LEO Foundation Annual Report 2025

ANNUAL REPORT 2025

Let’s pave the way for curing skin diseases

LEO Foundation at a glance

The LEO Foundation is a Danish enterprise foundation with the purpose of paving the way for curing skin diseases. The Foundation drives progress for people living with skin diseases through ownership, philanthropy and investments.

Let's pave the way for curing skin diseases

Engaged ownership

Controlling shareholder of LEO Pharma since 1986

The LEO Foundation is an engaged owner of the pharmaceutical company LEO Pharma. Our main objective is to ensure the company’s long-term development and success in becoming a global leader in medical dermatology, delivering outstanding results.

Philanthropy

Philanthropic support for scientific purposes

The LEO Foundation is one of the world's largest private funders of independent skin research. We provide philanthropic grants to support the best international research that pioneers new discoveries and transforms our understanding of the skin and its diseases.

Investments

Financial assets of around DKK 18.8bn

The LEO Foundation’s financial assets are invested to enable us to ensure LEO Pharma’s long-term continuation and strategic development, as well as provide a growing basis for philanthropic grants.

Controlling shareholder of LEO Pharma A/S ~80%

The LEO Group

The LEO Group consists of the LEO Foundation, LEO Holding A/S and LEO Pharma A/S, including its Danish and international subsidiaries (collectively LEO Pharma Group).

LEO Foundation

LEO Foundation

LEO Holding A/S

The LEO Foundation was established in 1984. The Foundation is the ultimate controlling shareholder of LEO Pharma and provides philanthropic support for independent research.

LEO Holding

The LEO Foundation’s financial assets are held in LEO Holding, where all investment activities are carried out.

Controlling shareholder ~80%

LEO Pharma Group

LEO Pharma Group LEO Pharma develops, manufactures and markets pharmaceutical drugs for the treatment of skin diseases.

Well positioned for long-term value creation

2025 was a year of focused execution and scaled impact across the LEO Foundation and the wider LEO Group –accelerating progress toward our long-term ambitions and advancing our purpose of paving the way for curing skin diseases.

Across the LEO Group, and from the perspective of the LEO Foundation’s role as owner, philanthropist and investor, 2025 delivered strong results. LEO Pharma took important steps in its growth journey, the Foundation scaled its philanthropic activities and the investment portfolio delivered solid returns in volatile markets. Behind these results lies a commitment shared across the LEO Group to improving the lives of people living with skin diseases.

Building on this momentum, guided by our Ambition 2030 and anchored in the LEO Foundation’s purpose – Let’s pave the way for curing skin diseases – 2025 was also a year in which we developed and refined strategies across ownership, philanthropy and investments. With strong platforms already in place, this work clarified the priorities that will guide the next five years.

Chair of the Board of Trustees

CEO

Ownership

The LEO Foundation’s main objective as the controlling shareholder of LEO Pharma is to provide the best possible platform for the company’s long-term development, growth and value creation. Guided by the Foundation’s charter, we exercise engaged and ambitious ownership, combining sound governance with strategic ambition.

In 2025, LEO Pharma entered a pivotal phase in its growth journey, reflecting progress across its strategic priorities: growing the product portfolio, partnering to raise the standard of care and further strengthening profitability. Revenue rose to DKK 13,499 million, up 10% at constant exchange rates (CER), and adjusted EBITDA more than doubled to DKK 2,107 million, yielding a 16% margin. These results mark the third consecutive year of double-digit CER revenue growth, driven by innovation and supporting significantly improved profitability.

As the well-diversified backbone of LEO Pharma’s dermatology platform, the established portfolio spanning more than 20 brands continued to grow in 2025, supporting the scaling of the company’s first-in-class strategic brands. Adtralza®/Adbry® for atopic dermatitis, launched in 2021, continued to see strong growth through focused commercial execution. Anzupgo® for chronic hand eczema, launched in late 2024, accelerated its global rollout, including its US launch in 2025, and is set to be a key growth driver from 2026. In addition, Spevigo® for generalized pustular

psoriasis joined the portfolio, expanding the company’s ability to deliver high-impact care to underserved patients.

Building on this solid base, momentum in 2025 was reinforced by a strengthened partnershipbased innovation model, enabling LEO Pharma to advance new therapies across development stages and therapeutic areas. Progress was further supported by continued investments in organizational capabilities and people. Employee engagement reached its highest level in five years, reflecting great commitment to the company’s purpose and strategy.

The LEO Foundation remains actively engaged in supporting LEO Pharma’s continued development, helping to ensure that growth, innovation, culture and governance evolve together, and that the company is well positioned for the next phase in its journey of delivering value to patients, partners and shareholders.

Philanthropy

Beyond company ownership, the LEO Foundation is the world’s largest private funder of independent skin research. Right now, backed by our funding, more than 480 active skin scientists are making important breakthroughs, transforming our understanding of the skin and its diseases.

In 2025, our philanthropic activities reached a new scale and level of maturity. We awarded

DKK 361 million across 105 grants – a 31% increase in total funding and 40% more grants – reflecting both continued growth in demand and our ambition to strengthen the global skin research ecosystem.

The year also marked a strategic transition. As the final year of our previous grant strategy, it concluded five years of building a strong and well-established funding portfolio with research excellence programs at its core.

Building on this platform, we launched Grant Strategy 2030, setting a clear direction for the coming five-year period. Five strategic tracks will guide future funding across the global skin research ecosystem and along the pathway from early scientific discoveries to innovation that produces improved treatments and solutions for patients. In parallel, we strengthened our work on impact assessment and continued to optimize processes across the grant lifecycle, enhancing transparency, consistency and efficiency.

Together, these efforts position the LEO Foundation to further expand its philanthropic reach and impact in the years ahead.

Investments

The backbone of the LEO Foundation’s ability to drive long-term value is our financial investments. We manage a diversified, global portfolio of DKK 18.8 billion across multiple asset classes. By balancing risk, ensuring responsible investments and delivering attractive returns,

these investments ensure the financial platform needed to drive increasing ambitions.

In 2025, financial markets were volatile, driven more by political developments than economic fundamentals. Against this backdrop, the investment portfolio delivered solid and resilient performance, generating a positive return of DKK 1,051 million, corresponding to 5.9%, with all asset classes contributing. Broad diversification and active risk management supported returns across equities, fixed income, alternatives and overlay strategies.

During the year, we continued to strengthen the portfolio by increasing exposure to illiquid alternative investments in line with our strategic plan, while maintaining a balanced risk and liquidity profile. At year-end, the portfolio remained robust and well positioned to navigate uncertainty and to continue underpinning the Foundation’s commitments.

Looking ahead

As we look ahead, the LEO Foundation remains focused on strengthening sustainable value creation across ownership, philanthropy and investments.

The ownership model will continue to evolve and provide the best possible platform for LEO Pharma’s long-term development and growth. The Foundation will always remain the company’s controlling shareholder. In that context, we continue to view the potential public

listing of LEO Pharma as a natural and attractive next step – one that the company will continue to prepare for in close collaboration with its owners, to unlock new potential and enhance LEO Pharma’s ability to advance standards of care for millions of people with skin diseases.

In philanthropy, 2026 will be the first year of implementing Grant Strategy 2030, with an initial focus on the new Innovation and Nurture tracks. We expect grants of approximately DKK 425 million – around 18% higher than in 2025, reflecting our continued commitment to accelerating progress toward better understanding, treatments and, ultimately, cures for skin diseases.

Within investments, we will continue to pursue a long-term, disciplined investment strategy, with a particular focus on strengthening diversification through selective investments in alternative assets. Expansion into illiquid alternatives is expected to be slightly lower than in 2025, with the emphasis set to be on partnerships with existing managers. The portfolio’s risk and liquidity profile will remain stable, ensuring the financial strength to support LEO Pharma’s long-term continuation and success, as well as providing a growing basis for our philanthropic ambitions.

None of this would be possible without the people and partners who contribute to the LEO Foundation’s work and to progress across the LEO Group.

We would like to thank board members, management, and employees at both LEO Pharma and the LEO Foundation; our coshareholder in LEO Pharma, Nordic Capital; and our scientific review panel members and grantees around the world for their dedication and continued commitment to improving the lives of people living with skin diseases. Your dedication drives tangible progress and, together, step by step, you are helping to pave the way for curing skin diseases.

Lars Olsen Chair of the Board of Trustees

Peter Haahr CEO

Let’s pave the way for curing skin diseases

Skin diseases are among the most common human diseases. In fact, one in three people struggle with a skin disease at some point in their lives. Children and adults live with itching and pain – often for many years. While often very visible on the skin, the burden goes much deeper. Skin diseases can lead to lost days of school or work. They can make people feel isolated, anxious and depressed.

Breakthroughs in skin research transform how we understand the skin and how we can treat its diseases. Yet, skin diseases remain complex. Despite significant advancements, many skin diseases still have no adequate treatment, and skin research continues to be underfunded.

There is still much to be done – to improve diagnoses, develop innovative treatments and ultimately find cures.

As an independent Danish enterprise foundation, the LEO Foundation is uniquely positioned to help pave the way for curing skin diseases. We combine business ownership, philanthropy and financial investments to alleviate the global burden of skin diseases.

Our ambitions toward 2030 are being implemented through four strategic priorities, all of which share the common goal of contributing to paving the way for curing skin diseases.

Explore highlights toward delivering on our ambitions by following the page references on the right.

We pave the way for curing skin diseases by…

Pioneer new discoveries

… catalyzing outstanding research that pioneers new discoveries and transforms our understanding of the skin and its diseases.

Be an engaged owner

… assessing, challenging and supporting LEO Pharma in becoming a global leader in medical dermatology, delivering outstanding results.

Grow and diversify our assets

… generating attractive investment returns that enable us to ensure LEO Pharma’s long-term continuation and strategic development, as well as provide a growing basis for philanthropic grants.

Drive sustainable development

… driving and promoting sustainable and responsible practices across our operations.

Our ambition is that by 2030…

… we will have catalyzed major advancements in basic, translational and clinical research, and created significant societal impact through philanthropic grants for research and awareness activities, reaching an annual level of more than DKK 500 million.

… LEO Pharma will have become a listed, leading global player in medical dermatology, making innovative treatments available to people living with skin diseases.

… we will have delivered superior returns on financial assets and further diversified our investment activities, while acting as a responsible investor.

… the LEO Foundation will be recognized for exercising good governance, promoting diversity and inclusion, and encouraging climate transition.

Financial review – LEO Group

The LEO Group’s financial results in 2025 reflected focused execution and scaled impact across the LEO Foundation and the wider LEO Group.

LEO Pharma took important steps in its growth journey, while the Foundation scaled its philanthropic activities, and its investment portfolio delivered solid returns in volatile markets.

The Group’s 2025 result was positively impacted by a gain of DKK 1,051 million on the LEO Foundation’s investing activities and a net profit of DKK 2,489 million in LEO Pharma, contributing to a net profit for the year of DKK 3,459 million.

Operating activities

LEO Pharma’s sales increased by 8% to DKK 13,499 million in 2025. Group sales growth at constant exchange rates (CER) was 10%, mainly driven by organic growth. Revenue from dermatology brands grew by 12% (CER), including organic growth of 10% driven by strong performance in the strategic dermatology brands portfolio as well as steady growth for the established dermatology brands portfolio.

LEO Pharma’s operating expenses were down 11% compared to 2024 and amounted to DKK 7,702 million. The reduction was driven by restructuring initiatives implemented in 2024.

LEO Pharma’s R&D costs were DKK 1,396 million, a reduction of DKK 874 million compared to 2024. The decrease also reflected savings from

restructuring initiatives implemented in 2024 and the transfer of cost responsibility for the oral STAT6 program to Gilead Sciences. R&D costs in 2025 included impairment charges of DKK 11 million, compared to DKK 209 million in 2024.

Non-recurring items amounted to income of DKK 1,644 million in 2025, net of transaction costs and other non-recurring items, reflecting the upfront payment received from Gilead Sciences. In 2024, non-recurring items represented an expense of DKK 295 million.

The Group’s administrative costs totaled DKK 1,404 million, compared to DKK 1,527 million in 2024, also driven by savings from restructuring initiatives. The Foundation’s own net administrative and operating expenses amounted to DKK 31 million, which is an increase of 19% compared to 2024, mainly caused by expansion of the organization and increased grant activities.

The Group’s operating result (EBIT) was a profit of DKK 2,225 million, compared to a loss of DKK 1,188 million in 2024.

Philanthropic activities

The LEO Foundation awarded 105 grants totaling DKK 361 million in 2025, compared to 75 grants totaling DKK 275 million in 2024. The outstanding grant liability increased to DKK 637 million at yearend, versus DKK 542 million at year-end 2024.

Investing activities

The LEO Foundation’s financial investments benefited from favorable market conditions and delivered a positive return of DKK 1,051 million or 5.9%, compared to DKK 2,184 million in 2024. All asset classes – equities, credit, government and mortgage bonds, alternatives and overlay strategies – contributed positively. Financial markets in 2025 were influenced more by political developments than by economic data. Global economic growth remained solid, supported in Europe by fiscal stimulus and spending commitments.

Net result

Overall, the net result for the Group in 2025 was a profit of DKK 3,459 million, compared to a profit of DKK 303 million in 2024.

Assets

At December 31, 2025, total assets amounted to DKK 39,532 million, compared to DKK 38,429 million at year-end 2024. This includes financial investments of DKK 18,772 million, compared to DKK 18,308 million in 2024. Intangible assets amounted to DKK 4,740 million at December 31, 2025, against DKK 4,942 million at year-end 2024. The decrease was primarily caused by ordinary amortization.

Equity

The Group’s total equity increased from DKK 17,908 million at year-end 2024 to DKK 21,092 million at year-end 2025, due to the positive result from investments and the profit in LEO Pharma.

Cash flow

Total Group cash flow from operating activities was positive at DKK 888 million, compared to DKK 71 million in 2024. This improvement was mainly due to the higher operating result.

Cash flow from investing activities was positive at DKK 1,248 million in 2025, including net

proceeds from M&A-related activities of DKK 935 million, compared to an inflow of DKK 76 million in 2024.

Cash flow from financing activities was an outflow of DKK 2,127 million, mainly caused by repayment of loans, compared to an outflow of DKK 115 million in 2024, when repayment of loans was offset by proceeds from loans.

Outlook

The financial performance of the LEO Group depends on developments in LEO Pharma’s commercial activities as well as the returns generated by the Foundation’s investing activities.

In 2026, the expected revenue growth in LEO Pharma is 8-11% (CER). This includes expected organic growth of 5-8% (CER) and a contribution of 3 percentage points from the consolidation of the prior-year sales level for Spevigo® in the first three quarters of the year. Organic growth is expected to be driven by the ongoing global rollout of Anzupgo® and increased uptake of Spevigo®, particularly in the US.

The adjusted EBITDA margin* is expected to improve to 16-19% in 2026, up from 16% in 2025, driven by sales growth and gross margin expansion, partially offset by commercial investments in support of the global rollout of Anzupgo® and acceleration of Spevigo® as well as increased investments in R&D.

The outlook is subject to risks and uncertainties. Policy initiatives on trade and tariffs together with a range of factors, including the impact of potential BD/M&A activities, changes in the geopolitical and macroeconomic environment, significant demand shifts, price reforms, regulatory changes, and fluctuations in currencies, raw materials and other cost inputs, could significantly alter the outlook.

Based on the financial strength of the LEO Foundation and its ambition of making a strong contribution to research that improves the lives of people living with skin diseases, the Foundation expects a grant level of around DKK 425 million in 2026.

* EBITDA adjusted for transformation and restructuring costs.

Financial highlights – LEO Group

LEO Pharma – progress through strong brands and strategic partnerships

We pave the way for curing skin diseases by supporting LEO Pharma’s development and success as a global leader in medical dermatology, delivering outstanding results.

LEO Pharma's strategy is anchored in three key themes – growth, pipeline and profitability. The next few pages show the progress and future priorities for each of these areas.

GROWTH

In 2025, LEO Pharma’s revenue rose 10% at constant exchange rates (CER), powered by strong dermatology growth of 12% at CER.

where it was approved in July and launched in September. Uptake has been strong, with rapid prescriber growth in the US, reflecting its clinical profile and relevance as the first FDA-approved treatment for moderate-to-severe chronic hand eczema (CHE) in adults.

The LEO Foundation is an engaged owner of LEO Pharma and, guided by our charter, the primary purpose and objective of the Foundation is to ensure the long-term continuation and success of LEO Pharma.

In 2025, LEO Pharma made strong progress on its long-term ambitions, strengthening its market position, advancing the pipeline and supporting a new chapter of sustainable growth.

Adtralza®/Adbry®, now available in 20 countries and LEO Pharma’s largest strategic brand by revenue, was the main driver of revenue growth. Uptake was supported by broader adoption of biologics in atopic dermatitis (AD) and strong physician familiarity, as the product has been available in several markets for more than four years as the first biologic for AD specifically targeting IL-13.

Launched in Germany in 2024, Anzupgo® is now available in 12 markets, including the US,

The addition of Spevigo® to the portfolio marks LEO Pharma’s entry into the rare disease space within dermatology. Following its partnership agreement with Boehringer Ingelheim, LEO Pharma is leveraging its dermatology platform to ensure the availability of Spevigo® at key centers and advance the standard of care for patients.

Across its established dermatology portfolio of more than 20 brands, the company expanded its reach through new brand campaigns, market entries, commercial partnerships and evolving the go-to-market model in countries by leveraging digital solutions.

LEO Pharma at a glance

117+

years of advancing care and improving lives through science and innovation

4,000+

70+

employees in 30 countries markets (31 affiliates & 42 partner markets)

100+

million patients in treatment with LEO Pharma products annually

In 2025, LEO Pharma also partnered with Junshi Biosciences to commercialize the specialty cancer treatment Loqtorzi® (toripalimab) in Europe. Launched first in Germany in January 2026, Loqtorzi® broadens the Critical Care portfolio and complements LEO Pharma’s existing anticoagulation treatments for cancer-associated thrombosis.

Future priorities

A key future priority is to further substantiate and increase awareness of the robust and differentiated clinical profile of Adtralza®/Adbry® in order to support continued growth.

Anzupgo® is positioned to be a key growth driver. As the first pan-Janus kinase (JAK) inhibitor cream for the treatment of CHE, it holds great potential to bring relief to patients with high unmet needs. The immediate focus is to raise awareness, train providers and expand availability in further markets. With its broad pan-JAK inhibition and long-term safety data, Anzupgo® also has potential beyond CHE, and clinical trials in additional indications are already underway.

