BRAIN Biotech : Half-year report as of 31 March 2021

2020/21

HALF-YEAR REPORT as at 31 March 2021

Significant events · Interim Group management report · Consolidated income statement · Consolidated statement of comprehensive income · Consolidated balance sheet · Consolidated statement of changes in equity · Consolidated cash flow statement · Selected notes to the consolidated financial statements · Contact · Financial calendar

ABOUT BRAIN

BRAIN Biotech AG ("BRAIN") is a leading European specialist in industrial biotechnology. As a technology provider and developer of bio-based products and solutions for nutrition, health and the environment, the company supports the biologization of industry and contributes to a more sustainable economy. BRAIN is the parent company of the BRAIN Group. Two pillars form BRAIN Group's business: The BioScience segment includes contract research for renowned industrial partners as well as an incubator for the development of the company's own highly innovative products. In the BioIndustrial segment, the company focuses on specialty business in the production and refinement of enzymes, microorganisms and bioactive natural products and the respective distribution.

The BRAIN Group maintains its own diverse collection of natural resources: the BRAIN Bioarchive comprises microorganisms, genetic material and natural substances. Based on this collection and with a comprehensive technology portfolio, BRAIN addresses technological challenges and develops bio-based products and solutions that are already successfully employed in the industry. The BRAIN Group has its own production facilities in Germany, UK and the US, which together with the associated biotechnological production expertise, complete the value chain within the Group.

Since its IPO in 2016, BRAIN Biotech AG has been listed in the Prime Standard of the

Frankfurt Stock Exchange (ISIN DE0005203947 / WKN 520394).

2BRAIN Biotech AG  6M 2020/21Half-year report as at 31 March 2021

CONTENTS

04	Significant events
1	January 2021 to 31 March 2021
05-08	1	October 2020 to 31 March 2021
	Interim Group management report
09	Consolidated income statement [unaudited]
1	October 2020 to 31 March 2021
	and for 1 January 2021 to 31 March 2021

10 Consolidated statement of comprehensive income [unaudited]

	1 October 2020 to 31 March 2021
	and for 1 January 2021 to 31 March 2021
11	Consolidated statement of financial position
(balance sheet) [unaudited]
	31 March 2021
12	Consolidated statement of changes in equity
[unaudited]
	1 October 2020 to 31 March 2021
13	Consolidated statement of cash flows
[unaudited]
	1 October 2020 to 31 March 2021
	Selected notes to the consolidated
14-18 financial statements [unaudited]
	1 October 2020 to 31 March 2021
19	Contact, Financial calendar, Disclaimer

3BRAIN Biotech AG  6M 2020/21Half-year report as at 31 March 2021

SIGNIFICANT

EVENTS

1 January 2021 to 31 March 2021

BRAIN Biotech AG acquires Biosun Biochemicals Inc., furthering expanding its product business in the USA

On 7 January 2021, BRAIN Biotech AG announced the acquisition of Biosun Biochemicals Inc. based in Tampa, Florida. The company is a successful distributor, formulator and blender of enzymes, flavors, food ingredients and natural colors in the US market. This acquisition will further enhance the growth trajectory of BRAIN's BioIndustrial division and improve the distribution capabilities in North America.

BRAIN Biotech AG makes a further investment in SolasCure Ltd.

On 19 January 2021, BRAIN Biotech AG participated in a capital increase at SolasCure Ltd. The total capital increase amounted to GBP 3.0 million, in which BRAIN participated with an amount of GBP 0.5 million. This led to a change in the interest held from 46 % to 41 %. In the future, SolasCure Ltd. will continue to be equity accounted in accordance with IAS

28. BRAIN Biotech AG continues to be very confident about the successful development of its active ingredient Aurase for chronic wound care, and has consequently participated in this new financing round for SolasCure Ltd.

Pharvaris / AnalytiCon Discovery GmbH

Pharvaris is a clinical-stage discovery and development company, founded in 2015 in Switzerland. It has successfully placed its IPO at the NASDAQ (ticker: phvs) on February 9th, raising USD 190.2 million. The company focuses on the treatment of hereditary angioedema (HAE), a medical disorder caused by gene mutation, which results in recurrent attacks of severe swelling. The swelling is caused by excess level of bradykinin. Pharvaris develops as a new treatment option a novel oral bradykinin B2-receptor antagonists (PHA121). The projects has entered Phase 2 of clinical development. BRAIN Group Company AnalytiCon Discovery GmbH performed for Pharvaris hit-identification,hit-to-lead and lead-optimization. In addition, AnalytiCon supported manufacturing and control activities as well as pharmaceutical development. Milestone payments based on clinical development progress, regulatory events and sales development can reach up to € 11.4 million (to-date € 1.15 million paid). In addition, there is a tiered royalty agreement in place with a low to medium-single digit royalty payment on direct and/or indirect net sales if the product will be successfully marketed.

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INTERIM GROUP MANAGEMENT REPORT

1 October 2020 to 31 March 2021

I.  GROUP BASIS AND GENERAL CONDITIONS

The remarks made in the consolidated financial statements for the financial year ending 30 September 2020 about the Group's basis and general conditions continue to be applicable.

II.  ECONOMIC AND BUSINESS REPORT

1. Results of operations

In the first six months of the 2020/2021 financial year, the BRAIN Group generated a revenue of € 18.0 million compared to € 19.9 million in the same period of the previous year, which represents a decline of 9.7 %. Revenues in the second quarter of 2020/21 amounted to € 9.9 million. This corresponds to an increase of 3.3 % compared to the second quarter of the previous year. Organically, i.e. excluding Biosun Biochemicals Inc., second quarter revenues decreased by 5.6 % to € 9.1 million.

Other income increased by € 1.0 million to € 1.3 million mainly due to the Gain on bargain purchase of Biosun Biochemicals Inc. Overall, total revenues (sales revenues, research and development funding, changes in inventories and other income) decreased by € 0.4 million (1.9 %) from € 20.2 million to € 19.8 million in the first six months of the financial year compared to the same period last year.

The BioScience segment generated revenue of € 4.7 million in the reporting period, down 31.6 % from the prior-year period. This decline is mainly due to some larger projects reaching their planned end phase and delays in the completion of new/follow-up projects in the Tailor-Made-Solutions business. In the second quarter, revenue decreased slightly from € 2.8 million to € 2.7 million compared to the previous year. Compared to the first quarter of the 2020/2021 financial year, an increase in revenue of € 0.7 million from € 2.0 million to € 2.7 million was achieved. The adjusted EBITDA decreased from € -2.3 million to € -3.4 million.

The lower adjusted EBITDA is mainly due to the decline in sales in the BioScience segment mentioned above, however, because a large part of the costs in the BioScience segment can de-facto be classified as fixed, achieved cost savings were able to partially counteract this decline.

Revenue generated by the BioIndustrial segment reported a slight increase of 2.3 % from € 13.1 million to € 13.4 million in the reporting period. In organic terms, revenue decreased by € 0.6 million or 4.2 % from € 13.1 million to € 12.6 million. Adjusted EBITDA decreased slightly from € 1.5 million to € 1.4 million. Within the segment, Biocatalysts Ltd. showed a

5BRAIN Biotech AG  6M 2020/21Half-year report as at 31 March 2021