ACHIKO LIMITED ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER, 2019

Zurich/Jakarta, 30 April 2020 - FinTech company Achiko Ltd. (ACHI:SWX) publishes the first Annual Report as a listed company, today. The Annual Report includes messages from our Chairman and CEO, information on our corporate governance and our full year financial report for the year ended 31 December 2019 that has been audited by an independent auditor. The Annual Report is available for download at: https://investor.achiko.com/financials/.

Last year was a transformative year for Achiko. In addition to working on its payments business and becoming listed on SIX, the Swiss stock exchange, in 2019 the company embarked on creating an end-to-end solution that could disrupt the market by evolving from a largely single-product payments business focussed on Indonesia to a global, multifaceted payments, entertainment and community platform business targeting South-East Asia and also India.

This involves extending and expanding on the company's fintech experience as a games payment gateway to create a unique "pay, play and stay" platform. This platform is targeting specifically the two billion people in South-East Asia and also India who enjoy gaming and other leisure services, as well as the growing Asian middle class that is looking for support with money management.

Financial highlights

In 2019, the company made significant progress. It secured a variety of important strategic partnerships as well as further developed its software platform. Promising new products and services based on those efforts are expected to be launched in 2020. That means the financial highlights below largely reflect the results from the Mimopay (now rebranded to AchikoPay) business only. That business saw intense price competition in 2019, which provides context for the results below.

Based on a comparison of the 2019 Revenue as set out in the Consolidated Statement of Profit or Loss and Other Comprehensive Income for the year ended 31 December 2019 compared to the 2018 Revenue as set out in the table for Group Revenue and Group Profit and Loss on a combined basis in Note 4 of the Consolidated Financial Statements for the year ended 31 December 2018, Revenue decreased by 14% to USD 6.47m from USD 7.48m. Moreover, better funded competitors were able to offer much better payment terms, which led to the loss of some large and higher profit margin customers as well. This resulted in a decrease in Gross margin on revenue from 8% to 4% and Gross profit decreased by 50% to USD 0. 29m^[1] from USD 0.58m^[2]. This and the higher expenses due to transforming the business and becoming listed on SIX also meant that Earnings before interest and tax (EBIT) (corresponding to loss from operation) decreased by 94% to USD -6.29m^[3] from USD -3.23m^[4] and Net Loss After Interest and Tax (corresponding to loss for the year) increased by 117% in 2019 to USD -6.92m^[5] from USD -3.18m^[6].

Listing the company, bringing the business parts together and making investments in product development saw Operating expenses increased by 72% to USD 6.58m^[7] from USD 3.81m^[8]. Further, in 2019, Achiko settled its obligations under a promissory note agreement (see Note 18). If EBIT (corresponding to loss from operation) is "normalised" by adding back one-off listing and restructuring costs of approximately USD 2.62m and the increase in salaries of USD 0.78m in 2019, then the EBIT (corresponding to loss from operation) before one-off costs and the increase in salaries is -USD 2.88m. This represents an improvement of 11%.

Our balance sheet strengthened considerably in 2019. Based on the Consolidated Statement of Financial Position, Total Equity improved by 405% to USD1.90m from -USD0.63m. Trade creditors and Trade Payables and other payables remained relatively constant. Cash provided by financing activities increased by 144% to USD 7.89m^[9] from USD 3.23m^[10] and Cash on hand and in banks increased by 225% to USD 0.59m from USD 0.18m based on the Consolidated Statement of Financial Position.

We have many reasons to be optimistic about the coming year. Shortly before the company's listing on SIX last November, the funding restraints we had during most of last year were resolved. The one-off costs outlined above will, by nature, not affect financial results for 2020.

Today, Achiko Limited has a host of strong partnerships and a variety of future announcements that indicate the promise of its new direction. Our partnership with TrustScan, which was announced recently, exemplifies this promise. This announcement is good news for Achiko's shareholders and the global community in the midst of the all the news of doom and gloom that has come with the COVID-19 pandemic. It also shows how Achiko can deliver an expanded set of services and have a positive role to play in the post-pandemic economy.

The TrustScan partnership means that any user with an Achiko identity can get an authenticated digital certificate on their smartphone at the same time as they take a COVID-19 test. Using TrustScan's patent-pending technology, places such as offices, factories, schools, airports, hotels or taxis can view that certificate to be sure of the test status of users coming through their doors, copying it for audit purposes if required. The Achiko platform also offers the option for places to subsidise the cost of COVID-19 testing, creating a win for everyone: lower testing costs for users that incentivise regular testing and, for places on Achiko's platform, higher confidence about the safety of everyone inside than a simple temperature check at the door could ever provide.

We hope you find the attached reports informative.

Further information

Further information can be found on www.achiko.co. If you have any questions regarding the company please contact us at ir@achiko.com.

Press Contact

Germany and Austria
Axel Mühlhaus / Dr. Sönke Knop
edicto GmbH
E: achiko@edicto.de
T: +49 69 90 55 05-51

Switzerland
Marcus Balogh
Farner Consulting Ltd.
E: achiko@farner.ch
T: +41 44 266 67 67

Disclaimer
This communication expressly or implicitly contains certain forward-looking statements concerning Achiko Ltd. and its business. Such statements involve certain known and unknown risks, uncertainties and other factors, which could cause the actual results, financial condition, performance or achievements of Achiko Ltd. to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Achiko Ltd. is providing this communication as of this date and does not undertake to update any forward-looking statements contained herein as a result of new information, future events or otherwise.

^[1] Based on Consolidated Statement of Profit or Loss and Other Comprehensive Income.
^[2] Based on the table for Group Revenue and Group Profit and Loss on a combined basis in Note 4 of the Consolidated Financial Statements.
^[3] Based on Consolidated Statement of Profit or Loss and Other Comprehensive income.
^[4] Based on the table for Group Revenue and Group Profit and Loss on a combined basis in Note 4 of the Consolidated Financial Statements.
^[5] Based on Consolidated Statement of Profit or Loss and Other Comprehensive Income.
^[6] Based on the table for Group Revenue and Group Profit and Loss on a combined basis in Note 4 of the Consolidated Financial Statements.
^[7] Based on Consolidated Statement of Profit or Loss and Other Comprehensive Income.
^[8] Based on the table for Group Revenue and Group Profit and Loss on a combined basis in Note 4 of the Consolidated Financial Statements.
^[9] Based on the Consolidated Statement of Cash Flows.
^[10] Based on the table for Group cash flow on a combined basis in Note 4 of the Consolidated Financial Statements.