TheraVet SA — Earnings Release 2022

Apr 25, 2023

TheraVet reports Full-Year 2022 Financial Results and provides the preparatory documents for the General Assembly of June 1st, 2023

• Cash position of €3.19 million at December 31, 2022, giving financial visibility up to beginning of 4th 2024 quarter
• 2022 sales performance within targets in the European market
• New distribution agreements concluded in some high potential markets

Gosselies (Wallonia, Belgium), April 25, 2023 – 7:30am CET – TheraVet (ISIN: BE0974387194 - ticker: ALVET), a pioneering company in the management of osteoarticular diseases in pets, today announces its Full-Year results for the year to December 31, 2022.

The Company also informs its shareholders and the entire financial community of the availability of the preparatory documents for the ordinary general meeting of the Company to be held on June 1, 2023 at 5 p.m. (CEST) at 1070 Brussels, Allée de la Recherche 4.

All documents relating to this general meeting are available on request from the company, or can be consulted on the company's website under Shareholders / General Meetings.

Enrico Bastianelli, Chief Executive Officer of TheraVet, stated: "Since the IPO of TheraVet in June 2021, we have been committed to deploying therapeutic innovations to treat osteoarticular pathologies in companion animals. Started in June 2022, the execution of our marketing strategy, based on a direct and indirect sales model, has so far met the objectives we set for ourselves in Europe while experiencing certain delays in the United States. We intend, through new agreements, to accelerate the international deployment of our range in high-potential countries."

Full-Year 2022 financial results

€ (Belgian GAAP)	December - 22	December - 21
Revenue	94,037	12,348
Other operating income	1,904,880	2,181,390
Stock of finished goods and work in progress	144,524	54,843
Produced fixed assets	1,507,741	1,930,219
Operating grants	53,508	54,199
Other operating income	199,107	142,129
Total operating income	1,998,917	2,193,738
Purchases and expenses	(3,680,826)	(3,364,356)
COGS	(211,396)	(63,972)
R&D expenses	(593,224)	(1,152,580)
Corporate and listed company related expenses	(190,573)	(174,932)
Marketing & Sales expenses	(240,268)	(199,622)
G&A expenses	(1,317,502)	(1,009,862)
Staff expenses	(1,124,566)	(762,085)
Other operating charges	(3,297)	(1,303)
EBITDA	(1,681,910)	(1,170,618)
Depreciation and amortization	(1,094,792)	(558,294)
EBIT	(2,776,702)	(1,728,912)
Financial income	427,044	261,088
Profit/loss for the period before taxes	(2,349,658)	(1,467,824)
Income taxes on the result	34,030	126,974
Net Profit/loss	(2,315,628)	(1,340,850)
Net Cash	3,185,671	5,631,418

Starting in June 2022 with the launch of its new BIOCERA-VET line, TheraVet has continued its commercial deployment in the United Kingdom, Ireland, Spain and the United State. The Company generated €0.09 million of revenue, mainly in Europe.

A total of 534 units¹ of BIOCERA-VET products were sold in Europe, a performance within the sales objectives set by the Company in this market.

In Europe, BIOCERA-VET® Osteosarcoma accounted for 15% of total sales, highlighting the potential and the interest generated by innovative orthopedic solutions. Building on this

¹ Including Elvetis first binding order as per the agreement signed in December 2022; invoiced in 2023

momentum, TheraVet intends to consolidate its position in Europe by partnering with new distributors in Germany and Italy while strengthening its links with its distribution partners in Belgium, France, the United Kingdom and Spain.

In the United States, sales were by direct sales only due to delays in setting up the distribution activities. As of mid-October owing to the ACVS Surgery Summit (American College of Veterinary Surgeons) in Portland, Oregon, direct sales have started to gain traction over the last weeks of the year.

Finally, TheraVet announced the signing of a distribution agreement on February 21, 2023 with Vetpharma, a leading company in the marketing of veterinary products and services, to cover 24 new countries, including new high-potential territories such as the Scandinavian countries, Brazil, South Africa, Australia and Japan. This new agreement makes the BIOCERA-VET® range available on five continents while addressing an estimated population of more than 150 million dogs2.

The Company also generated €1.51 million of "produced fixed asset" as a result of the activation of research and development expenses related to the BIOCERA-VET® and VISCO-VET® programs.