For Spevigo®, priorities include full integration into the portfolio, accelerating access in key markets such as the US, Japan and China, and advancing development in additional indications in order to support long-term growth.

LEO Pharma will continue to expand the reach of its established brands and optimize the portfolio to ensure relevance and value for

patients and providers, further entrenching these established brands as true backbone therapies for dermatologists and general practitioners worldwide. Furthermore, LEO Pharma aims to sustain and gradually grow its Critical Care business by continuing to advance its portfolio of heparin-based thrombosis therapies and leveraging its access to care sites in order to establish Loqtorzi® as an important new therapy for patients with nasopharyngeal carcinoma (NPC) and esophageal squamous cell carcinoma (ESCC).

PIPELINE

2025 marked accelerated pipeline momentum, with several important assets being advanced for areas of high unmet need.

Delgocitinib (Anzupgo®), already approved for moderate-to-severe CHE, advanced investigation beyond its current indication, with a late-stage program in palmoplantar pustulosis (PPP) launched in June and a Phase 3 trial in lichen sclerosus (LS) initiated in January 2026. Additional positive Phase 3 data in CHE, including DELTA TEEN and DELTA China, strengthened its profile, and data from the DELTA FORCE trial was published in The Lancet

In May, LEO Pharma announced positive topline Phase 2b results for temtokibart in moderateto-severe AD, supporting its potential as a novel mechanism for treating AD.

In June, tralokinumab (Adtralza®/Adbry®) delivered positive interim results in the ADHAND

Phase 3b trial in moderate-to-severe AD affecting the hands, with final 32-week data announced in November, confirming the strong interim results and thus further strengthening safety and efficacy data for tralokinumab in this high-burden area of AD.

Spesolimab (Spevigo®), approved for generalized pustular psoriasis (GPP), progressed its pivotal Phase 3 trial in the serious and rare skin disease pyoderma gangrenosum (PG) as part of the partnership with Boehringer Ingelheim, which grants LEO Pharma global commercialization and development rights.

The pre-clinical STAT6 program, partnered with Gilead Sciences in 2025, represents a potentially transformative approach targeting IL-4/IL-13 signaling. Gilead Sciences is leading the development of the oral program, while LEO Pharma retains the option to opt in for ex-US co-commercialization. LEO Pharma leads the development of and retains full global rights to the topical program. With the formation of the partnership, LEO Pharma received a USD 250 million upfront payment with a total potential deal value of up to USD 1.7 billion, mid-teens royalties, and additional upside through opt-in and topical opportunities.

Future priorities

LEO Pharma’s pipeline is aligned with its strategic priorities, bringing together external innovation and scientific expertise to address underserved dermatology needs.

The near-term focus is on building a strong late-stage pipeline and on actively pursuing opportunities to expand indications, optimize formulations and generate evidence that clearly differentiates the portfolio. Looking ahead, LEO Pharma aims to be the preferred innovation partner in dermatology, identifying complex medical challenges and working with partners to create solutions that improve the standard of care.

PROFITABILITY

In 2025, LEO Pharma delivered a step change in financial performance, reinforcing the foundation for innovation and growth.

The operating profit before depreciation and amortization, excluding non-recurring items (adjusted EBITDA) margin rose to 16%, an improvement of more than 9 percentage points on 2024, driven by higher sales volumes, a favorable product mix and the strong performance of Adtralza®/Adbry® and Anzupgo®, alongside efficiencies from the 2024 restructuring program. This was achieved despite a roughly 2 percentage point impact from the consolidation of development costs related to Spevigo®. Reported EBITDA increased even more, supported by a one-off net payment of DKK 1.7 billion from Gilead Sciences.

Future priorities

In 2026, LEO Pharma will continue to strengthen its financial position through sales growth and accelerated adoption of its high-value, first-inclass innovations. Research and development (R&D) investments will increase to further

accelerate the pipeline, alongside continued investment in the global rollout of Anzupgo® to unlock its full potential in CHE.

FINANCIAL PERFORMANCE

In 2025, LEO Pharma delivered another year of strong sales growth and more than doubled its adjusted EBITDA, supporting a return to positive net profit and free cash flow. The addition of Spevigo® to the portfolio, alongside the ongoing global rollout of Anzupgo®, further strengthened LEO Pharma’s growth potential going into 2026.

Revenue increased by 8% to DKK 13,499 million in 2025. This reflects organic growth of 9% and a 1 percentage point inorganic contribution from the consolidation of revenue from Spevigo® since September 30, 2025, resulting in revenue growth of 10% (CER). Exchange rate developments had a 2 percentage point negative effect on reported revenue growth due to the appreciation of the DKK versus the USD, CAD and CNY, among others.

Revenue by product category

Dermatology

Revenue grew by 10% to DKK 10,991 million in 2025, reflecting growth of 12% at CER, including organic growth of 10% driven by strong performance in the strategic dermatology brands portfolio, in addition to steady growth for the established dermatology brands portfolio. Strategic dermatology brands revenue grew by 48% (CER) in 2025, reflecting organic growth of 40% and an 8 percentage point inorganic contribution from the addition of Spevigo® to the

portfolio in the final quarter of the year. Of the three strategic dermatology brands, Adtralza®/ Adbry® remained the main driver of growth in 2025, led by increased uptake in the US, Japan and several other markets. In addition, Anzupgo® made an increasing contribution to growth over the course of the year, particularly following the launch of the product in the US in September.

Beyond Adtralza®/Adbry®, Anzupgo® and Spevigo®, the established dermatology brands portfolio delivered combined revenue growth of 2% (CER) in 2025. Growth was broad-based, with all three regions contributing, despite continued weak demand in China detracting from overall growth for the year. Within the established dermatology brands portfolio, growth was led by the Fucidin® range, Skinoren® and Protopic®, with several other brands also contributing to growth.

Critical Care

Revenue declined by 1% (CER) compared to 2024, due to a reversal of prior-year sales discounts that had a significant positive impact on reported revenue for Critical Care in 2024. Excluding this discount reversal, which had no impact on reported revenue in 2025, Critical Care revenue grew by 2%, driven by Germany, the UK, Canada and several distributor markets. For 2025, Critical Care revenue was entirely driven by thrombosis products ahead of the launch of Loqtorzi® in January 2026.

Other

Revenue from contract manufacturing of divested products amounted to DKK 228 million,

LEO Pharma performance highlights

Share of revenue based on geography

13,499 Revenue

up from DKK 141 million in 2024, reflecting adjusted contracting terms.

Revenue by region

Geographically, North America was the fastestgrowing region in 2025, with revenue increasing by 35% (CER) compared to 2024. Continued strong growth for Adbry® in the US was the main driver of the regional sales increase in 2025. The addition of Spevigo® to the portfolio on October 1, 2025 and the launch of Anzupgo® in the US and Canada during the second half of 2025 also contributed significantly to the increase. In addition, revenue growth was positively impacted by gross-to-net revenue adjustments related to prior periods.

In Europe revenue increased by 3% (CER), driven by Italy, Poland and Germany. Across the region, revenue growth was driven by Anzupgo® and Adtralza®. The addition of Spevigo® to the portfolio also made a small positive contribution, while revenue in the region for the rest of the portfolio was in line with 2024.

The Rest of World region delivered revenue growth of 9% (CER) in 2025, driven by Japan, Saudi Arabia and Korea, as well as broad-based growth across distributor markets, while China significantly reduced the regional growth rate due to challenging market conditions. Outside of China, regional growth in 2025 was in the double digits, led by strong growth across the established dermatology brands portfolio, along with solid growth for Adtralza® and the Critical Care portfolio.

Costs and profit & loss

Gross profit increased by 10% to DKK 8,240 million in 2025, resulting in a gross margin of 61%, up 1 percentage point on 2024. The margin expansion was driven by increased volumes and a favorable sales mix from the faster growth of the strategic brands portfolio, partially offset by non-recurring items related to the planned closure of a manufacturing line.

In 2025, operating expenses (OPEX) amounted to DKK 7,702 million, excluding other operating income and expenses, representing an 11% reduction on the previous year, driven by restructuring initiatives implemented in 2024. The OPEX cost ratio for 2025 declined to 57%, compared to 70% in 2024, reflecting savings from efficiency initiatives implemented in 2024, the timing of clinical trial activities and increased revenue.

Sales and distribution costs increased by 1% in 2025 to DKK 4,956 million, corresponding to 37% of revenue compared to 40% in 2024. Higher sales drove the improvement in cost efficiency.

R&D costs amounted to DKK 1,396 million in 2025, a reduction of DKK 874 million compared to 2024. The decrease reflected savings from restructuring initiatives implemented in 2024 and the transfer of cost responsibility for the oral STAT6 program to Gilead Sciences. R&D costs in 2025 included impairment charges of DKK 11 million, compared to DKK 209 million in 2024. In addition, R&D costs in 2025 benefited from the timing of clinical trial activities.

Adjusted EBITDA amounted to DKK 2,107 million in 2025, up 135% compared to 2024. This represents a 9 percentage point improvement in the adjusted EBITDA margin, reaching 16% for 2025. The margin improvement was driven by sales growth, an improved gross margin and reduced operating expenses.

Non-recurring items excluded from adjusted EBITDA amounted to an income of DKK 1,644 million in 2025, reflecting the upfront payment received from Gilead Sciences, net of transaction costs and other non-recurring items. In 2024, non-recurring items constituted an expense of DKK 295 million.

Operating profit (EBIT) for 2025 improved by DKK 3,422 million compared to 2024, reaching DKK 2,279 million, including non-recurring items.

Excluding non-recurring items, the underlying operating profit increased by DKK 1,483 million, driven by revenue growth, an improved gross margin and reduced operating expenses resulting from restructuring initiatives implemented in 2024.

Financial items amounted to a net expense of DKK 566 million for 2025, compared to DKK 814 million in 2024. The decrease was mainly due to reduced net interest expenses, driven by lower interest rates and declining net interest-bearing debt. In addition, financial items benefited from gains on currency hedging contracts.

Income tax for 2025 was a net income of DKK 776 million, compared to DKK 181 million in

2024. The tax income was primarily driven by a DKK 1,043 million positive valuation allowance related to the deferred tax asset, which includes the revaluation of the deferred tax asset and other current-year changes in LEO Pharma A/S. The revaluation reflects an increased expectation of taxable income in the coming years.

Financial performance in 2025 was in line with the most recent outlook, which was updated in November following the publication of LEO Pharma’s 9M 2025 results to reflect the consolidation of Spevigo® in the final quarter of the year. Revenue growth of 10% (CER) matched the high end of the most recent outlook of 8-10%. The adjusted EBITDA margin of 16% was in line with the most recent outlook of 15-17%.

Compared to the initial outlook provided in the 2024 Annual Report, which anticipated organic revenue growth of 6-9% and an adjusted EBITDA margin of 15-18%, actual 2025 performance was at the high end of both ranges when excluding revenue and investments related to Spevigo®.

2026 outlook

Revenue growth in 2026 is expected to be 8-11% (CER). Based on current exchange rates versus the Danish krone (at February 12, 2026), revenue growth reported in DKK is expected to be around 2 percentage points lower than at CER. Growth at CER includes expected organic growth of 5-8% (CER) and a contribution of 3 percentage points from the consolidation of

the prior-year sales level for Spevigo® in the first three quarters of the year. Organic growth is expected to be driven by the ongoing global rollout of Anzupgo® and increased uptake of Spevigo®, particularly in the US.

The adjusted EBITDA margin is expected to improve to 16-19% in 2026, up from 16% in 2025, driven by sales growth and gross margin expansion, partially offset by commercial investments in support of the global rollout of Anzupgo® and the acceleration of Spevigo® as well as increased investments in R&D. The outlook for the adjusted EBITDA margin further reflects an adverse impact from currency developments versus 2025.

Excluding non-recurring items, pre-tax profit is expected to grow faster than adjusted EBITDA for the year, reflecting reduced depreciation and amortization expenses and lower net interest expenses. Reported net profit is expected to be positive for the year. Free cash flow (excluding M&A) is expected to exceed DKK 1 billion in 2026, with improved cash flow from operating activities. LEO Pharma is closely monitoring risks and uncertainties that could potentially impact the outlook, including policy initiatives in relation to trade and tariffs. All US tariffs currently in effect are reflected in the outlook.

The above outlook is subject to these and other risks and uncertainties. Additional factors that could significantly alter the outlook include, but are not limited to, the impact of potential

BD/M&A activities, changes in the geopolitical and macroeconomic environment, significant demand shifts and/or price reforms in key markets such as the US and China, regulatory changes or delays, supply disruptions, and fluctuations in currencies, raw materials and other input costs.

For further information about the LEO Pharma Group, please refer to LEO Pharma’s Annual Report Click here

Investment activities – disciplined diversification, resilient performance

We pave the way for curing skin diseases by generating attractive investment returns that enable us to ensure LEO Pharma’s long-term continuation and strategic development, as well as provide a growing basis for our philanthropic grants.

The LEO Foundation’s financial investments form the basis of our long-term stability and strength. With DKK 18.8 billion in financial assets, we pursue a long-term investment strategy, managing a diversified global portfolio to generate attractive returns while carefully balancing risks.

Financial markets in 2025 were influenced more by political developments than by economic data. Global economic growth remained solid, supported in Europe by fiscal stimulus and spending commitments. Inflation continued to ease in Europe, while remaining elevated

in the US. A defining event of the year was the introduction of US tariffs on "Liberation Day" in early April, which triggered significant volatility and uncertainty regarding the outlook for growth and inflation. As trade negotiations progressed and agreements were reached, uncertainty gradually subsided, supporting a recovery in equity markets. Artificial intelligence (AI) was the dominant theme in US equities, with technology and AI-related stocks attracting significant capital flows and delivering substantial gains. In Europe, defense stocks performed strongly following government decisions to increase military spending.

Global equity markets experienced considerable volatility during the year. After a stable start, concerns about the sustainability of AI and the impact of "Liberation Day" led to a sharp market decline. This proved to be the low point of the year, and equity markets generally trended upward for the remainder of 2025. Regional performance varied significantly: US equities gained 16%, European equities 21% and Emerging Markets equities more than 30%. Adjusted for nearly 12% depreciation of the US

dollar, returns on US and Emerging Markets equities were more modest, at 3% and 15% respectively. Danish equities delivered a return above 7%, outperforming Developed Markets equities measured in Danish kroner.

Fixed-income markets were less volatile than in previous years, with yields moving within narrower ranges. US two-year yields declined by approximately 0.7 percentage points over the year, driven by Federal Reserve rate cuts and expectations of further easing in 2026. German two-year yields remained stable at around 2%, in line with the ECB’s policy rate, which is not expected to change in 2026. 10year yields declined by 0.4 percentage points in the US, reflecting lower short-term rates, while German 10-year yields increased by close to 0.5 percentage points, driven by fiscal stimulus related to Europe’s rearmament.

Solid returns on the investment portfolio

The LEO Foundation’s investment portfolio benefited from favorable market conditions and delivered a solid return of DKK 1,051 million, corresponding to 5.9%. All asset classes

– equities, credit, government and mortgage bonds, alternatives and overlay strategies –contributed positively.

Equities contributed DKK 522 million, achieving an asset class return of 6.3%. Returns across individual mandates varied widely, ranging from 1.4% to 18.1%, highlighting the importance of diversification in managing risk and optimizing performance.

Government and mortgage bonds generated a return of 2.1%, adding DKK 23 million, while credit investments delivered DKK 91 million, corresponding to a return of 4.9%. Overlay strategies added DKK 194 million.

Alternatives contributed DKK 221 million, with a return of 3.4%. Returns were significantly negatively impacted by the depreciation of the US dollar, while fixed-income hedge funds were

Investment portfolio

a strong positive contributor, delivering returns of close to 15%.

The depreciation of the US dollar is estimated to have reduced the total return on the investment portfolio by approximately DKK 685 million.

Investment portfolio highlights

During the year, the portfolio was further strengthened through increased exposure to illiquid alternative investments, in line with the Foundation’s strategic plan. This included five new commitments to private equity funds and one commitment to a European real estate fund, as well as the rollover of a hedge fund investment into a successor fund. In total, new commitments amounted to DKK 2.4 billion.

While the deployment of capital to alternative investments progressed broadly as planned, the share of alternatives in the portfolio increased by slightly less than expected, primarily due to stronger returns in other asset classes. Overall, the allocation to illiquid alternatives increased by DKK 554 million, corresponding to an increase of 2.3 percentage points of the financial portfolio.

Within publicly listed assets, exposure to government and mortgage bonds was reduced by DKK 100 million. An investment grade credit mandate of DKK 400 million and an emerging markets hard currency debt mandate of DKK 680 million were terminated, and one fixedincome hedge fund investment was rolled over into a successor fund.

Significant portfolio adjustments during 2025 included a total buy of DKK 549 million in Developed Markets equities and a total sell of DKK 498 million. In addition, interest rate risk was adjusted during the first quarter of the year using fixed-income futures.

At year-end 2025, the portfolio was well balanced, with 50% allocated to equities, 38% to alternatives, 7% to credit, and 6% to government and mortgage bonds.

Outlook

In 2026, the portfolio will be further enhanced through additional investments in alternative

assets, to support returns and strengthen diversification. Expansion into illiquid alternatives is expected to be slightly lower than in 2025, with a primary focus on partnering with existing managers as they raise new funds. The portfolio’s overall risk level is expected to remain stable, maintaining a balanced approach to growth and capital preservation.

The portfolio’s risk and liquidity profile will continue to provide the LEO Foundation with the financial strength to support LEO Pharma’s long-term continuation and strategic development, while also providing a growing basis for our philanthropic grant activities.

Asset allocation of the investment portfolio at 31.12.2025

Philanthropic activities – a year of growth and a new grant strategy

We pave the way for curing skin diseases by supporting outstanding research that pioneers new discoveries and transforms our understanding of the skin and its diseases.

At the LEO Foundation, we support independent skin research of the highest scientific quality that can pioneer discoveries and transform our understanding of the skin and its diseases. We also provide grants for science education and awareness activities to help strengthen the talent base for the next generation of researchers and to support science communication to the public.

In 2025, we awarded a total of DKK 361 million across 105 grants, based on 440 processed applications. Compared to 2024, this represents a 31% increase in total funding and 40% more grants alongside a substantial rise in application volume, reflecting the continued growth of our philanthropic activities. Demand for our open competition Research Grants program increased markedly, with a record 310 applications undergoing peer review.

