q.beyond AG

Yes. Thank you, Mara.

Hello, everybody. Nora and myself, we'd like to present you the Q1 figures.

And before I hand over to Nora, I'd like to give you a little update about the strategy we announced in March, where we are. Little recap.

We built this strategy on the foundation of what we already have. So this is very important to say.

So we will keep our current model, consult to operate, with consulting and managed service. And build on that, let's say, 3 elements on top.

One is industry focus. So we like to have more vertical expertise in several industries.

We play 2 macro trends. One is in health care.

There, we will look at the 2,000 hospitals in the region of Germany, Austria and Switzerland. And in the energy sector, the 700 local energy providers, Stadtwerke in Germany.

So health care, we're all getting older, so we have to transform our health care system. And in energy, the macro trend is everything gets electrified and we need more energy for that.

And also on top of that for the AI system which is building up. And there, we like to have a -- there we have to like step in the door, let's say, or foot in the door, not a step, and we will keep our other industry -- big industries like logistics or retail.

So this is number one. So we will put on top of technology, we will put industry expertise.

Therefore, we will have more business and more margin. On top of that is AI.

AI is like internet, like cloud, the next -- or mobile, the next big tech revolution. It's already there.

It's building up. And our job will be, as we do it right now with other technologies like SAP, we will build agents and we will run agents for our customers in managed service.

And we see it right now, it's getting bigger and bigger and bigger. And therefore, this, for us, is a new portfolio.

And internationalization is we will roll out our business model in the countries we have already, like the Baltics and Spain and maybe some others. Let's see what happens.

So this is our strategy with the -- where we drive further what we have already achieved in the last 3 years. So where we are right now, we tried to put some flesh on the bone, as you see here.

For industry focus, we prolonged a lot of contracts. One was the major contract with Rohlig for 5 years with over EUR 100 million in TCV in the 2 major industries we have right now.

And we are in serious talks, that I can say, in the health care sector to form a joint venture in that space. So this is developing, and we see it on both, let's say, not segments, but in both areas.

So we have a track record in the already existing industries, and we are close to do the first, at least for us, major step in the health care sector. AI orchestration, as I said, we are going to build agents for our clients and run the agents.

There we have -- in Q4 and Q1, we have acquired plus 10 customers for that. Our wins in the first quarter was up to 7%, also with the help of the 10 new clients.

And we launched by ourselves right now 30 agents, 30 AI major agents for q.beyond to drive internal efficiency. It's not only a game for us that we do it for our clients.

It's also important that we, let's say, be more efficient every year in using AI. So the internationalization that we already discussed with you, so we are rolling out go-to-market activities in the Baltics and Spain.

And we decided Q4 to start a third nearshore center in Cluj, Romania because of SAP expertise, huge SAP expertise in this area or in this country. And also, we will transfer our, let's say, service desk activities to Romania combined with AI to be better in that space also.

So this is it for the strategy. We are quite, I would say, quite on track from our point of view in the first quarter.

I'd like to speed it up for the upcoming -- for the rest of the year. So with that, I hand over to you, Nora.

Thank you, Thies. Welcome from my side too.

Q1 started as expected. Let me share a fitting metaphor.

q.beyond's direction is like flying in an airplane with a clear flight plan and a permanent check of navigation data, and we adjust accordingly. This is our Strategy 2028, which follows on from our very successful Strategy 2025.

For Q1, this means a strong focus on portfolio and investment in AI expertise. 2025 was a year of quality adjustment, but our resilient and structurally stabilized business model with nearly 70% recurring revenue is the basis for a successful Strategy 2028.

An impressive sales funnel of more than EUR 200 million will lead to rising revenues in the next quarters, especially in H2. Additionally, we gained more than 7% order entry than in Q1.

We report traditionally 2 segments: consulting and managed services. Starting with consulting.

It's growing against the market trends. We earned more than 30% gross profit, plus 3% margin and plus 3% revenue.

This is a result of a clear improvement utilization and a higher demand for AI consulting and S/4HANA transition. The margin shows clearly that the focus on portfolio and capacity control is working.

The second segment, managed services, earns an attractive margin, but it's due to lower investment. There are 2 effects.

The first, the cyclical new business 2025. And second, the investment in our AI expertise.

We are not focused on cost cutting at any cost, but rather on ramping up our pipeline. Let's have a short look at our P&L.

The revenue for Q1 was EUR 42.8 million, EBITDA EUR 1.5 million, a temporarily negative consolidated net income which is expected for year to become positive. As expected, all results are impacted by expenses related to AI expertise and internationalization, as Thies said before.

In other words, we made upfront investment for scaling. We are talking about investment cycle visibility here, not structural margin erosion.

