1Basis of preparation

These condensed consolidated financial statements are the unaudited, interim consolidated financial statements (hereafter “the Half-year Report”) of PolyPeptide Group AG and its subsidiaries for the six-month period ended 30 June 2026 (hereafter “the interim period”). The Half-year Report is prepared in accordance with the International Accounting Standard 34 – Interim Financial Reporting and thus does not include all of the information required for a complete set of IFRS financial statements. The Half-year Report should be read in conjunction with the consolidated financial statements for the year ended 31 December 2025 (hereafter “the Annual Report 2025”) as it provides an update of the previously reported information.

The accounting policies applied are consistent with those of the annual consolidated financial statements for the year ended 31 December 2025, except for the adoption of amended standards effective from 1 January 2026. The adoption of these amendments did not have a material impact on the Group’s interim consolidated financial statements.

The preparation of the Half-year Report requires management to make estimates and assumptions that affect the reported amounts of revenues, expenses, assets, liabilities and disclosure of contingent liabilities. If in the future such estimates and assumptions, which are based on management’s best judgment at the date of the Half-year Report, deviate from the actual circumstances, the original estimates and assumptions will be modified as appropriate in the year in which the circumstances change.

There are a number of standards and interpretations that have been issued by the International Accounting Standards Board that are effective for periods beginning subsequent to 31 December 2026 (the date of the Group’s next annual consolidated financial statements) that the Group has decided not to adopt early. The Group is currently assessing the impact of these standards and amendments. IFRS 18 becomes effective for annual reporting periods beginning on or after 1 January 2027. The standard is expected to affect the presentation of the statement of profit or loss, including the introduction of defined subtotals such as operating profit and new disclosures for management-defined performance measures. The Group does not expect a material impact on recognition or measurement, but presentation and disclosure changes are expected.

All amounts are stated in thousands of Euros, unless otherwise stated.

2Segment information

PolyPeptide generates revenue that is presented in Note 4. From the 2025 Annual Report onward, the Company presents its business drivers in two primary business areas “Commercial revenue” and “Development revenue”. This revised presentation reflects the distinction between revenue from ongoing commercial supply activities and revenue from early-stage development collaborations.

The chief operating decision maker (i.e., the Executive Committee) reviews revenue generated within each business area but does not review results at this disaggregated level. As a result, the two business areas are not considered two separate operating segments since only revenue information for each area is reviewed by the chief operating decision maker. The Group continues to have one operating segment in accordance with IFRS 8 – Operating Segments.

No segment information is thus required to be disclosed in the notes to the interim consolidated financial statements according to IAS 34 – Interim Financial Reporting.

3Seasonality

The activities of PolyPeptide are not subject to seasonal or cyclical variations in the underlying business. However, PolyPeptide may experience variability in its revenue across periods as a result of, among other things, the timing of customer purchase orders and payments, investments made during the period, increased competition, the number of selling days in a period and fluctuation of foreign currency exchange rates.

4Revenue

PolyPeptide generates revenue from the following two business areas:

Revenue by business area

Development revenue (formerly Custom Projects) business area specializes in the manufacturing of custom research-grade peptides, in milligram, gram or pilot scale quantities, at predefined purity levels for use in pre-clinical and clinical development as well as for regulatory and scientific studies. Development also provides cGMP manufacturing services during the later phases of development. Revenue is allocated to Development for sales of products in the pre-clinical through clinical stage development (i.e., prior to commercial launch) as generally set out in master service agreements and/or the accompanying work / purchase orders.

Commercial revenue (formerly Contract Manufacturing/Generics and Cosmetics) business area manufactures peptides for commercial-stage peptide therapeutics, at scale, in commercial batches and in accordance with cGMP requirements. The Group’s Commercial services also include consultation for continuous improvement and process stabilization / optimization to support scale-up, process changes to support cost of goods sold enhancement, lifecycle management and extension as well as regulatory support. Revenue is allocated to Commercial where production is related to the commercial supply, as generally set out in master supply agreements and/or the accompanying work / purchase orders. In addition, Commercial also includes manufacturing of peptide-based generics for the human and veterinary market. The business area also includes revenue generated from the sale of peptides used in cosmetics.

