Marco Institucional

The Wirecard Group is exposed to external risks such as natural disasters, pandemics, fire and accidents. As a result, this may give rise to damage to office buildings or to the IT infrastructure of the Wirecard Group; the latter may also be indirectly impacted by loss, injury or damage sustained by its external service providers. Such events might also lead to a disruption of Wirecard’s business operations.

The Wirecard Group makes an effort to prevent such hazards by adopting many and various measures; for instance an assessment catalog is used for the selection of future locations, in which environmental aspects also play a decisive role in avoiding risks of natural hazards and perils. Moreover, in the event of a risk occurring, contingency and ongoing operational plans as well as directives for action by key executives have been defined in advance to ensure maintenance of essential business operations, as well as plans to restore and resume normal operations again in order to mitigate potential negative consequences. In addition, the Wirecard Group solely uses reliable external service providers who guarantee high availability and contingency plans.

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Although there has been greater awareness of natural hazards for some time now, the Wirecard Group assumes that the probability of natural hazards occurring is slight and assesses the risk of a substantial impairment of its business operations as low. In addition, appropriate insurance policies have been taken out to mitigate the possible loss or damage, if commercially acceptable.

7.11.Summary of overall risk

On the whole, the Wirecard Group recorded positive development in the overall risk structure in the period under review. Thanks to ongoing optimization of the risk management system, particularly with regard to the development, volume and complexity of the business, closely in line with acknowledged industry standards and the implementation of a large number of risk-minimizing measures, it was possible to ensure that of the quantifiable risks identified within the scope of Group-wide risk management none falls within the category of risks likely to endanger the Group’s existence as a going concern. It is worthy of emphasis that both external auditors and the internal auditing department reviews the effectiveness of risk management and its adequate implementation under supervisory law at regular intervals.

In the period under review the decisions taken within the scope of risk management successfully contributed to the prevention of losses for the Wirecard Group and, in particular, for Wirecard Bank AG. Accordingly, the Wirecard Group considers itself to be well equipped when it comes to risk management for 2013.

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8.

Corporate management, objectives and strategy

8.1.Corporate management

The Wirecard Group’s internal management system constantly controls and tracks defined key performance indicators. It is based on independent control models for each business segment.

These are consolidated at a group level, and entered into an ongoing forecast of future business growth together with the financial results. This is based on a rolling forecast. The individual key performance indicators allow us to measure whether the various corporate targets have or will be reached.

The central indicators for corporate management are predominantly quantitative in nature, such as transaction and customer numbers or revenue and minute volumes, as well as additional indicators such as the profitability of customer relationships. Here, the focus is on profitability measured using EBITDA as well as the relevant balance sheet ratios. In parallel, the responsible departments regularly record quality indicators such as customer and employee satisfaction as well as product and service quality.

A central control element is the constant comparison of the indicators recorded against the business forecast. These indicators play a particularly important role in recognizing changes in business development at an early stage, allowing corresponding counter activities to be put in place in the early stages of any difference to forecast. The Management Board and the division managers are constantly informed of the status of the key performance indicators as part of company-wide reporting. The Wirecard Group’s sustained growth is due, not least, to this internal control system, which allows management to react flexibly to changes in a dynamic market environment.

8.2.Financial and non-financial targets

One objective is to maintain our innovation and technology leadership via the early recognition of key market trends and actively structuring these. Top quality products and services form the foundations for sustained, long-term customer relationships and this thus also ranks among our key corporate targets.

In fiscal year 2013, the Wirecard Group will invest EUR 25 million in its new Mobile Payments business field, and EUR 10 to 15 million of this will be recognized as expenses. This will mostly comprise

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applications for mobile payment acceptance, mobile money transfers and the technical provision of loyalty and couponing programs that are integrated in the mobile payment process.

Wirecard AG’s central operating financial KPI is EBITDA.

Taking the investments detailed above into account, we are forecasting EBITDA in the current fiscal year of between EUR 120 and 130 million. This forecast is based on dynamic growth of the eCommerce market and constant acquisitions of new customers, cross-selling effects with existing customers as well as earnings contributions from acquisitions made in the previous year.

As the result of the constantly increasing number of customer relationships and growing transaction volumes, we expect further economies of scale from the transaction-oriented business model and substantial synergies with our banking services and from cross-selling effects.

Additional material operating financial targets for the Wirecard Group are retaining our comfortable level of equity as well as keeping liabilities at a moderate level.

We discuss additional financial objectives in the section “Anticipated financial position and results of operations” in Section 9.7.

Sustainable, income-oriented company growth is at the heart of all of our financial and non-financial targets, with this growth also having a positive impact on our enterprise value. This is mostly based on motivating highly qualified employees. Target agreements are used in this regard, which are not only measured in terms of our company’s success, but also the individual employee’s personal development and abilities.

The Wirecard Group constantly assesses its strategic decisions under these aspects.

Our aim is to use Wirecard AG’s fundamental strengths in order to also increase our earnings in the next two years. At the same time we aim to support our customers in combating the increasing complexity in the underlying conditions with comfortable solutions, so that they can increase and simultaneously secure their revenues. In doing so, we keep an eye on market developments, so that we can react flexibly and responsibly with regard to costs, regulations, and events that are not yet present.

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