ASCENDIS PHARMA A/S INDEX TO UNAUDITED CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS Page Unaudited Condensed Consolidated Interim Statements of Profit or Loss and Other Comprehensive Income / (Loss) for the Three

INDEX TO UNAUDITED CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

Unaudited Condensed Consolidated Interim Statements of Profit or Loss

and Other Comprehensive Income / (Loss) for the Three Months Ended March 31

Unaudited Condensed Consolidated Interim Statements of Financial Position

Unaudited Condensed Consolidated Interim Statements of Changes in Equity

Unaudited Condensed Consolidated Interim Cash Flow Statements for the

Three Months Ended March 31

Notes to the Unaudited Condensed Consolidated Interim Financial Statements

Note 1 General Information

Pharma A/S, together with its subsidiaries, is a biopharmaceutical company applying its innovative TransCon technologies to build a leading, fully integrated biopharma company. Ascendis Pharma A/S was incorporated in 2006 and is headquartered in

Hellerup, Denmark. Unless the context otherwise requires, references to the Company, Ascendis, we, us and our refer to Ascendis Pharma A/S and its subsidiaries.

The address of the Company s registered office is Tuborg Boulevard 12, DK-2900, Hellerup,

On February 2, 2015, the Company completed an initial public offering, or IPO, which resulted in the listing of American

Depositary Shares, or ADSs, representing the Company s ordinary shares, under the symbol ASND in the United States on The Nasdaq Global Select Market.

The Company s Board of Directors approved these unaudited condensed consolidated interim financial statements on May 30, 2019.

Note 2 Summary of Significant Accounting Policies

Basis of Preparation

condensed consolidated interim financial statements of the Company are prepared in accordance with International Accounting Standard 34, Interim Financial Reporting . Certain information and disclosures normally included in the

consolidated financial statements prepared in accordance with International Financial Reporting Standards ( IFRS ) have been condensed or omitted. Accordingly, these unaudited condensed consolidated interim financial statements should be

read in conjunction with the Company s annual consolidated financial statements for the year ended December 31, 2018 and accompanying notes, which have been prepared in accordance with IFRS as issued by the International Accounting

Standards Board, and as adopted by the European Union.

The preparation of financial statements in conformity with IFRS requires the use

of certain critical accounting estimates and requires management to exercise its judgment in the process of applying the Company s accounting policies. The areas involving a higher degree of judgment or complexity, or areas where assumptions

and estimates are significant to the unaudited condensed consolidated interim financial statements are disclosed in Note 3.

Changes in Accounting

As of January 1, 2019, the Company has adopted IFRS 16, Leases ( IFRS 16 ). IFRS 16

requires, with a few exceptions, lessees to recognize assets ( right-of-use assets ) and liabilities for most leases. Accordingly, lease payments under

contracts previously classified as operating leases, will be recognized over the non-cancellable lease period as depreciation included in research and development costs and general and administrative expenses,

respectively, and as interest expenses included in finance expenses. Previously, lease payments under operating leases were recognized as research and development costs and general and administrative expenses, respectively.

Impact from IFRS 16 Leases

The Company primarily leases office- and laboratory facilities and equipment. Lease arrangements are typically entered into for fixed periods

but may have extension options. Lease terms are negotiated on an individual basis and contain a wide range of different terms and conditions.

We have implemented IFRS 16 by applying the modified retrospective approach. Accordingly, no comparative information is restated. The lease

liability and corresponding right-of-use assets is measured at the present value of the remaining lease payments, discounted using an estimated incremental borrowing

rate at January 1, 2019.

In connection with the transition to IFRS 16, we have reviewed our operating lease agreements

contractual terms including lease payment structure. Fixed payments, and variable lease payments that depend on an index or a rate, are included in lease payments, while other variable lease payments are excluded. Additionally, payments related to non-lease components are excluded, and thus treated as either research and development costs, or general and administrative expenses.

Notes to the Unaudited Condensed Consolidated Interim Financial Statements

For lease arrangements other than those relating to short-term leases and leases of low value

assets, lease liabilities have been determined according to the fixed lease payments and variable lease payments that depend on an index or a rate in the non-cancellable periods, discounted by the incremental

borrowing rate. Accordingly, at January 1, 2019, we have recognized a lease liability on 17.7 million.

commitments under IAS 17 Leases , and as disclosed for the annual reporting period ended December 31, 2018 was 19.6 million. The transition to the lease liabilities recognized in the unaudited condensed consolidated

interim financial position at January 1, 2019, in accordance with IFRS 16, is summarized below:

The associated right-of-use

assets primarily relate to office- and laboratory facilities. At January 1, 2019, right-of-use assets of 18.4 million, which include prepaid leases, were

recognized as property, plant and equipment.

