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Latest update on Insolvency process of the Wirecard AG.

Press release

Rechtsanwalt Dr. Michael Jaffé Preliminary insolvency administrator of Wirecard AG, Aschheim

Numerous interested parties worldwide for acquisition of business units

International investor process launched

Creditors’ Committee unanimously confirms Dr. jur. Michael Jaffé as the preliminary insolvency administrator of Wirecard AG

Aschheim/Munich. The Munich Local Court has appointed a preliminary creditors’ committee in the preliminary insolvency proceedings relating to the assets of Wirecard AG by order of June 29, 2020. At its constitutive meeting today, the preliminary creditors’ committee unani-mously confirmed Dr. jur. Michael Jaffé from the law firm JAFFÉ Rechtsanwälte as the prelim-inary insolvency administrator. The preliminary insolvency administrator, who was appointed by the Munich Local Court also on 29 June 2020, presented an initial report at the meeting, which lasted several hours. According to this report, numerous interested parties worldwide have already expressed their interest in acquiring business units. The preliminary creditors’ committee then gave the go-ahead for an international investor process involving investment banks.

The primary objective of the preliminary insolvency proceedings is to stabilize the business operations of the Group companies. This applies to the processing of credit card payments as well as to the other business areas, which are to be regarded independently. To this end, in-tensive discussions are being held with customers, trading partners and the credit card or-ganizations. However, it still cannot be ruled out that insolvency applications will also have to be filed for subsidiaries of the Wirecard Group with the aim of placing these companies un-der the protection of insolvency proceedings and, if possible, continuing them.

Wirecard Bank AG is still solvent; payouts to merchants and customers of Wirecard Bank are being carried out without restrictions.

Early in the morning of June 30, 2020, the British Financial Conduct Authority (FCA) lifted the restrictions initially imposed on the subsidiary Wirecard Card Solutions Ltd. after Wirecard AG had filed for insolvency. This means that several hundred thousand accounts are now once again open for the processing of payments. Customers can use their related (credit) cards as usual.

The respective business units and/or Wirecard AG are in close contact with the supervisors of the other licensed units abroad, likewise with the aim of continuing business while simulta-neously safeguarding customers.

Parallel to this, the search for investors for the core activities of Wirecard AG, but also for the independent business units of the subsidiaries, is now being intensified. To this end, a struc-tured transaction process coordinated by the parent company is to be implemented, involv-ing investment banks specializing in various areas. “A large number of investors from all over the world have already contacted us who are interested in acquiring the core business or the independent and successfully operative business divisions,” said the preliminary insolvency administrator Dr. jur. Michael Jaffé.

In addition, the clarification of the causes of the crisis as well as the analysis and verification of cash flows and data are also being progressed with high priority.

Press contact for the preliminary insolvency administrator

Sebastian Brunner

Tel.: +49175/5604673

E-Mail: sebastian.brunner@brunner-communications.de

In the press release you will find the latest update on the insolvency proceedings of Wirecard AG.

The Management Board of Wirecard AG publishes the attached personal statement of the departing CEO Dr. Markus Braun, who has just forwarded it to the Management Board.

Personal declaration

Dear customers and partners,
Dear shareholders,
Dear employees,
Ladies and gentlemen,

I would hereby like to inform you of my personal decision to resign as CEO of Wirecard AG with immediate effect and in agreement with the Supervisory Board. I informed the Chairman of the Supervisory Board of my decision this morning.
The confidence of the capital market in the company I have been managing for 18 years has been deeply shaken. With my decision, I respect the fact that responsibility for all business transactions lies with the CEO.
As most of you are aware, I, as a shareholder, am also personally and massively affected by the events of the past few days, weeks and months.
I would like to thank all those with whom I have been able to build this company side by side and whose trust I and others have enjoyed. Wirecard AG has an excellent business model, outstanding technology and sufficient resources for a great future. I do not want to burden this future.

