Content Our Mission Letter to Shareholders Report of the Supervisory Board The RHÖN-KLINIKUM share CORPORATE RESPONSIBILITY Content Corporate Social Responsibility Report GROUP MANAGEMENT REPORT Content Basic Characteristics of the RHÖN-KLINIKUM Group Economic Report Forecast Report Opportunities and Risk Report Reporting pursuant to section 315 (4) HGB CONSOLIDATED FINANCIAL STATEMENTS Content Consolidated Balance Sheet Consolidated Income Statement Consolidated Statement of Comprehensive Income Statement of Changes in Equity Statement of Cash Flows Notes Responsibility Statement Independent Auditor’s Report SUMMARY REPORT OF RHÖN-KLINIKUM AG Balance Sheet and Income Statement Proposed Appropriation of Profit FURTHER INFORMATION Independent Auditor’s Report on Non-Financial Reporting Financial Calendar, Legal Notice (Impressum), Disclaimer 1 2 6 18 21 22 45 47 59 65 66 72 73 74 76 77 78 79 80 146 147 153 154 155

LETTER TO SHAREHOLDERS Dear Ladies and Gentlemen, Dear Shareholders, Chairman of the Board of Management Dr Christian Höftberger The year 2020 will be forever etched in our memories. It was a year when a virus changed the world. And even a year later there is still no end in sight to the COVID-19 pandemic. We as providers of healthcare services have been working under these extraordinary and often difficult conditions to provide the best possible care to all our patients. The performance of hospitals in coping with this pandemic for the well-being of all patients cannot be overstated, for the simple reason that at the beginning of 2020 no one was able to foresee a global a global coronavirus pandemic and the consequences it would unleash. I would therefore like to take this opportunity to thank the entire team of RHÖN- KLINIKUM AG: the doctors, nursing and supporting staff, therapists as well as all employees working in our service, technical and administrative areas. You have all earned our special tribute and recognition. This rings all the more true as even now it is clear that the persisting pandemic situation will continue to weigh heavily on hospitals for the foreseeable future in 2021 as well. The pandemic not only meant a significantly lower capacity utilisation at many hospitals in 2020 but also resulted in elective procedures and non-urgent treatments being postponed to keep beds free for COVID-19 patients and to implement the new, more stringent (hygiene) requirements. At the same time, however, we also saw a huge increase in our personnel and material requirements, including for the extensive hygiene protection measures. At our five hospital sites of university as well as maximum and intermediate care, we looked after many patients with COVID-19. We took care of them often for many weeks, and even months, with the utmost dedication and empathy, whilst ensuring compliance with the additional stringent safety measures without exception – even if, fortunately, not all patients were so ill that they had to receive intensive care. 2 RHÖN-KLINIKUM AG | Annual Report 2020

LETTER TO SHAREHOLDERS In principle, we therefore welcome the current commitment by the German Chancellor and the Minister Presidents to secure the revenues of the hospitals for full year 2021, but emphasise that when it is actually implemented the value of such declaration of intent will be measured by the criteria of its pragmatism, its binding character and how quickly it is implemented. Together, we can confront and conquer the challenges ahead. Reducing full-year relief mechanisms versus financial year 2019 whilst at the same time also applying other reimbursements is not only not sufficient, but also literally pulls the rug out from under hospitals’ feet. The urgently needed planning certainty to ensure provision of med- ical care is being torpedoed, contrary to the commitments made. The suggestion here is that hospitals had enriched themselves during the pandemic. Dear Ladies and Gentlemen, with a consolidated profit of roughly 2.5 million euros and the income of roughly 94 million euros recognised in that figure in connection with COVID-19 legislation, the absurdity of such claims becomes clear. This cannot help but create the impression that the pandemic is being used to bring about a cold market shake-out. That is neither medically nor morally acceptable. It is not least for this reason that we also reaffirm our demand for a sustainable expansion of investment funding. Federal, state and local government authorities must define a new path forward for objective implementation of investment financing of the healthcare system, independent of federal responsibilities. In this context, the existing divisions relevant in government grants along outpatient and inpatient lines must be abolished and thus overcome. 2020 was a challenging year for us, both medically and economically. Despite the decline in patient numbers by 6.0 per cent to 808,655 due to the coronavirus, RHÖN-KLINIKUM AG raised revenues over the past financial year. Compared with the same period of the previous year, revenues grew by 4.3 per cent to roughly 1.36 billion euros. EBITDA fell to 80.2 million euros. The trend in revenues and EBITDA was thus in line with the forecast. The EBITDA margin was 5.9 per cent. Taking account of higher depreciation/amortisation and financing costs, EBITDA resulted in consolidated profit of 2.5 million euros, which as expected was down from 44.5 million euros in the previous year. #togetherevenstronger Not least, the pandemic has once again driven home to us the need for a fundamental transformation, not only of hospital structures but also of the structures in the healthcare system as a whole. But in order to bring about such changes, a new legal framework is needed. All service providers must be integrated into a single healthcare network based 4 RHÖN-KLINIKUM AG | Annual Report 2020

REPORT OF THE SUPERVISORY BOARD Dear Shareholders, Dear Ladies and Gentlemen, Chairman of the Supervisory Board Dr Jan Liersch In the following we, as the Supervisory Board, report to you on the work of the Supervisory Board and its committees during financial year 2020. as well as the preparation of a statement to be submitted by the Supervisory Board. The work of the Supervisory Board in financial year 2020 was very decisively dominated by the takeover of RHÖN-KLINIKUM AG by Asklepios Kliniken GmbH & Co. KGaA (Asklepios KGaA). Against this backdrop, we report on this special subject below first of all in summary form. The takeover has also resulted in an extensive change in the shareholders’ representatives making up the Super- visory Board. For details on this, please refer to the overview at the end of this report. Takeover of the Company by Asklepios KGaA On 28 February 2020, Asklepios KGaA published its decision to make a voluntary, public takeover offer to purchase all shares in RHÖN-KLINIKUM AG. This was then followed by the publication of the offer document on 8 April 2020. In a total of three meetings in March and April 2020, the Super- visory Board thoroughly examined the offer and its impact on the Company. The takeover offer of Asklepios KGaA was discussed at the regular meeting of the Supervisory Board for the first time on 19 March 2020. After the announcement of the takeover offer, the plenary meeting discussed the stage reached, the further course of the takeover procedure and the duties incumbent on the cor- porate bodies of the Company, in particular the Supervisory Board. Furthermore, a resolution was adopted for the Supervisory Board to seek legal advice in connection with the expected takeover offer After that the Supervisory Board, on 11 and 21 April 2020, held two extraordinary meetings on the takeover procedure. At the meeting on 11 April 2020, the Supervisory Board discussed the further steps to be taken to draw up a reasoned statement by the Supervisory Board on the takeover offer, and in preparation for the statement established a Special Committee in accordance with the principle of equal representation. The Supervisory Board moreover resolved to retain the investment bank Jefferies International Limited to draw up a Fairness Opinion regarding the takeover offer. The members appointed to the Special Committee tasked with preparing for the statement of the Supervisory Board were Mr Jan Hacker, Mr Oliver Salomon, Mr Georg Schulze (formerly Schulze-Ziehaus) and Dr Katrin Vernau. The Special Committee met several times before adopting the resolution of the Supervisory Board on the reasoned statement at its meeting on 21 April 2020. At the meeting of the Supervisory Board on 21 April 2020, the Spe- cial Committee first reported on its work relating to the statement including its work with Jefferies and the legal advisor. The Super- visory Board then discussed in detail the wording of the statement and in particular the exhaustive assessment of the takeover offer contained therein as well as the submission of a recommendation to the shareholders. On 22 April 2020, the Supervisory Board then submitted its reasoned statement on the takeover offer by Asklepios KGaA and in the end issued a majority recommendation 6 RHÖN-KLINIKUM AG | Annual Report 2020

REPORT OF THE SUPERVISORY BOARD As a result of Mr Stephan Holzinger resigning his Board of Man- agement mandate, the Supervisory Board, at the meeting on 9 July 2020, deliberated on the expansion and future composition of the Board of Management. Furthermore, the Supervisory Board, after the changes on the Supervisory Board, adopted a resolution on filling vacancies on the committees. With a view to the ordinary Annual General Meeting on 19 August 2020 the Supervisory Board, at its meeting on 9 July 2020, gave its approval to holding the Annual General Meeting as a virtual meeting and adopted the agenda. The Board of Management and the Supervisory Board decided not to maintain the originally communicated profit appropriation proposal to the Annual General Meeting and instead proposed to the Annual General Meeting, given the ongoing uncertainty with respect to the further impact of the COVID-19 pandemic and the additional financial burdens resulting from the public takeover offer on the Company’s earnings and liquidity position, to carry forward the amount of the net distributable profit fully. Given the elections to the Supervisory Board that were regularly due to take place at the 2020 Annual General Meeting, the Supervisory Board submitted nominations taking account of the changed ownership structure. Lastly, an amendment to the Articles of Association regarding the remuneration of the Supervisory Board was proposed to the Annual General Meeting. The revision of the provision in the Articles of Association takes account of the changed situation of the Company following the takeover by Asklepios KGaA and results in a lower remuneration of the members of the Supervisory Board. At the meeting on 10 August 2020, the Supervisory Board once again examined the expansion of the Board of Management and resolved to appoint Dr Höftberger with effect from 15 August 2020 and Dr Stefan Stranz with effect from 1 September 2020 as further members of the Board of Management. At that time, no Chairman or CEO of the Board of Management was appointed since the Super visory Board first wanted to observe the commencement of the cooperation by the newly constituted Board of Management. Mr Eugen Münch left the Supervisory Board on conclusion of the Annual General Meeting on 19 August 2020. As Generally Authorised Representative, however, Mr Eugen Münch will continue to be avail- able to the Company with his expertise for the next five years based on an agreement approved by the Board of Management and the Supervisory Board of the Company. Following the Annual General Meeting, the newly constituted Supervisory Board on the same day came together at its constituent meeting to elect the Chairman of the Supervisory Board and its two deputies as well as to fill the vacancies on the Supervisory Board committees. For details on this, please refer to the list under II. at the end of this report. To ensure the ability of the Supervisory Board to act, the formerly applicable Terms of Reference were confirmed. Moreover, the Supervisory Board adopted a resolution of principle on the independence of its members within the meaning of the German Corporate Govern- ance Code in which it stated that (i) no shareholder representative shall have personal or business ties to the Company or its Board of Management establishing a material and not temporary conflict of interests, (ii) the Supervisory Board shall moreover have at least two members who are independent of the controlling shareholder, and (iii) the Super visory Board, giving due regard to the ownership structure on the shareholder side, shall thus have a number of independent members which it deems to be reasonable. Lastly, the Management Board service contracts with the new members of the Board of Management, Dr Höftberger and Dr Stranz, were examined and approved at this meeting of the Supervisory Board. Based on these statements on the examination of the Supervisory Board of the takeover procedure, which – besides coping with the impact of the COVID-19 pandemic – was a key development for the Company during the past financial year, we would like to provide you below, dear shareholders, with an overview of the regular work of the Supervisory Board in financial year 2020. Cooperation between Supervisory Board and Board of Management During financial year 2020 also, the Supervisory Board examined on an ongoing basis and in detail the situation and development of the Company, fully performing the duties incumbent on it by law, the Articles of Association and the Terms of Reference. These include continuously monitoring management activity and reg- ularly advising the Board of Management in connection with the directing of the Company. At the same time the Supervisory Board, in performing its duties, was at all times guided by the decisive principles of appropriateness, compliance with legal provisions, expediency and efficiency. Observance of these principles by the Board of Management was monitored by regularly reviewing the Company’s general organisation and verifying the instruments used for internal risk control. The Supervisory Board was involved in fundamental and im- portant decisions taken by the Board of Management of RHÖN-KLINIKUM AG. The Board of Management complied with its information duties, keeping us informed on a timely basis both in written form and orally, with documents and records of relevance for decisions being provided to the Supervisory Board in good time prior to the respective deliberations and formal meetings. The Supervisory Board reviewed the reporting and the information submitted by the Board of Management regarding strategic and operative business performance, compliance issues as well as risks and risk management for plausibility and compre- hensibility, advised the Board of Management, discussed issues of development comprehensively with the Board of Management and also scrutinised the same whenever appropriate. Mr Eugen Münch and later Dr Jan Liersch, as Chairman of the Super- visory Board, moreover engaged in a regular exchange of informa- tion and ideas with all members of the Board of Management – also 8 RHÖN-KLINIKUM AG | Annual Report 2020

REPORT OF THE SUPERVISORY BOARD of the auditor to be submitted to the Annual General Meeting and – after the election – issued the auditor with the audit mandate and concluded with him a reasonable fee agreement for the same. The statutory auditor moreover reported to the Committee on orders for services performed in addition to the auditing services rendered. The qualification of the statutory auditor was monitored by the Commit- tee. A list of audit items was once again prepared and defined for the audit in 2020. At several meetings the Committee moreover conducted a thorough- going review of the selection of a new statutory auditor from financial year 2021 and lastly submitted a recommendation and preference to the plenary meeting of the Supervisory Board. Questions of fundamental importance relating to accounting, cor- porate planning, the capital base, the supervision of the account- ing process as well as the effectiveness of the internal controlling system, risk management system (including special business risks) and the internal audit system were discussed with the Board of Management and in some cases also with the statutory auditor. The interim reports were thoroughly discussed on a regular basis with the Board of Management prior to their publication, as well as the half-year financial report with the Board of Management and in the presence of the statutory auditor giving due regard to the review by the latter. The Group controlling report on performance and finance con- trolling submitted quarterly, which forms part of our risk man- agement system, was thoroughly discussed in each case with the Board of Management. Here, the development of service volumes and earnings of the Group and of the individual Group hospitals was also analysed, questioned and discussed with the Board of Management, also with regard to deviations from targets. The body kept itself regularly informed about the activity of the Internal Auditing department by the responsible member of the Board of Management and by reports submitted by the head of Internal Auditing, and examined the auditing plan for 2020 as well as its update. The auditing plan for 2021 was approved. The audit reports of the Internal Auditing department as well as the 2019 activity report were then submitted and discussed with the Board of Management. We kept ourselves informed by the Board of Man- agement on the implementation of the recommendations by the Internal Auditing department through information on the results of follow-up reporting and inspection. We once again satisfied ourselves of the effectiveness of the Internal Auditing department. For the non-financial declaration at the Company level and Group level to be submitted in the form of a separate condensed non-financial report for 2020, the Committee once again adopted a resolution on the performance of a voluntary external audit. The audit assignment was issued on the basis of an offer and by fee agreement to the statutory auditor, PwC. The Committee for Compliance and Communication serves to advise and supervise the Board of Management and senior execu- tives with respect to compliance with legal and other provisions as well as with regard to communication by the Company with the media and the capital market. If a member of the Board of Manage- ment is involved in a compliance matter, the Committee clarifies the facts and reviews the actions to be taken by the Supervisory Board. To ensure close and non-bureaucratic coordination with the Audit Committee, which among other things is responsible for supervising the Internal Auditing department, the Chairman of the Committee for Compliance and Communication is assigned a seat on the Audit Committee. The Committee met twice in 2020. In the area of compliance the Committee was informed of currently planned legislation (Corporate Sanctioning Act (Verbandssanktionengesetz), whistle-blower guide- line) and the new version of the German Corporate Governance Code. As reported by the head of the Central Compliance depart- ment, the Committee also examined current compliance matters in the Group. In the area of corporate communications, the Board of Management informed that corporate communications had focused primarily on the takeover offer by Asklepios KGaA and the COVID-19 pandemic. In addition, the Committee was informed of activities in the area of investor relations. The Medical Innovation and Quality Committee provides the Board of Management with technical advice on developments and trends in medicine and monitors the situation and development of medical quality within the Company. The Committee held one meeting during the year under review. The Nomination Committee, which selects candidates from the shareholders’ representatives for Supervisory Board office and pro- poses them to the Supervisory Board, held two conference calls in financial year 2020 for the election of the shareholders’ representa- tives at the 2020 Annual General Meeting. During the reporting period, eleven plenary Supervisory Board meetings were held. The members of the Board of Management for the most part attended the meetings of the Supervisory Board except in the case of agenda items relating to internal matters of the Supervisory Board and matters pertaining to the Board of Management. The reporting below is limited to those meetings or to the content of meetings which have not already been presented in the foregoing in connection with statements on the takeover procedure. At the meetings of the Supervisory Board the plenary session, based on detailed reports of the Board of Management on current developments, strategic issues and the financial position of the Group, as well as based on the written reports and presentations 10 RHÖN-KLINIKUM AG | Annual Report 2020

REPORT OF THE SUPERVISORY BOARD At the meeting on 11 December 2020, the Board of Management and the Supervisory Board informed on the economic trend and submitted an outlook for the upcoming financial year. The Super- visory Board approvingly took note of the (in view of the impact of the COVID-19 pandemic, preliminary) 2021 economic plan and the 2021 investment plan submitted by the Board of Management. Moreover, at this meeting the Supervisory Board resolved to set the target for the proportion of women on the Board of Management to 0% until 30 June 2022. This stipulation was necessary because of the terms of the employment contracts of the members of the Board of Management currently holding office, on the one hand, and the desire to synchronise the decisions of the Board of Man- agement and the Supervisory Board on specifying targets for the proportion of women on the Board of Management and the two management levels below the Board of Management, on the other. Examination and approval of the 2020 financial statements The Board of Management adopted the financial statements of the Company and the management report for the year ended 31 December 2020 in accordance with the provisions of the German Commercial Code (HGB), while the consolidated financial statements and Group management report for the year ended 31 December 2020 were adopted pursuant to section 315e of the German Commercial Code (HGB) in accordance with the principles set out in the International Financial Reporting Standards (IFRS). The auditors, PricewaterhouseCoopers GmbH Wirtschaftsprüfungs- gesellschaft, Frankfurt am Main, have examined the financial state- ments of the Company and the management report as well as the consolidated financial statements and Management’s consolidated report for the year ended 31 December 2020. The auditors of the accounts issued an unqualified auditor’s report in each case. The financial statements of the Company and management report, the consolidated financial statements and the Group management report as well as the reports of the auditors on the result of their audit were received by all members of the Supervisory Board together with the management’s proposal for the appropriation of the net distrib- utable profit for the year. These documents were examined by the Supervisory Board and extensively discussed by the Audit Committee and by the Supervisory Board with representatives of the auditors at the respective balance sheet meetings. As part of the audit, the Audit Committee and the Supervisory Board examined both the accounting findings and the procedures and processes relating to the accounting findings. As the standard of their review, they primarily applied the criterion of legality and verified whether the documents submitted comply with legislation in force and in particular with applicable accounting rules. Furthermore, in addition to their review of legality they also conducted an expediency review in terms of accounting, financial and business policy aspects. Based on the findings of the preliminary review by the Audit Committee, the Supervisory Board concurred with the findings of the auditors and, having conducted its own review, determined that it sees no grounds for objections. The Supervisory Board approved the financial statements of the Company and the consolidated financial statements prepared by the Board of Management at the meeting on 24 March 2021 on the recommendation of the Audit Committee; the financial statements of the Company are thus adopted as final. The Supervisory Board approved the Board of Management’s pro- posals for the appropriation of net distributable profit. Review of separate condensed Non-Financial Report The Audit Committee and the Supervisory Board have furthermore examined the separate condensed non-financial report prepared with the Board of Management for 2020. The auditing firm PricewaterhouseCoopers GmbH has conducted a review to obtain limited assurance and has issued an unqualified report. The docu- ments were carefully reviewed by the Audit Committee at its meet- ing on 23 March 2021 and by the Supervisory Board at its meeting on 24 March 2021. The Board of Management thoroughly explained the report at both meetings. Representatives of the auditor attended the meetings and reported on the key results of their review and answered additional questions from the Supervisory Board members. After its review, the Supervisory Board had no objections. Audit of the Report on Relations to Affiliates By reason of the execution of the takeover by Asklepios KGaA and in the absence of a controlling agreement, a Report on Relations to Affiliates pursuant to section 312 AktG was to be prepared by the Board of Management of the Company for the first time in the past financial year (also known as dependent company report). This report must state all legal transactions effected by the Company in the past financial year with the controlling enterprises or enter- prises affiliated with it or at the request or in the interests of such enterprises, and all other measures it has taken or refrained from taking in the past financial year at the request or in the interests of such enterprises. The performance effected and consideration paid must be stated for the legal transactions and the reasons for the measures and their advantages and disadvantages entailed for the Company and, in the case of disadvantages, how such disadvan- tages have been offset. PwC, as statutory auditor, audited the report of the Board of Management on relations to affiliates and issued the following auditor’s opinion: “Based on our duly performed audit and assessment, we hereby confirm that 1. the factual statements of the report are true, 2. for the legal transactions as specified in the report, the con- sideration paid by the Company was not unduly high, 3. for the measures specified in the report, there are no circum- stances supporting an assessment materially different from the one given by the Board of Management.” 12 RHÖN-KLINIKUM AG | Annual Report 2020

REPORT OF THE SUPERVISORY BOARD OVERVIEW OF THE ORGANISATIONAL STRUCTURE OF THE SUPERVISORY BOARD AND COMPOSITION OF THE STANDING COMMITTEES Period of 1 January to 19 August 2020 (until conclusion of the Annual General Meeting) 1. Composition of the Supervisory Board Eugen Münch Chairman Georg Schulze (formerly Schulze-Ziehaus) 1st Deputy Chairman Wolfgang Mündel 2nd Deputy Chairman Members Dr Annette Beller (until 3 June 2020) Peter Berghöfer Dr Julia Dannath-Schuh (from 3 June 2020) Prof. Dr Gerhard Ehninger Jan Hacker Klaus Hanschur Stefan Härtel Meike Jäger Dr Jan Liersch (from 3 June 2020) 2 (of 2) Dr Brigitte Mohn Eugen Münch Wolfgang Mündel Christine Reissner Oliver Salomon Evelin Schiebel Georg Schulze Dr Katrin Vernau (until 3 June 2020) Natascha Weihs 7 6 6 7 8 8 8 6 (of 6) 8 Number of meetings: 8 Attendance 6 (of 6) 8 2 (of 2) 8 8 8 8 7 100% 100% 100% 100% 100% 100% 100% 88% 100% 88% 75% 75% 88% 100% 100% 100% 100% 100% 14 RHÖN-KLINIKUM AG | Annual Report 2020

REPORT OF THE SUPERVISORY BOARD OVERVIEW OF THE ORGANISATIONAL STRUCTURE OF THE SUPERVISORY BOARD AND COMPOSITION OF THE STANDING COMMITTEES Period of 19 August (from conclusion of the Annual General Meeting) to 31 December 2020 1. Composition of the Supervisory Board Dr Jan Liersch Chairman Georg Schulze (formerly Schulze-Ziehaus) 1st Deputy Chairman Hafid Rifi 2nd Deputy Chairman Members Peter Berghöfer Dr Julia Dannath-Schuh Regina Dickey Peter Ducke Prof. Dr Leopold Eberhart Prof. Dr Gerhard Ehninger Irmtraut Gürkan Kai Hankeln Dr Jan Liersch Dr Martin Mandewirth Nicole Mooljee Damani Dr Thomas Pillukat Christine Reissner Hafid Rifi Oliver Salomon Georg Schulze Number of meetings: 3 Attendance 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 16 RHÖN-KLINIKUM AG | Annual Report 2020

THE RHÖN-KLINIKUM SHARE The RHÖN-KLINIKUM share In 2020 the share of RHÖN-KLINIKUM AG was particularly marked by the takeover offer by Asklepios Kliniken GmbH & Co. KGaA and ended the stock market year at a Xetra® closing price of 16.50 euros. Performance of RHÖN-KLINIKUM share After the equity markets rose in 2019, the global stock markets came under pressure from the end of February 2020 as a result of the COVID-19-pandemic and in some cases sustained heavy losses. The geo- and macropolitical distortions brought about by pandemic had much less impact on the price of the RHÖN-KLINIKUM share as a result of the takeover offer. Thus, the price of the RHÖN-KLINIKUM share in the first half of 2020 was marked decisively by the takeover offer of Asklepios Kliniken GmbH & Co. KGaA of 18.00 euros per share. The RHÖN-KLINIKUM share reached its high for the year of 18.56 euros on 21 April 2020. The share of RHÖN-KLINIKUM AG closed the first half of 2020 at a Xetra® price of 18.16 euros, having risen by 3.9 per cent. Over the second half of the year, the price of the RHÖN-KLINIKUM share declined slightly before stabilising in the course of the fourth quarter at a level of roughly 16.50 euros, and RHÖN-KLINIKUM AG also ended the stock market year 2020 at a Xetra® closing price of 16.50 euros. RHÖN-KLINIKUM SHARE IN COMPARISON in % 120 110 100 90 80 70 60 in € 21 19 17 15 13 11 Jan. Feb. Mar. Apr. May Jun. Jul. Aug. Sep. Oct. Nov. Dec. RHÖN-KLINIKUM share SDAX® Source: Xetra®-indexed (2 January 2020 = 100) 18 RHÖN-KLINIKUM AG | Annual Report 2020

THE RHÖN-KLINIKUM SHARE Prime Standard and indices membership The RHÖN share continues to be admitted in the Prime Standard of the Frankfurt Stock Exchange, the segment with the highest post-admission obligations for exchange-listed companies, and thus also continues to uphold the highest level of transparency. Since under the rules of Deutsche Börse a minimum free float of 10.0 per cent is required to remain in the SDAX® and this criterion is no longer met after conclusion of the takeover offer, the share of RHÖN-KLINIKUM AG, as expected, left the SDAX® Index on expiry of 13 July 2020. However, the RHÖN share remains in the indices CDAX composite index and in the sector index DAXsector Pharma+Healthcare. Capital market communication RHÖN-KLINIKUM AG is committed to transparent and fair commu- nication. That is why investor relations (i.e. the dealings it has with the shareholders) take high priority for RHÖN-KLINIKUM AG. As part of its financial market communication, RHÖN-KLINIKUM AG therefore again strived in 2020 to convey a realistic picture of the Group. For that purpose, RHÖN-KLINIKUM AG makes available to investors, analysts and all other interested market participants a platform with comprehensive and timely information. Moreover, RHÖN-KLINIKUM AG seeks a direct, ongoing and personal dialogue with investors and analysts. As part of its financial reporting, RHÖN-KLINIKUM AG reports on operating business performance each quarter. Investors, analysts and the media are provided with current and share price-relevant information on the Group in real time and directly. Moreover, this information is published promptly as news items on the Company’s website. Further sources of information are the regular annual events such as the analyst conference, the results press conference and the Annual General Meeting. The next Annual General Meeting will be held on Wednesday, 9 June 2021. DATES FOR SHAREHOLDERS AND ANALYSTS IN 2021 25 March Results press conference: publication of 2020 Annual Report 6 May Publication of interim report for the quarter ending 31 March 2021 9 June Annual General Meeting 5 August Publication of half-year financial report as at 30 June 2021 11 November Publication of interim report for the quarter ending 30 September 2021 You will also find the financial calendar containing all important financial dates for 2021 on the website at https://en.rhoen-klinikum-ag.com under the “Investor relations” section. 20 RHÖN-KLINIKUM AG | Annual Report 2020

Assuming our responsibilities We gladly take on our wide range of respon- sibilities arising from our role as a provider of healthcare services, an employer and a company. This reflects medical, ecological and social aspects. We establish the highest standards for the quality of our medical services and are committed to sustainability in all its many facets. For example, we create a sound environment for our patients, em- ployees, business partners and investors, whilst at the same time securing our future on a sustainable basis. 22 RHÖN-KLINIKUM AG | Annual Report 2020

