Sopharma : Consolidated management report as at 30 June 2023

MANAGEMENT REPORT FOR THE FIRST HALF OF

2023

SOPHARMA GROUP

29 August 2023

Sopharma Group

CONTENT:

I.	General information about Sopharma Group	3
	1.	Main activities	3
	2.	Registration and activity of the Company	3
	3.	Controlled companies	3
	4.	Board of directors	6
	5.	Shareholder structure as at 30 June 2023	6
	6.	Information about the shares and other securities issued by the Company	6
II.	Recent developments	7
III.	Significant events for the first half of 2023 and until the date of the consolidated management
report	13
IV.	Review of the main risks faced by the Group	16
V.	Information on related party transactions	18

2

This is a translation from Bulgarian of the Management report of Sopharma Group for the first half of

2023.

In case of divergence Bulgarian text should prevail.

Sopharma Group

1. General information about Sopharma Group

1. Main activities

Sopharma Group (the Group) is a leading Bulgarian producer, exporter and local distributor of pharmaceutical products with a strong presence in Eastern and South-eastern Europe, offering a wide range of prescription medicines and OTC products, food supplements, cosmetics and medical devices.

The Group operates in the following areas:

• production of pharmaceutical products, including medicines, mainly generics, herbal-based substances and food supplements, which is mainly done by "Sopharma" AD (the Company);
• production of medicinal products and medicinal cosmetics, as plasters, bandages and sanitary-hygiene products concentrated on the production site in Sandanski city;
• distribution of pharmaceuticals, medical supplies, sanitary materials, vitamins, food supplements, cosmetics and others, which is mainly performed by "Sopharma Trading" in Bulgaria and Serbia.

2. Registration and activity of the Company

"Sopharma" AD is a company registered in Bulgaria under the Provisions of the Commercial Law, with its registered office in Sofia, 16 Iliensko shose str.

"Sopharma" was established in 1933. The court registration of the Group is from 15 November 1991, decision №1/1991 of Sofia City Court. "Sopharma" AD is a public company under the Law on Public Offering of Securities.

The Group conducts the production and marketing of medicinal substances and dosage forms; research, engineering and implementation activities in the field of phytochemistry, chemistry and pharmacy, production of medical devices and cosmetic products, incl. - plasters, dressings, sanitary - hygiene products, herbal cosmetics, concentrates for hemodialysis. "Sopharma" AD provides services related to production, as well as to ancillary and supporting activities.

3. Controlled companies

Sopharma Group consists of "Sopharma" AD and the following subsidiaries, directly or indirectly controlled by the Company. Additionally, the Group has investments in two associated

3

This is a translation from Bulgarian of the Management report of Sopharma Group for the first half of

2023.

In case of divergence Bulgarian text should prevail.

Sopharma Group

companies ("Doverie - obedinen holding" AD, 24.993% stake and "Sopharma Imoti" REIT, 41.09% stake) and in one joint venture ("Momina krepost" AD, 37.46% stake).

Company	Interest as at
	30.06.2023 in %
"Sopharma Trading" AD	87.50
"Pharmalogistica" AD	89.39
"Elektroncommerce" EOOD	100.00
"Biopharm Engineering" AD	97.15
"Phyto Palauzovo" AD	95.00
"Veta Pharma" AD	99.98
"Sopharmacy" EOOD **	87.50
"Sopharmacy 2" EOOD **	87.50
"Sopharmacy 3" EOOD **	87.50
"Sopharmacy 4" EOOD **	87.50
"Sopharmacy 5" EOOD **	87.50
"Sopharmacy 6" EOOD **	87.50
"Sopharmacy 7" EOOD **	87.50
"Sopharmacy 8" EOOD **	87.50
"Sopharmacy 9" EOOD **	87.50
"Sopharmacy 10" EOOD **	87.50
"Sopharmacy 11" EOOD **	87.50
"Sopharmacy 12" EOOD **	87.50
"Sopharmacy 13" EOOD **	87.50
"Sopharmacy 14" EOOD**	87.50
"Sopharmacy 15" EOOD**	87.50
"Sopharmacy 16" EOOD**	87.50
"Sopharmacy 17" EOOD**	87.50
"Sopharmacy 18" EOOD**	87.50
"Sopharmacy 19" EOOD **	87.50
"Sopharmacy 20" EOOD **	87.50
"Sopharmacy 21" EOOD **	87.50
"Sopharmacy 22" EOOD **	87.50
"Sopharmacy 23" EOOD **	87.50
"Sopharmacy 24" EOOD **	87.50
"Sopharmacy 25" EOOD **	87.50
"Sopharmacy 26" EOOD **	87.50
"Sopharmacy 27" EOOD **	87.50
"Sopharmacy 28" EOOD **	87.50
"Sopharmacy 29" EOOD **	87.50

4

This is a translation from Bulgarian of the Management report of Sopharma Group for the first half of

2023.

In case of divergence Bulgarian text should prevail.

Sopharma Group

"Sopharmacy 30" EOOD **	87.50
"Sopharmacy 31" EOOD **	87.50
"Sopharmacy 32" EOOD **	87.50
"Sopharmacy 33" EOOD **	87.50
"Sopharmacy 34" EOOD **	87.50
"Sopharmacy 35" EOOD **	87.50
"Sopharmacy 36" EOOD **	87.50
"Sopharmacy 37" EOOD **	87.50
"Sopharmacy 38" EOOD **	87.50
"Sopharmacy 39" EOOD **	87.50
"Sopharmacy 40" EOOD **	87.50
"Sopharmacy 41" EOOD **	87.50
"Sopharmacy 42" EOOD **	87.50
"Sopharmacy 43" EOOD **	87.50
"Sopharmacy 44" EOOD **	87.50
"Sopharmacy 45" EOOD **	87.50
"Sopharmacy 46" EOOD **	87.50
"Sopharmacy 47" EOOD **	87.50
"Sopharmacy 48" EOOD **	87.50
"Sopharmacy 49" EOOD **	87.50
"Sopharmacy 50" EOOD **	87.50
"Sopharmacy 51" EOOD **	87.50
"Sopharmacy 52" EOOD **	87.50
"Sopharmacy 53" EOOD **	87.50
"Sopharmacy 54" EOOD **	87.50
"Sopharmacy 55" EOOD **	87.50
"Sopharmacy 56" EOOD **	87.50
"Sopharmacy 57" EOOD **	87.50
"Sopharmacy 58" EOOD **	87.50
"Sopharmacy 59" EOOD **	87.50
"Sopharmacy 60" EOOD **	87.50
"Sopharmacy 61" EOOD **	87.50
"Sopharmacy 62" EOOD **	87.50
"Sopharmacy 63" EAD **	87.50
PAO "Vitamini"	100.00
"Sopharma" Warsaw Sp. z. o. o	100.00
"Sopharma" Poland Sp. z. o. o - in liquidation	60.00
OOO "Sopharma" Ukraine	100.00
TOO "Sopharma" Kazakhstan	100.00
"Rap Pharma International" OOD	100.00

5

This is a translation from Bulgarian of the Management report of Sopharma Group for the first half of

2023.

In case of divergence Bulgarian text should prevail.