Apontis Pharma AG

Interim / Quarterly Report • Aug 11, 2022

HALF-YEAR REPORT 2022

THE SINGLE PILL COMPANY

Half-year Report 2022 _ Content

CONTENT

		page
1	TO OUR SHAREHOLDERS	01
	Letter from the management board	01
	APONTIS PHARMA on the capital market	04
2	GROUP INTERIM MANAGEMENT REPORT	09
	Macroeconomic development	09
	Industry economic development	09
	Economic situation	10
	Opportunity and risk report	13
	Forecast report	13
3	CONSOLIDATED INTERIM FINANCIAL STATEMENTS	14
	Consolidated balance sheet	14
	Consolidated income statement	16
	Consolidated cash flow statement	17
4	CONDENSED NOTES	17
	IMPRINT	23

Half-Year Report 2022 _ To our shareholders

DEAR SHAREHOLDERS,

APONTIS PHARMA AG was able to continue its good development in 2021 by focusing further on Single Pills. In the first quarter, the corona pandemic continued to make access to doctors more difficult for patients. In the second quarter, the situation eased somewhat as the measures were largely lifted.

APONTIS PHARMA achieved sales growth of 17.1% to EUR 28.1 million in the first half of 2022, with the Single Pill segment growing by 26.0% to EUR 17.7 million. In particular, the Single Pills Atorimib (+ 47.4%), Tonotec (+28.3%) and Tonotec HCT (+43.0%) contributed to the growth in sales.

In the segment collaborations with co-marketing and co-promotion agreements, we successfully grew by EUR 0.2 million due to the co-promotion agreement with AstraZeneca for the product Trixeo.

We launched two new Single Pills in the first half of 2022. These were AmloAtor and Tonotec Lipid. RosuASS was then shipped for the first time at the beginning of July. We expect the new products to contribute significantly to our company's planned growth starting next year. With the funds from the IPO and the operating cash flow generated in the first half of the year, we are well financed for the planned expansion of the Single Pill portfolio.

We are working hard every day to establish our vision "Single Pill as the gold standard" and get "For a better life. Together every day" a little closer. Cardiovascular diseases remain the most common cause of death in Germany. In this country alone, there are around 22 million diagnosed adult hypertensives, i.e. patients suffering from high blood pressure. If target blood pressure values are not reached, they have an increased risk of secondary diseases such as suffering a stroke, heart attack or premature death. In addition, at least 8 million people are believed to be undiagnosed. In total, more than 30 million people in Germany suffer from high blood pressure and some of them already from secondary diseases. With Single Pills, we want to help these patients improve their compliance with treatment and thus their therapy results. The superior therapeutic success of Single Pills is documented by the study "Effect of Single pill combinations on treatment adherence and persistence as well as on clinical and pharmacoeconomic outcomes in the real-world treatment of hypertension, coronary heart disease, hyperlipidemia and in secondary prevention of cardiovascular events," START for short.

Karlheinz Gast Thomas Milz Chief Executive Officer (CEO) Chief Product Officer (CPO)

The results show that the administration of cardiovascular Single Pill therapy was associated with significantly lower event rates in German healthcare practice. For example, Single Pill therapy reduced strokes by up to 46% and myocardial infarctions by up to 38% compared to conventional treatment. As a result, hospital admissions also fell by up to 55% and mortality by up to 49%. Behind these figures are many individual fates of those affected and their relatives. The results were published in two full-publication peer-reviewed medical journals in the first half of the year.

The reduced number of cardiovascular events in the START study also led to reduced costs for the German healthcare system. Savings of up to 34% per patient per year were achieved in total treatment costs in the Single Pill patient group. The savings per insured person in this study were over EUR 1,000 per year. In addition to the positive health aspects for patients, this also has an economic dimension. These results are a great motivation for us to promote the use of Single Pill therapy in Germany, as we can make a sustainable contribution to patients and the German healthcare system and at the same time further develop APONTIS PHARMA.

As a result, it is our job as "The Single Pill Company" to promote the benefits of the Single Pill to the German medical profession and the responsible persons in the healthcare system. In order to give even more patients access to Single Pills, we are developing new Single Pills with combinations of active ingredients that were previously only available as loose combinations. In the first half of the year, we launched two new Single Pills and in July a third Single Pill. Next year, we plan to expand our portfolio to 13 Single Pills with three additional planned launches. In addition, four single pills are in development and we are in concrete negotiations with several development partners to develop further single pills.

Half-Year Report 2022 _ To our shareholders

For 2022, we confirm the guidance published in the Annual Report for 2022, which is based on the assumption that there will be no significant corona-related access restrictions to doctors in the fall and winter and that the gas shortage will not jeopardize the operation of medical practices.

In the cooperation business, we have agreed to an early extension of the cooperation with Astra-Zeneca for 2023. The extension is based, among other factors, on the great satisfaction of our partner with the services of our salesforce.

At this point, we would like to expressly thank our employees once again. Despite the challenges still posed by the corona pandemic, they have contributed to a great team success through their passionate commitment.