CORPORATE RESPONSIBILITY | Corporate Social Responsibility Report | Sustainability Management and Organisation Material subjects | For us the year 2020 was dominated by two extraordinary events – the COVID-19 pandemic and the beginning of the strategic partnership with Asklepios. For this reason we postponed the originally planned per- formance of a new materiality analysis to 2021. Instead, we reviewed the subjects identified in the comprehensive materiality analysis from 2017 internally with the respective departments and the Board of Manage- ment for up-to-dateness. In the review, the following four items within the aspects of social and employee matters were confirmed as material within the meaning of the German CSR Directive Implementing Act (Richtlinie-Umsetzungsgesetz, CSR-RUG) and thus as being subject to reporting: – Patient well-being – Network medicine – Training – Continued and higher-qualification training | These subjects are required both for understanding the business performance, results of operations or the position of the Company and for understanding the impact of the business operations on the non-financial aspects. They are of special strategic importance for business development and represent areas of focus for us. We report in detail on the objectives, actions and results in the relevant sections as set out for you in the table below. | The review of the materiality analysis further confirmed that the aspects of environmental issues, respect of human rights and com- bating corruption and bribery are not material within the meaning of the CSR-RUG. For that reason, no concepts within the meaning of the German Commercial Code are reported with regard to these aspects. But since we regard both these items and the subject of supplier management as forming an important part of responsible corporate governance, we report on them voluntarily in this report. | NFR REFERENCING The first and fore- most concern for us is always our patients and their well-being. | You can find a detailed description of the materiality analysis procedure on page 41 of the 2017 Annual Report and in the 2018 Annual Report on pages 56/57. Non-financial risks | The Board of Management of RHÖN-KLINIKUM AG has imple- mented a Group-wide risk management system to detect imminent risks early on and to specifically counter them in a systematic process. At the same time, our risk management function relates not only to financial risks but also all manner of risks within the Company. We regard the risk posed to the life and health of our patients that a medical intervention fundamentally involves as the greatest risk. Aspect acc. to section 289 (2) HGB RHÖN-KLINIKUM AG item Reporting in section Social matters Employee matters Patient well-being Network medicine Training as well as continued and higher-qualification training Environmental matters Subjects not material as defined in law Medical excellence Employees Voluntary reporting in section “Environmental protection” Anti-corruption Respect of human rights Subjects not material as defined in law Voluntary reporting in section “Compliance” 24 RHÖN-KLINIKUM AG | Annual Report 2020

CORPORATE RESPONSIBILITY | Corporate Social Responsibility Report | Medical Excellence MEDICAL EXCELLENCE Constantly improving our medical excellence is something we see as one of our most important management tasks. The path to achieving this calls for interfacility structures. These allow us to press ahead with network medicine, introduce innovations and innovative processes as well as define and achieve quality at all levels. Control and organisation | Medical excellence is a crucial objective of our strategy. That is why we are constantly reviewing our activity in terms of how we can further improve the quality of our medical services. For example, under the direction of the Medical Board, we are constantly striving to further develop the following areas: interdisciplinary medical exchange. In return, it is assisted in its de- cisions by many departments and executive staff since medical ex- cellence affects all levels of the Group. Professional exchange for this takes place within the Medical Board and in the expert panels. Here there is a regular dialogue between the medical and commercial decision makers. – Network medicine and innovation – Medical process management – Patient safety, quality management and hygiene | The Board division Medical contributes its expertise, participates in the strategic development of the hospital sites and promotes their Fight against COVID-19 pandemic as field test | During the reporting period, the subject of COVID-19 with its many facets and impact on our organisational structures took up a great deal of our efforts. For example, as soon as the pandemic became known an interfacility task force was formed across sites which in some cases met several times a week for a discussion and | MEDICAL BOARD – ADVISORY BODY MADE UP OF TOP-RANKING PHYSICIANS Neurological medicine Cardiovascular medicine Oncology Outpatient medicine Musculoskeletal surgery Laboratory medicine MEDICAL BOARD Anaesthetics Quality and clinical risk management Intensive-care medicine Nursing management Psychiatry/ psychosomatics Expert panels Hygiene 26 RHÖN-KLINIKUM AG | Annual Report 2020

CORPORATE RESPONSIBILITY | Corporate Social Responsibility Report | Medical Excellence | To clearly define these overarching objectives, RHÖN-KLINIKUM AG set itself qualitative objectives for the two subjects of key im- portance defined in the CSR-RUG, “network medicine” and “patient well-being”, already in 2018. We steadfastly pursued these further dur- ing the past reporting period 2020. Both are closely connected and mutually complementary. Network medicine describes today’s need for professional healthcare service providers to engage in far- reaching cooperation. The objective is to achieve regional and integrated full-coverage care for our patients at one point of contact. We are steadfastly supplementing building blocks for implementing the in- creasingly important area of networked medicine. The RHÖN Campus approach and our activities in the area of telemedicine describe this central networking concept. | Objective for network medicine DIGITAL TELEMEDICINE Outpatient Inpatient DIGITAL TELEMEDICINE Continuous expansion of network medical care. Long-term objective: digital before outpatient before inpatient. | Objectives for patient well-being – Continuous improvement in medical quality – Further enhancement of patient safety through expansion of hygiene management and clinical risk management – Improvement in patient communication and patient services – Analysis and description of patient-relevant core medical processes During reporting year 2020, numerous measures taken by us have helped to achieve these goals. We describe these in detail in the following sections. Network medicine COVID Online app, made in Marburg | Under the direction of Prof Dr Martin Hirsch, the new COVID- Online app was developed at the University Hospital of Marburg. It enables users to perform a personal COVID-19 self-check to assess their likelihood of being infected and risk susceptibility, as well as to request help if required. Moreover, the app improves patient care in the cooperation between doctor’s practices, first responders and the university hospital because patient flows can be better managed. Outpatient care successfully expanded | During the 2020 reporting period, we moreover succeeded in forging ahead with the RHÖN Campus approach. Outpatient care at our site in Bad Neustadt has been further strengthened by the Outpatient Operation Centre (OOC). In the past financial year, some 2,000 patients were treated there by our physicians from all surgery and orthopaedic disciplines. Since 2020, community-based partners from the region also operate at the OOC. | Our outpatient offering at the Centre for Rare Diseases in Chil- dren and Juveniles at the University of Giessen has also been well received. Thanks to its specialisation, it is characterised by a higher level of expertise than a hospital or clinic treating only a few children or juveniles each year. Each of the young patients is treated in a long- term interdisciplinary process in which experienced paediatricians, neurologists, psychologists, physiotherapists, speech therapists, social workers and pedagogues work together. Psychosocial support to the families is also offered. A Centre for Immunodeficiencies has now also been established in Giessen. It is included in the FIND-ID-Netzwerk (network initiative for immunodeficiencies) and managed there as a specialist outpatient service. This enables the hospital / outpatient department to considerably enhance its visibility nationally while continuing to treat young patients to high quality standards. | At the beginning of January 2020, the Neuromedical Centre was put into operation at RHÖN-KLINIKUM Campus Bad Neustadt. To ensure the most comprehensive treatment and rehabilitation of patients possible, the Clinics for Neurosurgery, Neurology and Neuro- logical Intensive Care, Neurological Early Rehabilitation, Neurological Rehabilitation, as well as the Neurology Department based at the medical care centre (MVZ) work together here on an interdisciplinary basis in cooperation with the Clinic for Radiology and the Centralised Emergency Ward. We are convinced of the concept of the medical specialist centres. For this reason, we are already working together with the Radiology, Neuroradiology, Vascular Surgery and Cardiology Clinics to apply for the status as “Neurovascular Centre”. Since 1 April 2020, a cardiology practice has been part of the medical care centre (MVZ) Bad Neustadt. We thus can also offer cardiology services at this site on an outpatient basis. | During the reporting period we have also worked successfully in further developing Klinikum Frankfurt (Oder) based on the campus approach and expanding our range of outpatient medical services. The related medical care centre (MVZ) was expanded by a psycho- therapy offering for children and youth based on the special need in the region by a half KV seat. Furthermore, the physician associations (Kassenärztliche Vereinigungen, KVs) have granted their approvals for orthopaedic offerings in the Fürstenwalde branch practice as well as gynaecological treatments at a branch practice in the city area of Frankfurt (Oder). 28 RHÖN-KLINIKUM AG | Annual Report 2020

CORPORATE RESPONSIBILITY | Corporate Social Responsibility Report | Medical Excellence Research is the basis of our success. | On 24 September 2020, the RHÖN-KLINIKUM Campus Bad Neustadt was officially designated as a European Reference Centre for Cardiovascular Medicine. Here, national and international cus- tomers of Siemens Healthineers have the possibility of being given a demonstration on-site of how the most state-of-the-art imaging systems and solutions are used more efficiently in diagnosis, therapy and post-care in patients with cardiovascular diseases. Innovation and innovative processes | The maxim of our activity is to seek out and take new paths to achieve the goal of improving the medical quality of our services even further. In 2020 we began or continued several pilot projects. | To fight the COVID-19 virus, RHÖN-KLINIKUM AG is playing a deci- sive role in the research. Prof Dr Stephan Becker, director of the Institute of Virology of Philipps-University Marburg, is performing a clinical trial on vaccine development in cooperation with the University Hospital of Hamburg-Eppendorf (UKE). At the end of September 2020, a first phase with 30 subjects was launched which will provide insight into the tolerance and side effects of the vaccine. A second phase in which the tests are to be expanded to 180 to 700 subjects is likewise planned. | SPI stands for a platform for standardisation and optimisation of medical procedures which we implemented in 2019 at the University Hospital Giessen in the orthopaedics/trauma surgery department. In the course of 2020, we expanded its use to two operating theatres in orthopaedic procedures. During the operation, the operator controls the program using a foot pedal or a touchscreen. The high degree of standardisation and the digital illustration of each OR step resulted in a high quality of the operation outcomes. Moving forward, use of SPI is also being planned for sports medical procedures. | At the RHÖN-KLINIKUM Campus Bad Neustadt, the further de- velopment of SPI for use in electrophysiotherapy was started in 2019. Since 2020 the OR process navigation can now also be used in the new heart catheter laboratory for the first time. For that purpose, the program of the provider Surgical Process Institute (SPI) was further developed and optimised with our experts. This standardisation in the treatment of cardiac arrhythmia is currently unique in Germany. | As announced, we have subjected the processes in aortic-valve operations to a detailed transcatheter aortic valve implantation (TAVI) process analysis. From the derived measures, we succeeded in reduc- ing the duration of stay for this procedure. In 2020, another minimally invasive procedure was further developed at the RHÖN-KLINIKUM Campus Bad Neustadt using the catheter-based therapy for mitral valve defects which, like TAVI, does not require open-heart surgical intervention and allows the patient to recover more quickly. | Offering good training for young specialists is a recruiting oppor- tunity we use at RHÖN-KLINIKUM AG. During the reporting period, as- piring doctors at Uniklinikum Gießen und Marburg (UKGM) as well as at the Campus Bad Neustadt were given the opportunity to practise operative treatment methods for the first time on an ultra-modern operation simulator. | At the neurology department in Bad Neustadt we performed a cross-sector project in 2020 to record patient-reported outcome measures (PROMs). In this way we want to strengthen patient-cen- tred treatment as well as further improve the quality of treatment and medical processes. PROMs are measures recording the subjec- tive perspective of patients and their experience with medical care, thus supplementing objective clinical results. For the patient survey, a standardised, validated questionnaire is used which is available in the context of a cooperation agreement with Charité – Universitäts- medizin Berlin. The assessments are expected to be available at the beginning of 2021. During that time a further pilot project is being planned in orthopaedics. | Further progress was achieved in expanding the radiation therapy offering and in securing scientific and medical advances. The Marburg Ion Beam Therapy Centre (MIT) offers radiation therapy with carbon ions in addition to hydrogen ion radiation treatments. In the whole of Germany there is only one other clinic using this method with tumour patients. Preparatory studies paving the way for also treating patients with non-small-cell lung cancer using protons or carbon ions have al- ready been largely completed. We succeeded in fulfilling all legal regu- lations for commencement of these patient studies by the end of 2020. Cooperation schemes with renowned hospitals abroad moreover make us confident that the radiation therapy treatment offering of the MIT will in future be used for patients even well beyond national borders. 30 RHÖN-KLINIKUM AG | Annual Report 2020

CORPORATE RESPONSIBILITY | Corporate Social Responsibility Report | Medical Excellence already existing pandemic plans and on this basis to develop a per- fectly adapted strategy. Our interfacility coordination body (COVID-19 Task Force) made a decisive contribution to an exchange of ideas on measures for coping with the pandemic. This was supported by the new COVID-19 reporting system that documented the development at the sites and in the surrounding districts. | Our task is to protect our patients, visitors and employees from infections with pathogens as far as possible. Our measures taken for that purpose are recorded and monitored permanently and system- atically. This is done using a software program for hygiene surveillance used Group-wide. We compare the hygiene-relevant data recorded in the hospitals with national reference data, e.g. on the use of hand disinfectants, so that on that basis we can take improvement meas- ures. During the reporting year, we extended this software as planned. | By contrast, we did not implement the Antibiotic Stewardship Programme (ABS) as planned because with the COVID-19 pandemic it has been necessary to put other priorities first for the time being. Software-based clinical risk management | We give the highest priority to the safety of our patients. To that end we employ throughout the Group 35 clinical risk managers from different areas and professional groups. They exchange their insights in an interfacility expert group. From reporting year 2020 onwards we wanted to gradually introduce a software program for an internal er- ror reporting system – which also takes account of risk management – to identify relevant risks as well as establish and introduce measures for risk minimisation. Our strategic partner Asklepios is already using such software. At RHÖN-KLINIKUM AG we are currently looking at the possibility of using the software. | To steadily expand patient safety, we have moreover set out to conduct at each site a clinical risk audit based on a uniform check- list in 2021. The interfacility Risk Management Working Group has moreover initiated performance of the Stop-Inject project, aimed at preventing drugs from being confused. Patient communication | A good hospital is characterised not only by the high quality standard of its medical services but also the way it communicates with its patients and the quality standard of the service offering. We are steadily improving both criteria through very different measures. | The COVID-19 pandemic in its many facets was the dominating theme in patient communication in 2020. – Right at the beginning of the pandemic, we posted and continually updated important information on this subject at a prominent place on the website of RHÖN-KLINIKUM AG and the websites of the respective hospitals. – Within the hospitals we have provided comprehensive and updated information for patients. – In the RHÖN-Gesundheitsblog (health blog), content was prepared to be especially readable and easy to understand. – Our corporate communication has conducted numerous interviews with the respective experts of RHÖN-KLINIKUM AG. In addition to that, we have always informed the public about the respective situation of COVID-19 patient numbers at the various hospital sites in transparent form, as seen from the example of our chief medical officer, Prof Dr Bernd Griewing, with his YouTube videos. – In addition to communication externally, we have been providing our employees with comprehensive information on the COVID-19 situation within our hospitals by email, newsletters, intranet reports and other notices, supporting them with detailed employee guidance. | We also succeeded in improving our service offering for patients during the reporting period: we further expanded the patient service centre established in 2019 in Bad Neustadt in the course of 2020 and thus rolled out our digital services in 2020 to further disciplines and for select consultations. On the basis of these projects we were able to derive further technical requirements for 2021 targets, e.g. for technical depth integration. | Already from the middle of 2019, the Group website as well as the websites of our hospitals provide access to an interactive body compass. Using a representation of the body, users can inform them- selves about which facility focuses on what areas of treatment and how the quality of treatment in this regard compares with other facil- ities from the same German federal state or even nationally. Patients can also quickly find the right contact for their disease or symptoms. Given the high demand, the information offering is to remain a per- manent integral feature of communication with patients. 32 RHÖN-KLINIKUM AG | Annual Report 2020

CORPORATE RESPONSIBILITY | Corporate Social Responsibility Report | Employees | EMPLOYEES Employees (headcount) Employees (full-time positions) Female employees (headcount) Male employees (headcount) 2020 2019 Share of part-time employees, % Total Share of part-time employees, % 42.96 33.86 50.23 24.33 18,142 14,541 13,037 5,105 44.45 31.73 51.92 25.39 Total 18,449 14,579 13,272 5,177 Our objectives in employee area | For RHÖN-KLINIKUM AG two subjects are essential in terms of the CSR-RUG: continued and higher-qualification training and ongoing training. We approach these subjects strategically and set ourselves the following objectives: Objectives for continued and higher-qualification training – Qualitative expansion of continued and higher-qualification training programmes at the sites – Expansion of continued training of teaching staff Objectives for ongoing training – Qualitative enhancement of training – Continued positioning as attractive employer on employment/training market – Securing new nursing training | During the 2020 reporting period, we implemented numerous measures to achieve these goals. Continued and higher-qualification training | RHÖN-KLINIKUM AG continually invests in the development of its employees and promotes all professional groups represented within the Group with numerous continued and higher-qualification train- ing offerings. That is just as true for our nursing employees as it is for our doctors and therapists. Physicians, for example, have the option of obtaining supplementary qualifications and of being trained as spe- cialists at all the Company’s sites. Expenditure on ongoing, continued and higher-qualification training totalled roughly 2.85 million euros in 2020 – after over 4 million euros in the previous year. | Each hospital organises its higher-qualification training meas- ures itself, relying on its own budget for that. In this way the already existing partnerships with regional providers can be used for on- going, continued and higher-qualification training opportunities. In particular, though, this enables us to specifically identify the very specific qualification needs at the respective site and to take account of the continued training requests and suggestions of employees in the planning. | The COVID-19 pandemic has impacted human resources at RHÖN-KLINIKUM AG – both positively and negatively. On the one hand, the sense of “togetherness” of employees has been strengthened throughout the Group. On the other, the onset of the pandemic has seen a marked increase in organisational and administrative expenses and has tied a lot of capacities in the human resources departments. That meant delaying implementation of one or the other measure or even postponing it to 2021. For example, the executive staff conference on Group-wide higher-qualification training in the fields of management, communication and conflict management had to be cancelled at short notice. It is to be made up during 2021 with the participation of the Asklepios executive staff. Also the nursing summit successfully carried out in the past, to which the Board of Management traditionally invited medical directors, managing directors and nursing directors, could not go ahead in 2020. However, there continued to be an intensive dialogue between these groups of persons at all times in 2020. | It is very important for us to make sure our employees from all areas have access to high-quality higher-qualification training. At the end of October 2020, 24 nurses and physiotherapists completed their two-year course of higher-qualification training as respiratory therapists (DGP) at Zentralklinik Bad Berka. The higher-qualification course has been offered since 2006. One in five of Germany’s 800 respiratory therapists (DGP) was trained in Bad Berka. | The strategic partnership with Asklepios opens up additional prospects for improving the quality of continued and higher-qualifi- cation training on which we have held exploratory discussions in the course of 2020. For example, with our university hospitals in Giessen 34 RHÖN-KLINIKUM AG | Annual Report 2020

CORPORATE RESPONSIBILITY | Corporate Social Responsibility Report | Employees Switch to generalist nursing training concluded Rising attendance and level of digitalisation at our schools | As a healthcare Group, we operate several schools of our own to train qualified staff ourselves. These include for patient nursing, physio- therapy, ergotherapy, speech therapy, dietician services, and for medical assistance professions in the areas of functional diagnosis (MTAF), lab- oratory (MTLA), radiology (MTRA) and medical documentation (MDA). We are furthermore involved in training in business, gastronomic and IT fields. | As expected, we were also able to raise student numbers in the professional schools for ergotherapy and physiotherapy in Bad Neu- stadt. At the professional school for physiotherapy, we welcomed a total of 32 new students for the 2020/21 school year, compared with 17 persons having graduated. In the area of ergotherapy, there were 27 new admissions compared with 19 graduates. We attribute part of this success to the fact that, particularly in Bavaria, we pro- mote the tuition-free status of our schools introduced retroactively to February 2019. | In this regard, the ESB schools, unlike most competing institu- tions, refrain from charging graduates a monthly administrative fee of up to 75 euros – even despite being tuition-free. In addition to the quality criteria, that also plays a role for our trainees. | With the Care Professions Reform Act (Pflegeberufereformgesetz, PflBRefG), which entered into force at the beginning of 2020, the ex- isting geriatric, patient and paediatric nursing training programmes were unified into a single generalist nursing care training scheme. We already concluded our preparations for this in 2019, reaping the benefits from it already in financial year 2020: we were able to satisfy all legal requirements for the new professional nurse training pro- gramme and fully secure the training programme. | We received the state approvals for a school-specific curriculum that we developed on the basis of the framework syllabus. We also succeeded in entering into a collaborative training agreement at various sites with suitable partners from the region in which practice- oriented units can be completed. That is because, according to the curriculum, trainees spend only a little over half of the some 2,500 scheduled hours of their practical training at the hospital. During the rest of the time they work in external facilities such as retirement homes or social agencies with which RHÖN-KLINIKUM AG has entered into such framework agreements. In addition, we have set up a steer- ing group made up of members of the facilities and nursing schools cooperating within the collaborative training network to ensure not only the practical but also the formal and substantive interests of training to a uniformly high quality level. | Given the higher numbers of apprentices, we have expanded our nursing school in Bad Neustadt into a dual system offering dou- ble training sessions. In 2019 we thus offered two new courses for the first time – one in April, the second in October. We continued and expanded this model also in 2020: in September 2020, a total of 52 students started their generalist nursing training in two classes. APPRENTICES, TRAINING YEAR 1–3 Headcount 1,526 apprentices, total in 2019 716 163 26 7 475 139 1,734 apprentices, total in 2020 867 177 34 5 498 153 Female Male Apprentices, nursing professions (nurses, etc.) Apprentices, commercial professions Apprentices, other professions 36 RHÖN-KLINIKUM AG | Annual Report 2020

CORPORATE RESPONSIBILITY | Corporate Social Responsibility Report | Employees We carried out our programme for company health management at all hospital sites during the entire year. It includes for example courses on sports and nutrition as a way of preventing harm arising from unhealthy habits. To cope with crisis situations, we also ensured the availability of mediation or supervision offerings. Moreover, the programme “Gesund managen” (manage your health) took place at UKGM. It is intended primarily for executive staff, who can share the content with their employees. Increasing the level of safety in our hospitals is one of our primary concerns. We help do this for example with special training sessions on de- escalation. Particularly in the emergency ward, our employees or also patients are occasionally exposed to a sharp tone which we seek to handle in a professional manner. We love diversity During the reporting period, people from over 70 nations worked for our Group. Regardless of their age, gender, qualification or what their interests may be, they work on a team daily and perform out- standing work. The basis for that is respectful and fair dealings with one another. For us they are all a self-evident part of our day-to-day hospital activities. We are committed to such diversity and oppose discrimination or harassment in any form. We safeguard the principle of equal opportunities by filling positions exclusively on the basis of the qualifications of applicants. At RHÖN-KLINIKUM AG, roughly a third of executives at the three management levels below the Board of Management are women. We also make sure that our teams are made up of both young and experienced employees. Already since 2015, our nursing integration programmes in Bad Neustadt a. d. Saale and Giessen have opened up new professional opportunities for migrants. We hire nurses forced to flee from their home countries as nursing assistants at the hospital for an initial pe- riod of twelve months. They acquire the necessary language skills in the accompanying German language courses. We then work to have the original professional training of the employees recognised so that we can continue to employ them in the long term after they have completed the programme. Since the beginning of the first nursing integration programme, we have succeeded in recruiting more than 90 employees with professional and social skills for the two sites. In cooperation with our strategic partner Asklepios, we want to press ahead with recruiting foreign nursing staff. We are therefore pleased that since September 2020 we have employed a total of 43 nurses from the Philippines at UKGM. Some of them were previously given preparatory training at the Asklepios training centre in Darmstadt. After an intensive course in German, they completed an intensive, multi-week workshop “Working as a nurse in Germany”. This com- prehensive preparation made it much easier for them to adjust to day-to-day work at our university hospital. EXECUTIVE EMPLOYEES BY MANAGEMENT LEVEL IN 2020 Headcount 1st management level 2nd management level 3rd management level Total Total Female Male 47 240 1,150 1,437 11 69 537 617 36 171 613 820 We make it possible to harmonise working and family life We create the environment for our employees to succeed in harmo- nising their professional and personal life. We achieve this by ensuring the most flexible working hours possible. For example, our employees work under trust-based flexitime or part-time schemes. In 2020, 7,925 employees (roughly 42.96%) were employed part-time. We have en- tered into individual agreements for each site in which we take greater account of employees’ personal priorities. In this regard we rely on clear staff back-up rules, try to take personal requests into consideration and set up call services or relief employee pools. To the greatest extent possible, we also allow our employees to work from home. Our employees and their families benefit from an extensive offering allowing for the best possible harmonisation of professional and per- sonal life. For example, we run our own kindergartens or cooperate with facilities locally, and in the case of external continued training or a mandatory event provide individual care options. We also help relatives providing nursing care to cope with the requirements of their work and providing nursing care for their relatives. UKGM has been certified as a family-friendly employer already since 2009. In-house collective agreement and special benefits ensure fair compensation Fair remuneration has an influence on how satisfied our employees are. At the same time they benefit from our in-house collective agree- ments that we have negotiated with the social partners ver.di and Marburger Bund for our hospitals. Compared with the other collective wage agreements within the healthcare system, our employees for example enjoy high night-shift premiums exempt of tax and social insurance contributions as well as differentiated bonuses. 38 RHÖN-KLINIKUM AG | Annual Report 2020

CORPORATE RESPONSIBILITY | Corporate Social Responsibility Report | Compliance We monitor not only compliance with rules but also adapt the com- pliance rules as required. Our goal is to prevent such breaches from the outset by identifying and averting risks in good time. Adaptations may be occasioned by both internal incidents and information on compliance breaches at similar companies. Procedure for compliance reports Through our whistle-blower hotline, employees can report compliance breaches on an anonymous basis. The contact persons available for this are compliance officers at the hospitals, the head of the Central Compliance department, the Chairman of the Board of Management of RHÖN-KLINIKUM AG as well as the Chairman of the Audit Commit- tee of the Supervisory Board. If a compliance report is made through one of the aforementioned entities, it is sent immediately – regardless of the form used or the person sending it – to the Central Compliance department. The Central Compliance department and the person in charge of compliance (the compliance officer) then jointly review whether a compliance event exists. If required, they consult the In- ternal Auditing and Risk Management departments. If the investiga- tions reveal a sufficient suspicion of a breach, they initiate appropriate measures to make sure such breach does not happen again in future. Moreover, the team assesses the risk and level of damage and pre- pares a written report to the Chairman of the Board of Management of RHÖN-KLINIKUM AG. According to the provisions in the Rules of Procedure for Compliance, anyone suspecting a compliance breach may report the same either to the person in charge of compliance of his or her site or directly to the Central Compliance department. Raising awareness of data protection issues The General Data Protection Regulation (GDPR) and the resulting re- vised German federal and state rules on data protection have been in force since 25 May 2018. In addition to provisions on managing personal data in compliance with data protection legislation, they also include various new or amended requirements. In this context, the Board of Management of RHÖN-KLINIKUM AG adopted a data protection guideline which is adapted to the rules and regulations and addresses key points of the Regulation, presents the Company’s data protection law strategy, and sets out the organisational frame- work for employees. In addition to Group-wide statements, for example on data protection management, roles and responsibilities as well as consequences in the event of breaches of requirements of data protection legislation, the guideline also includes information on the operative implemen- tation, which is being adapted by the Group-affiliated facilities in the context of their own data protection concepts. The implementation of data protection-compliant actions is rounded off by manifold tech- nical and organisational measures. Internal and external audits help ensure compliance with the requirements and enable the measures established to be improved. In addition, employees and executive staff are given greater awareness of the lawful management of per- sonal data through web-based training and target group-based in-person training sessions. Our goal is to pre- vent such breaches from the outset by identifying and averting risks in good time. 40 RHÖN-KLINIKUM AG | Annual Report 2020

