DGAP-News

As planned, QSC increases earnings and financial strength in 2015

DGAP-News: QSC AG / Key word(s): Preliminary Results/Forecast
As planned, QSC increases earnings and financial strength in 2015

29.02.2016 / 07:30
The issuer is solely responsible for the content of this announcement.

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As planned, QSC increases earnings and financial strength in 2015

- Revenues of EUR 402.4 million based on preliminary calculations
- EBITDA improves to EUR 42.2 million
- Free cash flow rises to EUR 7.1 million
- Cloud business to be consistently expanded in current financial year
- Return to growth course in 2017

Cologne, 29 February 2016. Based on preliminary calculations, QSC achieved
all of its forecasts for the 2015 financial year, some of which were raised
in the course of the year, and successfully implemented its cost-cutting
programme. The Company will be completing this programme in the current
financial year, while also pressing ahead with further substantial
expansion in its Cloud business. Already in mid-February 2016, QSC
presented the new Pure Enterprise Cloud service portfolio. This way, the
Company expects to return to overall revenue growth once again from 2017
onwards.

QSC achieved revenues of EUR 402.4 million in 2015, as against EUR 431.4
million in the previous year. The two smaller segments, Cloud and
Consulting, generated growth. Consistent with expectations, however, in its
TC business with resellers the Company witnessed a substantial downturn in
revenues due to market and regulatory factors. As expected, the Outsourcing
segment also reported lower revenues. Despite the reduction in overall
revenues, EBITDA based on preliminary calculations improved to EUR 42.2
million, up from EUR 35.0 million in the previous year. As expected, the
cost-cutting programme led to savings of significantly more than EUR 10
million in 2015 already, with around half of this sum due to staff cuts. As
of 31 December 2015, the total number of employees came to 1,454, compared
with 1,697 as of 31 December 2014. These cost savings also contributed
substantially to the increase in free cash flow to EUR 7.1 million, up from
EUR -24.9 million in 2014.

Proposed dividend of 3 cents

In view of these developments, the Company plans to distribute a dividend
once again for the 2015 financial year. The Management Board proposes a
distribution of 3 cents per share. As was the case for the 2015 financial
year, the Management Board will chiefly refer to the free cash flow when
determining dividend policy in the years ahead as well.