Revenue from contracts with customers

Revenue from Active Pharmaceutical Ingredients (API) fully relate to the sale of goods, and revenue from related services refer to the rendering of services. All revenues from contracts with customers classify as business-to-business.

Revenue by geographical area

Revenue is attributed to the individual geographical area based on the invoice address of the respective customer.

5Significant events and transactions

During H1 2026, the Group recognized proceeds of EUR 9.2 million from the transfer of certain internally generated know-how that had not previously been capitalized. The proceeds were recognized within other operating income in the consolidated income statement.

In H1 2026, the Group decided to discontinue its implementation project of a new Manufacturing Execution System (MES) following a reassessment of the solution and future business requirements. As a result, the Group recognized an impairment loss of EUR 7.3 million on previously capitalized project costs. The impairment loss was recognized within depreciation, amortization and impairment as part of the general and administrative expenses in the consolidated income statement.

There were no significant events or transactions in H1 2025 requiring separate disclosure.

6Share-based payment

The following equity-settled share-based payment arrangements are recognized in the interim consolidated financial statements:

Board of Directors

Members of the Board of Directors receive at least half of their fixed fees in shares, with the option to elect to be paid up to 100% of their fixed fee in shares. For Board members electing to receive more than 50% of their fixed fee in shares, the shares exceeding the 50% portion are granted at a discount of 20% to market price. The proportion between shares (in excess of 50%) and cash is selected by each Board member upon election at the annual general meeting and is fixed until the next annual general meeting. The Board of Directors is compensated on a pro-rata basis for the period of service, even in the case of early termination or removal.

In H1 2026, the fair value at grant date amounted to kEUR 541 (H1 2025: kEUR 795), reflecting a measurement based on a total number of shares of 16,722 (H1 2025: 51,895) and a price of EUR 32 per share as of 8 April 2026 (H1 2025: a price of EUR 15 per share as of 9 April 2025). All shares will be fully vested at the annual general meeting in April 2027. In H1 2026, a total amount of kEUR 345 (H1 2025: kEUR 488) was recognized as “General and administrative expenses” in the income statement according to the principles of graded vesting in IFRS 2.

Executive Committee and selected key employees

The Board of Directors has adopted a Long-Term Incentive Plan (“LTIP”) for Executive Committee members and selected key employees of the Group. Under this share-based incentive program, eligible participants are awarded the contingent right to receive a certain number of shares in the future (“PSU(s)”) in the Company, subject to, inter alia, continued employment and achievement of market as well as non-market performance targets. The actual number of PSUs that will eventually vest and be settled in shares depends on revenue, EBITDA, and Total Shareholder Return (“TSR”) performance of the Group over a three-year performance period.