CORPORATE RESPONSIBILITY | Corporate Social Responsibility Report | Environmental protection We not only save electricity but also generate it with our own cogeneration plants. Given the state-of-the-art technology being planned in the invest- ments already under way, such as the modernisation of the bed fa- cilities at Klinikum Frankfurt (Oder) (project running until 2026) or the conversion of a former bed facility into an administrative building at the RHÖN-KLINIKUM Campus Bad Neustadt (project running until 2022), we are looking ahead to lower energy consumption in the future. At RHÖN-KLINIKUM AG, emissions are produced primarily in the form of carbon dioxide (CO2) from heat generation or from electricity pur- chases. By modernisation measures, energy efficiency improvements and by increasing the use of renewable energies, we seek to coun- teract this increase. To an extent exceeding the national average, the electricity purchased by us is from renewable energy sources. Intelligent LED lighting systems In all new buildings and extensions as well as in connection with modernisation measures, the ceiling lighting systems we install for the ward corridors exclusively use LED technology that can be centrally controlled. This allows us to control the illumination level and thus also energy consumption depending on the time of day based on energy requirements, and to operate the lighting system during the day at only around 65% of maximum strength. We are also gradually switching over the lighting systems of the outdoor facilities, car parks and pedestrian paths at our sites to dimmable LED lamps. Ceiling-cooled patient rooms On the RHÖN-KLINIKUM Campus Bad Neustadt, the patient rooms have been equipped with an especially energy-efficient cooling method. During the summer, the rooms are cooled by water lines set in the concrete slabs. The water is cooled down by a central cool- ing unit and additionally by lower outdoor temperatures, with the concrete of the floor slabs serving as a storage medium. It absorbs the cold at night and then releases it slowly to the surroundings over the day. During the winter, the system can be used in turn to heat the rooms by using heated water. Since the experiences with the innovative system have been positive, the technology is to be used more frequently in new buildings. Energy modernisation measures We not only save electricity but also generate it. For over 20 years, we have been pursuing efforts in generating energy using highly efficient cogeneration plants (CHPs) that supply electrical energy and heat by burning natural gas. In this way we reduce CO2 emissions at RHÖN-KLINIKUM AG. At the same time, we use this heat to generate the required cooling energy with absorption coolers. We thus save electrical energy that would otherwise be needed for cold generation. The potential for energy savings features very prominently in all modernisation measures we perform on our buildings. For example, at Klinikum Frankfurt (Oder) the water, heating, ventilation and cool- ing systems were insulated, the lighting replaced and the instrumen- tation and control technology modernised. In the refurbishment of Building 2.3 at the Bad Neustadt Campus, all required measures for modernising the building’s energy systems were taken. At the University Hospital of Marburg, efforts were primarily focused on a comprehensive heating system upgrade of Building 1. To optimise heat generation there, we are planning the future installation of an absorber as well as an additional cogeneration plant based on a combined cooling, heating and power plant (CCHP) concept. At the University Hospital of Giessen, an efficient steam generation system is to be installed jointly with the local utility (Stadtwerke Giessen) in the course of 2021. In all new construction and modernisation measures, we provide for redundancy and availability of the technical facilities to make sure we are ready for any failure of the external energy supply grid. Two emergency power generators per hospital ensure self-sufficiency in electricity for several days. With oil-operated back-up boilers, we moreover ensure a supply with sufficient heat and, where applica- ble, steam. A fresh drinking water supply is ensured at all times. We are thus able to ensure safe patient care in the event of protracted external supply failures. 42 RHÖN-KLINIKUM AG | Annual Report 2020

CORPORATE RESPONSIBILITY | Corporate Social Responsibility Report | Supplier management SUPPLIER MANAGEMENT We actively maintain our relationships to our suppliers. To obtain the highest quality of products at the best prices, we have centralised our supplier management activities for the entire Group and work together closely with the purchasing managers of the hospitals. This practice has proven itself since 2018. Over the years, what began as mere business relationships have grown into partnerships based on mutual trust. This means that our requirements in terms of quality, reliability and efficiency are per- fectly met. This is also helped by the annual evaluation of our main suppliers. In addition to that, we entered into a cooperation scheme with the purchasing department of our strategic partner Asklepios in October 2020. From this we hope to gain an even stronger bargaining position with our partners. Over the past years we have succeeded in steadily lowering the risk of supply shortages. This has been helped by our approach of work- ing together with at least two suppliers for each product group. We are usually able to bridge any short-term supply difficulties through inventory or alternative products (generics). We experienced an unprecedented exception to this when the COVID-19 pandemic swept through Europe, spreading at an in- creasingly rapid pace and causing demand for products to protect against the virus to skyrocket all over the world. Overnight, even our long-standing business partners were no longer in a position to sup- ply us with personal protective equipment such as surgical masks, surgical caps, FFP2 masks as well as protective gowns. However, we were able to ensure a sufficient supply by temporarily purchasing such items at significantly higher prices. The situation improved as production was resumed by businesses in Asia and German protec- tive masks became increasingly available. Uniform products ensure reliable availability Understandably, we want to use only those products which have proven themselves in clinical processes over the long term, are of high quality and can be purchased at acceptable costs. As the frank discussion amongst the materials management heads and in the medical expert panels has revealed, such standardisation does not lend itself to all products. Standardisation and harmonising of products was the subject of an intensive discussion within the Group in 2020 within the expert panels with the doctors as well as among the materials management heads. Standardisation has once again proven advantageous in the following medical areas: – Endoprosthetics (hips, knees, kyphoplasty) – Cardiology (pacemakers, defibrillators, heart valves, stents) – Anaesthetics (tubing, syringes and sensors) – Laboratory medicine (urine diagnostics, blood gas analysis, etc.) – Nursing area (urine measurement systems, OR drapes, suction- ing, dressing materials, infusion solutions, sanitary products, etc.) Hygiene products (water filters, disinfectants, etc.) In the non-medical area, we are pursuing for example the standardi- sation of office items or paper, harmonisation of service providers in the technical area as well as changing over our goods management systems to one uniform system for all hospital sites. Key goods categories of RHÖN-KLINIKUM AG are: – Drugs and blood products (blood supplies and blood coagu- lation factors) – Transcatheter aortic valve implants (TAVI) – Cardiac pacemakers and defibrillators – Stents – Endoprosthetics – Nursing items During the 2020 reporting period, we implemented digital supplier records in Group materials management as planned. This ensures that all necessary information is available in transparent form and from a centrally pooled source. 44 RHÖN-KLINIKUM AG | Annual Report 2020

Group Management Report During financial year 2020 we treated 808,655 patients in our hospitals and medical care centres, generating revenues of € 1,360.1 million, EBITDA of € 80.2 million and consolidated result of +€ 2.5 million. Financial year 2020 was particularly dominated by the COVID-19 pandemic as well as the takeover of RHÖN-KLINIKUM AG by Asklepios Kliniken GmbH & Co. KGaA. The operating result continues to be significantly influenced by increasing regu- latory intervention, a highly competitive environment and difficult conditions for recruiting qualified staff. 46 RHÖN-KLINIKUM AG | Annual Report 2020

GROUP MANAGEMENT REPORT | Basic characteristics of the RHÖN-KLINIKUM Group reporting requirements at the Company level and the Group level pursuant to the German CSR Directive Implementing Act (Richtlinie- Umsetzungsgesetz, CSR-RUG). a) Improving the quality of life The well-being of patients is the top priority for RHÖN-KLINIKUM AG. Ethical behaviour and providing excellent medical and therapeutic care and nursing of course form part of our corporate philosophy. We are committed to integrated care completely oriented to the needs of patients – at each individual facility as well as in cooperation with other facilities and sectors. By harmonising excellent medical care and economic efficiency we are securing the future of socialised healthcare provision in Germa- ny – a healthy hospital will also be around in the future, not just as a healthcare provider but also as employer and business from the region. In our strong healthcare network with a direct tie-in to uni- versity medicine, we specifically promote a professional exchange amongst our doctors and in nursing. With this knowledge transfer, we deliver cutting-edge medicine to the regions and thus secure access to advances in medical care also in rural regions. b) Protecting the environment A sound environment contributes to the well-being of our patients and the quality of life for everyone. For us, protecting the environment and being a conscientious steward of energy and water resources is inseparably bound up with responsible corporate governance. As a modern hospital group, we are committed to innovative technolo- gies in technical building equipment, promote the development of new standards in energy supply and at all sites invest in sustainable, energy-saving technology. c) Promoting and retaining employees As one of the largest private healthcare providers in Germany and an attractive employer with 18,449 employees, RHÖN-KLINIKUM AG relies on having excellent staff. It is only thanks to them that we offer above-average medical care based on the latest medical research. That is why continued and higher-qualification training are so impor- tant to us. We reach out to students early, run our own schools and train people for example in nursing, medical as well as commercial professions. We specifically promote the continued and higher-qual- ification training of all professional groups in the Group. A wide array of human resources development and promotion meas- ures as well as numerous offerings for balancing working and family life also make the Company an attractive employer and training entity, also nationally. For further information on Corporate Social Responsibility, reference is made to the separate non-financial report in accordance with section 315c in conjunction with sections 289c to 289e of the HGB in the Annual Report published on our website www.rhoen-klinikum-ag. com/annual-report. 1.3 Objectives and strategies With the takeover of RHÖN-KLINIKUM AG by Asklepios Kliniken GmbH & Co. KGaA, two innovative groups are joining forces for one mission: together, our objective is to develop and promote path- breaking concepts of healthcare delivery to ensure we can continue providing excellent medical care. Particularly in the context of an increasingly tighter regulatory and demographic environment in the hospital sector, we will strategically complement each other at all levels and act within the network. Under the common structure with Asklepios, we have created the ideal basis for meeting the challenges of our sector head-on and taking advantage of the Group’s economies of scale for each individual facility and hospital in the best possible way. Both companies are united by the mission of jointly developing and promoting trailblazing concepts of healthcare delivery to ensure we can continue providing excellent medical care. We are putting this strength to use – in the best interests of patients and employees – at all sites of the network. To this end – in addition to the targeted economies of scale includ- ing in the areas of purchasing, hospital information systems and discharge management – we are also focusing our joint efforts on further optimising clinical procedures and processes in the best interests of our patients. Our objective is to pursue new paths to uphold the standard of offer- ing patients the best medical care. Here, we can better respond to the changes and increasing requirements as compared with the market as a whole thanks to our large sites with highly specialised centres. In the future, too, we will vigorously and undauntedly pursue the nec- essary task of restructuring the healthcare system and implementing our corporate goals. To continue improving patient care along the lines of our campus approach with a view to ensuring cross-sector and viable healthcare provision in Germany in the future, we are currently also looking at innovative remuneration and care models. For example, it is our joint objective with Asklepios to further develop what is referred to as the capitation model as well as to expand intermediate care prevention for cardiovascular diseases. The capitation model is a flat remunera- tion scheme in which part of the insurance risks is transferred to the service providers who thus assume a co-responsibility within a region. In return, they are given a greater degree of freedom and receive a flat remuneration fee per insured person. The flat remuneration fee completely covers the care provided over a particular period of time. We are convinced that a switch to such a model will put greater em- phasis on both prevention and the efficiency of treatments. 48 RHÖN-KLINIKUM AG | Annual Report 2020

GROUP MANAGEMENT REPORT | Basic characteristics of the RHÖN-KLINIKUM Group non-current liabilities shown in the balance sheet are included under the source of long-term funds. This key ratio is to be at least 100%. Although given the personnel cost ratio of more than 50% the Group is frequently attributed to the services sector, our business model has a long-term focus and is initially investment-driven. With regard to the use of debt capital, we focus on the following management ratio for minimising risks: the aim is to limit the ratio between net financial debt (corresponding to financial liabilities less cash and cash equivalents) and EBITDA to a maximum 3.5 multiple. In addition to the financial key figures for growth in service volumes, we use further non-financial performance indicators to further develop the Company on a sustainable basis. The further non-financial perfor- mance indicators include quality assurance, occupational protection, patient surveys, human resources development and the subjects of energy and the environment. 1.5 Quality Every patient is entitled to the best possible medical care – every day, and around the clock. That is the central guiding principle of medical quality management and provision of medical services at RHÖN-KLINIKUM AG. Here, we strictly adhere to a comprehensive ap- proach, with clinical risk management, hospital hygiene and medical controlling representing the most important elements in this scheme. Regular exchange between disciplines covering similar medical sub- jects and “classic” quality management thus gives rise to a stable and viable system – the quality concept of RHÖN-KLINIKUM AG. To achieve this, comprehensive transparency is ensured by our qual- ity reports. The consistent publication of the results gives patients, relatives, referring doctors and health insurance funds the possibility of informing themselves extensively on the treatment quality of our hospitals. The Company understands quality management as an ongoing task which we deliberately and gladly take on. We are continually striving to further raise the quality of our care. That is the standard and yard- stick we apply to ourselves. For further information, reference is made to the separate non- financial report in accordance with section 315c in conjunction with sections 289c to 289e of the HGB in the Annual Report published on our website. 1.6 Medical research and its transfer into practice The continuous transfer of knowledge from research into daily clin- ical practice is key when it comes to providing excellent healthcare at RHÖN-KLINIKUM AG. Our hospitals work together in national and international research associations and projects and benefit from the close networking with the Company’s university hospitals in Giessen and Marburg. Thanks to this direct link to university maximum care and the direct access to university research findings, we can translate state-of-the-art scientific findings quickly and precisely into hospital care and competently deliver the same to the regions. Our hospital sites maintain an open scientific dialogue – whether as organisers of medical conferences, as partners in clinical trials and international research projects, as university teaching institutions or as providers of continued training measures for doctors. For further information, reference is made to the separate non- financial report in accordance with section 315c in conjunction with sections 289c to 289e of the HGB in the Annual Report published on our website. 1.7 Compliance Acting in accordance with legislation and Company-wide ethical standards, i.e. compliance, is of key importance for RHÖN-KLINIKUM AG and ultimately serves the well-being of our patients. We have a com- prehensive compliance management system in which the principles and rules of fair dealings with one another and responsible corporate governance are defined. To facilitate implementing this compliance management system in practice, we have developed a code of conduct that is binding on all employees as well as a recommended procedure. It enables every employee to pursue our corporate objectives in accordance with our values. For further information, reference is made to the separate non- financial report in accordance with section 315c in conjunction with sections 289c to 289e of the HGB in the Annual Report published on our website. 50 RHÖN-KLINIKUM AG | Annual Report 2020

GROUP MANAGEMENT REPORT | Basic characteristics of the RHÖN-KLINIKUM Group Corporate bodies The Board of Management and the Supervisory Board are constituted according to legislation governing German stock corporations. Un- der this regime the Board of Management directs the Company; the Supervisory Board advises the Board of Management and supervises its management activity. Members of the Supervisory Board and the Board of Management are appointed and dismissed in accordance with the provisions of stock corporation law (Supervisory Board: sec- tion 101 et seq. of the German Stock Corporation Act (Aktiengesetz, AktG); Board of Management: section 84 of the AktG) and the German Co-Determination Act (Mitbestimmungsgesetz, MitbestG). In line with the principle of equal representation of shareholders and staff pursuant to the German Co-Determination Act (Mitbestim- mungsgesetz) and the Articles of Association, the Supervisory Board of RHÖN-KLINIKUM AG comprises an equal number of employee and shareholder representatives (16) and held eleven meetings in 2020 (2019: five meetings). At the virtual Annual General Meeting on 19 August 2020, new elections for the Supervisory Board were held in which eight members of the shareholders stood for election. Dr Julia Dannath-Schuh, Prof Dr Gerhard Ehninger, Ms Irmtraut Gürkan, Mr Kai Hankeln, Dr Jan Liersch, Ms Nicole Mooljee Damani, Ms Christine Reissner as well as Mr Hafid Rifi were elected to the Supervisory Board. At the constituent meeting of the Supervisory Board, Dr Jan Liersch was elected as the body’s new chairman. The new election of the eight employee representatives was held on 22 July 2020. Here, Mr Peter Berghöfer, Ms Regina Dickey, Mr Peter Ducke, Prof Dr Leopold Eberhart, Dr Martin Mandewirth, Dr Thomas Pillukat, Mr Oliver Salomon and Mr Georg Schulze were elected to the Supervisory Board with effect from 19 August 2020. There was one change in the Supervisory Board after the end of financial year 2020: Prof Dr Gerhard Ehninger notified the Company in the middle of December 2020 that he is resigning his mandate as member of the Supervi- sory Board of the Company. He thus left the Supervisory Board on 15 January 2021. The Supervisory Board therefore resolved already in January 2021 on the recommendation of the Nomination Committee to nominate Mr Marco Walker, COO of Asklepios Kliniken GmbH & Co. KGaA Hamburg, and managing director of Asklepios Kliniken Manage- ment GmbH, for the election to be held at the 2021 Annual General Meeting, to succeed Prof Dr Ehninger as member of the Supervisory Board of RHÖN-KLINIKUM AG for the remaining term of office. The application by the Board of Management of the Company to the Local Court of Schweinfurt to appoint Mr Marco Walker as member of the Supervisory Board of the Company until the conclusion of the Annual General Meeting was made on 11 February 2021. The five-year term of office of the Supervisory Board ends upon conclusion of the Annual General Meeting resolving on the formal approval of the actions of the Supervisory Board for financial year 2024. The Terms of Reference of the Supervisory Board provide that only candidates who are not more than 75 years of age at the time of the election are to be nominated for election as members of the Supervisory Board. As at 31 December 2020, 31.3% of the Supervisory Board is currently comprised of women and 68.7% of men. The Terms of Reference of the Supervisory Board provide for the formation of committees. Until 5 November 2020 there were seven standing committees: the Mediation Committee, Person- nel Affairs Committee, Audit Committee, the Investment, Strategy and Finance Committee and the Committee for Compliance and Commu- nication as committees with power to adopt resolutions, as defined in section 107 (3) of the AktG, and the Nomination Committee and Medical Innovation and Quality Committee. As of 5 November 2020 there have been six standing committees: the Mediation Committee as well as the Personnel Affairs Committee, the Audit Committee and the Committee for Deciding on Transactions with Related Parties within the meaning of section 111a of the AktG (“Related Party Committee”) as committees with the power to adopt resolutions within the meaning of section 107 (3) AktG, as well as the Nomination Committee for candidates of the shareholders’ representatives and the Medical Innovation and Quality Committee. The respective committee chairman report at regular inter- vals to the Supervisory Board on the work of the committees. Terms of Reference have been adopted for the activities of the Board of Management as well as of the Supervisory Board, including cooperation between these two bodies, in which among other things the allocation of responsibilities within the Board of Management as well as within the Supervisory Board is regularly adapted to changing requirements. The Board of Management of RHÖN-KLINIKUM AG is responsible for directing the Company. In accordance with the Terms of Reference, its business operations are carried out under joint responsibility. The Board of Management reports regularly, without delay and compre- hensively to the Supervisory Board on all significant issues relating to the business development and position of the Group and its subsidiar- ies. Within the Board of Management, Mr Stephan Holzinger (chairman of the Board of Management) resigned his Board mandate and all other offices with immediate effect on 22 June 2020. The Supervisory Board approved the termination by mutual consent of the Board of Management service contract of Mr Stephan Holzinger with effect on 30 September 2020. On 10 August 2020 the Supervisory Board of RHÖN-KLINIKUM AG appointed with effect from 15 August 2020 Dr Christian Höftberger and with effect from 1 September 2020 Dr Stefan Stranz as new members to the Board of Management. Dr Christian Höftberger was appointed by the Supervisory Board on 5 November 2020 as the new chairman of the Board of Management. The respon- sibilities within the Board of Management were adjusted accordingly. As at 31 December 2020, the Board of Management of RHÖN-KLINIKUM AG is composed of four members: Dr Christian Höftberger (CEO), Prof Dr Bernd Griewing (CMO), Dr Stefan Stranz (CFO) and Dr Gunther K. Weiß (COO). Remuneration Report In the Remuneration Report, the principles applied in determining the remuneration of the Board of Management of RHÖN-KLINIKUM AG are summarised. Moreover, the structure and amount of the payments of the Board of Management as well as the principles and amount of the remuneration of the Supervisory Board are explained. 52 RHÖN-KLINIKUM AG | Annual Report 2020

GROUP MANAGEMENT REPORT | Basic characteristics of the RHÖN-KLINIKUM Group Management has the right, within a period of four months, to resign from his Board of Management position and to give notice of termi- nation of his service contract subject to a defined severance package. If a service contract of a member of the Board of Management ends without this being attributable to good cause in the person of such member, or in the event of decease of the member of the Board of Management during such member’s term of office, the member of the Board of Management receives (or, in the event of decease, that member’s heirs receive) an old-age pension benefit in the form of a one-off payment. For each full year of work as member of the Board of Management, this benefit amounts to 0.125 times the annual pay- ments (annual basic salary plus management profit sharing) for the calendar year in which such member leaves the Board of Manage- ment or deceases – not more than 1.5 times such latter payments, but at least 1.5 times the average remuneration during the contrac- tual term for the term of work for the Board of Management. The retirement benefit is due and payable six months after the close of the financial year in which the service contract ends or the member of the Board of Management has deceased. As a rule, no old-age pension benefit is granted if a member of the Board of Management terminates the service contract of his/her own accord before reaching the age of 60 for a reason not attributable to the Company, or does not renew the service contract despite having received an offer for a renewal. If a member of the Board of Management having terminated his activity on the Board of Management without good cause is granted severance compensation, the amount of such benefit including the additional benefits may not exceed the value of two years’ remunera- tion and may not provide remuneration for more than the remaining term of the service contract. Currently, pension commitments, loans and similar benefits are not granted to the members of the Board of Management. For the Board service contracts of Dr Höftberger and Dr Stranz entered into in financial year 2020, the following provisions apply: The remuneration of Dr Höftberger and Dr Stranz is comprised of a non-results-based and a results-based component. The non-results- based component is comprised of a fixed basic salary amounting to € 500 thousand (basic salary). In addition to the agreed basic salary, Dr Höftberger and Dr Stranz receive a variable remuneration (per- formance-linked management share in profit or tantieme/bonus) based on the annual target agreement to be entered into each year. Currently, and until an amendment to the bonus level, the maximum tantieme/bonus is € 250 thousand. In financial year 2020 the variable remuneration is granted pro rata temporis because of the agreements having been entered into during the year under way. Total remuner- ation in each case is limited to € 750 thousand p.a. Dr Höftberger and Dr Stranz also receive additional non-cash benefits essentially consisting in the value determined by the tax guidelines for use of a company car, the insurance premiums for accident in- surance, moving expenses and the D&O insurance. Since use of a company car and the accident insurance premiums are remuneration components, they have to pay tax on these benefits. As a general rule, Dr Höftberger and Dr Stranz are entitled to these in the same way, the amount of which varies depending on the members’ personal situation. In the event of early removal before the expiry of their term of ap- pointment to the Board of Management, Dr Höftberger and Dr Stranz are each entitled to terminate their service contract on two weeks’ notice for the end of the month following the removal. In such case they are entitled to 80% of their total remuneration which they still would have received in the event of their contracts having been con- tinued to their end in accordance with the contractual provisions, unless the removal was validly effected for good cause attributable to them. However, the severance compensation shall amount to no more than double one total annual remuneration, with the amount of the total annual remuneration of the financial year ending before the termination or the financial year under way on termination to be applied, whichever total annual remuneration is lower. In financial year 2020, the payments of the incumbent members of the Board of Management totalled € 2.7 million (previous year: € 4.0 million). Of this total, € 0.8 million (previous year: € 2.2 million) was accounted for by components that are not results-based and € 1.9 million (previous year: € 1.8 million) by variable components. The provision for claims to post-retirement benefits by the incum- bent Board of Management in accordance with IFRS amounted to € 1.1 million (previous year: € 1.6 million) as at 31 December 2020. The remuneration of the members of the Board of Management no longer holding office as at the balance sheet date, or their surviving dependants, totalled € 3.3 million in financial year 2020 (previous year: € 1.1 million). 54 RHÖN-KLINIKUM AG | Annual Report 2020

GROUP MANAGEMENT REPORT | Basic characteristics of the RHÖN-KLINIKUM Group in € ’000 Incument member of Board of Management Dr Gunther K. Weiß (member of Board of Management from 1 May 2018) Inducements granted 2020 2019 2020 (min.) 2020 (max.) 192 17 209 708 917 130 192 13 205 708 913 121 192 17 209 708 917 130 1,047 1,034 1,047 192 17 209 1,308 1,517 130 1,647 Inflow 2020 192 17 209 708 917 0 917 2019 192 13 205 708 913 0 913 Base salary (fixed remuneration) Fringe benefits Total One-year variable remuneration Management profit sharing Total payments Pension expense1 Total remuneration 1 Pension expenditure includes past service cost according to IAS 19. in € ’000 Former member of Board of Management Stephan Holzinger (Chairman of Board of Management until 16 June 2020; member of Board of Management until 22 June 2020; service relationship until 30 September 2020) Inducements granted Inflow Base salary (fixed remuneration) Fringe benefits Total One-year variable remuneration Management profit sharing Total payments Pension expense1 Severance payments Total remuneration 2020 2019 2020 (min.) 2020 (max.) 1,350 8 1,358 0 1,358 63 1,872 3,293 1,800 16 1,816 0 1,816 249 0 2,065 1,350 8 1,358 0 1,358 63 1,872 3,293 1,350 8 1,358 1,000 2,358 63 1,872 4,293 2020 1,350 8 1,358 0 1,358 825 1,872 4,055 2019 1,800 16 1,816 0 1,816 0 0 1,816 1 Pension expenditure includes past service cost according to IAS 19. For the post-termination entitlements of Prof Griewing and Dr Weiß, the following provisions have been formed for post-employment benefits: in € ’000 Retirement benefits Provision as at 31 Dec. 2019 Change in retirement benefits Provision as at 31 Dec. 2020 Nominal amount on contract expiry1 Incumbent members of the Board of Management Stephan Holzinger Prof Dr Bernd Griewing Dr Gunther K. Weiß Total 762 665 215 1,642 1 Claim according to expiry of service contract of the incumbent members of the Board of Management based on remuneration. –762 143 91 –528 0 808 306 1,114 0 1,350 413 1,763 56 RHÖN-KLINIKUM AG | Annual Report 2020