The 2025 grant portfolio combined open competition funding for skin research excellence with broader ecosystem support, including talent development, knowledge exchange, and science education and awareness, alongside strategic standalone initiatives. These included DKK 60 million to continue BIOSKIN, the Copenhagen Translational Skin Immunology Biobank and Research Program at Herlev and Gentofte Hospital; DKK 12 million to launch the center initiative Dermatology Research Across Multiple Disciplines (DREAM) at the Faculty of Health, Aarhus University; and DKK 10 million to establish Innovation District Copenhagen Association, of which the LEO Foundation is a founding member alongside representatives from the state, municipalities, research institutions, the healthcare sector, business and finance, foundations and other innovation stakeholders.

A new grant strategy

2025 marked the final year of the Foundation’s current grant strategy. Over the past five years, the focus has been on building and consolidating a coherent portfolio of grant instruments supporting skin researchers across career stages, disciplines and geographies. On this basis, and reflecting our long-standing commitment to research into the skin and skin diseases, we developed and launched a new grant strategy in 2025. Grant Strategy 2030 sets the direction for our philanthropic efforts for the next five years.

The new grant strategy broadens the scope of our philanthropic activities and introduces five strategic tracks – Excellence, Nurture, Collaboration, Pioneering and Innovation – which will guide future funding. Together, they aim to advance scientific excellence, support areas of unmet need and research talents worldwide, foster collaboration across disciplines, enable bold frontier research and support research at different stages on the pathway toward impacting patients’ lives. Across the five tracks, future funding will both build on our existing core portfolio and introduce new funding approaches over time.

Grant Strategy 2030: five strategic tracks

With this grant strategy, the aim is to increase annual philanthropic funding to more than DKK 500 million by 2030 – driving progress toward better understanding, treatments and, ultimately, cures for skin diseases.

Impact assessment and evaluation

We are continuing to track the impact of our philanthropic activities, not only within skin research but also for society at large. This requires comparable data and systematic monitoring over time. Grantees therefore report annually through two online tools, Researchfish and

Foundgood, which capture quantitative and qualitative information on progress, outputs and selected outcomes. We use this reporting in our ongoing dialogue with grantees and to inform the continuous development of our funding programs.

This monitoring provides an expanding knowledge base across our grant portfolio. Since 2020, more than 480 researchers have been fully or partially funded through LEO Foundation grants, and since 2016, more than 1,200 publications have been reported from supported research. These publications are

cited more than twice the average rate within their respective fields.

Over time, our impact data also indicates broader developments across the skin research ecosystem we support. Funded projects have attracted substantial external co-funding, and a large share of researchers supported through our grants remain in research when they move on. In addition, a number of publications have been incorporated into policy or guideline documents and cited in patents, illustrating pathways from research outputs to use beyond academia.

We continuously refine our approach to monitoring short-, medium- and long-term value creation. In 2025, we strengthened our reporting to the Board by introducing a first impact report with data covering the period until 2025.

Outlook

Excellence Nurture Collaboration Pioneering Innovation

The Excellence track provides competition-based funding for the best national and international skin-related research projects proposed by outstanding researchers at all career stages.

The Nurture track supports skin research in areas of unmet need – across both geographies and skin disease types – as well as projects enabling researchers' meetings and projects developing science education and dissemination.

The Collaboration track supports ambitious, crossdisciplinary research, bringing together leading researchers to address complex research challenges.

The Pioneering track supports bold, high-risk research that explores new frontiers in science and technology relevant to the skin and its diseases.

The Innovation track supports the translation of discoveries in skin research into practical applications by funding early-stage projects with the potential to bridge the gap between academia and commercial implementation of new knowledge.

From 2026 onward, Grant Strategy 2030 will allow us to broaden both the thematic and geographic reach of our funding. While continuing established programs, we will adapt application and administrative processes and gradually introduce new funding instruments across the five strategic tracks.

For 2026, we expect grant funding of approximately DKK 425 million, reflecting our continued commitment to supporting outstanding research that pioneers new discoveries and transforms our understanding of the skin and its diseases.

Showcasing 2025 philanthropic activities

In 2025, the LEO Foundation supported a wide range of philanthropic activities – from cutting-edge skin research to projects that engage children with science. The following examples illustrate the breadth of our grant portfolio and its contribution to the skin research ecosystem.

EDUCATION AND AWARENESS

When science becomes music

Mininaut Music turns science into songs for children aged 3-6. Eight original songs explore topics such as the human body, nature and materials, helping children make sense of the world around them. Through music and storytelling, the project aims to spark curiosity and support early science education.

The project is developed by Radionauterne and supported by an Education and Awareness Grant of DKK 206,500 (EUR 27,600).

RESEARCH GRANT

Solutions to treatment dosing

Senior Lecturer Oisín Kavanagh at Newcastle University, UK, received a Research Grant of DKK 1.3 million (EUR 173,000) for the project A 3D-Printed Solution to the Fingertip Unit Problem.

The project involves developing a simple 3D-printed nozzle that fits standard cream tubes. It helps patients apply the right amount of medicine, which is critical for potent treatments and longterm use. This will make dosing easier and more accurate – especially for small areas of skin and for children.

Dr Abildgaard Fellows to establish their own skin research groups

Four researchers were awarded a Dr Abildgaard Fellowship in 2025. Each fellowship amounts to DKK 12 million over five years. The program provides fellows with a significant career boost, enabling them to establish and lead an independent skin research group at a leading Danish institution and to develop as research leaders.

Ann-Marie Schoos

MD, PhD, Research Associate Professor, COPSAC, Copenhagen University Hospital, Herlev-Gentofte

“My ultimate goal is to prevent that anyone gets it."

Xiang Zheng

MSc, PhD, Assistant Professor, Aarhus University

“A technology fulfils its potential when it makes a difference for patients.”

Sigrún Schmidt

MD, PhD, Researcher and Resident Physician, Aarhus University and Aarhus University Hospital

“We need to consider the overall quality of the patient experience.”

Hans Christian Ring MD, PhD, Senior Registrar, Zealand University Hospital, Roskilde

“We can't treat a skin disease properly until we have the right language for it.”

Read the portrait features of each Dr Abildgaard Fellow

Click here

Pediatrician Ann-Marie Schoos studies atopic dermatitis, with a focus on early prevention. The Dr Abildgaard Fellowship enables her to combine data from patient cohorts to examine multiple contributing factors simultaneously – moving beyond earlier studies that typically focused on single factors – to better understand what may impede or prevent the mechanisms that drive the disease.

Xiang Zheng has pioneered a new imaging technology, mipDVP, which measures protein expression in specific cell types and maps how cells relate to each other. As a Dr Abildgaard Fellow, he studies the skin’s protein landscape and its role in skin cancer and chronic inflammation, with the potential to support more tailored treatments.

Physician Sigrún Schmidt is on a mission to improve the healthcare journey of patients with chronic skin diseases. As a Dr Abildgaard Fellow, she will explore statistical patterns in bullous pemphigoid and lichen planus across multiple data registries to better understand their prevalence, triggers and long-term impact –ultimately improving the diagnosis and management of these severe diseases.

Dermatologist Hans Christian Ring treats a large number of patients with hidradenitis suppurativa. As a Dr Abildgaard Fellow, he will focus on understanding the complex interplay between bacteria and the immune system in triggering the disease, with the aim of enabling earlier diagnosis. He will also investigate how current standard treatments – focused on the immune system – affect this interplay and whether a novel bacteria-based (probiotic) treatment may provide a better option for patients.

Governance

The LEO Foundation operates a transparent governance model with clearly defined roles and responsibilities.

Board of Trustees

The LEO Foundation is governed by a Board of Trustees in collaboration with the management team. The Board of Trustees consists of 11 members. Seven members are appointed in accordance with the Foundation’s charter, while four are elected by LEO Group employees in accordance with applicable laws.

As an engaged owner of LEO Pharma and one of Denmark’s largest enterprise foundations with substantial philanthropic activities and significant financial investments, the LEO Foundation has considerable impact in Denmark and internationally. Consequently, we have an important obligation and responsibility to operate transparently and with high integrity.

Governance recommendations

The LEO Foundation is committed to being transparent and responsible in all our actions, and we fully support and comply with all the recommendations on foundation governance issued by the Danish Committee on Foundation Governance.

The composition of the Board reflects the qualifications and skills necessary for the LEO Foundation to fulfill the objectives specified in our charter.

The members of the LEO Foundation’s Board of Trustees also make up the Board of Directors of LEO Holding A/S.

Matters related to overall strategies and the LEO Foundation’s grant activities are handled by the Board of Trustees of the LEO Foundation, while matters related to investments and our engaged ownership of LEO Pharma are handled by the Board of Directors of LEO Holding A/S. Both boards meet at least four times a year and, in addition, hold an annual seminar to discuss and review strategies.

Good governance – key policies and positions

• LEO Foundation Code of Conduct

• Compliance with Danish Recommendations on Foundation Governance

• Principles for Engaged Ownership

• ESG policy

• Investment policy

• Tax principles

• Tax Code of Conduct

• Conflict of Interest policy

• Diversity, Equity & Inclusion policy

• Whistleblower Scheme

• IT policy

• Privacy & Cookie policy

• Data Ethics policy

• Communication policy

• Employee Handbook

For a full overview of the LEO Foundation’s compliance with the Recommendations on Foundation Governance, cf. section 77a of the Financial Statements Act, please visit leo-foundation.org/ governancerecommendations

Governance structure

The Board has set up two permanent board committees: a Grant Committee (as part of the LEO Foundation) and an Investment Committee (as part of LEO Holding A/S). Both committees meet regularly. In addition, ad hoc committees are established when deemed relevant, to handle specific matters. For example, a Strategic Ownership Committee has been established to assist the Board in managing the ownership of LEO Pharma.

Grant governance

The LEO Foundation has established working procedures as well as evaluation, approval and decision-making processes based on accepted international standards, to ensure that all grant applications are thoroughly reviewed.

The Grant Committee supervises all grant and award activities and advises the Board on relevant matters, including grant strategies and policies. The Grant Committee also ensures that all grant and award applications undergo rigorous assessment, to verify alignment with the LEO Foundation’s philanthropic objectives. This includes evaluation by standing panels of external experts from research institutions around the world who assess the scientific topic, the proposed research and the applicant’s qualifications, among other things.

The Scientific Evaluation Committee, an international panel of independent experts, reviews applications for research grants in open competition. In addition, international expert

panels assess nominees for the LEO Foundation Awards as well as applications for the LEO Foundation Dr Abildgaard Fellowships, the Serendipity Grants and selected standalone grants.

All committee and panel members must be impartial and comply with the LEO Foundation’s Conflict of Interest policy.

The Board makes the final decision on all grants and awards, based on recommendations from the external review panels and the Grant Committee.

The principles of research freedom and independence underpin all parts of our grant strategy, as does the expectation that results and insights from Foundation-funded projects should be shared with as many people as possible. Researchers have full publishing freedom, and research results based on Foundation funding belong to the researchers and their research institutions.

Investment governance

The Investment Committee advises the Board on matters relating to investments and asset management. It prepares and recommends investment strategies and policies to the Board and ensures their implementation in cooperation with the management team.

The Investment Committee also monitors and reviews relevant internal controls, risk management and governance models. The Board maintains overall responsibility for the investments.

Engaged ownership of LEO Pharma

The LEO Foundation’s main objective is to ensure the long-term continuation and success of LEO Pharma. As the controlling shareholder of LEO Pharma, we exercise engaged ownership by electing highly qualified professionals to the Board of Directors of LEO Pharma and by means of regular interaction with the company’s chairmanship, Executive Management and minority co-shareholder Nordic Capital.

LEO Pharma issues monthly reports on the progress and performance of the business, followed by ad hoc status meetings with shareholders. In addition, an annual Capital Markets Day is held at which strategic progress is reviewed and discussed.

The LEO Foundation holds two seats on the company’s Board of Directors with direct representation. These seats are held by the LEO Foundation's CEO and a Foundation board member.

For more information about LEO Pharma’s governance, please refer to LEO Pharma's Annual Report Click here

Principles for engaged ownership

The LEO Foundation’s ownership of LEO Pharma is based on three main principles. Building on these principles, we focus on strong governance, strategic ambition and sustainable value creation.

Dedicated

As controlling shareholder, we take a long-term strategic view of the business and are strongly committed to ensuring the successful development of LEO Pharma.

• We facilitate and contribute to constructive shareholder interactions, to ensure alignment on the long-term strategic direction of the company.

• We assess, challenge and support the company’s strategic development and performance.

Ambitious

We set the bar high and support LEO Pharma in reaching its full potential and advancing standards of care for patients around the world.

• We encourage the company to be at the forefront of scientific discovery and drive continuous innovation.

• We work to ensure a strong focus on competitive operations and financial performance.

Responsible

We want to make a sustained difference, and consider sustainability and integrity prerequisites for LEO Pharma’s long-term success.

• We uphold and protect the company’s fundamental values and promote a culture of integrity and positive corporate behavior.

• We work to promote responsible business practices throughout the company.

Engaged ownership – governance journey

The LEO Foundation was established by Knud Abildgaard, who, together with his wife, Gertrud Abildgaard, owned Denmark’s largest pharmaceutical manufacturer, Løvens kemiske Fabrik. He wanted to ensure the continuation of his life's work and the company we know today as LEO Pharma by transferring controlling ownership to an enterprise foundation. These plans crystallized in 1984, when Knud and Gertrud Abildgaard established the LEO Foundation and donated their shares in LEO Pharma to the Foundation. Following their passing in 1986, the Foundation became the sole owner of the company.

For many years after taking over ownership, the LEO Foundation led a relatively quiet existence, governed by its Board without an executive management team or employees. Over the years, the Foundation has undergone significant development, with a focus on strengthening the engaged ownership of LEO Pharma – built on strong governance, strategic ambition and sustainable value creation.

Engaged ownership 1.0

New governance model, capital structure and reporting model

A key aspect was a thorough update of the governance model in 2017, which included establishing a separate chairmanship for the Foundation’s Board of Trustees – a role that had previously overlapped with the chairmanship of LEO Pharma’s Board of Directors. In addition, the Foundation strengthened its engaged ownership of the company by implementing a new engagement and reporting model, fully aligned with the Recommendations on Foundation Governance, and with a clear focus on pursuing competitive strategic and financial performance. An independent management team and organization were appointed to handle and professionalize the Foundation’s charter-defined tasks.

Engaged ownership 2.0

New ownership structure and partnership with co-shareholder

Following the establishment of the new governance model, the Foundation’s Board carefully considered whether sole ownership of LEO Pharma remained the optimal long-term ownership structure to support LEO Pharma’s journey toward global leadership in medical dermatology. In 2021, the Board decided to adjust the ownership structure to create a stronger balance between the Foundation’s long-term perspective and the shorter-term focus of independent investors, while also fueling growth and enhancing funding flexibility to support LEO Pharma’s ambitions. This led to welcoming Nordic Capital, a leading global healthcare private equity investor, as minority co-shareholder and strategic partner. Combined with the LEO Foundation’s continued controlling ownership of LEO Pharma, the partnership with Nordic Capital ensures that the company has a very strong platform for achieving its ambitions.

Engaged ownership 3.0

Ensuring a thriving LEO Pharma through foundation ownership and a targeted public listing

The ownership model will continue to evolve, to provide the best possible platform for LEO Pharma’s long-term development, growth and value creation. As part of this evolution, the targeted public listing of LEO Pharma is considered a natural and attractive next step –one that will unlock new potential and enhance LEO Pharma’s ability to advance standards of care for millions of people with skin diseases. With the LEO Foundation as continuing controlling shareholder, this model brings together the Foundation’s long-term stability and strategic ambition with the capital market’s financial flexibility and dynamic attention.

Regardless of the future ownership structure, the Foundation will always remain the controlling shareholder of LEO Pharma with at least 50% of the voting rights, and it will continue to play an active role in realizing LEO Pharma’s potential. Guided by three ownership principles –dedication, ambition and responsibility – we will focus on strong governance, strategic ambition and sustainable value creation.