We would like to thank you, our shareholders, for the trust you have placed in us since our stock market debut. Please continue to accompany us as a publicly traded healthcare company in creating sustainable value: both with pioneering Single Pill products and in the form of healthy company growth.

Sincerely yours,

Karlheinz Gast Thomas Milz Chief Executive Officer (CEO) Chief Product Officer (CPO)

APONTIS PHARMA AG ON THE CAPITAL MARKET

RISING INTEREST RATES AND RECESSION FEARS DRAG CAPITAL MARKETS DOWN

From 1 January to 30 June 2022, international stock markets recorded the heaviest first half losses in their history. Almost all asset classes and segments apart from commodities and energy stocks, showed negative performance. In the first quarter, the stock markets recovered surprisingly fast from the price falls at the start of the Ukraine war but were then unable to withstand the high inflation data and the prospect of significant increases in interest rates by the central banks. With losses widening, the stock markets suffered a painful second quarter from April to June. The U.S. Federal Reserve and the European Central Bank (ECB) signalled to focus on successfully fighting inflation even at the cost of economic growth. Consequently, the prospect of a now noticeable tightening of liquidity caused a marked decline in valuations measured by price/earnings ratios. Increasing fears among market participants of a recession as a result of weak economic data put additional pressure on the stock markets. The DAX recorded its weakest start to the year since 2008, with a drop of 22.0% compared with the closing price of 2021. The Scale All Share Index, which also includes the shares of APONTIS PHARMA, lost 23.7% over the same period.

APONTIS PHARMA SHARE INFORMATION

Ticker symbol	APPH
WKN
(German Securities Identification Number)	A3CMGM
ISIN
(International Securities Identification Number)	DE000A3CMGM5
Stock Exchanges	Xetra, Frankfurt, Berlin, Düsseldorf,
	Gettex, Munich, Quotrix,
	Stuttgart, Tradegate
Market segment	EU-registered SME
	growth market Scale
	(Over-the-counter)
Number of shares	8,500,000
Share class	Ordinary no-par value bearer
	shares (no-par value shares)
Designated Sponsor	Hauck Aufhäuser
	Lampe Privatbank AG

SHARE: PRICE PERFORMANCE (EURO) AND TRADING VOLUME (%)

APONTIS PHARMA Scale All Share

Although the Single Pill business continued to grow profitably and the newsflow was favorable as a result of the new developments announced, the APONTIS PHARMA share was unable to escape the general market trend. The APONTIS PHARMA share started trading on 3 January 2022 at a price of EUR 20.00, thus reaching its high for the reporting period on the same day. After a decline of 44.5% at the end of the first quarter, a partial recovery achieved in the meantime proved to be unsustainable. The share prices stabilized after reaching a low of EUR 10.15 on 22 June 2022, with the result that the APONTIS PHARMA AG share ended trading in the reporting period at a closing price of EUR 11.15. Overall, the APONTIS PHARMA AG share price decreased by 44.3% in the first half of 2022 compared to its closing price on 30 December 2022. With inflation rising and recession and geopolitical risks increasing, small caps in particular came under additional pressure in the associated sector rotation from growth to value stocks.

Opening price	3 January 2022	EUR 20.00
Low	22 June 2022	EUR 10.15
High	3 January 2022	EUR 20.00
Closing price	30 June 2022	EUR 11.15
Performance		-44.3%
Market capitalization		EUR 94.8 million

SHARE PRICE PERFORMANCE IN H1 2022

The average daily trading volume in APONTIS PHARMA shares amounted to 13,587 shares on all German trading venues in the first half of 2022. In the prior-year period, the average daily trading volume from the initial listing on 11 May to 30 June 2021 was 33,642 shares.

Hauck Aufhäuser Lampe Privatbank AG acted as designated sponsor and continuously supported the tradability of the APONTIS PHARMA share by providing binding bid and ask prices.

SAHRE BUYBACK PROGRAMS

Share buyback program 2022/I

In March 2022, the Management Board of APONTIS PHARMA AG, with the approval of the Supervisory Board, decided to launch a share buyback program using the authorization granted by the Annual General Meeting on 19 April 2021. Within the framework of the share buyback program 2022/I, up to a total of 70,000 treasury shares (corresponding to up to approx. 0.8% of the company's share capital) could be repurchased at a total purchase price of a maximum of EUR 1,000,000 in a period from 15 March 2022 to 15 June 2022. A total of 70,000 shares had been purchased by 6 April.

Share buyback program 2022/II

In June 2022, the Management Board of APONTIS PHARMA AG, with the approval of the Supervisory Board, decided to launch a share buyback program using the authorization granted by the Annual General Meeting on 19 April 2021. Within the framework of the share buyback program 2022/II, up to a total of 100,000 treasury shares (corresponding to up to approx. 1.2% of the company's share capital) could be repurchased at a total purchase price of a maximum of EUR 1,250,000 in a period from 23 June 2022 to 31 December 2022. A total of 6,339 shares had been purchased by 30 June.

