A Authorisation of Condensed Consolidated Financial Statements

These Half-Year Condensed Consolidated Financial Statements, together with notes, of Cosmo N.V. at 30 June 2026 were authorised for issuance by the Board of Directors on 21 July 2026.

B Basis of preparation

These half-year Condensed Consolidated Financial Statements have been prepared in accordance with IAS 34 Interim Financial Reporting. These interim statements do not include all the information and disclosures required in the annual financial statements, but they contain selected explanatory notes to highlight key events and transactions relevant to understanding changes in the Group’s financial position and performance since the last annual financial statements. Accordingly, these interim statements should be read in conjunction with the Group’s most recent annual Consolidated Financial Statements as at 31 December 2025 (‘last annual financial statements’).

These Half-Year Condensed Consolidated Financial Statements are prepared under the historical cost method, modified as required for the measurement of certain financial instruments, as well as on the basis that it will continue to operate as a going concern.

These Condensed Consolidated Financial Statements are expressed in thousands of Euros, unless stated otherwise, rounding the amounts to the nearest thousand.

The accounting policies applied in the preparation of the Half-Year Condensed Consolidated Financial Statements are consistent with those followed in the preparation of the Group’s annual Consolidated Financial Statements for the year ended 31 December 2025, except for the adoption of new standards effective as of 1 January 2026. These new standards, amendments or interpretations do not have a material impact on the Group in the current or future reporting periods and on foreseeable future transactions.

New standards and amendments – applicable 1 January 2026:

• Amendments to the Classification and Measurement of Financial Instruments - Amendments to IFRS 9 and IFRS 7
• Annual Improvements to IFRS Accounting Standards - Amendments to IFRS 1, IFRS7, IFRS 9, IFRS 10 and IAS 7

Recurring Revenue

H1 2026 recurring revenue increased by 18% to €49.6 million (H1 2024: 41.9 million).

Gastro & CDMO and other recurring revenue increased by 20% to €30.2 million (H1 2025: €25.2 million), mainly due to higher volumes for Lialda/Mezavant/Mesavancol and contract manufacturing.

Winlevi (Derma) recurring revenue increased by 38% to €10.2 million (H1 2025: €7.4 million), driven by increase in supply sales and royalties.

GI Genius (Medtech AI) recurring revenue increased by 5% to €9.2 million in H1 2026 (H1 2025: €8.7 million), primarily driven by higher supply volumes.

Project-based Revenue

Project-based revenue in H1 2026 totaled €0.7 million (H1 2025: €9.8 million), comprising €0.6 million from Winlevi (Derma) milestone and €0.1 million for Rifamycin milestone. The H1 2025 project-based revenue was attributed to the €8.3 million sale of Digital Trust software.

Net expenses in the table below represent cost of sales and net operating expenses by nature of the expenses:

A Raw materials and consumables used and changes in inventories

Expenditure on raw materials, consumables used and changes in inventory slightly increased to €2.4 million largely due to increased production volume across majority of product lines.

B Outsourced preclinical and clinical trial costs

This expenditure amounting to €5.4 million (H1 2025: €8.2 million) primarily relates to clinical trial and clinical study costs. The main drivers of this are the following projects: 

• Clascoterone solution for Androgenetic Alopecia (‘AGA’) in males – phase III trials amounting to €2.0 million (H1 2025: €6.5 million),
• Bile Acid Diarrhoea – phase II proof-of-concept study amounting to €1.1 million (H1 2025: €1.0 million),
• Distal Ulcerative Colitis – phase II study amounting to €1.3 million (H1 2025: €0.8 million), and
• Solid Tumours – phase I study amounting to €0.3 million (H1 2025: €0.7 million).

C Personnel expenses

Personnel expenses increased by €2.1 million, primarily due to additional headcount, incentives and severance costs.

The average number of staff for the period ended 30 June 2026 was as follows:

The number of staff headcount as at 30 June 2026 was 365.

D Other operating expenses

Financial income remained stable at €3.2 million with the reduction of interest and gains on FVOCI investments offsetting the foreign exchange gains.

Financial expenses decreased to €0.4 million (H1 2024: €2.5 million), primarily driven by foreign exchange impact from the strengthening of USD against Euro.

