Valneva : 2022 Half-Year Report

H1 2022

HALF-YEAR FINANCIAL REPORT

JANUARY 1 TO JUNE 30, 2022

August 11, 2022

VALNEVA SE Campus Bio-Ouest

6 rue Alain Bombard

44800 Saint-Herblain, France

www.valneva.com

VALNEVA SE	H1 2022
TABLE OF CONTENTS
GENERAL INTRODUCTORY COMMENTS AND DISCLAIMER	...........................................................4
1. MANAGEMENT REPORT ...............................................................................................................	5
1.1 Overview............................................................................................................................................	5
1.2 Operational Review ..........................................................................................................................	5
1.3 Financial Review ............................................................................................................................	13
1.4 Operational and Strategic Outlook 2022 ......................................................................................	15
1.5 Risk Factors ....................................................................................................................................	16
1.6 Related Parties' Transactions .......................................................................................................	20

2. STATUTORY AUDITORS' REVIEW REPORT ON THE HALF YEAR FINANCIAL

INFORMATION (PERIOD FROM JANUARY 1 TO JUNE 30, 2022)

............................................21

3. UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

AS AT JUNE 30, 2022 AND FOR THE SIX MONTHS ENDED JUNE 30, 2022 ..........................

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1. UNAUDITED INTERIM CONSOLIDATED STATEMENTS OF INCOME (LOSS) AND

COMPREHENSIVE INCOME (LOSS) ...........................................................................................	22
A. Unaudited Interim Condensed Consolidated Statements of Income (Loss) ..........................	22

1. Unaudited Interim Condensed Consolidated Statements of Comprehensive Income (Loss) 23

II.	UNAUDITED INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS ..........................	24
III.	UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS ...	25
IV.	UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CHANGES
	IN EQUITY .....................................................................................................................................	26
1.	Selected Notes To The Condensed Consolidated Interim Financial Report .................................	27
1.	Basis Of Preparation ......................................................................................................................	27
2.	Group Structure ..............................................................................................................................	32
3.	Segment Reporting ........................................................................................................................	32
4.	Revenues From Contracts With Customers...................................................................................	35
5.	Operating Expenses .......................................................................................................................	37
6.	Other Income And Expenses, Net..................................................................................................	38
7.	Finance Income/(Expenses) And Foreign Exchange Gain/(Losses), Net .....................................	38
8.	Intangible Assets ............................................................................................................................	39
9.	Leases (Right Of Use Assets And Lease Liabilities)......................................................................	39
10.	Property, Plant And Equipment ......................................................................................................	39
11.	Impairment Testing.........................................................................................................................	39
11.1	Impairment Testing.........................................................................................................................	39
11.2	Sensitivity To Changes In Assumptions .........................................................................................	41
12.	Financial Instruments .....................................................................................................................	42
13.	Inventories ......................................................................................................................................	42
14.	Trade Receivables .........................................................................................................................	43
15.	Other Assets...................................................................................................................................	44

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VALNEVA SE	H1 2022
16.	Cash And Cash Equivalents ..........................................................................................................	45
17.	Equity..............................................................................................................................................	45
17.1	Share Capital And Share Premium ................................................................................................	45
17.2	Other Reserves ..............................................................................................................................	47
18.	Borrowings .....................................................................................................................................	47
19.	Contract Liabilities ..........................................................................................................................	48
20.	Refund Liabilities ............................................................................................................................	49
21.	Provisions .......................................................................................................................................	49
21.1	Provisions For Employee Commitments ........................................................................................	49
21.2	Other Provisions .............................................................................................................................	50
22.	Other Liabilities...............................................................................................................................	50
23.	Contractual Obligations ..................................................................................................................	51
24.	Cash Flow Information ...................................................................................................................	52
25.	Contingencies And Litigations ........................................................................................................	52
26.	Related Party Transaction..............................................................................................................	53
27.	Events After The Reporting Period ................................................................................................	54
4.	RESPONSIBILITY STATEMENT ..................................................................................................	55

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VALNEVA SE

H1 2022

GENERAL INTRODUCTORY COMMENTS AND DISCLAIMER

In this interim financial report, unless stated otherwise, the terms "Company", "Valneva" and "Group" refer to Valneva SE and its subsidiaries.

This interim financial report contains forward-looking statements about the Group's targets and forecasts, especially in chapter 1.4 - "Operational and strategic outlook FY 2022". Such statements are based on data, assumptions and estimates that the Company considers reasonable.