Overall, the company carried out two share buyback programs for 76,339 shares in the first half of 2022.

SHAREHOLDER STRUCTURE

As of 30 June 2022, APONTIS PHARMA AG is aware of the shares in the voting share capital that are required to be disclosed to the company pursuant to Section 20 (5) of the German Stock Corporation Act (AktG), have been disclosed voluntarily, or are subject to lock-up periods following the IPO. According to the definition of Deutsche Börse AG, free float includes all shares that are not held by major shareholders (share of share capital exceeding 5%).

With a balanced ratio of free float and institutional investors, APONTIS PHARMA AG has a liquid tradability of shares and a stable structure of anchor shareholders to pursue the company's strategy in a targeted manner. With a stake of around 37%, the current shareholder The Paragon Fund II GmbH & Co. KG (Paragon) holds the majority of the shares outstanding as of 30 June 2022. The management of APONTIS PHARMA AG holds 7% of the voting shares, while 56% of the shares are in free float.

ANALYST RECOMMENDATIONS

With Hauck Aufhäuser Lampe Privatbank AG, Warburg Research GmbH and Montega AG, the APONTIS PHARMA AG share has been analysed and valuated by renowned investment banks and research firms in the first half of 2022.

In their studies, the analysts recommend buying APONTIS PHARMA shares with price targets of up to EUR 31.00 and emphasize APONTIS PHARMA's significantly improved fundamentals since IPO as a result of the significant progress in positioning Single Pills as a superior "replacement" for loose combinations and a "gold standard" for longterm treatment. These include the strong growth in the number of Single Pill patients and the unprecedentedly rich development pipeline, which is considered the most important value driver for the even higher market penetration of Single Pills in the medium term. The analysts' recommendations to buy the APONTIS PHARMA share correspond to a price potential of more than 175% compared to the closing price on 30 June 2022.

Update	Institut	Analyst	Recom- mendation	Target price
28 June 2022	Warburg Research	Dr. Christian	BUY (BUY)	31.00
	GmbH	Ehmann		(32.00)
30 May 2022	Hauck Aufhäuser	Alexander	BUY (BUY)	30.00
	Lampe Privatbank AG	Galitsa		(30.00)
11 May 2022	Montega AG	Henrik	BUY (BUY)	26.00
		Markmann		(26.00)

INVESTOR RELATIONS ACTIVITIES

The APONTIS PHARMA AG share is listed on the EU-registered SME growth market Scale (Open Market) of the Frankfurt Stock Exchange. The company informs its shareholders and the capital market participants without delay of important events in its business activities or of significance to the development of its share price by means of ad hoc announcements or corporate news.

The Management Board of APONTIS PHARMA maintains an ongoing close dialogue with investors and analysts as well as the financial and business press and held numerous personal meetings to present the company's business model, operational development, and growth prospects in the first half of 2022.

FINANCIAL CALENDAR 2022

Preliminary (unaudited)
annual figures 2021 / Earnings Call
Annual Report 2021
MKK – Münchner Kapitalmarkt Konferenz, Munich
Interim Statement 3M/Q1 2022 / Earnings Call
Annual General Meeting, Dusseldorf
PLATOW Euro Finance Small Cap Conference,
Frankfurt/Main
Warburg Highlights Conference, Hamburg
Prior Capital Market Conference, Frankfurt/Main
Half-year Report 2022 / Earnings Call
Hamburger Investorentag (HIT); Hamburg
Equity Forum Fall Conference, Frankfurt/Main
CF&B European MidCap Event, Paris
Interim Statement 9M/Q3 2022
German Equity Forum, Frankfurt/Main

The Investor Relations section of the APONTIS PHARMA AG website at ir.apontis-pharma.de provides comprehensive insights into business developments, upcoming events, financial reports and presentations.

Half-Year Report 2022 _ Group interim management report

I. MACROECONOMIC DEVELOPMENT

Economic development in Germany was negatively impacted by several factors in the first half of the year: the Russian war against Ukraine, rising inflation, countermeasures by central banks, and supply chain problems manifesting themselves due to China's corona policy. In contrast, the negative impact of the corona restrictions in Germany weakened. Overall, price-adjusted economic growth in the first quarter of 2022 was 4%1 and is based on the prior-year quarter, which was heavily impacted by the corona pandemic.

For 2022 as a whole, the German government's Council of Economic Experts expects a growth rate of only 1.8% and 3.6% for 2023.2 The main risk for economic development is the question of the spatial expansion of the russian war and securing the supply of gas in the coming winter period. The effects of a failed gas supply for Germany as an industrial location and the associated price increases are the main risk for economic development. Fortunately, unemployment was at a low level of 5.2% in May 20223 and no deterioration is expected for this year. Furthermore, interest rates are expected to rise, which could lead to increasing interest income due to the high cash balances of the APONTIS PHARMA Group.