A. Income tax recognised in profit or loss

B. Income tax recognised in other comprehensive income

A. Basic earnings per share

Basic earnings per share are calculated by dividing the net profit/(loss) for the period attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding during the period. Basic earnings per share are as follows:

B. Diluted earnings per share

Diluted earnings per share are calculated by dividing the net profit/(loss) for the year attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding during the period, after adjustments for the effects of all dilutive potential ordinary shares. In relation to the stock option plans (see Note 15 for details), the potential number of ordinary shares is represented by the shares that would be issued as a consequence of the conversion of all options into ordinary shares.

Potential ordinary shares from the exercise of stock options only have a dilutive effect if the new ordinary shares from the exercise of stock options leads to a lower result of earnings per share.

The carrying amount of goodwill arises from the acquisitions of Cassiopea S.p.A. (‘Cassiopea’) in 2021 and Linkverse S.r.l. (‘Linkverse’) in 2018.

The carrying amount of goodwill is allocated to the following cash-generating units (‘CGUs’):

The Group tests whether goodwill has suffered impairment annually at year-end. As there were no indicators of impairment for any of the CGUs, management has not updated any of the impairment calculations.

Patents and rights relate to the cost of filing and extending patents owned by the Group. They are amortised over their useful lives based on their respective expiry dates.

Winlevi® and Clascoterone solution for Androgenetic Alopecia were acquired through the 2021 acquisition of Cassiopea.

Clascoterone solution for Androgenetic Alopecia in males is classified as In-Process Research and Development (IPR&D). Following Clascoterone solution's positive safety and efficacy results post Phase III trials, Cosmo is advancing preparations for a New Drug Application (NDA) in the United States and a Marketing Authorization Application (MAA) in Europe. A U.S. FDA filing is currently planned for early 2027.

Winlevi® (U.S. and non-U.S. rights) and Eleview® are classified as Marketed Products and are amortised over their estimated useful lives.

A Financial assets – non-current

Investments in bonds measured at FVOCI amounting to €10.5 million (2025: €5.6 million) relate to long-term, high-grade corporate bonds. These bonds have credit ratings ranging from BBB- to A+ and are quoted using closing prices in the regulated market.

The equity instruments at FVOCI represent investments that the Group intends to hold long-term for strategic purposes. The equity instruments are measured at fair value using market rate as of reporting date except for the AIMM and RSouth shares which are measured at fair value using value-in-use approach (DCF).

B Financial assets – current

Investments in funds consist of investments in ‘Money market’, ‘Corporate short duration’ and ‘Floating rate credit’ funds. Gains and losses arising from the adjustment to the fair value were recognised in profit and loss.

The Group sold €15.8 million worth of investment in bonds and funds in H1 2026.

A Share capital

No new shares were issued upon the exercise of share options; the corresponding shares were sourced from treasury shares.

B Treasury shares

As at 30 June 2026, the Group held 353,028 treasury shares at an average purchase price of CHF 74.16 (€72.22) per share.

The number of issued shares, after adjusting for treasury shares, was as follows:

C Share-based payment reserve

The stock option plan reserve relates to the stock option plan and PSU/RSU long-term incentive plan of Cosmo N.V. Refer to Note 15 for further details.

D Fair value reserve

The fair value reserve comprises the cumulative net change in the fair value of equity and bond investments designated at FVOCI.

E Dividend

In H1 2026, a cash distribution out of Cosmo’s freely distributable reserves in the amount of €2.10 per ordinary share on the 17,194,358 shares outstanding as at 24 April 2026 (ex-distribution date), was approved at the Annual General Meeting on 10 April 2026. The Company paid €27.1 million, net of withholding tax, in May 2026. The withholding tax of €9.0 million was paid in June 2026.

F Non-controlling interest

Non-controlling interest refers to minority interest in Cassiopea, representing 2.15% of the equity interest of Cassiopea as of 30 June 2026.

A Non-current

B Current

Non-current and current bank loans pertain to borrowings from UBI Banca.

A Non-current

Contingent consideration represents amounts payable to a former Linkverse S.r.l. NCI shareholder, conditional upon the achievement of future regulatory and commercial milestones. This liability is mandatorily measured at fair value through profit or loss (FVTPL).