Dr. Markus Braun

Statement of the Management Board

Current company statement

Wirecard AG has received various media inquiries relating to an investigation by Citizen Labs, Canada. Wirecard makes the following statement on this matter: Wirecard AG has at no time been in direct or indirect contact with a hacker group from India.
The study, conducted by Citizen Labs, is not disclosing by whom it is commissioned. Among others, thanks are given to Mr. Matthew Earl, one of the authors of the Zatarra Report, for his "incredible efforts" in supporting the study (page 15). The Zatarra Report had caused a stir in 2016 with numerous false statements.

Company statement on the investigation procedure

As communicated by the company on June 5, 2020 regulatory investigations are currently being conducted in connection with ad hoc announcements in advance of the publication of the KPMG special investigation report.
The investigations are directed at the members of the Management Board of Wirecard AG. The Management Board and the company respect the investigations and cooperate with the authorities. All data requested by the authorities during the search were provided at short notice. Since the investigations are ongoing, the Management Board and the Company will not make any public statements on the content or status of the investigation.
The Company is confident that the facts of the case will be clarified and the allegations will prove to be unfounded.

The ongoing investigation has no impact on the operating business of Wirecard AG.
The publication of the consolidated financial statements 2019 will take place on June 18, 2020. The company expects that there will be no major deviations from the reported preliminary figures."
For the current fiscal year 2020, the Management Board confirms its outlook and expects earnings before interest, taxes, depreciation and amortization (EBITDA) in a range of EUR 1.0 billion to EUR 1.12 billion.

Wirecard AG comments on the company’s current situation

Read statement

Corporate statement regarding the filing of complaint of Short Seller TCI

TCI is not a shareholder of Wirecard AG, but is active as a short seller. Wirecard therefore regards the filing as a purely tactical manoeuvre of a short seller. In terms of content, we consider the complaint to be completely unfounded.

Wirecard AG: Statement on Al Alam

Wirecard AG is convinced that the change in corporate structure made public by Al Alam on May 11, 2020, is an unobtrusive process.

During discussions at an on-site meeting in March 2020 at the company's offices in Dubai with the managing partner of Al Alam Solution Provider FZ LLC and in the presence of members of KPMG's special investigation team, it was explained that the company was rebranding and relocating its headquarters in Dubai due to negative press reports. The rebranded company is licensed and subject to regulation by the United Arab Emirates.

The business relationship between Wirecard and Al Alam has existed since 2013 and Wirecard assumes that the ownership structure will remain unchanged in future.

Wirecard AG statement regarding business partner Al Alam

Wirecard AG has been informed by its business partner Al Alam that the company is transferring its business to other group companies within its umbrella organization and that the company Al Alam Solution Provider FZ LLC will be closed. The company is thus reacting to the damage to its reputation caused by its integrity being publicly called into question.

Wirecard AG will not suffer any impairment of its processing capability or transaction volumes as a result of this transferal to another company.

Wirecard AG had already announced its intention to increasingly apply for its own licenses in future and to reduce the volume of business with third-party partners.

TILP lawsuit against Wirecard AG

Wirecard AG firmly rejects the accusations made by the plaintiff's law firm TILP and the claims for damages asserted. Wirecard has at all times communicated to the best of its knowledge and belief and in accordance with the statutory information obligations. Wirecard is cooperating with BaFin in the analysis of the facts. The company will defend itself against the lawsuit that has been filed and is calmly awaiting the outcome of the proceedings.

BaFin Investigation

Wirecard AG is in regular contact with the BaFin and cooperates in all information requests. The company is aware that the publication of the KPMG report and subsequent price movements are generally analyzed by BaFin. Wirecard is convinced that it has at all times communicated to the best of its knowledge and belief and in accordance with the statutory information requirements.

Key aspects of the KPMG report on the independent special review of Wirecard AG

Download key aspects

KPMG delivers report on special investigation

No incriminating evidence was found for the publicly raised accusations of balance sheet manipulation.

Download report

Declaration on corporate responsibility

Wirecard AG bears responsibility. As a financial infrastructure company for payment processing, the company ensures the reliability of cashless payment processes worldwide, thus contributing an important component to the development of the digitized society. Internationally, the importance of digital payment and online commerce is growing steadily among all social classes and is particularly noticeable in these times of restricted personal freedom of movement due to the corona virus. This would not be possible without the digital financial infrastructure behind it.

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