II. INDUSTRY ECONOMIC DEVELOPMENT

At EUR 13.6 billion, sales of pharmaceuticals in the German pharmaceutical market for pharmacies and hospitals in the first quarter of 2022 were 6.2% higher than in the previous year. Unit sales increased by 3.6%. The pharmacy market was the growth driver, with sales up 7.1% in the first quarter. This development may be related to a normalization of prescribing and consumption patterns. SHI spending on pharmaceuticals, net of all rebates and mandatory discounts, amounted to EUR 12.2 billion in the first quarter, representing year-on-year growth of 5.7%, with sales up 5.4%. Like the previous quarters, the first quarter of 2022 was still impacted by access restrictions in doctors' offices as well as vaccination appointments. Despite the lifting of pandemic restrictions in the second quarter, doctor-patient contact was reduced. For the second half of the year, no reliable forecasts can be made for access to physicians by either patients or our salesforce; this therefore represents a risk to the development of the company's business.

¹⁾ https://www.destatis.de/DE/Presse/Pressemitteilungen/2022/05/PD22_215_811.html

²⁾ https://www.sachverstaendigenratwirtschaft.de/fileadmin/dateiablage/Konjunkturprognosen/

^2022/KJ2022_Gesamtausgabe.pdf

³⁾ Monatliche Arbeitslosenquote 2021-2022 | Statista

⁴⁾ https://www.iqvia.com/de-de/locations/germany/publikationen/marktbericht

III. ECONOMIC SITUATION

EARNINGS POSITION OF THE GROUP

The high sales growth as well as the share of Single Pills were in line with management's expectations. Single Pill sales increased by 26.0% to EUR 17,681 thousand in the six-month period of 2022 (H1 2021: EUR 14,037 thousand). The Single Pill share of revenue increased to 62.9% (H1 2021: 58.5%) for APONTIS PHARMA. In total, APONTIS PHARMA Group sales rose by 17.1% to EUR 28,108 thousand (H1 2021: EUR 24,012 thousand). The main drivers here were in particular the Single Pills Atorimib (cholesterol-lowering agent) at +EUR 3,035 thousand and Tonotec (blood pressurelowering agent) +EUR 745 thousand. In the first half of 2022, the new single pills AmloAtor and Tonotec Lipid were launched; the two products already contributed EUR 145 thousand to growth.

In the cooperation business, sales from the co-promotion agreement with AstraZeneca for the promotion of the product Trixeo increased by EUR 805 thousand to EUR 1,390 thousand. The high increase is related to the fact that the co-promotion agreement started in April 2021 and thus six months of sales could be realized this year compared to only three months last year. In this respect, sales of the Novartis product Ulunar, which is sold under the distribution model, are declining as expected, as there will no longer be active marketing of this product after the co-promotion agreement was converted to a distribution model in June 2021. The products Jalra and Icandra, which are sold under a co-marketing agreement with Novartis, declined by 0.8% due to limited deliveries from Novartis. This agreement is scheduled to expire in September 2022.

In the first quarter, three products from the Gynecology business were sold to a competitor. The two remaining products were discontinued as planned, as the investments in the products necessary were not justified. Total proceeds amounted to EUR 700 thousand, of which EUR 150 thousand was shown under sales due to the sale of the remaining inventory and EUR 550 thousand under other operating income.

Besides the proceeds from the sale of the three gynecological products, other operating income includes EUR 672 thousand from the reversal of provisions. In the previous year, other operating income mainly included recharges of equity procurement costs of EUR 1,893 thousand to the shareholder in connection with the IPO.

Half-Year Report 2022 _ Group interim management report

At 27.9%, cost of materials rose more sharply than sales to EUR 10,884 thousand (H1 2021: EUR 8,508 thousand), with the result that the materials usage ratio deteriorated to 38.7% (H1 2021: 35.4%). This was due on the one hand to significantly higher procurement costs for the product Ulunar. This increase resulted from the new distribution agreement with Novartis, which was agreed as the successor to the co-marketing agreement that expired on June 30, 2021. In addition, for the first time, contractual post-milestone payments for development products were now recognized in cost of materials and no longer as subsequent acquisition costs of non-current assets.

The decrease in personnel expenses is mainly due to one-time management-related equity procurement costs (IPO bonus) of EUR 2,500 thousand granted in the previous year. Adjusted for this IPO bonus, personnel expenses would have changed from EUR 8,443 thousand to EUR 8,581 thousand.

Other operating expenses decreased from EUR 8,200 thousand to EUR 7,147 thousand, mainly as a result of the equity procurement costs of EUR 2,910 thousand included in the previous year. Adjusted for these expenses, other operating expenses rose from EUR 5,290 thousand to EUR 7,147 thousand. The increase is mainly due to planned higher expenses for temporary field staff (+EUR 761 thousand). The company intensified its sales efforts in order to anchor the benefits of the Single Pill in the treatment of chronically ill people in long-term therapy in the German medical community. Furthermore, additional expenses resulted from the follow-up costs of a listed company.

