Security Domains VPN 27

28 Consulting: QSC is an excellent SAP full-service provider 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

29 Cloud: PEC convinces our customers Objective Realisation Outlook Sector: banks and insurance companies Revenues: 1.3 billion Headquarters: Bad Homburg 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 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 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 Cost efficiency through modern procurement model from the cloud 29

30 The future belongs to the multi-cloud 30

31 IoT: Q-loud convinces with full-stack approach IoT Backend Innovator (2016) Concept & Consulting Software Development Hardware Retrofit System Integration Secure Connectivity IoT Platform Standardised Hardware Hardware Development Hardware Production Ecosystem 31

32 Q-loud convinces in Smart Energy (NB-IoT) Equipment Integration / hardware / operation Application / analytics 868 MHz AES encryption Q-loud Gateway TCP/IP Energie meter - Electricity - Gas - Heating - Water Q-loud- IoT adapter EnergyCam, NB-IoT modem MNO NB-IoT Q-loud- IoT data source Big Data analytics, user application, smart support On site /third provider Edge Connectivity 32

33 Contact Arne Thull Head of Investor Relations T F invest@qsc.de Twitter.com/QSCIRde Twitter.com/QSCIRen blog.qsc.de xing.com/companies/ slideshare.net/qscag 33

34 Mathias-Brüggen-Str QSC Cologne, AG Germany