Board of Trustees

Chair

Born 1965 / M

Doctor of Medicine, MBA

Elected in 2015 (re-elected 2025, end of term 2027)

Background

• Executive Vice President, Global Sales & Marketing, LEO Pharma

• Executive Vice President, Research & Development, LEO Pharma

Additional positions

• Chair of the Board and member of the Investment Committee, LEO Holding A/S

Appointed by authorities: No

Considered independent: No

Competencies

Pharma, general management, R&D, sales and marketing

Eivind Kolding

Vice Chair

Born 1959 / M

Master of Law, Advanced Management Program

Elected in 2017 (re-elected 2025, end of term 2027)

Background

• CEO, Novo A/S

• CEO, Danske Bank A/S

• Group CFO, later CEO, A.P. Møller

– Mærsk A/S

• Lawyer, Bornstein & Grønborg

Additional positions

• Vice Chair of the Board and member of the Investment Committee, LEO Holding A/S

• Chair of the boards of DAFA Group A/S, Danish Ship Finance, Frankly A/S, Kunstforeningen Gammel Strand, MFT Energy A/S, NTG Nordic Transport Group A/S

• Member of the boards of NNIT A/S (Vice Chair), Altor Fund Manager AB, Erhvervslivets Tænketank (Advisory Board)

Appointed by authorities: No

Considered independent: Yes

Competencies

General management, finance, law

Allan Carsten Dahl

Employee-elected board member

Born 1967 / M

Principal Professional, LEO Pharma, Master of Science (Chemistry), PhD

Elected in 2015 (re-elected 2022, end of term 2026)

Background

• Development Chemist, PharmaZell Denmark A/S

• Development Chemist, GEA Pharmaceutical A/S

• Development Chemist, H. Lundbeck A/S

• Research and Development Chemist, Niels Clauson-Kaas A/S

Additional positions

• Employee-elected member of the Board, LEO Holding A/S

Appointed by authorities: No

Considered independent: No

Employee-elected

Elected by the employees of LEO Group

Board member

Born 1967 / F

Professor, DTU Health Technology; Director, IDUN – a DNRF/VKR Center of Excellence; Master of Science (Physics); PhD; Executive Program

Elected in 2019 (re-elected 2025, end of term 2027)

Background

• Director, IDUN – a DNRF/VKR Center of Excellence

• Development Engineer, Cantion A/S

• Associate Professor, DTU

Additional positions

• Member of the Board, LEO Holding A/S

• Member of the Grant Committee, LEO Foundation

• Member of the Board of Heliac

• Chair of the Working Group for Technical and Natural Science, Villum Foundation

• Member of the Royal Danish Academy of Sciences and Letters

Appointed by authorities: No

Considered independent: Yes

Competencies

Research, general management, innovation, fundraising

Board member

Born 1954 / F

Master of Science (Business)

Elected in 2016 (re-elected 2025, end of term 2027)

Background

• CEO, Unipension A/S

• CEO, Nordea Invest A/S

• CEO, Nordea Liv og Pension A/S

• Secretary General, Social Liberal Party

• CEO, TV2/Danmark A/S

• CEO, Louisiana Museum of Modern Art

• CFO, ISS Scandinavia A/S Additional positions

• Member of the Board and Chair of the Investment Committee, LEO Holding A/S

• Member of the boards of C.L. Davids Fond, OK-Fonden (Vice Chair)

Appointed by authorities: No

Considered independent: Yes Competencies

General and change management, investment and asset management, financial risk management

Franck Maréno

Employee-elected board member

Born 1977 / M

Team Leader Fermentation and Heparinase, LEO Pharma, AP Graduate Laboratory and Biotechnology “Technonome”

Elected in 2021 (re-elected 2022, end of term 2026)

Background

• Principal Technician, LEO Pharma New Fucidin API Production

• Operator, Ferring Pharmaceuticals

• Union Representative, Ferring Pharmaceuticals

• Technician, Cederroth Paramedical

• Technician, LEO Pharma Fucidin

API Purification

Additional positions

• Employee-elected member of the boards of LEO Holding A/S, LEO Pharma

Appointed by authorities: No

Considered independent: No

Employee-elected

Elected by the employees of LEO Group

Jannie Kogsbøll

Employee-elected board member

Born 1962 / F

Operator, LEO Pharma, Higher Commercial Examination

Elected in 1998 (re-elected 2022, end of term 2026)

Background

• F Group A/S (Fona)

Additional positions

• Employee-elected member of the boards of LEO Holding A/S, LEO Pharma

Appointed by authorities: No

Considered independent: No

Employee-elected

Elected by the employees of LEO Group

Board member

Born 1961 / F

Chief Medical Officer, Senior Vice President, Global Patient Safety, H. Lundbeck A/S, Doctor of Medicine

Elected in 2019 (re-elected 2025, end of term 2027)

Background

• Vice President, Medical Affairs & Clinical Development Centers, H. Lundbeck A/S

• Vice President, Clinical Study Execution, H. Lundbeck A/S

• Executive Vice President, CMO, Lifecycle Pharma (now Veloxis), Hørsholm, Denmark & New York City, US

• Vice President, Development, LEO Pharma

• Director, R&D Project Management, LEO Pharma

Additional positions

• Member of the Board, LEO Holding A/S

• Member of the Grant Committee, LEO Foundation

• Chair, Main Consortium, Business Lighthouse Mental Health

Appointed by authorities: No

Considered independent: Yes Competencies

Strategic R&D management

Board member

Born 1967 / M

Master of Science (Business), PED, IMD

Elected in 2020 (re-elected 2025, end of term 2027)

Background

• CFO and Executive Vice President, Novozymes A/S

• Executive Vice President, Business Services & Compliance, Novo Nordisk A/S

• Senior Vice President, Finance and Operations, Novo Nordisk Inc., NJ, US

• Senior Vice President, Corporate Finance, Novo Nordisk A/S

• Director of Finance & IT, Novo Nordisk Pharma Ltd., Tokyo, Japan

Additional positions

• Member of the Board, LEO Holding A/S

• Member of the Board and Chair of the Audit Committee, LEO Pharma

• Chair, Novo Holdings A/S

• Member of the boards of Novo Nordisk Foundation, H. Lundbeck A/S (Chair of the Audit Committee), the Danish Committee on Corporate Governance, Nordic Storm A/S, Pharmacosmos A/S

Appointed by authorities: No

Considered independent: Yes Competencies

Pharma, finance, general management, corporate governance

Lotte Hjortshøj

Employee-elected board member

Born 1971 / F

Executive Assistant, LEO Pharma, Diploma Graduate

Elected in 2018 (re-elected 2022, end of term 2026)

Background

• Personal Assistant, LEO Pharma

• Head of HR Administration, LEO Pharma

• HR Coordinator, LEO Pharma

• Project Manager, LEO Pharma

Additional positions

• Employee-elected member of the Board, LEO Holding A/S

Appointed by authorities: No

Considered independent: No

Employee-elected

Elected by the employees of LEO Group

Peter Schwarz

Board member

Born 1959 / M

Professor-in-chair, Medical Doctor, Doctor of Medical Science (Dr.med.); Specialist in Endocrinology, Medicine and Clinical Biochemistry; Head of Research, Department of Endocrinology, Rigshospitalet

Elected in 2017 (re-elected 2025, end of term 2027) Background

• Research Fellow, Harvard Medical School

• Head of Department, Hvidovre Hospital

• Professor, Rigshospitalet-Glostrup Hospital Additional positions

• Member of the Board, LEO Holding A/S

• Chair of the Grant Committee, LEO Foundation

Appointed by authorities: No

Considered independent: Yes

Competencies

Basic and clinical research, general management, fundraising

Foundation staff

The LEO Foundation organization comprises a dedicated team of highly competent specialists.

Eva Bang-Hansen Scientific Management Assistant

Pernille Mørch-Sørensen Executive Assistant

Eva Benfeldt Senior Scientific Officer

Peter Kjeldsen Hansen Vice President, Head of Strategic Ownership and Business Development

Peter Haahr CEO

Lars Kruse Senior Scientific Officer

Signe Krabek Senior Director, Head of Communication and Public Affairs

Anne-Marie Engel Chief Scientific Officer

Lars Thørs Senior Investment Director

Signe Rømer Holm Scientific Officer

Anton Kieler Saietz Principal

Line Elkjær Christiansen Junior Analyst

Stine Wolf Larsen Finance Director

S. Christensen Chief Investment Officer

LEO Historical Archives and Museum

The old porter’s building at LEO Pharma’s headquarters is home to the LEO Historical Archives and Museum, which is run by the LEO Foundation. The LEO Museum gives LEO employees and stakeholders alike the opportunity to delve into the history of LEO Pharma – from the back rooms of the original “Løveapoteket” pharmacy (Lion Pharmacy) in central Copenhagen, to the present day and LEO Pharma’s latest endeavors.

Sustainability

We also pave the way for curing skin diseases by driving and promoting sustainable and responsible business practices across our operations.

medicines to more than 100 million people in over 70 countries. With 18.8 billion in financial assets, we aim to generate attractive investment returns to ensure the Foundation’s long-term stability and strength.

Improving health

Sustainability is a cross-cutting priority embedded in the LEO Foundation’s purpose, strategy and activities. Guided by our 2030 ambitions, we are committed to driving and promoting sustainable and responsible practices through our business model as an enterprise foundation, combining business ownership, philanthropic activities and financial investments.

Our most significant contribution to and positive impact on society and sustainable development lies in improving the health and lives of people living with skin diseases – from catalyzing early scientific discoveries through DKK 361 million in philanthropic grants to the skin research ecosystem in 2025, through to our long-term ownership of LEO Pharma, bringing

In addition to the impact created through our core activities, we contribute to sustainable development by taking responsibility for environmental, social and governance (ESG) practices, with a focus on good governance, diversity and inclusion, and supporting climate transition.

For more information on how the LEO Foundation works to create impact within key sustainability themes, please refer to the LEO Foundation’s website Click here

This section is the LEO Foundation’s statutory statement on sustainability in accordance with sections 99a and 99d of the Danish Financial Statements Act.

The section consolidates corporate social responsibility (CSR) and environmental, social and governance (ESG) activities, risks and policies for the LEO Group.

For detailed information on LEO Pharma’s sustainability statement, please refer to the company’s Annual Report and website, which outline company-specific policies, activities and results for 2025.

Managing ESG risks and responsibilities

Our sustainability work is anchored in the LEO Foundation’s Code of Conduct, which establishes 10 guiding principles for responsible conduct across all aspects of the Foundation’s consolidated entities, operations and activities. The Code is built on our values of integrity, dedication and ambition, and it covers key areas, including human and labor rights, environmental and climate responsibility, anticorruption and bribery prevention, and social and employee welfare.

The Board endorses the Foundation’s sustainability approach, priorities and policies. The CEO holds overall responsibility for sustainability, supported by the management team, which oversees implementation and monitors progress.

In the following pages, we report on responsibilities, risks and mitigations, with a primary focus on areas within the LEO Foundation’s direct control. At a consolidated level, key ESG risks are closely linked to our ownership of LEO Pharma and the company’s global operations. These are reflected broadly in this section, while further details are available in LEO Pharma’s Annual Report and sustainability statement.

In our own activities, ESG risks related to investment activities are managed through the Foundation’s ESG policy. Since adopting this policy in 2018, we have integrated the principles of the UN Global Compact into our investment strategy, focusing on human rights, labor standards, environmental responsibility and anti-corruption. Capital is allocated through external index funds and manager mandates, with managers required to align with our ESG policy and engage in material ESG issues. ESG screening covers the public equity portfolio and is expanded to cover selected areas within corporate credit. For our operations and philanthropic activities, ESG risks are addressed through the Code of Conduct and relevant policies governing responsible conduct.

For an overview of key policies and positions, please refer to the Governance section of this Annual Report and the Foundation’s website

Click here

ENVIRONMENT

Climate and environmental responsibility are key priorities across the LEO Group, particularly within the Foundation’s financial investments and LEO Pharma's global operations. We integrate climate considerations into decision-making and continue to strengthen a data-driven understanding of our carbon footprint to manage risks, reduce impacts and support our long-term ambitions.

Negative impact and risk Mitigation 2025 outcomes Future plans

• Negative environmental impact from the Foundation’s financial investments and operations, and from LEO Pharma’s global operations.

• Failure to comply with environmental and climaterelated regulations.

• Code of Conduct setting expectations for environmental compliance and reduce–reuse–recycle practices.

• CO₂e baseline and annual measurement of the Foundation’s emissions.

• Alignment of passive listed equities on developed and emerging markets with the EU Climate Transition Benchmark.

• Passive listed equities are broadly ESG-screened.

• Operational footprint addressed through sustainable procurement and workplace practices.

• LEO Pharma has committed to become net-zero by 2050, in line with the Science Based Targets initiative (SBTi), which supports limiting global warming to 1.5°C.

• The Foundation completed its second comprehensive assessment of CO₂e emissions across own operations (Scope 1 and 2) and the value chain (Scope 3).

• LEO Pharma developed a netzero climate transition plan toward 2035.

• LEO Pharma's own carbon emissions (Scope 1 and 2) were reduced by 44% vs. the 2019 baseline and by 2% compared to 2024. Total GHG emissions, including Scope 3, declined by 7%.

• Increased focus on waste sorting at the Foundation office.

• Continue annual CO₂e measurement and monitoring.

• Investigate key decarbonization levers to reduce overall carbon footprint.

• LEO Pharma works to reduce its environmental impact through resource efficiency and ongoing energy performance improvements following a roadmap of decarbonization levers developed.

GHG emissions

Building on the LEO Foundation’s greenhouse gas (GHG) baseline developed in 2024, 2025 marked the second year in which the Foundation completed a comprehensive assessment of emissions across own operations (Scope 1 and 2) and the value chain (Scope 3). Total emissions were slightly lower in 2025 compared to 2024, primarily driven by lower business travel activities.

As a small, office-based organization with limited direct operations, the Foundation’s Scope 1 and 2 emissions remain low, with the majority of emissions arising from activities in the value chain (Scope 3).

In the context of the LEO Group’s total emissions, including LEO Pharma, the Foundation's emissions account for approximately 0.1%.

Emissions from investments (scope 3.15) are monitored and reported as an integral part of the investment process, ensuring climate considerations are embedded, including alignment with the ESG policy.

NOTE: LEO Foundation’s CO2e calculations follow the GHG Protocol (2015). Scope 1 and 2 emissions are calculated using an activity-based method, based on actual data for company vehicles and energy consumption. Scope 3 category emissions are mainly estimated using a spendbased approach, based on the 2025 balance sheet. Scope 3.7 (employee commuting) is calculated using an activity-based approach, drawing on the 2024 employee commuting survey and extrapolated to the 2025 full-time employee headcount. LEO Pharma’s CO2e calculations follow the GHG Protocol (2015). For details about LEO Pharma’s accounting principles, please refer to its Annual Report. Sources: LEO Foundation’s 2024 and 2025 GHG baseline results; The Footprint Firm analysis; LEO Pharma Annual Report 2025.

SOCIAL

People are our most valuable asset and central to our performance and culture. We are committed to diversity, equity and inclusion, a healthy and safe working environment, respect for human rights and protecting personal data. We believe these commitments foster a motivating and engaged workplace and attract, develop and retain talent.

• Inability to attract, develop and retain diverse talent.

• Failure to ensure equitable practices and inclusion in operations and grant activities.

• Human rights violations in operations and investments.

• Non-compliance with data protection and privacy regulations (e.g., GDPR).

• Code of Conduct covering diversity, inclusion, nondiscrimination, harassment, labor rights and data protection.

• Diversity, Equity and Inclusion (DEI) policy setting principles and expectations for fostering DEI.

• Employee Handbook maintains a focus on employee matters and provides guidance and rules on workplace environment and development.

• Regular workplace assessments (APV) supporting a healthy and safe working environment.

• Whistleblower scheme.

• Gender balance monitored and disclosed, with targets in place.

• Remuneration benchmarked.

• APV conducted with 100% employee participation; results above external benchmark with no material issues identified.

• Targeted actions implemented on noise, office layout and ergonomics.

• Formal Data Ethics policy adopted.

• Active engagement in the CoARA National Chapter, supporting fairer and more inclusive research assessment practices.

• Continued focus on diversity across board, leadership and scientific review panels.

• Development and implementation of a stress and well-being policy (deferred from 2025).

• Continued focus on research integrity and fair research practices, including alignment with the principles of the Danish Code of Conduct for Research Integrity, supporting responsible and respectful treatment in research contexts.

Gender diversity

The LEO Foundation’s Board aims for gender balance (40%/60%) among charter-appointed members, and the current composition meets this target. As a small organization, the Foundation is not required to have a diversity policy or report on this, but we remain committed to gender diversity reporting. We aim for an equal balance between genders, and the composition of the management team aligned with this target at the end of 2025.

Where our philanthropic activities are concerned, we continued to monitor gender diversity in 2025 on review panels and committees and among grantees as well as in our funding practices. We monitor and compare the gender distribution of both applicants and grant recipients, and report this to the Board. The gender distribution among grant recipients in 2025 was 53% female and 47% male, based on the breakdown of total grantees reported in our application system.

GOVERNANCE

We uphold strong governance and high ethical standards across all our activities. They underpin our role as owner, investor and philanthropist, and guide our approach to transparency, integrity and anti-corruption.

Negative impact and risk Mitigation 2025 outcomes Future plans

• Bribery or kickbacks for personal gain in operations and grant activities.

• Misuse of grant funds (e.g., embezzlement, theft or false claims).

• Corrupt behavior by managers of companies in the financial portfolio.

• Conflicts of interest in business and investment decisions.

• Code of Conduct, covering anti-bribery and anti-money laundering.

• Financial controls and internal procedures.

• Whistleblower scheme.

• Conflict of Interest policy.

• Open and honest culture.

• ESG policy integrated into management of the financial portfolio.

• ESG screening applied to 100% of the listed equity portfolio and expanded to selected areas within corporate credit.

• Annual ESG reporting on the financial portfolio to the Board.

• No cases of bribery, corruption or anti-money laundering violations reported.

• First written impact report on philanthropic activities presented to the Board.

• Formal Data Ethics policy adopted.

• Continued enhancement of transparency in societal impact.

• Ongoing support of LEO Pharma in preparing for public market requirements related to governance and ESG.

• Review and update of engaged ownership principles.

Data ethics (Statutory report, Danish Financial Statements Act, section 99d).

The LEO Foundation adopted a Data Ethics policy in 2025. The policy sets out principles for responsible, transparent and ethical use of data, including personal data, and complements applicable legislation, internal policies and the Foundation’s Code of Conduct. The full policy is available on the Foundation’s website.

LEO Pharma’s approach to data ethics is guided by a policy framework based on key principles such as accountability, autonomy, transparency, data quality, fairness, non-discrimination, ethics by design, responsible data sharing and data security. For details, please refer to LEO Pharma’s Annual Report.

Risk management

Risk management is an integral part of how the LEO Foundation works, allowing us to appropriately manage and mitigate risks and respond to changing circumstances.

A comprehensive ERM process is conducted annually, presenting the Board with specific identified individual risks and mitigations as well as an overall assessment of the risks related to the LEO Foundation’s activities. Alongside this, a consolidated worst-case risk scenario is presented and discussed as a means of identifying mitigations for such a low-likelihood but high-consequence risk scenario where a number of risks materialize concurrently.

The LEO Foundation’s main risks relate to value generation and operational risks at LEO Pharma, as well as the management of the Foundation’s financial assets and, to a lesser extent, that of the Foundation’s philanthropic activities.

The LEO Foundation applies an Enterprise Risk Management (ERM) process which aims to identify relevant risks across the Foundation’s activities and consolidate them into a common risk management program.

The purpose of the ERM process is to ensure that the Foundation is well prepared to respond to changing circumstances, with the objective of ensuring that sufficient capital is always available to withstand a severe crisis, including a convergence of several high-impact risk events.

Risks related to the Foundation

Risk management is an integral part of how we manage our financial portfolio, both from a strategic and an operational perspective.

In 2025, we updated the Foundation’s long-term financial plan toward 2030. The financial plan consolidates strategies and associated financial projections for each of the Foundation’s activities and includes long-term strategic risk tolerances for the management of the financial portfolio. Specifically, capital is allocated with consideration to 1) the ability to withstand a maximum loss in relation to the financial portfolio in exceptionally negative market conditions, 2) the ability to grow the capital available for philanthropic activities and, most

importantly, 3) ensuring that at any given time, the Foundation is able to liquidate assets without incurring losses from forced disposals, at a value that can cover the losses in a worstcase risk scenario defined in the ERM process.

In 2026, we plan to further refine our ERM reporting format toward the Board of Trustees.

The financial portfolio is managed in accordance with the Investment Policy, which is reviewed and approved annually by the Board. The Investment Policy sets out the strategic asset allocation and the boundaries for each asset class within which tactical asset allocation can be made.