B Current

Other liabilities mainly include payables to employees related to accruals of deferred pay elements, calculated on the basis of the collective labour agreement currently in force and accrued employee bonuses.

During the period Cosmo N.V. had the following equity-settled arrangements:

• Stock Option Plan

• Restricted Stock Unit (‘RSU’) Plan

• Performance Stock Unit (‘PSU’) Plan

The total share-based payment expenses recognised in the income statement were:

Stock Option Plan

The following is a breakdown of the outstanding share options of Cosmo N.V. as at 30 June 2026.

1 At grant date.

In H1 2026, Cosmo granted 15,000 share options under Option Series 34. The table below outlines the inputs used to measure the fair value at the grant date for these options under the Cosmo N.V. stock option plan:

The fair value of the options granted has been determined on the basis of the binomial tree generated by the Fincad programme, a technique similar to the Black-Scholes valuation model. The expected volatility of the underlying instrument measures the expected fluctuations in price/value for a given period. The indicator that measures volatility in the model used to evaluate the options is the annualised standard deviation of the compound returns of a share.

Long-Term Equity Incentive Plan (LTIP)

Effective 13 April 2026, Cosmo introduced the 2026–2029 Long-Term Equity Incentive Plan (LTIP), under which selected employees, executive directors, non-executive directors and consultants may receive equity-settled awards in the form of Restricted Stock Units (RSUs) and Performance Stock Units (PSUs).

RSUs vest over a three-year service period, while PSUs vest at the end of a three-year performance period subject to continued service and the achievement of predetermined performance conditions. For the 2026 grant, performance is measured based on Adjusted EBITDA (50%) and R&D Innovation Score (50%), with vesting ranging from 0% to 200% of the target award. The LTIP is accounted for as an equity-settled share-based payment arrangement in accordance with IFRS 2.

The fair value of RSUs and PSUs were determined at the grant date and measured using the Fair Market Value of the Company's ordinary shares as defined in the LTIP, being the average closing price of the shares over the ten trading days immediately preceding the Annual General Meeting.

The performance conditions of the PSUs relate to internal financial and operational measures and are therefore treated as non-market performance conditions under IFRS 2. Consequently, they do not affect grant-date fair value but are reflected in the estimate of the number of awards expected to vest.

The fair value of RSUs and PSUs granted during H1 2026 was CHF 84.20 per unit. RSU expense recognised during H1 2026 was €0.4 million. PSU expense recognised during H1 2026 was €0.1 million. Non-market performance conditions are reassessed each reporting period.

At 30 June 2026, Cosmo Holding S.a.r.l., a Luxembourg company controlled by Mauro S. Ajani, the Chairman of the Company, held 6,086,702 shares in the Company.

Any member of the Board who has an interest in a related party transaction which is under discussion by the Board must abstain from this discussion and abstain from any vote on the approval of the related party transaction under discussion.

A Qualitative information

The fair value is the price that would be received when selling an asset or paid when transferring a liability in an orderly transaction between market participants (i.e. not as part of the compulsory liquidation or a below cost sale) as at the measurement date. Fair value is a market measurement criterion, not specifically referring to a single entity. Underlying the definition of fair value is the assumption that the Company is carrying out normal operations, without any intention of liquidating its assets, significantly reducing the level of operations or carrying out transactions at unfavourable conditions.

An entity has to measure the fair value of an asset or liability by adopting the assumptions that would be used by market participants when pricing an asset or liability, presuming that they act with a view to satisfying their own economic interest in the best way possible.

The fair value of financial instruments is determined according to a hierarchy of criteria based on the origin, type and quality of the information used (IFRS 13). In detail, this hierarchy assigns top priority to quoted prices (unadjusted) in active markets and less importance to unobservable inputs. Three different levels of input are identified:

• level 1: input represented by quoted prices (unadjusted) in active markets for identical assets
  or liabilities accessible by the entity as at the measurement date;
• level 2: input other than quoted prices that are directly or indirectly observable for
  the assets or liabilities to be measured; and
• level 3: unobservable input for the asset or liability.

