Deutsche Payment A1M SE publishes half-year report 2022

• Operational and organizational processes continue to be established as a basis for growth
• Brokerage successes underline growth in business activities
• Extensive projects in technical infrastructure, information security, and operational compliance
• Revenues increased by 87% compared to the first half-year 2021; achievement of 2022 target depends on successful conclusion of ongoing contract negotiations

Berlin, September 15, 2022 – Deutsche Payment A1M SE (ISIN: DE000A2P74C5) has published its half-year report 2022.

According to this report, Deutsche Payment A1M SE was already able to achieve some notable successes in sales in the 2022 financial year. These included, for example, the procurement of infrastructure service providers in the area of gastronomy, whereby a payment solution is to be made available to a large number of gastronomy businesses in the future and which is associated with significant potential in terms of transaction volumes.

In the first half of fiscal year 2022, revenues increased by 87% compared to the first half-year 2021 to almost EUR 340k. Monthly revenues increased by more than 66% from January 2022 (EUR 47k) to June 2022 (EUR 78k). Despite this positive development, various operational hurdles were revealed that had to be - and continue to be - overcome. These included the change of the payment gateway due to high quality standards requirement and delays in the onboarding of merchants as a result of increasingly stringent requirements for KYC (Know Your Customer) processes. As expected, a net loss of EUR 495k was reported for the first half of the year. The EBITDA amounted to EUR -551k. The Adjusted EBITDA*, which was calculated by adjusting for non-recurring effects relating to consulting expenses in connection with the reverse IPO/merger and for the addition to a provision for litigation costs amounted to EUR -449k. The Operating cash flow was also still negative at EUR -604k.

These key figures reflect the stage of the operating business, which is still in an early growth phase following the realignment. The objective remains to create scalable structures and processes already this year that will enable rapid and sustainable growth in the future. In the course of the 2022 financial year, both extensive investments in the technical infrastructure and projects in the areas of information security and operational compliance will be realized.

In the future, business customers will be referred to payment service providers via a new payment gateway. As a result, the company will benefit from greater flexibility and diversity in structuring and compiling payment solutions for individual customers. In this context, the introduction of a solution for Buy Now, Pay Later (BNPL) is planned. In addition to the brokerage of business customers to payment service providers, Deutsche Payment has also been offering business customers a solution for open banking and account-to-account payments (A2A) since June 2022, that is, PayThisWay powered by Deutsche Payment. For this purpose, a cooperation was agreed with Token - one of the leading open banking providers for the European payment industry. PayThisWay powered by Deutsche Payment enables direct payments between the accounts of customers and merchants/vendors without additional intermediaries and classic payment instruments such as credit cards.

Deutsche Payment has set itself ambitious growth targets for the fiscal year 2022 with planned sales of EUR 2.2 million. The foundation for strong growth has been laid: On the one hand, various infrastructure projects related to the establishment of a new gateway are close to completion. On the other hand, several notable referrals have been successfully completed. Among these business customers are companies that chase rapid growth themselves, which would also cause the transaction volumes referred by Deutsche Payment and revenues to grow. However, the operating business in the first half of 2022 also revealed longer onboarding times and, in some cases, rejections of business customers by cooperation partners. As a result, individual placements that Deutsche Payment had taken into account in its revenue planning have failed. The extent to which Deutsche Payment can maintain its revenue and earnings targets for the fiscal year 2022 depends on whether Deutsche Payment successfully concludes various negotiations currently underway and on whether the first significant revenues from referred business customers flow at the end of the year. If there are any delays here, they will also be reflected in Deutsche Payment's target figures. However, the Management Board currently expects to achieve its targets.

Detailed information can be found in the half-year report on the company website

https://investor.deutsche-payment.com/en/financial-reports/

* The Adjusted EBITDA means earnings before interest, taxes, depreciation and amortization for the reporting period adjusted for special effects.

Contact: Dr. Erik Hermann (Investor Relations)

Phone: +49 (0)30 652121346

Email: ir@deutsche-payment.com

About Deutsche Payment

Successful companies inspire their customers not only with an attractive offer. Digital payment solutions that have a positive impact on the customer experience - online, mobile, and at the point of sale - are the key to successful customer retention.

Our mission is to provide companies with innovative and cost-optimized payment solutions that are tailored to their individual needs and meet the highest security standards. For our solutions and our consulting, we place particular emphasis on customer orientation and positive customer experiences.

More information:

www.deutsche-payment.com/en/