• In H1 2025, 41 employees of the Group, including members of the Executive Committee, were granted PSUs in the Company. The total fair value at grant date amounted to kEUR 3,557.The fair value at grant date for the PSUs conditioned on revenue and EBITDA performance (i.e., non-market vesting conditions) amounted to kEUR 3,203, reflecting a measurement based on 154,364 number of PSUs potentially vesting and the share price of PolyPeptide Group AG as of the grant date of EUR 21, adjusted for a value cap of 500% at vesting. The impact of the value cap has been determined based on a Monte-Carlo simulation. The fair value at grant date for the PSUs conditioned on TSR performance amounted to kEUR 354, reflecting a measurement based on 33,076 number of PSUs and a fair value per PSU of EUR 11. The fair value per PSU is determined based on a Monte-Carlo simulation that also incorporates a value cap of 500% at vesting.
• In H2 2025, one employee of the Group joined the Long-Term Incentive Plan and was granted PSUs in the Company. The total fair value at grant date amounted to kEUR 101. The fair value at grant date for the PSUs conditioned on revenue and EBITDA performance (i.e., non-market vesting conditions) amounted to kEUR 85, reflecting a measurement based on 3,602 number of PSUs potentially vesting and the share price of PolyPeptide Group AG as of the grant date of EUR 24, adjusted for a value cap of 500% at vesting. The impact of the value cap has been determined based on a Monte-Carlo simulation. The fair value at grant date for the PSUs conditioned on TSR performance amounted to kEUR 16, reflecting a measurement based on 772 number of PSUs and a fair value per PSU of EUR 20. The fair value per PSU is determined based on a Monte-Carlo simulation that also incorporates a value cap of 500% at vesting. During H2 2025, 1,235 PSUs granted to two participants were forfeited due to termination of employment prior to vesting. In accordance with IFRS 2, the related share‑based payment expense recognized in prior periods was reversed, and no further expense is recognized in respect of these forfeited awards.
• In H1 2026, 43 employees of the Group, including members of the Executive Committee, were granted PSUs in the Company. The total fair value at grant date amounted to kEUR 5,658. The fair value at grant date for the PSUs conditioned on revenue and EBITDA performance (i.e., non-market vesting conditions) amounted to kEUR 4,257, reflecting a measurement based on 104,688 number of PSUs potentially vesting and the share price of PolyPeptide Group AG as of the grant date of EUR 41, adjusted for a value cap of 500% at vesting. The impact of the value cap has been determined based on a Monte-Carlo simulation. The fair value at grant date for the PSUs conditioned on TSR performance amounted to kEUR 1,401, reflecting a measurement based on 22,433 number of PSUs and a fair value per PSU of EUR 62. The fair value per PSU is determined based on a Monte-Carlo simulation that also incorporates a value cap of 500% at vesting. During H1 2026, 23,021 PSUs granted to six participants were forfeited due to termination of employment prior to vesting and one participant will retain pro-rated amounts of PSUs. In accordance with IFRS 2, the related share‑based payment expense recognized in prior periods was reversed, and no further expense is recognized in respect of these forfeited awards.

The participants are compensated for missed dividend payments during the vesting period if the PSUs vest. As a result, expected dividends during the vesting period have not impacted the fair value measurements of the grant.

An expense of kEUR 1,659 (H1 2025: kEUR 473) has been recognized in H1 2026 as “General and administrative expenses” in the income statement relating to these grants.

Chief Executive Officer

The CEO of the Group, Juan Jose Gonzalez, is participating in the share-based incentive program described above. In addition to these, he was also granted PSUs on 6 September 2023 (“2023 CEO Grant”). The vesting of the PSUs for the 2023 CEO Grant was subject to the achievement of RONOA and EPS performance targets of the Group over a three-year performance period.

In accordance with IFRS 2, the maximum number of shares potentially vesting was used for the determination of the fair value of the grant. As a result, the fair value at grant date amounted to kEUR 1,135, reflecting a measurement based on 51,060 PSUs and the share price of PolyPeptide Group AG as of the grant date of EUR 23. The vesting period ended 10 trading days after the shareholders approved the 2025 audited consolidated financial statements.

The participant is compensated for missed dividend payments during the vesting period if the PSUs vest. As a result, expected dividends during the vesting period did not impact the fair value measurement of the grant.

In H1 2026, no share-based payment expense has been recognized in the income statement for the period (H1 2025: nil), as the performance conditions for the 2023 CEO Grant were not met, no PSUs vested, and the grant has lapsed.

7Shareholders’ equity

Share capital

There have been no changes to the share capital of the parent company of the Group, PolyPeptide Group AG, during H1 2026. As a result, the share capital of PolyPeptide Group AG comprised 33,125,001 shares of CHF 0.01 each as at 30 June 2026. 