Furthermore, the Investment Policy sets limits on counterparty risk, overall interest rate risk and the liquidity of the financial portfolio. Currency risk is hedged for all fixed-income exposure, while equity investments have full currency exposure but with the option of hedging. All asset classes, external managers and external investment funds are approved by the Board’s Investment Committee prior to any investments. Compliance with the Investment Policy is verified by the finance department, and

For more information about risks at LEO Pharma, please refer to LEO Pharma's Annual Report

investment results are documented in reports to the Investment Committee and the CEO.

Each week, a portfolio performance report is prepared by the Chief Investment Officer and distributed to the CEO and the Chair of the Investment Committee, followed by a meeting between the CEO and the investment team.

A monthly report is issued to the Investment Committee, and an investment update is presented to the full Board by the Chief Investment Officer at all regular board meetings. Furthermore, at each board meeting, the Board is presented with an updated analysis of risk measures related to the strategically set risk tolerance levels of the financial portfolio.

In relation to environmental, social and governance (ESG) issues, the investment team reviews the external investment managers as an integrated part of the investment process. All investment managers report annually on ESG factors and matters, including, where relevant, exited investments, engagement with companies and ESG Committee issues.

In addition to risks associated with the financial portfolio, the Foundation is subject to a number of other risks of a more generic nature, including risks related to the Foundation’s philanthropic activities as well as political and reputational risks. These are assessed and mitigated through the implementation of policies and procedures and an annual assessment of specific identified risks conducted as part of the ERM process. To

support this, a dedicated LEO Foundation Code of Conduct has been implemented.

Sustainability- and ESG-related risks form part of the Foundation’s overall risk landscape and are considered within the ERM process. Detailed disclosure of material ESG risks, mitigations and outcomes is provided in the Sustainability section of this Annual Report.

Risks related to LEO Pharma

As a global pharmaceutical company, LEO Pharma operates in a highly complex business environment. Through its operations, the company is exposed to a broad array of risks. An ERM program has therefore been implemented to ensure structured, methodological and effective management of key risks across its business and value chain.

In 2025, the focus was on sustaining support for and further anchoring the program and its processes across LEO Pharma leadership teams. The assessment methodology, including definitions and scales, was revisited and updated based on learnings captured in 2024. Furthermore, there was an ongoing assessment of how to apply risk management in a focused and effective way in a world characterized by increasing uncertainty.

At LEO Pharma, the Board of Directors has overall responsibility for ERM, with delegation of the role of oversight of the ERM program execution to the Audit Committee (AC). The CEO

and the Global Leadership Team are responsible for ensuring that the ERM program is updated and integrated into decision-making, as well as for setting the overall risk management strategy and level of risk tolerance. The CEO and the Global Leadership Team ultimately own and must manage all relevant risks in each business area and global function.

A dedicated enterprise risk team manages LEO Pharma’s ERM program in close collaboration with business units across the company’s global value chain. Following the identification and evaluation of key risks across the organization, the enterprise risk team prepares consolidated key risk profiles for LEO Pharma.

The Global Risk Management function drives the implementation and maintenance of the ERM program and the execution of the process, and supports the leadership teams and appointed risk ambassadors across the organization in fulfilling their ERM-related roles and responsibilities. The function also covers other aspects of risk management within LEO Pharma.

The consolidated key risk profiles are shared with the CEO, the Global Leadership Team and, ultimately, the AC, for their respective discussion, review and evaluation. The top risk profiles are also shared with the Board of Directors, as well as with the Foundation.

LEO Pharma reports on key operational and sustainability risks in its Annual Report.

Key business and operational risks

We consider risk identification and management as important and integral parts of how we operate and oversee activities at the LEO Foundation. To this end, we have implemented the LEO Foundation Code of Conduct as a key mitigating action. In addition, we have established a comprehensive ERM process, which is described separately in the section above.

At the same time, as a relatively small organization, we often observe that the most significant risks relate to the global operations of LEO Pharma, where an ERM program is in place to manage key risks across its global value chain.

In addition to risks concerning LEO Pharma, we identify and manage risks related to our own operations, philanthropic activities and investment activities. The following risks and mitigations focus on actions within the direct control of the LEO Foundation. In the Sustainability section, we outline sustainabilityrelated risks, which is why they are not included here.

Risk area Key risks

Operational

Incl. financial processes and IT security

Financial

Incl. capital market downturn

• Breaches of processes or IT security could lead to loss of capital and disruption of our business.

• Unauthorized access to systems and data could impact the confidentiality, integrity and availability of systems and data.

• A significant market downturn could have a sizeable negative impact on our ability to support LEO Pharma and carry out grant activities.

• Changes in rules and regulations set by regulatory authorities may impact the Foundation’s ambitions and operations.

Reputational

Incl. third-party compliance and leaking of confidential information

• Undesired behavior by grantees, managers of companies in our financial portfolio, employees or other stakeholders could impact our reputation.

• Leaking of confidential information could impact our businesses negatively.

Mitigating actions

• Our Code of Conduct and dedicated financial policies and processes with an annual external assessment.

• Data ethics and IT policy (including security practices and requirements).

• Systems and operations outsourced to a professional third party with solid firewalls and back-up systems.

• Long-term investment strategy sustainable through investment cycles, complemented by monitoring specific risk measures so as to be able to respond promptly to market developments.

• Key processes and policies developed to ensure compliance with laws and regulations, complemented by participation in industry associations and networks to monitor the regulatory environment.

• Our Code of Conduct, Employee handbook, and an open and honest culture.

• Grants are subject to a set of general terms and conditions governing the use of awarded research grants.

• Due diligence on investment activities includes attention to the ethics of the asset managers, as reflected in our ESG policy.

• Employees undertake a duty of confidentiality in connection with their employment and must adhere to our IT policy and Code of Conduct.

Income statement

Statement of comprehensive income

Balance sheet at December 31

Statement of changes in equity

Cash flow statement

Note 1.1

Basis of preparation

Basis of preparation

The consolidated financial statements comprise the Parent Company LEO Foundation and its subsidiaries (together referred to as the LEO Group).

The consolidated financial statements have been prepared in accordance with International Accounting Standards (IFRS) as adopted by the EU, and the additional requirements of the Danish Financial Statements Act for large Class C companies.

The consolidated financial statements are presented in Danish kroner (DKK), which is also the functional currency of the Parent Company, rounded to the nearest DKK million, unless otherwise stated.

Rounding

In general, rounding may cause variances in totals and percentages in the Annual Report.

Global market and climate uncertainties

Management continuously monitors the overall geopolitical environment, supply chain conditions and macroeconomic indicators, including inflation rates, interest rate developments and foreign exchange movements, which could influence LEO Pharma’s financial performance. In addition, developments in global trade policy, such as changes in import/export regulations, imposition or removal of tariffs, and regional trade agreements, are assessed for potential impact on the Group's procurement costs and market access. The Group also evaluates the potential implications of climate-related events and evolving environmental regulations for operations and supply chains. Consistent with the 2025 statements, Management

confirms that, to date, these global market and climate uncertainties have not had a significant adverse effect on LEO Pharma’s activities. LEO Pharma remains vigilant and proactive in identifying, assessing and mitigating such risks as part of the Group's ongoing commitment to sustainable growth and value creation.

Application of materiality

In the preparation of the consolidated financial statements, the LEO Group aims to focus on information that is material and relevant to the users of the consolidated financial statements.

The consolidated financial statements are a result of aggregating large numbers of transactions into classes of similar items according to their nature or function. If a line item is not individually material, it is aggregated with other items of a similar nature in the consolidated financial statements or in the notes.

Key accounting estimates and judgments

The preparation of the consolidated financial statements requires Management to apply accounting policies involving judgments, estimates and assumptions that impact the reported amounts of assets, liabilities, income and expenses, and related disclosures, and affect the application of the accounting policies. Judgments represent decisions made in applying accounting policies, while estimates involve measurement uncertainties requiring assumptions about future events. Estimates and underlying assumptions are reviewed regularly and updated as necessary; changes are recognized prospectively in the current and future periods. The areas described in the following box represent the key judgments and sources of estimation uncertainty that have the most significant effect on amounts recognized in the consolidated financial statements

Key accounting estimates and judgments

Key accounting estimates

Key accounting estimates are derived from quantitative and qualitative factors that could significantly affect the measurement of assets and liabilities in the reporting period.

Accounting estimates are based on historical experience and assumptions that Management considers reasonable under the circumstances. Actual outcomes may differ from the estimates as conditions change or more precise information becomes available.

Example: Estimating the useful life of intangible assets requires consideration of contractual terms, expected market conditions, technological developments and other economic factors.

Key accounting judgments

Key accounting judgments are decisions made by Management in applying the Group’s accounting policies that can significantly affect the amounts recognized in the consolidated financial statements.

Judgments are typically made based on the guidance in applicable IFRS standards, supported by the best information available at the time.

Example: Determining if there are any indications of impairment for intangible assets requires judgment in evaluating market conditions, technological developments and regulatory changes.

Overview of key estimates and judgments

• Note 2.4 Tax - deferred tax: Valuation of deferred tax assets (estimate). Recoverability of deferred tax assets (judgment)

• Note 3.1 Intangible assets: Useful lives and valuation (estimate). Impairment testing of intangible assets (judgment)

• Note 4.2 Inventories: Cost of inventories and provision for obsolescence (estimate)

• Note 4.4 Provisions: Provisions for sales deductions (estimate)

• Note 5.4 Financial assets and liabilities: Fair value of unlisted investments (estimate)

Reference is made to the specific notes for further information on key accounting estimates and judgments.

Note 1.2

Accounting policies

Material accounting policies

The LEO Group's material accounting policies are described in the individual notes to the consolidated financial statements.

Consolidation

The consolidated financial statements comprise the LEO Foundation and subsidiaries over which the LEO Foundation exercises control at December 31, 2025. Control exists when the Group is exposed to, or has rights to, variable returns from its involvement with the subsidiary and has the ability to affect those returns through its power over the entity.

The consolidated financial statements are prepared by combining the financial statements of the Parent Company and its subsidiaries line by line, followed by elimination of intercompany transactions, balances, shareholdings and unrealized profits arising from intragroup transactions. The financial statements of all subsidiaries are prepared in accordance with the Group's accounting policies.

Foreign currency translation

Each company in the Group measures its transactions in its functional currency, defined as the currency of its primary economic environment. Transactions in foreign currencies are translated into the functional currency at the exchange rates prevailing on the transaction date.

Receivables, payables and other monetary assets and liabilities denominated in foreign currencies are translated into the functional currency at the exchange rates on the reporting date, with exchange differences recognized in financial income or financial expenses in the consolidated income statement.

In the consolidation of foreign subsidiaries with a functional currency other than DKK, income and expenses are translated into DKK at the exchange rates at the transaction date. The previous month-end exchange rate is used as the exchange rate at the transaction date

to the extent that this does not significantly distort the presentation of the underlying transactions. Assets and iiabilities are translated at the closing rate at the reporting date. Exchange differences arising from the translation of opening equity balances and income statements at different rates are recognized in other comprehensive income. Likewise, adjustments to balances with foreign entities that are considered part of the net investment in the subsidiary are recognized within a separate translation reserve in other comprehensive income in the consolidated financial statements.

Cash flow statement

The consolidated cash flow statement is prepared using the indirect method and is based on operating profit or loss. The statement shows cash flows from operating, investing and financing activities as well as cash and cash equivalents at the beginning and end of the year.

Cash flows from operating activities are calculated by adjusting operating profit or loss for non-cash items such as depreciation, amortization and impairment losses, together with changes in working capital, which comprises inventories, trade receivables, trade payables and other operating items.

Cash flows from investing activities comprise payments related to the acquisitions and disposals of intangible assets and property, plant and equipment, investments in and proceeds from sale of other investments, as well as net investments in securities.

Cash flows from financing activities comprise the raising and repayment of current and non-current debt and transactions with shareholders. Cash solely comprises cash at bank and in hand.

Non-controlling interests

On initial recognition, non-controlling interests are measured at their proportionate share of the acquired company’s identifiable assets, liabilities and contingent liabilities measured at fair value.

The gross obligation under the issued put option on non-controlling interests is presented as a reduction of the Group's equity attributable to the LEO Foundation.

Increases and reductions of non-controlling interests are accounted for as transactions with shareholders, in their capacity as shareholders. Thus, any differences between adjustments to the carrying amount of non-controlling interests and the fair value of the consideration received or paid are recognized directly in equity.

Grants

Grants paid out: Grants that have been adopted and paid out in accordance with the purpose of the Foundation at the balance sheet date are deducted from equity.

Grants not yet paid out: Grants that have been adopted in accordance with the purpose of the Foundation and announced to the recipients, but not yet paid out at the balance sheet date, are deducted from equity and recognized as debt.

Grant limit: At the meeting of the Board of Trustees at which the Annual Report is adopted, the Board of Trustees lays down a grant limit in respect of the amount expected to be granted. This amount is transferred from retained earnings to reserve for future grants. Concurrently with being announced to the recipients, the grant amounts are paid out, transferred to debt or, in rare cases, transferred to provisions relating to grants.

Implementation of new standards and interpretations

Effective January 1, 2025, the LEO Group implemented all new or amended accounting standards and interpretations issued by the International Accounting Standards Board (IASB) and endorsed by the EU. Amendments to IAS 21 Lack of Exchangeability concerning how to assess whether a currency is exchangeable, and how to determine the exchange rate when it is not, had no

material impact on the disclosures or the amounts reported in the consolidated financial statements.

New and revised IFRS issued, but not yet effective, that are relevant to the Group

IASB has issued new or amended accounting standards and interpretations that have not yet become effective:

In 2024, the IASB issued IFRS 18 Presentation and Disclosure in Financial Statements, which will replace IAS 1 Presentation of Financial Statements and amend IAS 7 Statement of Cash Flows for annual periods beginning on or after January 1, 2027. The standard introduces a revised structure for the income statement, requiring presentation of income and expenses separate from operating activities, investing activities and financing activities, as well as disclosure requirements for managementdefined performance measures and enhanced guidance on aggregation and disaggregation of items in the financial statements.

The LEO Group expects to adopt the IFRS standards and interpretations when they become mandatory.

The LEO Group is currently assessing the full impact of IFRS 18 on the presentation of the primary consolidated financial statements and related notes as well as disclosure of managementdefined performance measures. The preliminary assessment is that the adoption of IFRS 18 is expected to change the structure and presentation of the income statement and to introduce additional disclosure requirements. However, IFRS 18 does not change accounting policies on recognition and measurement, and accordingly, it is not expected to have any impact on the consolidated equity or net results.

Note 2.1

Revenue and segment information

LEO Pharma is a global medical dermatology company advancing innovative treatments for skin health. Headquartered in Denmark, the company serves patients worldwide.

LEO Pharma's Registered Executive Management, as the Chief Operating Decision Maker, reviews the business performance and allocates resources to the Group as a whole, based on internal reporting. As such, LEO Pharma is considered a single

operating segment, and the financial information presented in these consolidated financial statements is consistent with the information reviewed by Management.

In the table below, the geographical regions correspond to LEO Pharma’s main markets, while the product split by portfolio reflects the Group’s internal management perspective.

World, and represents 7.6% of the total revenue. During the year, no individual customer contributed 10% or more to the Group’s total net revenue. The specification of non-current assets by country of location is presented below: (DKK million)

(DKK million)

Non-current assets* by country of location

Revenue recognized in 2025 includes adjustments arising from changes in the transaction price of performance obligations satisfied in previous years. These adjustments primarily relate to the reversal of provisions for sales deductions and revised estimates of product returns. While such changes are reflected in reported revenue for the year, their impact on the Group’s overall revenue is not significant.

In 2025, the US was the only country where revenue from external customers based on location exceeded 10% of the Group’s total net revenue, amounting to DKK 2,164m (2024: DKK 1,454m).

Revenue from external customers located in the Group’s country of domicile, Denmark, amounted to DKK 47m (2024: DKK 48m).

arising from Japan, Australia, New Zealand, South Korea, Hong Kong, Singapore and Taiwan is included in Rest of

* Non-current assets consist of goodwill, intangible assets, property, plant and equipment, and right-of-use-assets.

Accounting

policies

Revenue comprises sale of goods primarily from own production, and to a lesser extent from sales-based royalty income.

Sale of goods

Revenue from the sale of goods is recognized when customers obtain control of the goods, which is typically at the time of delivery.

Sales deductions and product returns

The amount of revenue recognized at the time control of goods is transferred to the customer is reduced for expected sales deductions and product returns. Such adjustments are estimated based on historical experience, contractual terms and other relevant factors specific to the product, customer and market. Sales deductions may include rebates, chargebacks, discounts and other sales-related incentives. Estimated amounts are recognized as a reduction of revenue, with a corresponding refund liability recorded in provisions or other payables, depending on the nature of the deduction (please refer to Note 4.4 Provisions). Product returns are estimated based on past return patterns and anticipated future activity. Estimated amounts are recognized as a reduction of revenue, with a corresponding refund liability recorded in provisions or other payables, depending on the nature of the expected return (please refer to Note 4.4 Provisions).

Sales-based royalties

Sales-based royalties from outlicensed products and milestone payments are recognized when the subsequent sale occurs. Contract liabilities are recognized as revenue in line with fulfillment of the performance obligation.

Note 2.2 Employee costs

Note 2.3

Other operating income and expenses

Other operating income and other operating expenses comprise items of a secondary nature to the LEO Group’s primary activities, i.e., gains and losses on sale of intellectual property rights and on sale of property, plant and equipment. Gain on sale of

In 2024, the announced restructuring program in LEO Pharma impacted the total employee costs by DKK 265m. assets includes a DKK 1,739m net gain from sale of assets related to the upfront payment from the strategic partnership with Gilead Sciences entered into on January 11, 2025.

Please also refer to Note 6.1 Management remuneration and Note 6.2 Share-based payment.

In 2023, the Danish Ministry of Taxation adopted the EU Minimum Tax Directive in Danish national legislation (Pillar II), effective January 1, 2024. Under the legislation, the Group is liable to pay top-up tax for any difference between its Global Anti-Base Erosion (GloBE) effective tax rate in each jurisdiction and the 15% minimum rate.

The ultimate parent of the Group, LEO Foundation, is considered a non-profit organization and therefore assumed to be exempted from the rules.