GROUP MANAGEMENT REPORT | Basic characteristics of the RHÖN-KLINIKUM Group RHÖN-KLINIKUM AG shall make available to the Supervisory Board an office including a secretariat with all personnel and material re- sources required for the work of the Supervisory Board as well as the Company’s chauffeur service. No loans are granted by the Company to the members the Super- visory Board. In financial year 2020, the remuneration of the active members of the Supervisory Board was € 1.6 million (previous year: € 1.9 million). The total amount in 2020 was completely accounted for by fixed remuneration components. Expenses (excluding VAT) for members of the Supervisory Board break down as follows: in € ’000 Total payments Total 2020 Total 2019 Eugen Münch (until 19 August 2020) Dr Jan Liersch (from 3 June 2020) Georg Schulze Wolfgang Mündel (until 19 August 2020) Hafid Rifi (from 19 August 2020) Dr Annette Beller (until 3 June 2020) Peter Berghöfer Prof Dr h. c. Ludwig Georg Braun (until 5 June 2019) Nicole Mooljee Damani (from 19 August 2020) Dr Julia Dannath-Schuh (from 3 June 2020) Regina Dickey (from 19 August 2020) Peter Ducke (from 19 August 2020) Prof (apl.) Dr med. Leopold Eberhart (from 19 August 2020) Prof Dr Gerhard Ehninger (until 15 January 2021) Irmtraut Gürkan (from 19 August 2020) Jan Hacker (from 5 June 2019 to 19 August 2020) Stefan Härtel (until 19 August 2020) Kai Hankeln (from 19 August 2020) Klaus Hanschur (until 19 August 2020) Meike Jäger (until 19 August 2020) Dr med. Martin Mandewirth (from 19 August 2020) Dr Brigitte Mohn (until 19 August 2020) PD Dr med. Thomas Pillukat (from 19 August 2020) Christine Reißner Oliver Salomon Evelin Schiebel (until 19 August 2020) Dr Katrin Vernau (until 3 June 2020) Natascha Weihs (until 19 August 2020) 58 219 67 122 196 27 83 91 0 18 40 18 15 20 68 18 57 55 16 50 70 18 43 15 81 70 57 56 57 352 0 138 296 0 161 100 33 0 0 0 0 0 59 0 49 82 0 82 100 0 54 0 100 82 88 92 80 Shareholdings of members of corporate bodies As at 31 December 2020, the members of the Supervisory Board and the Board of Management and their related parties together held, pursuant to Article 19 of the Market Abuse Regulation (MAR), 0.0% (previous year: 20.0%) of the Company’s registered share capital, of which the Supervisory Board and its related parties account for 0.0% (previous year: 20.0%) of the shares in issue. As in the previous year, the members of the Board of Management and their related parties do not hold any interests in the registered share capital. We continue to disclose all transactions of members of the Board of Management and the Supervisory Board which are subject to notifi- cation pursuant to Article 19 of the MAR. Other contracts containing a change-of-control clause The company purchase agreements of the hospitals acquired by us contained provisions according to which, subject to the condition of a change of control as a result of a takeover bid for RHÖN-KLINIKUM AG, a retransfer of the company shares can be demanded. This rang true in particular for Universitätsklinikum Gießen und Marburg GmbH up to the end of financial year 2019. As at the balance sheet date of 31 December 2020, no such provisions exist. Various contracts relating to financial instruments exist in which the lenders may demand immediate repayment in the event of a change of control. In this regard a change of control is defined as the takeover of more than 50% of the interests in RHÖN-KLINIKUM AG. For the former anchor shareholders B. Braun Melsungen AG/Asklepi- os Kliniken GmbH & Co. KGaA/Mr Münch (HCM SE) and Ms Münch, exceptions existed and exist in the promissory note loan agreement from financial year 2018 and the registered bond from financial year 2019. According to the contract documentation, no change of control exists if one or more of the former anchor shareholders acquire(s) more than 50%, but no more than 70.1% maximum (promissory note loan agreement 2018) or 70.3% (registered bond 2019) of the voting shares in RHÖN-KLINIKUM AG within the group of anchor shareholders. As a result of the takeover of the majority of interests in RHÖN-KLINIKUM AG by Asklepios Kliniken GmbH & Co. KGaA, the aforementioned change-of-control clauses were triggered subject to a time limit. With a few exceptions, the strategic financing partners of RHÖN-KLINIKUM AG have continued their commitments. 1,647 1,948 RHÖN-KLINIKUM AG | Annual Report 2020

2.3.2 Trend in service volumes As at 31 December 2019 Change in capacities As at 31 December 2020 Hospitals Beds 8 – 8 5,312 –8 5,304 The change in capacities compared with 31 December 2019 is accounted for entirely by our acute inpatient capacities: Approved beds/ places Change 31 Dec. 2020 31 Dec. 2019 absolute in % Inpatient capacities Acute hospitals Rehabilitation hospitals and other inpatient facilities Semi-inpatient and day-clinical capacities Total 4,609 4,617 500 500 5,109 5,117 195 195 5,304 5,312 –8 0 –8 0 –8 –0.2 0.0 –0.2 0.0 –0.2 GROUP MANAGEMENT REPORT | Economic report In September 2020 the Hospital Future Act (Krankenhauszukunfts- gesetz, KHZG) was passed. It provides for investment funding for hos- pital modernisation, greater funding of emergency capacities and digital structures, as well as bonus payments to employees who had a particularly high workload from providing care to patients infected with COVID-19. The Act is a step in the right direction. But the invest- ments contemplated in this new legislation will not be enough to remove the investment backlog of up to € 3 billion p.a. for all hospitals (excluding university hospitals) described in the RWI study “Krank- enhäuser in privater Trägerschaft 2018” (Privately Owned Hospitals 2018). It is not least for that reason that we also reaffirm our demand for a sustainable expansion of investment funding. Federal, state and local government authorities must define a new path forward for objective implementation of investment financing of the healthcare system, independent of federal responsibilities. In this context, the existing divisions relevant in government grants along outpatient and inpatient lines must be abolished and thus overcome. 2.3 Business performance 2.3.1 Overall statement on economic position Financial year 2020 was dominated in particular by the takeover of RHÖN-KLINIKUM AG by Asklepios Kliniken GmbH & Co. KGaA and the COVID-19 pandemic. With revenues up by € 56.2 million (4.3%), we record a decline in EBITDA by € 45.1 million or 36.0% to € 80.2 million, a decline in EBIT by € 46.2 million or 81.3% to € 10.6 million, as well as a decline in con- solidated result by € 42.0 million or 94.4% to € 2.5 million in financial year 2020 compared with the previous year. In this regard the only limited comparability of the figures of financial year 2020 with the same period last year has to be noted. On the one hand, the same period of the previous year included one-off positive effects from the reversal of provisions for legal and tax risks in the amount of € 39.2 million and from the agreement reached on remuneration of the university outpatient units to the tune of € 6.9 million as well as the one-off expense-increasing effects of share-based remuneration of former members of the Management Board in the form of virtual shares amounting to € 1.0 million. On the other, the key figures of financial year 2020 include transaction-related expenses in the amount of € 8.0 million as well as one-off expenses of € 1.3 million relating to the termination of the service contract of the former chairman of the Board of Management. The decline in service volumes compares with income as a result of COVID-19 legislation in the total amount of € 94.1 million. Further discrepancies result from the new nursing regulation applicable from financial year 2020. 60 RHÖN-KLINIKUM AG | Annual Report 2020

GROUP MANAGEMENT REPORT | Economic report Compared with financial year 2019, revenues witnessed a rise of € 56.2 million or 4.3%. The revenues of financial year 2020 include € 90.6 million in relief payments of the legislature in connection with the COVID-19 pandemic, which essentially relate to income from relief payments in the amount of € 82.4 million for bed capacities kept available. As in the same period of the previous year, income from the invoicing of an additional remuneration component for the me- dicamentous treatment of spinal muscle atrophy as well as income from the invoicing of an additional remuneration component for the treatment of multiple sclerosis are likewise recorded under this item. The above supplementary fees are remunerated along with the pure DRGs (diagnosis-related groups) and negatively impact the materials and consumables used item by nearly the same amount. Revenues further include cost reimbursements for cancer immunotherapies which were applied for the first time in the second quarter of financial year 2019 and negatively impact the materials and consumables used item by the same amount. Moreover, revenues of the previous year of € 9.0 million (before profit participation of employees) were helped by revenues from our university outpatient units not attributable to the period under review. The decline in other income by € 22.9 million or 10.0% is essentially attributable to the income recognised in the same period of the pre- vious year from the reversal of provisions for legal and tax risks on the basis of new knowledge in the amount of € 39.2 million. Furthermore, financial year 2020 was affected by the higher income from ancillary and incidental activities as a result, among other things, of higher sales of drugs and cytostatics. Other income of financial year 2020 also for the first time includes income of € 3.5 million from the legislator in connection with the COVID-19 pandemic. in % Materials ratio Personnel ratio Other cost ratio Depreciation and amortisation ratio Finance result ratio Effective tax ratio 2020 2019 31.1 67.4 10.8 5.1 –0.5 0.1 31.3 66.5 10.2 5.2 –0.2 0.8 of spinal muscle atrophy, multiple sclerosis, and for the first time from the second quarter of 2019 expenses for cancer immunotherapies (e.g. of CAR T-cell therapy), which are remunerated in nearly the same amount and reported under revenues or other income. Adjusted for this effect, the materials ratio likewise diminished slightly from 29.5% to 29.3%. In addition to a rise in the number of employees, general wage in- creases had an impact on the employee benefits expense compared with financial year 2019. The personnel expense ratio rose from 66.5% to 67.4%. Employee benefits expenses of financial year 2020 include one-off expenses in the amount of € 1.3 million in connection with the termination of the service contract of the former chairman of the Board of Management. By contrast, the employee benefits expense item of the same period last year recognised remuneration of former members of the Board of Management in the form of virtual shares amounting to € 1.0 million. The other expenditure ratio rose from 10.2% to 10.8%. The rise in particular includes one-off transaction-related expenses relating to the takeover by Asklepios Kliniken GmbH & Co. KGaA amounting to € 8.0 million. The positive result from the impairment on financial assets in the amount of € 0.2 million results from the adoption of IFRS 9, which among other things governs the future expected losses of financial assets. The improvement in the negative result recorded in the same period of previous year is essentially attributable to declining receiv- ables owed from payers due to the COVID-19 pandemic. In connection with the sale of the 51% interest in Medgate Deutschland GmbH in the third quarter of 2020 to its co-shareholder, Medgate Holding AG, an expense of € 0.7 million was generated from the deconsolidation. The depreciation and impairment item rose compared with the same period of the previous year by € 1.1 million or 1.6% to € 69.6 million. The depreciation/amortisation ratio fell slightly from 5.2% to 5.1%. The negative finance result deteriorated in financial year 2020 by € 4.1 million to € 6.7 million. The trend in the finance result is attrib- utable among other things to breakage (prepayment) costs and the full-year impact of the registered bond issued in July 2019. Compared with the same period last year, materials and consumables used witnessed a rise in financial year 2020, disproportionately mod- erate to the rise in revenues, by € 14.5 million or 3.6%. The materials ratio declined slightly from 31.3% to 31.1%. Materials and consuma- bles used includes expenditures for the medicamentous treatment The income tax expense item declined by € 8.3 million compared with the same period last year. The decline is the result of a lower tax assessment basis. Moreover, a ruling by the German Federal Fiscal Court and the related risk provisioning had an adverse impact on expenditures during the same period of the previous year. 62 RHÖN-KLINIKUM AG | Annual Report 2020

GROUP MANAGEMENT REPORT | Economic report The origin and appropriation of our liquidity are shown in the following overview: Our finance management has to deal with the competing goals of securing liquidity, minimising risk, and ensuring profitability and flexibility. In this regard, top priority is given to securing liquidity with the ob- jective of fixing terms at matching maturities and in line with the Company’s planning and project horizon. To secure the Company’s li- quidity, internal cash flows are available. Cash is invested on extremely conservative terms. As at the balance sheet date, we have cash investments available in the short term as well as available credit lines together amounting to roughly € 356.6 million. 2.3.5 Investments Aggregate investments of € 105.4 million (previous year: € 103.8 mil- lion) in financial year 2020 are shown in the following table: in € million Use of grants Use of own funds Current investments Takeovers Total 23.2 – 23.2 81.2 1.0 82.2 Total 101.4 1.0 105.4 During financial year 2020, we invested a total of € 105.4 million (previous year: € 103.8 million) in intangible assets, in property, plant and equipment as well as in investment property. Of this total, € 23.2 million (previous year: € 27.5 million) relates to capital expend- iture funded under the Hospital Financing Act (KHG), with the grants being reflected as a deduction from acquisition cost. In the consolidated financial statements we report net investments of € 82.2 million (previous year: € 76.3 million). Current capital expend- iture accounted for € 81.2 million (previous year: € 69.4 million) and assets and specialist practices acquired on takeovers for € 1.0 million (previous year: € 6.9 million) of total net investments during the year under review. in € million January to December Cash generated from (+) /cash used in (–) operating activities Cash generated from (+)/cash used in (–) investing activities Cash generated from (+) /cash used in (–) financing activities Change in cash and cash equivalents Cash and cash equivalents as at 1 January Cash and cash equivalents as at 31 December of which held-for-sale cash and cash equiva- lents as at 31 December of which cash and cash equivalents not held for sale as at 31 December 2020 2019 113.3 –135.2 –15.1 –37.0 128.0 47.3 –86.7 35.1 –4.3 132.3 91.0 128.0 – 0.3 91.0 127.7 Cash and cash equivalents decreased in financial year 2020 by € 37.0 million (previous year: € 4.3 million). In this context, a positive operating cash flow was achieved in the amount of € 113.3 million (previous year: € 47.3 million). The rise in operating cash flow by € 66.0 million over the previous year compares with a € 48.5 million increase in cash used in investment activity as well as a € 50.2 million increase in cash used in financing activity, in each case compared with the previous year. The increase in operating cash flow results among other things from payments in connection with COVID-19 legislation as well as the more rapid payments by the health insurance funds in connection with pandemic legislation. Whereas higher fixed deposit investments resulted in an increase in cash used in investment activity, the rise in cash used in finance activity was attributable to the partial repayment of our promissory note in 2020 due to a special termination right of the capital providers relating to the change of control following the public takeover offer by Asklepios Kliniken GmbH & Co. KGaA as well as the placement of a registered bond in financial year 2019. The finance management department of RHÖN-KLINIKUM Group is essentially centrally organised and encompasses the functions of rais- ing capital, capital investment, Group-internal liquidity management as well as settlement. The processes implemented give due regard to the fundamental principles of checks performed by a second person, segregation of functions as well as transparency. We have established the finance management department as a service provider within our business model. 64 RHÖN-KLINIKUM AG | Annual Report 2020

GROUP MANAGEMENT REPORT | Forecast Report | Opportunities and Risk Report It is now emerging that the COVID-19 pandemic will continue to have a considerable impact on the German labour market. The forecast jobless rate, according to the German government, will likely remain at roughly 5.8% in 2021. In December 2020 the rate was 5.9%, after 4.9% in December 2019. This forecast reflects the further heightened regulatory interference by the German legislator, such as the Regulation on Nursing Staff Floors (Pflegepersonaluntergrenzenverordnung, PpUGV) and the Nursing Staff Strengthening Act (Pflegepersonalstärkungsgesetz, PpSG). The legislator’s tightened regulatory regime for hospitals such as the Regulation on Nursing Staff Floors (Pflegepersonaluntergrenzen-Ver- ordnung, PpUGV), the Nursing Staff Strengthening Act (Pflegeper- sonalstärkungsgesetz, PpSG) and minimum volume requirements will result in a market consolidation which in the end will likely see fewer hospitals in Germany. This is the conclusion reached by studies conducted by RWI – Leibniz-Institut für Wirtschaftsforschung e. V. as well as the Bertelsmann Foundation. As for the entire industry as well, rising demand for specialists and the related shortage of qualified staff are issues of key importance for us. Particularly during the COVID-19 pandemic, weaknesses in staffing within the German healthcare system became and are becoming all the more visible. According to the DKI, at the end of 2019 three quarters of the hospitals were having problems filling vacancies in intensive care or on general wards. At the national level, some 17,000 nursing positions (and rising) are vacant – since 2016 an increase of 50% in intensive care and more than 200% on general wards. Technical innovations – innovations from the areas of digitalisation, telemedicine, artificial intelligence, robot assistance – will become increasingly important when it comes to reducing the workload of doctors and nurses. For hospitals to remain economically viable and efficient, they have to gear their strategic targets to the current and future challenges, such as social and demographic change, advances in medical care and technology as well as digitalisation. The latter is providing medicine the opportunity to diagnose and treat patients in future more individually and with greater precision. Forecast 3.3 Also in the coming year, the economic basis of the RHÖN-KLINIKUM Group will be provided by its five large sites in four federal states counting some 5,300 beds and roughly 18,450 employees. That ranks us amongst the large hospital operators in Germany. For the coming financial year, we expect revenues of € 1.4 billion within a range of plus or minus 5%. For earnings before interest, tax and depreciation/amortisation (EBITDA), we expect a level of between € 72.5 million and € 82.5 million. We point out that our outlook is further subject to considerable un- certainties in connection with the further course of the COVID-19 pandemic and any regulatory measures impacting our remuneration structure in 2021. 4 | OPPORTUNITIES AND RISK REPORT A decisive element of a value-oriented and sustainable corporate governance is a company’s wholehearted embracement of risk and opportunity management. The capacity to adequately weigh up op- portunities and risks is a crucial factor of entrepreneurial success, and that decisively depends on the quality of the decisions made by a company’s management. Within the Group of RHÖN-KLINIKUM AG, we therefore see managing risks and opportunities and controlling them effectively and on a sustainable basis as a core entrepreneurial task firmly enshrined in our management culture. The objectives of our value-oriented corporate strategy are to protect the Company’s resources from risks of substantial losses and to identify new opportu- nities whilst safeguarding the interests of our shareholders and other capital market participants. Our corporate activity is inseparably bound up with risks and oppor- tunities. As a service provider in the healthcare sector, we operate in an extremely complex risk environment. The challenge for us is to ensure reasonable management of these risks – since it is only companies that recognise their material risks in time and take steps to systematically counter the same that are also able at the same time to identify the opportunities arising and to exploit them in an entrepreneurially responsible manner. This involves continuously weighing up opportunities against the risks. As a provider of health- care services, we always regard the risk posed to the life and health of our patients and our employees as the greatest risk. We give ut- most priority to measures that avoid even the smallest errors in the medical and nursing area. Further factors such as the regulatory and legislative environment, continually mounting cost, competitive and consolidation pressures within the sector, the rising expectations for the quality of inpatient healthcare delivery and the expectations of patients present opportunities but also involve risks. 66 RHÖN-KLINIKUM AG | Annual Report 2020

GROUP MANAGEMENT REPORT | Opportunities and Risk Report 4.1.2 Risk assessment Not all risks are to be weighted equally. To ensure efficient risk man- agement, we perform a systematic assessment of the risks identified. Within the context of risk evaluation, the probability of occurrence and potential monetary impact of the risk are determined, also giving due regard to already existing and planned measures. Using a risk ma- trix, probability of default and impact of risks are classified to the three levels low, medium and high. Risks whose probability of occurrence and impact are high are classified as posing a threat to the Company’s existence. We classify a medium probability of occurrence as being greater than 30%, and a high probability of occurrence as greater than 70%. Generally, all risks meeting the definitions of the Group risk guideline are to be reported, irrespective of their risk amount. Risks posing a threat to the Company’s existence are assessed as high. IMPACT High Medium Low 7 Low 2 Medium High PROBABILITY OF OCCURRENCE Throughout the Group, seven relevant risks from various risk fields were reported. No risks posing a threat to the Company’s existence were identified. Based on the risk assessment and giving due regard to the measures initiated, all risks are classified as being low. We con- tinue to rate the overall risk position as low. We expect a risk expecta- tion value for the full year of roughly € 0.33 million. Given the devel- opments in service volumes as well as further cost-cutting potential, these risks should not have any material impact on planning for 2021. In addition to risk classification, risks are also categorised in the risk fields below that have an influence on general business performance as well as the development of our net assets, financial position and results of operations. General environment and industry risks We are affected only indirectly by developments in the German econ- omy since healthcare spending is influenced by contribution volumes of the insured and thus by the job market situation. We are for the most part unaffected by foreign economic factors given our exclusive focus on the German healthcare market. Compared with the previous years, one new aspect relates to the risks associated with the COVID-19 pandemic. In this regard our focus, in addition to providing the best possible medical care for our patients, is on coping with the corresponding economic impacts. At the same time we do not consider the measures taken so far to be adequate to maintain the economic performance of hospitals with the growing burdens they face. To secure objective patient care it is imperative to cut bureaucratic red tape and improve the liquidity situation of the hospital sector. If that does not succeed, this runs the risk of triggering a wave of insolvencies of badly needed hospitals. In view of the short-term responses of the legislator with many different provisions, we are not able to make any conclusive, cumulative assess- ment of the impact the pandemic will have on our core business over the entire financial year. Furthermore, the industry environment is marked by heightened in- fluences from healthcare policy regulation. Particularly the continued development of nursing regulation (PpUGV) and the changes brought in by the Nursing Staff Strengthening Act (Pflegepersonalstärkungs- gesetz, PpSG) create new levels of bureaucracy, and instead of making the medical and nursing professions more attractive will continue to put a drag on earnings. To implement successfully the dynamic po- tential and complexity of digitalisation, policy framework conditions have to be created where patients must be the focus of interest. For us, digitalisation is one of the prerequisites for innovations and better healthcare delivery. In addition to the epidemiological challenges, further developments continue to influence our sector. Whereas before the COVID-19 pan- demic, a further increase in demand for medical and in particular also cutting-edge medical services was assumed in the context of demo- graphic trends, the current debate is focused on the realisation that after overcoming the COVID-19 pandemic it will take a long time for demand to again reach pre-pandemic levels. At the same time it is possible that remuneration (which under the DRGs system is exclu- sively performance-oriented) cannot be supplemented or adequately adjusted in the short term. Parallel to that, there will continue to be an increasing shift of what were once inpatient services to the outpatient care sector. For that reason, we are gearing our efforts towards ensur- ing that we can achieve the continuous economic growth in service volumes needed in our core business, also in the future. 68 RHÖN-KLINIKUM AG | Annual Report 2020

GROUP MANAGEMENT REPORT | Opportunities and Risk Report Personnel risks As for the entire industry, rising demand for specialists and the related shortage of qualified staff are of course issues of key importance for us, and particularly during the COVID-19 pandemic staffing weakness- es became all the more visible within the German healthcare system. To achieve sustained success as a diversified healthcare group with leading expertise, we need the required number of committed and highly qualified employees and executive staff. Hospitals on average have personnel cost ratios of between 50% and 70%, making them particularly dependent on developments in wages. A shortage of specialist employees is a key issue also in the healthcare sector, it being necessary to recognise regional differences in the individual facilities. For RHÖN-KLINIKUM AG, too, finding highly qualified and motivated staff to meet the wide-ranging and complex requirements of the healthcare industry is a challenge. We meet these requirements with numerous measures at our sites tailored to local challenges. As a modern employer we offer not only modern remuneration structures, an attractive work environment, in-house kindergartens at the hospi- tals, provision of affordable apartments and assistance in searching for apartments, but also a wide range of career options and benefits. Recruiting and retaining qualified staff at our Company is of key im- portance to us. For example, we run state-recognised schools for nursing and non-medical professionals, and through our academic teaching hospitals are committed to training medical students to the highest standards. Furthermore, thanks to our cooperation with other training facilities and specialised universities, we make contact at an early stage with qualified graduates so that we can recruit the necessary young talent for our staff. In cooperation with Asklepios Kliniken GmbH & Co. KGaA we already succeeded in 2020 in recruiting 43 new, urgently needed foreign nurses for Universitätsklinikum Gießen und Marburg GmbH. Given the further establishment and expansion of structured recruit- ing and qualification concepts for doctors, nursing and healthcare professionals as well as for our executive talent, however, we currently see opportunities to efficiently counteract the current shortage of personnel and currently still classify personnel risks throughout the Group as relatively low. Personnel risks relate in particular to operative risks of the Group subsidiaries of RHÖN-KLINIKUM AG. Procurement risks For materials procurement in the areas of medical facilities, equip- ment as well as supplies, we rely on external providers. These business ties can give rise to risks that are triggered, for example, by delivery and quality problems. This became visible in financial year 2020 in the area of personal protective equipment (PPE). In the area of materials management, RHÖN-KLINIKUM AG is working together closely with Asklepios Service Einkauf & Versorgung GmbH. In the autumn of 2020, a cooperation agreement was entered into here to ensure greater certainty of supply to the sites on adequate terms. Thanks to the cooperation agreement and the measures al- ready taken, we continue to assess the risk in this area as low overall. Procurement risks relate in particular to operative risks of the Group subsidiaries of RHÖN-KLINIKUM AG. Financial risks Our Company is characterised by a high and sound capital base, a sustainable internal financing strength and a strong liquidity posi- tion in the triple-digit million euro range. With a few exceptions, our strategic financing partners have continued their commitment, also after completion of the takeover of RHÖN-KLINIKUM AG by Asklepios Kliniken GmbH & Co. KGaA. Our three-pronged financing strategy consisting of a syndicated, undrawn line of credit, a promissory note and a long-term registered bond thus continues. We currently rate financing and liquidity risks as low, but draw atten- tion to the uncertainty in connection with the continued develop- ment of the COVID-19 pandemic and the associated reimbursements by the legislator. Since we operate exclusively in Germany, we are not subject to any transaction and currency risks. No securities (except for 24,000 treas- ury shares) are held within the Group of RHÖN-KLINIKUM AG. Likewise, there are no corresponding credit rating and share price risks either. The finance risks relate in particular to operative but also strategic risks of the Group subsidiaries of RHÖN-KLINIKUM AG. 70 RHÖN-KLINIKUM AG | Annual Report 2020

GROUP MANAGEMENT REPORT | Reporting pursuant to section 315 (4) of the German Commercial Code (Handelsgesetzbuch, HGB) 5 | REPORTING PURSUANT TO SECTION 315 (4) OF THE GERMAN COMMERCIAL CODE (HANDELSGESETZBUCH, HGB) ON INTERNAL CONTROL AND RISK MANAGEMENT SYSTEMS PERTAINING TO THE ACCOUNTING PROCESS Within the Group of RHÖN-KLINIKUM AG, the accounting-related internal control system is made up of the internal control and the internal monitoring system that ensures preparation of the annu- al financial statements for the Group of RHÖN-KLINIKUM AG and RHÖN-KLINIKUM AG itself and its subsidiaries. As a component of the internal control system, the risk management system, with reference to accounting, is also concerned with the risk of misstatements in accounting as well as in external reporting. The accounting-related internal control system within our Group embraces all principles, processes and measures to ensure the effec- tiveness, efficiency and adequacy of accounting as well as compliance with the relevant legal regulations. The Group’s accounting process is organised in such a way that for each of the subsidiaries on each reporting date – i.e. monthly, quar- terly and annually – a financial statement according to the HGB is prepared in the Group’s own data centres based on a uniform Group- wide accounting guideline and a uniform Group-wide accounting programme. From these financial statements, a consolidated financial statement is derived for each quarter in accordance with the Interna- tional Financial Reporting Standards (IFRSs). The data for the financial statements of the subsidiaries are aggregated to form one consoli- dated financial statement using certified consolidation software after capital consolidation and a consolidation of expenses and earnings, receivables and liabilities as well as an elimination of any intercom- pany profits. IFRS-relevant revaluations and/or reclassifications are performed at the Group level according to uniform accounting and valuation methods. After the end of the respective reporting date, the financial state- ments are reported promptly to the Group accounting department and then prepared and published. The financial statements are an- alysed, subjected to a plausibility test and evaluated together with the controlling department and in certain cases also with the internal auditing department. Both for the preparation of the separate financial statements ac- cording to HGB and for the preparation of the consolidated financial statements according to the valid IFRS, comprehensive accounting requirements and guidelines whose compliance is strictly monitored are observed to ensure uniform accounting. Responsibilities for the preparation of the annual financial statements are clearly defined both for the individual companies and within the Group. The controls applied in this context, which depending on the specific case may be preventive or downstream, manual or automated, give due regard to the principles of segregation of functions. The quarterly financial statements, the half-year financial statements and the annual financial statements are submitted for review to the Audit Committee of the Supervisory Board. The findings of the Audit Committee are documented. Moreover, the Audit Committee also regularly engages the statutory auditor to conduct an accounting-re- lated in-depth audit. If the examinations by the Audit Committee and of the statutory auditor call for improvements in the Group account- ing process, these are implemented without delay. Bad Neustadt a. d. Saale, 23 February 2021 RHÖN-KLINIKUM Aktiengesellschaft THE BOARD OF MANAGEMENT Prof Dr Bernd Griewing Dr Christian Höftberger Dr Stefan Stranz Dr Gunther K. Weiß 72 RHÖN-KLINIKUM AG | Annual Report 2020

