Linus Digital Finance AG adjusts strategy to return to profitability in short-term; macroeconomic environment causes withdrawal of forecast for 2022; achievement of growth targets for H1/2022

Berlin, 2 August 2022 - In view of the macroeconomic environment, in particular the uncertainties in the financing, capital and real estate markets, Linus Digital Finance AG (LINUS) has today decided to adjust its corporate strategy with the aim of achieving a short-term return to operating profitability. Therefore, LINUS will reduce growth investments in online marketing intended to attract new affluent private clients, for the time being. In the near future, the focus will be on working with existing clients and expanding the investor base among high-net-worth individuals (HNWI), family offices and institutional investors. In addition, LINUS' digital investment offering is to be made increasingly accessible to new private clients via B2B2C partnerships. This strategic corporate decision is accompanied by a short-term adjustment of staff capacities. The socially responsible reduction in the workforce affects 22 employees (corresponding to around 20% of the total workforce), particularly in the marketing and sales departments.

In the first half year of 2022, LINUS confirmed its planned growth path and achieved revenues of EUR 5.4 million. This corresponds to a growth of 50.4% compared to the same period of the previous year (EUR 3.6 million in H1/2021). The investment volume was EUR 218 million compared to EUR 154.4 million in H1/2021 (+ 41.2%). The number of qualified users was expanded by 1,120. Due to the uncertainties in the macroeconomic environment, according to the current assessment of the Management Board, a dependable estimate of the future course of business is currently no longer possible or quantifiable. Therefore, the forecast for the current 2022 financial year, which was originally published on 29 April 2022 with the annual report for the 2021 financial year, has been withdrawn. Nevertheless, the Management Board expressly upholds the growth trajectory for the remaining 2022 financial year and expects growth in the low to high double-digit percentage range for revenues, investment volume, co-investment volume and the number of qualified users.

Contact:

Frederic Olbert

Chief Financial Officer

Alexanderstraße 7

10178 Berlin

+49 (0) 30 629 3968 10

ir@linus-finance.com