PROFIT from INNOVATION – Karolinska Development Börsdagarna

November 8, 2011

Why invest in Karolinska Development?

Exclusive access to top class medical innovations

First-in-class drug candidates with multi billion dollar sales potential

Large portfolio of companies reduces binary risk

Strong balance sheet – we focus on value creation

Management with strong deal-making track record

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The Leading Medical University in the Nordic Region

One of the top ranked medical universities in the world and one of Europe’s largest

1,450 scientists, 2,150 MD/PhD students publishing > 3,850 high quality medical papers annually

Home of the Nobel Prize in Physiology or Medicine

Karolinska Institutet

Karolinska Development has an Exclusive Deal Flow Agreement with KIAB*

* Karolinska Institutet Innovations AB, the TTO of KI

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From Innovation to Products

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Since 2003 Karolinska Development has selected 57 life science innovations of more than 1,200 ideas

CARDIOVASCULAR

Athera Biotechnologies AB (Annexin A5) 57%

Athera Biotechnologies AB (PC-mAb) 57%

The Portfolio has a Significant Market Potential

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DERMATOLOGY

Pergamum AB (DPK-060) 62%

Pergamum AB (PXL01) 62%

Pergamum AB (LL-37) 62%

WOMEN’S HEALTH

Dilafor AB 55%

Umecrine Mood AB 38%

Pharmanest AB 50%

INFECTIOUS DISEASE

Dilaforette AB 55%*

Biosergen AS 51%

CNS

BioChromix Pharma AB 56%

Umecrine Cognition AB 43%

INFLAMMATION

NovaSAID AB 89%

ProNoxis AB 18%

Solid colored area = completed phase Shaded colored area = ongoing phase

PHARMACEUTICALS Ownership Concept

development Lead

discovery Lead

optimization Preclinical

development Phase I Phase II Phase III Launch

ONCOLOGY

Aprea AB 40%

Axelar AB 40%

Oncopeptides AB 42%

Akinion Pharmaceuticals AB 88%

Avaris AB 68%

*Dilaforette is fully owned by Dilafor

OPHTHALMOLOGY

Clanotech AB 86%

TECHNOLOGY Ownership Concept development Prototype Development Product Sales

Promimic AB 25%

Inhalation Sciences Sweden AB 69%

NeoDynamics AB (Fourier/AS) 25%

XSpray Microparticles AB 58%

NeoDynamics AB (Therapy/PRFA) 25%

Lipidor AB 40%

THERANOSTICS

Athera Biotechnologies AB (CVDefine®) 57%

BioChromix AB 6%

FINANCIAL/PASSIVE INVESTMENTS Ownership Concept

development Lead

discovery Lead

optimization Preclinical

development Phase I Phase II Phase III Launch

PHARMACEUTICALS

NephroGenex Inc. 1%

Pergamum AB (Laurantis Pharma Oy, dermatology) 6%*

BioArtic Neuroscience AB 3%

Pergamum AB (Laurantis Pharma Oy, oncology) 6%*

CytoGuide ApS 9%

TECHNOLOGY Ownership Concept development Prototype Development Product Sales

BioResonator AB 8%

HBV Theranostica AB 73%

The Portfolio has a Significant Market Potential

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*Indirect ownership through Pergamum AB

