Annual Report 2025

Bavarian Nordic A/S

Philip Heymans Alle 3, DK 2900 Hellerup, Denmark

CVR no: 16271187

A leader now and in the future

With the addition of Vimkunya, we now have several market-leading products in our portfolio, and we are working also to strengthen our position for other prod- ucts. Organic growth is a valuable driver for our Travel Health business, and some products are yet to mature, adding to the potential for future revenue growth.

Organic growth alone is, however, not enough to take us where we want to go, and more importantly, where we need to go. Despite being a leader in the field, we remain vulnerable to the more unpredictable nature of our Public Preparedness business and need more resilience to preserve and build leadership across our portfolio, which can only be achieved by scaling.

With the commercial infrastructure in place and a proven track record of success in implementing and driving further value of acquired assets, we seek to further expand our portfolio to maximize our efforts globally.

Our journey to becoming a leading pure-play vaccine company has been driven by bold decisions but ultimately backed by people. We are now more than 1,800 employees worldwide, dedicated to our mission

to improve and save lives. Many more have been part of the journey over the years since our inception in 1994. I joined Bavarian Nordic only five years later. Back then a small biotech company rooted in science, but now fully transformed into a fully integrated, global vaccine manufacturer, leading in its field, and leaving a strong footprint on public health. It has been a true privilege to lead this organization since 2014, but time has now come for me to start a new chapter in life, and I will be stepping down as CEO in 2026. I want to thank all employees, my fellow members in Executive Management, and the Board of Directors for their trust and collaboration throughout the years. I am proud of the achievements we have made together, which have created a strong foundation for the future of the company.

Paul Chaplin

President and CEO

"Our journey to becoming a leading pure-play vaccine company has been driven by bold decisions but ultimately backed by people. We are now more than 1,800 employees worldwide, dedicated to our mission to improve and save lives."

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Bavarian Nordic Annual Report 2025

Driving continued growth in our leading position within Travel Health

Our short-to-mid-term ambitions to deliver annual growth of 10-12% for Travel Health were established on the basis of our 2023 revenue. Since, we have delivered 22% and 30% growth in 2024 and 2025 respectively, establishing a higher basis.

Revenue from partnerships will cease, as our marketing and distribution agreement with Valneva on Ixiaro ® and Dukoral ® ended on December 31, 2025, and the agreement with Dynavax on Heplis- av-B ® will come to an end by April 2026.

Adjusted for discontinued partnerships, we are, however, still targeting a compound annual growth rate of 10-12% in Travel Health in the years 2026- 2027.

Strong performance in endemic markets

Travel trends and disease outbreaks are impactful drivers in our Travel Health business. During COVID- 19, global travel declined significantly, adversely impacting our business temporarily. The market has since recovered and has continued to grow. Our port- folio remains, however, somewhat resilient to down- trends in global travel, as we operate in markets, where diseases like rabies and TBE are endemic. In 2025, we continued to demonstrate a very strong

performance for our rabies vaccine in key markets, the U.S. and Germany, and for the TBE vaccine in Germany, demonstrating significant growth.

The organic growth in key markets is expected to continue, and we remain focused on strong brand performance for the key products (rabies and TBE) to drive continued revenue growth.

Growing the chikungunya vaccine market

We launched our chikungunya vaccine, Vimkunya, in March 2025 in the U.S. as our first market. Since then, we have launched the vaccine in 11 European countries and will add more markets in 2026, further supported by anticipated approvals in Switzerland and Canada.

Disease awareness remains low across markets. The increased occurrence of chikungunya across several southern European countries during 2025 and the first instance of local transmission of the virus reported in the U.S., however, have increased the attention towards this emerging disease, also from the local public health authorities. Our commercial efforts remain focused on increasing the disease awareness and highlighting the availability of our novel vaccine.

While first year revenue from the sale of Vimkunya reached DKK 85 million in 2025, we see a significant growth potential as our launch initiatives continue and expect revenues of approximately DKK 250 million in 2026, thus becoming our third-largest product in the Travel Health business, already in the second year on the market.

Key growth drivers in Travel Health:

Organic growth in key markets expected to continue

Maintain focus on brand performance for key products (rabies and TBE) to drive increased market shares

Leverage our expanded market presence in Canada, the UK and Southern Europe

Continue launch of chikungunya vaccine in new markets

10-12% CAGR

2025-2027E

Bavarian Nordic Annual Report 2025

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Expanding the Public Preparedness base business

For nearly two decades, we have been a trusted partner to governments on their smallpox prepar- edness with the U.S. and Canada as key customers, and we have continued to build and strengthen our partnerships, also with other countries in response to recent mpox outbreaks.

The world was not prepared for these outbreaks, and they created a sudden and significant surge in demand for our vaccine, which we have successfully managed to fulfil, while also succeeding in estab- lishing longer term partnerships with more govern- mental customers.

As we continue to supply our vaccine to the U.S. and Canada under our existing multi-year agreements, we have also strengthened our collaboration with the EU and its member states, and in 2025, we entered a new framework agreement with the European Commis- sion, through the Health Emergency Preparedness and Response Authority (HERA), enabling the EU, its member states and additional European countries to purchase up to 8 million doses over the next four years. So far, 1.3 million doses have been committed under this agreement, of which the first 750,000 doses are expected to be delivered in 2026.

An attractive, but unpredictable business

The surge in demand drove record-high revenues in 2023-2025 in our Public Preparedness business, accounting for roughly half of our total revenue in this period. While it is an attractive business, it is unpredictable and we are focused on creating lasting partnerships to ensure stability, while at the same time offering improved public health security for our customers.

2026 is expected to be a more normalized year without the impact from ongoing outbreaks of mpox. We expect DKK 1,800-2,000 million in revenue from this business, in line with our mid-term financial ambitions.

Beyond government contracts – a private market emerging

In 2024, in the wake of the global mpox outbreak in 2022, we launched our vaccine for the private segment in key markets (U.S. and Germany). It is a small, but profitable market, which highly correlates with the prevalence of the disease and awareness during outbreaks worldwide.

The market continues to emerge, and we are lever- aging our increased commercial presence across the markets to ensure product awareness and availa- bility for the retail segment.

Returning to base

The Public Preparedness business is unpre- dictable. However, based on our historical performance, coupled with an increased customer base, we anticipate an annual base business of DKK 1,500-2,000 million.

For three consecutive years, we have exceeded our base business in Public Preparedness, reaching annual revenues above DKK 3,000 million.

In 2026, we expect revenue of DKK 1,800- 2,000 million from this business, of which approximately DKK 1,400 million were secured by March 2026.

Key growth drivers in Public Preparedness:

Recurring orders from key government customers: U.S., Canada & EU

Additional framework contracts aimed at long-term stockpiling

Expansion of the customer base

Private market in the U.S. and Germany

One product, dual purpose

JYNNEOS (also marketed as IMVANEX or IMVAMUNE) is indicated for both smallpox and mpox, serving different purposes for our customers, primarily governments and governmental organizations worldwide, but also including private markets in the US and Germany:

Long-term stockpiling for public prepared- ness (smallpox)

Public health preparedness and response during outbreaks (mpox)

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Bavarian Nordic Annual Report 2025

Business development and M&A to drive further commercial expansion

The rabies and TBE vaccine acquired from GSK in 2020 continue to form the backbone of Travel Health, driving growth year-over-year. In 2025, we fully completed the tech transfer for both products to our own manufacturing, and we now have full control of the value chain, which will help drive better margins for both products.

Since then, we acquired the travel vaccine portfolio from Emergent BioSolutions, including a manu- facturing facility in Switzerland, which has further added to our capacity and flexibility to ensure a reli- able supply. As part of this transaction, we acquired the chikungunya vaccine candidate, which we have taken through the final clinical development and regulatory approvals, enabling launch of the product in 2025, driving further growth in Travel Health in the years to come.

A continued source of growth

Recognizing the need to increase revenues from our commercial product portfolio, we continue to see M&A as a vital component in our strategy. While there is no certainty of the timing or nature of any future acquisitions, we are focused on areas where we see attractive profitability and clear synergies to our existing business, by targeting assets that will help increase scale and drive continued revenue growth.

The commercial transformation of Bavarian Nordic was made possible through acquisitions, starting in 2020 with the addition of two revenue-generating assets which laid the foundation for our Travel Health business and enabled us to establish a full commercial infrastructure, which can be leveraged for driving further value.

Desired product profile for acquisition targets:

We are looking to acquire products that are:

Driving margin improvements from rabies and TBE tech transfers

In 2024, we completed the successful tech transfer of the rabies vaccine, including the transfer of the manufacturing process for our rabies vaccine from GSK to our facility in Denmark. This five-year process consisted of a reconstruction of the facility in Denmark and implementation of new manu- facturing lines for both drug substance and drug product manufacturing.

Similarly, in 2025, we completed the tech transfer of the tick-borne encephalitis (TBE) vaccine.

De-risked by being commercialized

Profitable from day one

Synergistic to existing product portfolio and commercial setup

Within niche infectious diseases

From the rabies and TBE tech transfers, we expect approximately 30% savings in our cost of goods sold (COGS), leading to a +15-20pp improvement in gross margin for both products combined from 2026. From the rabies tech transfer, we expect the full gross margin improvement in 2026, while from the TBE tech transfer, we expect the full gross margin improvement in 2027.

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Bavarian Nordic Annual Report 2025

Innovate to elevate

Through disciplined investments, we have focused our R&D efforts and established partnerships to drive added value to the commercial portfolio.

In 2026, our R&D investments are capped at DKK 750 million, prioritizing life-cycle management of the commercial portfolio as well as continued—though slower—advancement of the early-stage pipeline assets (EBV and Lyme), which are now expected to enter clinical development in 2027.

With this balanced approach, we seek to maximize the value of our R&D efforts, while retaining the overall profitability of the company.

Life-cycle management

Competitive edge is becoming increasingly impor- tant for success in the markets where we operate. Through continuous improvement and differentiation of our products, we retain the ability to defend and increase our market shares, which is accomplished through additional clinical studies and continuous optimization of our manufacturing processes.

For our chikungunya vaccine, we have certain post-approval study commitments agreed with the U.S. Food and Drug Administration, representing a significant part of our R&D investments in 2026.

Examples of life-cycle management initiatives to improve competitiveness of products:

Process improvements in manufacturing

Shelf-life extension

Label expansion

Geographical expansion

Booster projects

Post-approval studies

Pipeline

Preclinical

Phase 1

Phase 2

Phase 3

Registration

Chikungunya

MVA-BN cell line

Equine encephalitis

Lyme disease

2027

Epstein-Barr (EBV)

2027

Valued partnerships driving innovation

Building on our long history of partnerships with governments, we continue to collaborate on the development of novel vaccines. Through a fully funded development program by the U.S. Depart- ment of Defense, we have advanced the develop- ment of an MVA-BN based vaccine against equine encephalitis, currently in phase 2 clinical develop- ment. We have also formed partnerships with organ- izations and academia, co-funding and sponsoring the continued development of MVA-BN as an mpox/ smallpox vaccine to ensure its availability for the most vulnerable populations.

In addition, we are working on a new cell line for our MVA-BN vaccine, designed to significantly increase the manufacturing efficiency compared to the current egg-based production.

Bring innovative solutions

Improve competitiveness of existing product portfolio through life-cycle management

Secure reliable supply

Develop new pipeline programs and platforms

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Bavarian Nordic Annual Report 2025

Ongoing and planned clinical studies

Area/disease

Phase

Study details

Study ID

Chikungunya

Phase 3

Follow-up study in healthy adults and adolescents enrolled in two previous phase 3 studies ( NCT05072080 and NCT05349617 ) to evaluate both the safety and long-term immunogenicity of a single dose of CHIKV VLP in up to 5 years after vaccination and antibody responses after a booster vaccination administered 3, 4, or 5 years post-initial vaccination.

Chikungunya

Phase 3

Study evaluating the safety and immunogenicity of CHIKV VLP in 720 children 2 to 11 years of age for two years.

Chikungunya

Phase 3 Planned

A post-approval efficacy study of CHIKV VLP to be conducted in more than 6,000 individuals in a future outbreak area.

Mpox

Phase 4

A study in the DRC, Uganda and Nigeria in more than 3,000 partici- pants including children over 2 years of age evaluating post-exposure vaccination with MVA-BN, i.e. if the vaccine helps reduce the risk of secondary mpox cases, or, in case of mpox infection, can reduce the severity of illness.

The study is led by McMaster University in Canada and co-funded by CEPI.

Mpox

Phase 3

A study in the DRC evaluating the safety and immunogenicity of MVA-BN in 344 infants aged 4-24 months.

The study is led by the University of Antwerp and the University of Kinshasa and co-funded by CEPI.

Mpox

Phase 3

A study in the DRC evaluating the safety and immunogenicity of MVA-BN in 359 women (pregnant or breastfeeding).

The study is led by the University of Antwerp and the University of Kinshasa and co-funded by CEPI.

Area/disease

Phase

Study details

Study ID

Mpox

Phase 2

A study in the DRC and Uganda comparing the safety and immuno- genicity of MVA-BN between children and adults. Topline results were reported in October 2025, showing that the immune response in children was non-inferior to the adult group. Pending final results, data will be submitted to the European Medicines Agency (EMA) in 2026 to support an extension of the vaccine’s approval to include children aged 2 years and older.

The study was co-funded by CEPI.

MVA-BN

Phase 2

A study comparing the safety, immunogenicity and reactogenicity of MVA-BN manufactured using different cell lines. The study is part of the Company’s efforts to scale manufacturing capacity to meet future demand by introducing a proprietary cell line, designed to signifi- cantly increase the manufacturing efficiency compared to the current egg-based production.

Equine encephalitis

Phase 2

A study in 400 healthy adults evaluating the safety as well as humoral and cellular immune responses from vaccination with MVA-BN WEV. Booster responses one year after completion of the primary vaccination as well as the durability of the responses will also be assessed.

The program is funded by the U.S. Department of Defense’s (DOD) Joint Program Executive Office for Chemical, Biological, Radiological and Nuclear Defense (JPEO-CBRND) .

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Bavarian Nordic Annual Report 2025

Travel Health

Rabipur/RabAvert

Rabipur/RabAvert sales increased by 34% to DKK 1,817 million (2024: DKK 1,352 million), driven by continued market growth in both Germany (48%) and the U.S. (10%) in 2025, and market share gain. Our market position remained strong, with the U.S. and Germany market shares of 78% in 2025 versus 76% prior year and 97% in 2025 versus 91% prior year, respectively.

Encepur

Encepur sales increased by 20% to DKK 598 million (2024: DKK 497 million), driven by strong market growth and strong brand performance. Germany, as the largest market, grew by 19% and achieved a market share of 31% in 2025 versus 28% prior year.

Rabipur ® /RabAvert ® is a rabies vaccine for both pre-exposure use for travelers to endemic regions and for post-exposure use by persons in endemic countries potentially at risk after being bitten or scratched by animals carrying the disease.

The vaccine is market-leading in Western markets and >80% of its revenue is from the U.S. and Germany.

Encepur ® is a vaccine against tick-borne encephalitis (TBE), a virus prevalent in Central, Eastern and Northern Europe. The vaccine is marketed in European countries with Germany being the largest market, representing ~80% of the product’s total revenue.

Encepur revenue

mDKK

Rabipur/RabAvert revenue

mDKK

Vimkunya

First-year sales of our chikungunya vaccine amounted to DKK 85 million, exceeding the guidance of DKK 75 million for the year. The performance was driven by the U.S. and Germany that were the first markets where the product was launched.

Vimkunya revenue 2025

mDKK

Vimkunya ® is a vaccine for immunization against chikungunya, a mosquito-borne disease, which has emerged across several regions in Asia, Africa, and the Americas, including many popular travel destinations. It is the first virus-like particle (VLP)- based chikungunya vaccine for persons aged 12 and older, which was approved and launched in the U.S., the UK and several European countries in 2025.

29%

of total revenue

10%

of total revenue

1%

of total revenue

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Bavarian Nordic Annual Report 2025

Vivotif/Typhoral

Vivotif sales increased by 11% to DKK 198 million (2024: DKK 179 million). We acquired the vaccine in 2023 and are still relaunching it in key markets, after discontinuation of marketing by the previous owner during the COVID-19 pandemic. Our focus is primarily on the U.S. market which represents ~60% of the product’s total revenue. We have taken initi- atives to accelerate the growth, and have started to see market share gains, however, the U.S. market for typhoid vaccines has been in decline.

Vaxchora

Vaxchora sales amounted to DKK 38 million (2024: DKK 64 million). We acquired the vaccine in 2023 and are still relaunching it in key markets, after discontinuation of marketing by the previous owner during the COVID-19 pandemic. Our focus is on the U.S. and European markets.

Vivotif ® /Typhoral ® is an oral vaccine for immunization against typhoid fever, a potentially life-threatening disease caused by a specific type of bacteria (Salmonella typhi), which is commonly found in Southeast Asia, Africa, the Caribbean, and Central and South America.

Vaxchora ® is an oral vaccine for immunization against cholera, a potentially life-threatening disease caused by the bacteria Vibrio cholerae serogroup O1, which is regularly found in South and Southeast Asia and Africa.

Third-party products

Sales of third-party products (DUKORAL, IXIARO and HEPLISAV-B) increased by 18% to DKK 228 million (DKK 194 million). Most of the revenue stems from sales of Valneva’s products under the mutual

marketing and distribution agreement which termi- nated at the end of 2025. Limited sales of HEPLIS- AV-B under the marketing and distribution agree- ment with Dynavax are included in the revenue. This agreement will terminate in April 2026.

1%

of total revenue

3%

of total revenue

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Bavarian Nordic Annual Report 2025

Public Preparedness

JYNNEOS/IMVAMUNE/IMVANEX

Revenue from the sale of JYNNEOS/IMVAMUNE/IMVANEX amounted to DKK 3,105 million (DKK 3,206 million), driven by contracts with the U.S. government and the European Union in addition to contracts entered with various other governments and organizations. 2025 was another outbreak year, which led to a surge in demand for our mpox/ smallpox vaccine, driving temporarily higher revenues. After the launch of the private market in early 2024, we saw continued good private market sales in the U.S.

JYNNEOS ® /IMVAMUNE ® /IMVANEX ® was originally developed as a smallpox vaccine intended for government stockpiling. Since, it has been approved also for mpox and has been widely used during outbreaks. The vaccine has also been commercialized in key markets (the U.S. and Germany) for at-risk populations.

JYNNEOS/IMVAMUNE/IMVANEX revenue

mDKK

50%

of total revenue

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Bavarian Nordic Annual Report 2025

Research and development costs

The total research and development spending was DKK 780 million (DKK 863 million). The amount excludes R&D costs of DKK 126 million (DKK 152 million) recognized as production costs. The decrease mainly reflects savings relating to consol- idation of R&D activities in Europe following the closure of the R&D site in San Diego.

Administrative costs

Administrative costs totaled DKK 558 million (DKK 516 million). Costs related to the takeover offer process amount to approx. DKK 18 million. The other increase in administrative costs relates partly to establishment of new sales entities in new countries and general business growth.

Other operating income, net

Other operating income, net was related to the sale of the Priority Review Voucher and totaled a gain of DKK 810 million (DKK 0 million). The sales price of

DKK 1,033 million was recognized as other operating income, whereas royalties to NIH and other fees of DKK 223 million were recognized as other operating expenses.

EBIT/EBITDA

Earnings before interest and tax (EBIT) was an income of DKK 1,804 million (income of DKK 940 million).

EBITDA was an income of DKK 2,542 million (income of DKK 1,603 million). Amortization of product rights and developed production processes amounted to DKK 414 million (DKK 349 million) whereas depreciation on other fixed assets amounted to DKK 300 million (DKK 276 million). Impairment losses amounted to DKK 24 million (DKK 38 million).

Financial income and financial expenses

Financial income was DKK 51 million (DKK 150 million) and consisted of income from bank and deposit contracts, DKK 37 million (DKK 48 million) and income from securities, DKK 14 million (DKK 35 million). In 2025, the net foreign exchange effect was a loss of DKK 10 million, compared to a gain of DKK 67 million in 2024.

Financial expenses were DKK 54 million (DKK 118 million) and consisted of interest expenses on debt, DKK 6 million (DKK 5 million), fair value adjustment on securities, DKK 7 million (gain DKK 8 million), net value adjustment of deferred consideration, DKK 24 million (DKK 105 million), other financial expenses DKK 7 million (DKK 9 million) and net foreign exchange losses DKK 10 million (net gain DKK 67 million). Other financial expenses were related mainly to commitment fee for the revolving credit facility.

For further details on financial income and expenses see note 11 and 12.

In the Parent Company, the financial income was DKK 55 million (DKK 150 million) and included interests on receivables from subsidiaries of DKK 6 million (DKK 4 million). The financial expenses were DKK 112 million (DKK 139 million) and included interest expense on payables to subsidiaries of DKK 16 million (DKK 22 million).

Income before company tax was an income of DKK 1,801 million (income of DKK 971 million).

Research and development costs

mDKK

EBITDA including special items

mDKK

Tax on income for the year

Tax on the income for the year was an expense of DKK 426 million (DKK 17 million) and related primarily to taxes in the parent company, DKK 388 million. The tax expense included both payable taxes and recognition of a deferred tax liability. Previous years no deferred tax asset or liability were recognized. As of December 31, 2025, the parent company has recognized the value of tax loss carried forward expected to be used within 3 years. The Group will reassess the recognition of deferred tax assets at each reporting date and recognize them if it becomes probable that future taxable profit will allow the deferred tax asset to be recov- ered. No Pillar II top-up tax costs are expected in 2025. See further description in note 13.

The effective tax rate for the Group was positive by 23.6% (negative by 1.7%).

Net profit

The Group reported a net profit for the year of DKK 1,375 million (net profit of DKK 988 million). The parent company had a net profit for the year of DKK 1,374 million (DKK 965 million).

Liquidity and capital resources

As of December 31, 2025, the Company had cash and cash equivalents of DKK 1,714 million (DKK 1,623 million) and held investments in securities of DKK 1,619 million (DKK 552 million). The net securities and cash position amounted to DKK 3,333 million (DKK 2,175 million).

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Bavarian Nordic Annual Report 2025

The Company holds a revolving credit facility (RCF) agreement for DKK 1,000 million, the size of the agreement is as per the Company’s request. The facility was undrawn as per December 31, 2025.

Cash flows

Cash flow from operating activities totaled a net contribution of DKK 2,722 million (DKK 1,950 million) following the positive EBITDA of DKK 2,542 million (DKK 1,603 million). Net change in working capital was positive by DKK 161 million (DKK 177 million).

Investment activities totaled DKK 2,485 million (DKK 1,871 million). Milestone payments to GSK and Emergent BioSolutions amounted to DKK 1,105 million (DKK 1,587 million). As per December 31, 2025, all milestones under the two purchase agree- ments were achieved and no deferred consideration was recognized, see further description in note 24. Payment of the completion milestone to GSK of EUR 70 million is still outstanding and has been recog- nized as trade payables.

Investments in property, plant and equipment totaled DKK 197 million (DKK 83 million). The net investment in securities amounted to DKK 1,074 million (DKK 153 million) following the strong cash position.

Cash flow from financing activities was negative by DKK 114 million (DKK 56 million positive), following the completion of a share buy-back program of

DKK 150 million (DKK 27 million) partly offset by proceeds from warrant exercise of DKK 79 million (DKK 127 million).

The buy-back program was executed for the purpose of adjusting the capital structure and meeting the long-term obligations relating to the Company’s share-based incentive programs for the Board of Directors and Executive Management.

The net cash flow for 2025 was positive by DKK 123 million (DKK 135 million).

Balance sheet

The balance sheet total was DKK 14,955 million as of December 31, 2025 (DKK 14,406 million).

Assets

Intangible assets stood at DKK 5,960 million (DKK 6,331 million) with the main asset being the product rights to Rabipur/RabAvert, Encepur, Vivotif, Vaxchora and Vimkunya of DKK 5,571 million (DKK 4,660 million). Product rights are amortized on a straight-line basis over their expected useful lives of 10-20 years.

Developed production processes stood at DKK 306 million (DKK 344 million), relating to the technology transfer from GSK to Bavarian Nordic of the manu- facturing process for Rabipur/RabAvert and Encepur.

The asset was finalized in the beginning of 2024 with an initial value of DKK 375 million and will be amortized over 10 years. The amortization costs are included as part of the cost for future manufactured vaccines.

Property, plant and equipment stood at DKK 2,071 million (DKK 2,161 million).

Inventories stood at DKK 2,514 million (DKK 2,327 million), of which the inventory of Rabipur/RabAvert and Encepur products amounted to DKK 1,328 million (DKK 1,625 million), smallpox/mpox vaccines amounted to DKK 606 million (DKK 303 million), Vivotif and Vaxchora products amounted to DKK 77 million (DKK 94 million) and Vimkunya products amounted to DKK 221 million (DKK 67 million), as per December 31, 2025.

Receivables stood at DKK 890 million (DKK 1,285 million), of which trade receivables amounted to DKK 780 million (DKK 1,176 million). The decrease in trade receivables compared to year-end 2024 relates to phasing of sales.

As of December 31, 2025, cash and securities stood at DKK 3,333 million (DKK 2,175 million).

Bavarian Nordic’s cash and cash equivalents are primarily invested in deposit accounts with highly rated banks and in short-term Danish government and mortgage bonds.

Equity

After the transfer of the result for the year, equity stood at DKK 12,870 million (DKK 11,409 million).

Deferred consideration

Following the approvals of Vimkunya by the FDA and EMA in March 2025, the last milestone payments amounting to USD 50 million were paid to Emergent BioSolutions. As of December 31, 2025, the Company has no outstanding balance towards Emergent BioSolutions.

The last operational milestone (EUR 30 million) and the completion milestone (EUR 70 million) to GSK were both achieved in the second quarter of 2025. Hereafter the Company has no deferred consideration recognized on the balance sheet. As per December 31, 2025, the operational milestone was paid, whereas the completion milestone was recognized as trade payables.

Retirement benefit obligations

In the Swiss subsidiary Bavarian Nordic Berna GmbH, the Group has recognized a retirement benefit obligation of DKK 83 million (DKK 114 million). The pension plan is part of a collective foundation in which other plans of non-related employers also participate, and the different plans all participate in the various risks relating to the foundation. Changes in actuarial assumptions decreased the net obliga- tion, see further in note 26.

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Bavarian Nordic Annual Report 2025

Ownership and major shareholders

At the end of 2025, we had approximately 94,000 registered shareholders owning 94% of the share capital, while the remaining 6% were held by non-registered shareholders. The share of retail shareholders was around 20%, of which majority was Danish shareholders. We held 966,845 shares as treasury shares, corresponding to 1.22% of the share capital, which have been repurchased to meet obligations arising from the share-based incentive programs for the Board of Directors and Executive Management. Refer to note 29 in the consolidated financial statements.

At the end of 2025, the following shareholder owned five percent or more of Bavarian Nordic shares according to their publicly disclosed share- holder notification:

ATP Group, Hillerød, Denmark, 11.56% as of December 31, 2025

Capital allocation principles

In the mid- to long-term, we expect to further improve our financial flexibility through increasing cash flow generation, which we intend to use to invest in growing the current business and pipe- line, while prioritizing synergistic M&A as well as returning excess cash to our shareholders.

In the context of a strong cash position, resulting from the sale of the Priority Review Voucher (PRV) and a continued positive cash flow from opera- tions, in December 2025 we announced our intent to launch a one-time share buy-back program of up to DKK 500 million, to be executed over the next 12 months. The share buy-back program was launched in January 2026, with the first tranche of the program comprising buy-back of shares for up to DKK 150 million, which was completed in February 2026.

Investor relations

We maintain an active dialogue with shareholders, sell-side analysts, and other stakeholders by providing relevant, reliable and transparent infor- mation about relevant strategic, economic, financial, operational and scientific affairs in an open and timely manner. This work is carried out by manage- ment and investor relations through frequent interactions with existing and potential shareholders in investor roadshows, conferences, meetings and conference calls. The financial reports, company announcements, investor presentations and finan- cial calendar are available on our investor relations website.

In connection with the publication of financial reports, management is hosting a conference call

for investors and analysts to present the results followed by a Q&A session. The conference calls are webcast live and they can be accessed via the investor relations website where they will also be available for on demand viewing for up to one year.

Annual General Meeting

The 2026 Annual General Meeting will be held on April 21, 2026. Additional information will become available on our website no later than three weeks before the event. Shareholders who have subscribed to company news will receive a notification via e-mail. Once summoned, registered shareholders can request admission card and/or vote by proxy for the meeting through the shareholder portal, which can be accessed via our investor relations website. To register shares by name, shareholders must contact their custodian bank.

Visit our investor relations website →

Financial calendar 2026

April 21, 2026

Annual General Meeting

May 13, 2026

Three-month interim report (Q1)

August 21, 2026

H alf-year interim report (Q2)

November 13, 2026

Nine-month interim report (Q3)

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Bavarian Nordic Annual Report 2025

Risk area

Description and impact

Mitigating actions

Cyber security

Disruptions, including hacking, malware, or other external attempts to disrupt our ability to operate could have a signifi- cant impact on our IT infrastructure and systems, from inability to perform opera- tionally to inability to perform commercial sales or perform R&D. The impact could influence revenue and/or costs.

Internal procedures for security monitoring and vulnerability assessment.

Constantly having continuity plans updated, including having updated internal processes for data recovery.

Plans for micro-segmentation to reduce the impact of attacks.

Training and awareness campaigns both inside the IT department and within the business.

Externally performed maturity assessments test, including gap analysis and gap closure plan identification.

Involvement of third-party cybersecurity specialist to ensure a constant overview of threats and preventative measures available.

Perform annual security penetration tests and audits by a third party.

Investments in strengthening the infrastructure and security.

Research and development

We are progressing studies and projects through the R&D pipeline, including life-cycle management activities for the current portfolio of products.

Any research and development activities can be delayed or even abandoned.

The product approval phase can be

delayed or even fail.

All clinical material and production facil- ities require regulatory approval; such approvals can be delayed or even fail.

Delays, failures or paused projects could have an impact on our future pipeline and hence future profitability.

Close dialogue with authorities (e.g., FDA and EMA) to secure optimal path to approval and compliance with GMP, etc.

Strong quality system in place to ensure compli- ance with standards agreed with and required by authorities.

Communication with experts and regulators, to discuss regulatory strategy and development of recommendation.

Shelf-life extension initiatives for products in the current portfolio.

Risk area

Description and impact

Mitigating actions

Laws, regulations and compliance

Not complying with laws, incl. anti- corruption laws, regulations or any other compliance requirements could damage our reputation, result in significant fines and impede our ability to operate.

Follow and monitor the established internal compliance structure and governance.

Internal and external legal resources available.

Continuous training of the organization in rele- vant laws, regulations and policies.

Monitor development in relevant laws and regulations.

Allocation of internal resources to secure adap- tation of new rules and regulations.

Monitoring by the Business Ethics Compliance Committee.

Commercializa- tion and compe- tition

We compete in markets where prices may be determined by the local supply/ demand, including products from competitors that are significantly larger than us. Pressure from local healthcare politics to reduce costs may impact Bavarian Nordic’s pricing or volume. Geopolitical or macroeconomic changes or health crises, e.g., pandemics, could impact demand, pricing and access to vaccinations. Competitors might develop product candidates with higher poten- tial which could reduce the value of our pipeline and products.

Develop early-stage pipeline of vaccines, or new platforms, to stay competitive.

Ensure product availability through meticulous sales and operations planning.

Secure an engaged and competent sales, marketing and medical affairs organization, e.g. through continuous training.

Look for and leverage differentiation.

Further develop products in the market (lifecycle management).

Build strong relations through dedication and focus to achieve preferred supplier status.

Partnerships

Partnering with other companies and government bodies in the industry is a central element of our strategy. Loss of partnerships, e.g., due to collaboration issues, failed projects or similar, could have a significant impact on our reputa- tion and future performance.

Frequent interactions with partners to build and maintain common understanding.

Processes in place to resolve potential issues.

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Bavarian Nordic Annual Report 2025

Risk area

Description and impact

Mitigating actions

Talent attraction and retention

We depend on the ability to attract and retain talents for many functions. In times of high competition for the right talents or adverse impact on our image, it could impact our ability to perform at high standards and compete against other companies.

Perform employer branding.

Provide training and development.

Offer competitive remuneration package.

Identify and develop key talents, including talent programs.

Safety and incidents

We are fully committed to the safety and well-being of employees. Incidents or accidents can occur on our sites, and we maintain high standards and strong controls to prevent this from happening.

Structured approach by the EHS organization to all workplace assessments.

Training employees in appropriate safety proce- dures to perform the job.

Adequately maintaining and communicating safety instructions.

Ensuring processes and equipment is fit for the purpose.

Permit to work systems for relevant jobs.

High focus on, and procedures in place where biosafety and biosecurity events could occur.

Intellectual property rights

The validity of patents is crucial for the Company to secure future revenues and return on the investments made in devel- opment. Patents might be challenged by competitors. It is also crucial for the Company to avoid costly and lengthy litigation actions on IP launched by third parties.

Dedicated and experienced resources involved in the filing of patent applications to minimize vulnerability to future invalidity actions, and with ability to defend patents if such actions are filed. Appropriate resources are therefore spent on navigating the patent landscape to avoid third party patents.

Risk area

Description and impact

Mitigating actions

Currency and tax exposure to risks

Significant fluctuations in the DKK/USD and other currencies which Bavarian Nordic could be exposed to, could impact financial positions. Potential disputes with tax authorities could result in addi- tional tax payments

Material net USD exposure is hedged using FX contracts or options.

Frequent monitoring of planned cash flows in other currencies allows for hedging when the risk is identified.

Taxes are paid where we operate. Inter-com- pany transactions are governed by agreements in compliance with OECD’s transfer pricing guidelines.

External and internal tax expertise is engaged whenever Bavarian Nordic is exposed to new tax risks to avoid lack of compliance or negative surprises.

Currency risks and additional financial risks are further explained in note 23 in the consolidated financial statements.

Import tariffs

Introduction of significant import tariffs on our vaccines could result in reduced revenue and profits and thereby poten- tially reduce the company’s ability to invest in R&D and provide competitive financial returns.

Consider location of manufacturing in the stra- tegic planning. A global presence with part- or full manufacturing in key markets will reduce impact.

Securing local inventory of vaccines will delay impact.

Consider passing on the costs in full or in part to customers where relevant and possible.

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Bavarian Nordic Annual Report 2025

Meetings in 2025

The Board held 17 meetings in 2025 compared to 8-9 meetings held annually in recent years. The higher meeting frequency was due to the increased workload related to the takeover offer published on 28 July 2025 and withdrawn on 6 November 2025. The overall attendance for the Board at meetings in 2025, including meetings in the subcommittees, was 96 %. The attendance for each board member during their term is detailed in the table below.

Board of Directors

Finance, Risk, and Audit Committee

Nomination and Compensation Committee1

Science and Technology Committee

Anne Louise Eberhard

● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ●

● ● ● ● ●

● ● ● ●

Heidi Hunter

● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ●

● ● ● ●

●

● ● ●

Frank Verwiel

● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ●

● ● ● ● ● ●

● ● ●

Johan van Hoof

● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ●

● ● ● ● ●

● ● ●

Montse Montaner2

● ● ● ● ● ● ● ● ● ● ● ●●●●●●

● ● ● ● ●

● ● ●

Luc Debruyne3

● ● ● ● ● ● ● ● ● ● ● ● ● ●

● ● ● ● ●

● ● ●

Anders Gersel Pedersen4

● ● ● ●

●

●

Anja Gjøl5

● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ●

Mette Boas Schwartzlose6

● ● ● ● ● ● ● ● ● ● ● ● ●

Christina Teichert6

● ● ● ● ● ● ● ● ● ● ● ● ●

Linette M. Andersen4

● ● ● ●

Thomas A. Bennekov4

● ● ● ●

Karen M. Jensen4

● ● ● ●

¹ The composition of the Nomination and Compensation Committee changed during the year, resulting in an increased number of different meeting participants in 2025. Additionally, Anne Louise Eberhard attended two meetings in place of Montse Montaner due to conflict of interest (regarding the proposed takeover offer published 28 July 2025).

² Montse Montaner did not attend six board meetings due to conflict of interest (regarding the proposed takeover offer published 28 July 2025).

³ Luc Debruyne retired from the Board on 13 November 2025.

⁴ Retired from the Board following the end of their term at the annual general meeting on 9 April 2025.

⁵ Reelected as employee-elected board member in 2025 (member of the Board since 2021.

⁶ Elected new employee representative for the period 2025-2029. Joined the Board on 9 April 2025.

Meeting attended ●Meeting not attended

Evaluation of the Board

Each year, the Board and its subcommittees conduct an evaluation of the Board's and subcom-mittee’s work, accomplishments and composition. The chair heads the annual evaluation, which is

conducted at least every third year with external assistance.

The process, whether it is facilitated internally or by external consultants, evaluates topics such

as board dynamics, board agenda, quality of the material that is submitted to the Board, discus-sions at the board meetings, the chair’s leadership of the Board, strategy, board composition and board competencies.

Due to a number of other priorities for the Board in the second half of 2025, it was decided to post-pone the board evaluation until the first quarter of 2026. The evaluation was performed in January 2026 through completion of a detailed question-naire with the assistance of an external advisor. The results of the evaluation will be discussed at a board meeting in early 2026.

Executive Management

The registered Executive Management is appointed by the Board, which lays down their terms and condi-tions of employment and the framework for their duties. The Executive Management is responsible for the day-to-day management of Bavarian Nordic in compliance with the guidelines and directions issued by the Board. The day-to-day operations do not include transactions of an unusual nature or of material importance to the affairs of Bavarian Nordic.

As of December 31, 2025, the registered Executive Management consisted of Paul Chaplin, President and CEO and Henrik Juuel, Executive Vice President and CFO, both registered with the Danish Business Authority, assisted by two Executive Vice Presidents who together with the registered Executive Manage-ment are responsible for the day-to-day operations of the Company (collectively the Executive Manage-ment).

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Bavarian Nordic Annual Report 2025

Board and management gender diversity

As of December 31, 2025, the Board had a representation of three female and two male members elected by the shareholders and three female members elected as employee representa-tives. The Executive Management consisted of four male members. The other management¹ in Bavarian Nordic had a representation of six female and eight male managers. Hence, there was an equal gender distribution among the shareholder-elected Board members and in other management levels as in accordance with the guidelines from the Danish Business Authority and is therefore not required to

set a gender target figure². However, there is not an equal gender distribution among the employee representatives on the Board whereto the necessary measures will be implemented regarding the gender balance among the employee representatives prior to the next election of employee representatives, when the current four-year term expires in 2029.

We always strive to attract and engage a highly qualified and diverse group of employees and aim to eliminate biases and create an inclusive atmos-phere. In order to achieve these ambitions, Bavarian Nordic outlined the below specified ambitions and objectives for the work with diversity and inclusion.

We wish to:

Have a balanced gender distribution in all mana-gerial positions and at all levels in the organiza-tion.

Seek an age-diverse workforce that brings new perspectives, knowledge and experiences.

Develop a workplace that embraces diverse backgrounds and perspectives stemming from an increasingly global and specialized organization.

Ensure that the compositions of the Board and Executive Management is diverse in terms of experience, competencies and gender.

Remuneration policy and report

The remuneration of the Board and the registered Executive Management is governed by the remu-neration policy which is approved by the annual general meeting.

In accordance with section 139b in the Danish Companies Act, Bavarian Nordic has prepared a report on the remuneration of the individual members of the Board and the registered Executive Management in 2025.

At the annual general meeting in April 2025, the 2024 Remuneration Report was submitted for an advisory vote. As the report did not obtain majority support, the Board has reviewed the concerns that may have contributed to this outcome. These concerns have been addressed by the Board in the 2025 Remuneration Report.

Remuneration Policy →

Remuneration Report →

Board and management gender diversity

Members of the Board, Executive Management and Other Management, total and by under-represented gender.

The percentages in the table indicate the ratio of the under-represented gender in each category.

2025

2024

2023

Number

Percent

Number

Percent

Number

Percent

Board of Directors, total

8

25%

11

45%

11

45%

Board of Directors, shareholder-elected

5

40%

7

43%

7

29%

Board of Directors, employee representatives

3

0%

4

25%

4

25%

Executive Management

4

0%

5

20%

6

33%

Other Management

14

43%

23

48%

21

48%

¹ Members of Executive Management employed by Bavarian Nordic A/S along with their direct reports with leadership responsibility, also employed by Bavarian Nordic A/S and direct reports with leadership responsibility that are employed by Bavarian Nordic A/S and are reporting to a member of Executive Management not employed by Bavarian Nordic A/S.

² Cf. the Gender Balance Act, Section 5

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Bavarian Nordic Annual Report 2025

Business ethics

We have established the Global Business Ethics Compliance Committee, which is represented by Executive Management and relevant business functions, to meet quarterly and oversee the Global Business Ethics Compliance Program. The Chief Compliance Officer has been appointed responsible for the Global Business Ethics Compliance Program and regularly reports on its status to the Finance, Risk, and Audit Committee. The Company has estab-lished a North America Compliance Committee and appointed a U.S. Compliance Officer. All employees, Executive Management, and the Board of Directors are trained on our Code of Conduct, Anti-Corruption Policy, and Speak-Up Policy. The Code of Conduct and Speak-Up Policy are accessible from our website.

Code of Conduct →

Ethics Hotline →

Data ethics policy

Our Data Privacy Policy includes our Data Ethics Policy establishing our eight principles to ensure strong data ethics:

Our Executive Management is dedicated to ensuring and maintaining a high standard of data ethics

We ensure accountability for data processing

We require an appropriate level of data ethics for processing activities carried out by third parties

We ensure that the processing activities carried out provide value to the data subjects, and are transparent and secure

We train our employees and monitor processing activities

We maintain an Ethics Hotline, where violations of data protection laws can be reported by internal and external stakeholders

We identify and monitor the use of new technol-ogies for processing of data

We carry out internal controls

Employees are trained annually on our Data Privacy Policy including our Data Ethics Policy.

Corporate governance report

We remain focused on good corporate governance, having implemented the recommendations from the Committee of Corporate Governance (Komitéen for god Selskabsledelse) for companies listed on the Nasdaq Copenhagen exchange.