The development of preclinical and clinical programs as well as the marketing plan of BIOCERA-VET® products are in accordance with the Company development plan as reflected by the "Purchases and expenses" globally aligned with last year expenses :

• COGS increased by €0.15 million as compared to 2021 as the results of the marketing of the new range of BIOCERA-VET® products and sale increase;
• R&D expenses decreased by €0.56 million as compared to 2021, reaching €0.59 million. The decrease is mainly the result of (i) a decrease in the expenses related to VISCO-VET® development and GMP manufacturing process validation (€0.39 million in December 2022 as compared to €0.84 million in December 2021) and of (ii) a slightly decrease in BIOCERA-VET® development expenses as compared to 2021 expenses (€0.21 million in December 2022 vs €0.29 million in December 2021);
• Corporate and listed company related expenses increased by €0.02 million as compared to 2021 and related to the agreement with Rotschild&Co (market maker contract) and Degroof Petercam (sponsor research agreement);
• Marketing & Sales expenses increased by €0.04 million as compared to 2021 related to the commercial launch of BIOCERA-VET® and the attendance to international and national relevant conferences and congresses;
• G&A expenses increased by €0.31 milllion as compared to 2021 mainly as the results of:

² 1 to 2% of the dog population is subjected to orthopedic surgeries each year, from which 10 to 20% requires a bone graft. 20 to 50% of bone grafts are bone subsititutes such as BIOCERA-VET depending on veterinary surgeon preferences, availability of autograft or other bone substitutes. However, these estimates – based on EU & US epidemiological data – can also be impacted by the number fo veterinary surgeons, access to operating rooms and surgical equipment, by the owner awareness of treatments, price and affordability of procedures, owner willingness to pay, insurance coverage, etc

• o the increase of the operational consultants in order to structure and streghten the Company (increase of €0.16 million as compared to 2021);
• o the recruitment of new independant board members to strengthen the Board of the Company.
• Staff expenses increased to €0.36 million as compared to 2021 as result of the strenghtening of the Company organization.

Finally, the amortization of development expenses related to the BIOCERA-VET® and VISCO-VET® programs results in an operating loss of €2.8 million and a net loss of €2.3 million.

The Company's cash and cash equivalents at December 31, 2022 amounted at €3.19 million, allowing it to fund operation at least until the beginning of the fourth quarter of 2024.

Operational hightlights

On March 28, 2023, the Company released an update on its development and product portfolio strategy. The full information is available through the following link.

Annual Report 2022

The 2022 annual report ended December 31, 2022 will be published on April 25, 2023 and will be available on the Company's website, www.theravet-finances.com.

The statutory auditor has issued an unmodified report dated April 25, 2023 on the Company's annual accounts as of and for the year 2022 ended December 31, 2022, and has confirmed that the accounting data reported in the accompanying press release is consistent, in all material respects, with the accounts from which it has been derived.

Financial calendar 2023

Ordinary General Meeting : June 1st, 2023 Half-year activity update : July 11, 2023 Half year financial results: September 6, 2023

About TheraVet SA

TheraVet is a veterinary biotechnology company specialising in osteoarticular treatments for companion animals. The Company develops targeted, safe and effective treatments to improve the quality of life of pets suffering from joint and bone diseases. For pet owners, the health of their pets is a major concern and TheraVet's mission is to address the need for innovative and curative treatments. TheraVet works closely with international opinion leaders in order to provide a more effective response to ever-growing needs in the field of veterinary medicine. TheraVet is listed on Euronext Growth® Paris and Brussels, has its head office in Belgium (Gosselies) with a US subsidiary in South Carolina.

For more information, visit the TheraVet website or follow us on LinkedIn / Facebook / Twitter

Forward-looking statements

This release may contain forward-looking statements. Forward-looking statements may include statements regarding the Company's plans, objectives, goals, strategies, future events, the safety and clinical activity of TheraVet's pipelines and financial condition, results of operation and business outlook. By their nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, and there are risks that predictions, forecasts, projections and other forward-looking statements will not be achieved. These risks, uncertainties and other factors include, among others, those listed and fully described in the "Risk Factors" section in the Annual Report. TheraVet expressly disclaims any obligation to update any such forward-looking statements in this document to reflect any change in its expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based, unless required by law or regulation.

Contacts

TheraVet Chief Operating Officer

Sabrina Ena investors@thera.vet Tel: +32 (0) 71 96 00 43

Chief Corporate Officer Julie Winand investors@thera.vet

NewCap Investor Relations and Financial Communications Théo Martin / Nicolas Fossiez theravet@newcap.eu Tel: +33 (0)1 44 71 94 94

Press Relations Arthur Rouillé theravet@newcap.eu Tel: +33 (0)1 44 71 00 15 NewCap Belgique Press Relations