A market is regarded as active if quoted prices, representing actual and regularly occurring market transactions considering a normal reference period, are readily and regularly available from an exchange, dealer, broker, industry group, pricing service or regulatory agency.

In specific cases, research is carried out in order to verify the significance of official market values. In the event of a significant reduction in the volume or level of operations compared with normal operations for the asset or liability (or for similar assets or liabilities) highlighted by a number of indicators (number of transactions, limited significance of market prices, significant increase in implicit premiums for liquidity risk, expansion or increase of the bid-ask spread, reduction or total lack of market for new issues, limited publicly-available information), analyses of the transactions or of the quoted prices are carried out: if the conclusion is reached that the market is inactive, the asset or liability is reclassified to level 2 of the fair value hierarchy.

The following table shows the fair value hierarchy for financial assets and financial liabilities that are measured at fair value on a recurring basis:

B Assets and liabilities that are measured at fair value on a recurring basis

The following are considered as level 1 financial instruments:

• shares valued using official closing prices and/or fixing provided by regulated stock exchanges;
• bonds and shares of funds valued using official closing prices and/or fixing provided by local authorities (central bank, monetary authority or local stock exchange); and
• investments in funds quoted on Multilateral Trading Facility (i.e. the EuroTLX or NASD TRACE circuit) or for which it is possible to continuously derive the quotation from the main price contribution international platforms.

When no quotation on an active market exists or the market is not functioning regularly, that is, when the market does not have a sufficient and continuous number of trades, and bid-ask spreads and volatilities that are not sufficiently contained, the fair value of the financial instruments is mainly determined through the use of valuation techniques whose objective is the establishment of the price at which, in an orderly transaction, the asset could be sold or the liability transferred between market participants, as at the measurement date, under current market conditions.

In the case of level 2 inputs, the valuation is based on prices taken from official listings of instruments which are similar in terms of risk profile. There are no level 2 financial assets as at 30 June 2026.

Level 3 consist of the following:

• equity investments for which there is no quoted market price in an active market. The fair value has been calculated using a value in use approach (‘DCF’) model, which considers the present value of expected future cash flows, discounted using a risk-adjusted discount rate of 10.00%. The estimated fair value would increase (decrease) if the expected cash flows were higher (lower) or if the risk-adjusted discount rate were lower (higher). The resulting fair value calculation resulted to an immaterial increase in the carrying value of the investment, however the change was not recognised in the financial statements for prudence;
• contingent consideration in relation to the acquisition of Linkverse S.r.l. The present value of future expected payments (expected payments discounted using a risk-adjusted discount rate of 4.98%) have been recorded as contingent consideration. These payments are contingent upon occurrence of future events such as regulatory approval milestones and commercial milestones. The estimated present value would increase (decrease) if the expected payments were higher (lower) or if the risk-adjusted discount rate were lower (higher).

During H1 2026, there were no significant transfers between levels 1 and 2 or between level 2 and 3 in the fair value hierarchy and the changes were due to a change in the market values.

C Assets and liabilities not measured at fair value on recurring basis

This table shows the comparison of fair values versus carrying amounts of financial assets and liabilities not measured at fair value, as required by IFRS 7.

1 Only financial liabilities.

For financial instruments represented by trade receivables, trade payables and other current liabilities, for which the present value of future cash flows is also taking into account the credit risk of the counterparties, does not differ significantly from carrying value, we assume that the carrying value is a reasonable approximation of the fair value.

The carrying amount of cash and cash equivalents, which consist primarily of bank current accounts and time deposits, approximates fair value.

For lease liabilities, unsecured bank loans, the carrying amount represents the fair value calculated based on the present value of future principal and interest cash flows, discounted at the Group’s incremental borrowing rate.

The fair value of subsidised loans, included at level 2, has been estimated with discounted cash flow models. The main inputs used are year-end market interest rates.

In July 2026, Cosmo acquired a minority equity stake in Scialytics SAS. (“Scialytics”), a developer of artificial intelligence (AI) software that assists surgeons in real time during minimally invasive procedures. The investment was completed through subscription of shares for a total consideration of €3 million. As the transaction occurred after the reporting date, it has not been recognised in these interim financial statements.

No material adjusting events occurred after the reporting period of 30 June 2026.