Good morning, everyone, and welcome to the Q1 2026 report presentation for Flerie. I'm joined by my colleague Cecilia Sporrong von Schéele, and of course I'm Ted Fjällman, the CEO, and we'll be going through a short presentation and then happy to take Q&A moderated by us.

Just a short disclaimer. I'm sure you will all act accordingly.

I also will not spend that much time on reminding you who you are. I think we're quite well known now that we have 25 portfolio companies spread across a diversified portfolio and of course investing in innovative, cutting-edge science.

What is new on this slide is that we have introduced for this year a new ratio. It's called the investment ratio.

A little bit more about that later, but in essence we are monitoring for every crown invested by Flerie, how much do the other investors that we co-invest with, the syndication partners, if you wish, how much do they put into our portfolio at the same time? During the quarter, it was more than 2.3 times.

I think I'm very proud of that as a consistent, good measure throughout 2025, which is why we've included it now in our main measures as you will see in the Q1 report at the bottom of the table, the so-called investment ratio. What was Q1 really about?

It was about a successful financing that will allow us to realize value. What I mean by that is it is important in these times of uncertainty to have enough cash to be able to make the right deals, both with co-investors and with others, to bring your companies to the right milestones.

I'll talk a lot about that during this quarterly report presentation. In brief, our current net asset value is 3.6 billion SEK, 41.9 SEK per share.

It's almost 3.7 if you round it up. We have good cash and cash equivalents of 585 million or 6.68 SEK per share.

Again, to remind that we are investing this money into our portfolio with limited investment into new companies in our portfolio mainly through the Frontier BioSolutions effort with KKR. There have been steady and significant R&D progress throughout the quarter.

I'm just exemplifying four here: Carbaio reported strong Phase 1 and 2 results in colorectal cancer. They've also started and enrolled patients in the Phase 2b trial in Australia and the US.

Atrogi, our obesity company, one of two actually, they've dosed their first patient in a human trial where they will evaluate physiological effects of their drug, which is specifically a muscle-sparing obesity drug. That's a niche that very few have had good data in, and we're quite excited about getting these physiological effects.

It's actually a kind of an efficacy readout, if you wish. It's a Phase 2 study, and Atrogi is therefore moving into Phase 2.

Microbiontica also announced strong Phase 1b results. Actually, we were very positively surprised about these results in ulcerative colitis.

For those of you who have previously followed ulcerative colitis, this is an area that's a very difficult and unmet medical need, excited to have good data there. Sentiela completed its Phase 1/2a X-Stem study in venous leg ulcers.

Of course, as Sentiela is mainly focused on osteoarthritis, but showing this data in venous leg ulcers means that it's showing the platform can be used across several different areas, and of course that should increase the value and the attractiveness of Sentiela and its technology. Other significant news and value changes: so if we look at the left side of this slide, you can see that news flow has been plentiful.

In fact, that's not an exhaustive list at all, but Lipum was selected for an €8 million Horizon Europe grant, which is directly useful to our cash flow in Flerie, and Cecilia will speak a little bit about that later. Xspray resubmitted its NDA for Dasynoc with a new PDUFA date of 25th of August.

I might remind everyone that there's also a PDUFA date for their second program, nilotinib, in June. Sentiela, as mentioned, completed their venous leg ulcer study.

Anacardio was granted a US patent, and they also presented at a very prestigious conference, which I just haven't written here, but there's a lot of good work happening at Anacardio. Mendus expanded its AML development collaboration in Australia with the research institute there.

That is a very good collaboration that should yield interesting data. Nanologica acquired a contract manufacturing unit, or a Syntagon as it was called, and they've completed a rights issue as well.

Both of these will allow them to expand both their manufacturing footprint and also gain liquidity to grow their sales. As you can see on the right-hand side, unfortunately, the three listed companies that are mentioned here, they're all negative developments, but that's really because of what's happening in the world, I think.

The general market conditions are very shaky at the moment, as many of you know. We do, however, in these shaky market conditions function very well.

I would say we catalyze significant investments. These are just three examples: Geneus, Nanologica, and Kahr, where you can see in the large number what others have invested and in the brackets what Flerie has invested.

This underpins that very investment ratio I spoke about on the first slide, where during the quarter syndicating partners invested 403 million in total alongside our 173 million. That actually translates to a portfolio investment ratio of 2.33x.

