Leading mid-size player in the telecommunications industry

During the course of fiscal 2009, QSC further focused its strategic alignment, summing it up in a new Mission Statement:

QSC is the leading medium-sized provider in the telecommunications market who creates sustainable value for medium-sized companies, cooperation partners and employees through highest quality and customer focus.

In order to achieve this kind of positioning, the Company is striving for leading positions in the telecommunications industry in three areas:

- Profitability
- Customer satisfaction
- Employee satisfaction

Profitability
QSC’s strategy is aligned toward profitable growth, and thus toward sustainably increasing the value of the Company. In spite of the economic and financial crisis, QSC was thus able to increase its EBITDA margin, the key metric for profi tability, from 16 percent in 2008 to 18 percent in fiscal 2009.
In the coming years, QSC anticipates that profitable growth will stem first and foremost from its evolution from a network operating company to a service provider that generates a growing share of its total revenues in such forward-looking markets as Software as a Service and Cloud Computing. In this connection, QSC will be benefiting from the convergence of information and telecommunications technology, as it can be expected to spark increased demand for network-related services. Although the Company is primarily utilizing internal resources in its continuing development, it does not preclude the possibility of targeted acquisitions.

Customer satisfaction
With its new Mission Statement, QSC is sustainably and clearly positioning itself as a mid-size company for small and mid-size companies. Thanks to its own mid-size structure, QSC possesses a clear competitive advantage with small and mid-size companies, and can swiftly and competently satisfy the needs of these customers. The Company intends to broaden this competitive advantage in the coming years, and thus win new customers and increase its percentage of the ICT budgets of its existing customers through cross-selling of voice and data services, as well as through its offerings of additional networkrelated services. By constantly improving its service, QSC will at the same time further strengthen customer loyalty and generate profitable growth.

Employee satisfaction
It takes first-class people to provide first-class service. For this reason alone, the motivation and satisfaction of all employees is of crucial importance for QSC’s corporate success. All employees are self-directed within their own areas of responsibility; this plays a significant role in employee satisfaction. In the coming years, QSC will be further improving its human resources policies, thus developing even more strongly into a modern, socially responsible company that offers a performance-based yet equitable compensation system. This includes the introduction of a variable salary element for all employees, as well as standardization of the contract structures at the individual Group companies.