The Group has estimated that the GloBE effective tax rates exceed 15% in all jurisdictions in which it operates except for Ireland due to its low corporate income tax rate. Considering the impact of specific adjustments in the GloBE income calculation, the top-up tax provision is estimated to be DKK 30m (2024: DKK 0m), which has been recognized as non-current tax payable in the balance sheet. The determination is based on the consolidated financial statements for 2025.

In previous years, deferred tax has been recognized only in those jurisdictions where it was considered material. As of 2025, deferred tax has been recognized in all jurisdictions.

Deferred tax assets primarily represent tax loss carryforwards (TLCF) and other temporary tax differences across the Group. A significant portion of the Group’s deferred tax assets resides with LEO Pharma A/S, stemming equally from accumulated TLCF and other tax assets. The unused TLCF and the other tax assets related to LEO Pharma A/S do not have an expiration date.

As of December 31, 2025, net deferred tax assets totaling DKK 2,825m (2024: DKK 1,816m) have been recognized, based on expected utilization of the deferred tax assets in the near future, which is re-evaluated on a yearly basis.

The stated valuation allowance represents the unrecognized deferred tax assets, which relate solely to LEO Pharma A/S and amount to DKK 3,348m as of December 31, 2025 (2024: DKK 4,391m). The recognized deferred tax assets in LEO Pharma A/S amount to DKK 1,650m (2024: DKK 746m) and hence the value of the total deferred tax assets in LEO Pharma A/S amounts to DKK 4,998m as of December 31, 2025 (2024: DKK 5,137m).

In 2025, the Group achieved a positive net financial result. This development reflects the transformation that LEO Pharma has pursued in recent years. A continued positive development is forecasted for the coming years, driven by continued revenue growth supported by recent strategic product launches, as well as general expectations regarding future operating and taxable profits. Accordingly, an increased deferred tax asset of DKK 904m was recognized in LEO Pharma A/S.

Management evaluates all relevant evidence, including both positive and negative indicators, in determining the extent to which deferred tax assets can be recognized in accordance with IFRS requirements. This assessment requires Management to consider the likelihood of generating future taxable profits in the near future that are sufficient to utilize the deferred tax assets. Management takes into account historical financial performance, future profit forecasts and external factors that may impact the ability to realize deferred tax assets. This includes an evaluation of risks and uncertainties related to key assumptions underlying the forecasted taxable profits. Management has concluded that, based on its current assessment, it is probable that sufficient future taxable profits will be available to justify the recognition of deferred tax assets.

(continued)

Accounting policies

Income tax

Income tax for the year, which consists of the year’s current tax, the change in deferred tax and adjustments in respect of previous years, is recognized in the income statement at the amount that can be attributed to the profit/(loss) for the year and in other comprehensive income at the amount that can be attributed to items in other comprehensive income.

Deferred tax

Deferred tax is recognized on all temporary differences between the carrying amounts of assets and liabilities and their tax bases, except for temporary differences arising on initial recognition of a transaction that is not a business combination, and where the temporary difference ascertained at the time of initial recognition affects neither the financial result nor the taxable income.

Key accounting estimates and judgments

Significant assumptions regarding the valuation of the recognized deferred tax asset are both the ability to meet the objectives in the strategy for the next five years and the return on the investment portfolio within the joint taxation group. The return on the investment portfolio is sensitive to general market fluctuations.

The Group records uncertain tax positions in accordance with IAS 12 Income Taxes using the 2-step test whereby (1) LEO Pharma determines whether it is probable that the tax positions will be accepted by the relevant tax authorities, and (2) for those tax positions that a tax authority is not likely to accept in full, the Group recognizes uncertain tax positions using either the most likely amount or the expected value, depending on specific facts and circumstances. Note 2.4

The change in deferred tax as a result of changed income tax rates or tax rules is recognized in the income statement. Interest on tax cases that are ongoing or have been settled during the year is reported under financial items in the income statement.

Current tax for the year is calculated on the basis of the income tax rates in the respective countries and rules enacted at the balance sheet date. The Danish subsidiaries of the LEO Foundation Group are jointly taxed.

Deferred tax is measured on the basis of the income tax rates and tax rules substantially enacted in the respective countries at the balance sheet date. Deferred tax assets, including the tax assets relating to tax loss carryforwards, are recognized in the balance sheet at the value at which the assets are expected to be utilized. Deferred tax assets and liabilities are offset if the Group has a legal right to offset these and intends to settle these on a net basis or to realize the assets and settle the liabilities simultaneously.

Management’s estimate of future income according to forecasts, strategy and initiatives scheduled for the coming years forms the basis for estimating the utilization of the deferred tax assets in future periods. A forecast period of five years is applied to the estimated utilization of deferred tax assets for LEO Pharma A/S and the companies under the joint taxation scheme.

Judgment is made concerning the recoverability of deferred tax assets and whether to recognize deferred tax assets in relation to tax loss carryforwards.

Note 3.1

Goodwill and intangible assets

Intellectual property rights

At December 31, 2025, intellectual property rights comprise the following individually significant intangible assets:

• Dermatology portfolio (mainly Skinoren®, Advantan®, Travocort® and Travogen®) at a carrying amount of DKK 2,261m (2024: DKK 2,527m) and with a remaining useful life of 8.5 years.

• Tralokinumab at a carrying amount of DKK 704m (2024: DKK 790m) and with a remaining useful life of 8 years.

• Spevigo® at a carrying amount of DKK 670m (2024: N/A) and with a remaining useful life of 15 years.

During 2025, LEO Pharma completed an asset purchase transaction with Boehringer Ingelheim and obtained an exclusive global license to commercialize and advance the development of Spevigo®. An amount of DKK 682m was recognized based on the upfront payment and directly attributable transaction costs. The asset is amortized on a straight-line basis under sales and distribution costs in the income statement. Additional contingent milestone and tiered royalty payments will be recognized when the relevant conditions are met.

Software

Software comprises purchased and internally developed software.

Development projects and software in progress

Development projects and software in progress comprise development projects, DKK 10m (2024: DKK 0m), and software in progress, DKK 54m (2024: DKK 23m).

Note 3.1

Goodwill and intangible assets (continued)

(DKK million)

Specification of amortization:

Impairment testing

Goodwill

LEO Pharma is considered as a single identifiable group of assets that generates independent cash inflows, as Management makes decisions and assesses business performance at the consolidated level.

In 2025, the recoverable amount of LEO Pharma as a single cash-generating unit (CGU) was based on a method of assessing the fair value less cost of disposal. The fair value of LEO Pharma is based on the actual valuation of the enterprise value of LEO Pharma compared with the carrying amount of equity. Management has not identified any goodwill impairment at December 31, 2025.

Intellectual property rights and software

When preparing the impairment tests by using the discounted future cash flows to determine the recoverable amount of an asset, Management considers the potential impact of reasonably possible changes in the key assumptions applied.

2025: Reversal of impairment of IP rights of DKK 31m, recognized under sales and distribution costs in the income statement,

relates to the tralokinumab asset, which was impaired in 2023. The expected future cash flows have been reassessed to reflect the current market conditions and changes in Management's expectation for the strategy.

Impairment of software of DKK 50m mainly relates to software no longer in use of which DKK 33m was recognized under sales and distribution costs, DKK 11m under research and development costs and DKK 6m under administrative costs in the income statement.

2024: No individually material impairment losses, or reversal of previously recognized impairment losses, were recognized, based on the impairment test.

Development projects and software in progress

The Group performs annual impairment tests on single internal assets in progress and acquired development assets that are not yet commercialized. The recoverable amount of intellectual property rights and development projects is based on the value in use of the discounted expected future cash flows. The recoverable amounts of the specific assets are compared with the carrying amount.

2025: No individually material impairment losses, or reversals of previously recognized impairment losses, were recognized, based on the impairment test.

2024: Impairment losses recognized on development projects amounted to DKK 198m and primarily related to discontinuation of the TMB-001 development project which was terminated at DKK 104m. Other impairment losses on development projects amounted to DKK 94m and related to discontinuation of various development projects.

The impairment losses of DKK 198m were recognized under research and development costs. No reversals of impairment losses from prior periods were recognized in 2024.

Research and development costs

In 2025, research and development costs recognized in the income statement amounted to DKK 1,396m (2024: DKK 2,270m), including impairment losses of DKK 11m (2024: DKK 198m).

Note 3.1

Goodwill and intangible assets (continued)

Accounting policies

Intellectual property rights

Intangible assets acquired separately are initially recognized at cost. After initial recognition, such assets are measured at cost less accumulated amortization and, where applicable, accumulated impairment losses. Identifiable intangible assets acquired in a business combination are initially recognized at fair value at the acquisition date.

Sales milestone payments relating to acquired intangible assets are recognized as a liability and capitalized as part of the asset’s cost only when the triggering event has occurred. The additional cost is amortized prospectively over the remaining useful life of the asset, with the expense classified consistently with the asset’s underlying function (e.g., sales and distribution costs for the Spevigo® license or cost of sales if linked directly to production rights).

Amortization of acquired or internally developed intellectual property rights is provided on a straight-line basis over the expected useful life of the assets and recognized in sales and distribution costs in the income statement. Costs relating to the maintenance of patents etc. are expensed in the income statement as incurred.

Software purchased or internally developed is amortized on a straight-line basis over its expected useful life. Amortization and any impairment losses are recognized in the income statement within the relevant functional expense categories, reflecting the area of the business that uses the asset (e.g., cost of sales, sales and distribution costs, research and development costs or administrative costs).

The expected useful life is as follows:

• Intellectual property rights 5-15 years

• Software 3-10 years

Development projects and software in progress

Acquired or internal development projects and software in progress are recognized as intangible assets if the recognition criteria are met:

• The projects are clearly defined and identifiable.

• The Group intends to use the projects once completed.

• The future earnings from the projects are expected to cover the development and administrative costs.

• The cost can be reliably measured.

Regulatory milestone payments related to acquired clinical intellectual rights are added to the cost of the asset when it becomes probable that the milestone will be reached under the cost

accumulation method, provided that the criteria for recognition outlined above are met.

Research costs are expensed in the income statement. Consistent with industry practice, internal and subcontracted development costs are expensed as incurred, due to significant regulatory uncertainties inherent in developing new products. Once marketing approval by a regulatory authority is obtained or considered highly probable, development costs are capitalized as intangible assets.

Development projects are not amortized, as the assets are not available for use. The costs of software in progress include direct salaries, materials and other direct costs attributable to the development activities.

Impairment testing

Goodwill, development projects and software in progress are tested for impairment annually or if there are indications of impairment during the year. Other intangible assets are tested for impairment when an indication of impairment is identified. If an indication of impairment is identified, the carrying amount is written down to the recoverable amount, which is the higher of fair value less costs of disposal and value in use.

Development projects are assessed on an ongoing basis taking due account of development progress, expected approvals and commercial utilization.

When assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

Research and development costs

Research and development costs comprise internal and external costs related to studies, employee costs, materials, costs for subcontracted development activities, depreciation, amortization, impairment losses and other directly attributable costs.

Note 3.1

Goodwill and intangible assets (continued)

Key accounting estimates and judgments

Impairment testing, indicators

Management makes judgments to assess if there are any indications of impairment. To identify indications of impairment, Management considers the following events:

• Changes to patent and license rights

• Changes in expected future cash inflows and outflows to/ from the Group

• Research and development results

• Technological changes

• Development of competing products

Valuation

of intangible assets

To determine the recoverable amount of intangible assets, the future cash flows are discounted to present value applying a discount rate that reflects the risks associated with the

cash flow. The expected future cash flows are based on budgets and target plans for the patent period or other applicable period for marketable products. The budgets and target plans are based on Management’s expectations of current market conditions and future growth expectations. Key factors estimated in the valuation include discount rates and growth rates, working capital etc.

Estimated useful lives

The useful life and amortization period are estimated individually in each case and are initially assessed when the assets are acquired or brought into use. The main factors in consideration are contractual terms that may limit the useful life, the useful life of other assets to which the intangible asset may relate and economic factors. Management assesses intangible assets for changes in useful lives on an annual basis.

Transfers of assets under construction mainly relate to a new manufacturing facility in Ballerup, Denmark, at a carrying amount of DKK 1,909m and expansion of an existing facility in Ireland at a carrying amount of DKK 456m.

As at December 31, 2025, assets at the Ballerup site were pledged as collateral for loans. The carrying amount of these assets was DKK 2,432m (2024: DKK 2,549m).

For capital commitments, please refer to Note 6.5 Guarantees, contingencies and commitments.

Note 3.2

Property, plant and equipment (continued)

Accounting policies

For self-constructed assets, cost comprises direct costs of materials, subsuppliers and salaries etc. The total cost of an asset is broken down into components that are depreciated separately if the expected useful life of the individual components is not the same.

If the recoverable amount of an asset is estimated to be less than the carrying amount, an impairment is recognized. Impairment losses are recognized in the respective function that the asset belongs to on recognition, such as in cost of sales, sales and distribution costs, research and development costs, or administrative costs.

Depreciation is provided on a straight-line basis over the expected useful life. The useful life is reassessed once a year

to ascertain that the depreciation profile reflects the expected useful life and future residual value of the assets. Land is not depreciated.

The expected useful lives are as follows:

• Buildings 10-50 years

• Plant and machinery 5-10 years

• Other fixtures and fittings, tools and equipment 3-10 years

Leasehold improvements are depreciated over the term of the leased assets.

Note 3.3 Leases

cars.

Lease contracts are negotiated on an individual basis and contain a wide range of different terms and conditions. Lease

RIGHT-OF-USE ASSETS

contracts are typically signed for fixed periods. If a rental contract includes an extension option for LEO Pharma, Management assesses whether it is reasonably certain that the extension option will be utilized.

Note 3.3

Leases (continued)

For a contractual maturity analysis of lease liabilities, refer to Note 5.2 Financial risks, contractual maturity analysis for financial liabilities.

Lease liabilities impacted the cash flow by DKK 104m (2024: DKK 120m), of which DKK 11m (2024: DKK 10m) impacted the operating cash flow and DKK 93m (2024: DKK 110m) impacted the cash flows from financing activities

(DKK million)

Amounts expensed in the income statement

Other operating income, net - 6

Depreciation and impairment of right-of-use assets

(99) Interest expense on lease liabilities (11) (10)

TOTAL AMOUNT RECOGNIZED IN THE INCOME STATEMENT (82) (103)

Variable lease payments, short-term leases and leases of low-value assets were not material in 2025 or 2024.

Depreciation is included in sales and distribution costs in the income statement.

Accounting policies

On initial recognition, right-of-use assets correspond to the lease liability recognized, adjusted for any lease prepayments, including dismantling and restoration costs.

The lease payments include fixed payments less any lease incentives receivable and variable lease payments. Variable lease payments that are not included in the measurement of the lease liability are recognized as expenses in the income statement.

The lease payments are discounted using the interest rate implicit in the contract if the rate can be determined, or otherwise LEO Pharma's incremental borrowing rate that the entities would have to pay to borrow the funds necessary to obtain the leased assets with similar characteristics, in a similar economic environment and on similar terms.

For contracts with a rolling term (evergreen leases), the lease term is estimated at five years. Properties of strategic importance are estimated based on the time frame necessary to vacate the premises. The estimated lease term is reassessed at each reporting date or in case of a significant event or a significant change in circumstances that is within the control of LEO Pharma.

Depreciation follows the straight-line method over the lease term.

The Group applies the short-term lease recognition exemption to lease contracts that, at the commencement date, have a lease term of 12 months or less for all classes of underlying assets, and the exemption for lease contracts for which the underlying assets are of low value. Lease payments on shortterm leases and leases of low-value assets are recognized as expenses on a straight-line basis over the lease term.

The Group operates a number of pension plans with different characteristics for certain groups of employees in various countries. The vast majority of these pension plans are defined benefit plans.

Defined contribution plans

These plans are externally funded through payments of premiums to insurance companies and pension funds that are legally separate from the Group. The Group's responsibility to current or former employees is limited to the payment of the premium.

Defined benefit plans

For defined benefit plans the Group is responsible for the pension obligation to the employees, which exposes the Group to actuarial risks, such as mortality, interest rates and salaries. The plans entitle the employees to an annual pension on retirement based on service and salary level up to retirement.

The Group operates defined benefit plans in a few countries, of which the most significant are in Ireland and the UK.

The plans in Ireland and the UK are funded and constituted under a trust whose assets are legally separate from those of the Group. Under the UK scheme-funding regime, the trustees are required to undertake regular scheme-funding valuations for the plans and to establish a schedule of contributions and a recovery plan if there is a shortfall.

Financial assets of DKK 148m (2024: DKK 145m) have been pledged as collateral for the pension fund in Ireland (please refer to Note 5.4 Financial assets and liabilities by category).

Key assumptions and sensitivity analysis

The most significant assumptions used in the calculation of the obligation concerning defined benefit plans are the discount rates.

Accounting policies

Defined contribution plans

Payments to defined contribution plans are recognized in the income statement in the period to which they relate, and any amounts payable are recognized under current liabilities in the balance sheet.

Defined benefit plans

Under defined benefit plans, the Group has an obligation to pay a defined benefit on retirement. The actuarially calculated present value less the fair value of any plan assets is recognized under pensions in the balance sheet.

The present value is calculated on the basis of assumptions relating to future developments in salary, interest rates, inflation, mortality and other factors. The present value is calculated solely for the benefits to which the employees have earned

a right through their employment in the Group. Plan assets are recognized to the extent that the Group is able to obtain future economic benefits in the form of reimbursement from the pension scheme or reduction of future payments. Pension costs for the year are recognized in the income statement on the basis of actuarial estimates and financial expectations at the beginning of the year. Actuarial gains and losses are recognized in other comprehensive income. Past service costs are recognized in the income statement as incurred.

The value of the defined benefit plans is based on valuations from external actuaries. The valuation is based on a number of actuarial assumptions, including discount rates, expected return on plan assets, expected growth in wages and salaries, mortality and retirement benefits. The discount rate is the most significant assumption used in the calculation of the obligation concerning defined benefit plans.

Trade receivables

The factoring program was closed during the year and no trade receivables are subject to factoring at December 31, 2025. Note 4.1

Trade receivables arise primarily from the sale of goods produced in-house and sales-based royalty income. The amounts due from customers include the net value of products sold, taking into account commercial discounts and chargebacks as contractually agreed compensation to LEO Pharma's contract partners, as well as credit notes for returned products as per contractual agreements.

LEO Pharma’s contracts with customers have initial payment terms that range from 45 to 90 days.

MATURITY ANALYSIS OF TRADE RECEIVABLES

The following table details the risk profile for trade receivables. The Group's historical credit losses do not show different patterns

for different customer segments. Historical credit losses are assessed by country of incorporation.