CONSOLIDATED FINANCIAL STATEMENTS | Consolidated balance sheet Consolidated balance sheet 31 DECEMBER 2020 ASSETS in € ’000 Non-current assets Goodwill and other intangible assets Property, plant and equipment Investment property Investments accounted for using the equity method Deferred tax assets Other financial assets Current assets Inventories Trade receivables Other financial assets Other assets Current income tax assets Cash and cash equivalents Held-for-sale assets 1 adjusted Notes 31 Dec. 2020 31 Dec. 2019 1 6.1 6.2 9.3.2 6.4 6.3 6.5 6.6 6.7 6.8 6.9 6.10 6.11 4 181,627 865,554 2,208 394 1,472 11,981 178,128 858,151 2,349 388 626 29,290 1,063,236 1,068,932 35,239 193,900 231,232 11,968 3,140 90,955 – 28,437 226,606 167,928 10,479 1,482 127,694 361 566,434 562,987 1,629,670 1,631,919 74 RHÖN-KLINIKUM AG | Annual Report 2020

CONSOLIDATED FINANCIAL STATEMENTS | Consolidated income statement Consolidated income statement 1 JANUARY TO 31 DECEMBER 2020 in € ’000 Revenues Other income Materials and consumables used Employee benefits expense Depreciation/amortisation and impairment Other expenses Result of impairment on financial assets Expense from deconsolidation of subsidiaries Operating result Result of investments accounted for using the equity method Finance income Finance expenses Result of impairment on financial investments Finance result (net) Earnings before taxes Income taxes Consolidated profit of which non-controlling interests shareholders of RHÖN-KLINIKUM AG Earnings per share in € undiluted diluted Notes 2020 2019 5.1 5.2 5.3 5.4 5.5 5.6 5.7 4.0 5.9 5.9 5.9 5.9 5.9 5.10 5.11 5.12 5.12 1,360,159 206,983 1,303,898 229,938 1,567,142 1,533,836 422,435 917,368 69,628 146,565 –183 407,923 866,975 68,522 133,460 152 1,555,813 1,477,032 732 10,597 87 829 –7,391 –190 –6,665 3,932 1,469 – 56,804 80 194 –2,976 140 –2,562 54,242 9,763 2,463 44,479 1,012 1,451 0.02 0.02 1,202 43,277 0.65 0.65 76 RHÖN-KLINIKUM AG | Annual Report 2020

CONSOLIDATED FINANCIAL STATEMENTS | Statement of changes in equity Statement of changes in equity in € ’000 Issued share capital Capital reserve Retained earnings Treasury shares Equity attributable to shareholders of RHÖN-KLINIKUM AG Non-controlling interests in equity 1 Equity As at 31 Dec. 2018/1 Jan. 2019 167,406 574,168 393,821 –76 1,135,319 23,903 1,159,222 Equity transactions with owners Dividend payments Consolidated profit Other comprehensive income Other changes Changes in consolidated companies As at 31 Dec. 2019 As at 31 Dec. 2019/1 Jan. 2020 Equity transactions with owners Dividend payments Consolidated profit Other comprehensive income Other changes Changes in consolidated companies – – – – – – – – 167,406 167,406 574,168 574,168 – – – – – – – – –19,412 43,277 2,320 – 420,006 420,006 – 1,451 2,374 – – – – – –76 –76 – – – – –19,412 43,277 2,320 – 1,161,504 1,161,504 – 1,451 2,374 –947 1,202 – 147 24,305 24,305 –751 1,012 – –20,359 44,479 2,320 147 1,185,809 1,185,809 –751 2,463 2,374 – 326 326 As at 31 Dec. 2020 167,406 574,168 423,831 –76 1,165,329 24,892 1,190,221 1 Including other comprehensive income (OCI). 78 RHÖN-KLINIKUM AG | Annual Report 2020

CONSOLIDATED FINANCIAL STATEMENTS | Notes | Contents Notes CONTENTS 1 | General information 2 | Accounting policies 2.1 Principles applied to the preparation of the financial statements Transactions with non-controlling interests Associated companies and joint ventures Sale of subsidiaries and associated companies 2.3.1 2.3.2 2.3.3 2.3.4 Segment reporting Goodwill and other intangible assets 2.4.1 Goodwill 2.4.2 Computer software 2.4.3 Other intangible assets 2.4.4 Research and development expenses 2.2 Consolidation 2.3 Subsidiaries 2.4 2.5 Property, plant and equipment 2.6 Government grants 2.7 Impairment of property, plant and equipment and intangible assets (excluding goodwill) 2.8 Financial assets 2.8.1 2.8.2 2.8.3 2.8.4 Assets measured at fair value through profit or loss Assets measured at fair value directly in equity (fair value through other comprehensive income, without recycling) Assets measured at amortised cost Assets measured at fair value directly in equity (fair value through other comprehensive income, with recycling) 82 82 82 85 85 86 86 86 86 87 87 87 87 87 88 88 88 89 89 90 90 90 Investment property 2.9 2.10 Inventories 2.11 Trade receivables 2.12 Cash and cash equivalents 2.13 Equity 2.14 Financial liabilities 2.15 Current and deferred taxes 2.16 Employee benefits 2.16.1 Pension obligations and other long-term benefits due to employees 2.16.2 Termination benefits 2.16.3 Management profit sharing and 2.18.1 Inpatient and outpatient hospital services 2.18.2 Interest income 2.18.3 Income from distribution and dividends employee profit sharing 2.16.4 Share-based payments 2.17 Provisions 2.18 Revenue recognition 2.19 Leases 2.20 Costs of borrowing 2.21 Dividend payments 2.22 Financial risk management 2.22.1 Financial risk factors 2.22.2 Credit risk 2.22.3 Liquidity risk 2.22.4 Interest rate risk 2.22.5 Management of equity and debt 3 | Critical estimates and assessments in accounting and valuation 3.1 3.2 Revenue recognition 3.3 Income taxes Estimated impairment of goodwill 4 | Company acquisitions 90 90 90 90 91 91 91 91 91 93 93 93 93 94 94 94 94 94 94 94 94 94 95 95 95 95 96 96 96 97 98 80 RHÖN-KLINIKUM AG | Annual Report 2020

CONSOLIDATED FINANCIAL STATEMENTS | Notes | General information | Accounting policies 1 | GENERAL INFORMATION 2 | ACCOUNTING POLICIES RHÖN-KLINIKUM AG and its subsidiaries build, acquire and operate primarily acute-care hospitals of all categories, with the focus being on cutting-edge medicine oriented towards maximum care with a direct tie-in to universities and research facilities. At some sites, reha- bilitation services are also offered for selected medical disciplines to complement existing acute inpatient offerings. Moreover, out- patient structures in the form of medical care centres are also being expanded. We provide our services exclusively in Germany. The Company is a stock corporation established under German law and has been listed on the stock market since 1989. The reg- istered office of the Company is in Bad Neustadt a. d. Saale, Salz- burger Leite 1, Germany. The Company is entered in the Commercial Register of the Register Court of Schweinfurt under HRB 1670. The RHÖN-KLINIKUM Group (smallest consolidation group) is indirectly included by way of full consolidation through AMR Holding GmbH, Königstein im Taunus, in the group financial statements of Broermann Holding GmbH, Königstein im Taunus (largest consolidation group). Its equity interest in RHÖN-KLINIKUM AG is 86.4%. Furthermore, the RHÖN- KLINIKUM Group is included in the subgroup financial statements of Asklepios Kliniken GmbH & Co. KGaA, Hamburg. The consolidated financial statements have been prepared on the basis of uniform accounting policies which have been consistently applied. The functional currency of the Group is the euro, which is also the currency used for preparing the financial statements. The figures shown in the Notes to the consolidated financial statements are generally shown in millions of euros (€ million). The nature of expense method has been used for presenting the income state- ment. For computational reasons, rounding differences of +/– one unit (€, %, etc.) may occur in the tables. 2.1 Principles applied to the preparation of the financial statements The consolidated financial statements of RHÖN-KLINIKUM AG for the year ended 31 December 2020 have been prepared applying section 315e of the German Commercial Code (Handelsgesetzbuch, HGB) in accordance with International Financial Reporting Standards (IFRS) of the International Accounting Standards Board (IASB), London, as well as the related Interpretations of the International Financial Reporting Standards Interpretations Committee (IFRS IC), which are the subject of mandatory adoption in accordance with the European Parliament and Council Directive number 1606/2002 concerning the application of international accounting standards in the European Union in financial year 2020. No early adoption of new Standards is planned at this time. a) New accounting rules from financial year 2020 The following new or revised Standards and Interpretations are adopted by the European Union and to be applied as of financial year 2020. As far as can be seen at present, they have no practical rele- vance, no material impact or no impact for the consolidated financial statements of RHÖN-KLINIKUM AG as of financial year 2020 as well as subsequent years: Standard/Interpretation Amendments Amendments Amendments Amendments IFRS 3 IFRS 16 Mandatory adoption date Endorse- ment 1 Impact 1 Jan. 2020 1 Jan. 2020 1 Jan. 2020 1 June 2020 1 Jan. 2020 Yes Yes Yes Yes Yes No practical relevance No practical relevance No material impact No practical relevance No impact IAS 1, IAS 8 Presentation of Financial Statements, Accounting Policies IFRS 9, IAS 39, IFRS 7 Interest Rate Benchmark Reform Business Combinations, Definition of a Business Leases Conceptual Framework for IFRS Standards Amendments Miscellaneous 1 Adoption of IFRS Standards and/or Interpretations by the European Union. 82 RHÖN-KLINIKUM AG | Annual Report 2020

CONSOLIDATED FINANCIAL STATEMENTS | Notes | Accounting policies the references in some IFRSs have been adjusted to the new, revised conceptual framework of IFRS. The amendments are to be applied to financial years beginning on or after 1 January 2020, and have no impact on the net assets, financial position and results of operations of RHÖN-KLINIKUM AG. b) New accounting rules from financial year 2021 and subsequent financial years The following Standards and Interpretations newly published by the IASB – to the extent adopted by the European Union – are applicable as of financial year 2021/subsequent years and are of no practical relevance for, have no material impact on, have no impact on the consolidated financial statements of RHÖN-KLINIKUM AG or are sub- ject to a review by the Management: Standard/Interpretation Mandatory adoption date Endorse- ment 1 Impact Amendments IFRS 4 Insurance Contracts 1 Jan. 2023 IFRS 9, IAS 39, IFRS 7, IFRS 4, IFRS 16 IBOR Reform – Phase 2 1 Jan. 2021 Yes Yes No No No No No No No practical relevance No material impact No practical relevance Subject to a review by the Management No impact Subject to a review by the Management Subject to a review by the Management Subject to a review by the Management Amendments New (including amendments) Amendments Amendments Amendments Amendments Amendments IFRS 17 IFRS 3 IAS 1 IAS 16 IAS 37 Insurance Contracts 1 Jan. 2023 Business Combinations 1 Jan. 2022 Classification of Liabilities as Current or Non-current 1 Jan. 2023 Property, Plant and Equipment 1 Jan. 2022 Provisions, Contingent Liabilities and Contingent Assets 1 Jan. 2022 1 Jan. 2022 Annual Improvements to IFRS, 2018–2020 Cycle Collective Standard for amendments to various IFRS 1 Adoption of IFRS Standards and/or Interpretations by the European Union. The Standards and Interpretations already adopted by the European Union are explained below: Amendments to IFRS 4: “Insurance Contracts” IFRS 17 “Insurance Contracts” in future will replace IFRS 4 “Insurance Contracts”. All companies to be accounted for in accordance with the IFRSs which issue insurance contracts, including those companies outside the insurance industry issuing such insurance contracts, are affected by the Amendments to IFRS 17. The mandatory initial adop- tion date of IFRS 17, including the amendments, was postponed by two years to financial years beginning on or after 1 January 2023. The defined expiry of the temporary exemption from adoption of IFRS 9 in IFRS 4 was accordingly postponed to financial years beginning on or after 1 January 2023. IFRS 4 and IFRS 7 are of no practical relevance for RHÖN-KLINIKUM AG. 84 RHÖN-KLINIKUM AG | Annual Report 2020

CONSOLIDATED FINANCIAL STATEMENTS | Notes | Accounting policies 2.3.1 Transactions with non-controlling interests Transactions with non-controlling interests are treated like trans- actions with equity investors. Any difference arising on acquisition of a non-controlling interest between the consideration paid and the relevant share in the carrying amount of the subsidiary’s net assets is recognised in equity. Positive or negative effects arising on disposal of non-controlling interests are likewise recognised in equity. This applies only to the extent the disposal does not give rise to any loss of control. Associated companies and joint ventures 2.3.2 Associated companies are those companies over which the Group has a substantial influence. A substantial influence is refutably presumed if the share of voting rights is between 20.0% and 50.0%. Investments in associated companies and jointly controlled entities (joint ventures) are accounted for using the equity method and initially recognised at cost. The Group’s interest in associated companies and jointly controlled entities includes the goodwill arising on acquisition (less accumulated impairment losses). The Group’s interest in the profits and losses of associated companies or joint ventures is recognised in the income statement as of the date of acquisition and the cumulative changes are offset against the carrying amount of the investment. Changes in equity without effect in profit or loss are not to be considered. If the Group’s share in the loss of an associate or joint venture is equal to or greater than the Group’s share in this company including other unsecured receiv- ables, no further losses are recognised unless the Group has entered into an obligation for the associate or jointly controlled entity or has made payments for it. Unrealised intercompany profits or losses from transactions between Group companies and associated companies or joint ventures are eliminated on a pro rata basis if the underlying circumstances are material. In an impairment test, the carrying amount of a company accounted for using the equity method is compared with its recoverable amount. If the carrying amount exceeds the recoverable amount, an impair- ment equal to the difference must be recognised. If the reasons for a previously recognised impairment have ceased to exist, the impair- ment is reversed through the income statement. The financial statements of investments accounted for using the equity method are prepared using uniform accounting principles within the Group. Associated companies whose individual or overall impact on the net assets and results of operations is not material are not accounted for using the equity method. They are included in the consolidated financial statements at fair value. Immaterial equity interests are measured at fair value through profit or loss. Sale of subsidiaries and associated companies 2.3.3 If the Group loses either control or material influence over a company, the remaining interest is remeasured at fair value and the resulting difference recognised as profit or loss. Fair value is the fair value calculated upon the initial recognition of an associate, joint venture or financial asset. Moreover, all amounts stated in other income are recognised with reference to such company in the same way as would be required if the related assets and liabilities had been sold by the parent company directly. That means that a profit or loss previously recognised under other income is transferred to the income state- ment. If it cannot be transferred to the income statement, it remains in equity (e.g. actuarial profits or losses from pensions). 2.3.4 Segment reporting According to IFRS 8 “Operating Segments”, segment information on operating segments is to be presented in accordance with the internal reporting to the chief operating decision maker (manage- ment approach). An operating segment is a company component – which carries out business activities from which revenue is earned and for which expenses may be incurred. For us these include all revenues relating to services provided directly and indirectly for patients, as well as all expenses necessary for providing services, – whose operating result is regularly reviewed by the company’s chief decision maker to make decisions about resources to be allocated to this segment and assess its earnings strength, and – for which separate financial information is available. 86 RHÖN-KLINIKUM AG | Annual Report 2020

CONSOLIDATED FINANCIAL STATEMENTS | Notes | Accounting policies 2.5 Property, plant and equipment Land and buildings are reported under “Property, plant and equip- ment” and mainly comprise hospital buildings. In the same way as the other items of property, plant and equipment, they are measured at cost less any depreciation. Cost includes the expenditure directly attributable to the acquisition or construction of an asset as well as any overheads attributable to construction. Subsequent costs are recognised as part of the cost of the asset or – where applicable – as a separate asset only if it is probable that future economic benefits associated with the asset will accrue to the Group and if the cost of the asset can be measured reliably. All other repair and maintenance work is recognised as expenditure in the income statement in the financial year in which it is incurred. Property, plant and equipment are tested for impairment if events or changed circumstances suggest that an impairment may have occurred. In such a case, the impairment test is performed pursuant to IAS 36 according to the principles explained for intangible assets. Where an impairment is to be made, the remaining useful life of the asset may be adjusted accordingly. If the reasons for a previously recognised impairment have ceased to exist, such impairment losses are reversed, in which case such reversal may not exceed the carrying amount that would have resulted if no impairment had been recog- nised in the previous periods. Land is not depreciated. All other assets are depreciated using the straight-line method, with costs being depreciated over the expected useful lives of the assets so as to write down the value of the assets to their residual carrying amount as follows: Buildings Machinery and equipment Other plant and equipment 33 ¹/3 years 5 to 15 years 3 to 12 years The net book values and useful economic lives are reviewed at each balance sheet date and adjusted where applicable. Gains and losses on the disposal of assets are measured as the difference between the disposal proceeds and the carrying amount and recognised through profit or loss. 2.6 Government grants Government grants are recognised at fair value if it can be assumed with reasonable assurance that the grant will be received and that the Group has satisfied the necessary conditions for this. Government grants for investments are deducted from cost to arrive at the carrying amount for the assets to which they relate. They are distributed as a reduction in expenses over the expected useful life of the related assets using the straight-line method. Such grants are granted to hospitals within the framework of investment finance legislation. Grants not yet used for their intended purpose are stated under “Other liabilities” at the balance sheet date. Government grants are recognised on a systematic basis either in profit or loss, and during periods in which the Company applies correspond- ing expenditures which the government grants are intended to cover as expenses. This relates e.g. to payments made in the context of the COVID-19 pandemic for creating additional intensive care treatment capacities equipped with mechanical ventilators. 2.7 Impairment of property, plant and equipment and intangible assets (excl. goodwill) The Group assesses on every balance sheet date whether there are any indications that an asset might be impaired. If such indications exist or if an annual impairment test has to be performed in relation to an asset, the Group estimates the recoverable amount. If it is not possible for independent inflows to be allocated to the individual asset, the Group estimates the recoverable amount for the cash- generating unit to which the asset belongs. The recoverable amount is the higher of the fair value of the asset less costs to sell it and its value in use. If the carrying amount of an asset exceeds its recoverable amount, the asset is considered to be impaired and is written down to its recoverable amount. In order to calculate the value-in-use, the estimated future cash flows are discounted to their present value using a discount rate before taxes which reflects the current market expectation with regard to the interest effect and the specific risks of the asset. Impairments are shown in the income statement under the item Depreciation/amortisation. On every balance sheet date, a test is performed to establish whether there are any indications that an impairment recognised in previous reporting periods no longer exists or might have diminished. If such an indication exists, the recoverable amount is estimated. An 88 RHÖN-KLINIKUM AG | Annual Report 2020

CONSOLIDATED FINANCIAL STATEMENTS | Notes | Accounting policies cash flow conditions as defined in IFRS 9. At RHÖN-KLINIKUM AG, no assets in the form of debt capital instruments that could be allocated to this category exist. services, for administrative purposes or for revenues within the scope of ordinary operations. Investment properties are measured at cost less cumulative depreciation. 2.8.2 Assets measured at fair value directly in equity (fair value through other comprehensive income, without recycling) Investments in equity instruments do not fulfil the cash flow condi- tions as defined in IFRS 9; they are principally to be measured at fair value. For equity instruments not held for trading, an entity has the irrevocable right on initial recognition to avail itself of the fair-value OCI option. Within the Group of RHÖN-KLINIKUM AG, equity invest- ments in the amount of € 12.0 million (previous year: € 9.5 million) are measured at fair value (fair value through other comprehensive income, without recycling). 2.8.3 Assets measured at amortised cost Financial assets held as part of a business model whose purpose consists in holding assets to collect the contractual cash flows are measured at amortised cost provided that the assets also fulfil the cash flow conditions as defined in IFRS 9. When assessing whether cash flows are realised through collection of the contractually agreed payments from the financial asset, the frequency and scope of the sales in earlier periods are to be consi- dered, whether the assets sold were about to mature, as well as the reasons for such sales and the expectations with respect to the future sales activities. Within the Group of RHÖN-KLINIKUM AG, trade receivables, other financial assets as well as cash and cash equivalents are allocated to this category. 2.8.4 Assets measured at fair value directly in equity (fair value through other comprehensive income; with recycling) This category covers financial assets which fulfil the cash flow condi- tions as defined in IFRS 9 and whose purpose consists in collecting contractual cash flows and selling financial assets. Currently, no such financial assets exist at RHÖN-KLINIKUM AG. Investment property 2.9 Investment properties comprise land and buildings which are held for the purpose of generating rental income or for achieving capital gains, and which are not used for the company’s own provision of Since RHÖN-KLINIKUM AG or its subsidiaries retain beneficial owner- ship in leased properties as lessor (operating lease), these properties are identified as such and reported separately in the balance sheet. Leased assets are recognised at cost and depreciated in accordance with the accounting principles for property, plant and equipment. Lease income is recognised on a straight-line basis over the term of the lease. 2.10 Inventories Inventories within the Group of RHÖN-KLINIKUM AG are materials and supplies. These are measured at the lower of cost (including trans- action costs) and net realisable value. Cost of inventories is deter- mined by the weighted-average method. Net realisable value is the estimated selling price in the ordinary course of business less the estimated costs to sell. 2.11 Trade receivables Trade receivables are initially recognised at fair value plus any trans- action costs and subsequently measured at amortised cost less impairments. The Group generates over 90% of its revenue from the statutory health insurance funds. The material part of accounts receivable likewise is likewise due from statutory health insurance funds. For calculating expected credit losses, we have used the country default risk for the Federal Republic of Germany as a basis for this category of receivables. In the case of the other receivables, the Group uses aged debtor lists and past experience as the basis for collectively estimating the percentage of expected credit losses as at the balance sheet date in relation to the period of time overdue. Macroeconomic risks are included with a time lag in the assessment through the country default risk of the Federal Republic of Germany or through the individual receivables defaults. Receivables are derec- ognised within the Group of RHÖN-KLINIKUM AG after expiry of the legally prescribed limitation periods or after conclusion of unsuccess- ful insolvency proceedings. In addition, the Group recognises specific valuation allowances if, as a result of particular circumstances, it is not likely that trade receivables will be recovered. 2.12 Cash and cash equivalents Cash and cash equivalents comprise cash on hand, demand deposits and other short-term, highly liquid financial assets with original 90 RHÖN-KLINIKUM AG | Annual Report 2020

CONSOLIDATED FINANCIAL STATEMENTS | Notes | Accounting policies A defined benefit plan is a pension plan that does not fall under the definition of a defined contribution plan. It typically stipulates the amount of pension benefits that an employee will receive on retire- ment, which is usually dependent on one or several factors such as age, length of service and salary. The provision stated in the balance sheet for defined benefit plans is equal to the present value of the defined benefit obligation (DBO) at the balance sheet date. The DBO is calculated annually by an independent actuary using the projected unit credit method. The present value of the DBO is calculated by discounting the expected future cash outflows with the interest rate of high-quality corporate bonds issued in the currency in which the benefits are paid and whose terms are consistent with those of the pension obligation. Actuarial gains and losses resulting from changes in actuarial assump- tions and/or from discrepancies between earlier actuarial assump- tions and the actual development are recognised directly at equity in the period in which they occur giving due regard to deferred tax. In this way the balance sheet – after deduction of any existing plan assets – shows the full scope of the obligations avoiding fluctuations in expenses that may arise in particular in the case of changes in the calculation parameters. The actuarial gains and losses recognised in the respective reporting period are shown separately as “revaluations of defined benefit pension plans” in the statement of comprehensive income. Pursuant to IAS 19, past service cost, i.e. all changes in benefits diminishing the defined benefit obligation, are fully recognised in the income statement at the time of the plan modification. Multi-employer plans On the basis of collective agreements, the Group pays contributions to the Federal and State Pension Scheme (VBL) and other public service pension schemes (Bayerische Versorgungskammer-Zusatz- versorgung, BVK) for a certain number of employees. The supple- mentary pension schemes are public-law corporations or institutions. The contributions are paid on a pay-as-you-go (PAYGO) basis. This financing structure carries the risk of rising contributions through the levy of reform imposts that may be charged unilaterally or disproportionately to employers. The present plans are multi-employer plans (IAS 19.8) since the par- ticipating companies share both the risk of the capital investment and the actuarial risk. In principle, the VBL/BVK benefit plan is to be classified as a defined benefit plan (IAS 19.38), but the information needed for an objectively correct representation of the Group’s share of the future payment is not available due to the existing PAYGO financing regime. Because of such a PAYGO financing approach in which the levy rate is calculated for a certain coverage layer on the basis of the aggregate insurance portfolio and not on the basis of the individual risk of insurees, the benefit plan pursuant to IAS 19.34 is to be recognised as a defined contribution plan. Since no agreements within the meaning of IAS 19.37 exist, there is no recognition of a corresponding asset or liability. Any superordinated guarantee obli- gations of public-law entities take precedence over the recognition of any liability item in the balance sheet. The current contributions to the VBL/BVK are reflected in the employee benefits item as pension expenses or post-employment benefits for the respective years. In addition to the levy, the VBL also levies reform imposts from the participating employers with compulsory insurees in the separately organised and managed settlement class Abrechnungsverband West. In financial year 2020, the reform impost amounted to 0.17% of the insured remunerations. In the settlement class Abrechnungsverband West, the VBL finances its benefits through a PAYGO approach taking the form of a modi- fied defined period-based funded approach (Abschnittsdeckungs- verfahren). The current defined period covers 2016 to 2022. The levy rate is assessed in such a way that the contribution to be paid for the duration of the defined period together with the other income expected and the available assets suffices to settle the expenditures during the defined period and the period of six months there- after. Since 1 January 2002, the levy rate has been 7.86% of the remuneration subject to supplementary pension payments, of which employers pay a share of 6.45% and employees a share of 1.41%. Since 1 July 2017, an additional employee contribution of 0.4% has applied. The contribution rate in the BVK, depending on the year of the employee’s entry, is between 4.8% and 7.75%. Given insufficient information, it is not possible to make any state- ment on the level of participation in the pension schemes based on the contributions paid by the Group of RHÖN-KLINIKUM AG compared with the aggregate payments to the VBL and other public service pension schemes (BVK). 92 RHÖN-KLINIKUM AG | Annual Report 2020

