ICT services for small and mid-size companies

Two fundamental changes had prompted QSC to begin a transformation process early on: Firstly, information technology (IT) and telecommunications (TC) are converging into a consistent ICT market; secondly, the ability to process data in the Cloud from anywhere and on any end-user device is playing a rapidly growing role in this market. At the heart of QSC’s transformation process was therefore its evolution from a TC network operator into a provider of ICT services and the expansion of its Cloud competence.

In the fiscal year 2011, QSC accelerated this transformation process through the acquisition of two IT specialists, thus obtaining the necessary skills and equipment for Cloud applications: QSC has held all shares of IP Partner since January 3, 2011. On May 2, 2011, QSC acquired the majority interest in publicly traded INFO AG.

The expanded portfolio of an ICT provider is opening up huge growth potential for QSC, as shown by the Company’s 5-year strategy, which was debuted on October 6, 2011. This strategy focuses on three growth paths:

• Selling additional products and solutions to QSC’s some 30,000 customers today (cross- and upselling)
• Marketing products and services for Cloud applications, under which organizations are increasingly outsourcing their own IT
• Developing scalable Cloud services for new markets, such as the energy industry.

QSC considers revenues of between 800 million euros and one billion euros to be achievable on the basis of this strategy. The Company will continue to focus on profitable growth: QSC is striving for an EBITDA margin of 25 percent and a free cash flow of between € 120 and € 150 million for 2016.