Earnings before interest, taxes, depreciation and amortization (EBITDA) increased by EUR 3,933 thousand to EUR 3,248 thousand due to higher sales revenues, increased marketing efforts and the high one-off expenses for the costs of the IPO in the first half of 2021. Adjusted for the non-recurring expenses of the IPO less the reimbursement from the principal owner totaling EUR 3,518 thousand, EBITDA increased by EUR 415 thousand to EUR 3,248 thousand.

in EUR thousand	H1 2022	H1 2021	∆ TEUR	∆ %
Sales	28,108	24,012	4,096	17.1
Gross profit	17,224	15,504	1,720	11.1
Gross profit margin	61.3%	64.6%		-3.3
EBITDA	3,248	-685	3,933	> 100
EBITDA margin	11.6%	-2.9%		14.5
EBIT	2,389	-1,446	3,834	> 100
EBIT margin	8.5%	-6.0%		14.5

The following table shows the financial performance indicators for the first half of 2022 compared to the same period of the previous year:

ASSET POSITION

APONTIS PHARMA Group's total assets changed from EUR 54,132 thousand to EUR 57,738 thousand as of June 30, 2022. The increase in fixed assets from EUR 15,494 thousand to EUR 16,341 thousand is mainly due to further milestone payments to contract developers for the development of our new drugs.

The decrease in inventories from EUR 4,598 thousand to EUR 4,080 thousand is related to increased deliveries of products by our contract manufacturers at the end of the previous year. Receivables increased from EUR 3,581 thousand to EUR 4,258 thousand.

The APONTIS PHARMA Group's equity increased as of June 30, 2022, due to the net income for the first half of the year. Due to the share buyback programs, 76,339 shares were repurchased for a total amount of EUR 872 thousand. The repurchase amount was openly deducted from equity. The equity ratio was 73.1% as of June 30, 2022.

Provisions increased by 3.6% to EUR 9,330 thousand (December 31, 2021: EUR 8,993 thousand). This mainly relates to the tax provision.

FINANCIAL POSITION

Cash flow from operating activities in the first half of 2022 was mainly influenced by the higher profit for the period. There was also a positive contribution from the change in working capital.

Cash flow from investing activities amounted to a cash outflow of EUR 1,697 thousand (H1 2021: cash outflow of EUR 328 thousand). As in the same period of the previous year, capital expenditures were mainly attributable to milestone payments for the development of Single Pills for the treatment of cardiovascular diseases.

Half-Year Report 2022 _ Group interim management report

Cash flow from financing activities in the previous year, which included a cash inflow of EUR 20,121 thousand, mainly reflects the issuance of new shares through a capital increase in the amount of EUR 38,000 thousand in the course of the IPO. At the same time, shareholder liabilities of EUR 14,361 thousand were repaid. A total of 76,339 shares with a total volume of EUR 872 thousand were acquired as part of two share buyback programs in the first half of 2022.

Cash and cash equivalents increased to EUR 32,223 thousand as of June 30, 2022 (December 31, 2021: EUR 29,840 thousand).

IV. OPPORTUNITY AND RISK REPORT

The main opportunities and risks for the APONTIS PHARMA Group have not changed since the publication of the 2021 Annual Report. There are no known risks that could jeopardize the continued existence of the company.

V. FORECAST REPORT

The APONTIS PHARMA Group has experienced a very strong first half of 2022. Driven by high sales growth, EBITDA increased compared to the EBITDA of the comparable prior-year period adjusted for IPO costs, despite investments in marketing efforts.

This growth was in line with the expectations underlying our forecast in the 2021 Management Report. The second half of the year is characterized by the continued success of the Single Pill business model and the positive effects from the launch of two new Single Pills in the first half of 2022.

The known expiry of the co-marketing agreement with Novartis for the diabetes drugs Jalra and Icandra and the decline in sales of the drug Caramlo after a competitor won a few health insurance tenders had a counteracting effect. Both effects were taken into account in the forecast presented in the 2021 Management Report.

The Management Board confirms the forecast for the full year 2022.

CONSOLIDATED STATEMENT OF FINANCIAL POSITION ASSETS

EUR		June 30, 2022	Dec 31, 2021
	A. Fixed assets
	I. Intangible assets
	1. Concessions, industrial property rights and similar rights and assets acquired against payment, as well as licenses to such rights and assets	5,755,111.00	3,894,829.00
	2. Advance payments and intangible assets under development	9,791,500.00	10,796,640.84
		15,546,611.00	14,691,469.84
	II. Property, plant and equipment
	Other equipment, factory and office equipment	15,859.00	18,677.00
	III. Financial assets
	1. Securities held as fixed assets	716,112.76	690,295.32
	2. Other loans	62,500.00	93,561.70
		778,612.76	783,857.02
		16,341,082.76	15,494,003.86
	B. Current assets
	I. Inventories
	Goods	4,079,830.56	4,597,586.80
	II. Receivables and other assets
	1. Trade receivables	3,239,165.76	2,923,408.25
	2. Other assets	1,019,128.70	658,066.72
		4,258,294.46	3,581,474.97
	III. Cash on hand and bank balances	32,223,375.79	29,840,229.96
		40,561,500.81	38,019,291.73
	C. Prepaid expenses	513,517.16	443,028.38
	D. Deferred tax assets	322,000.00	176,000.00
		57,738,100.73	54,132,323.97