In other words, for every crown spent by Flerie, you're getting 2.33 crowns invested by others into our portfolio. We really are getting a lot of leverage out of the Flerie brand, and that's part of the reason why we have to do what we do.

We need to have the cash to invest to get the best conditions, to create syndications with others, and I'll speak a bit more about that on the coming slides. First, I would say this quarter will be known for the successful financing.

There have been a lot of questions around this, and I will be very happy to answer them in the Q&A. In summary, I'm very happy that we've been able to take in significant funding at very good conditions.

We're continuously optimizing our capital structure. As we're an investment company.

We need to have cash deployment to be able to see our companies succeed through to the true milestones so that we know that they can get to and get the data that enables them to do partnering or even an exit. During the quarter one, this was achieved by a merger with Lipum and share sales.

That brought in, on the right-hand side you can see there in Swedish, Christian von Koenigsegg as a long-term investor. He's now one of the top 10 owners in Flerie.

I would say that he actually both bought shares, he had some shares in Lipum, and he was part of the share issue. He's really a good example of the types of people that we've brought in, and we've spread our ownership structure as well.

We've also done this directed share issue to existing investors as well as new investors. Finally, the last bullet there, the termination of the redemption and bonus issue was an important part of Q1, and Cecilia will speak more about that.

All in all, our financing and removal of the redemption scheme will enable us to deliver on milestones and realize significant value, which we have to do at the best possible time for our shareholders. That's why it's good to have the cash to do so.

A little bit details about the financing then. The merger was completed on March 20th.

We press released there as well. Lipum is therefore a fully absorbed entity into Flerie.

It was delisted from the Nasdaq First North and now continues as a private subsidiary. In connection to the merger, Lipum shares worth 132 million SEK were sold.

This is important, I think. I really want to stress this.

They were sold on average at 4.2% discount or 4.2% below the new issue price. The issue that we did, the share issue, was done at zero discount.

It was done at list price. On average we sold the Lipum shares at 4.2% discount.

I cannot stress enough that there are no biotech companies in the market at the moment who are able to do a fundraise at no discount or just a discount of 4.2%. I'm very proud of the team to achieve this, because it means we can reach the milestones in our portfolio.

In the box below, you can see that the exchange ratio was 2.4421. That number is etched in my mind.

Just for those of you who it's not etched in the mind, it was at the end when we finalized the merger, the Lipum share price was at 14.25 SEK per share. That translates to 34.8 SEK per share of Flerie shares.

The market at the time was at 35.05 SEK per share. I think it's very clear that this was a transparent and good development.

On the right-hand side, you can see details of the directed new share issue, how many shares were issued, that we raised 76 million, and that this created dilution of approximately 2.7%. There were, as said, two internal investors, AP4 and Carielo Invest, that's Lars Backsell's investment fund, and also a new long-term investor, as mentioned, Christian von Koenigsegg, who's come in.

Then together with that, we actually raised 132 million, as mentioned. We now really have this cash position, a total of 208 million SEK raised.

We have this cash position that will allow us to reach key milestones that really will create financial value as well as this R&D value that we have and that continuously shows through our news flow. With that, I'll go over to Cecilia to speak a little bit more about the numbers.

Over to you, Cecilia.

Thank you, Ted. We can go to the next slide, I will continue with the redemption program and the share issue.

As since 2024, Flerie has offered shareholders the opportunity to annually convert up to 5% of their shares for redemption at the latest reported NAV per share rather than the prevailing market price. This structure was designed to provide for the shareholders downside protection and also liquidity.

At the AGM that we held in March, it was resolved to discontinue this program. The reason for this was to prevent cash drains and also to be able to deploy all the cash we had into our portfolio instead to further create value.

This year is therefore the final year of the redemption program, and in the final redemption period that took place end of March, shares corresponding to around 11% of the total share capital were submitted. Following the 5% limit, in the end, 45% of the submitted shares will be redeemed, and the payment for the redeemed shares will take place on or around the 4th of May.

The AGM in March also approved a bonus issue that will take place in May, and the record date for the bonus issue will be the 18th of May. Shareholders will receive one new ordinary share for every seven shares held.