CONSOLIDATED FINANCIAL STATEMENTS | Notes | Accounting policies 2.18 Revenue recognition Revenue is recognised at the fair value of the consideration received for the provision of services and for the sale of products. Revenue from intra-group goods and services is eliminated by way of consoli- dation. Revenue is recognised as follows. For leases with a term of twelve months maximum as of 1 January 2019 as well as leases relating to low-value assets, no right of use and no lease liability will be applied in the balance sheet and the lease payments will continue to be recognised as an expense as thus with a negative effect on EBITDA in the income statement. 2.18.1 Inpatient and outpatient hospital services Hospital services are recognised in the financial year in which the services are performed by reference to the stage of completion as a proportion of the total services to be performed. Charges agreed with the payers are essentially invoiced at fixed rates irrespective of the duration of stay. In certain segments daily hospital and nursing rates are invoiced. In the outpatient area, the individual services and medical aids are invoiced based on the schedules of benefits appli- cable to the respective area. Hospital services are limited in terms of their volume as part of an agreed budget. As a result, service volumes exceeding the budget and service volumes falling short of the budget are to be mutually offset under statutory provisions. Budget-restricting provisions are also being applied in the outpatient area. Further notes are provided under point 3.2 Revenue recognition. 2.18.2 Interest income Interest income is recognised on a pro rata basis using the effective interest method. 2.18.3 Income from distribution and dividends Dividend income is recognised when the right to receive payment is established. 2.19 Leases The new IRFS 16, which has applied since 1 January 2019, defines a lease as a contract which conveys the right to use an asset for a period of time in exchange for consideration. As a rule, every lease has to be recognised with the lessee on the balance sheet in the form of a right of use and a lease liability. The lease liability is measured in accordance with the lease payments outstanding discounted with the incremental borrowing rate if it is not possible to calculate the interest rate implicit in the lease. The present value calculation is therefore as a rule based on the incre- mental borrowing rates. The right of use as a general rule is measured at the amount of the lease liability plus any initial direct cost. During the lease term, the right of use is to be depreciated and the lease liability updated using the effective interest method and taking into account the lease payments. 2.20 Costs of borrowing If borrowing takes place, the costs of borrowing are deducted from the corresponding items and are distributed using the effective interest method. Moreover, the interest is then recognised as cur- rent expense. Costs of borrowing incurred in connection with the acquisition/construction of qualifying assets are capitalised during the entire production process until commissioning. Other costs of borrowing are recognised as an expense. 2.21 Dividend payments Shareholders’ claims to dividend payments are recognised as a liability in the period in which the corresponding resolution is adopted. 2.22 Financial risk management 2.22.1 Financial risk factors The assets, liabilities and planned transactions of RHÖN-KLINIKUM AG are exposed in particular to the following risks: – Credit risk – Liquidity risk – Interest rate risk The aim of financial risk management is to limit the above risks through ongoing operating activities as well as the use of derivative and non-derivative (e.g. fixed-interest loans) financial instruments. As a general rule, derivative financial instruments may be entered into for hedging purposes, i.e. they are not used for trading or speculative purposes. As a rule, financial instruments for limiting the counterparty risk are entered into only with leading financial institutions with at least an investment grade rating. Financial risk management is conducted by the Treasury department under the supervision of the CFO in line with the guidelines adopted by the Board of Management and the Supervisory Board. Risks are identified and measured by the Board of Management working together with the operative units of the Group. The CFO defines both the principles for interdivisional risk management and the guidelines for certain areas such as the management of interest rate and credit risks, the use of derivative and non-derivative financial instruments as well as the investment of liquidity surpluses. 94 RHÖN-KLINIKUM AG | Annual Report 2020

CONSOLIDATED FINANCIAL STATEMENTS | Notes | Critical estimates and assessments in accounting and valuation 3 | CRITICAL ESTIMATES AND ASSESSMENTS IN ACCOUNTING AND VALUATION All estimates and assessments are subject to ongoing review and are based on past experience and other factors, including expectations with respect to future events which appear reasonable under the given circumstances. The Group makes assessments and assumptions about the future. The estimates derived from these of course only rarely reflect actual future circumstances. These uncertainties in particular concern the following: – the planning parameters taken as a basis of the impairment test for goodwill, – assumptions made in determining pension obligations, – assumptions and probabilities for determining provision requirements and – assumptions relating to the credit risk of trade receivables. The estimates and assumptions that entail a significant risk of a sub- stantial adjustment in carrying amounts of assets and liabilities during the next financial year are discussed in the following. Estimated impairment of goodwill 3.1 To determine goodwill at fair value less costs to sell, the operating cash flows of the individual hospitals, with their inpatient, semi- inpatient and outpatient care structures, were discounted at the weighted average cost of capital (WACC) after tax of 4.21% (previous year: 5.27%). The carrying amounts do not exceed fair value less cost of sale. Based on this calculation, no impairment requirement was ascertained. Key assumptions having a substantial influence on fair value less costs to sell are WACC and the average EBIT margin. See our Note under 6.1 for average growth in revenues. For the cash-gener- ating units, the recoverable amount is equal to the carrying amount as of an assumed cost of capital rate of 5.3% (previous year: 6.2%). 3.2 Revenue recognition The hospitals of RHÖN-KLINIKUM AG, like all other hospitals in Germany, are subject to the statutory regulations on fees. Revenue recognition is essentially based on a comparison of per- formance and consideration under a contract: a service performed gives rise to an asset, the consideration received to an obligation. This time or period does not have to, but can coincide with transfer of opportunities and risks. Treatment contracts between hospitals and patients or their health insurance funds correspond to con- tracts for services pursuant to section 630a et seq. BGB. Irrespective of who performs the payment in future, it is normally the case that the patient will likely be regarded as the customer. The scope of the performance obligations in the context of hospital treatment is essen- tially governed by statutory provisions. The prices charged to the payers are stipulated by numerous laws and regulations. The patient receives and consumes the benefit simultaneously with performance of the service. Control is thus transferred and also revenue recognised for a specified period. Revenues are recognised in accordance with progress of service performance over the service performance period. In order to create planning and revenue certainty, the remunera- tion regulations normally provide for prospective fee agreements. In practice, however, these negotiations take place only in the course of the financial year or even thereafter, creating uncertainties as to the service volume for which consideration is received at the balance sheet date. These are reflected in the balance sheet through objec- tive, reliable estimates of receivables or liabilities based on empirical values. Past experience has shown that the inaccuracies relating to the estimates are negligible for the Group’s financial position and results of operations. The Group generates over 90% of its revenue from the statutory health insurance funds. As a general rule, the various budgets for the individual hospitals are defined together with the statutory health insurance funds at the beginning of each year. Diagnosis- related groups (DRGs) are measured nationally on a uniform basis through the DRG catalogue (output method as defined in IFRS 15). The measure ment ratios are reviewed and adjusted each year by Institut für das Entgeltsystem im Krankenhaus GmbH (InEK). If the service volume invoiced by a hospital (number, severity or type of service) at the end of the financial year does not correspond to the budget negotiated for that year, this results in either revenue surpluses or shortfalls that are compensated by way of income com- pensation between the health insurance funds and the respective 96 RHÖN-KLINIKUM AG | Annual Report 2020

CONSOLIDATED FINANCIAL STATEMENTS | Notes | Company acquisitions 4 | COMPANY ACQUISITIONS Consolidated companies The ultimate parent company is RHÖN-KLINIKUM Aktiengesellschaft with its registered office in Bad Neustadt a. d. Saale. The consolidated companies are as follows: Fully consolidated subsidiaries Companies consolidated using the equity method Other subsidiaries Consolidated companies In the first quarter of 2020 we founded MVZ MED GmbH as a wholly owned subsidiary of RHÖN-KLINIKUM AG. Approval by the physi- cians association (Kassenärztliche Vereinigung) was granted as at 1 April 2020. After all conditions for validity were met, the interests in GPG Gesell- schaft für Projekt- und Grundstücksentwicklung GmbH Leipzig were transferred to the purchaser in 2020. The company was deconsoli- dated in the first quarter of 2020. 31 Dec. 2019 Additions Disposals 31 Dec. 2020 27 1 10 38 1 – – 1 –2 – –1 –3 26 1 9 36 With effect from 1 September 2020, Medgate Deutschland GmbH was sold to the minority shareholder, Medgate Holding AG, and decon- solidated in the third quarter of 2020. The liquidation of Soemmerring GmbH privates Institut für Bewe- gungsstörungen und Verhaltensneurologie i. L. previously recognised as other company was completed in the first quarter of 2020. 98 RHÖN-KLINIKUM AG | Annual Report 2020

CONSOLIDATED FINANCIAL STATEMENTS | Notes | Company acquisitions | Notes to the consolidated income statement Held-for-sale assets and liabilities In financial year 2019, the assets and liabilities held for sale of GPG Gesell schaft für Projekt- und Grundstücksentwicklung GmbH Leipzig were recognised under this item. The company was sold with effect from 1 January 2020. As part of the adjustment to IFRS 5, the assets and liabilities held for sale relating to the company intended to be sold were reclassified in the 2019 balance sheet accordingly. Depreciation on these items was not necessary. The breakdown of the original balance sheet items in 2019 is shown below: in € million Held-for-sale assets as at 31 Dec. 2019 Non-current assets Property, plant and equipment Current assets Trade receivables Other financial assets Cash and cash equivalents Total Held-for-sale assets in € million Held-for-sale liabilities as at 31 Dec. 2019 Non-current liabilities Other financial liabilities Current liabilities Trade payables Current income tax liabilities Other financial liabilities Total Held-for-sale liabilities 0.1 0.1 0.0 0.0 0.3 0.3 0.4 0.0 0.0 0.0 0.0 0.1 0.1 0.1 5 | NOTES TO THE CONSOLIDATED INCOME STATEMENT 5.1 Revenues The development of revenues by business areas and geographical regions was as follows: in € million Business areas Acute hospitals Medical care centres Rehabilitation hospitals Regions Bavaria Saxony Thuringia Brandenburg Hesse 2020 2019 1,319.4 1,261.8 17.6 23.2 16.1 26.0 1,360.2 1,303.9 274.3 – 185.4 154.9 745.6 265.8 0.2 170.7 146.6 720.6 1,360.2 1,303.9 According to IFRS 15, revenues constitute revenues generated from the provision of services and in financial year 2020 rose by € 56.3 mil- lion or 4.3% to reach € 1,360.2 million. Of that, our acute and reha- bilitation hospitals accounted for € 1,342.6 million (previous year: € 1,287.8 million) and the medical care centres for € 17.6 million ( previous year: € 16.1 million). As in the previous year, revenue figures include income from the invoicing of an additional remuneration component for the medica- mentous treatment of spinal muscle atrophy as well as income from the invoicing of an additional remuneration component for the treat- ment of multiple sclerosis. These supplementary fees are remunerated along with the pure DRGs (diagnosis-related groups) and negatively impact the materials and consumables used item by nearly the same amount. Furthermore, revenues for the first time as of financial year 2019 are influenced by cost reimbursements for cancer immuno- therapies that negatively impact the materials and consumables used item by the same amount. The revenues of the previous year were moreover helped by revenues from our university outpatient units not attributable to the period under review. In addition, the revenues of financial year 2020 include relief payments of the legislator in connection with the COVID-19 pandemic amount- ing to € 90.6 million, which essentially relate to income from relief pay- ments in the amount of € 82.4 million for bed capacities kept available. 100 RHÖN-KLINIKUM AG | Annual Report 2020

CONSOLIDATED FINANCIAL STATEMENTS | Notes | Notes to the consolidated income statement Result from impairment on financial assets 5.7 The positive result from the impairment on financial assets in the amount of € 0.2 million (previous year: negative result of € 0.2 mil- lion) results from the adoption of IFRS 9, which among other things governs the future expected losses of financial assets. Regarding the default risk of financial assets, we refer to the comments on the finance result. 5.8 Research costs Research activities relate primarily to process optimisations in the area of inpatient hospital care and not to making marketable products. The research results are therefore generally produced as a result of or in objective connection with the activities of healthcare provision. For this reason, differentiating and measuring these in isolation is possible only to a very limited extent. Depending on the volume of costs to be attributed to research activities, annual research expendi- ture is roughly estimated to be within a range of 0.5% to 2.0% of revenues. They are primarily accounted for by personnel expenses and other expenses. As part of the takeover of the two university and scientific sites Giessen and Marburg, we committed ourselves to provide funding to the two medical faculties in an amount of at least € 2.0 million p.a. 5.5 Depreciation and impairment This item includes amortisation of intangible assets and depreciation of property, plant and equipment and investment property. Com- pared with the same period last year, the depreciation/amortisation item increased by € 1.1 million (or 1.6%) to € 69.6 million. 5.6 Other expenses Other operating expenses break down as shown in the following table: in € million 2020 2019 Maintenance Charges, subscriptions and consulting fees Insurance Administrative and IT costs Other personnel and continuing training costs Rents and leaseholds Travelling, entertaining and representation expenses Losses on disposal of non-current assets Secondary taxes Other 57.9 43.0 13.3 10.9 5.6 4.0 1.5 0.3 0.2 9.9 146.6 56.2 29.1 12.5 11.7 6.1 4.2 2.6 0.1 0.8 10.2 133.5 The other expenditure ratio increased slightly from 10.2% to 10.8%. The rise includes one-off transaction-related expenses relating to the takeover by Asklepios Kliniken GmbH & Co. KGaA amounting to € 8.0 million. 102 RHÖN-KLINIKUM AG | Annual Report 2020

CONSOLIDATED FINANCIAL STATEMENTS | Notes | Notes to the consolidated income statement The nominal tax expense for earnings before taxes is reconciled with the income tax expense as follows: 5.11 Profit to non-controlling interests This is the share of profit attributable to minority shareholders. in € million 2020 2019 % % Earnings before taxes 3.9 100.0 54.2 100.0 Nominal tax expense (tax rate 15.0%) Solidarity surcharge (tax rate 5.5%) Risk provision for Federal Fiscal Court ruling Derecognition of loss carry- forward recognised/Recognition of previous loss carry-forwards and interest carry-forwards not recognised/Loss carry-forwards not applied Trade tax Increase in tax liability due to non-deductible charges Taxes, previous years Additional expense from dividend payment Elimination of items not relevant for taxation Effective income tax expense 0.6 0.0 – 2.3 0.5 0.1 –0.1 15.0 0.8 0.0 59.0 12.8 2.6 –2.6 0.1 2.6 8.1 0.4 3.1 2.6 0.8 0.2 0.2 0.1 15.0 0.8 5.7 4.8 1.5 0.4 0.4 0.2 5.12 Earnings per share Earnings per share in accordance with IAS 33 is calculated using the share of consolidated profit attributable to the shareholders of RHÖN-KLINIKUM AG and the weighted average number of shares in issue during the year. The following table sets out the development in ordinary shares outstanding: Non-par shares Treasury shares No. of shares on 1 Jan. 2020 No. of shares on 31 Dec. 2020 66,962,470 66,962,470 –24,000 –24,000 66,938,470 66,938,470 The number of shares is unchanged. For disclosures on equity, please refer to Note 6.12. –2.0 1.5 –51.3 38.9 –5.8 9.8 –10.6 18.1 Earnings per share are calculated as follows: Items of no relevance for taxation include amounts not classified as taxable in the calculation of taxable income. Further details of how deferred tax has been allocated to assets and liabilities are given in the Notes to the consolidated balance sheet. Share in consolidated profit (€ ’000) (previous year) Weighted average number of shares outstanding, in thousands (previous year) Earnings per share in € (previous year) Ordinary shares 1,451 (43,277) 66,938 (66,938) 0.02 (0.65) Diluted earnings per share are identical to undiluted earnings per share, as there were no stock options or convertible debentures outstanding at the respective balance sheet dates. 104 RHÖN-KLINIKUM AG | Annual Report 2020

CONSOLIDATED FINANCIAL STATEMENTS | Notes | Notes to the consolidated balance sheet Goodwill is subjected to an annual impairment test for its respective cash-generating unit (each hospital with its inpatient, semi-inpatient and outpatient care structures, unless the related goodwill of co- operating units is monitored at a higher level). This impairment test is performed on 1 October of each year. The carrying amount of the cash-generating unit is compared with the recoverable amount for the unit which was determined at the fair value less costs to sell of the unit. The fair value is calculated on the basis of a discounted cash flow method (DCF method). In this regard, a corresponding present value is projected for a further five years with assumptions on long- term growth rates on the basis of an operative detailed five-year plan – which also includes expectations on future market development in the healthcare system – and calculated with subsequent recog- nition of a perpetual annuity. The company targets also reflect the heightened regulatory interference by the German legislator, such as the Regulation on Nursing Staff Floors (Pflege personaluntergrenzen- Verordnung, PpUGV), the Nursing Staff Strengthening Act (Pflege- personalstärkungsgesetz, PpSG) and the minimum volume require- ments. The calculated cash flows are discounted at the WACC to calculate the present value of the perpetual annuity. In view of unfore- seeable measures by the legislature, a discount of 0.5% (previous year: 0.5%) was included in the discounting factor of the perpetual annuity (growth in the perpetual annuity). This forms an integral part of the Company’s planning and is accordingly based on the management’s actual expectations for the respective unit as well as on the statutory framework in the healthcare system. We believe that it is only with this longer detailed view that the measures already planned at the time of the company acquisition (e.g. demolition and rebuilding, moderni- sation measures) can be correctly recognised. At the end of each year, a review was carried out to establish whether the economic situation continues to support the results of the impairment test in the same way as before. This was the case on 31 December 2020. Goodwill of the acquired entities was tested for impairment as at 31 December 2020 based on data from the companies’ current planning. This did not reveal any indications that the goodwill had changed negatively between the contract date and the balance sheet date. The weighted cost of capital of a potential investor from the health- care sector is used as the discount rate at the time of measurement, taking into account the tax shield arising from theoretical debt financ- ing. This discount rate was defined at 4.21% for 2020 (previous year: 5.27%). Significant goodwill relates to the following cash-generating units: in € million Units 31 Dec. 2020 31 Dec. 2019 Universitätsklinikum Gießen und Marburg Zentralklinik Bad Berka RHÖN-KLINIKUM Campus Bad Neustadt Other goodwill of less than € 5.0 million 137.5 16.3 6.5 4.5 137.5 16.3 6.2 4.2 Balance sheet value 164.8 164.2 For the calculation of fair value of the business-generating units less cost of sale, cash flows were forecast on the basis of past experi- ence, current operating results and best-possible estimates of future manage ment performance as well as market assumptions. The values in use could not be taken as a basis because the carrying amounts are already exceeded by fair values less cost of sale. The calculated fair value for the business-generating units was attributed to level 3 of the hierarchy levels of fair values. Fair value less cost of sale is primarily defined by the terminal value (present value or perpetual annuity) which is particularly sensitive to changes in assumptions on the long- term growth rate of revenues and on the discount rate. Whereas the discount rate was defined uniformly for all business-generating units, the growth rate is defined individually per entity. The discount rate reflects the current market assessment of the entities’ specific risks. The growth rates take account of external macroeconomic data and sector-specific trends. For planning purposes, the units accounting for the main portion of goodwill are assumed to have a homogenous structure. 106 RHÖN-KLINIKUM AG | Annual Report 2020

CONSOLIDATED FINANCIAL STATEMENTS | Notes | Notes to the consolidated balance sheet 6.2 Property, plant and equipment in € million Cost 1 Jan. 2020 Changes in consolidated companies Additions Disposals Transfers 31 Dec. 2020 Cumulative depreciation and impairment 1 Jan. 2020 Changes in consolidated companies Depreciation Disposals Transfers 31 Dec. 2020 Balance sheet value as at 31 Dec. 2020 in € million Cost 1 Jan. 2019 Additions to changes in consolidated companies Additions Disposals Transfers 31 Dec. 2019 Cumulative depreciation and impairment 1 Jan. 2019 Depreciation Impairment Disposals Transfers 31 Dec. 2019 Balance sheet value as at 31 Dec. 2019 Land and buildings Technical plant and equipment Operating and office equipment Plant under construction 1,167.9 57.9 368.8 0.0 6.0 0.5 2.3 0.0 0.8 0.3 0.4 0.2 21.1 10.7 1.7 1,175.7 58.8 381.1 476.0 39.1 255.5 0.0 30.8 0.2 0.0 506.6 669.1 0.0 3.8 0.1 0.0 42.8 16.0 –0.1 30.7 10.3 0.0 275.8 105.3 34.2 0.0 45.4 0.0 –4.4 75.2 0.0 0.0 0.0 0.0 0.0 0.0 75.2 Land and buildings Technical plant and equipment Operating and office equipment Plant under construction 1,150.2 56.4 345.5 0.0 19.9 1.0 –1.2 0.0 1.6 1.1 1.0 6.6 23.4 11.7 5.0 1,167.9 57.9 368.8 446.0 30.9 0.0 0.9 0.0 476.0 691.9 36.2 237.0 4.0 0.0 1.1 0.0 39.1 18.8 30.0 0.0 11.4 –0.1 255.5 113.3 19.2 0.0 20.0 0.0 –5.0 34.2 0.0 0.0 0.0 0.0 0.0 0.0 34.2 Total 1,628.8 0.2 73.3 11.5 0.0 1,690.8 770.6 –0.1 65.3 10.6 0.0 825.2 865.6 Total 1,571.3 6.6 64.9 13.8 –0.2 1,628.8 719.2 64.9 0.0 13.4 –0.1 770.6 858.2 108 RHÖN-KLINIKUM AG | Annual Report 2020

CONSOLIDATED FINANCIAL STATEMENTS | Notes | Notes to the consolidated balance sheet Deferred tax assets for tax loss carry-forwards are recognised in the amount of the associated tax benefits that can probably be realised as a result of future taxable profits. Tax loss carry-forwards in connection with previous hospital acquisitions are included in the tax base for recognising deferred tax assets if they are sufficiently determinable for tax purposes. In a tax-detrimental sale of shares in companies, any existing deferred tax is transferred to loss carry-forwards. Deferred tax assets from tax loss carry-forwards are recognised on the basis of tax planning calculations for a period of five years. The tax base used for deferred taxes is € 0.2 million (previous year: € 2.5 million). On the balance sheet date, tax losses carried forward which have so far not been utilised amounted to € 7.4 million (previous year € 26.4 million); no deferred tax assets were recognised in relation to € 7.2 million (previous year: € 23.9 million) of this figure. In Germany, tax loss carry- forwards can reduce the taxable result for an unlimited term. The annual taxable result can reduce tax loss carry-forwards fully up to an amount of € 1.0 million and beyond that only at the rate of 60.0% of the remaining current taxable result. Deferred taxes from property, plant and equipment result from the difference between their useful lives defined in tax law and the eco- nomic depreciation periods in accordance with IFRSs. In addition, accelerated tax depreciation and write-downs were corrected in IFRS. Changes in deferred taxes are shown as follows: in € million 31 Dec. 2020 31 Dec. 2019 Deferred tax assets at beginning of year 0.6 3.2 Recognition of deferred taxes directly in equity in connection with changes in the fair value of investments recognised directly in equity Recognition of deferred taxes directly in equity in connection with revaluation of defined benefit pension plans recognised in equity Recognition of deferred taxes directly in equity in connection with company acquisitions Expense/income from current netting in the income statement Deferred tax assets at end of year –0.4 –0.4 0.0 – 1.3 1.5 0.0 –1.1 –1.1 0.6 6.4 Financial investments accounted for using the equity method Deferred tax liabilities for non-distributed profits of subsidiaries total- ling € 131.8 million (previous year: € 122.3 million), which lead to non-tax-deductible expenses of 5.0% of the total dividend for the par- ent company, were included in the consolidated financial statements. 6.4.1 Investments accounted for using the equity method As in the previous year, one joint venture was measured in the consoli dated financial statements using the equity method. Joint ventures accounted for using the equity method Name of company Joint ventures Registered office Capital share in % Energiezentrale Universitätsklinikum Gießen GmbH Giessen 50.0 6.4.2 Associated companies In the current consolidated financial statements as well as the finan- cial statements of the previous year, there were no associates that would result in a measurement using the equity method. 110 RHÖN-KLINIKUM AG | Annual Report 2020

Trade receivables as well as impairments within the meaning of IFRS 9 show the following maturity structure as at the balance sheet date of 31 December 2020: Impairment As at 1 Jan. pursuant to IFRS 9 Changes in consolidated companies The development of impairments pursuant to IFRS 9 recognised under the item of trade receivables is shown in the table below: in € million 2020 2019 0.9 – 0.8 – 0.9 – 0.8 0.9 – 0.9 – 0.9 – 0.9 Allocation Utilisation Write-back Currency translation difference As at 31 Dec. pursuant to IFRS 9 CONSOLIDATED FINANCIAL STATEMENTS | Notes | Notes to the consolidated balance sheet Trade receivables 6.7 As at the balance sheet date of 31 December 2020, we report trade receivables in the amount of € 193.9 million (previous year: € 226.6 million). The fair values of trade receivables essentially corre- spond to their carrying amounts since they are primarily short-term in character. in € million Impairment matrix 31 Dec. 2020 Not overdue Between 0 and 30 days overdue Between 31 and 90 days overdue Between 91 and 180 days overdue More than 180 days overdue Total Gross carrying amount Expected credit loss 160.4 11.5 9.7 5.3 7.8 194.7 0.3 0.1 0.2 0.2 0.0 0.8 Trade receivables as well as impairments within the meaning of IFRS 9 had the following maturity structure as at the balance sheet date of 31 December 2019: With regard to the impairments on trade receivables, reference is made to the further Notes in the section Accounting policies. Trade receivables were derecognised in the income statement in the amount of € 7.5 million in financial year 2020 (previous year: € 2.5 mil- lion). Settlement mechanisms in accordance with the Hospital Remu- neration Act (KHEntgG) partially compensated for these defaults. Inflows of € 0.1 million (previous year: € 0.1 million) were recognised in the income statement in relation to previously derecognised trade receivables. in € million Impairment matrix 31 Dec. 2019 Not overdue Between 0 and 30 days overdue Between 31 and 90 days overdue Between 91 and 180 days overdue More than 180 days overdue Total Gross carrying amount Expected credit loss The item trade receivables includes unfinished services from the treatment of patients in the amount of € 14.6 million (previous year: € 21.8 million). The amount of the variable consideration is calculated using the expected value method as defined in IFRS 15. 192.3 11.5 6.8 7.3 9.6 227.5 0.3 0.1 0.1 0.2 0.2 0.9 112 RHÖN-KLINIKUM AG | Annual Report 2020