In accordance with Section 107 b of the Danish Financial Statements Act, we have published a statutory report on Corporate Governance for the financial year 2025. The report provides a detailed account of the two-tier management structure of Bavarian Nordic, including an overview of the Board and its committees and a review of their activi-ties over the year. The statement also describes key elements of our internal control and risk management systems related to financial reporting processes.

Management intends that Bavarian Nordic shall be operated in compliance with guidelines and recom-mendations that support our business model and can create value for our stakeholders. Regularly and at least once a year, Management monitors adherence to the recommendations on corporate governance to ensure the best possible utilization of and compliance with the recommendations and legislation. However, in 2025 the Company did not comply with two out of the forty recommendations. For further explanation, see the Corporate Govern-ance report, which is available on our website..

Corporate Governance →

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Bavarian Nordic Annual Report 2025

Board competencies

The shareholder-elected members of the Board possess leadership experience as well as board experience from public or private compa- nies and organizations. In addition, each member brings different experience and skills relevant to their representation on the Board and its subcommittees, which collectively enable the Board to oversee the strategy and development of the Company.

The Board has identified the core competencies which collectively should be possessed by the shareholder-elected members to perform their duties in supporting the Company’s strategy. To assess whether all core competencies are adequately represented, each member has identified their primary competencies as shown in the table below. The members may also have knowledge or experience in areas other than their primary competencies. Employee representatives are not part of the competency self-assessment.

Competency overview

Corporate Leadership

Life

Sciences

Public health

Product Development and Supply

Commercial Strategy, M&A and Business Development

Finance, Capital and Risk Management

People and Culture

ESG

Technology and Digitalization

Anne Louise Eberhard

●

●

●

●

●

●

Heidi Hunter

●

●

●

●

●

●

Frank Verwiel

●

●

●

●

●

Johan van Hoof

●

●

●

●

●

Montse Montaner

●

●

●

●

●

●

Anja Gjøl

Employee representative

Mette Boas Schwartzlose

Employee representative

Christina Teichert

Employee representative

Board overview

First elected

Term expires

Independent

Gender

Nationality

Year of birth

Anne Louise Eberhard

2019

2026

Yes

Female

Danish

1963

Heidi Hunter

2023

2026

Yes

Female

American

1958

Frank Verwiel

2016

2026

Yes

Male

Dutch

1962

Johan van Hoof

2023

2026

Yes

Male

Belgian

1957

Montse Montaner

2024

2026

Yes

Female

Spanish

1968

Anja Gjøl

2021

2029

No 1

Female

Danish

1980

Mette Boas Schwartzlose

2025

2029

No 1

Female

Danish

1975

Christina Teichert

2025

2029

No 1

Female

Danish

1969

¹ Employee representatives are not considered independent under the Danish Corporate Governance recommendations.

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Bavarian Nordic Annual Report 2025

Executive Management

Paul Chaplin

President and Chief Executive Officer

Henrik Juuel

Executive Vice President, Chief Financial Officer

Russell Thirsk

Executive Vice President, Chief Operating Officer

Jean-Christophe May

Executive Vice President, Chief Commercial Officer

Executive management overview

Joined

Nationality

Gender

Year of birth

birth

Paul Chaplin

1999 1

British

Male

1967

Henrik Juuel

2018

Danish

Male

1965

Jean-Christophe May

2020

French

Male

1967

Russell Thirsk

2022

British

Male

1968

1 Joined in 1999, appointed Vice President in 2004, and President and Chief Executive Officer in 2014.

For full leadership biographies, visit our website: Our leadership team →

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Bavarian Nordic Annual Report 2025

Guide to the sustainability statements

2025 marks our second year of reporting in align-ment with the EU Corporate Sustainability Reporting Directive (CSRD) and the European Sustainability Reporting Standards (ESRS).Our 2025 double materiality assessment (DMA) forms the foundation of our disclosures and, reflects our investigation of the impacts, risks, and oppor-tunities (IROs) associated with our own operations as well as key areas across our broader value chain. Based on these insights, we report on the sustaina-bility matters that are most essential to our business and strategic aspirations.

The general disclosures outline our business model, strategy, and governance, with particular emphasis on sustainability and our material IROs. In the topical ESRS, we present our approach to managing our material IROs through policies, processes, and actions. Where relevant, we further report on our ambitions and performance.

Through these disclosures, we aim to ensure trans-parency across all sustainability matters deemed material to our company, including how we impact people, society, and the environment as a vaccine company.

In these sustainability statements, we use acro-nyms and terms that have either been introduced by the CSRD and the ESRS or are in other ways not commonly used outside our sector. We have there-fore included an index with key terms and acronyms

(see the Appendixof these sustainability state-ments). All disclosures are prepared in accordance with the CSRD and the ESRS, ensuring a consistent and comparable reporting framework across all topics.

Our approach

At Bavarian Nordic we strive to embed sustaina-bility throughout our business to create long-term value for employees, society, and share-holders by protecting our license to operate, winning market share, and fostering trust. Guided by our vision, we see sustainability as an enabler of our business strategy and a lens through which we consider our impact, respon-sibilities, and opportunities as a global vaccine company.

Our sustainability approach is framed around four central pillars, each reflecting an important dimension of our vision, our purpose, and how we understand our role as a global vaccine company. These pillars, which will be devel-oped further in the course of 2026, provide a framework for how sustainability can enable our mission of expanding access to vaccines, improving and protecting lives, and embedding responsible practices into the way we operate.

● Access

● People

●Integrity

●Environment

In line with our 2025 DMA, we report on the following ESRS

E1

Climate change

E2

Pollution

E4

Biodiversity and ecosystems

E5

Resource use and circular economy

Environment

ESRS 2

General disclosures

General

S1

Own workforce

S2

Workers in the value chain

S4

Consumers and end-users

Social

G1

Business conduct

Governance

Bavarian Nordic Annual Report 2025

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Bavarian Nordic Annual Report 2025

Request for decision of approval of the method-ology for the DMA

Request for decision of recommendation to the Board for signing off on the annual DMA

Our CFO represents management at FRAC meetings, and is accompanied with relevant staff to inform members of FRAC on sustainability matters and reporting progress. The Board and FRAC each meet at least four times annually.

2025 update

Started in Q2, 2025, we report internally on key KPIs to our Executive Management and relevant internal stakeholders quarterly, to inform on status and progress of strategic initiatives, public commit-ments, and tracking of general progress.

Target setting and tracking effectiveness

Executive Management monitors progress on company goals linked to incentive schemes (see

Sustainability-related performance in incentive schemes). Targets disclosed under the topical Euro-pean Sustainability Reporting Standards (ESRS) are set and progress is monitored by Executive Manage-ment, based on input from relevant departments, generally on a quarterly basis. The Board approves the overall strategic company goals proposed by our Executive Management.

Departments responsible for the implementation of set targets track the effectiveness of related policies and actions and are responsible for creating and/or updating such documents where relevant and needed. Executive Management holds the overall responsibility for ensuring progress and effective-ness of the sustainability-related targets at the corporate level. Not all identified material IROs have associated targets in alignment with the Minimum Disclosure Requirements.

Prioritized actions in 2025

Our Executive Management is informed annually about the outcome of the DMA and on a quarterly basis on selected strategic sustainability initiatives.

The following key sustainability matters were addressed by our Executive Management during 2025:

● Access

Access to vaccines strategy roadmap in Low-Income Countries (LICs) and Lower-Middle-Income Coun-tries (LMICs)

●Environment

Initiation of a multi-year phased project to convert our heating and cooling system in our Swiss manu-facturing site to a modular electric heat pump system

●Integrity

The Responsible Value Chain Program, including a new policy that underlines our expectations to our suppliers' and business partners' commitments to sustainability due diligence in line with the UN Guiding Principles and OECD Guide-lines

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Bavarian Nordic Annual Report 2025

Interests and views of our own workforce

We strive to continuously integrate the rights, interests, and perspectives of our workforce into our strategy and business model, including respecting human rights. Our approach is designed to identify, address, and manage material impacts related to our operations, including those affecting workforce health, safety, and well-being. By embedding these consider-ations into our decision-making processes, we aim to foster a positive and sustainable impact on our employees while proac-tively mitigating any adverse effects, ensuring that the workforce remains a key contributor to sustainable value chain creation.

We recognize that our strategy and business model, including the intensive nature of certain operational activities, might create health and safety concerns and negatively impact our own work-force. To mitigate the negative impact that may come to exist, our established Global Environment, Health, and Safety (EHS) organization supports regular monitoring, reporting, and imple-mentation of preventative measures (see Own workforce).

Interests and views of workers in the value chain

Through the further development of our Responsible Value Chain Program, our aim is to collaborate with suppliers and business partners to respect human rights and labor practices throughout the value chain. Through supplier and business partner engage-ment, directly via the responsible lines of business or indirectly via credible proxies, we monitor and identify impacts in relation to respecting the rights of affected workers in our value chain. The insights gained through engagements and ongoing sustain-ability due diligence inform our decision-making when selecting new suppliers and setting forth strategic initiatives, including the further development of our Responsible Value Chain Program (see Workers in the value chain).

Interests and views of consumers and end-users

As a provider of critical healthcare solutions, our strategy and business model are designed to deliver a positive impact on our consumers and end-users. As a pioneering force in vaccines, our core purpose is to expand access to life-changing solutions. This aligns directly with our commitment to prevent the spread of infectious diseases and provide vaccines to endemic countries, contributing to improved public health outcomes globally and mitigating the risks associated with infectious disease outbreaks.

To ensure these impacts are meaningful and sustainable, we actively engage with stakeholders directly or through credible proxies in various initiatives, including advisory boards, Medical Science Liaison (MSL) visits to healthcare professionals (HCPs), participation in congresses, and medical events. These ongoing engagement initiatives allow us to understand the needs, expec-tations, and concerns of our stakeholders. This insight is critical in enabling us to adapt our strategy and business model to better address these needs, ensuring our solutions remain relevant and impactful. By maintaining close dialogue with our stakeholders, we remain informed and equipped to refine our approach, supporting positive outcomes for consumers and end-users while advancing our mission to address global health challenges.

Our quality and safety processes and procedures support the collection, evaluation, and management of safety data and quality control. These systems are supported by procedures for reporting adverse events, reactions, and product quality complaints, enabling us to respond promptly and transparently (see Consumers and end-users).

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Bavarian Nordic Annual Report 2025

Stakeholder engagement overview

How we engage

Why we engage

Outcomes of engagement

Employees

Inclusion of employee perspectives through representation by employee-elected board members

Employee relations and occupational health and safety Dialogue with worker councils in relevant countries several times yearly

Employee engagement surveys at least annually

Development dialogues between employee & manager at least twice yearly

Dialogue forums with employees, e.g. 1 to 1, team meetings, and town halls

Health and safety committee

To encourage employees to actively participate in shaping and influencing an inclusive workplace and working environment

To foster a culture where employees feel valued, heard, and motivated to contribute

To gather EHS (Environment, Health, Safety) feedback to ensure continuous improvement of workplace

Increased engagement and employee influence

Local agreements on changes and improvements

Including engagement as a regular topic on team meetings

Actions that support individual development

Reduced employee turnover

Safe and inclusive workplace for both off-site and on-site workers

Workers in thevalue chain

Industry collaborations membership in the Pharmaceutical Supply Chain Initiative (PSCI)

Engagement with own workforce as proxy advisors for the workers in the value chain

To gather an understanding of the working conditions provided

To collect knowledge about the needs of these stakeholders

Desired long-term outcome: safe workplace for both off-site and on-site workers in our value chain

Support the development of our Responsible Value Chain Program

Consumers and end-users

Advisory boards

MSL visits to HCPs, and reporting of insights

Participation congresses, and reporting of insights

To collect insights and feedback to inform our research agenda and communication needss

Research developed in function of needs of the public health community and HCPs

Communication adapted towards the needs of HCPs

Suppliers and business partners

Supplier & business partner due diligence

Incorporation of sustainability criteria into contracts with suppliers and CMOs (Contract Manufacturing Organization)

Member of the PSCI

Industry collaborators

Regular supplier relationship management

To meet the demands of the market

To alleviate internal production capacity

To assess and manage business ethics risks of third-party inter-mediaries

Continuously implement sustainability clauses into contracts at relevant suppliers & business partners

Alignment on mutual sustainability actions and ambitions

Business continuation plans

Alignment on business ethics requirements with third-party intermediaries

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Bavarian Nordic Annual Report 2025

How we engage

Why we engage

Outcomes of engagement

Investors, analysts & media

Investor/sell-side meetings

Investor roadshows & conferences

Stock exchange announcements

Conference calls

Capital Market Days

Annual General Meetings

ESG questionnaires and ratings

To provide relevant, timely, and accurate information about strategic, economic, financial, operational, and scientific affairs of the company

Support of fair valuation of Bavarian Nordic shares

Improved transparency and disclosure of information

Maintenance of existing shareholder relations

Continued attraction of potential shareholders

Identified improvements in ESG targets

Industry bodies & regulators

Direct dialogue with policymakers

Regulatory advice on manufacturing development plans, non-clinical and clinical studies

External ethical committees for clinical and animal studies

Submission of marketing approval of a product with regulators

Submission of new product information or changes to product information for request for dialogue with regulatory agencies on product information

To share data analysis, reviews, studying data

To gain the regulators alignment on processes related to nonclin-ical studies, clinical trials, and manufacturing processes

To comply with international ethical standards for human research and animal welfare

To obtain a marketing license for a product

To discuss and align on product information contained within the label to maintain compliance and accuracy

Provide information for policy makers to make a decision on product use

Implementation of latest regulations, ensuring compliance to good practice guidelines (GxP) in product development

Safe and ethical practices for patients and animals

Compliance with regulatory Good Practice (GxP) standards so consumer safety and product quality standards are met

Aligned product information agreed on with the regulatory agencies which is used to inform HCPs about the product

Animals for testing (silent stakeholder)

Frequent consultations with Animal Welfare Officer and internal committee

Regular inspections and monitoring by veterinarians and trained staff

Internal audits and welfare assessments in line with EU Directive 2010/63/EU

Staff training on ethical handling and welfare standards

To ensure compliance with ethical standards for animal care and use

To identify and act on opportunities to apply the 3Rs (reduce, refine, replace)

To drive continuous improvement in animal welfare practices and routines

To maintain an open forum to discuss welfare measures and alternative methods

Continuous enhancement of housing, enrichment, and handling standards

Refined monitoring criteria and pain minimization techniques

Enhanced staff awareness and competence

Strengthened alignment of testing procedures with internal policies and regulatory standards

Gradual replacement of in-vivo tests

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Bavarian Nordic Annual Report 2025

Methodology & key assumptions

The 2025 DMA process was based on the method-ology, thresholds, and conclusions from the 2024 DMA, which were prepared on the principles laid out in ESRS 1. Internal subject matter experts were selected to participate in a series of workshops based on their in-depth knowledge of affected stakeholders and users of the sustainability state-ments. The internal subject matter experts repre-sented both internal and external stakeholders such as suppliers, investors and employees.

Scoring thresholds and methodology

The thresholds and time horizons used for scoring IROs were inspired by our Enterprise Risk Manage-ment (ERM) methods to the greatest extent possible; however, this was adjusted where not suitable. For topics with human rights relevance,

lower thresholds were applied to reflect the height-ened severity and sensitivity of potential adverse impacts on people.

Internal subject matter experts scored the IROs in collaboration with the ESG Finance and Corporate Sustainability departments, after which the results were reviewed by senior management.

Actual impacts were assessed on a gross basis, meaning they were evaluated at full magnitude without considering existing mitigation measures. Potential impacts and risks were also scored on a gross basis for severity, including potential finan-cial effects, while likelihood was assessed based on expected occurrence before the effects of any current response or control measures. The scoring

parameters used throughout the process were based on the ESRS:

Impact materiality: Scale, scope, irremediability, likelihood (based on if an impact is positive/nega-tive and actual/potential). For potential negative human rights impacts, severity (assessed based on scale, scope and irremediability) took prec-edence over the likelihood of the impact when scoring. For positive impacts, materiality was determined according to scale, scope and (for potential positive impacts) likelihood. These adjustments are made in alignment with ESRS 1, 45.

Financial materiality: Financial magnitude of risk/opportunity, likelihood, and the nature of the financial effect.

Decision-making and internal control procedures

Key decisions during the 2025 DMA process related to identifying relevant internal subject matter experts, defining and scoring IROs, assessing their materiality, and validating and signing off the final outcomes. The DMA process was led by Corporate Sustainability and supported by ESG Finance, while individual topical experts contributed scoring and IRO insights within their specific responsibil-ities. This structure ensured that the assessment was overseen by three different internal parties, providing both methodological control and opera-tional validation.

Throughout the process, regular sense checks were conducted to confirm that no material sustainability matters were overlooked or insufficiently consid-ered. Scoring was tracked in a structured IRO work-

Key assumptions

Point-in-time assessment:

Sustainability issues evolve over time, influencing their impact, risk, and significance for Bavarian Nordic or affected stakeholders. The DMA conducted provides a snapshot of material IROs at that specific point in time.

Anticipated financial effects:

The financial effects of sustainability matters were assessed qualitatively. Given the early stage of understanding these IROs, quantifying them was deemed premature at this stage.

Best available knowledge:

Evaluations of potential impacts, outcomes, and effects were performed by individuals with industry expertise, using the best information available. However, research and comprehension of sustainability matters vary depending on the topic.

Use of internal stakeholders as proxies:

Internal stakeholders (also referred to as subject matter experts) acted as representatives for external parties such as suppliers, investors, and employees. The subject matter experts were selected for their insights and acted as proxies in the absence of direct external engagement.

Identification of relevant stakeholders and impacts:

Our subject matter experts identified relevant stakeholders and potential impacts using their expertise and the best available knowledge. While there is a risk of missing certain impacts or stakeholders, this was mitigated by reviewing material IROs against industry peers.

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Bavarian Nordic Annual Report 2025

book managed jointly by the Corporate Sustain-ability and ESG Finance departments to ensure consistent application of the methodology. Each score was accompanied by a documented rationale, including potential linkages between impacts and financial risks and opportunities. The assessment of the IROs were made based on predetermined criteria, with input from all participants, and were approved during workshops and validation sessions. This internal review and approval procedure ensured accountability, traceability of decisions, and a controlled application of the materiality method-ology.

Future steps: integration, monitoring and review

Currently, there is no formalized process to inte-grate the DMA results of IROs into our ERM process, although both processes influence and inspire one another. The 2024 DMA has formed the baseline for our 2025 DMA, conducted in alignment with the Corporate Sustainability Reporting Directive (CSRD). We will continue to conduct an annual review of the DMA and its findings to account for evolving trends, shifting assumptions, changing contexts, and new regulatory developments.

When deemed necessary, an evaluation of the DMA process will be carried out to ensure it continues to accurately reflect our material IROs. Additional internal documents and data as well as external sources such as scientific articles, reports and regu-latory information were used as proxies to identify and assess material IROs.

Climate change DMA process

Our DMA is the foundation upon which we assess and determine material IROs. Climate-related IROs are a fundamental part of that assessment. Addi-tionally, our assessments based on the Task Force on Climate-related Financial Disclosures (TCFD) recom-mendations also inform this process to identify and assess material climate-related IROs.

To integrate the identification and management of climate hazards and/or the risks posed by the transition to a low-carbon economy into our existing systems and processes, we have integrated climate assessments into our ERM process. The ERM process is coordinated by the Finance department with responsibility for overseeing our ERM program and reports to the FRAC. Each risk has a defined risk mitigation plan directed by relevant members of the senior leadership team.

In 2024, we reviewed our 2022 TCFD assessment. The review considered updated information, including the acquisition of two new sites, a refreshed governance structure, as well as new additions to our vaccine portfolio. The 2022 TCFD assessment involved a screening exercise across our facilities in Denmark to identify sources of greenhouse gas (GHG) emissions, primarily focusing on scope 1 and 2 emissions. The updated version in 2024 also captures our Swiss manufacturing site and updated product portfolio. Actual and potential impacts on climate change were assessed with

specific emission data reported for heating, elec-tricity generation and transport emissions. We did not update the assessment in 2025 as we believe the conclusions remain the same, and that our resil-ience was captured and assessed in both our annual ERM assessment and in our 2025 DMA. This process evaluated energy efficiency initiatives, such as the implementation of LED lighting and heat pumps to reduce operational emissions. We also explored the purchase of renewable energy certificates.

Scenario analysis

We assessed climate-related physical and transition risks and opportunities against two physical and two transition scenarios under different time periods. This analysis covered our own operations and our upstream and downstream value chain.

Scenario analysis for physical climate risk

For the purpose of considering the physical risks that climate change may pose to us by mid-century, the Intergovernmental Panel on Climate Change's Shared Socioeconomic Pathway (SSP) 5-8.5 and 2-4.5 were used. Assessing against these scenarios helps us identify climate-related hazards and how our assets and business activities are exposed to such hazards.

The former is a ‘worst case-high emissions’ scenario that assumes ‘business-as-usual’, while the latter is considered a ‘middle of the road’ approach to mitigation and adaptation, with a reduction in GHG

emissions and lower warming threshold than SSP5-8.5. The timeframes for our physical risk scenario analysis are split into near-term (present-2040), where initial impacts like increasing heatwave frequency and water scarcity are expected to begin affecting operations; Medium-term (2040-2060), where the severity of extreme weather events is anticipated to increase further. These time horizons were selected based on the expected lifetime of our assets, strategic planning horizons, and the evolving capital allocation plans for infrastructure upgrades.

Scenario analysis for transition risk

For the transition risk assessment, the Net Zero Emissions by 2050 Scenario and the Stated Policies Scenario from the 2022 World Energy Outlook report, published by the International Energy Agency were selected. These scenarios represent a ‘worst case’ and a ‘favorable case’ respectively, enabling a stress test of our resilience to the transition to a low-carbon economy. These scenarios were considered over three time frames: short-term (time of assessment - 2025), medium-term (2025-2030) and long-term (2030–2040).

The key drivers considered in these scenarios include:

Policy assumptions: For example, carbon pricing and increasing energy efficiency standards are central in both scenarios

Energy usage and technology assumptions: The transition scenarios evaluated the expected shift towards clean energy sources and the adoption

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Bavarian Nordic Annual Report 2025

of low-carbon technologies like heat pumps and electrification of vehicles. These assumptions were critical in assessing how quickly our facilities and supply chains could adapt to future regula-tions and market changes

Macroeconomic trends: The analysis considered trends like rising carbon prices and the introduc-tion of emissions trading schemes, which could increase operational costs and affect our competi-tiveness

The transition risk assessment covered both tran-sition risks and opportunities. For each risk and opportunity, the scenario analysis assessed different points in time and the potential impact on our busi-ness was classified between very low to very high based on predefined materiality criteria, including financial and reputational thresholds. The outcomes of the scenario analysis reflect the anticipated level of risk at those future points in time, rather than aggregated risks over that period. The process to identify transition risks and opportunities included our assets and business activities that may be deemed incompatible with or need significant efforts to be compatible with a transition to a climate-neutral economy in that it included scope 1 and 2 emissions, which allows us to track and identify high-emission assets or activities.

The climate scenarios used in our analysis have been evaluated in the context of our financial planning and assumptions to ensure consistency.

Specifically, the financial thresholds used in the scenario analysis, as well as the DMA, are consistent with the financial materiality thresholds of our ERM system. We have not conducted a resilience analysis as defined under the ESRS. However, we believe that the core elements of resilience are embedded in our climate-related risk assessment processes and actions, which are informed by the recommenda-tions of the Task Force on Climate-related Financial Disclosures (TCFD).

Similar to other areas, climate-related topics are taken into consideration in our ERM. As mentioned previously in this section, we performed a climate scenario analysis in 2022 (and updated in 2024) and it assessed potential impacts across near-, medium-, and long-term horizons and informed mitigation measures such as energy efficiency initiatives, renewable energy sourcing, and supplier engage-ment. The analysis, and ongoing actions provide insight into how our strategy and our business model respond to climate-related risks (See Climate change).

DMA process for remaining topics

Environmental topics

During the DMA process, interviews with internal subject matter experts were used to identify and assess pollution-related, water-related, biodiver-sity-related and resource use-related actual and potential IROs relating to our business activities.

In our assessment of biodiversity and ecosystems, we identified dependencies in our upstream value chain, specifically our reliance on horseshoe crab blood for endotoxin testing, but 'systemic risks' were not considered as we have yet to develop the methodology to do this. Additionally, biodiversity assessments were conducted again this year for our Danish and Swiss manufacturing sites, using WWF Biodiversity Risk Filter. The 2025 assessments indi-cated a physical risk score of 3.32 (Medium) for our Danish manufacturing site and 2.95 (Medium) for our Swiss manufacturing site. Compared to 2024, the results show minor variations in overall risk levels, with our Swiss manufacturing site moving from a low to a medium risk category.

At our Danish manufacturing site, a lake classified as a protected area under the Danish Protection of Nature Act §3 was identified. The lake serves to capture and retain rainwater for ours and neigh-boring properties. This highlights a dependency on ecosystem services, which we are investigating and investing in, to further increase resilience and enhance nature.

In 2025 we concluded our biodiversity monitoring project, which involved continuous data collection on flying insect species at our Danish and Swiss manufacturing sites. Species diversity and abun-dance were used to compare against reference sensors to inform potential mitigation or enhance-ment options. We have begun to engage with

communities regarding shared biological resources and ecosystems at our Danish manufacturing site.

Our assessments and actions reflect a commitment to understanding and addressing biodiversity and ecosystem-related dependencies, impacts and opportunities. Monitoring and further evaluations will support our decisions on potential mitigation initiatives. We did not conduct consultations with affected communities in E2 and E5 as the material IROs are centred around internal use and waste streams onsite.

Business conduct

This process looked more specifically at areas relating to the research, development, manufac-turing and commercialization of vaccines, with a pharma and healthcare angle.

The identification of IROs in relation to business conduct matters therefore involved a mapping of key activities and locations within our value chain which had elevated potential impacts or risks associated with corruption and bribery risks and non-respect for human rights and other breaches of our Code of Conduct. In the process we also assessed high-risk factors including geographic risks and types of interactions (carried out by us) or on our behalf in our value chain. Similarly, in relation to animal welfare, we focused our attention on our in-house facilities and processes related to housing and handling of mice.

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Bavarian Nordic Annual Report 2025

The presented table summarizes the impacts, risks, and opportunities (IROs) deemed material through our 2025 double materiality assessment (DMA). All identified IROs are covered by European Sustainability Reporting Standards (ESRS) disclosure requirements. Most material IROs relate to our own operations and are closely linked to vaccine manu-facturing. Material IROs in our upstream value chain primarily concern carbon emissions and working conditions among workers in our supply chain. In our downstream value chain, material IROs relate mainly to consumers and end-users of our vaccines.

Our impacts stem directly from activities central to our business model and affect people and the environment to varying degrees, depending on our ability to manage them effectively. There are no current significant financial effects related to our identified risks and opportunities. Detailed descrip-tions of each material IRO can be found in the respective topical ESRS sections.

Resilience of our strategy and business model

Our strategy and business model demonstrate inherent resilience in managing material sustain-ability-related IROs. As a vaccine company, our core purpose of protecting people naturally aligns with key sustainability priorities, including access to vaccines, safeguarding our workforce, and ensuring a responsible value chain. These priorities are embedded in our operations and reinforce our ability to address material IROs proactively through processes and actions disclosed in these state-

ments. General resilience considerations related to identified material IROs are captured on a qualita-tive basis through discussions with subject matter experts. This included the application of the same time horizons assessed in the DMA.

Changes to material impacts, risks, and opportunities

In 2025, all material IROs identified in the 2024 DMA were reassessed. Where applicable, this reassess-ment resulted in updates to wording and definitions, adjustments to time horizons, and refinements to the assessed direction and magnitude of IROs across the value chain. For some IROs, the 2025 DMA has resulted in more significant changes. These are outlined below.

Climate change, Pollution, Biodiversity

In E1 Climate change, the actual negative impact “Reliance on energy sources stemming from the use of fossil fuels” has been assessed as not material. The 2025 assessment concluded that this impact is sufficiently covered within other material E1 impacts, and we will maintain the material information (data points) which relate to energy use, and therefore no longer require separate impact disclosure.

In E2 Pollution, the risk “Further restriction on the use of substances of very high concern” has been assessed as not material. Based on the 2025 assessment, this risk did not meet the materiality thresholds due to a greater understanding of our use and dependence on the respective substances of

very high concern (SVHCs), and as such no longer deemed the topic as material risk.

In E4 Biodiversity and ecosystems, the risk "Continued regulation on horseshoe crab reliance" has been assessed as not material. Based on the 2025 assessment, this risk is no longer deemed likely as we have begun planning for transition from LAL to a recombinant alternative in our manufac-turing processes. Additionally, regulatory require-ments to maintain processes reliant on LAL for endotoxin testing are loosening. Therefore, this is no longer deemed a material risk.

Own workforce

In S1 Own Workforce, the topic was fully reassessed in 2025 using a more granular assessment approach. This resulted in more detailed scoping and descrip-tions of material impacts and risks and led to an increased number of identified material impacts and risks compared with 2024.

In 2025, the potential negative impact "Health & safety of our own workforce" has been replaced by three separate potential negative impacts and one risk, providing a more precise representation of underlying elements. Furthermore, the 2024 risk “Equal treatment and opportunities” has been removed. The underlying elements are now addressed within other material S1 impacts and risks identified through this more granular assessment.

Disclosure requirements covered in the sustainability statements

Double materiality assessment for other topics

The identified IROs related to ESRS E3 Water and Marine Resources and ESRS S3 Affected communities were not deemed material because they did not meet the materiality thresholds established during the DMA. Our operations, which primarily involve the production of vaccines, are not heavily water-dependent and do not materially affect any communities through our operations, resulting in minimal impact and negligible financial or reputa-tional risk in these areas.

Determination of material information

To determine the material information disclosed in our sustainability statements, we conducted an assessment of our mate-rial IROs.

This effort was carried out through collab-oration between the Corporate Sustain-ability and ESG Finance departments, ensuring an integrated approach across functions. The process was designed to align our disclosed information with the outcome of the DMA (see The double materiality assessment process).

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Bavarian Nordic Annual Report 2025

Interaction with strategy and business model

Our climate-related impacts and risks are closely linked to the nature of our business model and global value chain. As a pure-play vaccine company, our operations span research and development, manufacturing, commercialization, and distribution of vaccines. These activities are resource-intensive and rely on both internal capabilities and external partners, including contract manufacturing organizations, raw material suppliers, and logistics providers.

We recognize the need to address climate change and align with the goals of the Paris Agreement. In response to assessing material impacts, risks and opportunities (IROs), we review our greenhouse gas emissions (GHG) and decarbonization opportu-nities on a quarterly basis, and continue to assess and outline the steps we will take to advance our commitment to reducing our GHG footprint. Bavarian Nordic is not excluded from the EU Paris-aligned benchmarks.

Our internal governance documents drive the management of climate change-related impacts and risks. We currently do not have a policy directly addressing climate change mitigation, adaptation, energy efficiency or renewable energy, because our actions to reduce our impact on climate change are captured within our Global Environmental, Health and Safety Policy. Our climate transition plan includes an evaluation of the most efficient decar-bonization levers to reduce GHG emissions, priori-ties, timelines and targets.

We have not in 2025 allocated significant monetary amounts, in relation to CapEx and OpEx, to implement actions taken or planned, in neither line items or notes in the financial statements, nor key performance indica-tors required under Commission Delegated Regulation (EU) 2021/2178 (EU Taxonomy).

Material impacts, risks and opportunities

We identify and assess our material climate-related IROs to understand how climate change may influence our operations, value chain, and long-term business environment. This assessment supports transparency and informed decision-making, and helps ensure that climate considerations are appropriately reflected in our strategy, risk management processes, and ongoing sustainability reporting.

Systems controlling use of refrigerants

The potential failure of systems controlling refriger-ants could release CO₂ equivalents. Some refrigerants are classified as having a high global warming poten-tial, and failures in containment systems can result in significant GHG releases. This potential impact is a result of our requirement for temperature-controlled operations in the manufacturing, storage, and distri-bution of biopharmaceutical products and is essential to maintain the stability and efficacy of tempera-ture-sensitive products.

Actions

To mitigate the risk of refrigerant leaks, refrigeration units are inspected and serviced annually according to legislation in Denmark and the EU. We have service agreements for inspection and maintenance of all units every year which include leak testing for refrig-erants. Some units are inspected over and above

requirements because cold storage of production materials and final products is so critical. Measures to track effectiveness of refrigerant inspections include monitoring the frequency of inspections relative to the identification of issues or leaks.

Extreme weather events at production sites and in supply chain

Our production sites could face a physical risk from extreme weather events, such as flooding, which could disrupt manufacturing operations. Increased frequency and intensity of storms and floods, accelerated by climate change, may impact facility integrity and production continuity in the medi-um-term. This could lead to repair costs, operational downtime and disruptions to supply of products to market if not taken into consideration and mitigated correctly through adaptive preventative maintenance

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Bavarian Nordic Annual Report 2025

programs and infrastructure investment. Flooding at production sites could have effects on our business model by causing production delays and increased costs. In the medium-term, we may face the need to allocate additional resources to flood prevention measures or rapid response systems to ensure opera-tional continuity.

We could face physical risks associated with extreme weather conditions, which could potentially disrupt our supply chain in the medium-term. Extreme weather events, such as floods, storms, or heat-waves, have the potential to delay or disrupt supplier deliveries. This could have a cascading effect on our business model, leading to increased costs and delays although our current financial position has not been affected.

Actions

Currently we work with minimum inventory levels and have business continuity plans in place to miti-gate and respond to extreme weather events, and we are further assessing what can be done in case of such events. We have a specific project underway to increase the capacity of our Danish manufacturing site to manage surface water and prevent flooding. To mitigate the potential risk of extreme weather events in our supply chain further, we aim to employ dual sourcing and work with minimum inventory levels. Measures to track effectiveness of business continuity plans include testing performance in scenario-based simulations, and strengthening miti-gation based on identified gaps.

GHG emissions

GHG emissions contributing to climate change

Our current manufacturing processes rely partly on energy sources that originate from fossil fuels. This reliance leads to release of GHG emissions asso-ciated with fossil fuel combustion, contributing to climate change. For example, steam production is a requirement of our manufacturing processes, and we are currently using natural gas and heating fuel to produce steam.

Transition plan for climate change mitigation

In 2024, we began to assess the compatibility of our GHG emission reduction targets with a 1.5°C pathway. Recognizing the importance of adhering to the Paris Agreement, we align with the Science-Based Targets initiative (SBTi). We also aim to secure third-party validation for our emissions targets, to reinforce the integrity and transparency of our commitments.

The transition plan is our starting point in our commitment to mitigate climate change risks and takes into consideration the identified main decar-bonization levers (electrification, renewable energy sourcing, energy efficiency), resilience actions (preventive maintenance and flood prevention,

supplier engagement targets), and business conti-nuity planning across the value chain. With input, involvement and approval by Executive Manage-ment, the analysis and targets show our commit-ment to mitigating material climate change-related impacts and risks and subsequently constitute an alignment with our overall business strategy and financial planning.

We have conducted a qualitative assessment of potential GHG emissions from Scope 1 and 2 sources. This assessment focused on assessing locked-in

emission sources associated with energy-intensive equipment that requires long-term planning to abate. By focusing efforts on persistent operational dependencies on fossil fuels or legacy systems, we prioritize decarbonization levers that will have the most significant positive impact. While we focus on the most material emission sources, we also take the opportunity to make reductions and transitions wherever we can. Progress on implementation of the transition plan can be found in the sections below.

93.9%

Scope 1

Direct emissions

5.5%

Scope 2 (MB)

Indirect emissions: Energy

0.6%

Scope 3

Indirect emissions: Value chain

GHG emissions by Scope in 2025 (% of Total Emissions)

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Bavarian Nordic Annual Report 2025

Actions

We are focused on actions to align with our climate commitments and science-based target ambitions. In 2024, to drive meaningful progress toward our emission reduction goals, we concentrated on opti-mizing energy systems, transitioning to renewable energy and developing a near-term science-based climate target. In 2025, we went deeper into Scope 1 and 2 reductions through equipment electrification, transitioning to biofuels and increasing our invest-ments in renewable energy.

Action 1

Scope 1 emissions in manufacturing

During the reporting year, we implemented two key initiatives to reduce Scope 1 emis-sions. Firstly, at our Swiss manufacturing site, we have started a multi-year phased project to convert our heating and cooling system to a modular electric heat pump system. Once fully implemented, this change will eliminate thousands of tons of CO2. As this is a phased project, the first phase was approved in 2025 and will be initiated in 2026. The third and last phase is expected to be completed, at latest, by 2030. Secondly, at our Danish manufacturing site, we are transitioning from fossil fuel based diesel to hydro-treated vege-table oil to power our emergency generators.

Action 2

Renewable energy sourcing

In 2024, we signed our first Power Purchase Agreement (PPA) for our Danish manufacturing site, ensuring the use of at minimum 80% renewable electricity. The agreement took effect in November 2024 and covered the final two months of the year, resulting in 750 tonnes of CO₂e savings. In 2025, we strengthened our commitment by sourcing nearly 100% of the site’s electricity from wind and solar assets through the PPA. With the agree-ment active for the full year, our annual Scope 2 (market-based) emissions savings increased to approximately 3,600 tonnes - an improvement of 2,850 tonnes compared with 2024 (see Metrics). From 2026 onward, we do not expect similarly large year-over-year improvements, as the full-year PPA benefit will remain consistent going forward.

Gross Scope 2 GHG emissions 2024-2025 (MB)

Action 3

Supplier engagement

In 2025, we have matured our approach to Scope 3 emissions using a tool to evaluate and track the climate target maturity of our top suppliers. We prioritize suppliers within the categories Purchased goods and services, Capital goods, and Upstream transportation and distribution. This initiative supports our broader climate strategy by ensuring that key partners align with our values and reduction targets, and that we select suppliers considering their actions to mitigate climate change.

Significant Scope 3 GHG emissions

●1. Purchased goods and services

●2. Capital goods

●3. Fuel and energy-related activities

●4. Upstream transportation & distribution

●5. Waste generated in operations

●6. Business travel

● 7. Employee commuting

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Bavarian Nordic Annual Report 2025

Targets

In 2024 we committed to a near-term science-based targets to reduce GHG emissions in line with a 1.5°C global warming pathway. This commitment is grounded in quantitative goals across Scope 1, 2 and 3 emissions, with targets aligned to support near-term (2030) objectives. We also aim to reach net-zero emissions across Scopes 1, 2, and 3 by 2050. We intend to pursue SBTi validation of our near-term targets in 2026. The target setting process involved several key departments, including the following key teams through meetings and workshops: Global

EHS, Corporate Sustainability, Global Engineering, and Global Procurement.

The current targets for Scope 1 and 2 emissions involve a 42% absolute reduction by 2030, using 2023 as the base year. These are gross targets, with no reliance on GHG removals, carbon credits, or avoided emissions.

For Scope 3 emissions, we have committed to working with suppliers to align their practices with our climate goals. The target is for 70% of suppliers,

by spend, covering purchased goods and services and capital goods, and 90% of suppliers by spend covering upstream transportation and distribution, to establish science-based targets by 2029.

Our targets follow a sectoral decarbonization pathway using a climate scenario model aligned with the Paris Agreement. The SBT feasibility analysis incorporated future factors such as shifts in customer demand, regulatory developments, and technology advancements, which are expected

to influence both emissions levels and reduction potential.

We also use internal annual CO2reduction targets focusing on energy efficiency and fossil fuel reduc-tion projects. The allocation of our annual bonus pool is linked to achievement of these targets (see Sustainability-related performance in incentive schemes).

Scope 1 and 2 reduction targets (from a 2023 baseline):

Minimum 4.2% annually (until 2027) of total Scope 1 and 2 GHG emissions

42% reduction of total Scope 1 and 2 GHG emissions by 2030

Net-zero by latest 2050

Key decarbonization levers

To achieve our GHG reduction targets, we have identified key decarbonization levers across our operations:

Renewable energy sourcing

We have committed to renewable energy sourcing, including a PPA for our Danish manufacturing site and Renewable Energy Credits for our Martinsried site.

Biogenic fuels

We have committed to a transition from fossil fuel derived diesel to bio-based alternative at our Danish manufacturing site, and will investigate opportunities for other sites, which would reduce approximately 2.5 kg CO2e per liter compared to conventional diesel.

Electrification of key systems

Electrifying core operational systems to replace fossil fuel-dependent processes would reduce Scope 1 CO2e emissions by 73% compared to the 2023 baseline.

Supplier engagement

Our suppliers setting their own science-based targets is a lever for reducing Scope 3 emissions. This initiative focuses on high-emission categories such as purchased goods and services, and upstream transportation. By covering 70-90% of key supplier emissions by 2029, this action will align our supply chain with our climate goals.

With 2023 serving as a baseline year, we will monitor the progress of our actions against our climate targets. With the updated baseline, due to restatements, with the reductions we have seen in scopes 1 and 2 in 2025, this will not affect our progress to meet our near-term targets.

Scope 1 and 2 GHG emission reduction targets and progress

● Scope 1

● Scope 2 (MB)

Target projection

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Bavarian Nordic Annual Report 2025

Metrics

Scope 1

Our Scope 1 emissions are primarily driven by the usage of natural gas and diesel oil for steam production and heating. Their modest decrease in 2025 is primarily associated with the closure of our natural-gas-dependent research site in San Diego early this year.

Scope 2

We achieved a substantial reduction in our Scope 2 market-based emissions in 2025, which can be primarily attributed to the full-year effect of our Power Purchase Agreement (PPA) for the Kvistgaard site (see Renewable energy sourcing). Additionally, further improvements in 2025 came from a cleaner

residual mix in the Danish grid, reflected in a 28% decrease in the market-based emission factor.

Our Scope 2 location-based emissions also declined compared to 2024, mainly due to a 31% decrease in the location-based emission factor for electricity production in Denmark and a 7% decrease in Germany. This improvement reflects the growing share of renewable energy in the national grids, where the majority of our Scope 2 emissions are generated. Around 300 tonnes of emissions decrease are also resulting from the closure of the research site in San Diego in 2025.

Scope 3

Our Scope 3 emissions increased compared to 2024 and this development can be mainly attributed to GHG emissions yearly rise in categories 1, 2 and 5.

