Cosmo: Cosmo Pharmaceuticals N : ESG Report 2024

Cosmo Pharmaceuticals Environmental, Social and Governance Report 2024 General Information Governance Environment Social Appendix Beyond reporting Cosmo Pharmaceuticals ESG Report 1 Contents General Information CEO's Statement 2 About this report 4 We are Cosmo 5 2024 ESG Highlights 11 Sustainability at Cosmo 13 Stakeholder engagement & 14 materiality analysis Governance Corporate governance 18 Executive management 20 Risk management 22 Business ethics 25 Environment Our environmental strategy 29 Environment management system 30 Climate change 31 Air quality & atmospheric emissions 34 Energy management 35 Waste management 36 Water management 38 Pollution prevention and control 39 Use, disposal and transportation of 39 products Social Our commitment 41 Our people 42 Our production plant 53 Our clinical trials 54 Our community 56 Appendix I. Financial Performance 57 2. Non-Financial Information 61 Beyond reporting 63 Some of the statements in this publication may be forward-looking statements or statements of future expectations based on currently available information. Such statements are naturally subject to risks and uncertainties. Factors such as the development of general economic conditions, future market conditions, unusual catastrophic loss events, changes in the capital markets and other circumstances may cause the actual events or results to be materially different from those anticipated by such statements. Cosmo does not make any representation or warranty, express or implied, as to the accuracy, completeness or updated status of such statements. Therefore, in no case whatsoever will Cosmo and its affiliate companies be liable to anyone for any decision made or action taken in conjunction with the information and/or statements in this press release or for any related damages. General Information Governance Environment Social Appendix Beyond reporting Cosmo Pharmaceuticals ESG Report 2 CEO's Statement At Cosmo, we recognise that long-term success is deeply intertwined with our ability to create value for all stakeholders - employees, customers, investors, communities, and the planet. Our sustainability strategy is built on three key pillars: Environmental Stewardship, Social Responsibility, and Strong Governance. We are committed to sustainability and the implementation of sustainable business practices across our operations. Social Responsibility Our people are at the heart of our success. We have strengthened our commitment to diversity, equity, and inclusion, aiming for 35% women in management and 45% women in middle management by 2028. We have made a commitment to gender pay equality and set a target to halve our current gender pay gap by 2030. Furthermore, we have enhanced workplace safety, invested in employee development programs, and supported community initiatives that drive positive social impact. Bord oversight and our commitment to Strong Governance Our Board of Directors plays a crucial role in embedding ESG principles into our long-term strategy. Recognizing the growing importance of sustainability, the board, supported by an ESG committee, has established dedicated ESG oversight mechanisms, ensuring that environmental and social considerations are integrated into decision-making processes. In 2024, we actively engaged with stakeholders to identify material topics, reviewed ESG performance metrics, set aggressive GHG reduction targets and set diversity and gender pay targets. Through continuous learning and adaptation, we remain committed to aligning our corporate strategy with global sustainability goals. Niall Donnelly has been appointed as our Chief Sustainability Officer, bringing his extensive experience and dedication to this crucial role. As a board member, Niall will ensure that our sustainability initiatives are integrated into our core strategies and operations. Environmental Stewardship We are taking decisive steps to reduce our environmental footprint and have set ambitious targets to reduce our scope 1 & scope 2 emissions by 15% by 2025 and by 50% by 2030, with the ultimate goal of achieving net-zero emissions by 2035. This is guided by our comprehensive GHG Risk Management framework, which identifies and mitigates potential climate-related risks while capitalising on opportunities for sustainable growth. Our initiatives also include comprehensive waste management, responsible water usage, and the integration of renewable energy sources. Commitment to Strong Governance Integrity and ethical business practices remain the foundation of our operations. Our board receives regular updates in relation to ESG matters and has set aggressive targets to reduce our own GHG emissions. Female representation was increased on the board during 2024, reinforcing our commitment to diversity and inclusion and a comprehensive Human Capital Development strategy was approved by the board. Giovanni Di Napoli CEO General Information Governance Environment Social Appendix