CONSOLIDATED FINANCIAL STATEMENTS | Notes | Notes to the consolidated balance sheet The remaining other financial assets (current, not including fixed deposits) as well as the impairments within the meaning of IFRS 9 had the following maturity structure as at the balance sheet date of 31 December 2019: Within the Group, settlement receivables due from and settlement liabilities to the payers under fee/budget agreements of the current year and the previous years are stated on a netted basis. A similar approach is taken towards claims under government grants for invest- ments and grants not yet used for their intended purpose. On a gross basis, the statement is as follows: in € million Impairment matrix 31 Dec. 2019 Not overdue Between 0 and 30 days overdue Between 31 and 90 days overdue Between 91 and 180 days overdue More than 180 days overdue Total The development of the impairments recognised under the item of other financial assets (current) pursuant to IFRS 9 is shown in the table below: in € million Impairment As at 1 Jan. pursuant to IFRS 9 Changes in consolidated companies Allocation Utilisation Write-back Currency translation difference As at 31 Dec. pursuant to IFRS 9 2020 2019 0.6 – 0.9 – 0.6 – 0.9 0.8 – 0.6 – 0.8 – 0.6 Gross carrying amount Expected credit loss in € million 76.7 1.2 0.2 0.1 0.3 78.5 0.1 0.1 0.1 0.0 0.1 0.4 31 Dec. 2020 31 Dec. 2019 Receivables according the KHEntgG (gross) Liabilities according the KHEntgG (gross) Balance sheet value 70.2 –14.2 56.0 68.6 –8.7 59.9 Regarding the statement on a gross basis of the corresponding liabil- ities in accordance with the KHG/KHEntgG, please refer to the section “Other financial liabilities”. 6.9 Other assets (current) Of other current assets in the amount of € 12.0 million (previous year: € 10.5 million), essentially € 6.6 million (previous year: € 8.4 million) is attributable to prepaid expenses, in particular maintenance contracts and insurance expenses, and € 1.7 million (previous year: € 1.9 million) is attributable to reimbursement claims against insurers under liability claims as well as € 3.3 million (previous year: € 0.0 million) to VAT receivables. The increase is essentially attributable to VAT adjustments for previous years. 6.10 Current income tax assets Current income tax assets essentially include claims against tax authorities for reimbursement of corporate income tax. 6.11 Cash and cash equivalents in € million Of the impairments as at the balance sheet date in the amount of € 0.9 million (previous year: € 0.6 million), € 0.6 million (previous year: € 0.3 million) is attributable to fixed deposits. The € 0.3 million rise is essentially attributable to the higher volume of fixed deposits. Cash with banks and cash on hand Short-term bank deposits 31 Dec. 2020 31 Dec. 2019 83.5 7.5 91.0 117.7 10.0 127.7 114 RHÖN-KLINIKUM AG | Annual Report 2020

CONSOLIDATED FINANCIAL STATEMENTS | Notes | Notes to the consolidated balance sheet In the fourth quarter of 2017, a syndicated line of credit in the amount of € 100.0 million was taken out. For this line of credit a change-of- control clause is stipulated providing, in the event of a change of control when the line of credit has been utilised, for the right to an early repayment and for the right of the lenders to exclude new lend- ings. In the context of the takeover by Asklepios Kliniken GmbH & Co. KGaA, the line of credit was reduced by € 12.0 million to € 88.0 million. As at the balance sheet date, this line had not been utilised. The syndi- cated loan is subject to a financial covenant. This financial ratio limits net financial debt to a maximum of 3.5 times EBITDA. The financial ratio was complied with by RHÖN-KLINIKUM AG in financial year 2020 (previous year: complied with). In October 2018, RHÖN-KLINIKUM AG placed a promissory note in the amount of € 100.0 million. The tranches exclusively bearing fixed interest with bullet maturities have terms of five, seven and ten years. For the promissory note a change-of-control clause is stipulated pro- viding a right to early repayment in the event of a change of control. In the context of the takeover by Asklepios Kliniken GmbH & Co. KGaA the total volume decreased by € 10.0 million to € 90.0 million. In July 2019, RHÖN-KLINIKUM AG placed a registered bond in the amount of € 60.0 million with a term of 20 years. For the registered bond a change-of-control clause is stipulated providing a right to early repayment in the event of a change of control. In the context of the takeover by Asklepios Kliniken GmbH & Co. KGaA the total volume of the registered bond did not change. The funds collected are used for general corporate finance to ensure sufficient funds for investments planned in the medium-to-short term. The reported financial liabilities amounting to € 150.0 mil- lion (previous year: € 160.0 million) decrease by the costs incurred in connection with the borrowing in the amount of € 1.5 million ( previous year: € 1.7 million). Non-controlling interests in equity of € 24.9 million (previous year: € 24.3 million) relate to interests held by non-Group third parties in the following consolidated subsidiaries: in % Non-controlling interests 31 Dec. 2020 31 Dec. 2019 Hospital companies Universitätsklinikum Gießen und Marburg GmbH, Giessen Zentralklinik Bad Berka GmbH, Bad Berka Medical care centre companies MVZ UKGM GmbH, Marburg MVZ Zentralklinik GmbH, Bad Berka Other subsidiaries Medgate Deutschland GmbH, Bad Neustadt a. d. Saale 6.13 Financial liabilities in € million 5.0 12.5 5.0 12.5 5.0 12.5 5.0 12.5 – 49.0 31 Dec. 2020 31 Dec. 2019 Re- maining term > 1 year Re- maining term < 1 year Re- maining term > 1 year Re- maining term < 1 year Non-current financial liabilities Liabilities to banks Total non-current financial liabilities Current financial liabilities Liabilities to banks Total current financial liabilities 148.5 148.5 – – Total financial liabilities 148.5 – – 0.9 0.9 0.9 158.3 158.3 – – 158.3 – – 0.9 0.9 0.9 116 RHÖN-KLINIKUM AG | Annual Report 2020

CONSOLIDATED FINANCIAL STATEMENTS | Notes | Notes to the consolidated balance sheet The provision volume on the balance sheet relates only to one-off payments: The commitments have a term of > 1 year. There are no reimburse- ment claims resulting from pension liability insurance policies entered into by reason of pension commitments to employees. in € million 31 Dec. 2020 31 Dec. 2019 Commitment for one-off payments Provision for pensions (defined benefit liability) 1.1 1.1 1.6 1.6 The calculation of pension provisions is based on the following assumptions: The weighted average duration of the pension liabilities is three years (previous year: eight years). The sensitivity of the pension obligations in terms of fluctuation range due to changes in the various actuarial valuation assumptions is shown in the table below: Change in assumption in percentage points Increase in assumption Reduction in assumption in % 31 Dec. 2020 31 Dec. 2019 Rate of interest Projected increase in wages and salaries Projected increase in pensions 0.43 2.50 2.00 0.98 2.50 2.00 Impact on the commitment in % as at 31 Dec. 2020 Interest rate Remuneration trend 0.2 0.2 Mortality +/–1 year –0.6 0.6 0.1 0.6 –0.6 –0.1 We used Prof. Dr. Klaus Heubeck’s 2018G Tables (previous year: Prof. Dr. Klaus Heubeck’s 2018G Tables) as actuarial tables. All pension costs are reported under the pension costs item. The development of the defined benefit obligation in financial year 2020 compared with the previous year is shown in the following: Change in assumption in percentage points Increase in assumption Reduction in assumption –1.6 1.6 0.1 1.7 –1.6 –0.2 in € million As at 1 January Service time cost Interest expense Losses from plan changes Pension payments Actuarial gains/losses from changes in financial assumptions Experience-based adjustments Payments rendered As at 31 December Impact on the commitment in % as at 31 Dec. 2019 Interest rate Remuneration trend 0.2 0.2 2020 2019 Mortality +/–1 year 1.6 0.6 0.0 0.0 0.0 0.0 –0.3 –0.8 1.1 2.2 0.7 0.0 0.0 0.0 0.1 –0.5 –0.9 1.6 The effects of the sensitivity were calculated using the same method as the obligations at the end of the year. In this regard, effects of a simultaneous change in several assumptions were not examined. Since the commitments remaining at the end of the financial year are capital commitments, no or no material changes result from the change in the pension trend; consequently, no disclosure of sensi- tivity in this regard was made. 118 RHÖN-KLINIKUM AG | Annual Report 2020

CONSOLIDATED FINANCIAL STATEMENTS | Notes | Notes to the consolidated balance sheet 6.16 Trade payables in € million 31 Dec. 2020 31 Dec. 2019 Trade payables 80.7 0.0 64.6 0.0 < 1 year > 1 year < 1 year > 1 year Trade payables exist with regard to third parties. The total amount of € 80.7 million (previous year: € 64.6 million) is due within one year. Liabilities under the Hospital Remuneration Act (KHEntgG) relate to compensation obligations under federal hospital compensation legis- lation (the Hospital Remuneration Act (Krankenhausentgelt gesetz, KHEntgG)) and the Federal Hospital Nursing Rate Ordinance (Bundes- pflegesatzverordnung, BPflV). The liabilities under the KGH, reported under other financial liabilities, for government grants not yet used in accordance with the conditions for their use granted under state legislation for hospital financing amounting to € 21.5 million (previous year: € 22.0 million; 1 January 2019: € 12.3 million) were reclassified to the item other liabilities because of the clearer objective interpre- tation of the IFRSs, as this better reflects the character of the item. The previous year statement in the balance sheet was adjusted from € 35.1 million by € 22.0 million to € 13.1 million. With regard to the reclassifications of provisions for recovery risks, we refer to the statements under Note 6.15. The previous year state- ment of trade payables was adjusted in the balance sheet from € 84.4 million by € 19.8 million to € 64.6 million. The purchase prices from company purchases relate to contractually stipulated obligations. The change over the previous year results from the payment of the second purchase price tranche for Marburger Ionenstrahl-Therapie Betriebs-Gesellschaft mbH in financial year 2020. 6.17 Other financial liabilities in € million 31 Dec. 2020 31 Dec. 2019 Liabilities under KHEntgG Purchase prices Leases Other financial liabilities Other financial liabilities (financial instruments) < 1 year > 1 year < 1 year > 1 year 3.2 0.7 3.1 7.9 – 0.0 8.1 8.4 0.0 0.7 3.2 9.2 – 4.2 9.8 9.8 14.9 16.5 13.1 23.8 The carrying amounts of the current financial liabilities recognised under this item correspond to their fair values. The carrying amounts of other non-current liabilities have been discounted using the effec- tive interest method on the basis of historical market rates. Of the figure stated for remaining non-current financial liabilities with remaining maturities of more than five years in the amount of € 0.0 million (previous year: € 1.6 million), € 0.0 million (previous year: € 1.6 million) is attributable to obligations arising from research grants owed to the universities in Giessen and Marburg. Within the Group, settlement receivables due from and settlement liabilities to payers under fee/budget agreements of the current year and the previous years are stated on a netted basis. in € million 31 Dec. 2020 31 Dec. 2019 Liabilities according to the KHEntgG (gross) Receivables according to the KHEntgG (gross) Balance sheet value 17.4 –14.2 3.2 8.7 –8.7 – Regarding the statement on a gross basis of receivables in accordance with the KHEntgG on the assets side, please refer to the section “Other financial assets (current)”. 120 RHÖN-KLINIKUM AG | Annual Report 2020

CONSOLIDATED FINANCIAL STATEMENTS | Notes | Notes to the consolidated balance sheet 6.21 Additional disclosures regarding financial instruments 6.21.1 Carrying amounts, recognised figures and fair values according to measurement categories The table below presents the carrying amounts and fair values of the individual financial assets and liabilities for each individual category of financial instruments pursuant to IFRS 9 as at 31 December 2020: in € million ASSETS Non-current assets Other financial assets of which investments of which investments of which other Current assets Trade receivables and other financial assets Cash and cash equivalents LIABILITIES Non-current liabilities Financial liabilities Other financial liabilities Measurement category according to IFRS 9 Measured at fair value directly in equity (fair value through other comprehensive income, without recycling) Measured at fair value through profit or loss Measured at amortised cost Measured at amortised cost Measured at amortised cost Financial liabilities measured at amortised cost of which other financial liabilities Financial liabilities measured at amortised cost of which leases Current liabilities Trade payables Financial liabilities Other financial liabilities of which other financial liabilities of which leases n. a. Financial liabilities measured at amortised cost Financial liabilities measured at amortised cost Financial liabilities measured at amortised cost n. a. Aggregated according to measurement categories, the above figures are as follows: Financial assets measured at amortised cost Financial assets measured at fair value directly in equity (fair value through other comprehensive income, without recycling) Financial assets measured at fair value through profit or loss Financial liabilities measured at amortised cost 122 RHÖN-KLINIKUM AG | Annual Report 2020

CONSOLIDATED FINANCIAL STATEMENTS | Notes | Notes to the consolidated balance sheet The fair values of financial assets and liabilities accounted for as defined in IFRS 9 as at 31 December 2020 are classified as follows to the three levels of the fair value hierarchy: The levels of the fair value hierarchy and their application to assets and liabilities are described below: in € million Other non-current financial assets (investments) Other non-current financial assets (remaining) Trade receiv- ables, other current financial assets Non-current financial liabilities Other non- current financial liabilities Current trade liabilities Current financial liabilities Current other financial liabilities Level 1 Level 2 Level 3 Total 31 Dec. 2020 Total 31 Dec. 2019 – – – – – – – – 12.0 0.0 425.1 172.3 17.2 80.7 0.9 14.9 – – – – – – – – 12.0 9.5 0.0 19.8 425.1 394.5 172.3 172.6 17.2 80.7 0.9 24.9 64.6 0.9 14.9 13.1 – Level 1: Listed market prices for identical assets or liabilities on active markets – Level 2: Other information in the form of listed market prices which are directly (e.g. prices) or indirectly (e.g. derived from prices) observable – Level 3: Information on assets and liabilities not based on observable market data. The principal par t of financial assets is measured at RHÖN-KLINIKUM AG, pursuant to IFRS 9, at amortised cost. Trade receivables, other financial assets as well as cash and cash equi- valents covered by this in general have short remaining maturities. Their carrying amounts as at the reporting date therefore correspond to their fair values. The fair values of other non-current financial assets were calculated on the basis of the current level of interest rates. Investments in the amount of € 12.0 million (previous year: € 9.5 million) are measured as of acquisition pursuant to IFRS 9 at fair value directly in equity (fair value through other comprehensive income, without recycling). These investments relate to start-up equity interests whose market value was calculated based on current equity transactions between market participants in the context of additional financing rounds or applying the DCF method. Moreover, additional immaterial investments amounting to € 0.0 million are measured at fair value (fair value through profit or loss). Changes in the market valuation of investments, which are measured at fair value directly in equity (fair value through other comprehensive income, without recycling), resulted in total in gains in the amount of € 2.1 million (previous year: € 2.2 million) (after tax), which are recog- nised directly in equity under other comprehensive income (OCI). The fair value of non-current other financial obligations and non- current financial liabilities of RHÖN-KLINIKUM AG is calculated on the basis of the discounted cash flow. A risk- and maturity-related rate appropriate for RHÖN-KLINIKUM AG has been used for discounting purposes. For trade payables, other financial obligations and financial liabilities with short remaining maturities, the carrying amounts corre- spond to their fair values on the reporting date. The fair value of liabilities under leases was calculated using a market interest curve as at the balance sheet date and corresponds to their carrying amount. 124 RHÖN-KLINIKUM AG | Annual Report 2020

CONSOLIDATED FINANCIAL STATEMENTS | Notes | Notes to the consolidated balance sheet | Statement of cash flows 6.21.3 Financial liabilities (maturity analysis) The following table sets out the contractually agreed (undiscounted) interest payments and redemption payments of the original financial liabilities: in € million Financial liabilities Trade payables Other financial liabilities Liabilities under leases Cash outflows 2021 2022–2027 > 2027 –3.0 –80.7 –11.8 –3.3 –98.8 –55.4 –139.5 0.0 –8.3 –8.4 0.0 0.0 0.0 –72.1 –139.5 The following table shows the maturity analysis of the previous year: in € million Financial liabilities Trade payables Other financial liabilities Liabilities under leases Cash outflows 2020 2021–2026 > 2026 –2.9 –64.6 –9.9 –3.4 –80.8 –55.6 0.0 –14.5 –10.1 –80.2 –141.3 0.0 0.0 0.0 –141.3 The above table includes all financial liabilities held as at the balance sheet date and for which payments had been contractually agreed. Planned payments for new liabilities in the future have not been included in the calculations. Interest payments were included in the future cash flows under agreements in effect as at the balance sheet date. Current liabilities and liabilities which can be terminated at any time are shown under the shortest time horizon. 7 | STATEMENT OF CASH FLOWS The statement of cash flows shows how the item “Cash and cash equivalents” of RHÖN-KLINIKUM Group has changed in the year under review as a result of cash inflows and outflows. The impact of acquisi- tions, divestments and other changes in consolidated companies has been eliminated. In accordance with IAS 7 (Statement of Cash Flows), a distinction is made between cash flows from operating activities, investing activities as well as financing activities. The liquidity shown in the statement of changes in financial position includes cash on hand, cheques as well as cash with banks. For the purposes of the statement of cash flows, bank overdrafts are deducted from cash and cash equivalents. As at 31 December 2020, as in the previous year, there were no bank overdrafts. Cash and cash equivalents decreased in financial year 2020 by € 37.0 million (previous year: € 4.3 million). In this context, a positive operating cash flow was achieved in the amount of € 113.3 million (previous year: € 47.3 million). The rise in operating cash flow by € 66.0 million over the previous year compares with a € 48.5 million increase in cash used in investment activity as well as a € 50.2 million increase in cash used in financing activity, in each case compared with the previous year. The increase in operating cash flow results among other things from payments in connection with COVID-19 legislation as well as the more rapid payments by the health insurance funds in connection with pandemic legislation. Whereas higher fixed deposit investments resulted in an increase in cash used in investment activity, the rise in cash used in finance activity was attributable to the partial repayment of our promissory note in 2020 due to a special termination right of the capital providers relating to the change of control following the public takeover offer by Asklepios Kliniken GmbH & Co. KGaA as well as the placement of a registered bond in financial year 2019. The cash flow statement included a total of € 15.0 million (previous year: € 9.6 million) in outstanding construction invoices. The statement of cash flows sets out the change in cash and cash equivalents between two balance sheet dates. In the RHÖN-KLINIKUM Group, this item exclusively comprises cash and cash equivalents attributable to continuing operations because no operations were discontinued. 126 RHÖN-KLINIKUM AG | Annual Report 2020

CONSOLIDATED FINANCIAL STATEMENTS | Notes | Shareholdings 8 | SHAREHOLDINGS 8.1 Companies included in the consolidated annual report in € ’000 Interest held in % Result for the year Equity in € ’000 Research and education companies Interest held in % Result for the year Equity ESB – Gemeinnützige Gesellschaft für berufliche Bildung mbH, Bad Neustadt a. d. Saale 100.0 1,928 302 Hospital companies Haus Saaletal GmbH, Bad Neustadt a. d. Saale 1 Klinikum Frankfurt (Oder) GmbH, Frankfurt (Oder) 1 RHÖN-Kreisklinik Bad Neustadt GmbH, Bad Neustadt a. d. Saale 1 Universitätsklinikum Gießen und Marburg GmbH, Giessen Zentralklinik Bad Berka GmbH, Bad Berka 100.0 1,516 100.0 73,677 100.0 350 0 0 0 95.0 87.5 148,906 12,797 129,612 8,734 1 The company claims the exemptions pursuant to section 264 (3) HGB from preparing notes and, to the extent required by law, from preparing a management report as well as disclosure. gemeinnützige Gesellschaft zur Förderung der klinischen Forschung auf dem Gebiet der Humanmedizin und zur Betreuung von Patienten an den Universitäten Gießen und Marburg mbH, Marburg 100.0 35 0 in € ’000 Interest held in % Result for the year Equity Property companies BGL Grundbesitzverwaltungs-GmbH, Bad Neustadt a. d. Saale 100.0 34,134 1,794 in € ’000 Interest held in % Result for the year Equity in € ’000 Medical care centre companies MVZ Bad Neustadt / Saale GmbH, Bad Neustadt a. d. Saale 1 MVZ des Klinikums Frankfurt (Oder) GmbH, Frankfurt (Oder) MVZ MED GmbH, Bad Neustadt a. d. Saale MVZ UKGM GmbH, Marburg MVZ Zentralklinik GmbH, Bad Berka 100.0 100.0 100.0 95.0 87.5 370 283 13 889 1,994 0 35 –182 427 0 1 The company claims the exemptions pursuant to section 264 (3) HGB from preparing notes and, to the extent required by law, from preparing a management report as well as disclosure. Service companies RHÖN-Cateringgesellschaft mbH, Bad Neustadt a. d. Saale 1 RHÖN-KLINIKUM Services GmbH, Bad Neustadt a. d. Saale (formerly: RHÖN-Reinigungsgesellschaft mbH, Bad Neustadt a. d. Saale) RK Reinigungsgesellschaft Nordost mbH i. L., Bad Neustadt a. d. Saale (formerly: RK Reinigungsgesellschaft Nordost mbH, Bad Neustadt a. d. Saale) UKGM Service GmbH, Bad Neustadt a. d. Saale Interest held in % Result for the year Equity 100.0 58 0 100.0 3,040 353 100.0 204 100.0 68 –7 0 1 The company claims the exemptions pursuant to section 264 (3) HGB from preparing notes and, to the extent required by law, from preparing a management report as well as disclosure. 128 RHÖN-KLINIKUM AG | Annual Report 2020

CONSOLIDATED FINANCIAL STATEMENTS | Notes | Other disclosures 9 | OTHER DISCLOSURES 9.1 Average annual number of employees Medical doctors Nursing services Medical-technical services Functional Supply and misc. services Technical Administrative Other personnel 2020 2019 Change Number 1 Number 1 Number 1 1,083 5,026 2,607 1,629 2,000 270 1,050 4,727 2,652 1,674 2,016 273 1,123 1,127 312 291 33 299 –45 –45 –16 –3 –4 21 14,050 13,810 240 in % 3.1 6.3 –1.7 –2.7 –0.8 –1.1 –0.4 7.2 1.7 1 Headcount, excluding Board members, managing directors, apprentices, trainees and those in alternative national service. 9.2 Other financial obligations in € million 31 Dec. 2020 31 Dec. 2019 Order commitments 33.3 28.4 Other Due in subsequent year Due in 2 to 5 years Due in 5 years Total other 37.1 18.1 2.5 57.7 34.5 22.0 2.3 58.8 Of the figure for order commitments, € 1.2 million (previous year: € 2.3 million) is attributable to intangible assets, and € 26.8 million (previous year: € 22.1 million) is attributable to property, plant and equipment. The remaining other financial obligations are mainly attributable to service agreements (maintenance agreements, agreements concerning the sourcing of products, agreements relating to laundry services, etc.). As at the balance sheet date, there are no obligations under loan commitments to associates (previous year: € 2.5 million). The agree- ment from 2018 with the Federal State of Hesse in connection with the financing of the services to be rendered for research and teaching at the Group’s university hospitals provides for investment commit- ments in the amount of € 100.0 million until the end of 2021. As at the balance sheet date, already € 139.0 million (previous year: € 94.1 million) of that has been fulfilled. Moreover, the following investments are to be performed: at the Marburg site, the modern- isation of its clinic for psychiatry, the overhaul of the centralised operating theatre and IC units, as well as the new build of the clinic for paediatric and juvenile psychiatry are planned. At the Giessen site, the Paediatric Heart Centre will be expanded and an extension added to the University Hospital. For these measures, € 19.4 million (previous year: € 10.7 million) has already been invested. Our hospitals at the Giessen and Marburg sites continue to be committed to fore- going redundancies until the end of financial year 2021 and to take over trainees into permanent employment if they possess the right qualifications for the respective positions. In addition, absolute bank guarantee undertakings not limited by contract exist for claims of the associations of accredited physicians (kassenärztliche Vereinigungen) and health insurance funds against medical care centre subsidiaries from their accredited physician activi- ties, and with a medical care centre subsidiary a contract performance guarantee amounting to € 0.3 million (previous year: € 0.2 million) as security for advance payments of the association of accredited physicians. As part of the construction of the new hospital in Bad Neustadt a. d. Saale, a bank guarantee in the amount of € 0.1 million (previous year: € 0.1 million) was granted to secure the reforestation agreement with the Free State of Bavaria. Moreover, one aval guarantee (Aval-Bürgschaftserklärung) in the amount of € 3.5 million (previous year: € 3.5 million) exists for claims to government grants of the Free State of Bavaria. Furthermore, an absolute guarantee (selbstschuldnerische Bürgschaft) exists for claims to government grants of the Free State of Bavaria in the amount of € 0.2 million (previous year: € 0.2 million). There is also a litigation guarantee in connection with a lawsuit amounting to € 1.9 million (previous year: € 1.9 million) and a rental guarantee amounting to € 0.0 million (previous year: € 0.0 million). It is no longer expected that any claims will be made under the guarantees. 130 RHÖN-KLINIKUM AG | Annual Report 2020

CONSOLIDATED FINANCIAL STATEMENTS | Notes | Other disclosures There is also income from non-terminable leases. The minimum lease payments to be received in future (up to one year) are € 0.7 million (previous year: € 0.7 million). The minimum lease payments for the period of up to five years are stated at € 1.2 million (previous year: € 1.5 million). The corresponding figure for the period in excess of five years is € 0.3 million (previous year: € 0.2 million). 9.4 Related parties According to the definition of IAS 24.9, related parties are those related to the reporting entity. Such parties are in particular natural persons who control the reporting entity or are involved in its joint management, exercise a material influence or hold a key position in the corporate management of the reporting entity. The same is true of close relatives of such persons. A person’s close relatives are family members who may be assumed to be capable of influencing such person or being influenced by such person in their transactions with the Company. That includes children and spouses of life partners of such person, children of the spouse of life partner of such person and dependants of such person or of the spouse of life partner of such person. Also included are companies of the same corporate group and companies subject to or exercising a material influence. Companies in the RHÖN-KLINIKUM Group enter into transactions with related parties in certain cases. These in particular include lettings of buildings as well as services related to nursing as well as supply of staff. Such service or lease relations are arranged at arm’s length terms. Related companies are accordingly defined as all companies in which we own an interest of between 20.0% and 50.0% or which were not included in the consolidated financial statements on the grounds of materiality (for the companies of the Group, please refer to the list of shareholdings in these Notes). Jointly managed joint ventures are also deemed to be related companies. From the point of view of the Group, the volume of transactions with related companies in financial year 2020 was as follows: in € ’000 Seniorenpflegeheim GmbH Bad Neustadt a. d. Saale, Bad Neustadt a. d. Saale 4QD – Qualitätskliniken.de GmbH, Berlin HOSPIZ MITTELHESSEN gemeinnützige GmbH, Wetzlar Expenses 2020 Income 2020 Receivables 31 Dec. 2020 Liabilities 31 Dec. 2020 – 7 20 27 370 – – 370 1 – – 1 – 5 – 5 From the point of view of the Group, the volume of transactions with companies consolidated using the equity method in financial year 2020 was as follows: in € ’000 Energiezentrale Universitätsklinikum Gießen GmbH, Giessen 688 688 – 0 – 0 112 112 Expenses 2020 Income 2020 Receivables 31 Dec. 2020 Liabilities 31 Dec. 2020 The receivables and liabilities result from supply and service relationships. 132 RHÖN-KLINIKUM AG | Annual Report 2020

CONSOLIDATED FINANCIAL STATEMENTS | Notes | Other disclosures The following services were recognised in the income statement under other income: in € ’000 Related party Companies as defined by IAS 24 Nature of services 2020 2019 Income Dr Bernard große Broermann Asklepios-Kliniken Group of which Asklepios Kliniken GmbH & Co. KGaA Eugen Münch Stephan Holzinger Services, pharmacy services and medical products Services and medical products Telephone expenses, insurance fees, other services Other services 942 777 0 3 – 0 11 1 As at the balance sheet date of 31 December 2020, the following trade payables existed: in € ’000 Related party Companies as defined by IAS 24 Nature of services 2020 2019 Liabilities Dr Bernard große Broermann Asklepios-Kliniken Group Eugen Münch Prof Dr Gerhard Ehninger (until 15 January 2021) of which Asklepios Kliniken GmbH & Co. KGaA AgenDix – Applied Genetic Diagnostics – Gesellschaft für angewandte molekulare Diagnostik mbH B. Braun Konzern (primarily B. Braun Melsungen AG and Aesculap AG) (until 3 July 2020) Purchase of services and medical products Services and medical products Fee for services Laboratory services Purchase of medical products 1,907 1,024 48 2 – 10 0 – 1 413 134 RHÖN-KLINIKUM AG | Annual Report 2020