All forward-looking statements in this interim financial report are subject to change or adjustments as a result of uncertainties inherent in all research and development activities, as well as the economic, financial, competitive and regulatory environment. In addition, the Group's business activities and its ability to meet its targets and forecasts may be affected if some of the risk factors described in chapter 1.5

- "Risk factors" of this interim financial report arise.

Investors are urged to pay careful attention to the risk factors set forth in chapter 1.5 - "Risk factors" of this interim report before making any investment decision. The risks presented in this interim report are those the Group considers to be the most significant for the second half of 2022 and are not all of the risks that the Group faces during this period or beyond. One or more of these risks may have an adverse effect on the Group's activities, condition, the results of its operations or on its targets and forecasts. Furthermore, other risks not yet identified or considered as significant by the Group could have the same adverse effects, and investors may lose all or part of their investment.

Forward-looking statements, targets and forecasts shown in this interim financial report may be affected by risks, either known or unknown uncertainties and other factors that may lead to the Group's future results of operations, performance and achievements differing significantly from the stated or implied targets and forecasts. These factors may include changes in economic or trading conditions and regulations, as well as the factors set forth in chapter 1.5 - "Risk factors" of this interim report as well as those risks and uncertainties discussed or identified in Valneva's public filings with the "Autorité des Marchés Financiers" (AMF) in France, including those listed in the Company's 2021 Universal Registration Document filed with the AMF on March 23, 2022, which is available on the Company and AMF's websites, and public filings and reports filed with the U.S. Securities and Exchange Commission (SEC), including the Company's 2021 annual report on Form 20-F available on the SEC's website.

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VALNEVA SE

H1 2022

1. MANAGEMENT REPORT

1.1 Overview

Valneva is a specialty vaccine company focused on the development, manufacturing and commercialization of prophylactic vaccines for infectious diseases with significant unmet medical need.

The Company takes a highly specialized and targeted approach to vaccine development, beginning with the identification of deadly or debilitating infectious diseases that lack a prophylactic vaccine solution and for which there are limited therapeutic treatment options. It then applies its deep understanding of vaccine science, including its expertise across multiple vaccine modalities, as well as its established vaccine development capabilities, to develop prophylactic vaccines to address these diseases.

Valneva has leveraged its expertise and capabilities to successfully commercialize two wholly owned vaccines and rapidly advance multiple vaccine candidates into late-stage clinical development, including candidates against Lyme disease (partnered with Pfizer), the chikungunya virus, and COVID-19 which was notably approved in Europe and the United Kingdom (UK) during the second quarter of 2022.

Valneva has over 700 employees across its operations in Austria, Sweden, the United Kingdom, France, Canada and the U.S. For more information, visit www.valneva.comand follow the Company on LinkedIn.

1.2 Operational Review

1.2.1 Vaccine Research & Development (R&D)

Valneva's portfolio is composed of highly differentiated vaccine candidates designed to prevent infectious diseases with high unmet needs.

The Company has a broad portfolio that consists of late-stage clinical vaccine candidates and commercial products, as well as preclinical assets. Each of the assets in its portfolio are differentiated products or product candidates that either target diseases currently lacking a preventative or effective therapeutic treatment option or that the Company believes may have meaningful advantages relative to other vaccine solutions or treatment options.

Valneva strives to develop products towards marketing approval and commercialization either through strategic licensing or partnering, as illustrated by its collaboration for its Lyme disease vaccine candidate VLA15 or in-house,leveraging existing industrial and commercial infrastructures.

Lyme Disease Vaccine Candidate - VLA15

Overview of Lyme Disease

Lyme disease is a systemic infection caused by Borrelia bacteria transmitted to humans by infected Ixodes ticks1. It is considered the most common vector-borne illness in the Northern Hemisphere2.

While the true incidence of Lyme disease is unknown, according to the U.S. Centers for Disease Control and Prevention (CDC), approximately 476,000 people are diagnosed with Lyme disease in the United States3 each year with at least a further 200,000 cases occurring annually in Europe4. Research suggests

1. Stanek et al. 2012, The Lancet 379:461-473
2. Gern L, Falco RC. Lyme disease. Rev Sci Tech. 2000 Apr;19(1):121-35
3. As estimated by the CDC:How many people get Lyme disease? | Lyme Disease | CDC

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