CONSOLIDATED STATEMENT OF FINANCIAL POSITION LIABILITIES

EUR			June 30, 2022	Dec 31, 2021
		A. Equity
		I. Subscribed capital	8,423,661.00	8,500,000.00
		II. Capital reserve	35,481,913.85	36,278,000.00
		III. Consolidated net loss
		1. Consolidated loss carried forward	-4,064,996.08	-3,319,759.16
		2. Consolidated profit for the period	2,351,200.54	-745,236.92
			-1,713,795.54	-4,064,996.08
			42,191,779.31	40,713,003.92
		B. Difference from capital consolidation	666,218.00	700,359.00
		C. Provisions
		1. Provisions for pensions and similar obligations	2,501,557.50	2,422,598.00
		2. Tax provisions	551,123.00	384,127.00
		3. Other provisions	6,277,130.42	6,186,037.53
			9,329,810.92	8,992,762.53
		D. Liabilities
		1. Trade payables	4,714,117.82	3,002,344.13
		2. Liabilities to shareholders	0.00	0.00
		3. Other liabilities	836,174.68	723,854.39
		‑ thereof from taxes: EUR 862,245.03 (previous year: EUR 676,952.59)
		‑ of which as part of social security: EUR 0.00 (previous year: EUR 49.27)
			5,550,292.50	3,726,198.52
			57,738,100.73	54,132,323.97

CONSOLIDATED STATEMENT OF INCOME

EUR		H1 2022	H1 2021
1.	Sales revenue	28,108,203.89	24,012,288.82
	2. Other operating income	1,769,421.96	2,973,093.58
3.	Cost of materials
	Cost of goods purchased	-10,884,283.60	-8,508,350.99
	4. Personnel expenses
	a) Wages and salaries	-7,300,864.62	-9,673,750.00
	b) Social security contributions and expenses for pensions and other employee benefits	-1,279,921.16	-1,269,669.00
		-8,580,785.78	-10,943,419.60
5.	Amortization of intangible assets and depreciation of property, plant and equipment	-859,345.84	-760,940.00
	6. Other operating expenses	-7,147,488.81	-8,200,205.08
7.	Income from loans of financial assets	0.00	661.63
	8. Other interest and similar income	9,215.22	150.19
	9. Interest and similar expenses	-25,955.50	-381,660.60
	10. Income taxes
	a) Income taxes	-166,996.00	-93,647.00
	b) Deferred taxes	146,000.00	-277,000.00
		-20,996.00	-370,647.00
	11. Earnings after taxes	2,367,985.54	-2,179,032.32
	12. Other taxes	-16,785.00	-17,989.14
	13. Consolidated net income for the period	2,351,200.54	-2,197,021.46

CONSOLIDATED STATEMENT OF CASH FLOWS

EUR		H1 2022	H1 2021
1.	Result for the period	2,351,200.54	-2,197,021.46
	2. +/- Depreciation/write-ups of property, plant and equipment	859,345.84	760,940.00
3.	+/- Increase/decrease in provisions	144,096.89	-470,216.44
	4. +/- Other non-cash expenses/income	-180,141.00	243,799.00
5.	-/+ Increase/decrease in inventories, accounts receivable from trade receivables and other assets that are not attributable to investing or financing activities	-229,552.03	-2,944,573.91
	6. +/- Increase/decrease in trade payables and other liabilities that are not attributable to investing or financing activities	1,824,093.98	3,274,849.10
7.	+/- Interest expense/interest income	16,740.28	380,849.05
	8. +/- Expenses/income of extraordinary magnitude or great importance	0.00	3,517,598.64
	9. +/- Income tax expense/income	166,996.00	93,647.00
	10. -/+ Income tax payments	0.00	454.70
	11. Cash flow from continuing operations	4,952,780.50	2,660,325.68
12. -	Cash outflows for investments in intangible fixed assets	-1,664,140.00	-300,000.00
13 -	Cash outflows for investments in property, plant and equipment	-47,529.00	-4,273.00
14. +	Proceeds from disposals of financial assets	129,329.49	0.00
15. -	Cash outflows for investments in financial assets	-124,085.23	-24,001.69
16. +	Interest received	9,215.22	150.19
	17. Cash flow from investing activities	-1,697,209.52	328,124.50
18. +	Proceeds from equity contributions of shareholders of the parent company	0.00	38,000,000.00
19. -	Cash outflows from equity reductions to shareholders of the parent company	-872,425.15	0.00
20. -	Cash outflows from the redemption of bonds and (financial) loans	0.00	-12,250,000.00
21. +	Proceeds received in connection with income of extraordinary magnitude or great importance	0.00	1,892,593.46
22. -	Disbursements in connection with expenses of extraordinary magnitude or great importance	0.00	-5,410,192.10
23. -	Interest paid	0.00	-2,111,115.17
	24. Cash flow from financing activities	-872,425.15	20,121,286.19
	25. Cash-effective changes in cash and cash equivalents	2,383,145.83	22,453,487.37
26. +	Cash and cash equivalents at the beginning of the period	29,840,229.96	8,058,801.14
	27. Cash and cash equivalents at the end of the period	32,223,375.79	30,512,288.51
	Composition of cash and cash equivalents	32,223,375.79	30,512,288.51

EXPLANATORY NOTES

I. ACCOUNTING, RECOGNITION AND VALUATION METHODS

APONTIS PHARMA AG has its registered office in Monheim, Germany, and is entered in the Commercial Register of the Local Court of Düsseldorf under the number HRB 93162.