Increased GHG emissions in category 1 reflect higher operational spending this year, mainly due to launch of our chikungunya vaccine which includes added marketing costs, the establishment of sales entities in new countries and general commercial ramp-up.

Growth of our GHG emissions in category 2 was primarily driven by expansion of our Swiss facility and construction of a new production building in 2025.

Yearly development of emissions in category 5 is a result of increased wastewater volumes generated at our Danish production site. Wastewater generated at this location accounts for 96% of our emissions in this category (see Resource use and circular economy).

In accordance with the GHG Protocol Scope 2 Guidance, we have applied both the loca-tion-based and market-based methods to calculate our Scope 2 GHG emissions. For the market-based method, we utilized the following bundled instruments to cover a portion of our purchased energy consumption: Power Purchase Agreement (PPA) covering 58% of our purchased energy and a green electricity certificate covering 4% of our consumption. We did not use any unbundled instruments during the reporting period.

Total Scope 3 GHG emissions 2024-2025

Total GHG emissions (MB) 2024-2025

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Bavarian Nordic Annual Report 2025

Gross scopes 1, 2, 3 and total GHG emissions

E1- table 1

in tonnes of CO2e

2025

2024

2023

(Base year)

2024/2025 % change

Scope 1 GHG Emissions

Gross Scope 1 GHG emissions

3,218

3,5192

3,7292

-9%

Percentage of Scope 1 GHG emissions from regulated emission trading schemes

- %

-%

- %

- %

Scope 2 GHG Emissions

Gross location-based Scope 2 GHG emissions

1,130

1,715

3,038

-34%

Gross market-based Scope 2 GHG emissions

353

4,7143

5,2553

-93%

Significant Scope 3 GHG emissions

1) Purchased goods and services

33,385

26,111

40,3901

28%

2) Capital goods

6,580

5,399

37,8121

22%

3) Fuel and energy-related activities (not included in

Scope 1 or Scope 2)

1,533

1,620

1,7331

-5%

4) Upstream transportation and distribution

5,111

4,504

4,1391

13%

5) Waste generated in operations

5,230

4,430

2121

18%

6) Business travel

1,248

1,286

1,1481

-3%

7) Employee commuting

1,530

1,683

1,5821

-9%

Total Scope 3 GHG emissions

54,616

45,031

87,0241

21%

Total GHG emissions

Total GHG emissions (location-based)

58,964

50,266

93,791

17 %

Total GHG emissions (market-based)

58,187

53,264

96,008

9 %

Outside of scopes emissions

Biogenic emissions

693

6042

6512

15 %

1 Not subject to assurance.

2 We source gas from a grid-supplied pipeline containing both fossil natural gas and biomethane. Previously, all gas consumption was classified as fossil-based. To better reflect our impact, prior years have been corrected by allocating gas use between fossil and biogenic components based on supplier data - Scope 1 emissions decreased by 635tCO2e in 2023 and by 592tCO2e in 2024.

3 In 2025, we received documentation confirming that electricity supplied by our Martinsried site landlord in 2023 and 2024 was covered by renewable energy certificates. Previously reported figures have been restated to reflect renewable energy use - emissions decrease by 1,063tCO2e in 2023 and by 508tCO2e in 2024.

GHG intensity based on net revenue

E1- table 2

in tonnes of CO2e/million DKK

2025

2024

Total GHG emissions (location-based) per net revenue

9.4

8.8

Total GHG emissions (market-based) per net revenue

9.3

9.3

Energy consumption and mix

E1 – table 3

in megawatt hours (MWh)

2025

2024

Fuel consumption from coal and coal products

0

0

Fuel consumption from crude oil and petroleum products

8,541

8,027

Fuel consumption from natural gas

5,797

6,5341

Fuel consumption from other fossil sources

0

0

Consumption of purchased or acquired electricity, heat, steam, and cooling from fossil sources

6,027

13,9552

Total fossil energy consumption

20,365

28,516

Share of fossil sources in total energy consumption (%)

60 %

82 %

Consumption from nuclear sources

0

0

Share of consumption from nuclear sources in total energy consumption (%)

- %

- %

Fuel consumption for renewable sources, including biomass (also comprising industrial and municipal waste of biologic origin, biogas, renewable hydrogen, etc,)

3,655

3,1901

Consumption of purchased or acquired electricity, heat, steam, and cooling from renewable sources

10,201

2,9062

The consumption of self-generated non-fuel renewable energy

0

0

Total renewable energy consumption

13,856

6,096

Share of renewable sources in total energy consumption

40 %

18 %

Total energy consumption

34,221

34,612

Energy intensity per net revenue (MWh/mDKK)

5.5

6.1

1 We source gas from a grid-supplied pipeline containing both fossil natural gas and biomethane. Previously, all gas consumption was classified as fossil-based. To better reflect our impact, prior years have been corrected by allocating gas use between fossil and biogenic components based on supplier data - 3,190MWh of our gas usage reclassified to renewable energy consumption.

2 In 2025, we received documentation confirming that electricity supplied by our Martinsried site landlord in 2024 was covered by renewable energy certificates. Previously reported figures have been restated to reflect renewable energy use - change by 705MWh.

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Bavarian Nordic Annual Report 2025

Accounting policies

Scope 1

Scope 1 emissions are reported based on the Green-house Gas (GHG) Protocol and cover all direct emissions of greenhouse gases generated by us. They include GHG emissions from fuels combustion and fugitive emissions from refrigerants.In calculating CO2e emis-sions, specific emission factors relevant for the emis-sions type are used. Applied emission factors are based on the most recent data provided by third parties, such as the Department for Environment, Food & Rural Affairs (DEFRA) or refrigerant suppliers.

Scope2

Scope 2 emissions are reported based on the GHG Protocol and include indirect GHG emissions from the generation of electricity and heat purchased and consumed by us. When calculating emissions in Scope 2, both the location-based method and the market-based method are utilized, as recommended by the GHG Protocol. Location-based emissions are based on national average emission factors for the respective locations. Market-based emissions are based on either supplier specific emission factors (for the electricity associated with contractual instruments such as Power Purchase Agreements or Guarantees of Origin) or on residual mix emission factors.

Scope 3

Scope 3 emissions are calculated based on activity data and reported in line with the GHG Protocol, where the scope 3 inventory is split into 15 subcategories. In 2025, our scope 3 inventory included the following:

Category 1 (Purchased goods and services) based on spend data multiplied by relevant spend-catego-ry-specific emission factors,

Category 2 (Capital goods) based on spend data (CapEx) multiplied by relevant spend-category-spe-cific emission factors,

Category 3 (Fuel- and energy-related activities) based on actual fuel consumption multiplied by rele-vant emission factors,

Category 4 (Upstream transportation and distribu-tion) based on spend data multiplied by relevant spend-category-specific emission factors. It includes fuel for transportation and distribution of both mate-rials sourced from our suppliers and products deliv-ered to our customers, provided the transportation is a service purchased by Bavarian Nordic,

Category 5 (Waste generated in operations) based on actual waste data multiplied by relevant emission factors,

Category 6 (Business travel) based on emissions data provided by travel management service providers or on spend data multiplied by relevant spend-category-specific emission factors,

Category 7 (Employee commuting) based on the employees’ survey used to estimate the distance travelled and travel type (e.g. car or train).

The following categories are not included in our Scope 3 inventory:

Category 8 (Upstream leased assets) as we do not have any leased assets which are not in our control,

Category 9 (Downstream transportation and distri-bution) as our outbound logistics is included in Cate-gory 4 as a purchased service,

Category 10 (Processing of sold products) as our vaccines are the final products and they do not undergo any additional processing,

Category 11 (Use of sold products) as there are no significant emissions associated with administration of our vaccines to the patients,

Category 12 (End-of-life treatment of sold products) as estimated emissions in this category are insignifi-cant (below 1%),

Category 13 (Downstream lease assets) as we do not act as a lessor,

Category 14 (Franchises) as we do not use franchises in our business model,

Category 15 (Investments) as we do not have any significant investments which are not already captured under other categories.

We have set operational control as the organiza-tional boundaries which means that areas where the company has the authority to introduce and imple-ment operating policies are captured under Scope 1. In calculating CO2e emissions, specific emission factors based on calculation method and emissions type are used. Applied emission factors are based on the data provided by third parties, such as DEFRA, Exiobase and Ecoinvent. Category 5 emissions for Danish sites were pre-calculated by the external waste handling supplier.

Percentage of GHG scope 3 calculated using primary data

As of 2025 the majority of Scope 3 emissions calculation is estimated based on spend data. Emissions calculated using primary data from suppliers or other value chain partners account for 17% of our total Scope 3 emissions.

Biogenic emissions (outside of scopes)

Biogenic emissions refer to carbon dioxide (CO₂) released from the combustion of biomass-based fuels such as biomethane and biodiesel. In accordance with

the GHG Protocol, biogenic CO₂ emissions are reported separately and excluded from Scope 1 totals, while non-CO₂ gases (e.g., CH₄, N₂O) from these fuels remain included in Scope 1. We allocate natural gas consump-tion between fossil natural gas and biomethane based on the grid composition and disclose biogenic emissions in the separate line item. Emission factors are sourced from Department for Environment, Food & Rural Affairs (DEFRA).

GHG intensity

GHG intensity based on net revenue has been calcu-lated as total gross scope 1, scope 2 location-based/market-based, and gross scope 3 emissions divided by total reported net revenue in mDKK. See note 3 in our financial statement for net revenue used for the metric.

Energy consumption and mix

Energy volumes data are based on meter readings and suppliers' statements. Energy is considered to be derived from renewable sources if the origin of the purchased energy is clearly defined in the contractual arrangements with its suppliers. This includes renew-able power purchase agreements and market instru-ments such as Guarantees of Origin from renewable sources. Otherwise, it is reported under energy from fossil sources.

Energy intensity based on net revenue

This metric is relevant for companies operating in high climate impact sectors only which covers all of our activities (biotechnology and pharmaceuticals – NACE code C21). Energy intensity has been calculated as total energy consumption from all our activities divided by reported total net revenue in mDKK. Since we operate in high climate impact sectors only, we have applied our total net revenue for the intensity calculation. See note 3 in our financial statement for net revenue used for the metric.

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Bavarian Nordic Annual Report 2025

Material impacts, risks and opportunities

The use of certain substances is an inherent part of researching, developing, and manufacturing vaccines. Without appropriate risk mitigation, substances of concern and substances of very high concern can pose risks to the environment and to the people handling them. We have therefore worked to eliminate unnecessary use and limit remaining applications to essential activities, while continuing to evaluate safe handling practices and potential alternatives.

Substances of concern and very high concern

Without appropriate risk mitigation, SoC and SVHC can be harmful to the environment and/or to people handling the substances. The processes in which we use these substances are related to our busi-ness model and strategy as they are crucial parts of our ability to research, develop, and manufacture vaccines. We use SoC and SVHC in research and manufacturing in-house as well as through busi-ness relationships with CROs and CMOs. The risk of using these substances is evaluated as part of the daily operations and strategic decision-making performed by the Environmental, Health, and Safety (EHS) department. The current use of SoC and SVHC is crucial to certain parts of our operations. There is some transitional risk related to potentially having to switch out the use of some of these substances

as a result of restrictions. Due to the likelihood of restriction and the availability of alternatives as well as the costs of process and procedure changes, there is no material financial impact of this risk.

SoCs and SVHCs play a critical role in our manufac-turing processes, ensuring that our vaccines meet the highest standards of quality and safety. We have appropriate authorizations in place for the use of regulated substances. We do not engage in the production, distribution, commercialization, or import/export of these substances. Our focus remains on ensuring safe and compliant use within our facilities, adhering to all relevant regulations and policies.

Policies

Our commitment to environment, health and safety is reflected in our comprehensive policies designed

to manage and mitigate the impacts and risks associated with SoCs and SVHCs. It is primarily our manufacturing sites that use the substances, and they have policies on handling and storage of such substances to minimize the risk of negative impacts from the use of these chemicals. These policies include management's and employees' responsi-bilities in regard to the management of hazardous substances and guidelines on safety measures, both in terms of protective equipment and chem-icals storage and disposal requirements. The poli-cies apply to all employees involved in chemicals storage and handling within our own operations. Heads of the sites are accountable for implementa-tion of those policies.

We also have a policy on monitoring changes in environmental, health and safety laws and compli-ance which is described in our EHS Rules and Regulation. The purpose of the policy is to define the responsibilities for tracking changes in the legis-lation and to establish a procedure for evaluation of compliance which takes place every quarter. Appli-cation of this policy secures our compliance with legislation, helping to increase the safety of chem-icals handling and limit the risk of health or envi-ronmental hazards associated with usage of these substances. The policy applies to specifically listed groups of employees at our Danish sites having EHS

responsibilities within our own operations. The Head of Site at our Danish manufacturing site is account-able for implementation of this policy.

Our EHS Assessment – Chemicals/Products policy addresses the risk associated with the introduction of new SoC and SVHC in relation to environmental, health and safety hazards, risks and regulations. This policy requires us to continuously work on evaluating lower-risk alternatives and to prioritize, where possible, reducing the use of SVHC. The purpose of the policy is to ensure that we seek safer alternatives to reduce our dependency on high-risk substances and prepare us for potential future restrictions. The policy applies to all employees at our Danish sites who introduce, order or buy chemi-cals. Head of Site Kvistgaard (Danish manufacturing site) is accountable for implementation of this policy.

All the policies are accessible to affected stake-holders through our Quality Management System, which is available to all employees.

Actions and progress

Substances of very high concern (SVHC)

In 2025, we discontinued the use of the most significant SVHC by weight in use at Bavarian Nordic, replacing it with safer alternatives. This resulted in a decrease of 91% in the use of SVHC in the produc-

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Bavarian Nordic Annual Report 2025

99%

Diesel oil

tion from 2024 to 2025. The product, containing a reproductive risk, was being used in our utilities system at our Danish manufacturing site. We underwent an analysis of many different products to identify an alternative with no health or envi-ronmental hazards that also met our performance requirements. We also underwent evaluations of all other products reported as SVHC in 2024. These products had SVHC concentrations below thresholds for hazard labelling and we found legacy substances that would be phased out, and products with no alternatives. Going forward, we will continue to evaluate and phase out SVHC wherever possible to maintain this progress.

Substances of concern (SoC)

In 2025, we also continued a complex multi-year project to better identify all the potential SoC used in our operations through the implementation of a global chemicals register covering all our locations. This solution is needed to streamline and unify our chemicals management and reporting processes linking operations, EHS risks and procurement. Progress toward the implementation of our global chemical register will be reported when relevant as part of the quarterly EHS update report.

Compared to 2024, the use of SoC in our production processes remained largely unchanged. Diesel oil continues to account for approximately 99% of the total by weight. Its primary function is steam generation, which is critical to the manufacturing process as it enables disinfection and helps main-tain optimal temperature and humidity levels. In addition, diesel oil powers emergency generators to ensure backup energy supply during electricity shortages and provides general heating for build-ings at one of our production sites.

In 2026 and going forward, we will continue to eval-uate SVHC and some SoC to ensure safe handling procedures, minimize risk and identify alternatives. The objective of this action is to minimize any risk of SoC and to reduce and eliminate the use of SVHC where possible. The scope of this action encompasses our own activities. This includes all geographical locations where we operate.

Substances of concern

E2- table 1

in tonnes

2025

2024

Hazard class

Health hazard

2

81

Environmental hazard

6

1

Health & Environmental hazard incl. diesel oil

588

603

Health & Environmental hazard excl. diesel oil

0

4

Total

596

612

Substances of very high concern

E2- table 2

in tonnes

2025

2024

Hazard class

Health hazard

0.0011

0.01351

Environmental hazard

0.0002

0.0004

Health & Environmental hazard

0.0000

0.0000

Total

0.0013

0.0139

1 Following an internal review conducted in 2025, we identified an error in chemicals classification in 2024 - some substances classified as SVHC should have been classified as substances of concern - correction of 1,613 kg.

Substances of concern

Diesel oil is used for steam gener-ation essential to disinfection and process control, and to power emer-gency generators ensuring backup energy supply.

Reduction of SVHC 2024-2025

SVHC in kg

69

Bavarian Nordic Annual Report 2025

Accounting policies

Substances of concern and substances of very high concern

Only substances of concern and substances of very high concern consumed at the manufacturing sites are considered in the disclosure. Substances used at the research and development facilities are assessed immaterial for sustainability reporting purposes.

The following three hazard classes have been defined as the main hazard classes for Bavarian Nordic:

Health hazard,which include the substances of at least one of the following characteristics:

carcinogenicity categories 1 and 2;

germ cell mutagenicity categories 1 and 2;

reproductive toxicity categories 1 and 2;

endocrine disruption for human health;

Persistent, Mobile and Toxic or Very Persistent, Very Mobile properties;

Persistent, Bioaccumulative and Toxic or Very Persis-tent, Very Bioaccumulative properties;

respiratory sensitization category 1;

skin sensitization category 1;

specific target organ toxicity, repeated exposure categories 1 and 2;

specific target organ toxicity, single exposure catego-ries 1 and 2; or

Environmental hazard,which include the substances of at least once of the following characteristics:

endocrine disruption for the environment;

chronic hazard to the aquatic environment categories 1 to 4;

hazardous to the ozone layer;

Health and environmental hazard,for substances associated with hazards from both hazard classes described above. To avoid duplication, substances captured under this category are not included in the previous categories.

Substances classified under any of the hazard classes listed above are considered substances of concern. Substances of very high concern (SVHCs), a sub-group under substances of concern, are disclosed separately.

Substances of very high concern include substances meeting the hazard classes described in Article 57 of Regulation (EC) No 1907/2006 (REACH) and the process to identify Candidate List substances in accordance with Article 59(1) of that Regulation.

SVHC are disclosed similarly to the substances of concern, using the main hazard classes described above.

Relevant substances to be reported by Bavarian Nordic are identified based on the mapping from our internal chemicals’ management systems. Volumes of

the substances used in the production are extracted directly from the local ERP systems where consumption of materials is registered upon their transfer from a warehouse to production. The volume units are deter-mined upon the registration of the substance being delivered to our production sites. As liquids are typically measured in liters, their volumes have been converted to kilograms. We performed the conversion with a substance-specific factor where possible, otherwise we assumed a uniform density of one kilogram per liter.

We have not identified any substances of concern or very high concern leaving our facilities as emissions, products or part of our products.

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Bavarian Nordic Annual Report 2025

Material impacts, risks and opportunities

We assess material impacts, risks, and opportunities related to our use of Limulus Amebocyte Lysate (LAL) to understand how our activities may affect horseshoe crabs and associated ecosystems, and how regulatory, operational, and scientific developments may influence our approach to endotoxin testing and vaccine quality assurance.

Reliance on horseshoe crabs for endotoxin testing

LAL is isolated from the blood of the North American horseshoe crab, which is currently a species listed as "Vulnerable" on the IUCN Red List. When the blood harvesting process is completed, the horseshoe crabs are released back to the wild. Harvesting results in some mortality and impacts reproduction and marine ecosystems.

The LAL that we use is sourced from an external supplier who is committed to the high standards for licensed and regulated collection of horseshoe crabs which include handling practices and limits for duration of time out of water. Our supplier also participates in a multi-stakeholder process guided by state authorities on the best practices for the handling of horseshoe crabs. These state authorities

also undertake regular monitoring to ensure horse-shoe crab populations remain healthy.

We have not conducted a resilience analysis as defined under the European Sustainability Reporting Standards (ESRS). However, we believe that the core elements of resilience are embedded in our analysis of our current reliance on LAL, where we have considered our own operations and our value chain with regards to the physical, transition and systemic risks and key assumptions related to availability, and regulatory expectations. Based on this assessment and consultation with our supplier, Quality Control and EHS departments, we have assessed that we are resilient to any risk, in the short- and medium-term. This is because of the continued supply of LAL for legacy products licensed with LAL. In addition, the sustainable and regulated management of the horseshoe crab fishery and our

initiated actions to transition from our reliance on LAL for endotoxin testing further reduces risk and strengthens resilience. Based on the assessment, we have initiated a transition plan in line with the time horizons applied in the double materiality assessment (DMA) process. To track progress of our transition plan, the EHS department monitors and reports on performance as part of the quarterly EHS update report.

Policies

Our efforts to reduce our environmental impacts are anchored in our Global Environmental, Health and Safety Policy. We have not adopted biodiversity and ecosystem policies specifically related to horseshoe crabs. Our efforts are focused on understanding our material impact and planning an effective transition.

Actions

In 2025, we began a transition plan to explore how we can reduce our reliance on horseshoe crabs for the use of LAL endotoxin testing methods. We use LAL methods at our Danish manufacturing site. We have identified that no major capital expenses are required to transition methods, and we have ordered a new testing equipment and software as a step toward adopting synthetic Recombinant Cascade Reagent (rCR) methods. A synthetic method is currently in use at our Swiss manufacturing site, and we are assessing opportunities to share knowledge between our sites. We have also engaged in a dialogue with our supplier of LAL testing supplies

about transition and mitigation for horseshoe crab populations. In 2026, we will identify the documentation and filing requirements from health authorities that would be required to switch testing methods

Horseshoe crabs play a key role in coastal ecosystems. Sustainable collection practices and responsible transition strategies are important to protect both the species and associated ecosystems.

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Bavarian Nordic Annual Report 2025

Material impacts, risks and opportunities

We identify and assess material impacts and opportunities related to resource use and waste to better understand how our operations influence resource consumption and waste streams, and to identify opportunities to improve efficiency.

Change of certain manufacturing methods

We are pursuing an opportunity to change parts of our current production methods for one of our vaccines. The update relates to a change of cell substrate, where the updated method is based on a continuous cell line compared to primary cells being used today.

The potential outcome of this would result in signifi-cantly less dependence on certain raw materials and agents required today, significant increase in doses per batch, and less potential for contamination in each batch. As such, this opportunity is currently being pursued as part of our strategic roadmap to secure preparedness to meet global demands in case of future outbreaks.

Policies

With regards to the change of certain manufacturing practices, we do not have a corporate policy, as implementation and governance are captured in several other areas and processes. These relate to several quality and clinical requirements (GxP), all of which are governed by our Quality Department, and Research and Development Department.

Actions

To change production methods, we must take several steps in our own operations which (amongst other things) involve regulatory submissions and approvals. Throughout 2024 and 2025 we have inter-acted with the health authorities, FDA and EMA, and shared information to seek their advice.

Additionally, we have initiated a phase-2 clinical trial bridging study in adults, as it is required to ‘prove’

comparability of the new versus the old production method. These actions in 2025 serve as important steps in our ability to realize the opportunity in the medium-term. The overall program is anchored with our Strategy Execution Office and is overseen by our Executive Management.

We are also working on establishing production capability and capacity at our Swiss manufacturing site, to be able to produce with the new method. This is anchored in our Global Operations and our Swiss Manufacturing site, and is overseen by our Chief Operating Officer.

To monitor progress on change of certain manu-facturing methods, the Strategy Execution Office informs, on a weekly basis, members of our Exec-utive Management. Other key stakeholders are informed when key milestones are met.

Waste from our operations

Given the nature of our business and industry, we generate hazardous waste in our manufacturing and research activities, including chemicals and biolog-ical materials.

The waste generated from operations includes a variety of materials, with single-use plastics playing a significant role due to their usage in equipment, connections, hoses, and bags for media or buffer solutions. Discarded plastic items and vials may contain product residues, including viruses, which must be incinerated as biosafety waste. Our waste also comprises empty raw material packaging in plastic, glass, and cardboard. Chemical waste emerges from both laboratory and production processes, encompassing residues from analytical processes, expired materials, and substances like ethanol. Non-recyclable waste is sent to either incineration or landfill.

Total waste distribution 2025

71%

consists of captured wastewater

29%

consists of other waste

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Bavarian Nordic Annual Report 2025

Waste streams

Captured wastewater is our primary waste stream, accounting for over 70% of our overall waste by weight. While the majority of our wastewater is composed of water, it also includes organic matter, inactivated virus, media solutions and antibiotics. It is discarded and captured in a holding tank as hazardous waste which is collected by a specialized waste management service provider.

Our wastewater is combined with waste from other companies and incinerated to ensure that hazardous substances are destroyed. In 2025, the volume of captured wastewater increased by 19% compared with 2024 (1,756 tonnes in 2024 vs. 2,093 tonnes in 2025). This increase reflects both higher production volumes and a more precautionary approach to capturing liquid waste, aiming to minimize the risk of antibiotics or other potentially harmful substances being released into the environment.

Policies Our commitment to the environment is reflected in our policies designed to manage and mitigate the negative impact associated with waste generated. Each of our production and research facilities has a local policy on the handling of residual waste. These policies are implemented to ensure that the waste is properly classified, segregated, transported, recy-cled and destroyed by proper disposal methods in order to comply with local regulations and protect the environment and human health. The scope of the policies includes all employees involved in

the management of production and laboratory waste within our own operations. Heads of sites are account-able for implementation of these policies. All the policies are accessible to affected stakeholders through our Quality Management System, which is available to all employees.

Actions

In 2025, we expanded our Global EHS department. This has enabled us to allocate more resources to further our understanding and management of our waste streams and the development of initiatives aimed at increasing the rate of recycled waste from our manufacturing and research facilities. In 2026, we will begin piloting waste tracing studies to develop further insights into the flow of waste materials, processes, and treatment. The analysis will include information about companies that receive our waste and their respective treatment processes, offering transparency and traceability throughout the waste management chain. Progress toward the waste tracing studies will be monitored and reported as part of the quarterly EHS update report.

Metrics

Year-on-year developments in our waste metrics continue to be primarily influenced by our largest waste stream: captured wastewater at the Danish production site. Our non-hazardous waste also increased notably in 2025. This development was driven mainly by increased production volumes and by expansion of the Bern facility, which generated more than 110 tonnes of construction-related waste during the year.

Total amount of waste generated

E5- table 1

in tonnes

2025

2024

Type of waste

Hazardous waste

2,212

1,817

Non-hazardous waste

752

612

Radioactive waste

0

0

Total waste

2,964

2,429

Total waste diverted from disposal breakdown by the recovery operation types

E5- table 2

in tonnes

2025

2024

1) Preparation for reuse

Hazardous waste

0

0

Non-hazardous waste

7

5

2) Recycling

Hazardous waste

2

3

Non-hazardous waste

276

146

3) Other recovery operations

Hazardous waste

113

1

Non-hazardous waste

381

108

Total waste directed to disposal by waste treatment types

E5- table 3

in tonnes

2025

2024

1) Incineration without energy recovery

Hazardous waste

2,096

1,808

Non-hazardous waste

25

281

2) Landfill

Hazardous waste

0

0

Non-hazardous waste

64

72

3) Other disposal operations

Hazardous waste

1

5

Non-hazardous waste

0

0

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Bavarian Nordic Annual Report 2025

Total non-recycled waste

E5- table 4

in tonnes

2025

2024

Non-recycled waste

Amount

2,680

2,166

Percentage

90 %

89 %

Accounting policies

Waste

All waste generated across our sites is managed by local waste handling companies, who collect disposals directly from our facilities. For our manufacturing sites and for our research and development facility in Hørsholm (Denmark), we maintain direct contracts with the suppliers, allowing us to obtain precise waste data, including waste type, amounts, and treatment methods. For our research site in Martinsried, Germany, which is located in a shared commercial building, waste manage-ment and contracts with waste collectors are managed by both the landlord and ourselves. This arrangement results in certain data limitations. Consequently, for this site, we have applied estimates based on inter-views with the landlord, who confirmed the capacity of containers and the frequency of waste collection by the external service supplier. Our office facilities are excluded from the metrics as the waste generated there is considered not material for sustainability reporting purposes. Only waste generated at manufacturing sites and research facilities is considered in the disclosure. All waste subcategories are split between hazardous and non-hazardous waste, defined in accordance with the EU’s Waste Framework Directive. We have not identified any radioactive waste in our operations.

Non-recycled waste

The total amount of non-recycled waste is calculated by summing the waste sent for disposal (incineration, landfill, and other disposal operations) and the waste directed to other recovery operations, primarily incin-eration with energy recovery. The percentage rate is calculated as a total amount of non-recycled waste divided by a total amount of waste generated.

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Bavarian Nordic Annual Report 2025

EU Taxonomy

Summary KPIs

Financial year (N)

2025

Breakdown by environmental objectives of Taxonomy aligned activities

KPI (1)

Total (2)

Proportion of Taxonomy eligible activities (3)

Taxonomy aligned activities (4)

Proportion of Taxonomy aligned activities (5)

Climate Change Mitigation (6)

Climate Change Adaptation (7)

Water (8)

Circular Economy (9)

Pollution (10)

Biodiversity (11)

Proportion of enabling activities (12)

Proportion of transitional activities (13)

Not assessed activities considered non-material (14)

Taxonomy aligned activities in previous financial year (N-1)(15)

Proportion of Taxonomy aligned activities in previous financial year (N-1)(16)

DKK thousand

%

DKK thousand

%

%

%

%

%

%

%

%

%

%

DKK thousand

%

Turnover

6,243,956

96%

0

0%

0%

0%

0%

0%

0

0%

CapEx

297,933

100%

0

0%

0%

0%

0%

0%

0

0%

OpEx

773,950

21%

0

0%

0%

0%

0%

0%

0

0%

Turnover

Reported KPI

Financial year (N)

Turnover

2025

Environmental objective of Taxonomy aligned activities

Economic Activities (1)

Code(2)

Taxonomy eligible KPI (Proportion of Taxonomy eligible Turnover) (3)

Taxonomy aligned KPI (monetary value of Turnover)(4)

Taxonomy aligned KPI (Proportion of Taxonomy aligned Turnover)(5)

Climate Change Mitigation (6)

Climate Change Adaptation (7)

Water (8)

Circular Economy (9)

Pollution (10)

Biodiversity (11)

Enabling activity (12)

Transitional activity (13)

Proportion of Taxonomy aligned in Taxonomy eligible (14)

%

DKK thousand

%

%

%

%

%

%

%

(E where applicable)

(T where applicable)

%

Manufacture of medicinal products

PPC 1.2

96%

0

0%

0%

0%

Sum of alignment per objective

0%

Total KPI (Turnover)

96%

0

0%

0%

n/a

n/a

0%

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Bavarian Nordic Annual Report 2025

EU Taxonomy

CapEx

Reported KPI Financial year (N)

CapEx 2025

Environmental objective of Taxonomy aligned activities

Economic Activities (1)

Code(2)

Taxonomy eligible KPI (Proportion of Taxonomy eligible CapEx) (3)

Taxonomy aligned KPI (monetary value of CapEx) (4)

Taxonomy aligned KPI (Proportion of Taxonomy aligned CapEx) (5)

Climate Change Mitigation (6)

Climate Change Adaptation (7)

Water (8)

Circular Economy (9)

Pollution (10)

Biodiversity (11)

Enabling activity (12)

Transitional activity (13)

Proportion of Taxonomy aligned in Taxonomy eligible (14)

%

DKK thousand

%

%

%

%

%

%

%

(E where applicable)

(T where applicable)

%

Manufacture of medicinal products

PPC 1.2

100%

0

0%

0%

0%

Sum of alignment per objective

0%

Total KPI (CapEx)

100%

0

0%

0%

n/a

n/a

0%

OpEx

Reported KPI Financial year (N)

OpEx 2025

Environmental objective of Taxonomy aligned activities

Economic Activities (1)

Code(2)

Taxonomy eligible KPI (Proportion of Taxonomy eligible OpEx) (3)

Taxonomy aligned KPI (monetary value of OpEx) (4)

Taxonomy aligned KPI (Proportion of Taxonomy aligned OpEx) (5)

Climate Change Mitigation (6)

Climate Change Adaptation (7)

Water (8)

Circular Economy (9)

Pollution (10)

Biodiversity (11)

Enabling activity (12)

Transitional activity (13)

Proportion of Taxonomy aligned in Taxonomy eligible (14)

%

DKK thousand

%

%

%

%

%

%

%

(E where applicable)

(T where applicable)

%

Manufacture of medicinal products

PPC 1.2

21%

0

0%

0%

0%

Sum of alignment per objective

0%

Total KPI (OpEx)

21%

0

0%

0%

n/a

n/a

0%

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Bavarian Nordic Annual Report 2025

Time horizon

Name of IRO (Title)

Short-term

Medium-term

Long-term

Work-life balance

Potential Negative Impact

As an employer, we play a key role in shaping employees’ work-life balance, which directly influences their overall well-being, engagement, and job satisfaction. If personal needs and preferences, such as flexible scheduling or work-life bound-aries, are not adequately considered, we may create strain for some employees. Due to the nature of operations, certain roles may involve non-standard working hours, including night shifts, rotating schedules, or business travel. These working patterns can increase the risk of fatigue, affect physical and mental health, and place pressure on employees’ ability to maintain a healthy work-life balance.

●

●

●

Breach of personnel data

Potential Negative Impact

We hold sensitive personal data on its employees. A breach of this data, whether through cyberattack or internal error, could lead to significant privacy concerns such as identity theft and psychological distress for affected individuals.

●

●

●

Physical injury impact

Potential Negative Impact

Ineffective, inefficient or missing health and safety management arrangements could lead to physical injury to employees, non-employees and visitors.

●

●

●

Adverse Health Impact from Management Failures

Potential Negative Impact

Ineffective, inefficient or missing health and safety management arrangements could lead to adverse health impact to employees, non-employees and visitors.

●

●

●

Risk of Harm from Ineffective Safety Management

Risk

Inadequate or missing health and safety management systems may lead to phys-ical injuries, chronic illnesses, or psychological harm across our workforce. This could result in higher costs from sick leave, insurance premiums, legal claims, and workforce turnover, as well as reputational damage and operational disruption.

●

●

●

Time horizon

Name of IRO (Title)

Short-term

Medium-term

Long-term

Psychological Harm from Management Failures

Potential Negative Impact

Ineffective, inefficient, or absent health and safety management systems may lead to negative psychological impacts on employees.

●

●

●

10.2

12.4

11

12.1

12.2

12.3

Our global workforce

Our employees are a key group of stakeholders, playing a crucial role in driving our strategic ambitions. They are at the core of our mission of protecting lives by creating access to vaccines. As a knowledge-based company, our success relies on the expertise, skills, and dedication of our people.

Attracting and retaining top talent is essential to maintaining our competitive edge and advancing our innovative agenda. As such, our impact on employees remains a key focus for us, ensuring that we continue to foster an environment that

supports, develops, and retains the people of Bavarian Nordic.

The identified impacts and risks are disclosed thematically, divided into five overall sections, representing how we manage and interpret the respective impacts and risks:

• Our global workforce

• Enabling a resilient workforce

• Employee well-being

• Breach of personnel data

• Health & safety

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Bavarian Nordic Annual Report 2025

concerns to be raised, investigated, and addressed in a fair and confidential manner.

Employee engagement survey

Our main employee engagement initiative is our employee engagement survey. This engagement effort aims to facilitate two-way communication and collaboration, while addressing matters essen-tial to topics such as workplace culture, work-life balance, job satisfaction, strategic priorities, overall employee well-being, and transformation & change.

All employees across sites, functions, and organ-izational levels are encouraged to participate. Employees are informed about the surveys through email reminders, intranet announcements, Teams notifications, and other internal communication channels.

Feedback is collected anonymously, where aggregated results are shared in each team, and presented into actionable insights for managers and leaders, providing a holistic view of organizational health while identifying areas for targeted improve-ment at local level.

In 2025, two surveys were conducted, which we aim to implement as the standard process. The survey is conducted by our People & Organization depart-ment, where our VP of People & Organization has the overall operational responsibility for ensuring that this engagement happens.

Workers councils

The workers councils ("Betriebsrat" in Germany and "Samarbejdsudvalg" in Denmark) function as formal channels to incorporate employee perspectives into organizational decision-making. It addresses the principles governing local working condi-tions, welfare arrangements, and the overarching personnel policies in Denmark and Germany.

Serving as a structured platform for dialogue, the council brings together company-appointed repre-sentatives and employee-elected representatives to discuss significant matters. This ensures that both leadership perspectives and employee interests are reflected in key decisions affecting working condi-tions, policies, and workplace practices.

BN Asks – Open dialogue and early feedback

Our internal employee inbox, BN Asks, provides an accessible way for employees to share comments, views, or general concerns directly with the organ-ization. Available through our intranet, the channel is managed by our Corporate Communications and Executive Office department. Submissions can cover any topic, from workplace experiences to organi-zational suggestions, and are reviewed to ensure recognition.

Formal channels for raising concerns

We aim to address workplace concerns as early and directly as possible through promoting open communication across our organization.

As a first step, employees are encouraged to raise any issues including concerns, inappropriate behavior, or potential misconduct with their imme-diate manager and/or the relevant HR Business Partner from our People & Organization department. Additionally, employees have access to formal griev-ance mechanisms and escalation channels, such as our Ethics Hotline to Legal & Compliance.

These formal channels ensure that potential nega-tive impacts, such as violations of our Code of Conduct, discrimination, or other inappropriate behavior, can be reported safely and investigated appropriately.

We uphold a strict non-retaliation policy to protect employees who report concerns in good faith. Guidance on how to raise concerns and access these mechanisms are communicated through documents such as our Staff Handbooks, Code of Conduct, and Speak Up Policy (see Business conduct).

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Bavarian Nordic Annual Report 2025

● Denmark

● Germany

● Switzerland

● United States of America

● Other*

Number of employees by country

in headcounts, 2025

Number of employees by gender

in headcounts, 2025

Number of employees by gender

S1– table 1

in headcounts

2025

2024

Male

857

766

Female

979

887

Total employees

1,836

1,653

Number of employees by country

S1– table 2

in headcounts

2025

2024

Denmark

1,045

979

Germany

350

301

Switzerland

278

215

United States of America

111

123

Other*

52

35

Total employees

1,836

1,653

*Countries with less than 50 employees are reported aggregated as other.

Number of employees by employment characteristics

S1– table 3

in headcounts

2025

2024

Head count

Female

Female

Female

Male

Female

Male

Female

Male

Number of permanent employees

893

799

856

749

Number of temporary employees

86

58

31

17

Total employees

979

857

887

766

Gender distribution in Top Management

S1– table 4

in headcounts

2025

2024

Head count

Female

Female

Female

Male

Number

Share

Number

Share

Female

10

50 %

11

46%

Male

10

50 %

13

54%

Total employees

20

100 %

24

100%

Age distribution in own workforce

S1– table 5

in headcounts

2025

2024

Under 30 years old

254

228

30-50 years old

1,074

963

Over 50 years old

508

462

Total employees

1,836

1,653

Remuneration metrics

S1– table 6

2025

2024

Gender pay gap (%)*

1.3%

1.6%

CEO remuneration ratio

28

29

*The gender pay gap reflects a pay gap in favor of males

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Bavarian Nordic Annual Report 2025

Total number of severe human rights impacts

S1– table 7

in numbers

2025

2024

Severe human rights incidents

0

0

Fines, penalties and compensation for damages resulting from severe human rights incidents (in DKK)

0

0

Rate and number of employees leaving the company

S1– table 8

in headcounts

2025

2024

Rate of employee turnover

13.5%

17.4%

Number of employees who left the company

221

255

Total number of incidents and complaints

S1– table 9

in numbers

2025

2024

Head count

Incidents of discrimination, including harassment

6

0

Complaints filed through channels for people to raise concerns, other than incidents of discrimination, including harassment

0

0

Fines, penalties, and compensation for damages resulting from discrimination (in DKK)

0

0

Accounting policies

Number of employees breakdown by gender and country

Employees refer to individuals working part-time or full-time under a contractual agreement with Bavarian Nordic. This definition encompasses employees under local terms and conditions of employment, such as enti-tlements, payment of social security contributions, and other applicable obligations. The number of employees (head counts) by gender and country are recognized based on records from the HR system at the end of the reporting period. Please refer to the note 8 staff costs in the consolidated financial statements for the most representative number in the financial statement.

Number of employees by employment character-istics

The number of employees is disaggregated by employ-ment classification, including permanent, temporary, and non-guaranteed hours employees, and is reported in number of headcounts. Permanent employees refers to employees employed on an indefinite contract, either full-time or part-time, subject to local terms and conditions of employment. Temporary employees refer to employees hired for a specific duration, either full-time or part-time, to fulfill short-term needs such as apprenticeships, backfilling, or covering parental leave. Temporary contracts end at a predefined date or upon project completion.

Gender diversity at top management level

Top Management is defined as positions at the Vice President level and above. Gender distribution is shown as headcounts and share distributed between male and female. The gender breakdown of employees at the Top Management level is based on records from the HR system at the end of the reporting period.

Age distribution

The age breakdown of employees is based on records from the HR system at the end of the reporting period.

Gender pay gap

Gender pay gap is defined as the difference of average pay levels between female and male employees, expressed as percentage of the average pay level of male employees. The metric is calculated based on total annual remuneration which includes both fixed and variable components.

CEO remuneration ratio

The CEO remuneration ratio reflects the annual ratio between the total remuneration of the CEO (the highest paid individual) and the average remuneration of all employees (measured in FTEs) within the company, excluding executive management. The calculation of the ratio is consistent with the calculation of CEO pay ratio disclosed in our Remuneration Report.

Severe human rights incidents

The metrics represent the number of severe human rights cases reported to the Ethics Hotline or to our Legal & Compliance team in the reporting period.

Turnover rate

The employee turnover rate, expressed as a percentage, reflects the proportion of employees who left the organization within a calendar year either voluntarily or due to dismissal, retirement or death in service. The turnover rate is determined by dividing the number of employees (measured by headcount) who left during the reporting period by the average number of employees (headcount) for the same period and multiplying it by one hundred.

Incidents and complaintsThe metrics represent the number of discrimination incidents and complaints cases reported to the Ethics Hotline or to our Legal & Compliance team in the reporting period.

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Bavarian Nordic Annual Report 2025

by ensuring that assessments are balanced, fair, and aligned with organizational needs. It also helps to minimize bias and subjectivity in evaluations, promoting fairness and equal treatment across all employee groups.

Assessing people’s performance and potential is inherently sensitive, which is why we place great emphasis on ensuring objectivity. The People Review Process is structured around dedicated People Review Meetings, where each employ-ee’s performance is first assessed by their direct manager and then discussed collectively with other

leaders. This two-step approach helps reduce uncon-scious bias by enabling cross-team feedback and peer input. Leaders provide insights on employees from other teams and receive feedback on their own team members.