CONSOLIDATED FINANCIAL STATEMENTS | Notes | Other disclosures 9.5 Total payments of Supervisory Board, the Board of Management and the Advisory Board The total expenditures (excluding VAT) for members of the Super- visory Board are broken down below: in € ’000 Total payments Eugen Münch (until 19 August 2020) Dr Jan Liersch (from 3 June 2020) Georg Schulze Wolfgang Mündel (until 19 August 2020) Hafid Rifi (from 19 August 2020) Dr Annette Beller (until 3 June 2020) Peter Berghöfer Prof Dr h. c. Ludwig Georg Braun (until 5 June 2019) Nicole Mooljee Damani (from 19 August 2020) Dr Julia Dannath-Schuh (from 3 June 2020) Regina Dickey (from 19 August 2020) Peter Ducke (from 19 August 2020) Prof (apl.) Dr med. Leopold Eberhart (from 19 August 2020) Prof Dr Gerhard Ehninger (until 15 January 2021) Irmtraut Gürkan (from 19 August 2020) Jan Hacker (from 5 June 2019 to 19 August 2020) Stefan Härtel (until 19 August 2020) Kai Hankeln (from 19 August 2020) Klaus Hanschur (until 19 August 2020) Meike Jäger (until 19 August 2020) Dr med. Martin Mandewirth (from 19 August 2020) Dr Brigitte Mohn (until 19 August 2020) PD Dr med. Thomas Pillukat (from 19 August 2020) Christine Reißner Oliver Salomon Evelin Schiebel (until 19 August 2020) Dr Katrin Vernau (until 3 June 2020) Natascha Weihs (until 19 August 2020) 2020 2019 219 67 122 196 27 83 91 0 18 40 18 15 20 68 18 57 55 16 50 70 18 43 15 81 70 57 56 57 352 0 138 296 0 161 100 33 0 0 0 0 0 59 0 49 82 0 82 100 0 54 0 100 82 88 92 80 As at the balance sheet date, liabilities to members of the Supervisory Board in the amount of € 1.3 million (previous year: € 1.6 million) exist. 1,647 1,948 136 RHÖN-KLINIKUM AG | Annual Report 2020

CONSOLIDATED FINANCIAL STATEMENTS | Notes | Other disclosures in € ’000 Incumbent member of Board of Management Dr Gunther K. Weiß (member of Board of Management from 1 May 2018) Base salary (fixed remuneration) Fringe benefits Total One-year variable remuneration Management profit sharing Total payments Pension expense 1 Total remuneration 1 Pension expenditure includes past service cost according to IAS 19. Inducements granted Inflow 2020 2019 2020 (min.) 2020 (max.) 2020 2019 192 17 209 708 917 130 192 13 205 708 913 121 192 17 209 708 917 130 1,047 1,034 1,047 192 17 209 1,308 1,517 130 1,647 192 17 209 708 917 0 917 192 13 205 708 913 0 913 in € ’000 Former member of Board of Management member of Board of Management until 22 June 2020; service relationship until 30 September 2020) Stephan Holzinger (Chairman of Board of Management until 16 June 2020; Base salary (fixed remuneration) Fringe benefits Total One-year variable remuneration Management profit sharing Total payments Pension expense 1 Severance payments Total remuneration 1 Pension expenditure includes past service cost according to IAS 19. Inducements granted Inflow 2020 2019 2020 (min.) 2020 (max.) 2020 2019 1,350 8 1,358 0 1,358 63 1,872 3,293 1,800 16 1,816 0 1,816 249 0 2,065 1,350 8 1,358 0 1,358 63 1,872 3,293 1,350 8 1,358 1,000 2,358 63 1,872 4,293 1,350 8 1,358 0 1,358 825 1,872 4,055 1,800 16 1,816 0 1,816 0 0 1,816 138 RHÖN-KLINIKUM AG | Annual Report 2020

CONSOLIDATED FINANCIAL STATEMENTS | Notes | Other disclosures During the 2020 reporting period, RHÖN-KLINIKUM AG received the following notifications on transactions for own account by persons discharging managerial responsibilities pursuant to Article 19 of the Market Abuse Regulation (EU) No 596/2014: Date of transaction First and last name 28 May 2020 Eugen Münch Position/status Financial instrument and ISIN Nature and place of transaction Quantity Price Business volume Chairman of the Supervisory Board of RHÖN-KLINIKUM AG Sale of shares, DE0007042301 Sale of shares, outside a trading venue 2,469,971 € 18.00 € 44,459,478.00 28 May 2020 Ingeborg Münch Person has a close relationship 26 May 2020 HCM SE to Eugen Münch, chairman of the Supervisory Board of RHÖN-KLINIKUM AG Person has a close relationship to Eugen Münch, chairman of the Supervisory Board of RHÖN-KLINIKUM AG Sale of shares, DE0007042301 Sale of shares, outside a trading venue 1,935,546 € 18.00 € 34,839,828.00 5,097,578 not quantifiable not quantifiable Contribution, DE0007042301 Contribution of shares in RHÖN-KLINIKUM AG to AMR Holding GmbH under a joint venture agreement, between HCM SE and Asklepios Kliniken GmbH & Co. KGaA dated 28 February 2020, outside a trading venue 26 May 2020 Eugen Münch Chairman of the Supervisory Board of RHÖN-KLINIKUM AG Sale of shares, DE0007042301 Sale of shares, outside a trading venue 2,180,112 € 18.00 € 39,242,016.00 26 May 2020 Ingeborg Münch Person has a close relationship to Eugen Münch, chairman of the Supervisory Board of RHÖN-KLINIKUM AG Sale of shares, DE0007042301 Sale of shares, outside a trading venue 1,708,778 € 18.00 € 30,758,004.00 For the statements on share-based compensation within the meaning of IFRS 2 (cash-settled share-based payment transactions), we refer to Note 2.16.4 “Share-based payments”. 140 RHÖN-KLINIKUM AG | Annual Report 2020

CONSOLIDATED FINANCIAL STATEMENTS | Notes | Corporate bodies of RHÖN-KLINIKUM AG 10 | CORPORATE BODIES OF RHÖN-KLINIKUM AG The Supervisory Board of RHÖN-KLINIKUM AG comprises the following persons: Dr Jan Liersch Business address at Königstein-Falkenstein, managing director of Broermann Holding GmbH, Chairman of the Supervisory Board (from 3 June 2020 Supervisory Board member, from 19 August 2020 Chairman of the Supervisory Board) Also a member of the Supervisory Board of: – MEDICLIN Aktiengesellschaft, Offenburg (Chairman of the Supervisory Board) Other mandates: – Hotel Montreux Palace S.A., Montreux, Switzerland (Chairman of the Board of Directors) – Hôtel Suisse Majestic S.A., Montreux, Switzerland (Chairman of the Board of Directors) Dr Julia Dannath-Schuh Zurich, Switzerland, Vice President Human Resources Development & Leadership ETH Zurich (from 3 June 2020) Also a member of the Supervisory Board of: – Asklepios Kliniken GmbH & Co. KGaA, Hamburg – MEDICLIN Aktiengesellschaft, Offenburg Other mandates: – Alsia und Partners AG, Hünenberg, Switzerland (member of the Board of Directors) Regina Dickey Giessen, administrative employee (from 19 August 2020) Georg Schulze Frankfurt am Main, 1st Deputy Chairman, Regional Director of ver.di, region of Hesse Peter Ducke Kirchhain, employee in nursing service (from 19 August 2020) Hafid Rifi Business address at Königstein-Falkenstein, 2nd Deputy Chairman, Chief Financial Officer of Asklepios Kliniken GmbH & Co. KGaA (from 19 August 2020) Also a member of the Supervisory Board of: – Universitätsklinikum Gießen und Marburg GmbH, Giessen Prof (apl.) Dr med. Leopold Eberhart Marburg, medical doctor (from 19 August 2020) Irmtraut Gürkan Alsbach, Dipl.-Volkswirtin (economist) (from 19 August 2020) Also a member of the Supervisory Board of: – Charité Universitätsmedizin Berlin, Berlin Peter Berghöfer Münchhausen, Head of Finance, Universitätsklinikum Gießen und Marburg GmbH, Giessen Other mandates: – Eurotransplant International Foundation, Leiden, Netherlands (Member of the Supervisory Board) – Stiftung Alice-Hospital vom Roten Kreuz zu Darmstadt, Also a member of the Supervisory Board of: – Universitätsklinikum Gießen und Marburg GmbH, Giessen Darmstadt (Member of the Board of Trustees) – Universitätsspital Basel, Basel, Switzerland (Member of the Board of Directors) Nicole Mooljee Damani Rottach-Egern, corporate consultant (from 19 August 2020) 142 RHÖN-KLINIKUM AG | Annual Report 2020

CONSOLIDATED FINANCIAL STATEMENTS | Notes | Corporate bodies of RHÖN-KLINIKUM AG Dr Brigitte Mohn Gütersloh, member of the Board of Management of Bertelsmann Stiftung (until 19 August 2020) Also a member of the Supervisory Board of: – Bertelsmann SE & Co. KGaA, Gütersloh – Bertelsmann Management SE, Gütersloh – PHINEO gAG, Berlin (Chairman of the Supervisory Board) Other mandates: – Bauhaus der Erde (member of the Initiative Group (Initiativkreis)) – Bundesverband Deutsche Startups e. V., Berlin (member of the Board of Trustees) – Clue by Biowink GmbH, Berlin (member of the Advisory Board) – European Center for Digital Competitiveness (ESCP), Berlin (member of the Advisory Board) – Human Capital Network, London (member of the Advisory Council) – State Government of North Rhine-Westphalia, Düsseldorf (member on the Advisory Council for Participation and Integration) – Member of Bertelsmann Verwaltungsgesellschaft mbH, Gütersloh – Peres Center for Peace and Innovation, Israel (member on the International Board of Governors) – Reinhard-Mohn-Institut für Unternehmensführung, Witten (member of the Board of Trustees) – Regine Sixt Kinderhilfe Stiftung, Pullach (member of the Advisory Board) – Stiftung Michael Skopp, Bielefeld (member of the Board of Trustees) Wolfgang Mündel Kehl, 2nd Deputy Chairman, Wirtschaftsprüfer (German public auditor) and tax consultant in own practice (until 19 August 2020) Other mandates: – Jean d’Arcel Cosmétique GmbH & Co. KG, Kehl (Chairman of the Advisory Board) (until 24 January 2020) – HCM SE, Bad Neustadt a. d. Saale (Chairman of the Board of Directors) Evelin Schiebel Görsbach, nurse (until 19 August 2020) Dr Katrin Vernau Hamburg, Administrative Director of WDR Westdeutscher Rundfunk, Cologne (until 3 June 2020) Also a member of the Supervisory Board of: – Bavaria Film GmbH, Geiselgasteig – Universitätsklinikum Gießen und Marburg GmbH, Giessen – WDR mediagroup GmbH, Cologne Other mandates: – Fee service of ARD, ZDF and Deutschlandradio, Cologne (Chairman of the Board of Directors) – Gothaer Versicherungsbank – Stiftung Deutsche Schlaganfall-Hilfe, Gütersloh (member of Members’ Representatives) (Chairman of the Board of Trustees) – IVZ Informationsverarbeitungszentrum, Cologne – Sunrise Capital GmbH, Leopoldshöhe (Managing Shareholder) – Volunteer Directly Ltd, GivingWay, Israel (member of the Advisory Board) – RTL-Stiftung “Wir helfen Kindern”, Cologne (member of the Board of Trustees) (member of the Board of Directors) – Köln Musik GmbH, Köln (representative of the shareholder WDR) – Rheinische Friedrich-Wilhelms-Universität Bonn, Bonn (member and Deputy Chairman of the University Council) Natascha Weihs Bad Neustadt a. d. Saale, physiotherapist (until 19 August 2020) Eugen Münch Bad Neustadt a. d. Saale, Chairman of the Supervisory Board (until 19 August 2020) Other mandates: – HCM SE, Bad Neustadt a. d. Saale (managing director) – Stiftung Münch, Munich (Board of Management) 144 RHÖN-KLINIKUM AG | Annual Report 2020

CONSOLIDATED FINANCIAL STATEMENTS | Responsibility Statement Responsibility Statement We assure to the best of our knowledge that based on the accounting principles to be applied to the Consolidated Financial Statement of RHÖN-KLINIKUM AG a true and fair view of the asset, financial and earnings position of the Group is given therein and that the Consoli- dated Report of the Management presents the business performance including the situation of the Group in such a way as to give a true and fair view of the same as well as a description of the material risks and opportunities involved in the probable development of the Group of RHÖN-KLINIKUM AG. Bad Neustadt a. d. Saale, 23 February 2021 RHÖN-KLINIKUM Aktiengesellschaft THE BOARD OF MANAGEMENT Prof Dr Bernd Griewing Dr Christian Höftberger Dr Stefan Stranz Dr Gunther K. Weiß 146 RHÖN-KLINIKUM AG | Annual Report 2020

CONSOLIDATED FINANCIAL STATEMENTS | Independent auditor’s report Our presentation of these key audit matters has been structured in each case as follows: 1 Matter and issue 2 Audit approach and findings 3 Reference to further information Hereinafter we present the key audit matters: 1 1 Recognition of revenue generated from hospital services provided and revenue settlement (Erlösausgleiche) The revenue amounting to EUR 1,360.1 million recognized in the Company's consolidated financial statements relates pri- marily to hospital services and is therefore largely subject to the statutory fee regulations for the healthcare sector. For the purposes of settling the services that hospitals provide, the health insurance funds, in their capacity as the payer, and the respective hospital annually negotiate and agree revenue budg- ets pursuant to § 4 KHEntgG [Krankenhausentgeltgesetz: Hospital Reimbursement Act] and care budgets pursuant to § 6a KHEntgG. The basis for this is the measurement of the general hospital ser- vices within the health care mandate of the respective hospital. The service volumes actually provided in the budget and fee year are settled in accordance with § 4 Abs. 3 KHEntgG and the revenue deviations resulting from the continued levying of the previous state prime rate and previous fees are settled in accord- ance with § 15 Abs. 3 KHEntgG by way of revenue settlement. If, in addition, the total of the hospital's revenues from daily care fees pursuant to § 15 Abs. 2a KHEntgG falls short of the total of the costs relevant to the nursing budget in the financial year, settle- ment amounts may also be claimed by applying § 6a Abs. 2 and Abs. 5 KHEntgG accordingly within the framework of the budget and fee agreements. Since the budgets are negotiated primarily during the course of the financial year or only after the end of the financial year, the executive directors of the companies of the RHÖN-KLINIKUM Group estimate the service quantities to be remunerated as of the balance sheet date, which are affected by adjustments to revenue and the corresponding recognition of settlement receivables and liabilities. Furthermore, in accordance with § 275 SGB V [Sozialgesetzbuch V: Book V of the German Social Code] and § 17c Abs. 1 KHG [Krankenhausfinanzierungsgesetz: German Hospital Financing Act], the health insurance funds generally have the right to have the coded revenue reviewed by Medizinischer Dienst der Kranken- versicherung (MDK) and the settlement of care rates. The revenue from the hospital services provided is adjusted by the executive directors of the companies of the RHÖN-KLINIKUM Group on the 2 basis of estimates in relation to the MDK's change rate, and on the basis of experience. In turn, the final findings of MDK's reviews influence the revenue settlement for the respective financial year. In order to ensure short-term liquidity and compensation for services during the coronavirus crisis, various changes to hos- pital financing were implemented which will have an impact in particular through the introduction of compensation payments pursuant to § 21 Abs. 1 and Abs. 2 KHG for the period from 16 March 2020 to 30 September 2020, and compensation pay- ments pursuant to § 21 Abs. 1a and Abs. 2a KHG for the period from 18 November 2020 to 28 February 2021. The aforemen- tioned compensation payments were recognized under revenue. The recognition of revenue and revenue adjustments are based to a large degree on the executive directors' estimates and as- sumptions and are therefore subject to considerable uncertain- ties. Against this background and due to the underlying complex- ity of the measurement on which this material item was based, revenue recognition was of particular significance for our audit. As part of our audit, we, among other things, used the con- tractual documents and other correspondence provided to us to gain an overview of the budget arrangements between the health insurance funds and the respective hospitals of the RHÖN-KLINIKUM Group as well as the respective remunerated service quantities. With the knowledge that estimated values result in an increased risk of accounting misstatements and that the executive directors' measurement decisions have a direct and significant effect on consolidated profit, we assessed the ap- propriateness of the budget estimates, the care budget-relevant costs, the revenue settlements and the revenue adjustments performed on basis of the MDK's verifications. In order to assess the appropriateness of the revenue recognized as of the balance sheet date, we assessed the Company's processes for recog- nizing and adjusting revenue from provided hospital services and we examined the method the executive directors use for performing revenue adjustments. Furthermore, we also evalu- ated the executive directors' related assumptions relating to the remunerated service quantities as of the balance date on the basis of the detailed information provided to us. We compared the revenue adjustments with the minutes and records provided to us of the respective negotiations with the health insurance funds as well as the outcomes of negotiations in previous years. For the revenue settlements, we also evaluated the process for determining the revenue settlements, incl. the care budget-re- lated costs, in addition to validating the revenue figures using the respective information on hospital services provided by the patient management system and the underlying agreements. 148 RHÖN-KLINIKUM AG | Annual Report 2020

CONSOLIDATED FINANCIAL STATEMENTS | Independent auditor’s report In connection with our audit, our responsibility is to read the other information and, in so doing, to consider whether the other infor- mation – is materially inconsistent with the consolidated financial state- ments, with the group management report or our knowledge obtained in the audit, or – otherwise appears to be materially misstated. Responsibilities of the Executive Directors and the Supervisory Board for the Consolidated Financial Statements and the Group Management Report The executive directors are responsible for the preparation of the consolidated financial statements that comply, in all material re- spects, with IFRSs as adopted by the EU and the additional require- ments of German commercial law pursuant to § 315e Abs. 1 HGB and that the consolidated financial statements, in compliance with these requirements, give a true and fair view of the assets, liabilities, financial position, and financial performance of the Group. In addi- tion, the executive directors are responsible for such internal control as they have determined necessary to enable the preparation of consolidated financial statements that are free from material mis- statement, whether due to fraud or error. In preparing the consolidated financial statements, the executive directors are responsible for assessing the Group’s ability to continue as a going concern. They also have the responsibility for disclosing, as applicable, matters related to going concern. In addition, they are responsible for financial reporting based on the going concern basis of accounting unless there is an intention to liquidate the Group or to cease operations, or there is no realistic alternative but to do so. Furthermore, the executive directors are responsible for the prepa- ration of the group management report that, as a whole, provides an appropriate view of the Group’s position and is, in all material respects, consistent with the consolidated financial statements, complies with German legal requirements, and appropriately pre- sents the opportunities and risks of future development. In addition, the executive directors are responsible for such arrangements and measures (systems) as they have considered necessary to enable the preparation of a group management report that is in accord- ance with the applicable German legal requirements, and to be able to provide sufficient appropriate evidence for the assertions in the group management report. The supervisory board is responsible for overseeing the Group’s fi- nancial reporting process for the preparation of the consolidated financial statements and of the group management report. Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements and of the Group Management Report Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and whether the group management report as a whole provides an appropriate view of the Group’s position and, in all material respects, is consistent with the consolidated financial statements and the knowledge obtained in the audit, complies with the German legal requirements and ap- propriately presents the opportunities and risks of future develop- ment, as well as to issue an auditor’s report that includes our audit opinions on the consolidated financial statements and on the group management report. Reasonable assurance is a high level of assurance, but is not a guar- antee that an audit conducted in accordance with § 317 HGB and the EU Audit Regulation and in compliance with German Generally Accepted Standards for Financial Statement Audits promulgated by the Institut der Wirtschaftsprüfer (IDW) will always detect a material misstatement. Misstatements can 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 consolidated financial statements and this group management report. We exercise professional judgment and maintain professional skep- ticism throughout the audit. We also: – Identify and assess the risks of material misstatement of the con- solidated financial statements and of the group management report, 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 audit opinions. 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 controls. – Obtain an understanding of internal control relevant to the audit of the consolidated financial statements and of arrangements and measures (systems) relevant to the audit of the group management report in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of ex- pressing an audit opinion on the effectiveness of these systems. – Evaluate the appropriateness of accounting policies used by the executive directors and the reasonableness of estimates made by the executive directors and related disclosures. 150 RHÖN-KLINIKUM AG | Annual Report 2020

CONSOLIDATED FINANCIAL STATEMENTS | Independent auditor’s report Basis for the Reasonable Assurance Conclusion We conducted our assurance engagement on the reproduction of the consolidated financial statements and the group management report contained in the above-mentioned attached electronic file in accordance with § 317 Abs. 3b HGB and the Exposure Draft of IDW As- surance Standard: Assurance in Accordance with § 317 Abs. 3b HGB on the Electronic Reproduction of Financial Statements and Manage- ment Reports Prepared for Publication Purposes (ED IDW AsS 410) [if considered to be beneficial for the understanding of the separate report on ESEF compliance in an international context: and the In- ternational Standard on Assurance Engagements 3000 (Revised)]. Accordingly, our responsibilities are further described below in the “Group Auditor’s Responsibilities for the Assurance Engagement on the ESEF Documents” section. Our audit firm has applied the IDW Standard on Quality Management: Requirements for Quality Man- agement in the Audit Firm (IDW QS 1). Responsibilities of the Executive Directors and the Supervisory Board for the ESEF Documents The executive directors of the Company are responsible for the preparation of the ESEF documents including the electronic repro- duction of the consolidated financial statements and the group man- agement report in accordance with § 328 Abs. 1 Satz 4 Nr. 1 HGB and for the tagging of the consolidated financial statements in accord- ance with § 328 Abs. 1 Satz 4 Nr. 2 HGB. In addition, the executive directors of the Company are responsible for such internal control as they have considered necessary to ena- ble the preparation of ESEF documents that are free from material non-compliance with the requirements of § 328 Abs. 1 HGB for the electronic reporting format, whether due to fraud or error. The executive directors of the Company are also responsible for the submission of the ESEF documents together with the auditor's re- port and the attached audited consolidated financial statements and audited group management report as well as other documents to be published to the operator of the German Federal Gazette [ Bundesanzeiger]. The supervisory board is responsible for overseeing the preparation of the ESEF documents as part of the financial reporting process. Group Auditor’s Responsibilities for the Assurance Engagement on the ESEF Documents Our objective is to obtain reasonable assurance about whether the ESEF documents are free from material non-compliance with the requirements of § 328 Abs. 1 HGB, whether due to fraud or error. We exercise profes- sional judgment and maintain professional skepticism throughout the assurance engagement. We also: – Identify and assess the risks of material non-compliance with the requirements of § 328 Abs. 1 HGB, whether due to fraud or error, design and perform assurance procedures responsive to those risks, and obtain assurance evidence that is sufficient and appro- priate to provide a basis for our assurance conclusion. – Obtain an understanding of internal control relevant to the as- surance engagement on the ESEF documents in order to design assurance procedures that are appropriate in the circumstances, but not for the purpose of expressing an assurance conclusion on the effectiveness of these controls. – Evaluate the technical validity of the ESEF documents, i.e., whether the electronic file containing the ESEF documents meets the requirements of the Delegated Regulation (EU) 2019/815 in the version applicable as at the balance sheet date on the technical specification for this electronic file. – Evaluate whether the ESEF documents enables a XHTML repro- duction with content equivalent to the audited consolidated financial statements and to the audited group management report. – Evaluate whether the tagging of the ESEF documents with Inline XBRL technology (iXBRL) enables an appropriate and complete machine-readable XBRL copy of the XHTML reproduction. Further Information pursuant to Article 10 of the EU Audit Regulation We were elected as group auditor by the annual general meeting on 19 August 2020. We were engaged by the supervisory board on 23 December 2020. We have been the group auditor of the RHÖN-KLINIKUM Aktiengesellschaft, Bad Neustadt a. d. Saale, with- out interruption since the financial year 1988. We declare that the audit opinions expressed in this auditor’s report are consistent with the additional report to the audit committee pursuant to Article 11 of the EU Audit Regulation (long-form audit report). German public Auditor responsible for the Engagement The German Public Auditor responsible for the engagement is Lars Müller. Frankfurt a. Main, 23 February 2021 PricewaterhouseCoopers GmbH Wirtschaftsprüfungsgesellschaft Lars Müller Wirtschaftsprüfer (German Public Auditor) ppa. Samuel Artzt Wirtschaftsprüfer (German Public Auditor) 152 RHÖN-KLINIKUM AG | Annual Report 2020

SUMMARY REPORT OF RHÖN-KLINIKUM AG | Proposed appropriation of profit Proposed appropriation of profit The annual financial statements of RHÖN-KLINIKUM AG for the year ended 31 December 2020, which have been prepared by the Board of Management, approved by the Supervisory Board and thus adopted as final, show a net distributable profit of € 193,221,024.38. The Board of Management and the Supervisory Board propose carrying forward the net distributable profit to new account. Bad Neustadt a. d. Saale, 24 March 2021 RHÖN-KLINIKUM Aktiengesellschaft The Supervisory Board The Board of Management 154 RHÖN-KLINIKUM AG | Annual Report 2020

FURTHER INFORMATION | Independent practitioner’s report We conducted our assurance engagement in accordance with the International Standard on Assurance Engagements (ISAE) 3000 (Revised): Assurance Engagements other than Audits or Reviews of Historical Financial Information, issued by the IAASB. This Standard requires that we plan and perform the assurance engagement to allow us to conclude with limited assurance that nothing has come to our attention that causes us to believe that the Company’s non- financial report for the period from 1 January to 31 December 2020 has not been prepared, in all material aspects, in accordance with §§ 315c in conjunction with 289c to 289e HGB. In a limited assurance engagement the assurance procedures are less in extent than for a reasonable assurance engagement, and therefore a substantially lower level of assurance is obtained. The assurance procedures selected depend on the practitioner’s judgment. Within the scope of our assurance engagement, we performed amongst others the following assurance procedures and further activities: – Obtaining an understanding of the structure of the sustainability organization and of the stakeholder engagement – Inquiries of the Company’s management and personnel involved in the preparation of the Non-financial Report regarding the preparation process, the internal control system relating to this process and selected disclosures in the Non-financial Report – Identification of the likely risks of material misstatement of the non-financial report – Analytical evaluation of selected disclosures in the non-financial report – Comparison of selected disclosures with corresponding data in the consolidated financial statements and in the group management report – Evaluation of the presentation of the non-financial information Assurance Conclusion Based on the assurance procedures performed and assurance evi- dence obtained, nothing has come to our attention that causes us to believe that the Company’s Non-financial Report for the period from 1 January to 31 December 2020 has not been prepared, in all material aspects, in accordance with §§ 315c in conjunction with 289c to 289e HGB. Intended Use of the Assurance Report We issue this report on the basis of the engagement agreed with the Company. The assurance engagement has been performed for purposes of the Company and the report is solely intended to inform the Company about the results of the limited assurance engagement. The report is not intended for any third parties to base any (financial) decision thereon. Our responsibility lies only with the Company. We do not assume any responsibility towards third parties. Frankfurt a. Main, 23 February 2021 PricewaterhouseCoopers GmbH Wirtschaftsprüfungsgesellschaft Nicolette Behncke Wirtschaftsprüfer (German Public Auditor) ppa. Meike Beenken Wirtschaftsprüfer (German Public Auditor) 156 RHÖN-KLINIKUM AG | Annual Report 2020

RHÖN-KLINIKUM AG Salzburger Leite 1 97 616 Bad Neustadt a. d. Saale Germany