Our net liquidity is rising, plus EUR 0.6 million in Q1 and a net liquidity of EUR 42.6 million. Gaining liquidity is good, but we want more profitability.

We invest a lot of time in new possible acquisition targets. Unfortunately, one failed in Q1.

And at the moment, we have promising talks, so maybe there will be more information in the next months. Our company is debt-free, and the net liquidity that corresponds to EUR 1.71 each share shows a high potential.

2026 brought and brings several milestones for q.beyond. The EGM and the capital reduction finally cleaned up our balance sheet, especially the accumulated deficit.

As the aimed result, q.beyond would be able to share to -- sorry, q.beyond would be able to have share buybacks or pay dividends without endangering the financial stability. So we are well prepared to implement the Strategy 2028.

Our most important message today: we confirm the guidance for 2026 based on our Strategy 2028. It's a very clear signal that the execution of our strategy and pipeline compensates the macroeconomic pressure we suffer at the moment.

We expect revenues between EUR 182 million to EUR 190 million and EBITDA between EUR 10 million and EUR 16 million and a positive free cash flow. Additionally, a positive consolidated net income.

We combine investments for growth and the expectation that the pipeline and financial results provide the foundation for shareholders will be very successful if it's finally decided legally. So this is the end for the financials for today in this presentation, and I hand over again to Thies.

Yes. Thank you, Nora.

So a little outlook, '26, '28. We mentioned already.

Q1 was 7% up concerning total contract value or the bookings. So we like to keep this momentum.

We have a sales funnel, so we have already EUR 40 million roughly in the books end of April or beginning of May, and have additionally a sales funnel of EUR 200 million. So we are assuming that the next quarter will be higher in revenue and we get a book-to-bill over 1 this year, which was the case last year and will be the case also next -- this year, therefore we have an indicator for '27.

Concerning the strategy, we said the aim is concerning revenues, EUR 250 million approximately, with an EBITDA margin of 10%. How do we reach that?

Three elements. One is organic growth, 5%.

Then M&A strategy, roughly EUR 20 million revenue and the AI orchestration should be at least EUR 20 million end of '28 so that we are -- at least when we look at our strategic approach and plan, that we have a high visibility of the numbers. And the funnel will get us -- the high funnel will get us to a growth this year.

Having said that, in summary, what we'd like to achieve. Industry focus will give us business and higher margin.

AI orchestration. With that, we will be relevant for our -- we are relevant, we will be relevant and we'll have a new portfolio and new business and internationalization, let's say, further growth opportunities European-wide, and this is also what the customers from us are expecting.

Yes, thank you very much for your time, and we're happy to answer your questions and comments -- and get your comments. Thank you.

Can you hear me now?

Yes.

I was just wondering, looking at the guidance, especially on the bottom line, which continues to be EUR 10 million to EUR 16 million. What needs to happen for you to reach the upper end of this range?

Because honestly, I'm looking at the Q1 now and also the environment, I had a hard time seeing you at EUR 15-plus million EBITDA this year.

So the range we picked as -- we like to have a range where we are, let's say, prepared for whatever will happen with the German or European economy. So and at the lower end, I think we are well defended.

We are well defended with our current business model. And at the higher end, everything must work out.

So there are especially -- so for instance, when we look at clients which have -- where we get, let's say, as an example, where we get kickbacks from the vendors, where we have special deals. So this will be -- this will help us to get the higher end.

So there are certain elements in it, but everything must work out to get the EUR 16 million.

Okay, I understand. Good to hear that you feel well protected on the lower end.

In the last calls, you mentioned that you already have, like, I think it was around 300 agents in place, which most of them use this internally. Already have some leads, perhaps some monetization.

How is this going so far?

I think the low-hanging fruits have been harvested. So all, what, concerning reporting, so most of the agents -- so low-hanging fruits had been harvested.

Most of the agents are in managed service and in central for also in, let's say, in the shared service part for reporting, patching and process automation. So low-hanging fruits have been identified, have been harvested.

Now we tackle, let's say, the more complex, complicated agents. So this is a track right now, but it's evolving all over the company.

I think everyone, or most of the people, I must say, have at least understand the potential. And now it's -- if we all know that if an agent -- if we build an agent, they have to run the governance, they have this -- the agent have to be compliant and so on, so on, so on.

So it's getting a little bit more complicated, but potential is still there.

Okay, understood. And maybe -- you mentioned M&A that you had like a failed deal, you said, in the first quarter.

What's your -- I mean how confident can we be that you will add some inorganic growth throughout the year? And can you maybe remind us of maybe the scope of that?

Yes, you should -- you could be very confident. This is our strategic plan, so we will execute on this.