We include succession planning as part of our People Review Process to mitigate the risk of business-critical roles being left without a qualified successor. Through this process, we identify key positions across the organization and assess poten-tial successors to support business continuity and organizational resilience. As part of our structured

approach, we evaluate where successors are in place, where development actions are needed to strengthen readiness, and where there are gaps or leaver risks that require targeted mitigation.

Succession planning enables us to agree on concrete actions to develop and retain selected talents. Our aim is to minimize productivity loss when key employees leave, to promote that critical roles are filled by qualified and motivated individuals, and to build the leadership and professional capabilities needed to meet both current and future organiza-tional requirements.

Actions

We believe that a resilient and capable workforce is built through continuous development and ongoing improvement. Our approach is therefore to main-tain strong, scalable processes while gradually enhancing them to support evolving business and workforce needs.

Accordingly, our actions comprise a combination of recurring, ongoing initiatives and targeted actions planned specifically for 2025, ensuring both conti-nuity in our core practices and focused improve-ments where gaps or new needs are identified.

Action 1

Recruitment

In 2025, we strengthened our global recruit-ment framework through a series of inter-connected initiatives designed to ensure a consistent, compliant, and efficient recruit-ment experience.

Action 2

Skills & knowledge

In 2025, we enhanced global onboarding and training platforms to build critical skills, ensure compliance, and strengthen project execution across the organization.

Action 3

Career paths & opportunities

In 2025, we launched a career accelerator pilot to develop employees, strengthen internal expertise, and support long-term capability building.

Action 4

Developing our people

In 2025, we strengthened people and lead-ership development through structured performance dialogues and the roll-out of our LeadPioneers program, supporting continuous growth and future-ready capabilities.

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B avarian Nordic Annual Report 2025

We continuously monitor our performance in relation to talent attraction and retention, including training and skills development for our employees. This is done through various processes, including tracking turnover rates, employee engagement surveys, performance and development talks, lead-ership development program, one-on-one dialogue with managers, and exit-interviews.

Recruitment

To support resilience in our internal processes, we have taken a strategic approach to strengthen recruitment capabilities across all business units. During Q4 2024 and 2025, we implemented a series of interconnected initiatives designed to create a consistent, compliant, and efficient recruitment framework globally.

We introduced a global recruitment process that standardizes key steps such as requisition approval, advertising, screening, interviewing, and offer management. This process clarifies roles and responsibilities through our new Talent Acquisi-tion (TA) Operating Model, ensuring accountability between HR, TA, and hiring managers.

Supporting our ambition to align recruitment efforts globally, we deployed a new Applicant Tracking System (ATS) in Q4 2024, providing an end-to-end digital recruitment platform that enhances compli-ance and data accuracy. The ATS enables stream-lined workflows, improved analytics, and better

data security, while supporting data-driven deci-sion-making and monitoring of hiring KPIs.

Additionally, we implemented a recruitment module in our HR system, integrating recruitment activities into our centralized system for greater efficiency and transparency.

Resources for these actions include human, finan-cial, and technological investments, and effective-ness is monitored through monthly KPI reviews, such as time-to-hire and quality-of-hire, and feed-back loops from business units. These actions were identified through a Talent Acquisition review and feedback from business units.

Skills & knowledge

Onboarding

In 2025, we updated our internal global onboarding site to enhance on-demand availability of onboarding material, aiming to create an environ-ment of self-paced learning and information search. Our People & Organization department oversees global coordination, while line managers ensure completion of role-specific onboarding locally.

Participation and completion are tracked through our learning systems. Our onboarding approach aligns with our general policy objectives of aiming to mitigate the risk of delayed productivity, disen-gagement, or early turnover, while ensuring every employee has a foundational training and under-standing of our business and quality culture.

Following the nature of our business model, indus-try-specific onboarding is required. Training in handling fundamental GxP and non-GxP documents, as well as Global Pharmacovigilance training is mandatory for all employees, including tempo-rary staff, contractors, and consultants hired on similar terms performing work on-site or within our systems. Training is offered for all new employees and must be completed within the onboarding period. Periodic refreshers and additional sessions are assigned when regulations, roles, or procedures change. Only qualified trainers deliver GxP courses, and effectiveness is verified through testing or practical assessment (see Responsible marketing practices).

We complement our global onboarding with local and department-specific initiatives such as our Boot-camp and FastTrack program, targeted operators and supporters in our production. These programs are structured training programs designed to provide new operators and supporters in our production with the competencies required for their role, and necessary to meet local regulatory requirements and operational standards. The program is hosted multiple times a year depending on hiring waves and production demands.

Internal courses

We offer general training opportunities, on-de-mand self-learning tools, and courses that promote professional growth and continuous learning. These

are available to all employees and are promoted through our intranet.

In 2024, we launched a company-wide Project Management Training Program and Project Manage-ment toolbox to strengthen project execution capabil-ities across Bavarian Nordic. During 2025, we hosted two foundational project management courses and one advanced project management course. Led by our Strategy Execution Office, the program builds practical skills in planning, stakeholder management, and cross-functional collaboration.

Industry specific training

Our Global Training & Development department is dedicated to standardizing training administration based on best practices, as well as tailoring training support that drives performance and increases compliance.

In 2025, our Global Training & Development plat-form was updated, with the aim of gathering our global training standards and resources, to opti-mize training across the organization, and promote everyday training. The training content includes both GxP and non-GxP areas within Bavarian Nordic and is aimed at supporting functions within our Global Operations department. All training is managed and documented in our electronic Learning Management System.

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Bavarian Nordic Annual Report 2025

Career paths & opportunities

We are committed to developing our people and ensuring that existing talent can continue to grow within the organization while contributing their expertise where it matters most. Guided by our general policies, we have implemented glob-ally aligned initiatives that create transparency, strengthen career development, and promotes the professional growth opportunities provided.

Career accelerator pilot

In 2025, we launched a Career Accelerator Pilot to nurture internal talent and strengthen the capabili-ties shaping our future. The program is designed to accelerate the growth of high-potential employees and build an internal pipeline of subject-matter experts for critical functions, aiming to reduce our reliance on external recruitment while deepening organizational knowledge.

The pilot was introduced in our Global Operations department and our Quality Assurance department, currently engaging five participants. Each partic-ipant follows a structured development journey

combining targeted learning, mentoring, and hands-on project experience.

Oversight lies with our Head of Global Training and Development, who monitors progress through regular feedback, progress tracking, and capability assessments. A mid-term evaluation was carried out in November and included feedback from partici-pants, their line managers, and mentors. Based on these insights, the continuation of the pilot has been approved through Q2 2027. The potential rollout of additional cohorts will be assessed during 2026.

Developing our people

We believe that people development is viewed as an ongoing process, not a one-time event. As our company grows and evolves, so must our employees.

People development

To support the long-term development of our employees, we facilitate a structured Performance Dialogue process that promotes that all employees have regular, two-way conversations with their manager about performance, development needs, and career aspirations. This process enables us to identify and provide relevant training and develop-ment opportunities based on each employee’s role, ambitions, and feedback.

Performance Dialogues are held at least twice a year, with additional follow-ups as needed. Each discussion provides an opportunity for reviewing progress, iden-tifying skill gaps, and agreeing on development activi-

ties that support both individual growth and business priorities. Employees are, in collaboration with their manager, recommended to discuss and agree on a Personal Development Plan, and to document it in our personnel data management system, to support accountability and promote development opportunity. The process is owned by our People & Organization department, who train and support managers to facil-itate constructive dialogues with employees.

By embedding the Performance Dialogue processes in our broader talent and performance management framework, we take a proactive approach to compe-tence building, career development, and long-term employee retention, ensuring that learning and growth remain central to a sustainable and future-ready workforce.

Career accelerator pilot program

The program remains in a pilot phase and represents one way of addressing work-force-related development needs while strengthening internal capability and long-term talent retention.

Leadership Development

Strong leadership is essential for our success. Leaders at Bavarian Nordic are expected to shape culture, drive results, as well as supporting growth and well-being in their teams. Leadership development is embedded in our people devel-opment approach, ensuring that current leaders are equipped to lead with integrity and impact in alignment with our general policies.

In 2025, we strengthened our focus on leadership capabilities by rolling out our leadership devel-opment initiative, LeadPioneers. The program, built on our Leadership Commitments, combines targeted training modules, peer learning, and cross-functional collaboration to enhance strategic leadership, team performance, and personal effectiveness.

To support ongoing growth, leaders have access to a suite of leadership tools and resources, including frameworks for goal setting, coaching, employee engagement, and performance management. Owned by our People & Organi-zation department, our dedicated Leadership & Training Partner holds the operational responsi-bility for the program.

My role as

a leader

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Bavarian Nordic Annual Report 2025

Harassment in the workplace

A workplace free from harassment is fundamental to achieving our strategic goals and sustaining long-term value. Harassment undermines trust, collaboration, and productivity, which are critical drivers of innovation and success. Our business is powered by engaged and motivated employees working across geographies and functions, where a culture of mutual respect is key to employee well-being. Therefore, our goal is to promote a respectful and inclusive culture where we aim to protect the dignity and rights of every employee.

Policies

We are committed to maintaining a workplace where everyone is treated with respect and dignity, and where harassment, bullying, and discrimination are never tolerated. To support this commitment, we have implemented global policies that clearly define expected behavior and reinforce our zero-tol-erance stance toward harassment in any form.

Our Diversity & Inclusion Policy sets the direction for an inclusive culture that values different back-grounds, perspectives, and experiences. It outlines our commitment to equal opportunity and fair treatment across all aspects of employment.

Our Global Policy on Sexual Harassment provides clear definitions of inappropriate behavior and establishes expectations for professional conduct across all sites and regions.

Our Policy on Bullying and Harassment at Work makes it clear that any form of bullying, harass-ment, or victimization is unacceptable and subject to disciplinary action.

These policies are embedded in our Code of Conduct, reflecting our commitment to responsible business conduct and employee well-being. They are reflected in all local staff handbooks, ensuring consistent implementation and accessibility across our global organization. Our Speak Up Policy is in place to guide both internal and external stake-holders on how to report misconduct and other concerns (see Business conduct).

Processes for engagement & channels to raise concerns

We maintain an open dialogue with employees to understand their experiences of workplace culture and respect. Insights from our employee engagement surveys, work-environment assess-ments, engagement with HR Business Partners, and employee representatives help us strengthen psychological safety and identify areas for improve-ment.

If specific challenges in teams are identified, we provide targeted workshops to address cultural, behavioral, or situational issues within teams. These sessions provide practical tools for conflict resolution, respectful communication, and reinforce leadership responsibility in sustaining a safe and inclusive workplace.

Employees are formally encouraged to speak up through multiple channels outlined in our policies, such as direct conversations with the immediate manager, HR Business Partners, union or Betriebsrat representatives, Health & Safety representatives, or through anonymous reporting using our Ethics Hotline.

Feedback from engagement activities and reporting mechanisms is reviewed and monitored by our Global EHS department, our People & Organization department, our Legal & Compliance department, and management teams to identify trends and strengthen prevention. These insights drive contin-uous improvements to our policies, leadership practices, and awareness initiatives. Through these efforts, we sustain a workplace culture built on trust, dignity, and respect, where every employee can feel both safe and valued.

Actions

Our mental health initiatives are key factors in preventing harassment. Through these, we build awareness and positive interaction, fostering a culture where all employees feel valued and supported (See Mental health in Bavarian Nordic).

We also take direct action to prevent and address harassment. All employees complete mandatory Code of Conduct training, which includes modules on harassment prevention, how to recognize inappropriate conduct, and how to report concerns. This training is regularly reinforced to maintain

awareness and accountability across all sites and functions.

Work-life balance

Operating in the vaccine sector means navi-gating a dynamic environment shaped by shifting market demands and urgent responses to disease outbreaks. These external pressures may require periodic rapid adjustments to production schedules or extended working hours across departments. If not managed effectively, such conditions may impact employees’ work-life balance, causing fatigue, stress, and reduced well-being.

We recognize that a healthy work-life balance is vital for employee well-being, motivation, and operational effectiveness. All employees may face periods of non-standard hours, with production and commercial roles facing the greatest exposure to non-standard hours or frequent travel. Therefore, workload management and flexibility remain priori-ties for all employees.

Policies

Our approach is based on global and local policies that provide a framework for employee well-being. These include our Office Areas Working Environ-ment options and guidelines, covering both phys-ical and mental health, our Remote Working Policy and our staff handbook guidelines, which set clear expectations for flexibility, time management, and rest.

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Bavarian Nordic Annual Report 2025

regulation when processing personal data, including applicable national data privacy law as well as the General Data Protection Regulation (GDPR) and the Danish Data Protection Act. The Policy defines the roles and responsibilities for data handling, mandates the use of secure IT systems, and requires that sensitive information is managed according to formal security protocols. The Policy applies to all our employees, including temporary workers, consultants, and all processing activities carried out by any legal entity within Bavarian Nordic.

Processes for engagement & channels to raise concerns

We actively involve employee groups in identifying training needs and providing input on which topics require additional focus. This engagement supports the alignment of training content and resources with the real challenges employees face in their daily work with personal data.

We have formal processes for handling personnel data breaches, ensuring both immediate and ongoing responses in line with regulatory require-ments and best practice. If a data breach is suspected or detected, employees are required to act immediately by reporting the incident via the dedicated data breach reporting form on our intranet or directly to our Legal & Compliance department. Detailed guidelines and training are provided to all staff, outlining how to recognize, report, and respond to potential breaches, and emphasizing that swift action is essential regardless of the perceived severity or origin of the incident.

Employees are informed of their rights and the types of data collected through communication efforts including our formal document, Privacy Notice to BN Employees. We conduct an annual data privacy awareness campaign communicated through our intranet. The campaign provides

employees with targeted information and updates on data privacy. The purpose of the campaign is to strengthen employee awareness of the structures and processes in place for raising concerns, as well as their roles and obligations in safeguarding personal information.

Actions

IT security training

We require all employees to complete monthly IT security training, which includes dedicated modules on phishing awareness and secure data handling. This training is designed to support employees in recognizing and responding to potential threats, understanding their responsibilities under our data protection policies, and maintaining vigilance in their daily work. The training is updated annually to reflect emerging risks and regulatory changes, and is improved based on lessons learned from inci-dents, audits, and regulatory development.

Training in handling personal data

As we are responsible for processing personal data in accordance with relevant privacy laws, we require all employees to complete our data privacy training. The training provides guidance on what constitutes and how to recognize a personal data breach, and the immediate steps to take if a breach is suspected or detected. Furthermore, the training provides knowledge on data privacy laws, our internal policies and procedures, and covers both internal and third-party (data processor) breaches. New employees are offered training within the first

three months of employment through the global onboarding program. For employees with elevated data handling responsibilities, we provide addi-tional and specialized training. These modules offer instruction on secure data handling in compliance with both internal policies and external regulations. The training is updated annually to reflect evolving risks and best practices.

Centralized HR system

Our HR system functions as a core organizational measure to maintain controlled and compliant storage, processing, and access to personal data. As an integral part of our data protection actions, the system provides role-based access controls that limit data visibility to authorized personnel only, advanced security features, and audit trails that record data access and modifications. The system is embedded into our people and compliance workflows, enabling standardized and automated processes for onboarding, data updates and offboarding, thereby reducing manual handling and the likelihood of human error. The system is continuously updated to address emerging cyber-security threats and evolving regulatory require-ments, and its performance is reviewed annually as part of our organizational data protection assessment.

Monitoring progress

Our Legal & Compliance department is respon-sible for assessing and managing reported breaches. This includes determining whether notification to supervisory authorities and affected individuals is required.

To support continuous improvement and organizational learning, we systematically monitor and review data breaches. We report

on data breaches, including an assessment of their severity, and review these incidents to identify trends, root causes, and opportunities for strengthening our controls. In addition to scheduled reviews, breaches are also monitored and addressed on an ad-hoc basis throughout the year, ensuring that urgent issues receive immediate attention and that our remediation processes remain agile and effective.

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Bavarian Nordic Annual Report 2025

risks, and opportunities - for both on-site and off-site workers. As such, the scope of the following disclosure includes only people in our value chain who perform services that are subject to the iden-tified material potential health and safety impacts. We have not identified any significant risks of child labor or forced labor among the stakeholders in our value chain.

The disclosures related to policies are presented at an aggregate level, followed by disclosures on processes, actions, and targets, which are presented alongside each impact.

General policies and processes

Workers in our value chain are covered under several company-wide policies that define expec-tations for health, safety, labor rights, and ethical conduct.

Our Global Environmental, Health & Safety (EHS) Policy applies to all operations, including work carried out by both on-premise and off-premise workers. It sets requirements for risk assessment, hazard control, compliance with legislation, and continuous improvement. The policy also estab-lishes expectations for reporting, training, and inci-

dent learning applicable to all individuals working within our operational footprint.

Our Standards for Responsible Business Conduct outline our expectations to all external collabora-tions regarding human rights, labor rights, health and safety performance, environmental responsi-bility, animal welfare and business ethics. The policy applies globally across the upstream and down-stream value chain and is based on international principles and guidelines. Executive Management is accountable for the implementation of the policy, which is available on our website.

Our Code of Conduct applies to employees, contrac-tors, suppliers, and their workers. It mandates ethical conduct, adherence to the law, transparent communication, and responsible behavior, and encourages reporting of concerns, unsafe practices, or violations through formal grievance mechanisms (see Business conduct).

Our Human Rights Policy explicitly prohibits forced labor, child labor, discrimination, and unsafe working conditions, and requires suppliers to uphold freedom of association, fair treatment, and decent working conditions (see Own workforce).

See Business conduct for information about our Ethics Hotline. To date, no reported cases of adverse human rights impacts involving value-chain workers have been received.

Material impacts, risks, and opportunities

Health & safety of on-premise workers in the value chain

We make use of external companies and individuals who carry out various services at our manufacturing sites, some of whom may be exposed to processes that could result in a negative impact on their phys-ical health. This impact applies to potential indi-vidual incidents of on-premise workers in the value chain who perform services at our sites.

These types of services are related to our business relationships, as the workers performing these do not fall into the categories defined in Own work-force (see Own workforce). As the impact potentially

occurs in our site operations, it is a direct impact, which can potentially involve a reputational risk for us, however there are no identified material risks associated with this impact.

Processes for remediation

We have established processes to address and remediate negative impacts affecting on-premise value-chain workers. These processes align with those for employees, including incident reporting, root cause analysis, implementation of corrective actions, and tracking through site-level and global systems. Monthly EHS meetings ensure continued oversight.

Engaging with on-premise value chain workers

On-premise value chain workers are primarily engaged through mandatory induction programs. Induction covers hazard awareness, site rules, required behaviors, Personal Protective Equip-ment expectations, emergency procedures, and access restrictions.

All visitors and external workers must sign documentation confirming their understanding.Depending on access level, some external

workers must be escorted or supervised by Bavarian Nordic employees. Site Heads ensure engagement, supported by monthly EHS coordi-nation meetings that address incidents, lessons learned, and contractor safety performance.

Workers with particular vulnerabilities are assessed on an individual basis and provided with tailored protective measures where neces-sary.

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Actions

Actions taken and planned to minimize the likeli-hood of negative impacts include implementation of the Global EHS Strategy, expansion of the EHS department, and updating the EHS Policy to cover on-premise workers (see Own workforce). Further-more, we have strengthened contractor and visitor induction processes at our Danish manufacturing site by revising our visitor induction presentation and making it available in a video format, enabling visitors to view it before arrival at our site. Progress is moni-tored jointly by Site Heads and the EHS department.

The health and safety target disclosed for our own workforce also applies to on-premise value chain workers (see Own workforce).

Health and safety of off-premise workers in the value chain

Suppliers and partners in our value chain manage and handle chemicals, which can potentially have a direct impact on the health and safety of workers in the value chain.

As an inherent part of our business model, we engage in business relationships with suppliers from whom we source raw materials and CMOs whose workers perform services such as vaccines research and manufacturing. As such, this impact is connected with our business model, as we have dependencies on the workers in the value chain working for suppliers and business partners.

This impact applies to potential individual incidents of off-premise workers in the value chain. It is an indirect impact as it originates from our business relationships with suppliers and partners. Though it can potentially involve a reputational risk for us, there are no identi-fied material risks associated with this impact.

Engaging with off-premise value chain workers

Engagement with off-premise workers occurs primarily through our involvement in the Phar-maceutical Supply Chain Initiative (PSCI). Through monthly and ad hoc meetings, we receive insights into working conditions, health and safety risks, labor practices, and industry benchmarks across pharmaceutical supply chains. The Director, Corpo-rate Sustainability, holds responsibility for PSCI engagement, supported by EHS, Procurement, and Corporate Sustainability.

The Global EHS Director leads operational engage-ment with suppliers and CMOs, while Procurement and External Manufacturing maintain day-to-day

supplier interactions. Insights from PSCI engagement are evaluated regularly and integrated into supplier management processes.

As the PSCI is an organization solely focusing on pharmaceutical supply chains, the insights provided by them are deemed to take into consideration the perspectives of workers that may be particularly vulnerable to impacts.

Processes for remediation

We are advancing our Responsible Value Chain Program to better capture, track, and mitigate health and safety impacts across the supply chain. This includes risk-based supplier screenings, targeted engagements, and structured monitoring of supplier performance. Also see Business Conduct for informa-tion about our Ethics Hotline.

Actions

Our completed and planned key actions related to the potential negative impact are described below.

Furthering the development of our supplier management program continues to be a strategic priority and a part of our Responsible Value Chain Program. The purpose of the program is to further develop our supplier management and engage-ment processes to enable an understanding of our adverse impacts and how to address these in collaboration with suppliers.

As a part of our commitment to the PSCI and its Principles for Responsible Supply Chain Manage-ment, we have initiated work to increase the coverage of supplier audits. This action is anchored with our Responsible Value Chain Program.

Our Global Environmental, Health & Safety (EHS) Policy addresses health and safety impacts related to our own workforce as well as on- and off-premise workers (see Own workforce).

Our actions are tracked and assessed monthly by the key stakeholders involved in driving forward the strategic initiative to ensure that the intended outcomes are met.

Further developing our supplier management program

Building on the introductory steps made in 2024, we initiated the roll-out in 2025 with the imple-mentation of our global Standards for Respon-sible Business Conduct (SRBC). Following this milestone, we launched a pilot program with a

selection of suppliers. The aim is to engage with key suppliers on their management of the areas covered in the SRBC, as well as to embed the SRBC contractually within existing agreements.

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Targets

To track the effectiveness of our actions related to our Responsible Value Chain Program, we have set a target to increase the share of scoped suppliers that have undergone an audit in accordance with the PSCI audit standards or similar. Our long-term target is for 70% of all in-scope suppliers and business partners to have undergone an audit in accordance with PSCI audit principles. The long-term target is due in 2027 with annual milestone targets.

The target setting process involved internal subject matter experts and the target was approved by Executive Management. The monitoring of progress is performed by the

Corporate Sustainability and ESG Finance departments.

In 2025, we did not meet our target of 25%, but we still recognize the effort and achieve-ment of 24.2% which serves as an important milestone in expanding our scope of in-scope suppliers and business partners on the journey of further advancing our Responsible Value Chain Program.

Vendor audit rate

S2– table 1

in percentage

Period

Target

Actual

Head count

Male

2024

12.5%

12.6%

2025, YE

25%

24.2%

2026, YE

40%

2027, YE

70%

Accounting policies

Vendor audit rate

Suppliers and business partners in scope refer to Contract Manufacturing Organizations (CMOs) or other manufacturing organizations or suppliers providing crit-ical production raw materials for commercial products.

The metric indicates the proportion of scoped suppliers that have been audited in compliance with PSCI audit

standards or equivalent. This proportion reflects the ratio of our total expenditures on audited vendors to all scoped vendor-related expenditures in the reporting period. No individual vendor exceeded 10 percentage points of the metric.

97%

of the 2025 target was achieved, correspon- ding to a 24.2% audited supplier share, just below the 25% ambition for PSCI-aligned audit standards or similar.

Achieved

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Time horizon

Name of IRO (Title)

Short-term

Medium-term

Long-term

Access barriers

Risk

Distributing vaccines to a global market, we may face situations where access barriers can prevent or slow our ability to deliver vaccines to persons in need. Such barriers may be linked to local regulatory processes, lack of cold-chain transpor-tation, affordability, etc., and could impact our ability to do business, and deliver vaccines, to certain markets.

●

●

●

Potential adverse effects on patients enrolled in clinical trials

Potential Negative Impact

During clinical trials, participants' health could be adversely affected from unex-pected adverse reactions / events to a vaccine candidate in any stage of clinical trials.

●

●

●

Adverse events due to vaccines administration (marketed vaccines)

Potential Negative Impact

Adverse events due to vaccine administration can happen and could negatively impact patient health.

●

●

●

Potential adverse effects on patients enrolled in clinical trials

Risk

During clinical trials, adverse events linked to the drug substance represents signif-icant risk as it could stop or pause the development of a vaccine candidate.

●

Adverse events as a result of vaccine administration

Risk

Adverse events as a result of vaccine administration can occur, and if not handled properly, could result in lawsuits and/or regulatory enforcement.

●

●

●

Potential to breach responsible marketing standards

Risk

For companies in the pharmaceutical industry, there are strict rules and regulations in place regarding the marketing to customers. These regulations vary across countries; however, violating these regulations or industry codes could lead to misinformation of health care workers, legal & financial penalties, fines, and damage to a company's reputation.

●

Interaction with strategy and business model

In 2025, our continued commitment to saving and improving lives, through the power of the immune system, has further strengthened our impact on global health. Expanding access to vaccines across geographies remains central to our business strategy, supported by responsible stakeholder engagement and the delivery of safe, and effica-cious vaccines.

The material impacts, risks, and opportunities (IROs)related to consumers and end-users are disclosed on an aggregate level, divided into three overall sections:

• Access to vaccines

• Safety

• Responsible marketing practices

Within each of these sections, we have disclosed applicable policies, procedures, actions, and targets.

All three areas are central to our business model and strategy from research, development, manu-facturing, distribution, and sales, and are as such anchored in a combination of our own operations and in our upstream and downstream value chain.

Affected stakeholders

In our double materiality assessment (DMA), we have IROs related to three groups of consumers and end-users, namely vaccine recipients, clinical trial participants, and healthcare professionals (HCPs). These stakeholder groups are dependent on accurate and accessible information relating to our marketed products and clinical trials. All actual and/or potentially affected end-users are included in the scope of these disclosures, which is detailed in each section. The risks and opportunities described arise from dependencies on all three groups of potentially affected stakeholders.

Human rights

Our policies reflect our commitment to human rights throughout our organization and supply chain, as defined by the United Nations Guiding Principles on Business and Human Rights (UNGPs), International Labor Organization’s (ILO) Declaration on Fundamental Principles

and Rights at Work, principles of the UN Global Compact, and the Universal Declaration of Human Rights (UDHR) (see Own workforce).

In 2025, there are no cases of non-respect of human rights in our downstream value chain.

16

14.6

15.1

15.2

15.3

15.4

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Action 1

Mpox: Working with partners to reach populations in low- and lower-middle-income countries

To strengthen the response in the African region, we collaborate with global health partners, including World Health Organization (WHO), European Commission’s Health Emergency and Response Authority (HERA), United Nations Children's Fund (UNICEF), Gavi, The Vaccine Alliance, Africa Centers for Disease Control and Prevention (Africa CDC), US Government and other partners to provide our mpox vaccine, which served as an important tool to help control the mpox outbreaks since 2022.

Since 2024, Africa is experiencing one of the largest known mpox outbreaks to date, with the majority of cases occurring in the Democratic Republic of Congo (the DRC). Although the World Health Organization (WHO) lifted the Public Health Emergency of Inter-national Concern (PHEIC) in September 2025, Africa

CDC kept the status of Public Health Emergency of Continental Security (PHECS) for the remainder of 2025 and lifted this in January 2026.

As of 2025, mpox vaccination activities have started in 14 African countries with our vaccine, targeting population groups at high risk of exposure. With the continued collaboration of the key global health partners and coordination by the WHO’s Access and Allocation Mechanism (AAM), in total more than 1.2 million vaccine doses have been administered in these 14 countries in 2025, out of which 687,016 doses of our vaccine have been administered in the Democratic Republic of the Congo.

12 African countries have received up to 700,000 doses of our vaccine through the Advanced Procure-ment Agreement (APA) with Gavi, the Vaccine Alliance and an agreement with UNICEF, both docu-ments signed in September 2024.

Through these contracts, we have worked together with all aforementioned parties to ensure vaccine access with the lowest price for the 77 low- and lower-middle-income countries.

With the joint efforts of HERA and EU member states, US Government and the Government of Canada, over 900,000 doses of our vaccine have been delivered to African countries, fulfilling the short-term requirement as expressed by Africa CDC and allowing an immediate response in the affected countries.

Donations

As part of our partnership with African CDC and UNICEF, Bavarian Nordic has donated a total of 130,000 doses of our mpox vaccine to help strengthen outbreak response. Of these, 110,000

doses were donated to Uganda through Africa CDC, and 20,000 doses were donated to UNICEF and deliv-ered to Liberia.

WHO Prequalification

In September 2024, our vaccine became the first mpox vaccine to receive prequalification from WHO, a prerequisite for governments and organizations like Gavi and UNICEF to procure and distribute vaccines in African countries.

Action 2

Access to vaccines strategy in low-income (LIC) and lower-middle-income countries (LMIC)

During 2025, we took steps to further formalize our access and approach to access to relevant vaccines in our portfolio in LICs and LMICs. While our work in 2024 defined the overall strategy approach, timelines, and governance structures, we progressed in 2025 with settling specific KPIs for our access to vaccines strategy. The strategy focuses on vaccines which have the highest impact on unmet medical needs, where our business model is well suited to manufacture and distribute vaccines. The overall strategy is anchored with Executive Management and runs to 2028. Actions related to our Access to vaccines strategy are managed cross-function-ally and led by the Commercial department.

Action 3

Increasing access to vaccines with life cycle management

As a means of increasing access to our existing portfolio of vaccines, we manage their life cycle. Our Product Strategy Team is working with key senior decision makers in our Life Cycle Management (LCM) Steering Committee to explore opportunities in the area. LCM spans across various aspects of the product, and the LCM Steering Committee works to review, prioritize and bring forward recommendations for new LCM projects to increase product value and support public health.

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Policies

Our Quality Management System (QMS) is designed to ensure compliance with applicable legislation, safety requirements, and all Good Practice (GxP) standards across our trials, manufacturing. and testing. It aligns with regulatory expectations and industry best practices to maintain the highest quality standards. The procedures governing our QMS are accessible to all employees and mandatory training is required to ensure full understanding and adherence. The Senior Vice President of Global Quality oversees the implementation of the QMS, ensuring quality objectives are met, roles and responsibilities are clearly defined, and sufficient resources and authority are in place across the organization.

Code of Conduct

Our Code of Conduct acknowledges our respon-sibility to ensure patient safety. We develop and supply innovative, high-quality products, and we require all employees to comply with all relevant

laws and regulations governing product quality and safety as well as all requirements for reporting adverse events and product quality complaints. If our employees become aware of an adverse event or other potential safety issue, they are instructed to report it to the company’s pharmacovigilance team.

Engaging with consumers and end-users

Our pharmacovigilance system supports the ongoing collection, assessment, and notification of relevant safety data. Procedures are in place for reporting adverse events, reactions, and/or product quality complaints, and our employees are trained in the proper handling of information, should they become aware of an adverse event, reactions, or other potential safety issue related to our products. The Chief Medical Officer position, interim basis held by our CEO, represents the most senior role within Bavarian Nordic with operational responsibility.

Following regulatory requirements and industry standard practices, all clinical trials are reviewed

and approved by independent review boards (IRB), independent bioethics committee (IBC), or an independent ethics committee (IEC) tasked with protecting the human rights of the individuals involved in clinical trials and ensure that our clinical trials are ethical, follow applicable regular stand-ards, and appropriately protect the rights, safety and well-being of clinical trial participants.

In compliance with associated regulations and ethical standards, we require that all clinical trial participants be provided an opportunity for informed consent, including risks associated with participation, and that their informed consent is documented. Our processes require that both adverse safety events and deviations from the approved protocol be documented, investigated, assessed, and reported to the IRB and regulatory authorities, as appropriate.

We use a Corrective and Preventive Action (CAPA) system to assign and resolve corrective actions to remedy identified issues and to help prevent future similar problems. In collaboration with regulatory authorities, relevant safety information from clinical trials and post-marketing adverse events reports are included in our product labels to inform HCPs and the general public about both the risks and the benefits of our products.

Processes for remediation

Efforts to remediate negative impacts for partic-ipants in clinical trials are handled internally or

through the Contract Research Organization (CRO), to whom we transfer obligations but maintain oversight and assessment through the standard operating procedure for selection and manage-ment of vendors for services in the Development department. In case of an adverse event happening in connection with a clinical trial, the clinical trial participant is advised by the responsible HCP.

Participants in clinical trials can contact the respec-tive investigators or the CRO. All communications via this channel are addressed through channels established by the investigators, the CRO and in agreement with us, and all such engagements are treated in accordance with data privacy laws. Vaccine recipients of marketed products experi-encing adverse effects can report concerns via a public email channel established by Bavarian Nordic, which is managed through established procedures and complies with data privacy laws.

Both affected stakeholders can report incidents without the risk of retaliation as per Bavarian Nordic's Code of Conduct (see Business conduct). The effectiveness and perceived trustworthiness of both channels are evaluated through mandated regulatory quality and compliance processes.

Actions & targets

When needed, we update our framework of quality and safety policies and procedures to align with changes made by national health regulations. Internal and external audits are also undertaken

Policies, procedures, and guidelines

Our commitment to end-user safety is supported through our framework of quality and safety policies and procedures (GxP) which include, as applicable:

Good Clinical Laboratory Practice (GCLP)

Good Manufacturing Practice (GMP)

Good Distribution Practice (GDP)

Good Pharmacovigilance Practice (GVP)

We follow the regulatory guidelines from the International Council for Harmonization (ICH), which provide guidelines on safety, quality, and efficacy topics, the Declaration of Helsinki, Good Clinical Practice (GCP).

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Interaction with strategy and business model

As a means of conducting business ethically and with integrity, we are dependent on maintaining a healthy corporate culture by actively mitigating the risk of corruption and bribery. Our policies and procedures establish the minimum requirements for how we does business and always in compliance with applicable laws.

As part of conducting business responsibly, we have an obligation to maintain high standards of animal welfare across our research, development, and quality control activities. The use of animals in our studies is a regulatory requirement, necessary to provide safety and efficacy of our vaccines. All work involving animals is conducted under legal frame-works, ensuring full compliance with national and international legislations.

Additionally, our commitment to animal welfare is embedded throughout our clinical study processes, ensuring that all animals under our care are treated with professionalism, following requirements set by relevant regulatory authorities, taking into account recommendations from animal welfare organiza-tions. All testing procedures, including both preclin-ical studies and quality control testing, undergo internal and external review to confirm that they are justified and scientifically necessary.

The role of the administrative, management and supervisory bodies

The administrative, management, and supervisory bodies at Bavarian Nordic play a crucial role in providing oversight and management of business conduct matters. The Board and the Finance, Risk & Audit Committee (FRAC) oversee the Global Business Ethics Compliance Program, ensuring that business conduct aligns with our ethical standards and regulatory requirements. Our Chief Compliance Officer, who reports directly to our Chief Executive Officer and independently to FRAC, is responsible for implementing the compliance program and heads the Legal & Compliance Function.

Our Executive Management oversees day-to-day operations and is responsible for the implemen-tation of our business conduct policies. Our Exec-utive Management is responsible for embedding ethical practices into our operational processes and ensuring compliance with regulatory standards.

The expertise of these bodies in business conduct matters is extensive. Members of our Executive Management and the Board bring significant experience in governance, compliance, and ethical business practices.

Reporting of violations

Reported violations of the Code of Conduct and applicable laws and regulations are handled according to the Speak-Up Policy. The Ethics Hotline enables confidential and anonymous reporting of suspected viola-tions of the Code of Conduct and applicable laws and regulations. Claims reported to the Ethics Hotline are subject to an initial assur-ance review by outside counsel and Legal & Compliance which has an independent reporting line to the Board through FRAC.

Reports are managed by external counsel or qualified lawyers in Legal & Compliance, data is stored in a secure and restricted system, and quarterly reporting is anonymized to secure the integrity of the process and to protect whistleblowers and those cooperating with investigators.

During the reporting period there have been no reported incidents of corruption or bribery, no confirmed incidents, no convictions or fines, and no actions taken as a result.

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and monitoring of critical systems such as ventila-tion, lighting, and environmental controls.

We also maintain a comprehensive set of supporting policies covering facility management, condi-tions, and testing procedures to ensure consistent ethical, regulatory, and quality standards across all activities. All policies are published in our Quality Management System for required review by employees working with animals. Responsibility for internal animal welfare policies rests with the Vice President of Research and the Head of Global Quality Control, ensuring accountability at all levels.

Code of Conduct

The section for animal welfare in our Code of Conduct reflects our commitment to ethical stand-ards in the care and use of animals in studies.

It outlines key practices, including adherence to the 3R principle and compliance with all relevant regulations. It also highlights the responsibilities of employees involved in animal work, covering training requirements, professional competence, and ongoing evaluation to ensure proper care and handling. For external partners, including contract research organizations and laboratories, it empha-sizes expectations for animal welfare, with regular audits and assessments to confirm compliance with these standards.

Through these efforts, we continue to advance the highest standards of animal welfare while fulfilling our regulatory responsibilities and supporting the implementation of validated non-animal testing methods where possible.

Enhanced standards for responsible animal welfare practices

In 2025, we developed an Animal Welfare Policy that provides a comprehensive and structured approach to the ethical use of laboratory animals, emphasizing adherence to the 3R principle (Reduce, Refine, Replace). The policy specifies requirements for breeding, housing,

handling, monitoring, and documentation, ensuring that all practices comply with appli-cable legislation and internal requirements. By establishing these standards, the policy ensures that all employees are equipped to safeguard the health of the animals under their care.

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Disclosure requirement

Page

E2 - Pollution

IRO-1

Identification and assessment of material topics

55

E2-1

Policies

68

E2-2

Actions

68-69

E2-3

Targets

69

E2-5

Substances of concern and substances of very high concern

69

E4 - Biodiversity and ecosystems

E4-1

Transition plan

72

SBM-3

Interaction with strategy and business model

71-72

IRO-1

Identification and assessment of material topics

55

E4-2

Policies

72

E4-3

Actions

72

E4-4

Targets

72

E5 – Resource use and circular economy

IRO-1

Identification and assessment of material topics

55

E5-1

Policies

74-75

E5-2

Actions

74-75

E5-3

Targets

74-75

E5-5

Resource outflows

74-76

S1 – Own workforce

SBM-2

Interests and views of stakeholders

49

SBM-3

Interaction with strategy and business model

81, 83, 88, 93-94, 96

S1-1

Policies

84, 88, 93-94, 96

S1-2

Processes for engagement

84, 88, 93-96

S1-3

Remediation and channels to raise concerns

84, 88, 93-96

S1-4

Actions

89-95, 97

S1-5

Targets

93-95, 97

S1-6

Characteristics of employees

86

Disclosure requirement

Page

S1-9

Diversity metrics

86

S1-14

Health and safety metrics

97

S1-16

Remuneration metrics

86

S1-17

Incidents, complaints and severe human rights impacts

87

S2 – Workers in the value chain

SBM-2

Interests and views of stakeholders

49

SBM-3

Interaction with strategy and business model

98-100

S2-1

Policies

99

S2-2

Processes for engagement

99-100

S2-3

Remediation and channels to raise concerns

99-100

S2-4

Actions

100

S2-5

Targets

100-101

S4 – Consumers and end-users

SBM-2

Interests and views of stakeholders

49

SBM-3

Interaction with strategy and business model

102-104, 106, 108

S4-1

Policies

103, 107-108

S4-2

Processes for engagement

104, 107-108

S4-3

Remediation and channels to raise concerns

104, 107-108

S4-4

Actions

104, 107-108

S4-5

Targets

106-108

G1 – Business conduct

GOV-1

Governance roles

111

IRO-1

Identification and assessment of material topics

55

G1-1

Policies and corporate culture

112

G1-3

Prevention and detection of corruption and bribery

112

G1-4

Incidents of corruption or bribery

111

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Bavarian Nordic Annual Report 2025

Disclosure requirement and related datapoint

Data point

SFDR

reference

Pillar 3 reference

Benchmark Regulation reference

EU Climate Law reference

Page number

ESRS

E3-4

Total water recycled and reused

28 (c)

●

Not material

ESRS

E3-4

Total water consumption in m3per net revenue on own operations

29

●

Not material

ESRS2

IRO-1 E4

List of material sites in its own operations, including sites under operational control

16 (a) i

●

Not material

ESRS2

IRO-1 E4

Identification of material negative impacts with regards to land degradation, desertification or soil sealing

16 (b)

●

Not material

ESRS2

IRO-1 E4

Operations that affect threatened species

16 (c)

●

71-72

ESRS

E4-2

Sustainable land / agriculture practices or policies

24 (b)

●

Not material

ESRS

E4-2

Sustainable oceans / seas practices or policies

24 (c)

●

Not material

ESRS

E4-2

Policies to address deforestation

24 (d)

●

Not material

ESRS

E5-5

Non-recycled waste

37 (d)

●

76

ESRS

E5-5

Hazardous waste and radioactive waste

39

●

75

ESRS2

SBM-3 S1

Risk of incidents of forced labour

14 (f)

●

84

ESRS2

SBM-3 S1

Risk of incidents of child labour

14 (g)

●

84

ESRS

S1-1

Human rights policy commitments

20

●

84

ESRS

S1-1

Due diligence policies on issues addressed by the fundamental International Labor Organisation Conventions

1 to 8

21

●

84

ESRS

S1-1

Processes and measures for preventing trafficking in human beings

22

●

84

ESRS

S1-1

Workplace accident prevention policy or management system

23

●

96

ESRS

S1-3

Grievance/complaints handling mechanisms

32 (c)

●

84-85, 93-96

ESRS

S1-14

Number of fatalities and number and rate of work-related accidents

88 (b), 88 (c)

●

●

97

ESRS

S1-14

Number of days lost to injuries, accidents, fatalities or illness

88 (e)

●

Phase-in

ESRS

S1-16

Unadjusted gender pay gap

97 (a)

●

●

86

ESRS

S1-16

Excessive CEO pay ratio

97 (b)

●

86

ESRS

S1-17

Incidents of discrimination

103 (a)

●

87

ESRS

S1-17

Non-respect of UNGPs on Business and Human Rights and OECD

104 (a)

●

●

84

ESRS2

SBM-3 S2

Significant risk of child labour or orced labour in the value chain

11 (b)

●

99

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Bavarian Nordic Annual Report 2025

Disclosure requirement and related datapoint

Data point

SFDR

reference

Pillar 3 reference

Benchmark Regulation reference

EU Climate Law reference

Page number

ESRS

S2-1

Human rights policy commitments

17

●

99

ESRS

S2-1

Policies related to value chain workers

18

●

99

ESRS

S2-1

Non-respect of UNGPs on Business and Human Rights principles and OECD guidelines

19

●

●

99

ESRS

S2-1

Due diligence policies on issues addressed by the fundamental International Labor Organisation Conventions 1 to 8

19

●

99

ESRS

S2-4

Human rights issues and incidents connected to its upstream and downstream value chain

36

●

99

ESRS

S3-1

Human rights policy commitments

16

●

Not material

ESRS

S3-1

Non-respect of UNGPs on Business and Human Rights, ILO principles or and OECD guidelines

17

●

●

Not material

ESRS

S3-4

Human rights issues and incidents

36

●

Not material

ESRS

S4-1

Policies related to consumers and end-users

16

●

103

ESRS

S4-1

Non-respect of UNGPs on Business and Human Rights and OECD guidelines

17

●

●

103

ESRS

S4-4

Human rights issues and incidents

35

●

103

ESRS

G1-1

United Nations Convention against Corruption

10 (b)

●

Not material

ESRS

G1-1

Protection of whistle-blowers paragraph

10 (d)

●

Not material

ESRS

G1-4

Fines for violation of anti-corruption and anti-bribery laws

24 (a)

●

●

111

ESRS

G1-4

Standards of anti- corruption and anti- bribery

24 (b)

●

111

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Bavarian Nordic Annual Report 2025

carbon footprint and develop strategies for reducing emissions.

