SUPPLEMENTARY INFORMATION (CORRECTIVE INFORMATION) TO THE ANNUAL REPORT 2024 AND THE INTERIM REPORT FOR H1 2025

Core Viewpoint - The company, Pharma Equity Group A/S, has published corrective information regarding its annual report for 2024 and interim report for H1 2025, following a decision from the Danish Business Authority that necessitated a reassessment of the receivable from Portinho S.A. using an Expected Credit Loss (ECL) model, resulting in significant write-downs of the receivable value [1][2][3]. Group 1: Background and Management's Statement - The Danish Business Authority issued a decision on November 20, 2025, requiring the company to reassess its receivable from Portinho S.A. using an ECL model as per IFRS 9 [2][3]. - The company has prepared a new valuation model that incorporates four probability-weighted outcomes: settlement, legal recovery, insolvency, and total loss [4]. - The Board of Directors and Executive Board have approved the supplementary information related to the annual and interim reports [7]. Group 2: Financial Corrections - The implementation of the ECL model has led to a significant write-down of the receivable as of December 31, 2024, and June 30, 2025, treated as an error correction under IAS 8 [5]. - The total cumulative effect of the correction as of December 31, 2024, is reflected in the annual financial statements for that year [5]. - The receivable from Portinho S.A. was originally valued at DKK 58 million, which has been adjusted to DKK 41.812 million following the correction [27][61]. Group 3: Financial Statements Impact - The updated consolidated income statement shows a loss for the year increasing from DKK 24.422 million to DKK 40.610 million due to the correction [26]. - The total assets have been adjusted from DKK 65.606 million to DKK 49.418 million, reflecting the write-down of the receivable [27]. - The equity has decreased from DKK 48.875 million to DKK 32.687 million as a result of the adjustments [27]. Group 4: ECL Model Details - The ECL model now reflects a probability-weighted approach with the following probabilities assigned: 45% for settlement, 30% for legal recovery, 20% for insolvency, and 5% for total loss [38][66]. - The reassessment of the receivable is considered a significant accounting estimate, with key sources of estimation uncertainty related to the recovery scenarios and probabilities assigned [39][50]. - The correction does not affect the company's legal claim against Portinho S.A. or the underlying contractual arrangements [35].