Importantly, our largest shareholder, which holds approximately 67% now of the shares, has committed to cancel all of its bonus shares, and as a result, the remaining shareholders after the redemption and the bonus issue will benefit from an effective increase in ownership of 15.5% without having to contribute any additional capital. In addition, the higher number of shares in circulation is also expected to improve liquidity in the Flerie share.

It's a good thing, good opportunity. We can go to the next slide and look at the financials for the quarter.

Our net asset value, as Ted already commented on, was 3.7 billion at the end of the quarter. It's up 9% from Q4.

At the same time, the NAV per share decreased 41 41.9 SEK. The increase in NAV and the decrease in NAV per share is mainly explained by the share issues in the quarter: the directed share issue of 76 million and the issue of new shares as merger consideration from the merger with Lipum that was 279 million.

Both of them were conducted at market value, that's closing price at the date for the issue, and following the discount in the share price to NAV, the NAV per share consequently decreases. Our portfolio value end of Q1 was 2.9 billion, up from 2.6 end of Q4.

The changes consist of, firstly, a fair value change. As Ted mentioned, we saw smaller kind of negative change in share prices for the listed companies in the portfolio, so that's 43 million in the quarter.

We have also divested part of our shares in Lipum prior to the merger, and together with the value of the remaining shares that are picked out from the portfolio, it has reduced the portfolio value by 198 million. Finally, in the quarter, we have investments of 521 million.

Seems rather high, but a part of it, a big part of it is the portion that relates to Lipum, the merger with Lipum, where the new acquisition cost and fair value is 348 million. With that, we can look at the segments more in detail and go to the next slide.

Thank you. The Product Development segment had a total portfolio value end of Q1 of 2.3 billion, up 230 million in the quarter.

The change in fair value in the segment was negative 24 million, and that was entirely explained by negative share price development for the listed companies, essentially Mendus and SynAct, and also for Lipum for the period up until the merger. In the quarter, we invested 452 million, and a large portion again, 348 million of that, was the acquisition value for new Lipum after the merger.

Other investments were 104 million, and were follow-on investments into Geneus, Kahr, and Prokarium. Divestments, again, 198 million, both selling parts of shares in Lipum prior to the merger and then the value of the remaining shares in the merger, an additional 69 million that got picked out.

In the Commercial Growth segment, finally, we saw an increase in the portfolio value in the quarter up to 630 million. The change in fair value was negative 20 million, and due to share price development for Nanologica.

Finally, investments in the quarter was 69 million, mainly in Nanologica, around 50 million, but also in Symcel and ChromaFoam. That sums up the financial section.

I can hand over back to you, Ted.

Thank you, Cecilia. I will just keep the concluding remarks brief, but I want to show you this slide that is really an update on our diverse portfolio.

As you can see, Phase 2 is rather a busy section of this slide, 35% of total fair value in Phase 2. That's because Atrogi and Bowsers and others have joined the ranks of Anacardio, Kahr, and so on.

You can see that actually is a real movement in our portfolio. If you follow these slides from the previous year, you'll see that we are continuously trying to move towards the right.

What happens often in the Product Development segment is that the Phase 2 companies generating efficacy become interesting targets for partnerships, either out-licensing agreements or outright M&A with pharma. As you can see, also we have two companies still in Phase 3 who are moving ahead, and happy to answer any questions around our view of them based on the publicly available information, of course.

Actually even in preclinical, I would say that both Vansai and Viartara are not too far away from moving into Phase 1. As you can see here, our view is to continuously try to build the companies forward.

We have had reached a lot of milestones as the news flow shows, and then as we do an exit in the future in one company, we may reinvest into two or three companies at an earlier stage, and then the cycle repeats. These cycles are very long, and I want to point that out again that this quarter was really a quarter that reflects that we need to have the cash to be able to support companies to the right milestones, and we've done that very successfully, I hope, that you agree with me on that.

Therefore, when we do have our next exit and we have up-rounds in our companies because they have reached these excellent milestones, then the cycle will be complete and we will be able to continue to grow as a company. I am very much aware that there are some shareholders who are very disappointed with the share price development after the quarter, especially after the redemption scheme press release that we did, and I'm happy to answer questions about that during the Q&A.

Hi, thank you very much. Can you hear me now?

Yes.

Excellent. Two questions from my end.

Firstly, if you could talk a little bit about the environment to both raise capital and to realize value in the portfolio companies. I recognize it's still tough, but is there any change that you're seeing, say, sequentially since last quarter?