Beyond reporting Cosmo Pharmaceuticals ESG Report 3 CEO's Statement (continued) Business Update 2024 has been a pivotal year for Cosmo Pharmaceuticals, defined by disciplined capital allocation, strategic investments in high-growth opportunities, and significant advancements in AI and pharmaceuticals. Our commitment remains steadfast, deploying capital where we see the highest potential return and continuing to invest in our people. Revenues were €266.8 million, of which project-based revenues were €190 million, driven by GI Genius and Winlevi milestones, and 2024 operating profit was €148.9 million. We continued to deliver strong cash flows, generating €162.2 million in cash from operating activities. Cosmo's financial position has never been stronger with €170.4 million in cash, equivalents, and investments with no debt, providing financial flexibility and security. Our core business is profitable, with strong margins and top-line growth. Disciplined capital allocation, balancing growth investments, dividends, and share repurchases to maximize shareholder returns. We are proposing to pay an increased dividend of €2.05 per share, subject to shareholder approval at our forthcoming AGM in May. With no debt and cash of €170.4 million, we have the flexibility to aggressively invest in innovation while simultaneously returning value to shareholders. AI is revolutionizing medicine, and Cosmo is at the forefront of this transformation. Our AI-powered GI Genius remains the world's first and only FDA-approved AI- assisted colonoscopy tool, with an expanding global installed base. The latest iteration of Cosmo's polyp detection SaMD (Software as a Medical Device) features significantly improved performance. For the first time, it includes postprocedural insights generated by advanced AI, further enhancing its value in clinical practice. Recognizing AI's vast potential in healthcare, we made a strategic decision to deepen our investment in AI, ensuring Cosmo remains the leading innovator in AI-driven endoscopy. This commitment was underscored by our landmark new agreement with Medtronic, which include $100 million upfront payment, received in Q1 2024, a second $100 million payment, received at the end of 2024 and double-digit royalties on Medtronic's net sales. Beyond GI Genius , our AI Innovation Centre has emerged as a global hub for AI-driven healthcare applications, offering an end-to- end development and validation platform for third-party AI solutions. This positions Cosmo as a central enabler of AI innovation in endoscopy and beyond. Clinical Trials Update Our clinical trials are designed to the highest scientific and clinical standards. All clinical trial procedures follow a set of standards to protect the rights, dignity, safety, and well- being of clinical trial research participants. We have completed Phase III trial enrollment for our androgenetic alopecia treatment in men in the U.S. and Europe. The potential is enormous, as male androgenetic alopecia is the most common form of hair loss, affecting 30-50% of men by age 50, translating to millions of individuals globally. This represents a multi-billion-euro market opportunity with a significant unmet medical need. Cosmo is positioned to deliver the first major innovation in three decades. Our CB-03-10 program is progressing through Phase Ia trials for advanced refractory solid tumors, with completion expected in H2 2025. After this phase, Cosmo will explore strategic partnership opportunities to further align its R&D portfolio with long-term priorities. We have also started our Phase II proof-of- concept study for our new MMX formulation of colesevelam for Bile Acid Diarrhea (BAD) at the end of 2024. The study is currently active in the UK, with expansion planned across the EU13. BAD represents a significant market and unmet medical need, affecting an estimated 95 million people globally. Additionally, our Phase II study for Rifamycin 1% Enema for Distal Ulcerative Colitis is ongoing across 24 sites in 7 EU countries. Cosmo Pharmaceuticals is actively contributing to Sustainable Development Goal 3 (SDG3), which aims to ensure healthy lives and promote well-being for all. Our existing products and those in development are designed to address significant health challenges and improve the quality of life for patients worldwide. Cosmo Pharmaceuticals is set for continued success in 2025 with our AI-first strategy, disciplined capital use, and focus on high growth markets. By leveraging AI, pharmaceutical innovation, and strategic investments, we aim to lead the future of medicine. We remain resolute in our commitment to sustainability, innovation, and excellence. Our steadfast dedication to reaching our targets will guide us as we continue to create value and make a positive impact on the world around us. Together with our stakeholders, we will forge a path towards a brighter, healthier, and more sustainable future for all. Giovanni Di Napoli CEO General Information Governance Envi