All shares are fully paid in.

Treasury shares

8Investment in subsidiaries

The interim consolidated financial statements include the financial statements of the Company and the subsidiaries listed below. Percentage of voting shares is equal to percentage of ownership.

9Related parties

The following transactions have been entered into with related parties:

In addition to the information shown in the table above, PolyPeptide Group AG has secured in 2023 a subordinated credit facility from its main shareholder, Draupnir Holding B.V. During H1 2025, the Company amended and restated the Draupnir Facility extending the term to May 2027. As a result, interest expenses in the amount of kEUR 606 have been incurred during H1 2026 (H1 2025: kEUR 787). As at 30 June 2026, an amount of kEUR 20,000 (30 June 2025: kEUR 20,000) was drawn from the credit facility and is accordingly recognized in the consolidated statement of financial position as a current liability.

All disclosed related parties are either related through the Esperante Investments S.à r.l. ownership structure or through managerial control. Esperante Investments S.à r.l. is the higher parent company of the majority shareholder Draupnir Holding B.V.

Purchases from and amounts due to Thalamus AB relate to rental of premises. Income from and amounts due from the Ferring Group relate to sale of goods.

Purchases from Monedula AB relate to the lease of premises. Income and amounts due from Monedula relate to property management fees and recharged improvements to the premises. Amounts due to Monedula AB relate to the financial liability recognized for the lease of premises.

Income from and amounts due from SVAR Life Science AB relates to sale of goods. Purchases from and amounts due to Limhamn Kajan 37 AB relate to rental of premises.

During H1 2026, no provisions for doubtful debt and no write-offs on receivables from related parties were recognized (H1 2025: nil). No guarantees were given or received for any outstanding related party balances (H1 2025: nil).

10Interest-bearing loans and borrowings

As at the reporting date, the Company had in place a revolving credit facility agreement provided by UBS Switzerland AG, Zürcher Kantonalbank, Danske Bank and ING Bank (the “RCF”). During H1 2026, the Company amended and restated the RCF, increasing the capital commitments from EUR 151 million to EUR 200 million, with the maturity remaining March 2028.

The amended and restated RCF has financial covenants. For each period of twelve months ending on 30 June or 31 December in any year, the Group must comply with predetermined financial ratios that are based on debt and earnings.

One of the lenders participating in the RCF has issued a bank guarantee in the amount of EUR 10 million in favor of one of the Group’s customers in relation to amounts received for (i) manufacturing capacity reservations and (ii) raw material prepayments. The amount of the bank guarantee has reduced the available drawings under the RCF accordingly.

The interest rate on the RCF amounted to EURIBOR plus an average margin of 3.15% in H1 2026 per annum (H1 2025: 2.60% per annum). As at 30 June 2026, an amount of kEUR 100,000 was drawn from the RCF (31 December 2025: kEUR 90,000).

As at the reporting date, the Company also had in place a subordinated credit facility with its main shareholder, Draupnir Holding B.V., in the amount of kEUR 20,000, which was fully drawn as at 30 June 2026 (31 December 2025: kEUR 20,000) (the “Draupnir Facility”). The interest rate on the Draupnir Facility amounts to three-month EURIBOR plus a margin of 3.95% (H1 2025: 2.65% and 3.95%) per annum on the amounts drawn.

As at 30 June 2026, an amount of kEUR 1,200 was granted by ING Bank (31 December 2025: kEUR 1,200), of which nil was drawn (31 December 2025: nil). In H1 2026 and H1 2025, the interest rate on the ING Bank credit facility amounted to 1-month EURIBOR plus a margin of 1.2% on the amounts drawn, and a facility fee of 0.30% on the total facility amount.

11Subsequent events

There have been no significant events subsequent to the end of the reporting period that would require additional disclosures in the interim consolidated financial statements.

The interim consolidated financial statements were approved for issue by the Board of Directors on 11 August 2026.