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Original-Research: ASMALLWORLD AG - from NuWays AG

08.10.2025 / 09:00 CET/CEST
Dissemination of a Research, transmitted by EQS News - a service of EQS
Group.
The issuer is solely responsible for the content of this research. The
result of this research does not constitute investment advice or an
invitation to conclude certain stock exchange transactions.

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Classification of NuWays AG to ASMALLWORLD AG

Company Name: ASMALLWORLD AG
ISIN: CH0404880129

Reason for the research: Update
Recommendation: BUY
from: 08.10.2025
Target price: CHF 2.50
Target price on sight of: 12 months
Last rating change:
Analyst: Henry Wendisch

H1 Review and new CEO to foster turnaround; chg. est & PT.

Following the H1 results and the first months of the new CEO Richardson, we
take the opportunity to take a closer look at ASW. Here's our view:

H1 results look worse than they are: Reported sales declined by 25% yoy to
CHF 8.8m due to (1) reduced demand for subscriptions like "Prestige" and
"Signature" memberships amid uncertainty around the Miles & More model
change (sales of Subscriptions segment decreased by 9% yoy to CHF 7m) and
(2) a strong comparable base, especially in the Services segment. Here H1'24
contained unusually high low-margin, non-recurring event-related sales
(eNuW: CHF 2m), as well as positive one-offs from the resolution of the
legal dispute with "MAG of Life" to the tune of CHF 0.5m. Consequently, the
segment sales of Services decreased to CHF 1.7m, down 58% yoy. However, if
both positive one-offs are excluded, the underlying sales of the services
segment actually increased by 9% yoy, showing the solid development
happening at ASW. Consequently, H1 reported EBITDA declined as well and
arrived at CHF 0.4m (-54% yoy, 4.9% margin). Mind you, H1 also includes a
certain degree of CEO salary overlap and associated costs (e.g. headhunters)
to the tune of CHF 0.2m (eNuW), which we regard as one-offs. On the other
hand, this implies a solid performance in underlying EBITDA, which increased
from CHF 0.4m in H1'24 to CHF 0.6m in H1'25, despite the drop in underlying
sales.

New CEO Zain Richardson focuses on OPEX reduction, leveraging group
synergies and expanding B2B partnerships: After a handful of months in
office, Richardson has already identified OPEX reductions of "several
hundred thousands" on a FY basis, which compares well to current EBITDA
levels of c. CHF 1m (FY'25e), that are not seen to endanger future growth
prospects. Moreover, a key focus is to increase group synergies and
ultimately cross-selling opportunities as the different business units (e.g.
ASW Bespoke, ASW Collection, World's Finest Clubs) used to work rather
independently than as a team, which implies that cross-selling across the
group was technically possible, but not enforced enough. Also in light of
the business model transformation (rising member base with growing
monetization options), Richardson recently introduced a new membership
option "Advantage" (EUR 890 p.a.), filling an important price point gap
between "Premium" (EUR 79 p.a) and "Prestige" (EUR 5,590 p.a.). Moreover,
Richardson has already signed a new airline partner to diversify the partner
network and reduce the dependency on "Miles and More", but more importantly
signed a new global financial services partner (which will offer ASW
products/memberships to their customer base) and is projected to launch
already this year.

All in all, the results appear worse than what's happening in the underlying
business and the new CEO seems to tackle the right levers to foster a
sustainable turnaround in growth and profitability. Against this backdrop
and with the recent share price decline in mind, the stock currently offers
a great potential. Reiterate BUY with new PT of CHF 2.50 (old: CHF 2.80),
based on DCF.

You can download the research here:
https://eqs-cockpit.com/c/fncls.ssp?u=3c50ab6bf989170d89801db2aff536f9
For additional information visit our website:
https://www.nuways-ag.com/research-feed

Contact for questions:
NuWays AG - Equity Research
Web: www.nuways-ag.com
Email: research@nuways-ag.com
LinkedIn: https://www.linkedin.com/company/nuwaysag
Adresse: Mittelweg 16-17, 20148 Hamburg, Germany
++++++++++
Diese Meldung ist keine Anlageberatung oder Aufforderung zum Abschluss
bestimmter Börsengeschäfte.
Offenlegung möglicher Interessenskonflikte nach § 85 WpHG beim oben
analysierten Unternehmen befinden sich in der vollständigen Analyse.
++++++++++

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2209680 08.10.2025 CET/CEST

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