GO

Guarantee of Originis an energy certificate that verifies that a specific amount of electricity was produced from renewable sources.

GxP**

GxP is a general abbreviation for the Good "x" Prac-tice which are quality guidelines and regulations which apply to the pharmaceutical sector (amongst other sectors). The "x" stands for the various fields for example Good Clinical Practice (GCP), Good Manufacturing Practice (GMP), etc.

HCPs**

Healthcare Professionalsare individuals who provide medical care, treatment, and health-related services to patients.

IUCN Red List

The International Union for Conservation of Nature Red Listis the global indicator on the conservation status of species, assessing their risk of extinction from Least Concern to Extinct. A species classified as Vulnerable faces a high risk of extinction in the wild due to factors like habitat loss, climate change, pollution, or overexploitation, indicating a signifi-

cant population decline that requires conservation efforts to prevent further deterioration.

MSL**

Medical Science Liaisonis a scientific expert who acts as a bridge between pharmaceutical or biotech companies and healthcare professionals.

NACE code

Nomenclature of Economic Activitiesis a European industry classification system used to categorize businesses based on their economic activities. It is used for statistical, regulatory, and administrative purposes within the EU.

PPA*

Power Purchase Agreement is a long-term contract between an energy producer and a buyer. It defines the terms for purchasing electricity.

PSCI**

Pharmaceutical Supply Chain Initiativeis a non-profit industry organization focused on promoting responsible supply chain management in the pharmaceutical and healthcare industries.

SBT*

Science-Based Targetis a specific, measurable emissions reduction target set by a company to

align with climate science and the goals of the Paris Agreement.

SBTi

Science Based Targets initiativeis an independent organization that provides guidance, validation, and certification for companies setting Science-Based Targets to ensure they meet credible climate science criteria.

SLL*

Sustainability-Linked Loanis a type of loan where the interest rate and terms are tied to the borrow-er's sustainability performance.

SSP

Shared Socioeconomic Pathways are scenarios used in climate research to describe possible future global developments based on different economic, social, and environmental trends.

UN Global Compact or UNGC *

The UN Global Compactis a United Nationsinitia-tive that encourages businesses worldwide to adopt sustainable and socially responsible practices. It is based on ten principles covering human rights, labor, environment, and anti-corruption, helping companies align their strategies with global sustain-ability goals. It also supports the UN Sustainable

Development Goals (SDGs), which are 17 global objectives designed to address climate change, poverty, inequality, and environmental protection by 2030.

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Bavarian Nordic Annual Report 2025

Consolidated income statement

For the years ended December 31, 2025 and 2024

DKK thousand

Note

2025

2024

Revenue

3

6,243,956

5,716,206

Production costs

4,8,9

3,195,343

2,897,448

Gross profit

3,048,613

2,818,758

Sales and distribution costs

5,8

716,546

500,336

Research and development costs

6,8,9

780,303

862,510

Administrative costs

7,8,9,10

558,053

516,142

Total operating costs

2,054,902

1,878,988

Other operating income

1,032,896

-

Other operating expenses

222,808

-

Other operating income, net

810,088

-

Income before interest and tax (EBIT)

1,803,799

939,770

Financial income

11

51,043

150,065

Financial expenses

12

53,887

118,478

Income before company tax

1,800,955

971,357

Tax on income for the year

13

425,577

(16,620)

Net result for the year

1,375,378

987,977

Earnings per share (EPS) - DKK

Basic earnings per share of DKK 10

14

17.6

12.6

Diluted earnings per share of DKK 10

14

17.6

12.6

Consolidated statement of comprehensive income

For the years ended December 31, 2025 and 2024

DKK thousand

Note

2025

2024

Net result for the year

1,375,378

987,977

Other comprehensive income

Remeasurements of defined benefit plans

26

36,105

(17,390)

Income tax

13

(6,191)

4,171

Items that will not be reclassified to the income statement

29,914

(13,219)

Amounts reclassified from cash flow hedge reserve to financial items

29,203

(45,887)

Effective portion of financial instruments change in fair value entered into to hedge future cash flows

10,260

(29,203)

Exchange rate adjustments on translating foreign operations

5,893

(8,927)

Income tax

13

(2,124)

-

Items that will be reclassified to the income statement

43,232

(84,017)

Other comprehensive income after tax

73,146

(97,236)

Total comprehensive income for the year

1,448,524

890,741

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Bavarian Nordic Annual Report 2025

Consolidated statement of cash flow

For the years ended December 31, 2025 and 2024

DKK thousand

Note

2025

2024

Net result for the year

1,375,378

987,977

Adjustment for non-cash items:

Financial income

11

(51,043)

(150,065)

Financial expenses

12

53,887

118,478

Tax on income for the year

425,577

(16,620)

Depreciation, amortization and impairment

9

738,126

663,375

Share-based payment

29

84,486

78,672

Changes in inventories

(186,610)

(683,573)

Changes in receivables

104,679

617,864

Changes in provisions

(707)

19,636

Changes in current liabilities

220,156

222,987

Cash flow from operations (operating activities)

2,763,929

1,858,731

Received financial income

86,392

141,146

Paid financial expenses

(16,695)

(32,188)

Paid company taxes

(111,723)

(17,857)

Cash flow from operating activities

2,721,903

1,949,832

DKK thousand

Note

2025

2024

Investments in product rights

15,24

(1,105,244)

(1,586,633)

Investments in other intangible assets

15

(48,763)

(18,343)

Investments in property, plant and equipment

16

(205,288)

(82,661)

Change in financial assets

(51,174)

(29,766)

Investments in securities

(1,796,300)

(1,448,447)

Disposal of securities

721,902

1,294,987

Cash flow from investment activities

(2,484,867)

(1,870,863)

Payment on loans

25

(2,090)

(1,921)

Repayment of lease liabilities

25

(40,813)

(41,639)

Proceeds from warrant programs exercised

78,666

126,794

Purchase of treasury shares

(150,121)

(27,459)

Cash flow from financing activities

(114,358)

55,775

Cash flow of the year

122,678

134,744

Cash and cash equivalents as of January 1

1,623,490

1,477,234

Currency adjustments

(31,670)

11,512

Cash and cash equivalents as of December 31

1,714,498

1,623,490

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Bavarian Nordic Annual Report 2025

Consolidated statement of financial position – Assets

December 31, 2025 and 2024

DKK thousand

Note

2025

2024

Non-current assets

Product rights

5,570,541

4,660,426

Acquired rights and development in progress

-

1,286,782

Developed production processes

306,133

343,619

Software

24,211

21,371

Intangible assets in progress

58,765

18,694

Intangible assets

15

5,959,650

6,330,892

6,330,892

Land and buildings

906,043

939,006

Leasehold improvements

12,850

18,316

Plant and machinery

348,678

417,210

Fixtures and fittings, other plant and equipment

570,330

626,376

Assets under construction

232,837

159,660

Property, plant and equipment

16

2,070,738

2,160,568

Right-of-use assets

17

98,423

81,899

Other receivables

20

15,150

9,086

Prepayments

21

73,268

36,421

Financial assets

88,418

45,507

Total non-current assets

8,217,229

8,618,866

DKK thousand

Note

2025

2024

Current assets

Inventories

18

2,513,919

2,327,309

Trade receivables

19

780,298

1,175,744

Tax receivables

13,901

928

Other receivables

20

61,436

43,665

Prepayments

21

34,252

64,324

Receivables

889,887

1,284,661

Securities

23

1,619,004

551,538

Cash and cash equivalents

1,714,498

1,623,490

Securities, cash and cash equivalents

3,333,502

2,175,028

Total current assets

6,737,308

5,786,998

Total assets

14,954,537

14,405,864

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Bavarian Nordic Annual Report 2025

Consolidated statement of financial position – Equity and liabilities

December 31, 2025 and 2024

DKK thousand

Note

2025

2024

Equity

Share capital

792,367

788,548

Treasury shares

(9,669)

(2,843)

Retained earnings

11,817,397

10,434,197

Other reserves

269,983

188,659

Equity

12,870,078

11,408,561

Liabilities

Debt to credit institutions

25

10,890

13,053

Retirement benefit obligations

26

82,966

113,589

Deferred tax liabilities

13

318,617

-

Lease liabilities

27

74,462

73,653

Non-current liabilities

486,935

200,295

DKK thousand

Note

2025

2024

Deferred consideration

24

-

1,081,465

Debt to credit institutions

25

2,147

2,074

Lease liabilities

27

43,371

39,470

Prepayment from customers

28

9,949

131,408

Trade payables

967,744

1,045,134

Company tax

11,078

-

Other liabilities

22

563,235

497,457

Current liabilities

1,597,524

2,797,008

Total liabilities

2,084,459

2,997,303

Total equity and liabilities

14,954,537

14,405,864

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Bavarian Nordic Annual Report 2025

Consolidated statement of changes in equity

December 31, 2025

DKK thousand

Share capital

Treasury shares

Retained earnings

Reserves for currency adjustment

Reserves for cash flow hedge

Share-based payment

Equity

Equity as of January 1, 2025

788,548

(2,843)

10,434,197

2,005

(29,203)

215,857

11,408,561

Comprehensive income for the year

Net result for the year

-

-

1,375,378

-

-

-

1,375,378

Other comprehensive income

-

-

29,914

5,893

37,339

-

73,146

Total comprehensive income for the year

-

-

1,405,292

5,893

37,339

-

1,448,524

Transactions with owners

Share-based payment

-

-

-

-

-

84,486

84,486

Warrant programs exercised

3,819

-

90,604

-

-

(15,757)

78,666

Warrant programs expired

-

-

18,263

-

-

(18,263)

-

Costs related to issue of new shares

-

-

(38)

-

-

-

(38)

Purchase of treasury shares

-

(7,603)

(142,518)

-

-

-

(150,121)

Transfer regarding restricted stock units

-

777

11,597

-

-

(12,374)

-

Total transactions with owners

3,819

(6,826)

(22,092)

-

-

38,092

12,993

Equity as of December 31, 2025

792,367

(9,669)

11,817,397

7,898

8,136

253,949

12,870,078

The share capital comprises a total of 79,236,728 shares of DKK 10 as of December 31, 2025 (78,854,857 shares). The shares are not divided into share classes, and each share carries one vote.

Treasury shares

In January 2025, the Board of Directors decided to launch a share buy-back program, under which the Company bought back 760,275 of its own shares (162,288 shares in 2024). The purpose of the share buy-back program was to adjust the capital structure and to meet the Company's obligations arising from the share-based incentive program for the Executive Management and the Board of Directors.

Treasury shares represent 1.22% (0.36%) of the total share capital.

For further information about share based payment see note 29.

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Bavarian Nordic Annual Report 2025

Consolidated statement of changes in equity

December 31, 2024

DKK thousand

Share capital

Treasury shares

Retained earnings

Reserves for currency adjustment

Reserves for cash flow hedge

Share-based payment

Equity

Equity as of January 1, 2024

780,978

(1,537)

9,330,002

10,932

45,887

173,670

10,339,932

Comprehensive income for the year

Net result for the year

-

-

987,977

-

-

-

987,977

Other comprehensive income

-

-

(13,219)

(8,927)

(75,090)

-

(97,236)

Total comprehensive income for the year

-

-

974,758

(8,927)

(75,090)

-

890,741

Transactions with owners

Share-based payment

-

-

-

-

-

78,665

78,665

Warrant programs exercised

7,570

-

147,806

-

-

(28,582)

126,794

Warrant programs expired

-

-

474

-

-

(474)

-

Costs related to issue of new shares

-

-

(112)

-

-

-

(112)

Purchase of treasury shares

-

(1,623)

(25,836)

-

-

-

(27,459)

Transfer regarding restricted stock units

-

317

7,105

-

-

(7,422)

-

Total transactions with owners

7,570

(1,306)

129,437

-

-

42,187

177,888

Equity as of December 31, 2024

788,548

(2,843)

10,434,197

2,005

(29,203)

215,857

11,408,561

Transactions on the share capital

DKK thousand

2025

2024

2023

2022

2021

Share capital as of January 1

788,548

780,978

707,354

704,684

584,501

Issue of new shares

3,819

7,570

73,624

2,670

120,183

Share capital as of December 31

792,367

788,548

780,978

707,354

704,684

The share capital comprises a total of 78,854,857 shares of DKK 10 as of December 31, 2024 (78,097,834 shares). The shares are not divided into share classes, and each share carries one vote.

Rules on changing Articles of Association

Changing the Articles of Association requires that the resolution passes by at least 2/3 of the votes as well as 2/3 of the voting capital represented.

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Bavarian Nordic Annual Report 2025

Note 1

Material accounting policies

Basis of preparation

The consolidated financial statements for Bavarian Nordic have been prepared in accordance with the IFRS Accounting Standards class D as adopted by the EU and Danish disclosure requirements for the consolidated financial statements of listed companies. Danish disclo-sure requirements for the presentation of consolidated financial statements are imposed by the Statutory Order on Adoption of the IFRS Accounting Standards issued under the Danish Financial Statements Act.

The accounting policies are unchanged from last year except for changes due to implementation of new and revised standards that were effective January 1, 2025.

The consolidated financial statements are presented in Danish kroner (DKK), which is the functional currency of the Parent Company.

The consolidated financial statements are presented on a historical cost basis, apart from derivative financial instruments and securities, which are measured at fair value.

The accounting policies have been consistently applied for the financial year and for the comparative figures except for implementation of new standards and amendments, see further below.

In the narrative sections of the consolidated financial statements comparative figures for 2024 are shown in brackets.

Implementation of new and revised standards and interpretations

Management has assessed the impact of new or amended and revised accounting standards and inter-pretations issued by the IASB and the IFRS Accounting Standards endorsed by the European Union effective on or after January 1, 2025. It is assessed that application of amendments effective from January 1, 2025 has not had a material impact on the consolidated financial statements for 2025. Furthermore, Management does not anticipate any significant impact on future periods from the adoption of these amendments.

Standards and interpretations not yet in forceAt the date of publication of the consolidated financial statements, a number of new and amended standards and interpretations have not yet entered into force or have not yet been adopted by the EU. Therefore, they are not incorporated in the consolidated financial state-ments. None of the new or amended standards and interpretations are expected to have a material impact on the consolidated financial statements.

None of the new or amended standards and interpre-tations are expected to have a material impact on the consolidated financial statements.

The Group is still in the process of assessing the impact of the new IFRS 18 accounting standard, particularly with respect to the structure of the Group’s income statement, the statement of cash flows and the addi-tional disclosures required for MPMs. The Group is also assessing the impact on how information is grouped in

the financial statements, including for items currently labelled as ‘other’.

Applying materiality

The consolidated financial statements are a result of processing large numbers of transactions and aggre-gating those transactions into classes according to their nature or function. The transactions are presented in classes of similar items in the consolidated financial statements. 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.

The specific disclosures required by the IFRS Accounting Standards are provided in the Consolidated Financial Statements unless the information is considered imma-terial to the users of the financial statements.

Accounting policies

The accounting policies for specific line items are described in the notes to the financial statements. Set out below is a description of the accounting policies for the basis of consolidation, foreign currency translation and the cash flow statement.

Recognition and measurement

Income is recognized in the income statement when generated. Assets and liabilities are recognized in the balance sheet when it is probable that any future economic benefit will flow to or from the Group and the value can be reliably measured. On initial recogni-tion, assets and liabilities are measured at cost, except for financials instruments which are measured at fair

value. Subsequently, assets and liabilities are measured as described in the description of the accounting poli-cies in the respective notes to the financial statements.

Basis of consolidation

The consolidated financial statements include Bavarian Nordic A/S and the subsidiaries in which the Group holds more than 50% of the voting rights or otherwise has control.

Principles of consolidation

The consolidated financial statements are prepared on the basis of the financial statements of the Parent Company and the individual subsidiaries, and these are prepared in accordance with the Group’s accounting policies and for the same accounting period.

Intra-group income and expenses together with all intra-group profits, receivables and payables are eliminated on consolidation. In the preparation of the consolidated financial statements, the book value of shares in subsidiaries held by the Parent Company is set off against the equity of the subsidiaries.

Foreign currency translation

On initial recognition, transactions denominated in currencies other than the Group’s functional currency are translated at the exchange rate ruling at the trans-action date.

Receivables, payables and other monetary items denominated in foreign currencies that have not been

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Bavarian Nordic Annual Report 2025

Notes

Note 1

Material accounting policies (continued)

settled at the balance sheet date are translated at the exchange rates at the balance sheet date.

Exchange differences between the exchange rate at the date of the transaction and the exchange rate at the date of payment or the balance sheet date, respec-tively, are recognized in the income statement under financials. Property, plant and equipment and intan-gible assets, inventories and other nonmonetary assets acquired in foreign currency and measured based on historical cost are translated at the exchange rates at the transaction date.

On recognition in the consolidated financial state-ments of subsidiaries whose financial statements are presented in a functional currency other than Danish kroner (DKK), the income statements are translated at the average exchange rates of the respective months.

Balance sheet items are translated at the exchange rates at the balance sheet date. Exchange differences arising on the translation of foreign subsidiaries’ opening balance sheet items to the exchange rates at the balance sheet date and on the translation of the income statements from average exchange rates of the respective months to exchange rates at the balance sheet date are recognized as other comprehensive income.

Segment reporting

The Group does not prepare segment reporting inter-nally and therefore only reports one operating segment externally.

Geographic spilt of revenue and revenue from major customers is disclosed in note 3 to the consolidated financial statements. Geographic location of non-cur-rent assets is disclosed in note 15 and 16 to the consoli-dated financial statements.

Cash flow statement

The cash flow statement is prepared in accordance with the indirect method on the basis of the Group’s net result for the year. The statement shows the Group’s cash flows broken down into operating, investing and financing activities, cash and cash equivalents at year end and the impact of the calculated cash flows on the Group’s cash and cash equivalents.

Cash flows in foreign currencies are translated into Danish kroner (DKK) at the exchange rate on the trans-action date.

In the cash flows from operating activities, net profit for the year is adjusted for non-cash operating items and changes in working capital.

Cash flows from investing activities include cash flows from the purchase and sale of intangible assets, prop-erty, plant and equipment, investments and securities.

Cash flows from financing activities include cash flows from the raising and payment of loans and capital increases.

Additionally, cash flows from assets held under finance leases are recognized by way of lease payments made.

Reporting under the ESEF Regulation

The Commission Delegated Regulation (EU) 2019/815 on the European Single Electronic Format (ESEF Regulation) requires the use of a particular electronic reporting format for annual reports of listed companies in the EU. More specifically, the ESEF Regulation requires the annual report to be prepared in XHTML format with iXBRL tagging of the consolidated financial statements including notes.

The Company’s iXBRL tagging has been made using the ESEF taxonomy disclosed in the annexes

to the ESEF Regulation and developed based on the IFRS Accounting Standards taxonomy published by the IFRS Foundation.

The line items in the consolidated financial statements are XBRL-tagged to the elements of the ESEF taxonomy that are considered to match the content of those line items. For line items not considered to be covered by line items defined in the taxonomy, entity-specific extensions to the taxonomy have been incorporated. Except for subtotals, these extensions are anchored to standard elements of the ESEF taxonomy.

Consistently with the requirements of the ESEF Regu-lation, the annual report approved by Management is comprised of a ZIP file bava-2025-12-31-en.zip, which includes an XHTML file that may be opened using standard web browsers, and a number of technical XBRL files enabling mechanical retrieval of the XBRL data incorporated.

Net asset value per share:

Equity

Number of shares at year-end

Share price/Net asset value per share:

Market price per share

Net asset value per share

Equity share, %:

Equity x 100

Total assets

Earnings per share and diluted earnings per share are calculated in accordance with IAS 33 “Earnings per share” and specified in note 14.

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Bavarian Nordic Annual Report 2025

Note 2

Key accounting estimates and judgments

Key accounting estimates

In the preparation of the consolidated financial state-ments, Management makes a number of accounting estimates and judgments, which form the basis for the presentation, recognition and measurement of the Group's assets and liabilities.

The recognition and measurement of assets and liabil-ities often depend on future events that are somewhat uncertain. In that connection, it is necessary to assume a course of events that reflects Management’s assess-ment of the most probable course of events. The key accounting estimates and judgments identified are those that have a significant risk of resulting in a material adjustment to the measurement of assets and liabilities in the following reporting period. Manage-ment bases its estimates and judgments on historical experience and various other assumptions that are held to be reasonable under the circumstances. The underlying assumptions are reviewed on an ongoing

basis. If necessary, changes are recognized in the period in which the estimate and judgment are revised. Management considers the key accounting estimates and judgments to be reasonable and appropriate based on currently available information. The actual amounts may differ as more detailed information becomes available.

Management has assessed the qualitative and quan-titative impact of climate-related matters, geopolitical risks including US tariffs and reference pricing, and other uncertainties. It is Management’s assessment that, based on the current facts, these uncertainties do not significantly impact estimates and assumptionsManagement has made the following accounting estimates and judgments which significantly affect the amounts recognized in the consolidated financial statements:

Accounting policy

Key accounting estimates and judgments

Note

Revenue

Estimate of US sales deductions and provisions for sales rebates

3

Intangible assets

Estimate regarding impairment of assets; judgment whether future sales and development milestones have become probable; judgment whether develop-ment costs should be expensed or capitalized

15

Inventories

Estimate of indirect production costs capitalized and inventory write-down

18

Note 3

Revenue

Accounting policies

Sale of goods

Revenue from sale of goods is recognized when Bavarian Nordic has transferred control of products sold to the buyer and it is probable that Bavarian Nordic will collect the consideration to which it is entitled for transferring the products. Control of the products is transferred at a point in time, typically on delivery. The amount of sales to be recognized is based on the consideration Bavarian Nordic expects to receive in exchange for its goods. When sales are recognized, Bavarian Nordic also records estimates for a variety of sales deductions, including product returns as well as rebates and discounts to government agencies, wholesalers, health insurance companies, managed healthcare organizations and retail customers. These sales deductions are recognized as "Gross to net deduc-tion" under other liabilities. Revenue is measured net of value added tax, duties, etc. collected on behalf of a third party.

Where contracts contain customer acceptance criteria, Bavarian Nordic recognizes sales when the acceptance criteria are satisfied.

The pricing mechanisms in the US market and the different kind of rebates are described below.

Pricing mechanisms in the US market

In the US, sales rebates are paid in connection with government and commercial programs. Key customers in the US include private payers, Group Purchasing Organizations (GPOs) and government payers. GPOs play a role in negotiating price concessions with drug

manufacturers for the commercial channels, and deter-mine which drugs are offered as preferred options on their drug lists.

US Medicaid & Medicare rebates

Medicaid & Medicare are government insurance programs. Medicaid and Medicare rebates have been estimated using a combination of historical experience, product and population growth, price increases, and the impact of contracting strategies. The calculation also involves interpretation of relevant regulations that are subject to changes in interpretative guidance from government authorities. Bavarian Nordic adjusts the provision periodically to reflect actual sales perfor-mance.

Wholesaler charge-backs

Wholesaler charge-backs relate to contractual arrange-ments between Bavarian Nordic and indirect customers whereby products are sold at contract prices lower than the list price originally charged to wholesalers. A wholesaler charge-back represents the difference between the invoice price to the wholesaler and the indirect customer’s contract price. Accruals are calcu-lated for estimated charge-backs using a combination of factors such as historical experience, current whole-saler inventory levels, contract terms and the value of claims received but not yet processed.

Other discounts and sales returns

Other discounts are provided to wholesalers, hospi-tals, pharmacies, etc. They are usually linked to sales volume or provided as cash discounts. Accruals are

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Bavarian Nordic Annual Report 2025

Note 3

Revenue (continued)

Accounting policies (continued)

calculated based on historical data and recorded as a reduction in gross sales at the time the related sales are recorded. Sales returns are related to damaged or expired products.

Sale of services and licenses

Furthermore, revenue comprises the fair value of the consideration received or receivable for income derived from development services where revenue is measured at the expected net sales price.

Sales of licenses that transfer the rights associated with ownership of intellectual property are recognized at a point in time when control is transferred. Revenue from development services and licenses that do not transfer the right of ownership to intellectual property are recognized over time in line with the execution and delivery of the work.

Agreements with commercial partners generally include non-refundable upfront license and collabora-tion fees, milestone payments, the receipt of which is

dependent upon the achievement of certain clinical, regulatory or commercial milestones, as well as royal-ties on product sales of licensed products, if and when such product sales occur, and revenue from the supply of products. For these agreements that include multiple elements, total contract consideration is attributed to separately identifiable components on a reliable basis that reasonably reflects the selling prices that might be expected to be achieved in stand-alone transactions provided that each component has value to the partner on a stand-alone basis. The allocated consideration is recognized as revenue in accordance with the principles described above.

Key accounting estimates

Provisions for sales deductions

Sales discounts and rebates are predominantly issued in the US in connection with the US Federal and State Government Healthcare programs, namely Medicare and Medicaid, and commercial rebates.

The estimate of sales discounts and rebates is based on a calculation which includes a combination of historical utilization data, combined with expectations in relation to the development in sales and utilization. Further-more, specific circumstances regarding the different programs are considered. The obligations concerning sales discounts and rebates are incurred at the time the sale is recorded. However, the actual discount or rebate related to a specific sale may be invoiced later.

Bavarian Nordic considers the provisions established for sales discounts and rebates to be reasonable and appropriate based on currently available information. However, the actual amount of discounts and rebates may differ from the amounts estimated as more detailed information becomes available.

Partner contracts

Whether a component of a multiple element contract has value to the partner on a stand-alone basis is based on an assessment of specific facts and circumstances and is associated with judgement. This applies also to the assessment of whether a license transfers rights associated with ownership of an intangible asset. Furthermore, allocation of the total consideration of a contract to separately identifiable components requires considerable estimates and judgement to be made by Management. At inception and throughout the life of a contract Management is performing an analysis of the agreement with its partners based on available facts and circumstances at each assessment date such as historical experience and knowledge from the market to the extent obtainable. This includes also an understanding of the purpose of the deliverables under the contract and the negotiation taken place prior to concluding the contract.

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Bavarian Nordic Annual Report 2025

Note 3

Revenue (continued)

DKK thousand

2025

2024

Travel health

Rabipur/RabAvert

1,816,707

1,352,461

Encepur

598,071

497,130

Vivotif

198,361

179,212

Vaxchora

37,880

64,153

Vimkunya

84,565

-

Other product sale

227,883

193,629

2,963,467

2,286,585

Public preparedness

Mpox/smallpox vaccine sale

3,104,974

3,206,186

Sale of goods

6,068,441

5,492,771

Contract work

175,515

223,435

Sale of services

175,515

223,435

Revenue

6,243,956

5,716,206

Total revenue includes:

Fair value adjustment concerning financial instruments entered into to hedge revenue

72,931

5,486

Other product sale consists of the following:

• Sale of Dukoral and Ixiaro licensed from Valneva

• Sale of Heplisav licensed from Dynavax

DKK thousand

2025

2024

Geographic split of revenue:

USA

2,697,034

2,702,900

Germany

1,159,979

972,759

France

723,946

268,766

Canada

223,461

493,208

England

213,589

98,639

Finland

182,509

98,467

Singapore

137,977

124,649

Switzerland

108,325

52,591

Australia

80,309

17,102

Saudi Arabia

72,595

265,730

Spain

35,361

54,734

Italy

35,024

26,378

Austria

25,314

29,217

Japan

29,580

38,171

Other geographic markets

518,953

472,895

Revenue

6,243,956

5,716,206

In 2025 revenue achieved on the Danish market amounted to DKK 5 million (DKK 28 million).

In 2025 the following customers represented more than 10% of total revenue:

Biomedical Advanced Research and Development Authority (BARDA), USA, DKK 1,102 million.

Agence nationale de santé publique FR, France, DKK 715 million.

In 2024 the following customers represented more than 10% of total revenue:

Biomedical Advanced Research and Development Authority (BARDA), USA, DKK 1,329 million.

133

Bavarian Nordic Annual Report 2025

Note 3

Revenue (continued)

Accounting for contract with Biomedical Advanced Research and Development Authority (BARDA)

When drug substance batches are invoiced to BARDA the batches remain in the Company's physical posses-sion until filling as final product. The filling takes place either at the Company's facility in Kvistgaard or at CMO's (a bill-and-hold arrangement). Revenue is recognized once the batches are releasable according to contract with BARDA.

Payment is due within 30 days after invoicing.

Note 4

Production costs

Accounting policies

Production costs consist of costs incurred in gener-ating the revenue for the year. Costs for raw materials, consumables, production staff and a proportion of production overheads, including maintenance, amorti-zation, depreciation and impairment of intangible and tangible assets used in production as well as operation,

administration and management of the production facility are recognized as production costs. Amortization of acquired product rights are recognized as production costs. In addition, the costs related to idle capacity and write-down to net realisable value of goods on stock are recognized.

DKK thousand

2025

2024

Cost of goods sold

1,869,858

1,580,276

Contract costs

125,562

152,267

Other production costs

823,255

847,456

Amortization of product rights

376,668

317,449

Production costs

3,195,343

2,897,448

Other production costs primarily consist of unallocated costs, including the cost of idle manufacturing capacity and cost of unsuccessful production runs, plus write-downs.

Write-downs for the year amounted to DKK 325 million and are primarily related to provisions for potential write-downs of Encepur and MVA-BN batches. See note 18. In addition, non-provisioned scrap amounted to DKK 125 million, resulting in total write-downs and scrap of DKK 450 million presented as Other production costs.

The underlying decrease in other production costs compared to 2024 was driven by an improved yield,

less scrap and a higher output success rate in bulk production leading to a higher absorption of indirect production costs. In 2025 cost of idle manufacturing capacity in Bern amounted to approx. DKK 93 million (approx. DKK 107 million).

The product rights to Rabipur/RabAvert and Encepur were amortized with DKK 285 million (DKK 279 million). The product rights for Vivotif and Vaxchora were amor-tized with DKK 38 million (DKK 38 million). The product rights for Vimkunya were amortized with DKK 54 million (DKK 0 million).

134

Bavarian Nordic Annual Report 2025

Note 5

Sales and distribution costs

Accounting policies

Sales and distribution costs comprise costs incurred for the sale and distribution of products sold during the year. This includes costs incurred for sales campaigns, training and administration of the sales force and for direct distribution, marketing and promotion. Also included are salaries and other costs for the sales, distribution and marketing functions, loss allowance for expected credit losses, amortization, depreciation and other indirect costs.

Note 6

Research and development costs

Accounting policies

Research and development costs include salaries and costs directly attributable to the Group’s research and development projects, less government grants. Further-more, salaries and costs supporting direct research and development, including costs of patents, rent, leasing and depreciation attributable to laboratories, and external scientific consultancy services, are recognized under research and development costs. No indirect or general overhead costs that are not directly attributable to research and development activities are included in the disclosure of research and development expenses recognized in the income statement.

Research costs are expensed in the year they occur.

Development costs are generally expensed in the year they occur. In line with industry custom, capitaliza-tion of development costs does not begin until it is deemed realistic that the product can be completed

and marketed and it is highly likely that a marketing authorization will be received. In addition, there must be sufficient certainty that the future earnings to the Group will cover not only production costs, direct distri-bution and administrative costs, but also the develop-ment costs.

Contract research and development costs incurred to achieve revenue are included in "Research and devel-opment costs incurred this year" in the table and then transferred under "Contract costs recognized as produc-tion costs" to be recognized as production costs.

Grants that compensate the Group for research and development expenses incurred, which are recognized directly in the income statement, are set off against the costs of research and development at the time when a final and binding right to the grant has been obtained.

135

Bavarian Nordic Annual Report 2025

Note 6

Research and development costs (continued)

DKK thousand

2025

2024

Research and development costs incurred this year

905,865

1,014,777

Of which:

Contract costs recognized as production costs (note 4)

(125,562)

(152,267)

Research and development costs recognized in the income statement

780,303

862,510

San Diego site

In December 2024, Bavarian Nordic made the stra-tegic decision to close its San Diego site. This decision was driven by the need to streamline operations and optimize resources. The closure of the San Diego site resulted in a one-time restructuring cost of DKK 80 million, which has been included in the research and development expenses for the year.

Note 7

Administrative costs

Accounting policies

Administrative costs include costs of Group Manage-ment, staff functions, administrative personnel, office costs, rent, short-term lease payments and depreciation not relating specifically to production, research and development or sales and distribution.

136

Bavarian Nordic Annual Report 2025

Note 8

Staff costs

DKK thousand

2025

2024

Wages and salaries

1,482,764

1,327,419

Contribution based pension

119,769

116,171

Social security expenses

83,693

76,057

Other staff expenses

93,114

88,440

Share-based payment, see specification in note 30

84,485

78,672

Staff costs

1,863,825

1,686,759

Staff expenses are distributed as follows:

Production costs

1,006,153

793,584

Sales and distribution costs

255,303

220,433

Research and development costs

261,509

391,617

Administrative costs

302,798

281,125

Capitalized salaries

38,062

-

Staff costs

1,863,825

1,686,759

Average number of employees converted to full-time

1,693

1,529

Number of employees as of December 31 converted to full-time

1,795

1,611

The Group has mainly defined contribution plans and pays regular fixed contributions to independent pension funds and insurance companies.

DKK thousand

2025

2024

Staff costs include the following costs:

Board of Directors:

Remuneration

6,593

6,490

Share-based payment

1,869

2,070

Remuneration to Board of Directors

8,462

8,560

Executive Management:

Salary

22,478

24,815

Paid bonus

10,272

14,734

Other employee benefits

1,429

2,129

Contribution based pension

3,260

3,709

Share-based payment

32,223

32,638

Salary and benefits in notice period

-

19,966

Remuneration to Executive Management

69,662

97,991

Total management remuneration

78,124

106,551

Executive Management consist of CEO and President Paul Chaplin and CFO Henrik Juuel (constitute the Corpo-rate Management in the Parent Company) and COO Russell Thirsk and CCO JC May. CPO Anu Kerns resigned beginning of 2025. Salary and benefits in the notice period was accrued in 2024. The accrual for 2024 also included severance package for CMO Laurence De Moer-looze who resigned in May 2024.

Restricted stock units

In March 2025 Corporate Management was granted 39,038 restricted stock units (excl. matching shares) (27,873 restricted stock units) at a value of DKK 6.7 million (DKK 4.6 million) at grant. Other Executive Management was granted 20,724 restricted stock units (excl. matching shares) (30,161 restricted stock units) corresponding to a value of DKK 3.6 million (DKK 4.9 million) at grant.

137

Bavarian Nordic Annual Report 2025

In December 2025 Corporate Management was granted 71,121 (31,919) performance restricted stock units at a value of DKK 13.4 million (DKK 6.2 million) at grant. Other Executive Management was granted 32,888 (14,781) performance restricted stock units at a value of DKK 6.2 million (DKK 2.9 million) at grant.

In August 2025, the members of the Board of Direc-tors were granted in total 8,004 restricted stock units (13,637 restricted stock units) corresponding to 50% of their fixed fee amounting to DKK 1.9 million (DKK 2.1 million). For further description of restricted stock units see note 29.

Warrants

In December 2024 Corporate Management was granted 80,839 warrants with a fair value of DKK 6.2 million. Other Executive Management was granted 37,435 warrants with a fair value of DKK 2.9 million. For 2025 the composition of executive management remuner-ation was changed and no warrants were granted. Instead the grant of performance restricted stock units increased, see above. Warrants fair value is calculated based on Black-Scholes, cf. note 29.

Incentive programs for the Executive Management and other employees are disclosed in note 29.

Members of the Executive Management have contracts of employment containing standard terms for members of the Executive Management of Danish listed compa-nies, including the periods of notice that both parties

are required to give and competition clauses. If a contract of employment of a member of the Executive Management is terminated by the Company without misconduct on the part of such member, the member of the Executive Management is entitled to compen-sation, which, depending on the circumstances, may amount to a maximum of 8-18 months' remuneration. In the event of a change of control the compensation may amount to 24 months' remuneration.

Contracts with members of Executive Management are open-ended until the age of 70 years for the CEO. The termination period on the part of the Company is 18 months towards the CEO and may be prolonged to up to 24 months in case of change of control situations, and periods during which severance payment can be made may be up to 12 months, provided, however, that the total period for payment of termination pay and severance pay may not exceed 24 months. The termination period on the part of the Company is 12 months towards the CFO and may be prolonged to up to 16 months in case of change of control situations, and periods during which severance payments can be made equal a lump sum of additional 4 months base salary. The termination periods on the part of the Executive Management towards the Company are 6 months for the CEO and 6 months for the CFO. If the CEO passes away during his employment, the Company shall pay salary for the remaining month plus 12 additional months post-employment benefit to the CEO's cohab-iting spouse/partner and secondarily to the Executive’s children.

Note 9

Depreciation, amortization and impairment losses

DKK thousand

2025

2024

Depreciation and amortization included in:

Production costs

663,327

545,901

Sales and distribution costs

-

80

Research and development costs

6,353

20,424

Administrative costs

44,690

58,495

Depreciation and amortization

714,370

624,900

Hereof loss from disposed fixed assets

18,426

2,526

Impairment losses included in:

Production costs

23,155

-

Research and development costs

-

38,475

Administrative costs

601

-

Impairment losses

23,756

38,475

The product rights to Rabipur/RabAvert and Encepur are amortized over 20 years with an amortization of DKK 285 million for 2025.

The product rights for Vivotif and Vaxchora are amor-tized over 10-20 years with an amortization of DKK 38 million in 2025.

The product rights for Vimkunya are amortized over 20 years with an amortization of DKK 54 in 2025.

Amortization of product rights is recognized as part of cost of goods sold under production costs. See further description in note 15.

The impairment losses included in production cost of DKK 23 million for 2025 relates to the impairment of old lab equipment and machinery.

Note 8

Staff costs (continued)

138

Bavarian Nordic Annual Report 2025

Note 10

Fees to auditor appointed at the annual general meeting

DKK thousand

2025

2024

Audit of financial statements

3,252

2,685

Other assurance services

1,252

1,800

Other services

94

60

Fees

4,598

4,545

The fee for non-audit services provided to the Group by KPMG P/S, Denmark, amounted to DKK 1.3 million (DKK 1.8 million) and consisted of limited assurance on the sustainability statements, assistance with compli-ance reviews, and other accounting and tax advisory services.

Note 11

Financial income

Accounting policies

Interest income is recognized in the income state-ment at the amounts relating to the financial year. Financial income also includes net positive value adjustments of financial instruments and securities, and net currency gains.

DKK thousand

2025

2024

Financial income from bank and deposit contracts1

36,874

48,307

Financial income from securities

14,169

27,369

Fair value adjustments on securities

-

7,831

Net foreign exchange gains

-

66,558

Financial income

51,043

150,065

1Interest income from financial assets measured at amortized cost

139

Bavarian Nordic Annual Report 2025

Note 12

Financial expenses

Accounting policies

Interest expenses are recognized in the income statement at the amounts relating to the financial year. Financial expenses also include adjustment of net present value of the deferred consideration, cf. note 24, negative value adjustments of financial instruments and securities and net currency losses.

DKK thousand

2025

2024

Interest expenses on debt1

6,181

5,190

Fair value adjustments on securities

6,932

-

Unwinding of the discount related to deferred consideration

5,001

72,682

Adjustment of deferred consideration due to change in estimated timing of payments

16,453

7,090

Currency adjustment deferred consideration

2,324

24,899

Financial expenses, other

6,958

8,617

Net foreign exchange losses

10,038

-

Financial expenses

53,887

118,478

1Interest expenses on financial liabilities measured at amortized cost

Note 13

Tax for the year

Accounting policies

Income tax for the year comprises current tax and deferred tax for the year. The part relating to the profit for the year is recognized in the income statement, and the part attributable to items in the comprehensive income is recognized in the comprehensive income statement.

The tax effect of costs that have been recognized directly in equity is recognized in equity under the rele-vant items.

Any global minimum top-up tax, which is required to be paid under Pillar II legislation, is determined as an income tax in the scope of IAS 12. The Group has applied the temporary mandatory exception from deferred tax accounting for the impacts of any top-up tax and will account for it as a current tax when it incurs.

Current tax receivable is recognized in the balance sheet under current asset. Current tax payable is recog-nized in the balance sheet under current liabilities.

Deferred tax is measured using the balance sheet liability method on all temporary differences between accounting values and tax values. Deferred tax liabili-ties arising from temporary tax differences are recog-nized in the balance sheet as a liability.