Experienced Management Team with Extensive Network

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Dr. Torbjörn Bjerke CEO

Orexo AB, Biolipox, ALK-Abello, AstraZeneca Genentech, NeuroSearch

DBV Technologies, Topotarget

Gunnar Casserstedt CFO

Pfizer, Pharmacia, ICI Pharma,

Ciba-Geigy, Astra

Ola Flink VP Portfolio Management AstraZeneca,

Apoteksbolaget, ACO Läkemedel

Dr. Carl-Harald Janson VP Portfolio

Management Astra Arcus

Carnegie, Danske Bank

Otto Skolling VP Portfolio

Management Novozymes, Pharmacia&

Upjohn

Investment Managers

Hans-Peter Ekre VP Portfolio Management

Astra, Kabi Pharmacia,

Benjamin Nordin IR Director

Kaupthing Bank, Karolinska Institutet,

JP Nordiska

Ulf Richenberg General Counsel Esselte, Vattenfall, Scribona, Stokab

Dr.Terje Kalland CSO

Novo Nordisk, Biovitrum, Pharmacia,

Dako, Innate Pharma, CBIO

Michael Sundström VP Discovery Research

Novo Nordisk, Pharmacia, Oxford University

Robin Wright Consultant

Head of Business Development

Orexo AB, BioScience Managers Ltd

Citibank, N.A.

Main Focus for Karolinska Development in 2011

Oncology

Aprea – APR-246 Phase I/II data in cancer

Axelar – AXL1717 Phase I/II data in cancer

Axelar – AXL1717 for NSCLC Initiate Phase II

Oncopeptides – J1 for ovarian cancer Complete Phase I/II

Akinion – AKN-028 for AML Initiate clinical studies

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Main Focus for Karolinska Development in 2011 (cont.)

Women’s health

Dilafor – Tafoxiparin for protracted labor Initiate Phase IIb with partner

Pharmanest – Pain relief at IUD insertion Initiate Phase I and II (2012)

Others

Dilaforette – Sevuparin for malaria Initiate Phase I/II

NovaSAID – Inflammatory pain Focus on partnering

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Dermatology

Pergamum – DPK-060 for external otitis Initiate Phase II

Pergamum – DPK-060 for atopic dermatitis Preparation for Phase IIb (long term treatment)

Pergamum – PXL01 for surgical adhesion Complete enrolment of Phase II

Pergamum – LL-37 for chronic wounds Initiate clinical studies (2012)

Anticipated Major Clinical Milestones in 2011-2013

2011 2012 2013

Phase I/II data PXL01 Phase II data Phase II data

in NSCLC

Phase I/II data

DPK-060 Phase II data

Phase I data

Tafoxiparin Phase IIb data

LL-37 Phase I data

Phase IIa data

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Phase I/II data

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Selected Portfolio Companies

Oncology is One of the Fastest Growing Segments

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0

10 000

20 000

30 000

40 000

50 000

60 000

70 000

80 000

90 000

100 000

2002 2003 2004 2005 2006 2007 2008 2009 2010E 2011E 2012E 2013E 2014E 2015E

USDm

World oncology sales

Total oncology therapy

Targeted therapies

Source: Datamonitor

AXL1717 - Block Buster Potential in Lung Cancer

Status

The only small-molecule IGF-1R inhibitor in man without insulin receptor inhibition

Unique preclinical efficacy

Well tolerated in man

Market Overview

Around 47 000 new cases of squamous NSCLC in the US

UBS estimates total US lung cancer sales in 2010 for Avastin at USD 1150m, Tarceva USD 400m, and Iressa USD 310m

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Company: Axelar AB

Active ingredient: Small molecule

Primary indication: NSCLC

Current Phase: Phase I/II

Source: Datamonitor

Ownership: 40%

AXL1717 - Potential in Multiple Cancers

0

5

10

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Avastin, Tarceva and Iressa Sales (USDbn)

AXL1717 - Phase I/II Data

0 10 20 30 40 50 60 70 80 90 100

107 sq NSCLC

109 sq NSCLC

112 sq NSCLC

113 sq NSCLC

116 sq NSCLC

118 ad NSCLC

121 sq NSCLC

123 ad NSCLC

126 ad NSCLC

129 ad NSCLC

137 ad NSCLC

138 ad NSCLC

141 sq NSCLC

145 sq NSCLC

149 sq NSCLC

Weeks

Imaging assessments of 15 patients with progressive and refractory NSCLC treated with single agent AXL1717 in 3rd or 4th line, with treatment duration of at least two weeks. Status per 24-Aug-2011.