The Condensed Interim Financial Statements as of June 30, 2022, have been prepared in accordance with the classification requirements of Section 266 of the German Commercial Code (HGB) and the supplementary provisions of the German Stock Corporation Act (AktG).

The Consolidated Statement of Income has been prepared using the nature of expense method in accordance with Section 275 (2) of the German Commercial Code (HGB).

In accordance with GAS 16 on interim financial reporting, the comparative figures for the previous period in the balance sheet relate to the figures as of December 31, 2021, and the income statement and cash flow statement relate to the first half of fiscal year 2022 (January 1, 2022 – June 30, 2022).

II. SCOPE OF CONSOLIDATION

The Interim Financial Statements include APONTIS PHARMA AG, HRB 93162 at the Local Court of Düsseldorf, as well as three affiliated companies within the scope of full consolidation.

As of June 30, 2022, the scope of consolidation is as follows:

• 1. APONTIS PHARMA Deutschland GmbH & Co. KG, Monheim am Rhein, Germany, HRA 23282 at the Local Court of Düsseldorf, Germany
• 1. PP Apontis Pharma GmbH, Monheim am Rhein, Germany, HRB 85556 at the Local Court of Düsseldorf, Germany
• 1. PP Primary Care GmbH, Monheim am Rhein, Germany, HRB 73436 at the Local Court of Düsseldorf, Germany

III. VALUATION AND ACCOUNTING DISCLOSURES

The assets and liabilities of the fully consolidated companies are assessed in accordance with the valuation principles of German commercial law, taking generally accepted accounting principles into account.

Half-Year Report 2022 _ Condensed notes

Acquired intangible assets are carried at cost and, if subject to wear and tear, amortized on a straight-line basis over their estimated useful lives. In determining the cost of acquisition, incidental acquisition costs and reductions in acquisition costs are taken into account. In addition, write-downs are made to the lower fair value where necessary.

Advance payments are stated at nominal value and intangible assets under development are stated at acquisition cost.

Property, plant and equipment are stated at cost and, where subject to wear and tear, depreciated over their useful lives. In addition, impairment losses are recognized to the lower fair value where necessary.

Movable assets are depreciated on a straight-line basis.

Low-value assets with a net individual value of EUR 250.00 are recognized as expenses in the year of acquisition; their immediate disposal has been assumed. As in the previous year, assets with a net individual value of more than EUR 250.00 and up to EUR 800.00 have been recognized as low-value assets with straight-line depreciation. For fixed assets with a net individual value of more than EUR 250.00 to EUR 1,000.00 that already existed before 2019, the annual compound item to be recognized for tax purposes was transferred to the commercial balance sheet for reasons of simplification. Of the annual compound items, the total amount of which is of minor significance, 20% p.a. is depreciated in each of the four subsequent years in accordance with the tax regulations. Additions to property, plant and equipment are otherwise depreciated on a pro rata temporis basis.

The loan to a shareholder in the previous year was carried at nominal value.

Securities held as fixed assets are stated at cost.

Inventories are stated at the lower of cost and fair value.

Receivables and other assets are stated at nominal value. All risk-bearing items are accounted for by means of flat-rate discounts.

Cash and cash equivalents are stated at nominal value.

Payments made prior to the balance sheet date are recognized as prepaid expenses if they represent expenses for a certain period after this date.

The subscribed capital of the parent company, APONTIS PHARMA AG, is fully paid up and carried at nominal value. The company conducted two share buyback programs for 76,339 shares in March and April 2022 and in May and June. The repurchase was reflected in that the subscribed capital with a nominal value of EUR 1.00 per repurchased share was reduced by a total of EUR 76,339. The purchase price exceeding EUR 1.00 in the amount of EUR 796 thousand was reduced in the capital reserve.

Provisions are stated at the amount required to settle the obligation according to prudent business judgment.

Liabilities were measured at the respective settlement amounts.

IV. CAPITAL DISCLOSURES

The share capital less treasury shares held of EUR 76 thousand amounted to EUR 8,424 thousand as of the reporting date. The capital reserve amounted to EUR 35,482 thousand.