Deferred tax assets arising from temporary deductible differences and tax losses carried forward are recog-nized when it is probable that they can be realized by offsetting them against taxable temporary differences or future taxable profits. At each balance sheet date, it is assessed whether it is probable that there will be sufficient future taxable income for the deferred tax asset to be utilized.

Changes in deferred tax concerning expenses for share-based payments are generally recognized in Statement of profit or loss. However, if the amount of the tax deduction exceeds the related cumulative expense, it indicates that the tax deduction relates not only to an operating expense but also to an equity item. In such a case, the excess of the associated current or deferred tax is recognized directly in equity.

Deferred income tax is provided on temporary taxable differences arising on investments in subsidiaries, unless the parent company is able to control the timing when the deferred tax is to be realized and it is likely that the deferred tax will not be realized within the foreseeable future.

Deferred tax is calculated at the tax rates applicable on the balance sheet date for the income years in which the tax asset is expected to be utilized.

140

Bavarian Nordic Annual Report 2025

DKK thousand

2025

2024

Tax recognized in the income statement

Current tax on profit for the year

108,903

11,211

Adjustments to current tax for previous years

6,406

(3,119)

Current tax

115,309

8,092

Change in deferred tax

310,268

(24,712)

Deferred tax

310,268

(24,712)

Tax for the year recognized in the income statement

425,577

(16,620)

Tax on income for the year is explained as follows:

Income before company tax

1,800,955

971,357

Calculated tax (22.0%) on income before company tax

396,210

213,699

Tax effect on:

Different tax percentage in foreign subsidiaries

5,359

(31,236)

Income ()/expenses that are not taxable/deductible for tax purposes

(14,906)

(16,854)

Special tax credit

(9,636)

(12,321)

Change in unrealized intra-group profits

12,460

40,866

Change in non-recognized tax asset

29,655

(207,655)

Adjustments to current tax for previous years

6,406

(3,119)

Paid tax in other jurisdictions

29

-

Tax on income for the year

425,577

(16,620)

Tax recognized in other comprehensive income

Remeasurements of defined benefit plans

(6,191)

4,171

Change in fair value of financial instruments entered into to hedge future cash flows

(2,124)

-

Tax for the year recognized in other comprehensive income

(8,315)

4,171

Tax recognized in equity

-

-

Tax on income is an expense of DKK 426 million (income of DKK 17 million), corresponding to an effec-tive positive tax rate of 23,6% (negative 1.7%). The Parent Company’s taxable income for 2025 is DKK 377 million (DKK 0 million) after use of tax losses carried forward.

'Income()/expenses that are not taxable/deductible for tax purposes' is primarily related Bavarian Nordic Inc. use of previously not recognized tax loss carried forward offset by deduction limitations on 'Share-based payment' and 'Management salaries' in the Parent Company.

'Special tax credit' primarily relates to the 8% step up deduction on research and development costs according to Section 8B of the Danish Tax Assessment Act.

Note 13

Tax for the year (continued)

141

Bavarian Nordic Annual Report 2025

2025

DKK thousand

Current tax on profit for the year

Adjustments to current tax for previous years

Change in deferred tax

Total 2025

Total 2024

Tax jurisdiction

Denmark

82,990

-

304,949

388,038

-

Germany

13,150

-

-

13,150

9,302

Switzerland

6,897

471

5,319

12,688

(24,045)

USA

3,654

5,002

-

8,655

(2,375)

Italy

332

313

-

645

24

Spain

139

-

-

139

310

Portugal

24

-

-

24

-

Canada

583

407

-

990

128

Sweden

55

-

-

56

36

UK

468

55

-

523

-

Belgium

341

78

-

419

-

France

241

10

-

251

-

Finland

29

70

-

-

-

Total taxes

108,903

6,406

310,268

425,578

(16,620)

Current tax expensed in 2025 relates mainly to the Parent Company and Bavarian Nordic GmbH. Change in recognized deferred tax in 2025 relates also mainly to the Parent Company. In 2024 the change in deferred tax related solely to Bavarian Nordic Berna GmbH.

Current tax on profit for previous years relates primarily to state taxes in Bavarian Nordic Inc.

Note 13

Tax for the year (continued)

142

Bavarian Nordic Annual Report 2025

Note 13

Tax for the year (continued)

2025

DKK thousand

January 1, 2025

Adjustment to previousyear

Recognized in the income statement

Recognized in equity

Exchange rate adjust-ments on translating foreign operations

December 31, 2025

Product rights

(177,960)

-

(132,829)

-

-

(310,789)

Acquired rights

(177,395)

-

(9,661)

-

-

(187,056)

Property, plant and equipment

35,422

(1,058)

(4,676)

-

(365)

29,323

Right-of-use assets

454

-

83

-

-

537

Development projects for sale

19,443

-

(6,502)

-

-

12,941

Unrealized intra-group profits

(49,551)

-

(12,460)

-

10,302

(51,709)

Receivables

443

-

65

-

-

508

Provisions

1,540

-

7,040

-

-

8,580

Defined benefit plans

25,900

-

(2,858)

(6,191)

274

17,125

Financial instruments

6,425

154

-

(8,703)

-

(2,124)

Share-based payment

45,183

(37,308)

2,383

-

-

10,258

Tax losses carried forward

487,401

(636)

(121,198)

-

(10,245)

355,322

Not recognized tax asset

(217,305)

38,848

(29,655)

6,579

-

(201,533)

Recognized deferred tax assets/(liabilities)

-

-

(310,268)

(8,315)

(34)

(318,617)

2024

DKK thousand

January 1, 2024

Adjustment to previousyear

Recognized in the income statement

Recognized in equity

Exchange rate adjust-ments on translating foreign operations

December 31, 2024

Product rights

(50,074)

(977)

(126,909)

-

-

(177,960)

Acquired rights and development in progress

(111,104)

(9,686)

(56,605)

-

-

(177,395)

Property, plant and equipment

52,065

(761)

(16,354)

-

472

35,422

Right-of-use assets

183

-

271

-

-

454

Development projects for sale

25,944

-

(6,501)

-

-

19,443

Unrealized intra-group profits

(9,598)

-

(40,866)

-

913

(49,551)

Receivables

218

-

225

-

-

443

Provisions

1,100

110

330

-

-

1,540

Defined benefit plans

11,173

-

10,843

4,171

(287)

25,900

Financial instruments

(10,095)

-

(89)

16,609

-

6,425

Share-based payment

35,790

-

9,393

-

-

45,183

Tax losses carried forward

445,010

(15)

43,319

-

(913)

487,401

Not recognized tax asset

(419,680)

11,329

207,655

(16,609)

-

(217,305)

Recognized deferred tax assets/(liabilities)

(29,068)

-

24,712

4,171

185

-

143

Bavarian Nordic Annual Report 2025

Deferred tax balances

Deferred tax balances relate to temporary differences between the tax base and accounting carrying amount and tax losses carried forward.

Deferred tax assets arising from temporary deductible differences and tax losses carried forward are recog-nized to the extent they are expected to be offset against future taxable income. Management estimates future income according to budgets and forecasts for the coming years.

Recognized tax losses carried forward at the beginning of 2025 relate to Bavarian Nordic A/S and the two Danish subsidiaries Aktieselskabet af 1. juni 2011 I and Aktieselskabet af 1. juni 2011 II regulated within Danish tax jurisdiction and Bavarian Nordic Berna GmbH regu-lated within the Swiss tax jurisdiction. All tax losses carried forward concerning the Swiss tax jurisdiction has been fully utilized in 2025. Recognized tax losses carried forward at the end of 2025 therefor only relate to the Danish tax jurisdiction.

The tax value of non-recognized tax losses carried forward in Bavarian Nordic A/S and the two Danish subsidiaries amounts to DKK 202 million (DKK 217 million). Tax rate used for the Danish tax jurisdiction is 22.0%.

Danish joint taxed company's right to use the tax losses carried forward is not time-limited.

Pillar II

The Bavarian Nordic Group is within scope of the Minimum Tax Act (OECD Pillar II model rules) from 2025. The Group does not recognize and disclose informa-tion about any deferred tax assets and tax liabilities arising from Pillar II income taxes, following the excep-tion stated in IAS 12. No Pillar II top-up tax costs are expected in 2025 for the Bavarian Nordic Group and no current income tax has therefore been recognized in 2025. This assessment is based on use of the Tran-sitional Safe Harbour rules and the rules pertaining to valuation allowances following article 4.4.1(c) in the OECD Pillar II model rules.

Note 14

Earnings per share (EPS)

Accounting policies

Earnings per share is calculated as the profit or loss for the year compared to the weighted average of the issued shares in the financial year. The basis for the

calculation of diluted earnings per share is the weight-ed-average number of ordinary shares in the financial year adjusted for the dilutive effects of warrants.

DKK thousand

2025

2024

Net result for the year

1,375,378

987,977

Earnings per share of DKK 10

17.6

12.6

Diluted earnings per share of DKK 10

17.6

12.6

The weighted average number of ordinary shares for the purpose of diluted earning per share reconciles to the weighted average number of ordinary shares used in the calculation of basic earnings per share as follows:

Weighted average number of ordinary shares

78,977,265

78,340,169

Weighted average number of treasury shares

(949,330)

(236,410)

Weighted average number of outstanding ordinary shares used in the calculation of basic earnings per share

78,027,935

78,103,759

Average dilutive effect of outstanding warrants  under incentive schemes

-

-

Weighted average number of outstanding ordinary shares used in the calculation of diluted earnings per share

78,027,935

78,103,759

Outstanding warrants that may have an effect on the calculation of diluted earnings per share in the future.

2025-program

1,254,969

-

2024-program

1,041,771

1,156,783

2023-program

997,985

1,143,379

2022-program

846,655

914,266

2021-program

604,384

610,463

2020-program

-

811,014

Outstanding warrants, cf. note 29

4,745,764

4,635,905

The average exercise price for outstanding warrants (DKK 235) are below the average share price of the Company for the year (191), therefore no dilution impact on the earnings per share.

Note 13

Tax for the year (continued)

144

Bavarian Nordic Annual Report 2025

Note 15

Intangible assets

Accounting policies

Intangible assets are measured at historic cost less accumulated amortization and impairment losses. Cost of acquired product rights are measured at cash consid-eration and present value of any deferred payments for those rights. Furthermore costs of acquired product rights include transaction costs that are directly attrib-utable to the acqusition. Internal development projects that meet the requirements for recognition as intan-gible assets are measured at direct cost relating to the development projects

Amortization is provided on a straight-line basis over the useful economic lives of the assets.

The useful lives of acquired product rights are esti-mated to be 10-20 years and software is estimated to be 3-5 years.

Amortization of acquired product rights is recognized as part of cost of goods sold under production costs.

Impairment

The carrying amounts of intangible assets carried at cost or amortized cost are tested at least annually to determine whether there are indications of any impair-ment in excess of that expressed in normal amortiza-tion. If that is the case, the asset is written down to the recoverable amount, which is the higher of its fair value less costs to sell and its value in use. Impairment losses on intangible assets are recognized under the same line item as amortization of the assets.

For development projects in progress, the recoverable amount is assessed annually, regardless of whether any indications of impairment have been found.

Key accounting estimates

Product rights

When determining the amortization period for acquired product rights, Management need to make an assessment of expected useful economic life. In the assessment Management take among other things the following components into consideration: The maturity of the products acquired, development in the market the acquired products are targeting, the current competitors, clinical development of new competing products and entry barriers to the market due to advanced production technology. Straight-line amortization reflects the use and impairment of the product rights.

Management continuously updates the valuation model used when acquiring the product rights from GSK and Emergent BioSolutions to assess the value creation expected from the acquisitions. The valuation are based on latest budgets and forecasts and assessment of useful life, taking into consideration e.g. market share, competitors, improvements in production efficiency. The latest update of the valuation models show values above the net present value of the purchase prices, hence there is no indications of impairment.

Key accounting judgments

Management has made the following accounting judg-ments which significantly affect the amounts recog-nized in the consolidated financial statements:

Acquired rights and development in progress

Under the Group’s accounting policies and in accordance with common industry practice, development costs are generally expensed in the year they occur. This approach is taken due to the uncertainty surrounding the future benefits of these costs until commercial approval is obtained.

145

Bavarian Nordic Annual Report 2025

Note 15

Intangible assets (continued)

2025

DKK thousand

Product rights

Acquired rights and development in progress

Developed production process

Software

Other intangible assets in progress

Total

Costs as of January 1, 2025

6,094,710

1,286,782

374,857

130,894

18,694

7,905,937

Additions

-

-

-

2,546

46,217

48,763

Transfer

1,286,782

(1,286,782)

-

12,442

(12,442)

-

Transfer from property, plant and equipment

-

-

-

-

8,399

8,399

Disposals

-

-

-

(34,873)

(1,898)

(36,771)

Exchange rate adjustments

-

-

-

(231)

(205)

(436)

Cost as of December 31, 2025

7,381,492

-

374,857

110,778

58,765

7,925,892

Amortization and impairment losses as of January 1, 2025

1,434,284

-

31,238

109,523

-

1,575,045

Amortization

376,667

-

37,486

11,799

-

425,952

Transfer to/from property, plant and equipment

-

-

-

128

-

128

Disposals

-

-

-

(34,623)

-

(34,623)

Exchange rate adjustments

-

-

-

(260)

-

(260)

Amortization and impairment losses as of December 31, 2025

1,810,951

-

68,724

86,567

-

1,966,242

Carrying amount as of December 31, 2025

5,570,541

-

306,133

24,211

58,765

5,959,650

Geographical split of intangible assets - 2025

Denmark

5,955,158

Germany

1,273

USA

-

Switzerland

3,219

Total intangible assets

5,959,650

Product rights

December 31, 2019 the Company acquired the product rights to two commercial products owned by GSK - Rabipur/RabAvert and Encepur.

The products have been on the market for more than 20 years. There is no need to further develop the prod-ucts. Management assesses that it will require up to 10 years of clinical development for competitors to bring a new competing product to the market likewise the production process required to produce these products is highly complex. Based on these factors Management assesses that the acquired product rights should be amortized over 20 years.

In June 2024, based on higher-than-expected sales of Rabipur and Encepur during the second quarter of 2024, Management assessed it likely that Bavarian Nordic would reach the trigger for the sales milestone included in the Asset Purchase Agreement concluded in 2019 and this was finally confirmed by end of July 2024. The sales milestone of DKK 186 million was recognized as an addition to the product rights and the deferred consideration in 2024.

In May 2023, the Company concluded a Purchase and Sale Agreement with Emergent BioSolutions. The agreement included acquisition of product rights to two commercial travel vaccines - Vivotif and Vaxchora.

Vivotif and Vaxchora were first licensed in the US in 1989 and 2016 respectively. Vaccines have historically shown to have a long lifespan due to stringent regu-latory requirements, high research and development

146

Bavarian Nordic Annual Report 2025

Note 15

Intangible assets (continued)

costs and a complex manufacturing process. Vaxchora is targeting a market that has a relatively low market value, which further lowers the chance of competitors entering the market and taking significant market shares. Based on these factors Management assesses that the Vaxchora product right should be amortized over 20 years.

Vivotif was developed more than 30 years ago and the market is larger than for Vaxchora. Therefore, the risk of competition is also deemed higher, hence the amorti-zation period is assessed to be 10 years.

The acquisition price for the two product rights consists of an upfront payment of DKK 312 million for Vivotif and DKK 137 million for Vaxchora.

The Purchase and Sale Agreement also includes an earnout payment starting at USD 30 million. The earnout payment relates to sale of Vivotif and Vaxchora. As per December 31, 2025 Management does not judge the sales milestone to be probable and there-fore the earnout payment has not been recognized as either part of the project rights nor the deferred consid-eration.

Acquired rights and development in progress

The Purchase and Sale Agreement concluded with Emergent BioSolutions included acquisition of a late-stage vaccine candidate for Chikungunya virus. The initial acquisition price amounted to DKK 788 million. No further cost will be capitalized.

The agreement with Emergent BioSolutions also included milestone payments totaling USD 80 million related to submission and approval of Biologics License Application (BLA) to FDA and Marketing Authorization Application to EMA for the chikungunya development asset.

At initial recognition the net present value of probable future development milestone payments to Emergent BioSolutions Inc. amounted to DKK 499 million and was recognized as deferred consideration (note 24).

Developed production processes

Developed production processes consist of the the as-is technology transfer from GSK to Bavarian Nordic of the manufacturing process for Rabipur/RabAvert and Encepur. The Company has incurred material costs in terms of internal labor and consultancy to handle the technology transfer and has gained crucial knowledge about the manufacturing process. These costs are capitalized as an intangible asset. As per December 31, 2025 the capitalized costs amounts to DKK 306 million (DKK 345 million).

Intangible assets in progress

Other intable assets in progress relates to IT invest-ments.

2025

DKK thousand

Acquistion price

Carrying amount December 31, 2025

Remaining amortization period

Rabipur/RabAvert

3,252,110

2,299,212

14 years

Encepur

2,393,023

1,690,273

14 years

Vivotif

312,208

228,539

7.5 years

Vaxchora

137,369

119,354

17.5 years

Vimkunya

1,286,782

1,233,163

19.2 years

Total product rights

7,381,492

5,570,541

2024

DKK thousand

Acquistion price

Carrying amount December 31, 2024

Remaining amortization period

Rabipur/RabAvert

3,252,110

2,463,437

15 years

Encepur

2,393,023

1,811,007

15 years

Vivotif

312,208

259,759

8.5 years

Vaxchora

137,369

126,223

18.5 years

Total product rights

6,094,710

4,660,426

147

Bavarian Nordic Annual Report 2025

Note 15

Intangible assets (continued)

2024

DKK thousand

Product rights

Acquired rights and development in progress

Developed Production Process

Software

Other intangible assets in progress

Total

Costs as of January 1, 2024

5,908,277

2,690,013

-

114,958

417,326

9,130,574

Additions

186,433

-

-

233

21,259

207,925

Transfer

-

-

374,857

17,902

(392,759)

-

Transfer to/from property, plant and equipment

-

-

-

(2,265)

(884)

(3,149)

Disposals

-

(1,403,264)

-

-

(26,224)

(1,429,488)

Exchange rate adjustments

-

33

-

66

(24)

75

Cost as of December 31, 2024

6,094,710

1,286,782

374,857

130,894

18,694

7,905,937

Amortization and impairment losses as of January 1, 2024

1,116,835

1,403,264

-

102,515

26,224

2,648,838

Amortization

317,449

-

31,238

8,120

-

356,807

Transfer

-

-

-

(1,231)

-

(1,231)

Disposals

-

(1,403,264)

-

-

(26,224)

(1,429,488)

Exchange rate adjustments

-

-

-

119

-

119

Amortization and impairment losses as of December 31, 2024

1,434,284

-

31,238

109,523

-

1,575,045

Carrying amount as of December 31, 2024

4,660,426

1,286,782

343,619

21,371

18,694

6,330,892

Geographical split of intangible assets – 2024

Denmark

6,325,789

Germany

685

USA

1,838

Switzerland

2,580

Total intangible assets

6,330,892

148

Bavarian Nordic Annual Report 2025

Note 16

Property, plant and equipment

Accounting policies

Property, plant and equipment include land and build-ings, production equipment, leasehold improvements, office and IT equipment and laboratory equipment and is measured at cost less accumulated depreciation and impairment losses.

Cost includes the costs directly attributable to the purchase of the asset, until the asset is ready for use. For assets constructed by the Group cost includes mate-rials, components, third-party suppliers and labor.

Borrowing costs directly attributable to the construction of property, plant and equipment are included in cost. Other borrowing costs are recognized in the income statement.

Depreciation is charged over the expected economic lives of the assets, and the depreciation methods, expected lives and residual values are reassessed indi-vidually for the assets at the end of each financial year. Assets are depreciated on a straightline basis over their estimated useful lives as follows:

Buildings10-20 yearsInstallations5-15 yearsLeasehold improvements5 yearsOffice and IT equipment3-5 yearsLaboratory equipment5-10 yearsProduction equipment3-15 years

Management reviews the estimated useful lives of material property, plant and equipment at the end of each financial year.

Impairment

The carrying amounts of property, plant and equipment carried at cost or amortized cost are tested annually to determine whether there are indications of any impair-ment in excess of that expressed in normal deprecia-tion. If that is the case, the asset is written down to the recoverable amount, which is the higher of its fair value less costs to sell and its value in use. Impairment losses on property, plant and equipment are recognized under the same line item as depreciation of the assets.

149

Bavarian Nordic Annual Report 2025

Note 16

Property, plant and equipment (continued)

2025

DKK thousand

Land and buildings

Leasehold improvement

Plant and machinery

Other fixtures and fittings, other plant and equipment

Assets under construction

Total

Costs as of January 1, 2025

1,274,045

47,385

719,675

916,272

159,660

3,117,037

Additions

5,040

-

2,844

16,161

181,243

205,288

Transfer

15,730

4,108

45,120

24,365

(89,323)

-

Transfer from intangible assets

347

-

-

-

(8,746)

(8,399)

Disposals

(359)

-

(39,016)

(22,904)

(11,012)

(73,291)

Exchange rate adjustments

3,916

61

1,089

(2,807)

1,015

3,274

Cost as of December 31, 2025

1,298,719

51,554

729,712

931,087

232,837

3,243,909

Depreciation and impairment losses as of January 1,2025

335,039

29,069

302,465

289,896

-

956,469

Depreciation

56,596

9,612

79,565

96,199

-

241,972

Transfer from intangible assets

11

-

-

(139)

-

(128)

Impairment losses

601

-

23,048

107

-

23,756

Disposals

(325)

-

(31,793)

(22,678)

-

(54,796)

Exchange rate adjustments

754

23

7,749

(2,628)

-

5,898

Depreciation and impairment losses as of December 31, 2025

392,676

38,704

381,034

360,757

-

1,173,171

Carrying amount as of December 31, 2025

906,043

12,850

348,678

570,330

232,837

2,070,738

Geographical split of property, plant and equipment – 2025

Denmark

1,360,407

Germany

59,617

USA

833

Switzerland

649,881

Total property, plant and equipment

2,070,738

Mortgage loans of DKK 13 million are secured by mort-gage deed totaling DKK 32 million on the property Bøgeskovvej 9/Hejreskovvej 10A, Kvistgaard. In addi-tion, as of December 31, 2025, mortgage deeds for a total of DKK 75 million are issued. The carrying amount of assets mortgaged in security of mortgage loans is DKK 1,255 million (land and buildings: DKK 906 million; plant and machinery: DKK 349 million

150

Bavarian Nordic Annual Report 2025

2024

DKK thousand

Land and buildings

Leasehold improvement

Plant and machinery

Other fixtures and fittings, other plant and equipment

Assets under construction

Total

Costs as of January 1, 2024

1,268,062

47,036

646,707

889,215

206,721

3,057,741

Additions

-

-

1,498

5,189

72,825

79,512

Transfer

11,127

1,516

71,763

34,526

(118,932)

-

Transfer from intangible assets

-

-

3,149

-

-

3,149

Disposals

-

(1,271)

(2,137)

(11,243)

(538)

(15,189)

Exchange rate adjustments

(5,144)

104

(1,305)

(1,415)

(416)

(8,176)

Cost as of December 31, 2024

1,274,045

47,385

719,675

916,272

159,660

3,117,037

Depreciation and impairment losses as of January 1,2024

281,049

21,989

234,033

193,155

-

730,226

Depreciation

54,136

7,394

67,637

92,301

-

221,468

Transfer

-

-

1,529

(1,529)

-

-

Transfer from intangible assets

-

-

1,231

-

-

1,231

Impairment losses

-

-

-

12,044

-

12,044

Disposals

-

(337)

(2,019)

(5,198)

-

(7,554)

Exchange rate adjustments

(146)

23

54

(877)

-

(946)

Depreciation and impairment losses as of December 31, 2024

335,039

29,069

302,465

289,896

-

956,469

Carrying amount as of December 31, 2024

939,006

18,316

417,210

626,376

159,660

2,160,568

Geographical split of property, plant and equipment – 2024

Denmark

1,509,265

Germany

47,818

USA

18,283

Switzerland

585,202

Total property, plant and equipment

2,160,568

Mortgage loans of DKK 15 million are secured by mort-gage deed totaling DKK 32 million on the property Bøgeskovvej 9/Hejreskovvej 10A, Kvistgaard. In addi-tion, as of December 31, 2024, mortgage deeds for a total of DKK 75.0 million have been issued. The carrying amount of assets mortgaged in security of mortgage loans is DKK 1,356 million (land and buildings: DKK 939 million; plant and machinery: DKK 417 million).

Note 16

Property, plant and equipment (continued)

151

Bavarian Nordic Annual Report 2025

Note 17

Right-of-use assets

Accounting policies

The right-of-use assets comprise the initial measure-ment of the corresponding lease liability. Right-of-use assets are subsequently measured at cost less accumu-lated depreciation and impairment losses.

All operating leases with a lease term of more than 12 months are recognized on the balance sheet as right-of-use-assets.

For leases with a lease term of less than 12 months the lease payments are recognized as an operating expense on a straight-line basis over the term of the lease.

The right-of-use assets are measured at the present value of all future lease payments. When assessing the lease term, any extension or termination options are included in the assessment. The options are included in determining the lease term, if exercise is reason-ably certain. When determining the discount rates used to calculate the net present value of future lease payments, an incremental country specific borrowing rate is used, based on a government bond plus the Group’s credit margin, ranging from 4.8% to 6.93%. A single discount rate is used for a portfolio of lease assets with reasonable similar characteristics. Initial direct costs are not included in measurement of the right-of-use assets. Non-lease components are not separated from lease components.

A maturity analysis for lease payments is described in note 22. Impact from change in lease terms, lease payments or modification of the lease contract is further described in note 27.

Right-of-use assets are depreciated over the shorter period of lease term and useful life of the underlying asset. The depreciation starts at the commencement date of the lease. IAS 36 is applied to determine whether a right-of-use asset is impaired and any iden-tified impariment losses are accounted for as described in note 15.

2025

DKK thousand

Rent facility

Car leasing

Equipment

Total

Right-of-use assets as of January 1, 2025

72,696

8,182

1,021

81,899

Additions

29,217

14,665

-

43,882

Modifications

2,684

(1,043)

-

1,641

Disposals

-

(1,205)

(2,316)

(3,521)

Depreciation

(21,107)

(6,114)

(799)

(28,020)

Reversal depreciation

-

1,205

2,316

3,521

Exchange rate adjustments

(947)

(32)

-

(979)

Right-of-use assets as of December 31, 2025

82,543

15,658

222

98,423

2024

DKK thousand

Rent facility

Car leasing

Equipment

Total

Impact from applying IFRS 16 as of January 1, 2024

112,867

11,154

1,149

125,170

Additions

1,307

4,415

532

6,254

Modifications

20,441

(56)

(31)

20,354

Disposals

(15,488)

(4,373)

(307)

(20,168)

Depreciation

(36,665)

(6,805)

(629)

(44,099)

Impairment

(26,431)

-

-

(26,431)

Reversal depreciation

15,488

3,813

307

19,608

Exchange rate adjustments

1,177

34

-

1,211

Right-of-use assets as of December 31, 2024

72,696

8,182

1,021

81,899

DKK thousand

2025

2024

Amounts included in the income statement

Interest expense leases

5,214

4,737

Depreciation recognized on right-of-use assets

28,020

44,099

Impairment recognized on right-of-use assets

-

26,431

152

Bavarian Nordic Annual Report 2025

Note 18

Inventories

Accounting policies

Inventories are measured at the lower of cost less write-downs and net realisable value. The net realis-able value is the estimated sales price in the ordinary course of business less relevant sales costs deter-mined on the basis of marketability, obsolescence and changes in the expected sales price.

Raw materials are measured at cost based on the FIFO method. For raw materials, cost is determined as direct acquisition costs incurred.

The cost of work in progress and finished goods produced in-house are measured at standard cost and includes raw materials, consumables, external manu-facturing services and direct payroll costs plus allocated indirect costs of production (production overheads).

Indirect costs of production include indirect materials and labor as well as maintenance of and depreciation on the machinery used in production processes, factory buildings and equipment used and cost of production administration and management.

Significant accounting estimates

Production overheads are measured on the basis of actual costs. The basis of the actual costs is reassessed regularly to ensure that they are adjusted for changes in the utilization of production capacity, production changes and other relevant factors. Biological living material is used, and the measurements and assump-tions for the estimates made may be incomplete or inaccurate, and unexpected events or circumstances may occur, which may cause the actual outcomes to later deviate from these estimates. It may be necessary to change previous estimates as a result of changes in the assumptions on which the estimates were based or due to new information or subsequent events, for which certainty could not be achieved in the earlier estimates.

Estimates that are material to the financial reporting are made in the determination of any write-down due to impairment of inventories as a result of unreleased products, expiry of products and sales risk.

DKK thousand

2025

2024

Raw materials and supply materials

262,296

313,878

Work in progress

1,990,711

1,557,074

Manufactured goods

638,269

712,285

Write-down on inventory

(377,357)

(255,928)

Inventories

2,513,919

2,327,309

Write-down on inventory as of January 1

(255,928)

(224,615)

Write-down for the year

(325,037)

(187,183)

Use of write-down

203,608

126,322

Reversal of write-down

-

29,548

Write-down on inventory as of December 31

(377,357)

(255,928)

Cost of goods sold amounts to, cf. note 4

1,869,858

1,580,276

The inventory value of Encepur and Rabipur/RabAvert products amounted to DKK 1,328 million (DKK 1,625 million), Jynneos/Imvamune/Imvanex amounted to DKK 606 million (DKK 303 million), Vivotif and Vaxchora amounted to DKK 77 million (DKK 94 million) and Vimkunya amounted to DKK 221 million (DKK 67 million) as per December 31, 2025 incl. write-down.

Write-down for the year amounted to DKK 325 million (DKK 187 million) and mainly relates to write down of Encepur DKK 149 million and MVA DKK 82 million.

Use of prior year write-down amounted to DKK 204 million (DKK 126 million) relating to scrap of expired finish products, including DKK 100 million of Encepur FDP, and scrap of finally failed batch productions.

153

Bavarian Nordic Annual Report 2025

Note 19

Trade receivables

Accounting policies

Receivables are measured at initial recognition at fair value and subsequently at amortized value usually equal to the nominal value, net of impairment based on expected credit losses.

Loss allowance is calculated using the ‘full lifetime expected credit losses’ method, whereby the likelihood of non-fulfilment throughout the lifetime of the finan-cial instrument is taken into consideration. A provision account is used for this purpose.

DKK thousand

2025

2024

Trade receivables from public preparedness business

233,351

877,588

Trade receivables from travel health business

545,701

297,975

Trade receivables from contract work

1,246

181

Trade receivables

780,298

1,175,744

Credit risk

Bavarian Nordic’s customers are predominantly public authorities and renowned wholesalers and therefore the credit risk is very low. There are overdue receiva-bles as of December 31, 2025 DKK 154 million (DKK 89 million). As of December 31, 2025 a loss allowance of DKK 4 million (DKK 3 million) has been recognized.

The Group has applied the simplified approach to measure the expected credit loss and a lifetime expected loss allowance for all trade receivables.The allowance is an estimate based on shared credit risk characteristics and the days past due. At the time of revenue recognition, Bavarian Nordic assesses the full lifetime expected credit losses. In addition, undue and due receivables are analyzed in an ongoing process. Based on the credit assessment, receivables analysis, historical experience and industry experience, it is estimated whether the receivables are recoverable

or write-downs are needed. Bavarian Nordic monitor the credit exposure on all customers, both new and existing.

Bavarian Nordic recognizes a loss allowance for expected credit losses and writes off trade receivables when there is information indicating that the debtor is in severe financial difficulty and there is no realistic prospect of recovery. Subsequent recovery of amounts previously written down is credited against sales and distribution costs.

The payment conditions for the customers, including credit periods and any payment of interest in case of non-payment, vary, but are always based on industry practice in the relevant market. The average credit period is approximately 30 days for the public prepar-edness business, while the average credit period for the travel health business is 60 days.

The table details the risk profile for trade receivables.

Trade receivables

DKK thousand

Grosscarryingamount

Loss allowance

Net carrying amount

2025

Not past due date

630,247

-

630,247

Overdue by 0-3 months

122,131

-

122,131

Overdue by 3-6 months

20,386

(2,425)

17,961

Overdue by 6-12 months

2,526

(1,489)

1,037

Overdue by more than 12 months

8,922

-

8,922

Trade receivables

784,212

(3,914)

780,298

2024

Not past due date

1,089,771

-

1,089,771

Overdue by 0-3 months

42,299

-

42,299

Overdue by 3-6 months

41,204

(1,954)

39,250

Overdue by 6-12 months

5,465

(1,041)

4,424

Overdue by more than 12 months

-

-

-

Trade receivables

1,178,739

(2,995)

1,175,744

154

Bavarian Nordic Annual Report 2025

Note 20

Other receivables

Accounting policies

Receivables are measured at initial recognition at fair value and subsequently at amortized value usually equal to the nominal value, net of impairment, to

counter the loss after an individual assessment of risk of loss. Derivative financial instruments are measured at fair value.

DKK thousand

2025

2024

Deposits

15,150

9,086

Receivable VAT and duties

40,525

38,910

Derivative financial instruments at fair value

10,260

698

Interest receivables

8,600

3,687

Other receivables

2,051

370

Other receivables

76,586

52,751

Classified as:

Non-current assets

15,150

9,086

Current assets

61,436

43,665

Other receivables

76,586

52,751

Note 21

Prepayments

Accounting policies

Prepayments recognized under assets include costs paid in respect of subsequent financial years, including incurred costs related to technology transfer activities at CMO's, where the costs subsequently will be recog-

nized as inventory in concurrence with purchase of production services from the CMO's. Prepayments are measured at cost.

DKK thousand

2025

2024

Incurred project costs related to subsequent years

5,986

-

Prepayments to CMO's

81,532

73,986

Other prepayments

20,002

26,759

Prepayments

107,520

100,745

Classified as:

Non-current assets

73,268

36,421

Current assets

34,252

64,324

Prepayments

107,520

100,745

As per December 31, 2025 the main part of the prepay-ments to CMO's relates to technology transfer activities and capacity reservations. The costs are recognized as prepayments when they are incurred and then recog-nized as inventory in concurrence with purchase of production services from the CMO's. As per December 31, 2025 DKK 73.3 million (DKK 36.4 million) has been recognized as non-current prepayments.

As per December 31, 2024 the main part of the prepay-ments to CMO's related to the scale-up activities to prepare for production of drug product for commercial launch of Chikungunya. Costs related to the technology transfer activities are recognized as prepayments when costs are incurred and then recognized as inventory in concurrence with purchase of production services from the CMO's.

155

Bavarian Nordic Annual Report 2025

Note 22

Other liabilities

Accounting policies

Derivative financial instruments are measured at fair value.

Other financial liabilities are measured at initial recognition at fair value less any transaction costs. Subsequent other financial liabilities are measured at

amortized cost using the effective interest method, whereby the difference between proceeds and the nominal value is recognized in the income statement as a financial expense over the period. Amortized cost usually equal to the nominal value.

DKK thousand

2025

2024

Financial instruments at fair value

-

29,902

Payable salaries, holiday accrual etc.

279,119

242,736

Gross to net deduction accrual

246,164

186,576

Other accrued costs

37,952

38,243

Other liabilities

563,235

497,457

Gross to net deduction accruals consist of a variety of sales deductions, including product returns as well as rebates and discounts to government agencies, whole-salers, health insurance companies, managed health-care organizations and retail customers. The different components are further described in note 3.

For a further description of financial instruments see note 23.

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Bavarian Nordic Annual Report 2025

Note 23

Financial risks and financial instruments

Accounting policies

Derivative financial instruments

On initial recognition, derivative financial instruments are measured at the fair value on the settlement date.

Directly attributable costs related to the purchase or issuance of the individual financial instruments (transaction costs) are added to the fair value on initial recognition, unless the financial asset or the financial liability is measured at fair value with recognition of fair value adjustments in the income statement. Subse-quently, they are measured at fair value at the balance sheet date based on the official exchange rates, market interest rates and other market data such as volatility adjusted for the special characteristics of each instru-ment.

The Company has designated certain derivative finan-cial instruments as cash flow hedges as defined under IFRS 9 "Financial Instruments". Hedge accounting is classified as a cash flow hedge when the hedges of a particular risk is associated with the cash flows of highly probable forecast transactions.

Changes in the fair value of derivative financial instru-ments designated as and qualifying for recognition as effective hedges of future transactions (cash flow

hedges) are recognized in other comprehensive income. The ineffective portion is recognized immediately in the income statement. When the hedged transactions are realized, cumulative changes are recognized in the income statement together with the hedged transac-tion or in respect of a non-financial item as part of the cost of the transactions in question.

For derivative financial instruments that do not qualify for hedge accounting, changes in fair value are recog-nized as financials in the income statement as they occur.

Securities

Securities consist of highly liquid, listed bonds with high credit rating, which are measured at fair value on initial recognition and as of the balance sheet date. The Group’s portfolio of securities is treated as "financial items at fair value through profit or loss", as the port-folio is accounted for and valued on the basis of the fair value in compliance with the Company's investment policy.

Both realized and unrealized value adjustments are recognized in the income statement under financials.

DKK thousand

2025

2024

Categories of financial instruments

Trade receivables

780,298

1,175,744

Other receivables

66,326

52,053

Cash and cash equivalents

1,714,498

1,623,490

Financial assets measured at amortized cost

2,561,122

2,851,287

Securities

1,619,004

551,538

Financial assets measured at fair value through the income statement

1,619,004

551,538

Derivative financial instruments to hedge future cash flows (exchange rate)

9,658

-

Derivative financial instruments to hedge future cash flows (interest)

602

698

Financial assets used as hedging instruments

10,260

698

Deferred consideration

-

1,081,465

Debt to credit institutions

13,037

15,127

Lease liabilities

117,833

113,123

Prepayment from customers

9,949

131,408

Trade payables

999,744

1,045,134

Other liabilities

531,235

467,555

Financial liabilities measured at amortized cost

1,671,798

2,853,812

Derivative financial instruments to hedge future cash flows (exchange rate)

-

29,902

Financial liabilities used as hedging instruments

-

29,902

The carrying amount of short-term trade receivables and payables is considered a reasonable approximation of fair value, since these amounts have credit terms of 3 months or less.

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Bavarian Nordic Annual Report 2025

Note 23

Financial risks and financial instruments (continued)

Policy for managing financial risks

Through its operations, investments and financing the Group is exposed to fluctuations in exchange rates and interest rates. These risks are managed centrally in the Parent Company, which manages the Group´s liquidity. The Group pursues a treasury policy approved by the Board of Directors. The policy operates with a low risk profile, so that exchange rate risks, interest rate risks and credit risks arise only in commercial relations. The Group therefore does not undertake any active specula-tion in financial risk.

The Group´s capital structure is regularly assessed by the Board of Directors relative to the Group´s cash flow posi-tion and cash flow budgets.

Market risks

Market risk is the risk that changes in market prices will affect the Group’s profit or the value of its holdings of financial instruments. Bavarian Nordic is exposed to various market risks with the main risks being exchange rate risks, interest rate risks and cash risks. All market risks are managed in accordance with the treasury policy approved by the Audit Committee.

Interest rate risk

It is the Group's policy to hedge interest rate risks on loans obtained with floating rate and a maturity of more than five years. Hedging will then consist of interest rate swaps that convert floating rate loans to fixed rate loans. Management determines the economic relationship between the hedged item and the hedging instrument to ensure a high hedge effectiveness.

The interest rate risk involved in placing cash funds and investing in securities is managed on the basis of duration, preferably via a low portfolio duration and pari settlement of securities in order to minimize value adjustment risks.

Exchange rate risks

The Group’s exchange rate exposure is primarily to USD, EUR and CHF. The exchange rate exposure to USD is hedged to the greatest possible extent by matching incoming and outgoing payments denominated in USD, looking at maximum one year ahead. Regular assess-ments are made of whether the remaining net position should be hedged by currency forward contracts or currency option contracts.

The exposure to EUR for operating and financing activ-ities are not hedged as management believes that fluctuations in EUR are limited due to the Danish fixed-rate policy which is expected to be maintained and that matching of incoming and outgoing payments denomi-nated in EUR reduces the net exposure significantly. Thus the fluctuations in EUR do not have a significant impact on financial performance. Given the magnitude of the last payable milestone denominated in EUR, manage-ment has chosen to hedge the EUR exposure on this part of the Group's investment activities.

CHF exposure on operating and financing activities is not hedged, as a large portion is long term and outside the scope of the hedging policy. Remaining exposure is mitigated by matching CHF inflows and outflows where possible. Given the cash flow profile, the 12-month rolling hedging strategy, the limited impact on financial

Exchange rate risks on recognized financial assets and liabilities

DKK thousand

Cash and cash equivalents, securities

Receivables

Liabilities

Net position

2025

EUR

542,846

248,939

(820,956)

(29,171)

USD

190,202

478,811

(299,307)

369,706

CHF

9,929

20,016

(229,454)

(199,509)

2024

EUR

208,849

660,007

(1,530,566)

(661,710)

USD

334,980

619,176

(1,218,425)

(264,269)

CHF

8,473

39,541

(206,248)

(158,234)

Sensitivity analysis on exchange rates

DKK thousand

Reasonably possible change in exchange rate

Hypothetical change in equity

Hypothetical change in net result

2025

Change if higher USD-rate than actual rate

10%

71,573

65,539

Change if higher EUR-rate than actual rate

2%

2,796

(120)

Change if higher CHF-rate than actual rate

5%

35,592

(813)

2024

Change if higher USD-rate than actual rate

8%

30,868

29,544

Change if higher EUR-rate than actual rate

2%

(12,725)

(18,385)

Change if higher CHF-rate than actual rate

9%

54,515

(17,809)

158

Bavarian Nordic Annual Report 2025

performance, and the cost of hedging, management has determined that additional hedging is not warranted and will continue to monitor the exposure.

The sensitivity analysis shows the net effect it would have had on equity and profit for the year if the year-end exchange rates of USD, EUR and CHF had been 10%, 2% or 5%, respectively (USD, EUR and CHF had been 8%, 2% or 9%, respectively), higher than the actual exchange rates. A corresponding decrease in the actual exchange rates would have had an opposite (positive/negative) effect on net result and equity. The percentages used year-end 2025 for USD and CHF are based on the historical maximal currency rate spread from average in the period 2024 - 2025. The percentage used for EUR is based on the maximum spread in the ERM II framework.