Time to Progress (weeks)

Survival (weeks)

Alive

Alive

Alive

Alive

Alive

Ownership: 40%

Pat 145: Index lesion 3

18F-FDG PET-CT CECT

Baseline 1/21/2011

Follow-up 4/12/2011

First dose intake 1/21/2011

SUV max = 4.2 g/mL Volume = 4.0 cm3

RECIST evaluation Largest axial D = 2.4 cm

Total metabolic regress Not measurable

Ownership: 40%

AXL1717 - Phase I/II Data

15 patients with NSCLC were treated for 14 days or longer

Median survival for these 15 patients was 44 weeks and time to progression was 30 weeks

At cut-off, 5 patients were still alive and 2 of these patients had not reported progression. The results may therefore improve further over time

One Partial Response – 12-week assessment: Total functional tumor volume (PET): -81%, PR on both PET and CT

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Financials

Key Financials for the Group – Strong Cash Position

Amounts in SEKm 2011

Apr - June 2010

Apr - June 2011

Jan - June 2010

Jan - June

Revenue 2.3 5.9 5.2 8.5

Profit/loss after tax -93.2 -99.8 -130.8 -99.7

Earnings per share before and after dilution (SEK) -1.92 -3.00 -3.09 -2.94

Investments in portfolio companies (Parent Company, see Note 10) 190.6* 41.6 226.2* 87.9

Of which conversions and transfers not affecting cash flow 88.6 0.0 94.5 0.0

Cash flow 20.3 33.7 54.8 -176.4

Cash, cash equivalents and short-term investments on closing date 739.7 411.1

Net asset value per share (SEK) on closing date 49.59 59.09

Value of total portfolio on closing date 1,652.1 1,497.5

*Investments affecting cash flow amount to SEK 131.7m for the reporting period and SEK 102.0m for the second quarter. Investment activity not affecting cash flow

during the reporting period consists of SEK 84.1m in receivables which have been offset against shares and SEK 10.4m in investments which have been transferred

to the associated company KCIF Co – Investment Fund KB.

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Strong Shareholder Base

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As per September 30, 2011

Shareholder A Shares B Shares Cap % Vote %

Third Swedish National Pension Fund 0 4678500 9.6 7.5

Karolinska Institutet Holding AB 1503098 2453933 8.2 28.2

Coastal Investment Management 0 3470541 7.2 5.6

Östersjöstiftelsen 0 3345537 6.9 5.4

EFG Private Bank S.A. 0 1778145 3.7 2.9

Näsudden Investeringar AB 0 1629354 3.4 2.6

Wallenberg-sphere

Foundation Asset Management AB 0 1392035 2.9 2.2

SIX SIS AG. 0 1361633 2.8 2.2

Persson Stefan 0 1261278 2.6 2.0

Skagen fonder 0 1234600 2.5 2.0

Stift för Främjande & Utveckling 0 1150323 2.4 1.9

Swedbank Robur småbolagsfond Sverige 0 1014000 2.1 1.6

JP Morgan Chase NA 0 750000 1.6 1.2

SEB S.A.. NQI 0 724542 1.5 1.2

SBSB Innovation AB 0 677000 1.4 1.1

AS Hansapank 0 601973 1.2 1.0

Holberg Norden 0 523100 1.1 0.8

Swedbank Robur Ny teknik BTI 0 508074 1.1 0.8

UBS AG 0 410000 0.8 0.7

JP Morgan Chase N.A, JP Morgan Chase Bank SWE RES 0 409502 0.8 0.7

Sum, listed shareholders 1503098 29374070 63.6 71.5

Sum, other shareholders 0 17654249 36.4 28.5

Sum, all shareholders 1503098 47028319 100.0 100.0

Why invest in Karolinska Development?

Exclusive access to top class medical innovations

First-in-class drug candidates with multi billion dollar sales potential

Large portfolio of companies reduces binary risk

Strong balance sheet – we focus on value creation

Management with strong deal-making track record

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Questions