• Number of ventures in portfolio at end of period: 26 (26)
• Estimated portfolio market value at end of period: 147 MSEK (160 MSEK)
• Cash resources in bank at end of period: 3.6 MSEK (1.2 MSEK)

General Financial KPIs:

Key Figures (Group*, TSEK) Q2 2024 Q2 2023 2023-01-01
2023-12-31
Net sales 406 716 1,013
Profit after financial items -3,812 -9,928 -52,244
Balance sheet total 68,394 89,271 64,528
Solidity, % 95% 94.0% 86.2%
Earnings per share -0.50 -1.49 -7.55
Number of outstanding shares 7,591,354 6,675,209 6,924,185

Key Figures (Parent*, TSEK) Q2 2024 Q2 2023 2023-01-01
2023-12-31
Net sales 406 716 1,013
Profit after financial items -3,510 -7,833 -47,323
Balance sheet total 68,558 91,042 66,249
Solidity, % 97.6% 98.0% 92.1%
Earnings per share -0.46 -1.17 -6.83
Number of outstanding shares 7,591,354 6,675,209 6,924,185

Important events during the period:

04-09: Katalysen announced an investor roadshow with stops in Stockholm,
Geneva, and Vienna, starting May 2.
04-15: Katalysen portfolio venture Payer Financial Services AB filed for
bankruptcy.
04-16: Katalysen published a revised 2024Q4 report following the bankruptcy
declaration by Payer Financial Services AB.
04-19: Katalysen announced its role as Co-Founder in SKB.vc.
04-25: Katalysen held its 2024 AGM. Among other things, the AGM adopted the
accounts, re-elected members to the Board of Directors of the company, and
adopted a resolution to authorize the Board to decide on new share/warrant
issues.
04-26: Katalysen published its Annual Report and Auditor's Report for 2023.
05-21: Katalysen published its report for the first quarter of 2024.
06-26: Katalysen published a summer update, showing positive cash flow and
strengthened cash position.

Important events after the period:

08-13: Katalysen announced a partnership with the LegalWorks Group to unlock
top-tier law functions for all businesses.
08-16: Katalysen published the article "Implementing lessons learn: broadening
our scope", clarifying the value provided by Katalysen and announcing a
broadened vision and scope going forward. The full text is available on
Katalysen's website.

Recent additions to the portfolio:

Name Sector Time of Estimated portfolio Estimated return on
initial value created for investment for
Investment Katalysen Katalysen
QuTEM Medtech 2023Q4 SEK 20.6 M 9.5X
AB
S4DX Medtech 2024Q1 SEK 9.2 M 8.9X
GmbH
VT2 Real work in
Estate progress
VT4 Fintech work in
progress

Report from CEO Peter Almberg

During Q2 we have been continuing to adapt our focus to the new market realities with the aim to best support our portfolio companies, but most importantly create value for our shareholders. 

In recent years, the term `financial stress' has become familiar to many market participants. Yet, amidst the challenges, the financial landscape also presents significant opportunities. Katalysen is uniquely positioned to seize these opportunities through Venture Targeter, our new framework for structuring investments into high-potential ventures.

• Financial structuring: The venture or its major shareholders and lenders face financial stress, which often leads to conflict and a breakdown in cooperation. We find solutions to alleviate this stress, resolve conflicts and restore cooperation.
• Collaboration: Effective collaboration is often lacking, hindering the venture's potential. We almost always help facilitate increased collaboration between existing and new stakeholders. Having shared interests is essential.
• Filling expertise gaps: Ventures often lack critical expertise, whether it's a specific skill like UX design or more abstract qualities like entrepreneurship. We always provide a significant dose of entrepreneurship and often bring in specific expertise from our network of experts and co-developers.
• Removing barriers: The company has demonstrated high potential and "removing barriers to growth" is often more profitable than "creating conditions for growth".

Over the past few months, we have been working on a case where we are helping the founders of a highly successful, profitable and rapidly growing company. This company has a major shareholder who is facing financial stress, giving us and the founders the opportunity to buy that shareholder's stake out of a liquidation process at an attractive valuation. We aim to finalize this significant transaction in the third quarter.

Looking further ahead, we are excited and exploring new sectors and segments where similar dynamics and opportunities exist. While much of our expertise has been developed in the gritty, hands-on early-stage startup segment, we recognize that high-potential companies facing financial stress, collaboration challenges or a lack of entrepreneurial spark can be found in all segments. As such, we are beginning work on another candidate, this time in the very interesting real estate sector. This project takes over the working name "VT2", replacing a previous project in fintech that did not come to fruition. In this sector (real estate), it is very common in times like these for banks or other lenders to have clients with real estate holdings that are over-leveraged. Both the bank and its client may be under financial stress and need to find new investors and/or owners, creating an opportunity for Katalysen's Venture Targeter business. 

As we reflect on the past five years, it is clear that our venture development model has evolved. We've had the privilege of supporting numerous startups and guiding them through the often challenging early stages of growth - stages that have been particularly turbulent in recent years. The new realities of the market have not only sharpened our approach, but also expanded our vision, and in a highly unpredictable financial landscape, we pride ourselves on our ability to adapt quickly, manage risk, and turn obstacles into opportunities.

• We had a positive operating cash flow in Q2. In the future, positive cash flow will be achieved through ordinary exits and the early exercise of warrants on Katalysen shares issued in 2023.
• We had a 13 MSEK lower portfolio value at the end of the second quarter due to divestments of MSEK 4.1, a restructuring in VenturePort, and updates to industry multiples used in the valuation of our portfolio companies.
• The positive impact of our streamlined organizational efforts, initiated in 2023, continues to show positive effects this quarter. Compared to the same period last year, our operating expenses decreased 22% and personnel costs decreased 46%.
• In terms of our deal pipeline, we are currently evaluating several new Venture Targeter opportunities, of which the two most important are mentioned above.
• We are also pleased to announce that Katalysen increased its stake in InvitePeople during the third quarter on favorable terms. 
• Several of our portfolio companies are in discussions with potential industrial partners, buyers and some are in discussions with larger investors (such as VCs). These are long processes, but we are confident that some of them will lead to the desired outcome. We are actively engaged in most of these dialogues.

In conclusion, we're excited to be taking our business in this direction and even more excited about the opportunities that lie ahead. We are confident that we will be able to create shareholder value with our Venture Targeter businesses and we remain committed to driving innovation and growth in the venture ecosystem. Thank you for your continued support!

This disclosure contains information that Katalysen Ventures AB is obliged to make public pursuant to the EU Market Abuse Regulation (EU nr 596/2014). The information was submitted for publication, through the agency of the contact person, on 20-08-2024 08:22 CET.