Form 20-F // YE 2018 Including Management Report (IFRS) Form 20-F // YE 2018 Including Management Report (IFRS) REFERENCE TABLE 20-F .............................................................. ii 1. INTRODUCTION ................................................................. 1 2. SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS .................. 1 3. RISK FACTORS .................................................................. 2 Risks Related to Our Financial Condition ................................................ 2 Risks Related to the Development, Clinical Testing and Commercialization of Our Product Candidates ........................................................................ 5 4. GROUP MANAGEMENT REPORT .................................................. 42 a) Operations and Business Environment ............................................... 43 b) Operating and Financial Review and Prospects ....................................... 72 c) Outlook and Forecast ............................................................ 88 d) Shares and the Capital Market ..................................................... 93 e) Sustainable Business Development .................................................. 97 f) Risk and Opportunity Report ...................................................... 103 g) Statement on Corporate Governance, Group Statement on Corporate Governance and Corporate Governance Report ..................................................... 114 h) Subsequent Events ............................................................... 147 5. ADDITIONAL BUSINESS INFORMATION .......................................... 148 6. GOVERNMENT REGULATION .................................................... 189 7. OTHER INFORMATION ........................................................... 204 8. RELATED PARTY TRANSACTIONS ................................................ 206 9. PRINCIPAL SHAREHOLDERS ..................................................... 206 10. DESCRIPTION OF SHARE CAPITAL ............................................... 208 11. DESCRIPTION OF AMERICAN DEPOSITARY SHARES .............................. 213 12. EXCHANGE CONTROLS AND LIMITATIONS AFFECTING SHAREHOLDERS ......... 214 13. CONTROLS AND PROCEDURES ................................................... 214 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES ................................... 215 15. DOCUMENTS ON DISPLAY ....................................................... 215 16. TAXATION ...................................................................... 215 17. APPENDIX ...................................................................... 228 INDEX TO FINANCIAL STATEMENTS ................................................. F-1 EXHIBIT INDEX i REFERENCE TABLE 20-F Item Form 20-F Caption Location in this document Page Part I 1 Identity of Directors, Senior Management and Advisors Not applicable — 2 Offer Statistics and Expected Timetable Not applicable — 3 Key Information A. Selected Financial Data Group Management Report – Operating and Financial Review and Prospects – Multi-Year Overview – Statement of Profit or Loss 78 Group Management Report – Operating and Financial Review and Prospects – Multi-Year Overview – Balance Sheet Structure 83 B. Capitalization and Indebtedness Not applicable C. Reasons for the Offer and Use of Proceeds Not applicable D. Risk Factors Risk Factors 2-42 4 Information on the Company A. History and Development of the Company Group Management Report – Operations and Business Environment – Organizational Structure 46 Group Management Report – Operations and Business Environment – Group Development 65-66 Group Management Report – Operations and Business Environment – Investments 81 Documents on Display 215 B. Business Overview Introduction 1 Group Management Report – Operations and Business Environment – Business Activities 47-50 Group Management Report – Operations and Business Environment – Research Development and Business Performance 50-65 Group Management Report – Operations and Business Environment – Patents 65 Group Management Report – Operating and Financial Review and Prospects – Investments 81 Group Management Report – Sustainable Business Development – Intellectual Property 102 Additional Business Information – Business Overview 148-189 Additional Business Information – Government Regulation 189-204 C. Organizational Structure D. Property, Plant and Equipment Additional Business Information – Other Information – Facilities 204 ii 4A Unresolved Staff Comments Not applicable 5 Operating and Financial Review and Prospects A. Operating Results Group Management Report – Operating and Financial Review and Prospects – Results of Operations 72-78 B. Liquidity and Capital Resources Group Management Report – Operating and Financial Review and Prospects – Liquidity and Capital Resources 79-81 Group Management Report – Operating and Financial Review and Prospects – Investments 81 C. Research and Development, Patents and Licenses, etc. Group Management Report – Operations and Business Environment – Research Development and Business Performance 50-65 D. Trend Information Group Management Report – Operations and Business Environment – Changes in the Business Environment 69-71 Group Management Report – Outlook and Forecast – General Statement on Expected Development 88 Group Management Report – Outlook and Forecast – Future Research and Development and Expected Business Performance – Proprietary Development 90 Group Management Report – Outlook and Forecast – Future Research and Development and Expected Business Performance – Partnered Discovery 91 E. Off-Balance Sheet Arrangements Group Management Report – Operating and Financial Review and Prospects – Contractual Obligations 83 F. Tabular Disclosure of Contractual Obligations Group Management Report – Operating and Financial Review and Prospects – Contractual Obligations 83 G. Safe Harbor Special Note Regarding Forward Looking Statements 1-2 6 Directors, Senior Management and Employees A. Directors and Senior Management Group Management Report – Statement on Corporate Governance, Group Statement on Corporate Governance and Corporate Governance Report – Statement on Corporate Governance under Section 289F HGB and Group Statement on Corporate Governance under Section 315D HGB for the 2018 Financial Year – Composition of the Management Board and the Supervisory Board 115-117 Group Management Report – Statement on Corporate Governance, Group Statement on Corporate Governance and Corporate Governance Report – Corporate Governance Report – Independence 121 Appendix 228-232 iii B. Compensation Group Management Report – Statement on Corporate Governance, Group Statement on Corporate Governance and Corporate Governance Report – Corporate Governance Report — Management Board Remuneration 124-134 Group Management Report – Statement on Corporate Governance, Group Statement on Corporate Governance and Corporate Governance Report – Corporate Governance Report — Supervisory Board Remuneration 134 C. Board Practices Group Management Report – Statement on Corporate Governance, Group Statement on Corporate Governance and Corporate Governance Report – Statement on Corporate Governance under Section 289F HGB and Group Statement on Corporate Governance under Section 315D HGB for the 2018 Financial Year – Composition of the Management Board and the Supervisory Board 115-117 Group Management Report – Statement on Corporate Governance, Group Statement on Corporate Governance and Corporate Governance Report – Statement on Corporate Governance under Section 289F HGB and Group Statement on Corporate Governance under Section 315D HGB for the 2018 Financial Year – Composition And Working Practices of the Management Board and the Supervisory Board 117-119 Group Management Report – Statement on Corporate Governance, Group Statement on Corporate Governance and Corporate Governance Report – Corporate Governance Report — Management Board Remuneration – Payments upon Termination of Management Board Employment Contracts / Change of Control 133-134 D. Employees Group Management Report – Group Headcount Development 66-68 E. Share Ownership Group Management Report – Statement on Corporate Governance, Group Statement on Corporate Governance and Corporate Governance Report – Corporate Governance Report – Holdings of Management Board and Supervisory Board Members 135-139 Principal Shareholders 206-208 7 Major Shareholders and Related Party Transactions A. Major Shareholders Principal Shareholders 206-208 B. Related Party Transactions Related Party Transactions 206 C. Interests of Experts & Counsel Not applicable — 8 Financial Information A. Consolidated Statements and Other Financial Information Consolidated Financial Statements (IFRS) 2018 F-1 – F-84 iv Group Management Report – Shares and the Capital Market – Dividend Policy 96 Additional Business Information – Other Information – Legal Proceedings 204-205 B. Significant Changes Group Management Report – Subsequent Events 147 9 The Offer and Listing A. Offer and Listing Details Group Management Report – Shares and the Capital Market – Market Information 94-95 B. Plan of Distribution Not applicable C. Markets Group Management Report – Shares and the Capital Market – Market Information 94-95 D. Selling Shareholders Not applicable E. Dilution Not applicable F. Expenses of the Issue Not applicable 10 Additional Information A. Share Capital Not applicable B. Memorandum and Articles of Association Group Management Report – Statement on Corporate Governance, Group Statement