I can take that. Yes.

If you're talking specifically about fundraising in our portfolio, not our own fundraise, I would say that we have shown that syndication is possible with our continuously high investment ratio of 2.3 times for every crown that we put in. It is clearly possible to raise the money, but it is very difficult still.

I would say a lot of VC funds are struggling to raise new funds, and they are just really trickling out the amount of money to kind of last as long as possible. We also see that because of the inflationary pressures due to the war in the Middle East, basically coming back again, that there still is a reticence for people to get into biotech.

I'm basically having to work a lot with generalist investors and the VC funds the same thing to convince LPs to put money into their funds and into the biotech sector at all. We are succeeding in doing so, I think Flerie is managing well, our portfolio is managing well to attract the money, but in general the biotech sector is still struggling quite a bit.

I would hesitate to say that I'm seeing a light at the end of the tunnel. Earlier when we were at J.P.

Morgan earlier this year, we did see the light at the end of the tunnel, but then the war broke out in the Middle East, and the oil crisis is causing inflationary pressure. Unfortunately, to be realistic, we haven't actually even seen the strong inflationary pressure coming yet, because remember a lot of the oil tankers out there that left the Strait of Hormuz are only just arriving at ports where they're going to be refined.

Actually in the coming weeks, if that war does not end, that inflationary pressure will only get worse. We in Flerie are well prepared to deal with that, and our track record shows that we can syndicate well.

Thank you very much. That's helpful.

You talk about this 2.3 times syndication effect or investment ratio, which is a very helpful number. Where do you feel this number needs to be to get the necessary funding for your companies over the, say, near to medium term?

We obviously always wanted to be above 1. That's clear.

I think people should remember that there are many VC funds, there are many other investment companies where that ratio would be under 1, right, where they actually are entirely having to put in money themselves to support their portfolio companies without others joining. As long as the number is above 1, it's good.

Historically during 2025, that number has been between 2 and 3 and even above 3, actually. We have been about 3 for a long time.

I'm very happy with that. It's difficult to say what it should be in order to do well.

I would say it like this: we have sufficient capital to take those Phase 2 companies that you saw in the slide to key inflection points, and actually after we get an exit, and we will get an exit at some point, then obviously we have cash to be able to deploy ourselves again, and that ratio could then be lower. We will always want the ratio to be as high as possible as long as there are up-rounds.

I would be very happy with a ratio of five or six times as long as it's up-rounds, right. People need to remember that Flerie is an innovation investor.

We invest early in companies, and we build those companies to key inflection points. We are quite happy to be diluted in our companies over time as long as the value keeps going up, right?

I think we are also known in the ecosystem for that, there are other co-investors that come into later stage companies in our portfolio and are quite okay with us not putting in our pro rata in a round, because they understand that we have done most of our work in the years before that. We are continuously working with syndicating partners to understand that, and I think they really do understand it.

The ratio should actually be increasing over time.

Thank you very much.

I just want to point out again that why is it important to have cash in these times? I think that with the Middle East war ends in the coming weeks and months, then we might see the end of the tunnel.

Until then, we are in a shaky ground in the markets. Why is it important to have money?

It's because there is actually a lot of money out there, as our syndication shows, but every time you make an investment, it's important people want to see that the current investor is putting something in. Having done these financing at a low discount or no discount at all in case of the share issue allows us to actually accelerate our portfolio even further by attracting other syndicate partners who actually believe, "Oh, Flerie is putting more money into this.

They believe in this company." Of course, if you speak to any of our CEOs in our portfolio companies, they will say that Flerie has a good reputation that allows them to go out to other investors.

We're present at a lot of different conferences meeting these investors, and them seeing that we have the cash to deploy into these companies is a good thing. I just want to add, because we haven't had a question about it, that it is a transiting time now with removing the redemption program, but after this is all done and we've paid out the redemption and everything, we are a much cleaner company.

We are completely focused on the direct investments into our portfolio. We no longer have the LP segment that we had last year.

We no longer have the redemption scheme. I think we finally are in a spot where we have long-term investors who are really interested in the share development of our company, and we as a team are fully focused on realizing that.

Please take it as a clear indication that we are working hard to make those up-rounds and exits happen in our portfolio, but we want to do them at the right time to maximize the benefit for our shareholders.