The one who failed, it's -- as leaders, you have to say often more no than yes. So for example, the price is not right, then we said no.

So therefore, we didn't pick it. Though the add-on, it depends a little bit how big the targets are in terms of revenue.

I would not allow myself to give an answer right now, but there will be an impact. And the most important thing is not, let's say, the number right now, so the potential for the future.

So as I'd like to explain, we are targeting for health care, we are targeting the 2,000 hospitals in Germany, Switzerland and Austria because most of them, they're behaving like a midsized company, like the German Mittelstand. Yes, they are public owned, in some cases, but they still behave like that, and it's -- the same is true for the 700 Stadtwerke in Germany at least.

So this is the potential we see in the next years, also the -- plus the transformation, let's say, pressure they have. And this is much more important than the figures right now.

Okay, but health care is clearly crystallizing as the priority...

Yes.

Can you hear me, Thies, okay?

Yes, we hear you.

I heard a weird sound, but okay. First, what caused the rise in consulting profit?

Maybe you can expand a little bit on this further, especially compared to the third quarter last year where you had the same level of revenue. And then my second question would be on what amount of investment and expenses in AI are you expecting in the coming quarters?

We didn't get the first question. Can you repeat it, please?

Yes. If you could expand further on the rise in consulting profit you had in this quarter, especially in comparison to the third quarter in the last year where you had the same level of revenue but lower gross profit.

Yes. For consulting, it always depends on the mixture -- on the revenue mixture we are showing.

I don't have the Q3 figures in my head, but I would assume there are -- there's revenue in it, which is not so profitable as in Q1. So for example, if you have license in it or, let's say, onetimers, which are not so profitable.

And what I can say for Q1, it's real consumption which we have driven. So this leads us -- and this is what we like to see, this leads us to the higher margin.

So there's a structural effect in it when you compare the Q3 to the Q1 figures. And concerning AI investments, we believe the majority is done.

What we are now figuring out is which models to use. For example, we have started with Microsoft Copilot.

This works out for some part of the company. Anthropic is now on top of it, so Claude.

And now we have both. Maybe we have a third one.

And so I think the most -- the major part is done, and now it's about optimization of the several systems. And then do it -- and do we need to provide every employee with an AI tool?

Or do we provide our employees with agents they can use. So we will optimize that.

So my answer would be majority is done.

Can you hear me?

Yes.

I was just wondering why you choose to add a new nearshore hub in Romania rather than expanding in Spain or Latvia, for example.

Two reasons. One is language, at least for the 2 reasons.

One, the first reason is language. We have a lot of clients, and I showed you the prolongation we did in Q4 last year, Q1 this year, so the contract prolongation.

And there are several others to come which have a service desk element in it, service desk portfolio. And we got a lot of pressure from our clients, also cost-wise.

So we were looking for an answer to reduce the cost. One is, for sure, human resource.

The other one is AI. The midsize company are not ready to use full AI-powered service desk, so we will build up one half-half, one with Romanians -- German-speaking Romanian resources plus AI, and therefore we cover the service desk portfolio.

This is reason number one. And reason number two is that we -- Nora mentioned it, that we are very successful in the SAP business right now.

Our assumption is that this will be at least midterm to long term. So we see that we need to provide our customers with services, application management services where we run the applications for them.

But we see also the cost pressure, also when the customers are globally -- the setup is globally or European-wide, and you find in Romania they have a good SAP-skilled workforce. And these were the main 2 reasons.

To be honest, it took us some discussions because of complexity. You mentioned it, the third one.

But now we are convinced that this is the right answer for this kind of 2 portfolios. So service desk and SAP application management.

I see. Great.

Could you perhaps give us some approximate estimation of the costs related to international expansion and AI, as you mentioned, is holding back the earnings in the quarter?

It's a figure, what is it, several million per quarter. It was in Q3, Q4 and Q1.

So let's say between EUR 2 million to EUR 3 million, more or less.

Okay. Great.

And just lastly, you mentioned also discussions about the joint venture in health care. I mean what size are we talking about then?

Is it a greenfield or is it you going into something that's already up and running with quite some revenue? Or could you...

This will be a company which is up and running, which is very, very well positioned, let's say, in the health care segments for hospitals. And therefore, we would like to form a joint venture.

So we will take over the majority of the shares, let's say, 51% and then we will -- as we did for Logineer, I'm not quite sure if you know this case. So we have built a joint venture 5 years ago and the same setup 51% is with q.beyond, and then we drive with the other partner the business forward.

And this we like to do in health care and this we like to do in energy. Revenue is always around for the beginning, let's say, EUR 10 million to EUR 20 million for the targets.

And then we like to develop -- we develop this revenue with the joint venture partner further.

Thank you.

Bye.