Accounting policies

On initial recognition, trade receivables are measured at fair value, and subsequently at amortized cost, which usually corresponds to the nominal value less write-downs to counter the risk of losses.

Write-downs are calculated using the lifetime expected credit losses method. The write-down amount is recognized in the income statement under sales and distribution costs.

Note 4.2

Inventories

In 2025, inventory write-downs mainly relate to excess and obsolete finished goods and active pharmaceutical ingredients (API), recognized as an expense under cost of sales in the income statement.

Key accounting estimates and judgments (continued)

Inventory write-downs

Inventory provision involves assessing the value of inventory to ensure it is reported at the lower of cost and net realizable value. This estimate requires significant assumptions and analysis, which entails the Group considering market conditions, product demand and potential obsolescence. Inventory write-downs include items that became obsolete, damaged or unsaleable, including those no longer used in production or nearing expiration.

Note 4.3

Other payables

Accounting policies

Inventories are measured at the lower of cost and net realizable value and are assigned using the first-in, first-out (FIFO) cost formula.

Finished goods and work in progress comprise the cost of raw materials, consumables, direct labor and indirect production costs. Indirect production costs comprise indirect consumables and labor, as well as maintenance

and depreciation of the machinery, factory buildings and equipment used in the manufacturing process, and the costs of factory administration and management.

The net realizable value of inventories is calculated as sales price less costs of completion and expenses incurred to effect the sale allowing for marketability, obsolescence and development in expected sales price. Obsolete goods, including slow-moving goods, are written down in the period in which the impairment is identified.

Key accounting estimates and judgments

Cost of inventories

Management uses the standard cost method to measure cost and performs a yearly assessment to determine if this results in an approximate cost. The standard cost is adjusted if there are significant deviations.

Indirect production overheads are calculated on the basis of relevant assumptions as to capacity utilization, production time and other relevant factors, and allocated on the basis of the normal production capacity.

Accounting policies

Other payables include liabilities that are settled on an ongoing basis and due less than one year from the balance sheet date.

Other payables include amounts owed to employees, amounts owed for the purchase of research and development projects, accrued clinical trial expenses, sales

deductions related to customer programs and accrued interest. They also cover preregistered returns where the absolute amounts are known.

Furthermore, other payables include grants falling due within a year.

Sales deductions and product returns are expected to be settled within a period of 1-2 years from delivery of the related products.

In 2024, LEO Pharma announced a restructuring program, recognized under additions to employee-related provisions of DKK 274m. Employee-related provisions are expected to be realized in 2025-2026.

Accounting policies

Provisions are recognized when the Group has a legal or a constructive obligation as a result of past events and it is probable that there may be an outflow of economic resources to settle the obligation. Provisions are measured as the best estimate of the expenditure required to settle the liabilities at the balance sheet date, discounted to present value where the effect of the time value of money is material.

Provisions mainly consist of sales deductions, product returns, restructuring, legal disputes and onerous contracts. Provisions for unsettled sales deductions and product

returns where the timing and amount are uncertain are recognized at the time the related revenue is recognized.

Sales deductions and returns where absolute amounts are known are recognized as other payables.

Provisions for restructuring mainly include employee-related costs. These are recognized when a constructive obligation exists, detailed restructuring plans are in place and a valid expectation of those affected has been raised.

Other provisions consist of provisions for legal disputes, onerous contracts and non-employee restructuring provisions.

Key accounting estimates

Provisions for sales deductions

Provisions for sales deductions represent estimates of the related obligations. Management’s estimate of sales discounts and rebates is based on a calculation that includes a combination of historical utilization data, and expectations in relation to the development in sales and rebate rates. Furthermore, specific circumstances regarding the different programs are considered.

Sales discounts and rebates are predominantly issued in the US in connection with various commercial arrangements, managed healthcare organizations, co-pay arrangements and government programs such as Medicaid and Medicare. Estimates for these programs are most at risk of material adjustment because of the extensive time delay between recording the provision and its final settlement.

Net capital gains on financial assets amounted to DKK 1,374m in 2025 (2024: DKK 2,050m) due to positive financial markets.

In 2025, the Group's interest expenses decreased, primarily due to positive cash generation from operating and investing activites, which reduced funding requirements.

Accounting policies

Financial income and expenses comprise interest, realized and unrealized exchange rate adjustments, fair value adjustment of cash-settled share-based incentive plans, and fair value adjustments of financial assets and liabilities.

Fair value adjustments of currency derivatives transferred from other comprehensive income and fair value adjustments recognized for fair value hedges are presented under gain arising on forward foreign exchange contracts

in financial income or under loss arising on forward foreign exchange contracts in financial expenses.

Interest income and expenses from financial assets and liabilities are calculated using the effective interest method. For instance, the value of a loan, which includes any potential establishment costs, is measured at amortized cost and serves as the basis for calculating the reported interest method.

Note 5.2

Financial risks

Financial portfolio risks

Financial portfolio risks are managed according to LEO Holding's investment policy, which has been approved by LEO Holding’s Board of Directors. The investment policy states the strategic asset allocation and the boundaries for each asset class within which tactical asset allocation positions can be taken.

Furthermore, the policy defines the limits on counterparty risk, overall interest rate risk and liquidity of the financial portfolio.

The credit risk on investments in bonds is limited, as all bonds either have a high rating assigned by Moody’s, Standard & Poor’s or Fitch, or are part of highly diversified mandates with limited exposure to a single issuer. The credit risk on cash and bank balances is limited, as the Group only engages with banks with high credit ratings. The credit risk on derivatives is mitigated through collateral management agreements with counterparty banks.

Interest rate risk relates to the bonds in the investment portfolio, where a 1 percentage point increase in the interest rate would result in a decrease in the Group’s profit/(loss) of DKK 29m, while a 1 percentage point decrease in the interest rate would have the opposite effect.

Equity risk arises from investments in listed shares. The investment policy limits the regional exposure within the portfolio and the weighting of an individual share. If deemed appropriate, overall equity risk can quickly be reduced through equity future overlay.

Currency risk arises when investments are made in currencies other than DKK. Currency risk is hedged for all fixed-income exposure (except EUR), while equity investments generally have full currency exposure, but with the possibility to hedge fully or partially. For the investment portfolio, the major currency exposure is related to USD; had the USD been 5% weaker versus DKK at December 31, 2025, this would have resulted in a decrease in the Group’s profit/(loss) of DKK 313m and an increase of the same amount had the USD been 5% stronger.

Alternative investments (illiquid unlisted assets) follow the same principles as listed assets.

Operational financial risks

LEO Pharma is exposed to several financial risks arising from its worldwide operating, investing and financing activities, including foreign exchange risk, liquidity risk, interest rate risk and credit risk. Financial risk management is conducted by the Group's treasury department in accordance with objectives and policies approved by the Board of Directors. The treasury policies cover funding, trade credit, foreign exchange and interest risks, and were updated in 2025 with regard to foreign exchange exposure and related hedging activities. The Group uses derivative financial instruments to hedge certain exposures, and the use of derivatives for speculative purposes is prohibited.

Foreign exchange risk

LEO Pharma is exposed to foreign exchange risk related to commercial transactions, primarily in USD, CAD, CNY and GBP. The Group's general policy is to minimize this exposure by matching inflows and outflows and by hedging a proportion of the unmatched flow, balance and cash positions denominated in foreign currencies according to the Treasury Policy.

The Group primarily uses FX forward contracts to hedge cash flows and foreign currency balance sheet items. Cash flow hedges are made on a 15-month rolling basis. LEO Pharma designates foreign exchange derivatives as either cash flow or fair value hedges. Please refer to Note 5.3 Derivative financial instruments.

Sensitivity analysis for foreign exchange risk

The sensitivity analysis below illustrates the potential impact on LEO Pharma's income statement and equity of fluctuations in the key currencies to which LEO Pharma is significantly exposed as at the balance sheet date. The sensitivity analysis is based on a 5% increase in the key currencies, with all other variables, including interest rates, held constant. It covers cash and cash equivalents, current receivables, trade payables, current and non-current loans, intercompany balances and forward exchange rate contracts as at December 31.

Foreign currency sensitivity analysis

Sensitivity of an immediate 5% increase in key currencies on December 31 versus DKK:

An immediate decrease of 5% would have the opposite impact.

Liquidity risk

The Group maintains a financial reserve to cover contractual obligations, and holds sufficient liquidity reserves and available resources to explore investment opportunities.

THE GROUP'S LIQUIDITY RESERVES AT DECEMBER 31

Financing facilities

The Group's syndicated facility agreement, which expires on January 1, 2029, includes loan covenant terms linked to financial metrics based on EBITDA for selected business areas. Compliance is measured quarterly. As at December 31, 2025 the carrying amount of loans subject to this covenant was DKK 7,120m (2024: DKK 8,678m).

LEO Pharma has complied with all covenant requirements throughout the year with significant headroom to the applicable thresholds.

Based on the Group's financial plans and strategy for the coming year, Management does not anticipate any difficulties in meeting the covenant requirements for the next 12 months, as headroom remains significant and is expected to increase further.

Other non-cash items for loans and overdraft facilities mainly comprise amortization of costs and fees that are directly attributable to recognition of loans and minor exchange rate adjustments.

Financial risks (continued)

MATURITY ANALYSIS

Interest rate risk

LEO Pharma`s major non-current loan related to the syndicated facility has a floating interest rate. Fluctuations in interest rates pose a risk for financial expenses. To mitigate the interest rate risk, LEO Pharma enters into interest rate swaps and collars as hedge instruments, subject to the Treasury policy. The weighted average effective interest rate, including the hedging instruments, for the utilized syndicated facility was 4.37% (2024: 5.56%). LEO Pharma designates the hedging instruments for interest rate risk as cash flow hedges. No ineffectiveness was observed in 2025 or 2024. The interest rates on mortgage loans will be renewed in the period from 2026 to 2028.

Sensitivity analysis for interest rate risk

A 1 percentage point increase in floating interest rates would result in a net increase in interest expenses in the income

statement for the year of DKK 19m (2024: DKK 19m) and increase other comprehensive income by DKK 101m (2024: DKK 102m).

The calculation applied in the sensitivity analysis is based on LEO Pharma's interest-bearing debt and the change in fair value of the interest hedging instruments as at December 31.

The calculation method applied in the sensitivity analysis is based on the current duration of unhedged floating-rate interest-bearing debt at December 31 and the change in fair value of the interest hedging instruments.

Net interest-bearing debt

The net interest-bearing debt (NIBD) is the interest-bearing liabilities less cash and cash equivalents.

The maturity analysis is based on non-discounted contractual cash flows, including interest. Future interest payments are determined based on market expectations at December 31.

Other non-current liabilities of DKK 285m (2024: DKK 464m) in the consolidated balance sheet include DKK 0m (2024: The analysis assumes that derivatives

INTEREST-BEARING LOANS WITH BANKING PARTNERS

Credit risk

Credit risk primarily refers to the potential losses or reduction in cash flow in the event that customers are unable to fulfill their obligations in a timely manner.

LEO Pharma's trade receivables are spread across many counterparties and customers, and the Group therefore has no significant concentration of credit risk. Historically, realized losses on trade receivables have been insignificant. Please refer to Note 4.1 Trade receivables.

A financial counterparty risk also arises when entities within the Group hold deposits at financial institutions. To mitigate this risk, surplus cash positions in the subsidiaries are centralized by treasury and held in the current accounts of subsidiaries. If a

financial institution has a rating below Investment grade, treasury adopts a stricter policy of maintaining the lowest possible bank balance.

Transactions involving derivative financial instruments are exclusively conducted with banks that participate in the Group's syndicated loan facility.

Note 5.3

Derivative financial instruments

Foreign exchange contracts

LEO Pharma manages foreign currency risk on highly probable forecast sales and purchases using a layered hedging strategy. This involves covering approximately 80% of the net exposure for the next quarter, with the hedge ratio gradually reduced to about 25% for exposures five quarters ahead.

Cash flow hedges

The designated financial contracts are expected to impact the income statement over the next 15 months as the cash flow hedges mature and amounts are reclassified from other comprehensive income to financial income or financial expenses. LEO Pharma performs both quantitative and qualitative assessments of the effectiveness of its cash flow hedges. The value of the hedged items is expected to move systematically in the opposite direction to the value of the hedging instruments. Hedge effectiveness is assessed on both a retrospective and prospective basis. No ineffectiveness was observed in 2025 or 2024.

Fair value hedges

LEO Pharma applies fair value hedge accounting to mitigate exposure to changes in the fair value of recognized assets and liabilities attributable to foreign currency risk. In 2025, a fair value gain on forward foreign exchange contracts of DKK 16m was recognized in the income statement under financial income (2024: DKK 78m). Future impacts will depend on market exchange rate movements, with fair value adjustments being recognized directly in profit or loss as they occur.

Interest rate hedges

As described in Note 5.2 Financial risks, LEO Pharma has entered into hedging arrangements to mitigate the exposure to floating interest rate risk arising from its syndicated loan facility. To mitigate the currency risks described in Note 5.2 Financial risks,

LEO Pharma has entered into FX forward contracts as hedging instruments, maturing within 15 months from the balance sheet date. The notional value of interest hedges includes the value of interest rate swaps with forward start and, following the expiry of

FOREIGN EXCHANGE CONTRACTS

active contracts, amounts to DKK 3,600m as at December 31, 2025 (2024: DKK 2,500m for interest rate swap and collar). The interest rate swaps and collars outstanding as at December 31, 2025 are denominated in DKK and mature between 2026 and 2030.

Derivative financial instruments (continued)

Accounting policies

Derivative financial instruments

Derivative financial instruments are used to manage the exposure to interest rate and foreign exchange rate risk. On initiation of the contract, LEO Pharma designates each derivative financial contract as either a hedge of the fair value of a recognized asset or liability (fair value hedge) or as a hedge of a future transaction (cash flow hedge).

All contracts are initially recognized at fair value and subsequently remeasured at fair value at the end of the reporting period. The resulting gain or loss is recognized in the income statement immediately, unless the derivative is designated and effected as a cash flow hedging instrument. In this case the timing of recognition in the income statement depends on the nature of the hedging relationship.

Forward foreign exchange contract assets and liabilities are presented as either other receivables or other payables in the balance sheet.

Hedge accounting

The fair value adjustment of qualifying hedging instruments is recognized in the income statement when the hedging instrument is designated as a fair value hedge. Value adjustments of the effective part of cash flow hedges are recognized in equity through other comprehensive income.

The cumulative value adjustment of these contracts is transferred from other comprehensive income to the income statement under financial income or financial expenses.

Discontinuation of cash flow hedging

When a hedging instrument expires or is terminated but the hedge still meets the criteria for hedge accounting, any cumulative gain or loss existing in equity at that time remains in equity and is recognized when the forecast transaction is ultimately recognized in the income statement.

If a forecast transaction is no longer expected to occur, the cumulative gain or loss that was reported in equity is immediately transferred to the income statement under financial income or financial expenses.

Note 5.4

Financial assets and liabilities by category

ASSETS AND LIABILITIES AT FAIR VALUE

Fair value measurements

The fair value of derivative financial instruments is measured on the basis of quoted market prices of financial instruments traded in active markets (Level 1). If an active market exists, the fair value is based on the most recently observed market price at the end of the reporting period. If a financial instrument is quoted in a market that is not active, the valuation is based on the most recent transaction price. Adjustment is made for subsequent changes in market conditions, for instance by including transactions in similar financial instruments assumed to be motivated by normal business considerations.

If an active market does not exist, the fair value of standard and simple financial instruments, such as forward foreign exchange

contracts, interest rate swaps and unlisted bonds and shares, is measured according to generally accepted valuation techniques (Level 2). Market-based parameters are used to measure the fair value.

When no observable market data exists, the fair value is measured according to generally accepted valuation techniques (Level 3 input).

The valuation for alternative investments is based on the most recently reported net asset

(NAV) adjusted for capital calls, capital

and pricing development (if relevant).

Note 5.4

Financial assets and liabilities by category (continued)

Accounting policies

Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilites at fair value through profit and loss) are added to or deducted from the fair value of the financial assets or financial liabilities on initial recognition.

Financial assets

Other financial assets presented under non-current assets consist of equity investments and bonds. Other financial assets are subsequently measured at fair value through profit and loss.

The Group's other financial securities, which comprise listed bonds, shares, credit, and listed and unlisted alternatives, are classified as current assets and measured at fair value through profit and loss.

Financial liabilities

LEO Pharma's liabilities to credit institutions and banks are recognized at the borrowing date at fair value of the proceeds received less transaction costs paid.

Subsequently, the financial liabilities are measured at amortized cost, corresponding to the capitalized amount calculated using the effective interest rate. Consequently, the difference between the proceeds and the nominal value is recognized in the income statement throughout the duration of the loan.

Fair value hierarchy

Financial instruments measured at fair value can be divided into three categories:

Level 1 – Quoted prices (unadjusted) in active markets for identical assets or liabilities

Level 2 – Observable input. If an active market does not exist, the fair value of financial instruments is based on observable input for the asset or liability, either directly (i.e., prices) or indirectly (i.e., derived from prices)

Level 3 – Inputs for assets or liabilities that are not based on observable market data

Note 5.5

Foundation capital

The nominal value of the Foundation capital amounts to DKK 98m (2024: DKK 98m).

Key accounting estimates and judgments

Estimate of fair value of unlisted investments

Assessment of the fair value of investments not based on observable market data is subject to uncertainty. For investments in alternatives (Level 3), fair value is based on the most recently reported NAV adjusted for capital calls, capital returns and pricing development (if relevant).

Note 6.1

Management remuneration

Remuneration of Peter Haahr, CEO

Remuneration in the LEO Foundation Group:

Remuneration of the Board of Trustees

In accordance with the governance recommendations issued by the Danish Committee on Foundation Governance, the LEO

The Chair and the Vice Chair do not receive separate remuneration for committee work in standing committees.

Foundation discloses the following information about the Board of Trustees (with the exception of employee-elected members):

LEO Pharma offered all employees the opportunity to participate in share-based incentive programs: programs covering all employees (Employee Share Purchase Plan) and programs for selected members of Management (Management Incentive Program and long-term incentive plans).

The intrinsic value at December 31, 2025 of the liability related to vested phantom shares and warrants was DKK 250m (2024: DKK 208m). Total expenses recognized in 2025 for share-based payment transactions in the income statement amounted to DKK 83m (2024: DKK 69m), of which DKK 36m was fair value adjustments of the cash-settled programs recognized under financial expenses (2024: DKK 25m). The total cost of DKK 45m (2024: DKK 38m) arose from equity-settled share-based payment transactions.

