Flerie AB (publ)

Good morning, everyone, and welcome to the Q1 2026 report presentation for FLIRi. I'm joined by my colleague Cecilia Styreboer-Franciele, and of course, I'm Ted Fjellman, the CEO, and we'll be going through a short presentation and then happy to take Q&A moderated by us. Such a short disclaimer, I'm sure you will all act accordingly. And 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 or every crown invested by Fleury, 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? And during the quarter, it was more than 2.3 times. And 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. So what was Q1 really about? It was about a successful financing that will allow us to realize value. And 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. And 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, and 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. CAR-Bio reported strong Phase I and II results in colorectal cancer. They also started and enrolled patients in the Phase IIb trial in Australia and the US. Atrogi is our obesity company, one of two actually. They dose the first patient in a human trial where they will evaluate physiological effects of their drug, which is specifically a muscle-sparing obesity drug. So 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. So it's a phase two study, and Atrogi is therefore moving into phase two. Microbiotica also announced strong phase 1B results. Actually, we were very positively surprised about these results in ulcerative colitis. For those of you who've previously followed ulcerative colitis, this is an area that's a very difficult and unmet medical need. So excited to have good data there. And Centella completed its phase 1A X-STEM study in venous leg ulcers. Of course, as you know, Centiella 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 Centiella and its technology. Other significant news and value changes, so if we look at the left side of this slide, you can see that the news flow has been plentiful. In fact, that's not an exhaustive list at all, but Litbem was selected for an €80 million Horizon Europe grant, which is directly useful to our cash flow in FLIRi, and Cecilia will speak a little bit about that later. Expray resubmitted its NDA for Dasanoc. with a new PDUFA date of 25th of August. I might remind everyone that there's also a PDUFA date for their second program in Ottonib in June. And Sintiila, as mentioned, completed their venous leg ulcer study. and 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. And Mendes Expanded is a male development collaboration in Australia with a research institute there that is a very good collaboration that should yield interesting data. And Nanologica acquired a contract manufacturing unit, or a Syntagon, as it was called, and they completed a rights issue as well. Both of these were 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 unfortunately, or 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, Genius, Nanologica, and Carr, where you can see in a large number what others have invested and in the brackets what Fleury has invested. This underpins the 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 translate to a portfolio investment ratio of 2.33x. So in other words, for every crown spent by Fleary, you're getting 2.33 crowns invested by others into our portfolio. So we really are getting a lot of leverage out of the Fleary 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 current slides. But 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. But 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 you know, we're an investment company. We need to have cash deployment to be able to see our companies succeed through to the true milestones that we know that they can get to. and get the data that enables them to do partnering or even an exit. And during the quarter one, this was achieved by a merger with Liebman and share sales. And 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 Fleury. And I would say that he actually both bought shares, he had some shares in Liebman, and he was part of the share issue. is really a good example of the types of people that we 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. And finally, the last bullet there, determination 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. And that's why it's good to have the cash to do so. A little bit of details about the financing then. So the merger was completed on March 20th. We press release there as well. LEAPMOM is therefore a fully absorbed entity into Fleary. It was delisted from the Nasdaq First North and now continues as a private subsidiary. In connection to the merger, LEAPMOM shares worth 132 million SEC were sold. And 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. So the issue that we did, the share issue, was done at zero discount. So it was done at list price. And on average, we sold Lepum 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%. So 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, and just for those of you who it's not etched in the mind, it was at the end when we finalized the merger. The lead boom share price was at 14.25 sec per share. That translates to 34.8 sec per share of Fleury shares, and the market at the time was at 35.05 sec 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 the illusion of approximately 2.7%. There were, as said, two internal investors, AP4 and Cayelo Invest. that's Lossback Sales Investment Fund, and also a new long-term investor, as mentioned, Christian von Koenigsegg has come in. But then together with that, we actually raised 132 million, as mentioned. So we now really have this cash position, a total of 208 million SEC 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 continuously show through our new slope. So 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 programme and the share issue. As you know, since 2024, Flöri has offered shareholders the opportunity to annually convert up to 5% of the shares for redemption of the latest reported NAFRA share, rather than the prevailing market price. And 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. So 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. And 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 and 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. And in addition, the higher number of shares in circulation is also expected to improve liquidity in the Fleary share. So it's a good thing, good opportunity. We can go to the next slide and look at the financials of the quarter. R&S 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 norm per share decreased 41.9%. So the increase in norm and the decrease in norm 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 Lisbon that was at 279 million. So both of them were conducted at market value. That's the closing price of the date for the issue and following the discount of the share price to NAV and the NAV per share consequently decreases. Our portfolio value end of Q1 was 2.9 billion, up from 2.6 end of Q4, and the changes consist of, firstly, a fair value change. As Ted mentioned, we saw a smaller kind of negative change in the share prices for the listed companies in the portfolios that backed 43 million in the quarter. We've also divested part of our shares in Lipum prior to the merger, and together with the value of the remaining shares that were picked out from the portfolio, it has reduced the portfolio value by 198 million. And finally, in the quarter, we have investments of 521 million. Seems rather high, but part of it, a big part of it, is that the portion that relates to LITBUM, the merger with LITBUM for the new acquisition cost and fair value is 348 million. So with that, we can look at the segments more in detail and go to the next slide. Thank you. So the product development segment had a total portfolio value end of Q1 of 2.3 billion, so 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 Mendes and Scintilla and also for Libum for the period up until the merger. So in the quarter we invested 452 million and a large portion again, 348 million of that was the acquisition value for new Libum after the merger. Other investments were 104 million and were follow-on investments into Genius, CAR and Procarium. Divestments, again, 198 million, both selling parts of shares in a leap prior to the merger, and then the value of the remaining shares of the merger, an additional 69 million that got picked out. In the commercial growth segments, 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 from NanoLogica. And finally, investments in the quarter was 69 million, mainly in Nanologica, around 50 million, but also in SimCell and Chromafora. So that sums up the financial section.

And I will just keep your 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 two is rather a busy section of this slide. So 35% of total fair value in phase two. And that's because Atrogi and Buzzard and others have joined the ranks of Anacardiocar and so on. And you can see that actually is a real movement in our portfolio. If you follow these slides from the previous year, you see that we are continuously trying to move towards the right. And what happens often in the product development segment is that the phase two companies generating efficacy become interesting targets for partnerships, either out licensing agreements or right out M&A with pharma. As you can see, also, we have two companies still in phase three who are moving ahead. I'm happy to answer any questions around our view of them based on the publicly available information, of course. And actually, even in preclinical, I would say that both Quansai and Vyatara are not too far away from moving into phase one. So as you can see here, our view is to continuously try to build the companies forward. We have reached a lot of milestones as the new 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. And 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. And 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.