The transition to IFRS 16 had no impact on retained earnings.

Separate note disclosures on right-of-use assets and lease

liabilities and payments for the three months ended March 31, 2019, are included in Note 7.

Several other amendments to and

interpretations of IFRS apply for the first time in 2019, but do not have an impact on the accounting policies applied by the Company. Thus, except for the adoption of IFRS 16, the accounting policies applied when preparing these unaudited condensed

consolidated interim financial statements have been applied consistently to all the periods presented, unless otherwise stated, and are consistent with those of the Company s most recent audited annual consolidated financial statements.

A description of our accounting policies is provided in the Accounting Policies section of the audited consolidated financial statements as of

and for the year ended December 31, 2018.

Note 3 Critical Accounting Judgments and Key Sources of Estimation Uncertainty

In the application of our accounting policies, we are required to make judgments, estimates and assumptions about the carrying amounts of

assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in

the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

Critical judgments made in the process of applying our accounting policies and that have the most significant effect on the amounts recognized

in our unaudited condensed consolidated interim financial statements relate to revenue recognition, share-based payment, internally generated intangible assets, joint arrangements / collaboration agreements, and to our investment in associate.

The key sources of estimation uncertainty that have a significant risk of causing a material adjustment to the carrying amount of assets and

liabilities within the next financial year relate to impairment of goodwill and to recognition of accruals for manufacturing and clinical trial activities. No significant adjustments to accruals recognized during the first 3 months of 2019 or 2018,

due to conditions that existed at December 31, 2018, or 2017, have been recognized. Additionally, there have been no changes to the application of significant accounting estimates, and no impairment losses have been recognized during the first

three months of 2019 or 2018.

Notes to the Unaudited Condensed Consolidated Interim Financial Statements

In connection with adopting IFRS 16, the following are assessed as key assumptions concerning

estimation uncertainty that have a significant risk of causing a material adjustment to the carrying amount of right-to-use assets and lease liabilities within the next

Lease arrangements regarding our office- and laboratory facilities are subject to extension options, providing us with the right (not the

obligation) to extend the lease terms after the initial term. Extension options cover periods in the range from 2-6 years in addition to the non-cancellable periods.

Except for already exercised extension options at January 1, 2019, no extension options are deemed reasonably certain to be exercised. Accordingly, the lease terms reflect only the non-cancellable

Incremental Borrowing Rate

Lease payments are discounted over the non-cancelable periods, applying each contract s

incremental borrowing rate. In determining incremental borrowing rates, we have considered the contracts specific repayment profiles and relevant currencies, and thus applied a corresponding risk-free interest rate, individual credit spread

and eventual asset specific adjustment. The incremental borrowing rates applied are 2.5% and 5.0% for lease contracts denominated in EUR or Danish Kroner, and US Dollars, respectively.

The unaudited condensed consolidated interim financial statements do not include all disclosures for critical accounting estimates and

judgments that are required in the annual consolidated financial statements and should be read in conjunction with the Company s annual consolidated financial statements for the year ended December 31, 2018.

Note 5 Segment Information

We are managed and operated as one business unit. No separate business areas or separate business units have been identified in relation to

product candidates or geographical markets. Accordingly, we do not disclose information on business segments or geographical markets, except for the geographical information on revenue included in Note 4.

Note 6 Warrants and Share-based Payment

Pharma A/S has established warrant programs, equity-settled share-based payment transactions, as an incentive for all our employees, members of our Board of Directors and select external consultants.

Warrants are granted by the Board of Directors in accordance with authorizations given to it by the shareholders of Ascendis Pharma A/S. As of

March 31, 2019, 8,132,687 warrants had been granted, of which 19,580 warrants have been cancelled, 2,212,528 warrants have been exercised, 2,168 warrants have expired without being exercised, and 247,634 warrants have been forfeited. As of

March 31, 2019, our Board of Directors was authorized to grant up to 2,483,625 additional warrants to our employees, board members and select consultants without pre-emptive subscription rights for the

shareholders of Ascendis Pharma A/S. Each warrant carries the right to subscribe for one ordinary share of a nominal value of DKK 1. The exercise price is fixed at the fair market value of our ordinary shares at the time of grant as determined by

our Board of Directors.

Notes to the Unaudited Condensed Consolidated Interim Financial Statements

The exercise prices of outstanding warrants under our warrant programs range from 6.48

to 62.15 depending on the grant dates. Vested warrants may be exercised in two or four annual exercise periods. Apart from exercise prices and exercise periods, the programs are similar.

table specifies the warrant activity during the three months ended March 31, 2019:

Warrant Compensation Costs