Employee Share Purchase Plan (ESPP & EPSPP)

The Group launched voluntary employee share-based programs in both 2022 and 2024, giving all employees with permanent contracts the opportunity to buy shares in LEO Pharma A/S ("employee shares"). In 2025, 289,533 matching shares vested from the 2022 program. The remaining part of the 2022 program and the 2024 program vest upon the conditions below. To participate in the plan, the employees were required to invest 3% of their base salary over 12 months into shares. In addition, employees

received the right to an additional matching share for each employee share bought, subject to continued employment, vesting toward a potential public listing. A further requirement for vesting is the LEO Pharma share having a fair value of at least the same as at the time of subscription (2022 program: at least 1.5 times). In the event of non-listing, the shares vest after eight years of continued employment (2022 program: 10 years) and will be cash-settled. Management considers it more likely than not that a listing will be completed within the vesting period and thus considers matching shares that would otherwise not be cash-settled as equity-settled programs.

2024: The fair value of granted awards is estimated using a binomial valuation model that incorporates market conditions and the terms and conditions upon which the awards were granted, excluding vesting conditions. The inputs used to measure the average fair value of DKK 92.33 at the grant date for the ESPP and the EPSPP programs were: expected volatility (weighted average) of 28.4%, expected life (weighted average) of 3 years, a risk-free interest rate of 1.78-2.17%, and no dividends. The programs are split into both equity-settled programs (ESPP) and cash-settled programs (EPSPP); the latter are used where there are local restrictions on employee shares or equity-settled programs. Both types follow the same vesting conditions, vesting periods, requirements etc.

Reconciliation of outstanding employee awards

Note 6.2

Share-based payment (continued)

Management Incentive Program (MIP & MIP Phantom)

Some members of Management received warrants as part of their long-term incentive program. They must remain employed by the Group until the vesting date, which is the earlier of a public listing and seven years after the grant date. The market condition of the warrants stipulates a fair value increase in LEO Pharma shares to at least 1.5 times the subscription price. Further, the total number of vested warrants is capped at three times the subscription value. In the event of non-listing, the warrants become exercisable after seven years and will be cash-settled.

Management considers it more likely than not that a listing will be completed within the vesting period and thus considers warrants that would otherwise not be cash-settled as equity-settled programs.

The programs are split into both equity-settled programs (MIP) and cash-settled programs (MIP Phantom); the latter are used where there are local restrictions on employee shares or equity-settled programs. Both types follow the same vesting conditions, vesting periods, requirements etc.

2024: The fair value of awards granted in 2024 was estimated using a binomial valuation model incorporating market conditions and the relevant terms and conditions. Expected volatility was based on an evaluation of the historical volatility of comparable companies’ share prices, calculated as the standard deviation of weekly returns over a five-year period. The expected term of the instruments was determined based on projected exit dates, probabilities and estimates assessed by Management. Key assumptions used in calculating the fair value of the awards include: a fair value at grant date of DKK 43.26-44.45 per share, an expected volatility (weighted average) of 28.4%, an expected life (weighted average) of 3 years, and a risk-free interest rate of 1.78-2.17%.

Reconciliation of outstanding Management awards

Accounting policies

For equity-settled share-based payment arrangements, the warrants and shares granted are measured at fair value at grant date and recognized as an employee cost over the vesting period with a corresponding entry in equity reserves.

On initial recognition, an estimate is made of the number of awards expected to vest. Subsequently, the amount recognized is adjusted to reflect the number of awards for which the service and non-market performance conditions

are expected to be met and awards expected to vest. For cash-settled share-based payment arrangements, the awards measured at grant value are recognized as employee costs over the vesting period against a liability in the balance sheet. The liability is remeasured at each reporting date and ultimately at settlement date at fair value. Any changes in the liability as a result of the remeasurement to fair value are recognized in the income statement under other financial expenses.

Long-term incentive plans (LTIPs)

In 2025, long-term incentive plans (LTIPs) were granted to the Global Leadership Team and certain key employees of the Group using performance share units (PSUs) as well as restricted share units (RSUs). The granted LTIPs are considered equity-settled.

The LTIPs granted in 2025 have a three-year performance period, subject to continued employment with LEO Pharma, after which vested PSUs and RSUs are converted into shares in LEO Pharma A/S. At the start of the performance period for the PSUs, the Board established non-market performance KPIs, which determine the total number of vested PSUs. These targets define thresholds for on-target and maximum performance levels. The targets include revenue growth, adjusted EBITDA margin and return on invested capital. If the total value of the vested PSUs or RSUs exceeds a maximum threshold of four times the initial grant value, the number of PSUs and RSUs that actually vest will be reduced as necessary to reach the maximum threshold.

During 2025, a total of 581,262 PSUs and 50,318 RSUs were granted. The total fair value at grant is recognized as an expense over the performance period and will subsequently be revised during the vesting period to reflect the number of PSUs and RSUs expected to vest, based on actual performance against the target KPIs.

The total fair value at grant was DKK 71m, and is determined as the estimated fair value of one share in LEO Pharma A/S using a discounted cash flow valuation model, adjusted for the fair value of the cap on the number of PSUs and RSUs expected to vest. The fair value of the granted instrument (PSUs and RSUs) should not be mistaken for the fair value of the underlying share in LEO Pharma A/S. The calculation of the PSU/RSU fair value included an expected volatility of 26.7%, a risk-free interest rate of 1.8% and an expected lifespan of 3 years. The determination of the fair value of the cap at the grant date takes into consideration probable performance levels and is calculated using a Black-Scholes valuation model. No dividends are expected during the vesting period.

Guarantees, contingencies and commitments

Guarantees

The majority of the guarantees in LEO Pharma pertain to performance guarantees related to tender sales. The total guarantee commitments for LEO Pharma amount to DKK 68m at December 31, 2025 (2024: DKK 110m).

Contractual obligations and commitments

LEO Pharma's contractual obligations not recognized in the consolidated financial statement mainly comprise milestone payments for the development of new products related to acquisition of intellectual property rights. At December 31, 2025, potential future research and development milestone payments and commitments under collaboration amount to DKK 978m (2024: DKK 92m). The timing of these payments is uncertain, as part of the obligations depends on the achievement of specific development and regulatory milestones.

Commercial sales milestones, royalties and other sales-based payments are excluded from contractual obligations, as they are contingent on future sales performance. Commitments relating to intangible assets other than research and development milestones and collaborations relate to software and amount to DKK 113m (2024: DKK 92m).

Commitments relating to property, plant and equipment amount to DKK 12m at December 31, 2025 (2024: DKK 39m) and relate primarily to manufacturing sites. LEO Pharma has agreements with contract manufacturing organizations (CMOs) for the supply of active pharmaceutical ingredients (APIs) and other materials, based on demand forecasts provided by the Group. If actual market demand falls below forecasted volumes, the Group may be obligated to pay for surplus materials or excess capacity reservation fees. Management regularly reviews and updates demand

forecasts, and when inventory or reserved capacity at CMOs is expected to exceed usage, a provision is recognized.

The Group has commitments relating to financial investments of DKK 5,109m (2024: DKK 3,908m).

Pending lawsuits

At the end of 2025, there are pending lawsuits filed by and against LEO Pharma concerning rights and claims related to products in LEO Pharma’s portfolio. LEO Pharma currently does not expect these or other pending cases to have any significant effect on the Group’s financial position.

LEO Pharma is involved in a number of legal proceedings. In the opinion of Management, the outcome of these proceedings is not currently assessed to have a material impact on the financial

position or cash flows. Such proceedings may, however, develop over time, and new proceedings may occur that could have a material impact on LEO Pharma’s financial position and/or cash flows.

Tax

As a global business, LEO Pharma will from time to time have tax audits, and engages in discussions with tax authorities in various jurisdictions on a range of tax matters, transfer pricing and indirect taxes. For a description of uncertain tax positions, please refer to Note 2.4 Tax.

Note 6.6

Related party transactions

The LEO Group’s related parties comprise:

• The associate SkinVision B.V.

• Members of the LEO Foundation's Board of Trustees and Executive Board as well as close relatives of these persons.

• Companies in which the members of the Board of Trustees and the Executive Board have a controlling influence.

Owner with non-controlling interest in LEO Pharma A/S:

• Nordic Capital (through Cidron Savanna 4 SARL).

There were no transactions with related parties besides remuneration. For information on remuneration, please refer to Note 6.1 Management remuneration.

Note 6.7 Non-controlling interests

The LEO Foundation owns 81.0% of the shares in LEO Pharma A/S, and holds 95.91% of the voting rights.

The LEO Group's subsidiaries with significant non-controlling interests:

and by

attributable to

Note 6.8

Events after the balance sheet date

No events have occurred in the period from the balance sheet date until the presentation of the financial statements that materially affect the assessment of the Annual Report.

6.9 Companies in the LEO Group

LEO FOUNDATION

Income statement

Balance sheet at December 31

Statement of changes in equity

LEO FOUNDATION

Basis of reporting

Note 1.1

Accounting policies

Accounting policies

The Financial Statements of the Parent Company, the LEO Foundation, for 2025 have been prepared in accordance with the provisions of the Danish Financial Statements Act applying to large enterprises of reporting class C.

The accounting policies are unchanged from the previous year.

The Parent Company’s accounting policies for recognition and measurement are consistent with the policies used in the consolidated financial statements except for IFRS 16 Leases, which has not been implemented for the Parent Company.

Cash flow statement

In accordance with the exemption clause in section 86(4) of the Danish Financial Statements Act, no separate cash flow statement has been prepared for the Parent Company.

Investments in subsidiaries

Investments in subsidiaries are measured under the equity method. This means that the subsidiaries are measured in the balance sheet at the proportionate share of their net asset value, with deduction or addition of unrealized intercompany profits or losses, and with addition of any remaining value of positive differences (goodwill) and deduction of any remaining value of negative differences (negative goodwill). The Parent Company’s share of the subsidiaries’ profit for the year is recognized in the income statement less unrealized intercompany profits.

The total net revaluation of investments in subsidiaries is transferred upon distribution of profit to the reserve for net revaluation under equity under the equity method. The reserve is reduced by dividends distributed to the Parent Company and adjusted for other equity movements in subsidiaries.

Operating profit

Note 2.1

Remuneration of the Board of Trustees amounted to DKK 2.9m (2024: DKK 2.3m). For a specification of the remuneration of the Board of Trustees and Executive Board, please refer to Note 6.1 to the

financial statements.

Dilution gain or loss as a result of change in ownership of investments in subsidiaries is recognized directly in equity. Note 2.2

Proposed distribution of net profit/(loss) for the year

The nominal value of the Foundation capital is DKK 98m (2024: DKK 98m).

Other disclosures

Note 6.1 Audit fees

Note 6.2 Contingencies

The LEO Foundation has lease obligations of DKK 1m (2024: DKK 1m).

The LEO Foundation has no guarantee commitments or pledges.

Note 6.3

Related parties

The LEO Foundation’s related parties with significant influence comprise the LEO Foundation’s Board of Trustees and Executive Board, LEO Holding A/S, and LEO Pharma A/S and its subsidiaries.

For information regarding remuneration of the Board of Trustees and administrative costs, please refer to Note 2

Transactions and balances with LEO Pharma A/S were as follows:

• Expenses of DKK 0m (2024: DKK 0.1m).

Note 6.4

Events after the balance sheet date

No events have occurred in the period from the balance sheet date until the presentation of the financial statements that materially affect the assessment of the Annual Report.

Transactions and balances with LEO Holding A/S were as follows:

• A short-term loan of DKK 1,830m (2024: DKK 1,565m) and interest of DKK 51.3m (2024: DKK 55.3m).

• Income from LEO Holding A/S of DKK 7.1m (2024: DKK 6.9m).

The LEO Foundation had no other transactions with related parties.

In 2025, the LEO Foundation had no transactions with related undertakings (as defined in the Recommendations on Foundation Governance section 2.2.3).

Management statement

The Executive Board and the Board of Trustees have today considered and adopted the Annual Report of the LEO Foundation for the financial year January 1 – December 31, 2025.

The consolidated financial statements have been prepared in accordance with International Financial Reporting Standards as endorsed by the EU, and the financial statements of the Parent Company and the Management review have been prepared in accordance with the Danish Financial Statements Act.

In our opinion, the consolidated financial statements and the financial statements of the Parent Company give a true and fair view of the financial position at December 31, 2025 of the Group and the Parent Company, and the results of the Group's and the Parent Company’s operations and consolidated cash flows for 2025.

In our opinion, the Management review gives a true and fair view of the matters addressed therein.

EXECUTIVE BOARD

CEO

Copenhagen, March 20, 2026

BOARD OF TRUSTEES

Anja Boisen

Jannie Kogsbøll

Independent auditor’s report

TO THE BOARD OF TRUSTEES OF LEO FONDET

Opinion

We have audited the Consolidated Financial Statements and the Parent Financial Statements of LEO Fondet for the financial year January 1, 2025 - December 31, 2025 which comprise the income statement, balance sheet, statement of changes in equity and notes, including material accounting policy information, for the Group as well as the Parent, and the statement of comprehensive income and cash flow statement of the Group. The Consolidated Financial Statements are prepared in accordance with IFRS Accounting Standards as adopted by the EU and additional requirements of the Danish Financial Statements Act, and the Parent Financial Statements are prepared in accordance with the Danish Financial Statements Act.

In our opinion, the Consolidated Financial Statements give a true and fair view of the Group’s financial position at December 31, 2025, and of the results of its operations and cash flows for the financial year January 1, 2025 - December 31, 2025, in accordance with IFRS Accounting Standards as adopted by the EU and additional requirements of the Danish Financial Statements Act.

Furthermore, in our opinion, the Parent Financial Statements give a true and fair view of the Parent’s financial position at December 31, 2025, and of the results of its operations for the financial year January 1, 2025 - December 31, 2025 in accordance with the Danish Financial Statements Act.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (ISAs) and the additional requirements applicable in Denmark. Our responsibilities under those standards and requirements are further described in the "Auditor’s responsibilities for the audit of the Consolidated Financial Statements and the Parent Financial Statements" section of this auditor’s report. We are independent of the Group in accordance with the International Ethics Standards Board for Accountants’ International Code of Ethics for Professional Accountants (IESBA Code) and the additional ethical requirements applicable in Denmark, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the IESBA Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Statement on the Management Review

Management is responsible for the Management's review.

Our opinion on the Consolidated Financial Statements and the Parent Financial Statements does not cover the Management's review, and we do not express any form of assurance conclusion thereon.

In connection with our audit of the Consolidated Financial Statements and the Parent Financial Statements, our responsibility is to read the Management's review and, in doing so, consider

whether the Management's review is materially inconsistent with the Consolidated Financial Statements and the Parent Financial Statements or our knowledge obtained in the audit or otherwise appears to be materially misstated.

Moreover, it is our responsibility to consider whether the Management's review provides the information required by relevant laws and regulations.

Based on the work we have performed, we conclude that the Management's review is in accordance with the Consolidated Financial Statements and the Parent Financial Statements and has been prepared in accordance with the information required by relevant laws and regulations. We did not identify any material misstatement of the Management's review.

Management’s responsibilities for the Consolidated Financial Statements and the Parent Financial Statements

Management is responsible for the preparation of Consolidated Financial Statements that give a true and fair view in accordance with IFRS Accounting Standards as adopted by the EU and additional requirements of the Danish Financial Statements Act as well as the preparation of Parent Financial Statements that give a true and fair view in accordance with the Danish Financial Statements Act, and for such internal control as Management determines is necessary to enable the preparation of Consolidated

Financial Statements and Parent Financial Statements that are free from material misstatement, whether due to fraud or error.

In preparing the Consolidated Financial Statements and the Parent Financial Statements, Management is responsible for assessing the Group’s and the Parent’s ability to continue as a going concern, for disclosing, as applicable, matters related to going concern, and for using the going concern basis of accounting in preparing the Consolidated Financial Statements and the Parent Financial Statements unless Management either intends to liquidate the Group or the Foundation or to cease operations, or has no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the Consolidated Financial Statements and the Parent Financial Statements

Our objectives are to obtain reasonable assurance about whether the Consolidated Financial Statements and the Parent Financial Statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs and the additional requirements applicable in Denmark will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of

users taken on the basis of these Consolidated Financial Statements and Parent Financial Statements.

As part of an audit conducted in accordance with ISAs and the additional requirements applicable in Denmark, we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the Consolidated Financial Statements and the Parent Financial Statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group’s and the Parent’s internal control.

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by Management.

• Conclude on the appropriateness of Management’s use of the going concern basis of accounting in preparing the Consolidated Financial Statements and the Parent Financial

Statements, and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group's and the Parent’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the Consolidated Financial Statements and the Parent Financial Statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Group and the Entity to cease to continue as a going concern.

• Evaluate the overall presentation, structure and content of the Consolidated Financial Statements and the Parent Financial Statements, including the disclosures in the notes, and whether the Consolidated Financial Statements and the Parent Financial Statements represent the underlying transactions and events in a manner that gives a true and fair view.

• Plan and perform the group audit to obtain sufficient appropriate audit evidence regarding the financial information of the entities or business units within the group as a basis for forming an opinion on the consolidated financial statements and the parent financial statements. We are responsible for the direction, supervision and review of the audit work performed for purposes of the group audit. We remain solely responsible for our audit opinion.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

Copenhagen, March 20, 2026

Deloitte

Statsautoriseret Revisionspartnerselskab

Business Registration No 33 96 35 56

Vad Dons

State Authorized

Public Accountant

MNE no. 25299

State Authorized

Public Accountant

MNE no. 34532

Foundation information

LEO Foundation

LEO Fondet

Lautrupsgade 7, 5

2100 Copenhagen Ø

Denmark

CVR no.: 11 62 33 36

Financial year: January 1 – December 31

Executive Board

Peter Haahr, CEO

Board of Trustees

Lars Olsen, Chair

Eivind Kolding, Vice Chair

Anja Boisen

Allan Carsten Dahl

Cristina Patricia Lage

Franck Maréno

Jannie Kogsbøll

Karin Jexner Hamberg

Lars Green

Lotte Hjortshøj

Peter Schwarz

Auditors

Deloitte Statsautoriseret Revisionspartnerselskab

Weidekampsgade 6

2300 Copenhagen S

Denmark

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