Laure-Eve Monfort lemonfort@newcap.fr Tél. : + 32 (0) 489 57 76 52

Statements of operations and comprehensive loss

	31.12.2022	31.12.2021
Operating	1.998.916	2.193.738
Revenue	94.037	12.348
Stocks of finished goods and work and contracts in progress:
increase (decrease)	144.524	54.843
Produced fixed assets	1.507.741	1.930.219
Other operating income	252.615	196.327
Non-recurring operating charges
Operating charges	4.775.618	3.922.649
Goods for resale, raw materials and consumables	211.396	63.972
Purchases	146.696	206.459
Stock: increase/decrease	64.700	-142.487
Services and other goods	2.341.568	2.536.995
Remuneration, social security costs and pensions (+)/(-)	1.124.566	762.085
Amortisations of and other amounts written down on formation
expenses, intangible and tangible fixed assets	908.651	558.294
Increase, decrease in amounts written off stocks contracts in
progress and trade debtors : appropriations (write-backs) … (+)/(-)	186.141
Provisions for risks and charges - appropriations (uses and write
backs) … (+)/(-)
Other operating charges	3.297	1.303
Operation charges carried to assets as restructuring costs Non-recurring operating charges
Operating profit (loss) (+)/(-)	(2.776.702)	(1.728.912)
	31.12.2022	31.12.2021
Financial income	473.836	310.197
Recurring financial income	473.836	310.197
Income from financial fixed assets	10.067	9.481
Other financial income	463.768	300.716
Non-recurring financial income
Financial charges	46.792	49.109
Recurring financial charges	46.792	49.109
Interest and other debt charges	30.009	26.452
Other financial charges	16.782	22.657
Non-recurring financial charges
Profit (loss) for the period before taxes (+)/(-)	(2.349.658)	(1.467.824)
Transfer fom postponed taxes
Transfer to postponed taxes
Income taxes (+)/(-)	(34.030)	(126.974)
Taxes	13.591	2.596
Adjustment of income taxes and write-back of provisions	47.621	129.570
Profit (loss) for the period (+)/(-)	(2.315.628)	(1.340.850)
Transfer from untaxed reserves
Transfer to untaxed reserves
Profit (loss) for the period available for appropriation (+)/(-)	(2.315.628)	(1.340.850)

Profit (loss) for the period (+)/(-)	(2.315.628)
Profit (loss) per share for the period (+)/(-) – Direct	(0.718)
Profit (loss) per share for the period (+)/(-) – Diluted	(0.716)

Statement of Financial Position

ASSETS	31.12.2022	31.12.2021
FORMATION EXPENSES	635.415	818.975
FIXED ASSETS	5.306.204	4.476.839
Intangible fixed assets	5.084.070	4.263.509
Tangible fixed assets	28.578	29.841
Land and buildings
Plant, machinery and equipment	23.064	20.401
Furniture and vehicles	5.514	9.440
Leasing and other rights
Other tangible fixed assets
Tangible assets under construction and advance payments made
Financial fixed assets	193.556	183.489
Affiliated companies	181.631	171.564
Participating interests	8.749	8.749
Amounts receivable	172.882	162.815
Other financial fixed assets	11.925	11.925
Amounts receivable and cash guarantees	11.925	11.925
CURRENT ASSETS	3.560.167	6.155.650
Amounts receivable after more than one year
Trade debtors
Other amounts receivable
Stocks and contracts in progress	91.013	197.330
Stocks	91.013	197.330
Raw materials and consumables	0	25.607
Work in progress	13.226	45.576
Finished goods	0	9.268
Goods purchased for resale	77.787	116.880
Contract in progress
Amounts receivable within one year	235.098	279.243
Trade debtors	34.019	6.916
Other amounts receivable	201.079	272.327
Current investments
Cash at bank and in hand	3.185.671	5.631.418
Deferred charges and accrued income	48.385	47.659
TOTAL ASSETS	9.501.785	11.451.463

LIABILITIES	31.12.2022	31.12.2021
EQUITY	7.521.135	9.647.627
Contributions	10.172.459	10.172.459
Available	322.394	322.394
Issued capital	322.394	322.394
Beyond capital	9.850.065	9.850.065
Share premium account	9.850.065	9.850.065
Revaluation surplues
Reserves
Legal reserve
Reserve not available
In respect of own shares held
Others
Untaxed reserves
Available reserves
Accumulated profits (+)/ losses (-)	(4.272.294)	(1.956.667)
Investment grants	1.620.971	1.431.835
PROVISIONS AND DEFERRED TAXES
Provisions for liabilities and charges
Deferred taxes
AMOUNT PAYABLE	1.980.651	1.803.836
Amounts payable after more than one year	897.058	909.568
Financial debts	897.058	909.568
Subordinated loans	37.500	62.500
Other loans	859.558	847.068
Trade debts
Advances received on contracts in progress
Other amounts payable
Amounts payable within one year	1.075.548	884.468
Current potion of amounts payable after more than one year	151.033	92.055
Financial debts
Credit institutions
Other loans
Trade debts	136.156	540.165
Suppliers	136.156	540.165
Bills of exchange payable
Advances received on contracts in progress
Taxes, remuneration and social security	239.943	173.004
Taxes	28.527	16.674
Remuneration and social security	211.415	156.330
Other amounts payable	548.415	79.245
Accruals and deferred income	8.045	9.800
TOTAL LIABALITIES	9.501.785	11.451.463

Cash Flow Statement

Cash flow Statement	31.12.2022	31.12.2021
Free cashflow	(1.404.282)	(869.908)
Net cash used in operations	373.092	(339.325)
Net cash (used in)/from investing activities	(1.554.457)	(3.094.450)
Net cash (used in)/from financing activities	139.900	7.767.640
Net cash (decrease)/increase	(2.445.747)	3.463.956
cash & cash equivalents at opening	5.631.418	2.167.461
cash & cash equivalents at closing	3.185.671	5.631.418