Flat Capital AB: Flat Capital's interim report January-March 2025

Flat Capital AB (publ) ("Flat") publishes its interim report for January-March 2025 where net asset value per share decreased by -1.4% compared to the previous quarter to 10.76 SEK per share. The seemingly modest development is mainly a result of the weakened USD during the quarter of -39,242 KSEK, which was partly offset by positive value adjustments in the portfolio holdings Harvey and Anysphere (Cursor) of +22,464 KSEK, excl. currency effects. During the quarter, six new investments were made, with a total value of 21.8 MSEK; approx. 15.2 MSEK in the AI sound technology company ElevenLabs, as well as smaller investments in Brindlechute (2.6 MSEK), Talentium (1.9 MSEK), Lovable (1.0 MSEK), Nexos.ai (0.6 MSEK) and the Project Europe fund (0.5 MSEK). We sold our shares in Truecaller for a value of approx. 41.5 MSEK, which means a return of 3.8x, corresponding to an internal rate of return (IRR) of +51%, for the shareholders who have been involved since Flat's IPO.

Financial position

• Net asset value amounted to 648,539 KSEK, corresponding to 10.76 SEK per share, which represents a decrease of -1.4% including a negative FX effect of -39,242 KSEK, due to a weakened USD.
• Net cash amounted to 166,797 KSEK, corresponding to 25% of net asset value as of 2025-03-31.

The period January-March 2025

• The change in value of holdings amounted to -1,299 KSEK (-10,442), including the FX effect, of which approx. -39,242 KSEK was due to changes in the USD/SEK exchange rate, given our exposure to the dollar. The change in value of individual holdings is mainly driven by Harvey and Anysphere, whose accumulated value adjustment amounts to approx. +22,464 KSEK, excluding currency effects, subsequent updated valuations in connection with new capital rounds.
• Investments amounted to 21,836 KSEK (20,592), see "Investments and divestments during the quarter".
• Divestments amounted to 41,529 KSEK (0), which includes a positive change in value compared to the previous quarter of approx 14,675 KSEK, see "Investments and disposals during the quarter".
• Operating expenses amounted to 2,378 KSEK (1,215), corresponding to 1.46% (1.19%) of average NAV, on an annual basis.
• Operating profit amounted to -3,677 KSEK (-11,657). Operating profit includes unrealized changes in value of -42,227 KSEK (-10,422) and realized changes in value of 40,928 KSEK (0).
• Profit after tax amounted to -9,401 KSEK (-10,584).
• Earnings per share amounted to -0.16 SEK.

Significant events during the quarter

• No significant events occurred during the quarter.

Significant events after the end of the quarter

• On April 4, Flat held an Extraordinary General Meeting which decided to amend the Articles of Association by changing the limits of the share capital and the number of shares in Flat's Articles of Association. The meeting also resolved, in accordance with the Board of Directors' proposal, to authorize the Board of Directors, until the time of the next Annual General Meeting and on one or more occasions, to decide on the issue of new shares, warrants and/or convertibles with or without deviation from the shareholders' preferential rights. See press release per 2025-04-04.

Investments & divestments during the quarter
During the quarter, six new investments were made, which amounted to 21,836 KSEK and a divestment in Truecaller;

• We invested approx. 15.2 MSEK in the AI audio technology company ElevenLabs through the purchase of existing shares in connection with the company's latest capital round. ElevenLabs develops advanced AI-based voice and audio technologies, which are used to make voice and sound central to digital interactions. Prominent investors in ElevenLabs include Sequoia Capital, Andreessen Horowitz and ICONIQ Growth.
• We have also made five smaller investments in; Brindlechute (2.6 MSEK), Talentium (1.9 MSEK), Lovable (1.0 MSEK), Nexos.ai (0.6 MSEK) and the fund "Project Europe" (0.5 MSEK).
• During the quarter, we divested all 525,000 shares in Truecaller at a value of approx. 41.5 MSEK, which means a return of approx. 3.8x, corresponding to an internal rate of return (IRR) of +51%, for the shareholders who have been with us since Flat's IPO. The divestment entails a positive change in value of 14.7 MSEK compared to the previous quarter.

Other events

• OpenAI confirmed a new capital round as of 2025-03-31, raising $40 billion, at a valuation of $300 billion. However, Flat is awaiting further information on the updated share price and the new valuation has not yet been reflected in the valuation applied by Flat.
• Elon Musk announced on the platform X as of 2025-03-28, that xAI has acquired X (formerly Twitter). However, Flat is awaiting further information on the updated share price and the transaction has not yet been taken into account in the valuation applied by Flat.
• Zozo, listed in Japan, announced that it has made a takeover bid for Lyst. The deal is expected to close in Q2 and has not yet been taken into account in the valuation applied by Flat.
• In Q1 2025, Flat Capital broadened its investment strategy to include selected opportunities in the defense sector. This decision is in line with our commitment to support innovative technologies and companies that contribute to global security and technological development.

This text has been translated using DeepL.

Link to the report on the website:
https://www.flatcapital.com/en/investor-relations/

For further information, please contact:
Hanna Andreen, VD, [e-mail], [phone]
Antonio Melani, CFO, [e-mail],[phone]

Certified Adviser:
Flat Capital's Certified Adviser is Augment Partners AB, [e-mail], [phone]

About Flat Capital:
Flat Capital is an investment company that focuses on growth stage companies with prominent entrepreneurs in leading positions and primarily makes investments through its network of world-class investors and entrepreneurs. The company was founded in 2013 by entrepreneurs Nina and Sebastian Siemiatkowski (founders and CEOs of Milkywire and Klarna, respectively) and is led by CEO Hanna Andreen together with an experienced board of directors. Examples of portfolio companies include OpenAI, Klarna, Perplexity, SpaceX and Figma. The company aims to provide long-term capital and is essentially a passive minority shareholder, while Flat Capital's experience and network are available to the extent the entrepreneur wishes. The aim is to facilitate successful company building and enable exposure to otherwise hard-to-reach and promising companies. More information is available at www.flatcapital.com

Note: This is a non-official translation of the Swedish original text. In case of any discrepancies between the Swedish text and the English translation, the Swedish text shall prevail.

This information is information that Flat Capital AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, at 2025-04-25 00:00 CEST.