The accumulated loss developed as follows:

Accumulated loss as of Dec 31, 2021	-EUR 4,065 thousand
+/- Net profit/loss for the year	+EUR 2,351 thousand
Accumulated loss as of June 30, 2022	-EUR 1,714 thousand

V. PROVISIONS

Provisions mainly include provisions for discounts of EUR 2,201 thousand, for outstanding invoices of EUR 1,415 thousand and for employee bonuses of EUR 958 thousand.

VI. LIABILITIES

Liabilities consist mainly of trade payables and other liabilities.

VII. PROFIT AND LOSS STATEMENT

Sales according to areas of activity and application:

		H1 22		H1 21
	EUR	%	EUR	%
	thousand		thousand
Single Pills	17,681	62.9	14,037	58.5
Vascular	-7	-0.0	10	0.0
Gynecology	264	0.9	329	1.4
Other	1,095	3.9	794	3.3
Own brands (excluding
Single Pills)	1,352	4.8	1,133	4.7
COPD (respiratory
diseases)	5,314	18.9	5,050	21.0
Diabetes	3,761	13.4	3,792	15.8
Co-marketing/
Co-promotion	9,075	32.3	8,842	36.8
	28,108	100.0	24,012	100.0

As in the previous year, all sales were generated in Germany.

VIII. OTHER OPERATING INCOME

Other operating income amounted to EUR 1,769 thousand (H1 2021: EUR 2,973 thousand) and mainly includes income from the sale of three products of the Gynecology business unit in the amount of EUR 550 thousand, non-cash compensation for provision of vehicles in the amount of EUR 352 thousand (H1 2021: EUR 279 thousand) and income from the reversal of provisions in the amount of EUR 672 thousand (H1 2021: EUR 552 thousand). The prior-year quarter was characterized by income from shareholders in the amount of EUR 1,892 thousand, which was paid for the reimbursement of IPO costs.

IX. PERSONEL EXPENSES

Personnel expenses amounted to EUR 8,581 thousand (H1 2021: EUR 10,943 thousand). The previous year's figure included IPO costs from IPO premiums in the amount of EUR 2,500 thousand.

X. AMORTIZATION OF INTANGIBLE FIXED ASSETS AND DEPRECIATION OF TANGIBLE FIXED ASSETS

Depreciation and amortization amounted to EUR 859 thousand (H1 2021: EUR 761 thousand).

XI. OTHER OPERATING EXPENSES

Other operating expenses amounted to EUR 7,147 thousand (H1 2021: EUR 8,200 thousand) and consisted mainly of expenses for temporary staff of EUR 1,374 thousand (H1 2021: EUR 613 thousand), marketing expenses of EUR 981 thousand (H1 2021: EUR 1,000 thousand), vehicle costs of EUR 841 thousand (H1 2021: EUR 841 thousand), expenses for warehousing and shipping of EUR 434 thousand (H1 2021: EUR 404 thousand) and IT costs of EUR 299 thousand (H1 2021: EUR 322 thousand). In the previous year, other operating expenses were characterized by the costs for raising equity in the context of the IPO in the amount of EUR 2,911 thousand.

XII. TAXES ON INCOME AND EARNINGS

EUR 54 thousand (H1 2021: EUR 57 thousand) of the income taxes relate to corporate income tax and the solidarity surcharge and EUR 113 thousand (H1 2021: EUR 37 thousand) to trade tax. Deferred taxes amounted to EUR -146 thousand (H1 2021: EUR 277 thousand).

Management Board:	Karlheinz Gast, Chairman of the Management Board
	Thomas Milz, Deputy Chairman
Supervisory Board:	Dr. Matthias Wiedenfels (Chairman)
	Olaf Elbracht (Deputy Chairman)
	Dr. Edin Hadzic
	Christian Bettinger
	Dr. Anna Lisa Picciolo-Lehrke (since May 12, 2022)
	Dr. Christopher Friedel (until May 12, 2022)

XIII. INFORMATION ON THE CORPORATE BODIES

Half-Year Report 2022 _ Imprint

IMPRINT

Publisher APONTIS PHARMA AG Alfred-Nobel-Str. 10 40789 Monheim Germany

Phone: +49 2173 8955 4949 Fax: +49 2173 8955 4941 Email: info@apontis-pharma.de Web: apontis-pharma.de

Investor Relations

APONTIS PHARMA AG Sven Pauly

Phone: +49 2173 8955 4900 Fax: +49 2173 8955 1521 Email: ir@apontis-pharma.de Web: ir.apontis-pharma.de

Concept, Editing and Design

CROSS ALLIANCE communication GmbH Bahnhofstr. 98 82166 Graefelfing/Munich Germany

Phone: +49 89 125 09 03 30 Email: info@crossalliance.de Web: crossalliance.de

Image Reference APONTIS PHARMA image pool, depositphotos.com

This Half-Year Report has been translated into English. It is available for download in both languages at ir.apontis-pharma.de. If there are variances, the German version has priority over the English translation.

APONTIS PHARMA AG Alfred-Nobel-Str. 10 40789 Monheim Germany Phone +49 2173 8955 4949 Fax +49 2173 8955 4941 Email: info@apontis-pharma.de