Derivative financial instruments not designated as hedge accounting

Currency forward contracts and currency option contracts which are not designated as hedge accounting are classified as financial assets/liabilities measured at fair value with value adjustments recog-nized through the income statement.

There were no open currency contracts as of December 31, 2025 or as per December 31, 2024 not designated as hedge accounting.

Hedging of expected future cash flows

The Company has concluded currency forward contracts to sell USD 80 million (sell USD 264 million) and to buy

Cash flow hedge – forward currency contracts

DKK thousand

Forward price

Contract amount based on agreed rates

Fair value as of December 31

Fair value adjustment recognized in other compre-hensive income

2025

Forward currency contracts (USD/DKK)

Sell USD

6.31 - 6.47

510,073

5,126

43,106

Forward currency contracts (DKK/EUR)

Buy EUR

7.40

518,153

4,532

(3,546)

9,658

39,560

2024

Forward currency contracts (USD/DKK)

Sell USD

6.76 - 7.07

1,832,534

(37,980)

(77,165)

Forward currency contracts (DKK/EUR)

Buy EUR

7.40 - 7.41

1,333,378

8,078

2,479

(29,902)

(74,686)

Cash flow hedge – interest rate swap

DKK thousand

Contract amount based on agreed rates

Fair value as of December 31

Fair value adjustment recognized in other compre-hensive income

2025

Interest rate swap

DKK - fixed rate 0.9625% p.a. (expiry 2031)

12,708

602

(96)

602

(96)

2024

Interest rate swap

DKK - fixed rate 0.9625% p.a. (expiry 2031)

14,880

698

(405)

698

(405)

EUR 70 million (buy EUR 180 million) to hedge net USD cash flow during 2026 and EUR milestone payments in 2026.

These concluded currency forward contracts are deemed to be effective hedges of future transac-tion (cash flow hedges) and thus treated as hedge accounting.

In 2016 the Company refinanced the old mortgage loans (fixed rate) and obtained a new mortgage loan with floating rate. The Company also concluded an interest rate swap to convert the floating rate loan to a fixed rate loan. The interest rate swap has the same maturity date and nominal amount as the mortgage loan to secure high effectiveness of the hedge.

Cash risks

The Group´s bank deposits are placed in deposit accounts without restrictions. The Group's cash and cash equivalents totaled DKK 1,714 million as of December 31, 2025 (DKK 1,623 million).

The Group's fixed rate bond portfolio expires as shown below. Amounts are stated excluding interest.

Note 23

Financial risks and financial instruments (continued)

159

Bavarian Nordic Annual Report 2025

Note 23

Financial risks and financial instruments (continued)

2025

2024

DKK thousand

Fair value as of December 31

Effective interest

Fair value as of December 31

Effective interest

Bond portfolio

Within 0-2 years

1,483,735

1.9%

399,833

2.5%

Within 3-5 years

19,735

2.4%

-

-

After 5 years

115,534

3.2%

151,705

2.8%

Total

1,619,004

2.0%

551,538

2.6%

Fluctuations in interest rate levels affect the Group's bond portfolio. A change in the interest rate level by 1 percentage point relative to the interest rate level on the balance sheet date will have an impact of DKK 15 million on the Group´s net result and equity (DKK 12 million).

The bond position with a duration of more than 5 years is a result of previous year's investment strategy. The Group is in process of adapting the bond portfolio to the amended investment strategy with the aim of reducing the duration of the portfolio.

Maturity of financial liabilities

2025

Undiscounted contractual cash flow

DKK thousand

Due within 1 year

Due between 1 and 5 years

Due after 5 years

Total

Carrying amount

Credit institutions

2,535

9,947

1,828

14,310

13,037

Lease liabilities

43,371

68,493

15,378

127,242

117,833

Prepayment from customers

9,949

9,949

9,949

Trade payables

999,744

-

-

999,744

999,744

Other liabilities

531,235

-

-

531,235

531,235

Non-derivative financial liabilities

1,586,834

78,440

17,206

1,682,480

1,671,798

Derivative financial liabilities

-

-

-

-

-

2024

Undiscounted contractual cash flow

DKK thousand

Due within 1 year

Due between 1 and 5 years

Due after 5 years

Total

Carrying amount

Deferred consideration

1,104,708

-

-

1,104,708

1,081,465

Credit institutions

2,588

10,162

4,345

17,095

15,127

Lease liabilities

39,602

80,357

-

119,959

113,123

Prepayment from customers

131,408

131,408

131,408

Trade payables

1,045,134

-

-

1,045,134

1,045,134

Other liabilities

467,555

-

-

467,555

467,555

Non-derivative financial liabilities

2,790,995

90,519

4,345

2,885,859

2,853,812

Derivative financial liabilities

29,902

-

-

29,902

29,902

160

Bavarian Nordic Annual Report 2025

Note 23

Financial risks and financial instruments (continued)

Financial liabilities due within one year DKK 1,587 million (DKK 2,821 million) is expected to be settled with short term assets recognized as of December 31, 2025, consisting of cash and cash equivalents, securities together with trade receivables and other receivables to a total of DKK 4,175 million (DKK 3,394 million).

The financial liabilities due after one year, DKK 96 million (DKK 95 million) is expected to be settled with the excess short term assets of DKK 2,588 million (DKK 573 million) in conjunction with expected cash flow from future operations.

To further mitigate potential liquidity fluctuations, the Group obtained access to a Revolving Credit Facility of DKK 1,000 million in 2023. The facility was undrawn as of December 31, 2025.

With respect to the Group´s debt to credit institutions, a change in the applicable interest rate by 1 percentage point would have had an impact on the Group's net result and equity of DKK 0.1 million (DKK 0.1 million).

Debt to credit institutions is a mortgage loan of DKK 13 million (DKK 15 million), further described in note 25.

The Group has a credit facility of DKK 20 million (DKK 20 million) at Nordea. As of December 31, 2025, DKK 0.1 million (DKK 0.3 million) of the credit facility is utilized for bank guarantees.

Credit risks

The primary credit risk relates to trade receivables. The Company assesses the expected credit losses also

considering changes in the macro environment that might impose an increased risk of losses. The Group´s customers are predominantly public authorities and renowned pharmaceutical companies and wholesalers, and the credit risk on the Group's receivables is there-fore considered to be very low. A loss allowance of DKK 3.9 million (DKK 3.0 million) has been recognized as of December 31, 2025, cf. note 19.

To manage credit risk regarding financial counterpar-ties, Bavarian Nordic only enters into derivative finan-cial contracts, repurchase contracts and money market deposits with financial counterparties possessing a satisfactory long-term credit rating from at least two out of the three selected ratings agencies: Standard and Poor’s, Moody’s and Fitch.

Cash and cash equivalents are not deemed to be subject to any special credit risk as they are deposited with Nordea and Danske Bank. The bond portfolio is invested in either Danish government bonds, Danish mortgage bonds or bonds issued by Danish banks with high ratings.

Managing capital structure

The Group's definition of capital encompasses equity together with net interest-bearing debt. The 2023 addition of net interest-bearing debt to the capital defi-nition, did accommodate the introduction of external capital as a resource for the Group in accordance with the conclusion of a committed Revolving Credit Facility in 2023, see further below.

As of December 31, 2025 net interest-bearing debt consists of deferred consideration, cf. note 24, debt

to credit institutions, cf. note 25, lease liabilities, cf. note 27 with subtraction of cash and cash equivalents together with securities, that in total forms a net receivable of DKK 3,203 million (net receivable DKK 965 million).

Total equity as of December 31, 2025, amounted to DKK 12,870 million (DKK 11,409 million).

The Group obtained in 2023 access to a committed Revolving Credit Facility (RCF) of DKK 1,000 million with Nordea and Danske Bank as joint lenders. The facility was undrawn as of December 31, 2025 (undrawn as of December 31, 2024). As an integrated part of the RCF agreement, the Group is subject to covenant require-ments consisting of a net interest-bearing debt to EBITDA ratio. The Group regularly secures that compli-ance with the covenant is met.

Management regularly assesses whether the Group´s capital structure best serves the interests of the Group and its shareholders. The overall goal is to ensure that the Group has a capital structure which supports its long-term strategy and growth target. In supporting this goal and to maintain the capital structure, the Group can issue new shares, return capital to share-holders, sell assets to reduce debt or increase the groups debt obligations, including taking on bank debt and by way of deferred consideration, provided any financial covenants are respected.

Securities (level 1)

The portfolio of publicly traded government bonds, publicly traded mortgage bonds and bank bonds is valued at listed prices and price quotas.

Derivative financial instruments (level 2)

Currency forward contracts, currency option contracts and interest swap contracts are valued according to generally accepted valuation methods based on rele-vant observable swap curves and exchange rates.

161

Bavarian Nordic Annual Report 2025

Note 23

Financial risks and financial instruments (continued)

Fair value hierarchy for financial instruments measured at fair value

2025

DKK thousand

Level 1

Level 2

Total

Securities

1,619,004

-

1,619,004

Financial assets measured at fair value through the income statement

1,619,004

-

1,619,004

Derivative financial instruments to hedge future cash flow (currency)

-

9,658

9,658

Derivative financial instruments to hedge future cash flow (interest)

-

602

602

Financial assets/liabilities used as hedging instruments

-

10,260

10,260

2024

DKK thousand

Level 1

Level 2

Total

Securities

551,538

-

551,538

Financial assets measured at fair value through the income statement

551,538

-

551,538

Derivative financial instruments to hedge future cash flow (currency)

-

(29,902)

(29,902)

Derivative financial instruments to hedge future cash flow (interest)

-

698

698

Financial assets/liabilities used as hedging instruments

-

(29,204)

(29,204)

Note 24

Deferred consideration

Accounting policies

Deferred consideration including contingent milestone payments is recognized when its payment is probable and it can be measured reliably and is at initial recog-nition measured at fair value which equals present value of future deferred payments. Subsequently, the deferred consideration is measured at amortized cost. This means that the difference between the present value of the consideration and the nominal amounts

due is recognized in the income statement as a finan-cial expense over the period until expected payment date using the effective interest method.

The expected phasing of future payments and the probability of contingent payments are assessed on each reporting date and the impact is recognized as a financial item.

DKK thousand

Due within

1 year

Due between 1 and 5 year

Due after

5 years

Total

2024

Deferred consideration, product rights

731,520

-

-

731,520

Deferred consideration, development project

349,945

-

-

349,945

Total

1,081,465

-

-

1,081,465

Product rights

The Asset Purchase Agreement concluded with GSK in 2019 included milestone payments relating to transfer and registration of marketing authorizations, tech-nology transfer of different steps of the production and packaging activities as well as a milestone payment when all services agreed to be rendered by GSK has been completed. In total EUR 470 million. The Asset Purchase Agreement with GSK also included a sales milestone of EUR 25 million. As per December 31, 2025 all milestones have been achieved and invoiced by GSK. Payment for the completion milestone invoice is outstanding as per December 31, 2025 according to agreement, and is recognized as trade payables.

One technology transfer milestone and the completion milestone were achieved during 2025 and were recog-nized as cash flow from investment activities, in total DKK 100 million.

The carrying amount are measured using a discount rate of 4% per annum. The discount rate was deter-mined at intial recognition based on an interest rate on a similar loan of the same size and maturity as the contingent milestone payments and the Company's credit rating as of December 31, 2019.

The fair value of the deferred consideration as per December 31, 2024 amounted to DKK 725 million, measured using the updated discount rate of 5.97%.

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Bavarian Nordic Annual Report 2025

The discount rate was determined based on the same components as described above.

Development project

The Purchase and Sale Agreement concluded with Emergent BioSolutions in 2023 included four mile-stone payments relating to submission and approval of Biologics License Application (BLA) to FDA and Marketing Authorization Application to EMA for the chikungunya development asset. In total USD 80 million. In first half of 2025 the last two milestones totalling USD 50 million were achieved and recognized as cash flow from investment activities.

The carrying amount are measured using a discount rate of 6% per annum. The discount rate was deter-mined at intial recognition based on an interest rate on a similar loan of the same size and maturity as the

contingent milestone payments and the Company's credit rating as of May 15, 2023.

The fair value of the deferred consideration as per December 31, 2024 amounted to DKK 350 million, measured using the updated discount rate of 5.97%. The discount rate was determined based on the same components as described above.

The Purchase and Sale Agreement concluded with Emergent BioSolutions in May 2023 includes an earnout payment starting at USD 30 million. The earnout payment relates to sale of Vivotif and Vaxchora. As per December 31, 2025 Management does not judge the sales milestone to be probable and therefore the earnout payment has not been recognized as either part of the project rights (note 15) nor the deferred consideration.

Note 24

Deferred consideration (continued)

Note 25

Debt to credit institutions

Accounting policies

Loans are measured at the time of borrowing at fair value less any transaction costs. Subsequently, debt is measured at amortized cost. This means that the differ-ence between the proceeds of the loan and the amount

to be repaid is recognized in the income statement over the term of the loan as a financial expense using the effective interest method.

DKK thousand

Due within 1 year

Due between 1 and 5 year

Due after 5 years

Total

2025

Mortgage1

2,147

9,091

1,799

13,037

Total

2,147

9,091

1,799

13,037

2024

Mortgage1

2,074

8,869

4,184

15,127

Total

2,074

8,869

4,184

15,127

1Floating interest - swapped to fixed interest of 0.9625% - expiry 2031

The fair value of the debt to credit institutions amounts to DKK 13.0 million (DKK 15.1 million). The fair value of mortgage debt is based on the market value of the underlying bonds set by the bank (level 2).

The tables detail changes in the Group's liabilities arising from financing activities, both cash and

non-cash changes. Liabilities arising from financing activities are those for which cash flows were, or future cash flows will be, classified in the Group's consolidated statement of cash flow as cash flows from financing activities.

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Bavarian Nordic Annual Report 2025

Cash flow from financing activities

DKK thousand

January 1, 2025

Cash movement

Non-cash movement

December 31, 2025

2025

Mortgage

15,127

(2,090)

-

13,037

Lease liabilities

113,123

(40,813)

45,523

117,833

Total liabilities from financing activities

128,250

(42,903)

45,523

130,870

DKK thousand

January 1, 2024

Cash movement

Non-cash movement

December 31, 2024

2024

Mortgage

17,048

(1,921)

-

15,127

Lease liabilities

128,254

(41,639)

26,508

113,123

Total liabilities from financing activities

145,302

(43,560)

26,508

128,250

Note 25

Debt to credit institutions (continued)

Note 26

Retirement benefit obligations

Accounting policies

In defined contribution plans, the Group makes regular payments of fixed contributions to independent pension funds and insurance companies. The Group is under no obligation to pay additional contributions. Costs for defined contribution plans are recognized in the income statement as the Group assumes an obliga-tion to make the payment.

In defined benefit plans, the Group is under an obliga-tion to pay a defined benefit on retirement. The actuar-ially calculated present value less the fair value of any plan assets is recognized in the balance sheet under retirement benefit obligations. The total service costs of the year plus calculated interest based on actuarial estimates and financial assumptions at the beginning of the year are recognized in the income statement. The difference between the forecast development in plan assets and liabilities and the realized values at the end of the year is called actuarial gains or losses and is recognized in other comprehensive income. In connection with a change in benefits regarding the employees’ employment with the Group to date, there will be a change in the actuarial calculation of the net present value, which is taken directly to the income statement.

Defined contribution plans

The Group offers pension plans to all employees in Denmark and abroad. Most of the pension plans are defined contribution plans, expect for the pension plan in Bavarian Nordic Berna GmbH, see below. The Group funds the plans through regular payments of premiums to independent insurance companies responsible for the pension obligations towards the beneficiaries. Once the pension contributions for defined contribution plans have been made, the Group has no further obligation towards current or former employees. Contributions to defined contribution plans are recognized in the income statement when paid.

Defined benefit plans

The pension plan in Bavarian Nordic Berna GmbH is part of a collective foundation in which other plans of non-related employers also participate, and the different plans all participate in the various risks relating to the foundation.

Defined benefit liabilities are recognized in the balance sheet and in the income statement as indicated below.

Employees from Bavarian Nordic Switzerland AG was transferred to Bavarian Nordic Berna GmbH in August 2024 and were included in the pension plan as from December 31, 2024. The previous pension plan in Bavarian Nordic Switzerland AG was recognized as a contribution benefit plan and therefore no pension obligation was recognized. The net assets under the Bavarian Nordic Berna GmbH pension plan were adjusted in 2024 to include the transferred employees.

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Bavarian Nordic Annual Report 2025

DKK thousand

2025

2024

Defined contribution plans

91,456

84,966

Defined benefit plans

28,313

31,205

Cost of pension plans recognized in income statement

119,769

116,171

Current service cost

26,897

12,749

Past service cost

-

17,186

Administration expenses

431

309

Net interest expenses

985

961

Cost of defined benefit plans recognized in income statement

28,313

31,205

Actuarial gains/losses on pension obligations

4,449

(89,584)

Actuarial gains/losses on plan assets

31,656

72,194

Actuarial gains/losses on defined benefit plans recognized in other comprehensive income

36,105

(17,390)

Plan assets as of January 1

387,481

221,024

Exchange adjustments

4,897

(3,492)

Actual rate of interest

3,891

3,006

Actuarial gains/losses on plan assets

31,656

72,194

Administration expenses paid

(432)

(309)

Employer contributions

23,971

14,182

Employee contributions

13,781

9,358

Benefit paid out

10,624

29,582

Other restructuring events

-

41,936

Plan assets as of December 31

475,869

387,481

Note 26

Retirement benefit obligations (continued)

DKK thousand

2025

2024

Specification of present value of defined benefit obligation

Present value of defined benefit liability as of January 1

501,070

301,756

Exchange adjustments

6,037

(5,048)

Current service costs

26,897

12,749

Past service costs

-

17,186

Calculated interest on liability

4,875

3,967

Actuarial gains/losses, financial assumptions

(41,175)

17,250

Actuarial gains/losses, experience

36,726

72,334

Employee contributions

13,781

9,358

Benefit paid out

10,624

29,582

Other restructuring events

-

41,936

Present value of defined benefit liability as of December 31

558,835

501,070

Fair value of plan assets as of December 31

(475,869)

(387,481)

Net liability of defined benefit plans as of December 31

82,966

113,589

Net liability of defined benefit plans as of January 1

113,589

80,732

Expenditure for the year

28,313

31,205

Actuarial gains/losses on pension obligation

(4,449)

89,584

Exchange adjustment

1,140

(1,556)

Actuarial gains/losses on plan assets

(31,656)

(72,194)

Payments received

(23,971)

(14,182)

Net liability of defined benefit plans as of December 31

82,966

113,589

The contributions to the plan for 2026 are expected in the same level as in 2025.

165

Bavarian Nordic Annual Report 2025

Note 26

Retirement benefit obligations (continued)

DKK thousand

2025

2024

Percentage of plan assets invested in asset category

Equity

33.7%

33.5%

Bonds

25.1%

25.5%

Property

14.4%

13.6%

Other

26.8%

27.4%

Actuarial assumptions applied at the balance sheet date (expressed as an average)

Discount rate

1.35%

1.00%

Future rate of salary increases

1.60%

1.80%

Inflation

0.90%

1.10%

Assumptions regarding future mortality are set based on actuarial advice in accordance with published statistics and experience. These assumptions translate into an average life expectancy in years for a pensioner retiring at age 65 as follows:

Life expectancies

Retiring aged 65 at the end of the reporting period

Male

22.2

22.1

Female

24.0

23.9

Retiring aged 65, 20 years after the end of the reporting period

Male

24.2

24.1

Female

25.9

25.8

The below sensitivity analysis shows the change in one of the actuarial assumptions, while other assumptions are kept constant. In practice, this is unlikely to occur as changes in some of the assumptions may be correlated.

Percentage increase/decrease in the gross liability resulting from a change in a single actuarial assumption

DKK thousand

2025

2024

+0.5%-point

+0.5%-point

Discount rate

-7.7%

-7.7%

+1 year

+1 year

Life expectancy

1.6%

1.7%

166

Bavarian Nordic Annual Report 2025

Note 27

Lease liabilities

Accounting policies

The lease liability is initially measured at the present value of the future lease payments (see further in note 17), discounted by using an incremental country specific borrowing rate ranging from 4.8% to 6.93% applying only a single discount rate for a portfolio of lease assets with reasonable similar characteristics.

The lease liability is subsequently measured by increasing the carrying amount to reflect interest on the lease liability using the effective interest method and by reducing the carrying amount to reflect the lease payments made.

The lease liability is remeasured and corresponding adjustments are made to the related right-of-use-asset whenever:

The lease term has changed, in which case the lease liability is remeasured by discounting the revised lease payments using a revised discount rate.

The lease payments change due to changes in an index or rate, in which case the lease liability is remeasured by discounting the revised lease payments using an unchanged discount rate.

A lease contract is modified and the lease modifica-tion is not accounted for as a separate lease, in which case the lease liability is remeasured based on the lease term of the modified lease by discounting the revised lease payments using a revised discount rate at the effective date of the modification.

DKK thousand

2025

2024

Non-current

74,462

73,653

Current

43,371

39,470

Lease liabilities

117,833

113,123

DKK thousand

Due within 1 year

Due between 1 and 5 year

Due after 5 years

Total

2025

Lease liabilities

43,371

60,433

14,029

117,833

Total

43,371

60,433

14,029

117,833

2024

Lease liabilities

39,470

73,653

-

113,123

Total

39,470

73,653

-

113,123

Note 28

Prepayment from customers

Accounting policies

Prepayments are recognized under liabilities and will be recognized in the income statement as the delivery of paid products takes place.

DKK thousand

2025

2024

Prepayment from customers as of January 1

131,408

-

Prepayments received during the year

-

131,408

Recognized as revenue during the year

(121,459)

-

Prepayment from customers as of December 31

9,949

131,408

As of December 31, 2025, the majority of prepayments from customers were received from CEPI for multiple clinical studies.

The recognition of revenue is described in note 3.

167

Bavarian Nordic Annual Report 2025

Note 29

Share-based payment

Accounting policies

Share-based incentive plans in which employees can only opt to buy shares in the Company (warrants) are measured at the equity instruments’ fair value at the grant date and recognized in the income statement over the three-year vesting period. The balancing item is recognized directly in equity. The fair value on the date of grant is determined using the Black-Scholes model.

Restricted stock units and performance restricted stock units are measured at fair value at grant date.

For Executive Management cash bonus converted to restricted stock units, the number of restricted stock units are calculated by dividing the allocated cash bonus amount by the share price of the Company at grant date. As the cash bonus has already been accrued and expensed in the income statement, the grant of restricted stock units has no additional impact on the income statement. The accrued liability for the converted cash bonus is reclassified to equity. Matching shares are measured at the same fair value as the initial restricted stock units and expensed over the three year vesting period. The balancing item is recog-nized directly in equity.

Performance restricted stock units granted to Execu-tive Management as part of their long-term incentive scheme are expensed over the three-year vesting period with the balancing item recognized directly in equity. Vesting is subject to achievement of certain Key Performance Indicators (“KPIs”) as determined by the

Board of Directors. Achievements of KPI's is assessed annually and costs related to not awarded warrants are reversed.

Restricted stock units granted as sign-on bonus for members of the Executive Management and restricted stock units granted to the Board of Directors are expensed at grant date with the balancing item recog-nized directly in equity.

Incentive plans

In order to motivate and retain key employees and encourage the achievement of common goals for employees, management and shareholders, the Company has established incentive plans by way of warrant programs and restricted stock units programs, the latter only for members of the Executive Manage-ment and Board of Directors.

Warrants

The Board of Directors has been granting warrants to the Company´s management and selected employees of the Company and its subsidiaries.

The warrants are granted in accordance with the authorizations given to the Board of Directors by the shareholders. The Board of Directors has fixed the terms of and the size of the grants of warrants, taking into account authorizations from the shareholders, the Group's guidelines for incentive pay, an assessment of expectations of the recipient´s work efforts and contri-bution to the Group´s growth, as well as the need to

motivate and retain the recipient. Grant takes place on the date of establishment of the program. Exercise of warrants is by default subject to continuing employ-ment with the Group. The warrants granted are subject to the provisions of the Danish Public Companies Act regarding termination of employees prior to their exercise of warrants in the case of recipients who are subject to the act.

For warrants granted to Executive Management in December 2022 and onwards, vesting is subject to achievement of certain Key Performance Indicators (“KPIs”) as determined by the Board of Directors. Number of granted warrants are adjusted on an annual basis based on performance. The recognized costs are adjusted accordingly. Executive Management was not granted warrants in 2025.

168

Bavarian Nordic Annual Report 2025

Note 29

Share-based payment (continued)

Warrant overview – 2025

Outstanding as of January 1

Additions

Exercised

Annulled

Terminated

Outstanding as of December 31

Can be exercised as of December 31

Average exercise price (DKK)

November 2020

811,014

-

(363,156)

(2,315)

(445,543)

-

-

207

November 2021

610,463

-

-

(6,079)

-

604,384

604,384

353

April 2022

81,872

-

(18,715)

-

-

63,157

63,157

190

December 2022

832,394

-

-

(48,896)

-

783,498

-

225/271

December 2023

1,143,379

-

-

(145,394)

-

997,985

-

172/192

December 2024

1,156,783

-

-

(115,012)

-

1,041,771

-

199/223

December 2025

-

1,254,969

-

-

-

1,254,969

-

217

Total

4,635,905

1,254,969

(381,871)

(317,696)

(445,543)

4,745,764

667,541

Warrant overview – 2025

Outstanding as of January 1

Additions

Exercised

Annulled

Terminated

Transferred

Outstanding as of December 31

Corporate Management

608,132

-

-

-

(179,855)

-

428,277

Other Executive Management

385,387

-

-

-

(47,970)

(98,508)

238,909

Other employees

3,098,689

1,254,969

(189,549)

(317,696)

(80,845)

(276,669)

3,488,899

Resigned employees

543,697

-

(192,322)

-

(136,873)

375,177

589,679

Total

4,635,905

1,254,969

(381,871)

(317,696)

(445,543)

-

4,745,764

Weighted average exercise price (DKK)

234

217

206

218

207

-

235

Weighted average share price at exercise (DKK)

237

Number of warrants which can be exercised as of December 31, 2025

667,541

at a weighted average exercise price of DKK

338

169

Bavarian Nordic Annual Report 2025

Warrant overview – 2024

Outstanding as of January 1

Additions

Exercised

Annulled

Terminated

Transferred

Outstanding as of December 31

Corporate Management

669,064

80,839

(141,771)

-

-

-

608,132

Other Executive Management

484,041

37,435

(7,039)

-

-

(129,050)

385,387

Other employees

2,916,601

1,038,509

(404,904)

(271,626)

(2,916)

(176,975)

3,098,689

Resigned employees

451,209

-

(203,309)

-

(10,228)

306,025

543,697

Total

4,520,915

1,156,783

(757,023)

(271,626)

(13,144)

-

4,635,905

Weighted average exercise price (DKK)

226

221

167

223

147

-

234

Weighted average share price at exercise (DKK)

241

Number of warrants which can be exercised as of December 31, 2024

811,014

at a weighted average exercise price of DKK

207

Specification of parameters for Black-Scholes model

Nov. 2020

Nov. 2021

Apr. 2022

Dec. 20223

Dec. 20233

Dec. 20243

Dec. 2025

Average share price

179.84

307.20

171.35

224.70

172.40

198.90

188.00

Average exercise price at grant

206.82

353.06

190.11

270.91

191.58

223.33

216.50

Average exercise price at grant – Executive Management

224.70

172.40

198.90

Applied volatility rate2

39.8%

41.8%

42.3%

46.6%

53.3%

57.7%

57.1%

Expected life (years)

3.0

3.0

3.0

3.0

3.0

3.0

3.0

Expected dividend per share

-

-

-

-

-

-

-

Risk-free interest rate p.a.

-0.66%

-0.53%

0.39%

2.04%

2.55%

1.65%

2.00%

Fair value per share at grant1

41

76

47

64

62

75

70

Fair value per share at grant – Executive Management1

78

68

82

Recognized costs in 2025 DKK 61.3 million compared to DKK 57.0 million in 2024.

1Fair value of each warrant at grant date applying the Black-Scholes model

2The applied volatility is based on the volatility for a peer group.

3The December 2022, December 2023 and December 2024 program have two set of exercise conditions. Executive Manage-ment can subscribe future shares at a exercise price of DKK 224.70/172.40/198.90 per share equivalent to the market price of Bavarian Nordic's shares at the time of grant. Vesting of the warrants is subject to prior fulfilment of KPI's as determined by the Board of Directors. Other employees can subscribe future shares at a exercise price of DKK 270.91/191.58/223.33 per share, determined as the average market price (closing price) of the Company's shares on Nasdaq Copenhagen over a period of 15 business days prior to grant plus 15%.

Note 29

Share-based payment (continued)

170

Bavarian Nordic Annual Report 2025

Note 29

Share-based payment (continued)

Exercise periods

Can be exercised wholly or partly in a period of 14 days commencing from the day of publication of:

December 2025

Annual Report 2028

Interim Report Q1 2029

Interim Report Q2 2029

Interim Report Q3 2029

Annual Report 2029

Interim Report Q1 2030

Interim Report Q2 2030

Interim Report Q3 2030

December 2024

Annual Report 2027

Interim Report Q1 2028

Interim Report Q2 2028

Interim Report Q3 2028

Annual Report 2028

Interim Report Q1 2029

Interim Report Q2 2029

Interim Report Q3 2029

December 2023

Annual Report 2026

Interim Report Q1 2027

Interim Report Q2 2027

Interim Report Q3 2027

Annual Report 2027

Interim Report Q1 2028

Interim Report Q2 2028

Interim Report Q3 2028

December 2022

Annual Report 2025

Interim Report Q1 2026

Interim Report Q2 2026

Interim Report Q3 2026

Annual Report 2026

Interim Report Q1 2027

Interim Report Q2 2027

Interim Report Q3 2027

April 2022

Interim Report Q2 2025

Interim Report Q3 2025

Annual Report 2025

Interim Report Q1 2026

Interim Report Q2 2026

Interim Report Q3 2026

Annual Report 2026

Interim Report Q1 2027

November 2021

Annual Report 2024

Interim Report Q1 2025

Interim Report Q2 2025

Interim Report Q3 2025

Annual Report 2025

Interim Report Q1 2026

Interim Report Q2 2026

Interim Report Q3 2026

Restricted stock units

In March 2025, the Board of Directors decided to post-pone the payment of half of the achieved cash bonus for members of the Executive Management for 3 years, converting the postponed bonus of DKK 10.2 million into 59,762 unconditional restricted stock units using the share price of the Company at grant date (DKK 172). The Board of Directors decided to grant addi-tional restricted stock units free of charge on expiry of a 3 years period (so-called "matching shares") upon the recipient still being employed in March 2028. One matching share is granted for each two acquired restricted stock units. The maximum number of matching shares is 29,879. The initial granted restricted stock units and the potential matching shares total 89,641 shares.

At the annual general meeting in April 2024, the Board of Directors were granted a total of 7,754 unconditional restricted stock units corresponding to 50% of the annual fixed fee of DKK 1.9 million (excl. committee fee). The restricted stock units will be delivered after 3 years in May 2028.

In December 2025, Executive Management was granted 104,009 performance restricted stock units with a total value of DKK 20 million.

In January 2025, the Company bought back 760,275 of its own shares for the purpose of adjusting the capital structure and meeting the long-term obliga-tions relating to the Company’s share-based incentive programs for the Board of Directors and Executive Management.

171

Bavarian Nordic Annual Report 2025

Outstanding restricted stock units

2025

Outstanding as of January 1

Granted during the year

Released during the year

Outstanding as of December 31

Value at grant date (DKK)

Vesting date

Executive Management:

Performance restricted stock units 2025

-

104,009

-

104,009

188

Mar. 2029

Conversion of cash bonus for 2024

-

59,762

-

59,762

172

Mar. 2028

Matching shares - bonus 2024

-

29,879

-

29,879

172

Mar. 2028

Performance restricted stock units 2024

46,700

-

-

46,700

194

Mar. 2028

Conversion of cash bonus for 2023

58,034

-

-

58,034

163

Mar. 2027

Matching shares - bonus 2023

29,015

-

-

29,015

163

Mar. 2027

Performance restricted stock units 2023

61,602

-

-

61,602

167

Mar. 2027

Conversion of cash bonus for 2022

22,429

-

-

22,429

227

Mar. 2026

Matching shares - bonus 2022

11,213

-

-

11,213

227

Mar. 2026

Conversion of cash bonus for 2021

22,578

-

(22,578)

-

163

Mar. 2025

Matching shares - bonus 2021

11,288

-

(11,288)

-

163

Mar. 2025

CEO retention plan

17,109

-

(17,109)

-

156

May 2025

Matching shares - CEO retention plan

8,554

-

(8,554)

-

156

May 2025

Sign-on bonus COO

4,446

-

(4,446)

-

165

May 2025

Matching shares - sign-on COO

2,223

-

(2,223)

-

165

May 2025

Executive Management

295,191

193,650

(66,198)

422,643

Board of Directors:

Fee 2025

-

7,864

-

7,864

238

May 2028

Fee 2024

13,637

-

-

13,637

152

May 2027

Fee 2023

10,640

-

-

10,640

194

May 2026

Fee 2022

11,467

-

(11,467)

-

153

May 2025

Board of Directors

35,744

7,864

(11,467)

32,141

Total

330,935

201,514

(77,665)

454,784

The grant of the initial restricted stock units to the Exec-utive Management related to conversion of cash bonus (59,762 shares) had no impact on the income statement for 2025, as the corresponding cash bonus (DKK 10.2 million) was accrued in 2024, though the amount has been reclassified from "Salary and wages" to "Share-based payment" in the staff cost note (note 8). The obli-gation related to the matching shares amount to DKK 5.1 million measured at the same fair value as the initial restricted stock units (DKK 172). The obligation will be expensed over the three year vesting period.

The grant of performance restricted stock units to the Executive Management (104,009 shares) will be expensed over the three year vesting period.

During 2025, DKK 21.3 million (DKK 19.6 million) has been expensed and recognized as share-based payment related to Executive Management.

The grant of restricted stock units to the Board of Directors (7,864 shares - DKK 1.9 million) were fully expensed at grant.

Note 29

Share-based payment (continued)

172

Bavarian Nordic Annual Report 2025

Note 29

Share-based payment (continued)

Outstanding restricted stock units

2024

Outstanding as of January 1

Granted during the year

Released during the year

Outstanding as of December 31

Value at grant date (DKK)

Vesting date

Executive Management:

Performance restricted stock units 2024

-

46,700

-

46,700

194

Mar. 2028

Conversion of cash bonus for 2023

-

58,034

-

58,034

163

Mar. 2027

Matching shares - bonus 2023

-

29,015

-

29,015

163

Mar. 2027

Performance restricted stock units 2023

61,602

-

-

61,602

167

Mar. 2027

Conversion of cash bonus for 2022

22,429

-

-

22,429

227

Mar. 2026

Matching shares - bonus 2022

11,213

-

-

11,213

227

Mar. 2026

Conversion of cash bonus for 2021

22,578

-

-

22,578

163

Mar. 2025

Matching shares - bonus 2021

11,288

-

-

11,288

163

Mar. 2025

CEO retention plan

17,109

-

-

17,109

156

May 2025

Matching shares - CEO retention plan

8,554

-

-

8,554

156

May 2025

Sign-on bonus COO

4,446

-

-

4,446

165

May 2025

Matching shares - sign-on COO

2,223

-

-

2,223

165

May 2025

Conversion of cash bonus for 2020

16,413

-

(16,413)

-

222

Mar. 2024

Matching shares - bonus 2020

8,207

-

(8,207)

-

222

Mar. 2024

Executive Management

186,062

133,749

(24,620)

295,191

Board of Directors:

Fee 2024

-

13,637

-

13,637

152

May 2027

Fee 2023

10,640

-

-

10,640

194

May 2026

Fee 2022

11,467

-

-

11,467

153

May 2025

Fee 2021

7,127

-

(7,127)

-

273

Apr. 2024

Board of Directors

29,234

13,637

(7,127)

35,744

Total

215,296

147,386

(31,747)

330,935

173

Bavarian Nordic Annual Report 2025

Total share-based payments

Below a specification of all share-based payments expensed in 2025 and 2024. The amounts reconcile to note 8.

DKK thousand

2025

2024

Warrants

61,323

56,958

Restricted stock units

23,163

21,707

Share-based payment recognized directly in equity

84,486

78,665

Phantom share program

-

7

Share-based payment recognized as a liability (change during the year)

-

7

Total share-based payment expensed, cf. note 8

84,486

78,672

Non-cash adjustment in cash flow statement

84,486

78,672

Note 30

Contingent liabilities and other contractual obligations

No contingent liabilities exist as per December 31, 2025

Earnout to Emergent

The Purchase and Sale Agreement concluded with Emergent BioSolutions in May 2023 includes an earnout payment starting at USD 30 million. The earnout payment relates to sale of Vivotif and Vaxchora. As per December 31, 2025 Management does not judge the sales milestone to be probable and therefore the earnout payment has not been recognized as either part of the project rights (note 15) nor the deferred consideration (note 24).

License agreements National Cancer Institute

The Group has license agreements with the National Cancer Institute (NCI) and Public Health Service (PHS) in the U.S. for PROSTVAC, CV301 and BN-Brachyury, respec-tively. The agreements include contingent liabilities for the Group to pay performance-based royalties, if and when certain milestone events are achieved. Further, the agreements include potential contingent liabilities

for the Group to pay additional sublicensing royalties on the fair market value of consideration received, if and when the Group grants such sublicenses. Payments considered remote are not included in the amounts above.

Company mortgage

The Company has by letter of indemnity granted Nordea a floating charge on unsecured claims arising from the sale of goods and services and stocks of raw materials, intermediate products and finished products, DKK 150 million (DKK 150 million). The floating charge secures the operating credit line of DKK 20 million and the line for trading in financial instruments, DKK 50 million (DKK 50 million).

Lawsuits

Based on management's assessment the Group is not involved in any lawsuits or arbitration cases which could have a material impact on the Group's financial position or results of operations.

Note 29

Share-based payment (continued)

DKK thousand

2025

2024

Collaborative agreements

Contractual obligations with research (CRO) and manufacturing (CMO) partners.

- Due within 1 year

118,368

139,183

174

Bavarian Nordic Annual Report 2025

Note 31

Related party transactions

The Group Management and Board of Directors of Bavarian Nordic A/S are considered related parties.

Besides the remuneration of the Board of Directors and the Executive Management, cf. note 8, and the share-based payments, cf. note 29, there are no transactions with related parties.

Transactions with subsidiaries are eliminated in the consolidated financial statements, in accordance with the accounting policies.

Note 32

Significant events after the balance sheet date

On January 7, 2026, the Company announced the launch of the first tranche of a planned share buy-back program for up to DKK 500 million during 2026. The first tranche comprised buy-back of shares for up to DKK 150 million and was completed on February 9, 2026, after buy-back of 764,558 shares for a total value of DKK 150 million. The shares will be held as treasury stock for the purpose of adjusting the capital structure.

On January 23, 2026, the Company announced an agreement with Eurofarma, granting them exclusive rights to sell and distribute Bavarian Nordic’s chikun-gunya vaccine in Brazil. Eurofarma was also granted the right of first refusal for any future opportunity to register and commercialize the chikungunya vaccine in the rest of Latin America.

On February 18, 2026, the Company announced a new order valued at USD 22.5 million from the Public Health Agency of Canada (PHAC) for the Company’s mpox and smallpox vaccine.

On March 2, 2026, the Company announced that the Board of Directors had entered into an agreement

with CEO, Paul Chaplin, who wishes to step down for personal reasons. Paul Chaplin will continue in his role for the remainder of 2026, or until a successor has been identified. The Board of Directors has initiated the process to identify a new CEO.

On March 11, 2026, the Company announced an expansion of the strategic partnership with Serum Institute of India to include a contract manufacturing agreement covering a full tech transfer of the manu-facturing process for the chikungunya vaccine from Bavarian Nordic to SII to allow for scaling of capacity to enable future supply to endemic low- and middle-in-come countries. This replaces the agreement previously entered with Biological E. Limited.

Except as noted above, there have been no significant events between December 31, 2025, and the date of approval of these financial statements that would require a change to or additional disclosure in the financial statements.

Note 33

Approval of the consolidated financial statements

The consolidated financial statements were approved by the Board of Directors and Corporate Management and authorized for issue on March 12, 2026.

