Quarterly Statement Q3/2021

Quarterly Statement

Q3 2021

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q.beyond Quarterly Statement Q3 2021	02

At a Glance

Key figures

€ million	2021	2020	2021		2020
	01/07/ - 30/09/	01/07/ - 30/09/	01/01/ - 30/09/		01/01/ - 30/09/
Revenues	40.0	35.1	116.3		103.6
Cloud & IoT	30.0	25.1	84.9		72.4
SAP	10.0	10.0	31.4		31.3
EBITDA	29.4	(0.6)	31.4		(2.5)
Depreciation and amortisation1, 2	4.2	4.3	12.4		12.7
EBIT	25.3	(4.9)	19.0		(15.2)
Consolidated net income	20.7	(5.0)	13.8		(15.5)
Earnings per share3 (in €)	0.17	(0.04)	0.11		(0.12)
Capital expenditure4	3.3	0.5	6.6		3.0
Free cash flow	3.6	(3.9)	(4.2)		(11.4)
Net liquidity			28.0	6	44.9	7
Shareholders' equity			150.5	6	136.6	7
Equity ratio (in %)			74.9	6	71.6	7
Xetra closing price5 (in €)			2.02		1.31
Number of shares5			124,569,487		124,397,487
Market capitalisation5			251.6		163.0
Number of employees			1,037	6	936	7

1 Including non-cashshare-based compensation.

Including depreciation of right-of-use assets (IFRS 16). Diluted and basic.

Not accounting for IFRS 16. As of 30 September.

As of 30 September 2021. As of 31 December 2020.

q.beyond Quarterly Statement Q3 2021	03

Revenue growth accelerates from quarter to quarter in 2021 to date.

Revenues in € million

40.0

38.8

37.5	35.1
	34.5

34.1

+14%

+12%

+10%

Q1 2020

Q1 2021

Q2 2020

Q2 2021

Q3 2020

Q3 2021

q.beyond Quarterly Statement Q3 2021	04

Summary of Q3 2021

Business Performance

Revenue growth accelerates further

q.beyond's strong and profitable growth accelerated further in the third quarter of 2021. Revenues grew year-on-year by 14% to € 40.0 million. In the two preceding quarters, revenue growth rates stood at 12% (Q2 2021) and 10% (Q1 2021).

This dynamic performance in a year shaped by the pandemic has been driven by the unrelentingly consistent implementation of our "2020plus" growth strategy. This is also a key factor driving the sus­ tainable growth in the company's value. Measured in terms of market capitalisation less net liquidity, this key figure gradually rose by a further 8% to

• 223.6 million in the third quarter of 2021. Com­ pared with the previous year, the company's value has therefore almost doubled.

Successful concentration on focus sectors

The centrepiece of the company's growth strategy is an attractive core business with a high share of recurring revenues. In the third quarter, these accounted for 79% of revenues. We concentrate on digitalisation and on developing and implementing forward-looking business models in our focus sectors of retail, logistics, manufacturing and energy. These sectors accounted for 65% of revenues in the past quarter.

We are continually extending our strong position in these focus sectors by expanding our own intellectual property (IP). One key focus here is on develop­ ing platform innovations such as the StoreButler for

retailers. This one-stop solution comprising cloud and IoT technologies enables companies to connect any number of terminals and sensors via edge de- vices, integrates third-party IT applications without any problem and thus creates a uniform IT infrastructure for all digital solutions used by retailers.

When it comes to self-checkout at the store, the StoreButler draws on the prizewinning solution of­ fered by Snabble; q.beyond acquired a 25.4% stake in this start-up in July 2021 and provided extensive information about this in the Half-Year Financial Report. Snabble's self-checkout solution is already in use in dozens of stores, including stores at Aldi Suisse and at teo, Tegut's fully automated mini-­shop concept. At teo, Snabble provides the scan-and-go technology,­ the application and additional self-check­­ out solutions in the shop, including age verification functions.

Acquisitions support strategy

Acquisitions and investments are an important aspect of our growth strategy. They extend our IP and provide access to new growth opportunities. Our M&A strategy focuses on acquiring majority stakes in technology companies that boost our existing sector focuses, extend our product portfolio or supplement our available technological expertise. Spe­ cifically, we focus on technology providers with annual revenues of up to € 30 million and sustainably profitable business models. As was the case with Snabble, we also invest in start-ups in order to re­ inforce our sector-specific digitalisation platforms with innovative solutions.

q.beyond Quarterly Statement Q3 2021	05

Record volume of new orders in 9-month period

New orders amounted to € 25.4 million in the third quarter of 2021, with 74% of these attributable to new customers or new services for existing cus­ tomers. Furthermore, the company also extended existing contracts. At the end of the nine-month pe- riod, this key figure, which is of decisive importance to the company's medium-term growth, totalled

• 141.7 million and was thus 16% ahead of the pre­ vious year's figure.

Cloud & IoT revenues rise by 20%

The pandemic has convinced many companies to accelerate the migration of their IT to the cloud. We are benefiting from this trend to a particularly significant extent as we have pooled public and private cloud services into highly available, secure and scalable solutions for years now. This consistently strong growth in the Cloud business is one major reason why our company has been listed as one of Germany's fastest-growing IT service providers in the highly respected Lünendonk ranking. Together with datac, the new work specialist we took over in the second quarter of 2021, we are also promoting the digitalisation of workplaces and, among other benefits, making it easier for staff at our customers to switch flexibly between working in their offices or from home.

Persistently high demand for cloud solutions led to significant revenue growth in the "Cloud & IoT" segment in the third quarter of 2021. Revenues here grew year-on-year by 20% to € 30.0 million. As the business model in this segment is highly scal­ able, earnings once again showed disproportionate growth. Gross profit rose quarter-on-quarter by 41% to € 5.8 million, while the segment contribution grew by 129% to € 3.2 million.

The degree of scalability in q.beyond's largest segment is particularly apparent if the nine-month fig­ures are compared with those for the same period in the previous year. In the first nine months of the current financial year, revenues grew by 17% to

• 84.9 million, while gross profit improved by 52% to € 17.0 million and the segment contribution in- creased by 120% to € 9.9 million.

SAP segment contribution trebles year-on-year

The SAP business has been affected far more signif­ icantly than Cloud & IoT by pandemic-related restric­ tions on contact, which have made it more difficult to offer consulting and implement new solutions on site. In this challenging environment, the SAP team upheld revenues at a constant level in the current financial year. It benefited on the one hand from its early focus on the new S/4HANA software genera­ tion. On the other hand, business volumes have been stabilised by its broad-based approach. Alongside SAP consulting, we also offer SAP application ma- nagement, hosting and basic operations.

As in the previous year's quarter, SAP revenues amounted to € 10.0 million in the third quarter of 2021. At the same time, a high degree of cost dis­ cipline enabled gross profit to increase by 64% to

• 2.3 million in the past quarter. Thanks to lower travel and sales-related expenses, the segment con- tribution even trebled to € 1.8 million in the third quarter of 2021.

Year-on-year comparison of the nine-month figures underlines the sustainable improvement in profitabil­ ity. While the revenues of € 31.4 million in the current financial year to date are at the previous year's level, gross profit improved by 15% to € 6.0 million. The segment contribution almost doubled to € 4.3 million.