175

Bavarian Nordic Annual Report 2025

Income statement

For the years ended December 31, 2025 and 2024

DKK thousand

Note

2025

2024

Revenue

2

6,065,268

5,684,020

Production costs

4,5

3,293,535

2,886,066

Gross profit

2,771,733

2,797,954

Sales and distribution costs

4

450,388

333,482

Research and development costs

3,4,5

880,150

967,885

Administrative costs

4,5,6

560,022

529,951

Total operating costs

1,890,560

1,831,318

Other operating income

1,032,896

-

Other operating expenses

222,808

-

Other operating income

810,088

-

Income before interest and tax (EBIT)

1,691,261

966,636

Income from investments in subsidiaries

13

128,264

(13,432)

Financial income

7

54,663

150,167

Financial expenses

8

111,842

138,625

Income before company tax

1,762,346

964,746

Tax on income for the year

9

388,047

-

Net result for the year

21

1,374,299

964,746

Note

Notes with reference to the consolidated financial statements

Revenue

3

Research and development costs

6

Staff costs

8

Production costs

4

Sales and distribution costs

5

Administrative costs

7

177

Bavarian Nordic Annual Report 2025

Statement of financial position – Assets

December 31, 2025 and 2024

DKK thousand

Note

2025

2024

Non-current assets

Product rights

5,570,541

4,660,426

Acquired rights and development in progress

-

1,286,782

Developed production processes

306,133

343,619

Software

21,196

18,875

Other intangible assets in progress

57,287

16,188

Intangible assets

10

5,955,157

6,325,890

6,325,890

Land and buildings

597,801

630,561

Leasehold improvements

1,492

2,230

Plant and machinery

278,418

337,442

Other fixtures and fittings, other plant and equipment

408,181

436,841

Assets under construction

49,382

102,191

Property, plant and equipment

11

1,335,274

1,509,265

Right-of-use assets

12

35,897

45,289

Investments in subsidiaries

13

650,670

814,897

Other receivables

49,663

280

Other financial non-current assets

8,369

6,850

Financial assets

708,702

822,027

Total non-current assets

8,035,030

8,702,471

DKK thousand

Note

2025

2024

Current assets

Inventories

14

2,190,187

2,117,790

Trade receivables

439,037

881,960

Receivables from subsidiaries

525,701

356,853

Tax receivables

13,314

-

Other receivables

48,039

33,140

Prepayments

45,702

93,512

Receivables

1,071,793

1,365,465

Securities

1,619,004

551,538

Cash and cash equivalents

1,553,375

1,519,200

Securities, cash and cash equivalents

3,172,379

2,070,738

Total current assets

6,434,359

5,553,993

Total assets

14,469,389

14,256,464

178

Bavarian Nordic Annual Report 2025

Statement of financial position – Equity and liabilities

December 31, 2025 and 2024

DKK thousand

Note

2025

2024

Equity

Share capital

792,367

788,548

Treasury shares

(9,669)

(2,843)

Retained earnings

11,819,690

10,434,216

Reserve for development costs

21,198

18,471

Other reserves

244,794

169,363

Equity

12,868,380

11,407,755

Liabilities

Deferred consideration

307,073

-

Credit institutions

10,890

13,045

Lease liabilities

15

23,419

32,658

Non-current liabilities

341,382

45,703

Deferred consideration

-

1,081,465

Credit institutions

2,147

2,074

Lease liabilities

15

14,917

14,694

Prepayment from customers

16

9,949

131,408

Trade payables

821,829

878,551

Payables to subsidiaries

94,198

421,312

Other liabilities

17

316,587

273,502

Current liabilities

1,259,627

2,803,006

Total liabilities

1,601,009

2,848,709

Total equity and liabilities

14,469,389

14,256,464

Note

Notes with reference to the consolidated financial statements

Trade receivables

19

Prepayments

21

Financial risks and financial instruments

23

Deferred consideration for product rights

24

Debt to credit institutions

25

Prepayment from customers

28

Share-based payment

29

179

Bavarian Nordic Annual Report 2025

Statement of changes in equity

December 31, 2025

DKK thousand

Share capital

Treasury shares

Retained earnings

Reserve for development costs

Other reserves

Equity

Equity as of January 1, 2025

788,548

(2,843)

10,434,216

18,471

169,363

11,407,755

Net result for the year

-

-

1,374,299

-

-

1,374,299

Exchange rate adjustments

-

-

31,466

-

-

31,466

Change in fair value of financial instruments entered into to hedge future cash flows

-

-

-

-

39,463

39,463

Tax on equity postings

-

-

-

-

(2,124)

(2,124)

Share-based payment

-

-

-

-

84,486

84,486

Warrant program exercised

3,819

-

90,604

-

(15,757)

78,666

Warrant recharged

-

-

4,528

-

-

4,528

Warrant program expired

-

-

18,263

-

(18,263)

-

Costs related to issue of new shares

-

-

(38)

-

-

(38)

Purchase of treasury shares

-

(7,603)

(142,518)

-

-

(150,121)

Transfer regarding restricted stock units

-

777

11,597

-

(12,374)

-

Reserve for development costs

-

-

(2,727)

2,727

-

-

Equity as of December 31, 2025

792,367

(9,669)

11,819,690

21,198

244,794

12,868,380

Transactions on the share capital and rules on changing Articles of Associations, see statement of changes in Group equity.

Other reserves consist of costs for share-based payments and hedging reserves.

180

Bavarian Nordic Annual Report 2025

Note 1

Material accounting policies and key accounting estimates and judgments

Accounting policies

The financial statements of the Parent Company Bavarian Nordic A/S have been prepared in accordance with the Danish Financial Statements Act (Class D).

The financial statements are presented in Danish kroner (DKK), which also is the functional currency of the Parent Company. The accounting policies are unchanged from previous year.

Changes in accounting policies

The accounting policies are unchanged from last year.

Supplementary accounting policies for the Parent Company

Accounting policies for investments in subsidiaries are described in note 13.

Pursuant to the schedule requirements of the Danish Financial Statements Act, entries recognized in the

statement of comprehensive income in the consol- idated financial statements are recognized directly in the statement of changes in equity in the Parent Company’s financial statements.

Warrant recharged to subsidiaries is treated as the Parent Company’s issuance of equity in exchange for cash.

The recharge is subsequently recognized in the income statement under the cost plus agreements with the subsidiaries. Income tax effects relating to warrant recharged is recognized in the income statement.

As allowed under section 86 (4) of the Danish Finan- cial Statements Act, no cash flow statement has been prepared for the Parent Company, as it is included in the consolidated cash flow statement.

Note 2

Revenue

Accounting policies and significant accounting estimates

See consolidated financial statements note 3.

DKK thousand

2025

2024

Travel health

Rabipur/RabAvert

1,776,243

1,322,648

Encepur

600,381

511,258

Vivotif

95,943

87,943

Vaxchora

22,655

46,228

Vimkunya

139,456

-

Other product sale

225,591

187,089

2,860,269

2,155,166

Public preparedness

Mpox/smallpox vaccine sale

3,029,484

3,305,435

Sale of goods

5,889,753

5,460,601

Contract work

175,515

223,419

Sale of services

175,515

223,419

Revenue

6,065,268

5,684,020

Total revenue includes:

Fair value adjustment concerning financial instruments entered into to hedge revenue

72,931

5,486

For further disclosures see the consolidated financial statements note 3.

181

Bavarian Nordic Annual Report 2025

Notes

Note 3

Research and development costs

Accounting policies

See consolidated financial statements note 6.

DKK thousand

2025

2024

Research and development costs incurred this year

1,004,146

1,120,251

Of which:

Contract costs recognized as production costs

(123,996)

(152,366)

Research and development costs recognized in the income statement

880,150

967,885

Note 4

Staff costs

Accounting policies

See consolidated financial statements note 8.

DKK thousand

2025

2024

Wages and salaries

812,366

694,317

Contribution based pension

68,420

59,192

Social security expenses

8,444

5,247

Other staff expenses

55,622

53,817

Share-based payment

84,485

78,672

Staff costs

1,029,337

891,245

Staff expenses are distributed as follows:

Production costs

705,960

579,931

Sales and distribution costs

22,106

22,006

Research and development costs

52,635

56,248

Administrative costs

246,533

233,060

Capitalized salaries

2,103

-

Staff costs

1,029,337

891,245

Average number of employees converted to full-time

986

891

Number of employees as of December 31 converted to full-time

1,027

956

182

Bavarian Nordic Annual Report 2025

DKK thousand

2025

2024

Staff costs include the following costs:

Board of Directors:

Remuneration

6,593

6,490

Share-based payment

1,869

2,070

Remuneration to Board of Directors

8,462

8,560

Executive Management:

Salary

18,621

19,747

Paid bonus

8,512

12,133

Other employee benefits

980

953

Contribution based pension

2,555

2,696

Share-based payment

26,842

25,929

Salary and benefits in notice period

-

6,671

Remuneration to Executive Management

57,510

68,129

Total management remuneration

65,972

76,689

Note 4

Staff costs (continued)

Executive Management constitute CEO and President Paul Chaplin and CFO Henrik Juuel (constitute the Corporate Management in the Parent Company) and COO Russell Thirsk. CPO Anu Kerns resigned beginning of 2025. Salary and benefits in the notice period was accrued in 2024.

Incentive programs for management and other employees are disclosed in the consolidated financial statements note 29.

The CEO's contract of employment contains standard terms for members of the management of Danish listed companies, including the extended period of notice that both parties are required to give. For the Company, the notice is maximum 18 months. In the event of a change of control, the term of notice for the Company may be extended to maximum 24 months.

183

Bavarian Nordic Annual Report 2025

Note 5

Depreciation, amortization and impairment losses

DKK thousand

2025

2024

Depreciation and amortization included in:

Production costs

588,101

485,294

Research and development costs

4,573

2,443

Administrative costs

24,990

22,206

Depreciation and amortization

617,664

509,943

Hereof profit ()/loss from disposed fixed assets

18,337

(80)

Impairment losses included in:

Production costs

23,155

-

Administrative costs

601

-

Impairment losses

23,756

-

For further disclosures see the consolidated financial statements note 9.

Note 6

Fees to auditor appointed at the annual general meeting

DKK thousand

2025

2024

Audit of financials statements

2,387

2,045

Other assurance services

1,252

1,800

Other services

94

60

Fees

3,733

3,905

184

Bavarian Nordic Annual Report 2025

Note 8

Financial expenses

Note 7

Financial income

Accounting policies

See consolidated financial statements note 11.

DKK thousand

2025

2024

Financial income from bank and deposit contracts

34,569

48,097

Financial income from subsidiaries

5,925

3,516

Financial income from securities

14,169

27,359

Fair value adjustments on securities

-

7,831

Net foreign exchange gains

-

63,364

Financial income

54,663

150,167

Accounting policies

See consolidated financial statements note 12.

DKK thousand

2025

2024

Interest expenses on debt

2,823

2,919

Financial expenses to subsidiaries

16,011

22,418

Fair value adjustments on securities

6,932

-

Unwinding of the discount related to deferred consideration

5,001

72,682

Adjustment of deferred consideration due to change in estimated timing of payments

16,453

7,090

Currency adjustment deferred consideration

2,324

24,899

Financial expenses, other

6,958

8,617

Net foreign exchange losses

55,340

-

Financial expenses

111,842

138,625

185

Bavarian Nordic Annual Report 2025

Note 9

Tax for the year

Accounting policies

See consolidated financial statements note 13.

DKK thousand

2025

2024

Tax recognized in the income statement

Current tax on profit for the year

83,017

-

Current tax on profit for previous years

81

-

Current tax

83,098

-

Change in deferred tax

304,949

-

Deferred tax

304,949

-

Tax for the year recognized in the income statement

388,047

-

Tax on income for the year is explained as follows:

Income before company tax

1,762,346

964,746

Calculated tax (22.0%) on income before company tax

387,716

212,244

Calculated tax (22.0%) on income before company tax

Tax effect on:

Income from investments in subsidiaries

(28,218)

2,955

Income()/expenses that are not taxable/deductible for tax purposes

8,417

4,755

Special tax credit

(9,636)

(12,321)

Current tax on profit for previous years

81

-

Paid tax in other jurisdictions

29

-

Change in non-recognized tax asset

29,658

(207,633)

Tax on income for the year

388,047

-

Tax recognized in equity

Tax on change in fair value of financial instruments entered into to hedge future cash flows

2,124

-

Tax for the year recognized in equity

2,124

-

'Income()/expenses that are not taxable/deductible for tax purposes' are primarily deduction limitations on 'Management salaries'.

'Special tax credit' primarily relates to the 8% step up deduction on research and development costs according to Section 8B of the Danish Tax Assessment Act.

Deferred tax

Deferred tax balances relate to temporary differences between the tax base and accounting carrying amount and tax losses carried forward.

Deferred tax assets arising from temporary deductible differences and tax losses carried forward are recog- nized to the extent they are expected to be offset against future taxable income. Management estimates future income according to budgets and forecasts for the coming years.

DKK thousand

January 1, 2025

Adjustment to previous year

Recognized in the income statement

Recognized in equity

December 31, 2025

Product rights

(177,960)

-

(132,829)

-

(310,789)

Acquired rights

(177,395)

-

(9,661)

-

(187,056)

Property, plant and equipment

65,857

(1,058)

(6,806)

-

57,993

Right-of-use-asset

454

-

83

-

537

Development projects for sale

19,443

-

(6,502)

-

12,941

Receivables

443

-

65

-

508

Provisions

1,540

-

7,040

-

8,580

Financial instruments

6,425

153

-

(8,702)

(2,124)

Share-based payment

45,183

(37,308)

2,383

-

10,258

Tax losses carried forward

433,255

(635)

(129,064)

-

303,556

Not recognized tax asset

(217,245)

38,848

(29,658)

6,578

(201,477)

Recognized deferred tax liability

-

-

(304,949)

(2,124)

(307,073)

For further disclosures see the consolidated financial statements note 13.

186

Bavarian Nordic Annual Report 2025

Note 10

Intangible assets

Accounting policies

See consolidated financial statements note 15.

2025

DKK thousand

Product rights

Acquired rights and development in progress

Developed Production Process

Software

Other intangible assets in progress

Total

Costs as of January 1, 2025

6,094,710

1,286,782

374,857

123,126

16,188

7,895,663

Additions

-

-

-

-

45,143

45,143

Transfer

1,286,782

(1,286,782)

-

11,710

(11,710)

-

Transfer to/from property, plant and equipment

-

-

-

-

7,666

7,666

Disposal

-

-

-

(34,873)

-

(34,873)

Cost as of December 31, 2025

7,381,492

-

374,857

99,963

57,287

7,913,599

Amortization as of January 1, 2025

1,434,284

-

31,238

104,251

-

1,569,773

Amortization

376,667

-

37,486

9,139

-

423,292

Disposals

-

-

-

(34,623)

-

(34,623)

Amortization as of December 31, 2025

1,810,951

-

68,724

78,767

-

1,958,442

Carrying amount as of December 31, 2025

5,570,541

-

306,133

21,196

57,287

5,955,157

Carrying amount as of December 31, 2024

4,660,426

1,286,782

343,619

18,875

16,188

6,325,890

187

Bavarian Nordic Annual Report 2025

Note 11

Property, plant and equipment

Accounting policies

See consolidated financial statements note 16.

2025

DKK thousand

Land and buildings

Leasehold improvement

Plant and machinery

Other fixtures and fittings, other plant and equipment

Assets under construction

Total

Costs as of January 1, 2025

945,684

6,335

624,906

592,906

102,191

2,272,022

Additions

-

-

-

7,876

55,639

63,515

Transfer

13,579

85

41,376

14,150

(69,190)

-

Transfer to/from intangible assets

347

-

-

-

(8,013)

(7,666)

Disposals

(359)

-

(43,974)

(7,086)

(31,245)

(82,664)

Cost as of December 31, 2025

959,251

6,420

622,308

607,846

49,382

2,245,207

Depreciation and impairment losses as of January 1, 2025

315,123

4,105

287,464

156,065

-

762,757

Depreciation

46,051

823

65,046

50,829

-

162,749

Impairment losses

601

-

23,173

107

-

23,881

Disposals

(325)

-

(31,793)

(7,336)

-

(39,454)

Depreciation and impairment losses as of December 31, 2025

361,450

4,928

343,890

199,665

-

909,933

Carrying amount as of December 31, 2025

597,801

1,492

278,418

408,181

49,382

1,335,274

Carrying amount as of December 31, 2024

630,561

2,230

337,442

436,841

102,191

1,509,265

For collateral, see the consolidated financial statements note 16.

188

Bavarian Nordic Annual Report 2025

Note 12

Right-of-use assets

Note 13

Investment in subsidiaries

Accounting policies

See consolidated financial statements note 17.

2025

DKK thousand

Rent facility

Car leasing

Equipment

Total

Right-of-use assets as of January 1, 2025

43,028

1,238

1,023

45,289

Additions

-

942

-

942

Modifications

3,077

-

-

3,077

Disposals

-

(1,205)

(2,316)

(3,521)

Depreciations

(11,764)

(846)

(801)

(13,411)

Reversal depreciations

-

1,205

2,316

3,521

Right-of-use assets as of December 31, 2025

34,341

1,334

222

35,897

2024

DKK thousand

Rent facility

Car leasing

Equipment

Total

Impact from applying IFRS 16 as of January 1, 2024

53,162

1,525

1,104

55,791

Additions

1,307

639

532

2,478

Modifications

(255)

(56)

(30)

(341)

Disposals

(3,407)

(97)

-

(3,504)

Depreciations

(11,186)

(870)

(583)

(12,639)

Reversal depreciations

3,407

97

-

3,504

Right-of-use assets as of December 31, 2024

43,028

1,238

1,023

45,289

DKK thousand

2025

2024

Amounts included in the income statement

Interest expense leases

1,897

2,551

Depreciation recognized on right-of-use assets

13,411

12,639

Accounting policies

Investments in subsidiaries are recognized and meas- ured under the equity method. This means that, in the balance sheet, investments are measured at the pro rata share of the subsidiaries' equity plus or less unam- ortized positive, or negative, goodwill and plus or less unrealized intra-group profits or losses.

Subsidiaries with a negative equity value are measured at zero value, and any receivables from these subsidi- aries are written down by the Company’s share of such negative equity if it is deemed irrecoverable. If the negative equity exceeds the amount receivable, the remaining amount is recognized under provisions if the Company has a legal or constructive obligation to cover the liabilities of the relevant subsidiary.

Upon distribution of profit or loss, net revaluation of investments in subsidiaries is transferred to the net

revaluation reserve according to the equity method under equity, if the net revaluation is positive. If the net revaluation is negative, it is recognized in retained earnings in equity.

Goodwill is calculated as the difference between cost of the investments and the fair value of the assets and liabilities acquired which have been measured at fair value at the date of acquisition. The amortization period for goodwill is usually five years.

Investments in subsidiaries are written down to the lower of recoverable amount and carrying amount.

Income from investments in subsidiaries' contains pro rata share of subsidiaries profits or losses after elimina- tion of unrealized intra-group profits and losses.

189

Bavarian Nordic Annual Report 2025

Note 13

Investment in subsidiaries (continued)

DKK thousand

2025

Costs as of January 1, 2025

1,252,768

Capital reduction

(159,643)

Cost as of December 31, 2025

1,093,125

Net revaluation as of January 1, 2025

(437,871)

Net share of profit/loss for the year

163,051

Change in unrealized intra-group profits

(34,787)

Dividend

(164,314)

Exchange rate adjustments

31,466

Net revaluation as of December 31, 2025

(442,455)

Carrying amount as of December 31, 2025

650,670

Carrying amount as of December 31, 2024

814,897

Company summary

Domicile

Ownership

Voting rights

Subsidiaries

Bavarian Nordic GmbH

Germany

100%

100%

Bavarian Nordic, Inc.

USA

100%

100%

Bavarian Nordic Berna GmbH

Switzerland

100%

100%

Bavarian Nordic Italy S.r.l.

Italy

100%

100%

Bavarian Nordic Spain SLU

Spain

100%

100%

Bavarian Nordic Portugal, Lda.

Portugal

100%

100%

Bavarian Nordic Canada Inc.

Canada

100%

100%

Bavarian Nordic Sweden AB

Sweden

100%

100%

Bavarian Nordic UK Ltd.

UK

100%

100%

Bavarian Nordic Belgium BV

Belgium

100%

100%

Bavarian Nordic France

France

100%

100%

Aktieselskabet af 1. juni 2011 I

Denmark

100%

100%

Aktieselskabet af 1. juni 2011 II

Denmark

100%

100%

Bavarian Nordic Berna GmbH and Bavarian Nordic Switzerland AG were merged effective January 1, 2025, with Bavarian Nordic Berna GmbH as the continuing entity.

190

Bavarian Nordic Annual Report 2025

Note 14

Inventories

Accounting policies and significant accounting estimates

See consolidated financial statements note 18.

DKK thousand

2025

2024

Raw materials and supply materials

177,794

257,297

Work in progress

1,910,053

1,482,162

Manufactured goods and commodities

478,209

607,978

Write-down on inventory

(375,869)

(229,647)

Inventories

2,190,187

2,117,790

Write-down on inventory as of January 1

(229,647)

(177,429)

Write-down for the year

(323,549)

(160,902)

Use of write-down

177,327

80,024

Reversal of write-down

-

28,660

Write-down on inventory as of December 31

(375,869)

(229,647)

Cost of goods sold amounts to

1,974,578

1,614,214

For further details regarding development in inventory values see consolidated financial statements note 18.

Note 15

Lease liabilities

Accounting policies

See consolidated financial statements note 27.

DKK thousand

2025

2024

Non-current

23,419

32,658

Current

14,917

14,694

Lease liabilities

38,336

47,352

DKK thousand

Due within 1 year

Due between 1 and 5 year

Due after 5 years

Total

2025

Lease liabilities

14,917

23,419

-

38,336

2024

Lease liabilities

14,694

32,658

-

47,352

191

Bavarian Nordic Annual Report 2025

Note 16

Prepayment from customers

Accounting policies

See consolidated financial statements note 28.

DKK thousand

2025

2024

Prepayment from customers as of January 1

131,408

-

Prepayments received during the year

-

131,408

Recognized as income during the year

(121,459)

-

Prepayment from customers as of December 31

9,949

131,408

Note 17

Other liabilities

Accounting policies

See consolidated financial statements note 22.

DKK thousand

2025

2024

Derivative financial instruments at fair value in the income statement

-

29,902

Payable salaries, holiday accrual etc.

154,687

122,093

Gross to net deduction accrual

131,878

85,965

Other accrued costs

30,022

35,542

Other liabilities

316,587

273,502

For further details of derivative financial instruments, see consolidated financial statements note 23. The phantom share programs are disclosed in the consoli- dated financial statements note 29.

192

Bavarian Nordic Annual Report 2025

Note 19

Mortgages and collateral

Note 18

Contingent liabilities and other contractual obligations

DKK thousand

2025

2024

Guarantees for subsidiaries

The Parent Company stands surety for a credit facility to a subsidiary of a maximum of

3,552

3,767

The Parent Company stands surety for letter of credit to subsidiaries of a maximum of

2,346

2,342

Mortgages

See description regarding property, plant and equip- ment in note 16 in the consolidated financial state- ments.

DKK thousand

2025

2024

Collaborative agreements

Contractual obligations with research partners for long-term research projects.

- Due within 1 year

118,368

139,183

No contingent liabilities exist as per December 31, 2025

Earnout to Emergent

The Purchase and Sale Agreement concluded with Emergent BioSolution Inc. in May 2023 includes an earnout payment starting at USD 30 million. The earnout payment relates to sale of Vivotif and Vaxchora. As per December 31, 2025 Management does not judge the sales milestone to be probable and there- fore the earnout payment has not been recognized as either part of the project rights nor the deferred consid- eration.

Joint taxation

The Company is jointly taxed with all Danish subsid- iaries. As the administration company the Company stands surety with the other companies in the joint taxation of Danish corporate taxes and also withholding taxes on dividends, interest and royalties. Corporation taxes and withholding taxes payable in the joint taxa- tion pool was DKK 0 as of December 31, 2025 following payment of on-account corporate taxes during 2025. Any adjustments of the taxable joint taxation income or taxes withheld at source may have the effect that the Company's liability increases.

Company mortgage and lawsuits

See the consolidated financial statements note 30.

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Bavarian Nordic Annual Report 2025

Note 20

Related party transactions

The Corporate Management and Board of Directors of Bavarian Nordic A/S are considered related parties as they have significant influence over the Company.

Main intercompany transactions:

Bavarian Nordic GmbH provides research and devel- opment services and regional commercial services to Bavarian Nordic A/S.

Bavarian Nordic, Inc. distributes and sells Jynneos, RabAvert, Vivotif, Vaxchora and Vimkunya in the US on behalf of Bavarian Nordic A/S. This is done under a Distribution Agreement.

Bavarian Nordic, Inc. provides research and develop- ment services to Bavarian Nordic A/S

Bavarian Nordic, Inc. also provides services to Bavarian Nordic A/S in terms of commercial affairs work towards the U.S. Government, with the purpose of ensuring an efficient communication and service to U.S. authorities, in order to maintain existing contracts and explore new product/contract opportunities on the U.S. market.

Bavarian Nordic Sweden AB provides regional commer- cial services to Bavarian Nordic A/S.

Bavarian Nordic Canada Inc. provides research and development services and regional commercial services to Bavarian Nordic A/S.

Bavarian Nordic Berna GmbH, distributes and sells Rabipur, Encepur and Vivotif in Switzerland on behalf of Bavarian Nordic A/S. This is done under a Distribution Agreement.

Bavarian Nordic Berna GmbH, manufactures and sells Vimkunya drug substance together with Vivotif and Vaxchora to Bavarian Nordic A/S. This is done under a Contract Manufacturing Agreement.

Bavarian Nordic Berna GmbH provides research and development services and global commercial services to Bavarian Nordic A/S.

Bavarian Nordic Spain SLU, distributes and sells Vivotif and Vaxchora in Spain on behalf of Bavarian Nordic A/S. This is done under a Distribution Agreement.

Bavarian Nordic Italy S.r.l., distributes and sells Rabipur, Vivotif and Vaxchora in Italy on behalf of Bavarian Nordic A/S. This is done under a Distribution Agree- ment.

Bavarian Nordic Portugal, LDA, distributes and sells Vivotif and Vaxchora in Portugal on behalf of Bavarian Nordic A/S. This is done under a Distribution Agree- ment.

Bavarian Nordic UK Ltd. provides regional commercial services to Bavarian Nordic A/S.

Bavarian Nordic Belgium BV provides research and development services and global commercial services to Bavarian Nordic A/S.

Bavarian Nordic France SAS, distributes and sells Vimkunya in France on behalf of Bavarian Nordic A/S. This is done under a Distribution Agreement.

Bavarian Nordic France SAS provides regional commer- cial services to Bavarian Nordic A/S.

All services except for the distribution agreements are delivered under cost plus agreements and on arms length conditions.

The distribution agreements are honored according to OECD's guidelines for a Limited Risk Distributor.

Apart from intra-group transactions mentioned above and the remuneration of the Board of Directors and Corporate Management, cf. note 8 and note 29 in the consolidated financial statements, there are no transac- tions with related parties.

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Note 21

Proposed appropriation of net profit

DKK thousand

2025

2024

Retained earnings

1,374,299

964,746

Total

1,374,299

964,746

Note 22

Significant events after the balance sheet date

See description in note 32 in the consolidated financial statements.

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Independent auditor’s limited assurance report on sustainability statement

To the shareholders of Bavarian Nordic A/S

Limited assurance conclusion

We have conducted a limited assurance engage-ment on the sustainability statement of Bavarian Nordic A/S (the “Group”) included in the Manage-ment’s Review (the “sustainability statement”), page 41 – 120, for the financial year 1 January – 31 December 2025.

Based on the procedures we have performed and the evidence we have obtained, nothing has come to our attention that causes us to believe that the sustainability statement is not prepared, in all mate-rial respects, in accordance with the Danish Financial Statements Act paragraph 99 a, including:

compliance with the European Sustainability Reporting Standards (ESRS), including that the process carried out by the management to iden-tify the information reported in the sustainability statement (the “Process”) is in accordance with the description set out in subsection “The double materiality assessment process” within the

“General” section of the sustainability statement; and

compliance of the disclosures in subsection “EU Taxonomy” within the “Environmental” section of the sustainability statement with Article 8 of EU Regulation 2020/852 (the “Taxonomy Regula-tion”).

Basis for conclusion

We conducted our limited assurance engagement in accordance with International Standard on Assur-ance Engagements (ISAE) 3000 (Revised), Assurance engagements other than audits or reviews of histor-ical financial information(“ISAE 3000 (Revised)”) and the additional requirements applicable in Denmark.

The procedures in a limited assurance engagement vary in nature and timing from, and are less in extent than for, a reasonable assurance engage-ment. Consequently, the level of assurance obtained

in a limited assurance engagement is substantially lower than the assurance that would have been obtained had a reasonable assurance engagement been performed.

We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for our conclusion. Our responsibilities under this standard are further described in the Auditor’s responsibilities for the assurance engagement section of our report.

Our independence and quality management

We are independent of the Group in accordance with the International Ethics Standards Board for Account-ants’ International Code of Ethics for Professional Accountants (IESBA Code) and the additional ethical requirements applicable in Denmark. We have also fulfilled our other ethical responsibilities in accord-ance with these requirements and the IESBA Code.

KPMG Statsautoriseret Revisionspartnerselskab applies International Standard on Quality Manage-

ment 1, which requires the firm to design, imple-ment and operate a system of quality management including policies or procedures regarding compli-ance with ethical requirements, professional stand-ards and applicable legal and regulatory require-ments.

Other matter

The comparative information included in the sustainability statement of the Group was not subject to an assurance engagement on sustaina-bility information prepared in accordance with the Danish Financial Statements Act section 99 a. Our conclusion is not modified in respect of this matter.

Inherent limitations in preparing the sustainability statement

In reporting forward-looking information in accord-ance with ESRS, management is required to prepare the forward-looking information on the basis of disclosed assumptions about events that may occur in the future and possible future actions by the

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Group. Actual outcomes are likely to be different since anticipated events frequently do not occur as expected.

Management’s responsibilities for the sustainability statement

Management is responsible for designing and implementing a process to identify the information reported in the sustainability statement in accord-ance with the ESRS and for disclosing this Process as part of the subsection “The double materiality assessment process” within the “General” section of the sustainability statement. This responsibility includes:

understanding the context in which the Group’s activities and business relationships take place and developing an understanding of its affected stakeholders;

the identification of the actual and potential impacts (both negative and positive) related to sustainability matters, as well as risks and opportunities that affect, or could reasonably be expected to affect, the Group’s financial posi-tion, financial performance, cash flows, access to finance or cost of capital over the short-, medium-, or long-term;

the assessment of the materiality of the identi-fied impacts, risks and opportunities related to sustainability matters by selecting and applying appropriate thresholds; and

making assumptions that are reasonable in the circumstances.

Management is further responsible for the prepara-tion of the sustainability statement, in accordance with the Danish Financial Statements Act paragraph 99 a, including:

compliance with the ESRS;

preparing the disclosures in subsection “EU Taxonomy” within the “Environmental“ section of the sustainability statement, in compliance with Article 8 of the Taxonomy Regulation;

designing, implementing and maintaining such internal control that management determines is necessary to enable the preparation of the sustainability statement that is free from material misstatement, whether due to fraud or error; and

the selection and application of appropriate sustainability reporting methods and making

assumptions and estimates that are reasonable in the circumstances.

Auditor’s responsibilities for the assurance engagement

Our objectives are to plan and perform the assur-ance engagement to obtain limited assurance about whether the sustainability statement is free from material misstatement, whether due to fraud or error, and to issue a limited assurance report that includes our conclusion. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reason-ably be expected to influence decisions of users taken on the basis of the sustainability statement as a whole.

As part of a limited assurance engagement in accordance with ISAE 3000 (Revised) we exercise professional judgement and maintain professional scepticism throughout the engagement.

Our responsibilities in respect of the Process include:

Obtaining an understanding of the Process but not for the purpose of providing a conclusion on the effectiveness of the Process, including the outcome of the Process;

Considering whether the information identified addresses the applicable disclosure requirements of the ESRS, and

Designing and performing procedures to eval-uate whether the Process is consistent with the Group’s description of its Process, as disclosed in the subsection “The double materiality assess-ment process” within the “General” section of the sustainability statement.

Our other responsibilities in respect of the sustaina-bility statement include:

Identifying disclosures where material misstate-ments are likely to arise, whether due to fraud or error; and

Designing and performing procedures responsive to disclosures in the sustainability statement where material misstatements are likely to arise. The risk of not detecting a material misstate-ment resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrep-resentations, or the override of internal control.

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Summary of the work performed

A limited assurance engagement involves performing procedures to obtain evidence about the sustainability statement.

The nature, timing and extent of procedures selected depend on professional judgement, including the identification of disclosures where material misstatements are likely to arise, whether due to fraud or error, in the sustainability statement.

In conducting our limited assurance engagement, with respect to the Process, we:

Obtained an understanding of the Process by performing inquiries to understand the sources of the information used by management; and reviewing the Group’s internal documentation of its Process; and

Evaluated whether the evidence obtained from our procedures about the Process implemented by the Group was consistent with the description of the Process set out in the subsection “The double materiality assessment process” within the “General” section of the sustainability state-ment.

In conducting our limited assurance engagement, with respect to the sustainability statement, we:

Obtained an understanding of the Group’s reporting processes relevant to the preparation of its sustainability statement including the consol-idation processes by obtaining an understanding of the Group’s control environment, processes and information systems relevant to the preparation of the sustainability statement but not evalu-ating the design of particular control activities, obtaining evidence about their implementation or testing their operating effectiveness;

Evaluated whether material information identified by the Process is included in the sustainability statement;

Evaluated whether the structure and the pres-entation of the sustainability statement are in accordance with the ESRS;

Performed inquiries of relevant personnel and analytical procedures on selected information in the sustainability statement;

Performed substantive assurance procedures on selected information in the sustainability state-ment;

Evaluated methods, assumptions and data for developing material estimates and forward-looking information and how these methods were applied;

Obtained an understanding of the process to identify taxonomy-eligible and taxonomy-aligned economic activities and the corresponding disclo-sures in the sustainability statement; and

Where applicable, compared selected disclosures in the sustainability statement with the corre-sponding disclosures in the financial statements and Management’s Review;

Copenhagen, 12 March 2026

KPMG

Statsautoriseret Revisionspartnerselskab

CVR-nr. 25578189

Sara Carstensen

State Authorised Public Accountant

mne34191

Simon Vinberg Andersen

State Authorised Public Accountant

mne35458

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Bavarian Nordic Annual Report 2025

Independent auditor’s report

To the shareholders of Bavarian Nordic A/S

Report on the audit of the Consolidated Financial Statements and Parent Company Financial Statements

Opinion

In our opinion, the consolidated financial statements and the Parent Company financial statements give a true and fair view of the Group's and the Parent Company's assets, liabilities and financial position at 31 December 2025 and of the results of the Group's and Parent Company's operations and cash flows for the financial year 1 January – 31 December 2025. The consolidated financial statements are prepared in accordance with the IFRS Accounting Standards as adopted by the EU and additional requirements in the Danish Financial Statements Act, and the parent financial statements are prepared in accordance with the Danish Financial Statements Act.

Our opinion is consistent with our long-form audit report to the Board or Directors and the Audit Committee.

Audited financial statements

Bavarian Nordic A/S' consolidated financial state-ments and parent company financial statements for the financial year 1 January – 31 December 2025 comprise the income statement, statement of comprehensive income, balance sheet, statement of changes in equity, statement of cash flows and notes, including summary of material accounting policy information, for the Group as well as for the Parent Company (the financial statements). The consolidated financial statements are prepared in accordance with the IFRS Accounting Standards as adopted by the EU and additional requirements in the Danish Financial Statements Act, and the parent financial statements are prepared in accordance with the Danish Financial Statements Act.

Basis for opinion

We conducted our audit in accordance with Interna-tional Standards on Auditing (ISAs) and the addi-tional requirements applicable in Denmark.

Our responsibilities under those standards and requirements are further described in the "Auditor's responsibilities for the audit of the financial state-ments" section of our report.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Independence

We are independent of the Group in accordance with the International Ethics Standards Board for Account-ants' 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 accord-ance with these requirements and the IESBA Code.

We declare, to the best of our knowledge and belief, that we have not provided any prohibited non-audit services, as referred to in Article 5(1) of the Regu-

lation (EU) 537/2014 and that we remained inde-pendent in conducting the audit.

We were appointed auditors of Bavarian Nordic A/S for the first time on 16 April 2024 for the financial year 2024. We have been re-appointed by resolu-tions passed by the annual general meeting for a total uninterrupted engagement period of 2 years up to and including the financial year ending 31 December 2025.

Key audit matters

Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial statements for the 2025 financial year. These matters were addressed in the context of our audit of the financial statements as a whole, and in the forming of our opinion thereon. We do not provide a separate opinion on these matters.

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Independent auditor’s report

Key audit matter

How our audit addressed the key audit matter

Valuation of inventories related to work in progress and manufactured goods (invento-ries)

Refer to note 18 in the consolidated financial statements.

Inventory valuation is inherently complex due to multistage manufacturing processes, strict regulatory requirements, short product shelf lives and estimation uncertainty in deter-mining net realizable value.

The valuation of the inventories requires management to determine and apply assumptions. This includes assessments of expiry dates, estimated 'out-of-specification' products, and sales risks when calculating inventory write-down to net realizable value. Changes in these assumptions can have a significant impact on the valuation of inven-tories. Further, to ensure accurate accounting, the area must have matured, and well-struc-tured internal processes.

Based on the above and the significance of the related amounts, we identified this area as a key audit matter.

For the purpose of our audit, the procedures we carried out included the following:

We performed risk assessment procedures to obtain an understanding of the business processes and relevant controls regarding the valuation of inventories. We assessed whether the controls were designed and implemented to effectively address the risk of material misstate-ment.

We assessed the Group’s accounting policies and evaluated whether the methods and assump-tions applied were consistent with the require-ments of the applicable accounting standards.

For valuation of inventories, we among others:

Assessed the appropriateness of the methods and models applied.

Evaluated Management’s significant assump-tions used in the calculation of inventory write-down to net realizable value.

Tested the underlying data used the write-down calculation on a sample basis.

We evaluated the related presentation and disclosures.

Statement on the Management's review

Management is responsible for the Management's review.

Our opinion on the 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 financial state-ments, our responsibility is to read the Manage-ment's review and, in doing so, consider whether the Management's review is materially inconsistent with the financial statements or our knowledge obtained during 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 the Danish Financial Statements Act. This does not include the requirements in paragraph 99a related to the sustainability statement covered by the separate auditor’s limited assurance report hereon.

Based on the work we have performed, we conclude that the Management's review is in accordance with the financial statements and has been prepared in accordance with the requirements of the Danish Financial Statements Act except for the requirements in paragraph 99a related to the sustainability statement, cf. above. We did not identify any material misstatement of the Manage-ment's review.

Management's responsibility for the financial statements

Management is responsible for the preparation of financial statements that give a true and fair view in accordance with the IFRS Accounting Standards as adopted by the EU and additional requirements in the Danish Financial Statements Act and for such internal control that Management determines is necessary to enable the preparation of financial statements that are free from material misstate-ment, whether due to fraud or error.

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

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance as to whether the 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

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exists. Misstatements may 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 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 misstate-ment of the 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 circum-stances, but not for the purpose of expressing an opinion on the effectiveness of the Group's and the Parent Company's internal control.

evaluate the appropriateness of accounting poli-cies used and the reasonableness of accounting

estimates and related disclosures made by Management.

conclude on the appropriateness of Manage-ment's use of the going concern basis of accounting in preparing the 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 Company'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 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 Parent Company to cease to continue as a going concern.

evaluate the overall presentation, structure and contents of the financial statements, including the disclosures, and whether the 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 suffi-cient 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 Company 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 govern-ance 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.

We also provide those charged with governance with a statement that we have complied with rele-vant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, actions taken to eliminate threats or safeguards applied.

From the matters communicated to those charged with governance, we determine those matters that were of most significance in the audit of the finan-cial statements of the current period and therefore the key audit matters. We describe these matters in our auditor's report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we deter-mined that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

Report on compliance with the ESEF Regulation

As part of our audit of the Consolidated Financial Statements and Parent Company Financial State-ments of Bavarian Nordic A/S we performed proce-dures to express an opinion on whether the annual report of Bavarian Nordic A/S for the financial year 1 January – 31 December 2025 with the file name bava-2025-12-31-en.zip is prepared, in all mate-rial respects, in compliance with the Commission Delegated Regulation (EU) 2019/815 on the European Single Electronic Format (ESEF Regulation) which includes requirements related to the preparation of the annual report in XHTML format and iXBRL tagging of the Consolidated Financial Statements.

Management is responsible for preparing an annual report that complies with the ESEF Regulation. This responsibility includes:

The preparing of the annual report in XHTML format;

The selection and application of appropriate iXBRL tags, including extensions to the ESEF taxonomy and the anchoring thereof to elements in the taxonomy, for financial information required to be tagged using judgement where necessary;

Ensuring consistency between iXBRL tagged data and the Consolidated Financial Statements presented in human readable format; and

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For such internal control as Management deter-mines necessary to enable the preparation of an annual report that is compliant with the ESEF Regulation.

Our responsibility is to obtain reasonable assurance on whether the annual report is prepared, in all material respects, in compliance with the ESEF Regu-lation based on the evidence we have obtained, and to issue a report that includes our opinion. The nature, timing and extent of procedures selected depend on the auditor’s judgement, including the assessment of the risks of material departures from the requirements set out in the ESEF Regulation, whether due to fraud or error. The procedures include:

Testing whether the annual report is prepared in XHTML format;

Obtaining an understanding of the company’s iXBRL tagging process and of internal control over the tagging process;

Evaluating the completeness of the iXBRL tagging of the Consolidated Financial Statements;

Evaluating the appropriateness of the company’s use of iXBRL elements selected from the ESEF taxonomy and the creation of extension elements where no suitable element in the ESEF taxonomy has been identified;

Evaluating the use of anchoring of extension elements to elements in the ESEF taxonomy; and

Reconciling the iXBRL tagged data with the audited Consolidated Financial Statements.

In our opinion, the annual report of Bavarian Nordic A/S for the financial year 1 January – 31 December 2025 with the file name bava-2025-12-31-en.zip is prepared, in all material respects, in compliance with the ESEF Regulation.

Copenhagen, 12 March 2026

KPMG

Statsautoriseret Revisionspartnerselskab CVR no. 25578198

Sara Carstensen

State Authorised Public Accountant

mne34191

Simon Vinberg Andersen

State Authorised Public Accountant

mne35458

203

Bavarian Nordic Annual Report 2025

This annual report contains forward looking state- ments. The words “believe”, “expect”, “anticipate”, “intend” and “plan” and similar expressions iden- tify forward looking statements. Actual results or performance may differ materially from any future results or performance expressed or implied by such statements. The important factors that could cause our actual results or performance to differ materi- ally include, among others, risks associated with product discovery and development, uncertainties related to the outcome and conduct of clinical trials including unforeseen safety issues, uncertainties related to product manufacturing, the lack of market acceptance of our products, our inability to manage

Forward-looking statement

growth, the competitive environment in relation to our business area and markets, our inability to attract and retain suitably qualified personnel, the unenforceability or lack of protection of our patents and proprietary rights, our relationships with affil- iated entities, changes and developments in tech- nology which may render our products obsolete, and other factors. For a further discussion of these risks, please refer to the section “Risk Manage- ment” in this Annual Report. Bavarian Nordic does not undertake any obligation to update or revise forward looking statements in this Annual Report nor to confirm such statements in relation to actual results, unless required by law.

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Design and production: Noted

Encepur ® , IMVAMUNE ® , IMVANEX ® , JYNNEOS ® , MVA-BN ® ,

RabAvert ® , Rabipur ® , Typhoral ® , Vivotif ® , Vaxchora ® and Vimkunya ®

are registered trademarks owned by Bavarian Nordic.

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