Tmt Investments Regulatory News (TMT)

16 August 2018

TMT INVESTMENTS PLC

("TMT" or the "Company")

Half year report for the six months to 30 June 2018

TMT Investments PLC, the venture capital company investing in high-growth, technology companies across a number of core specialist sectors, is pleased to announce its unaudited interim results for the half-year ended 30 June 2018.

· Bonus-adjusted NAV per share of US$2.75 (uplift of 13.2% from US$2.43 as of 31 December 2017)

· US$2.0 million profitable partial cash exit from Pipedrive

· US$16.6 million in positive revaluations from Taxify, Pipedrive, Vinebox and Remot3.it

· US$4.8 million in impairments from Scentbird, Adinch, Ninua, RollApp and TryTheWorld

· US$3.5 million (before expenses) raised from UK institutional investors

· Diversified portfolio of over 30 companies focused around big data, e-commerce, and business SaaS (software-as-a-service) tools

· Many portfolio companies continue to experience rapid growth

Alexander Selegenev, Executive Director of TMT, commented: "We are delighted with our portfolio company performance in the first half of 2018, especially from Taxify, which became the first "unicorn" in our portfolio in May this year when it was valued at $1bn, and for which we previously announced an upward revaluation less than a year ago. The Company is increasingly recognised as one of very few AIM-quoted vehicles providing UK investors with exposure to earlier stage, primarily US-based, tech companies, and we were pleased to welcome new UK institutional investors to the register in March 2018. The proceeds of the recent placing are being directed towards investing in additional exciting companies that meet our investment criteria of having outstanding management teams and globally scalable business models. We continue to see exciting investment and exit opportunities in our chosen sectors and we look forward to updating our shareholders on the Company's progress in the near future."

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About TMT Investments PLC

TMT Investments PLC invests in high-growth technology companies across a number of core specialist sectors and has a significant number of Silicon Valley investments in its portfolio. Founded in 2010, TMT has invested in over 40 companies to date and has latest announced net assets of US$82m. The Company's objective is to generate an attractive rate of return for shareholders, predominantly through capital appreciation. The company is traded on the AIM market of the London Stock Exchange. www.tmtinvestments.com

EXECUTIVE DIRECTOR'S STATEMENT

Portfolio Performance

The following developments took place within the Company's portfolio between the publication date of our 2017 Annual Report and the publication date of this interim 2018 report:

Cash and partial cash exits, and positive non-cash revaluations:

· As announced on 30 May 2018, Taxify, a leading international ride-hailing company (www.taxify.eu), completed a US$175 million funding round led by global automotive leader Daimler AG. European venture capital fund Korelya Capital and TransferWise's co-founder Taavet Hinrikus joined Didi Chuxing and a number of Taxify's other existing shareholders in the round that brought Taxify's valuation to US$1 billion. Daimler also joined Taxify's board. The transaction represented a revaluation uplift of US$13.30 million (or 350%) in the fair value of TMT's investment in Taxify, compared to the previous reported amount as of 31 December 2017.

· As announced on 30 May 2018, TMT sold a small holding in Pipedrive, a leading sales CRM (Customer Relationship Management) software provider (www.pipedrive.com), for a total consideration of US$2.0 million. The transaction represented a revaluation uplift of US$3.14 million (or 34.4%) in the fair value of TMT's investment in Pipedrive, compared to the previous reported amount as of 31 December 2017.

· In June 2018, wine subscription service Vinebox (www.getvinebox.com) completed a new equity capital round. The transaction represented a revaluation uplift of US$150,015 (or 50%) in the fair value of TMT's investment in Vinebox, compared to the previous reported amount as of 31 December 2017.

· In April 2018, IoT solutions provider Remot3.it (www.remot3.it) completed an additional equity capital raise triggering conversion of TMT's convertible note in Remot3.it. The transaction represented a revaluation uplift of US$41,510 (or 5.5%) in the fair value of TMT's investment in Remot3.it, compared to the previous reported amount as of 31 December 2017.

Impairments and write-offs:

· As announced on 30 May 2018, Scentbird, a subscription-based service for luxury fragrances and other beauty products (www.scentbitd.com), completed a further funding round to raise US$18.6 million from a group of investors led by Goodwater Capital, the consumer technology investment firm, and joined by Y Combinator, Rainfall Ventures, FundersClub, Soma Capital, Scrum Ventures, ERA, and others. The transaction represented a reduction of US$3.61 million in the fair value of TMT's investment in Scentbird, compared to the previous reported amount as of 31 December 2017.

The following of the Company's portfolio investments were also impaired in the first half of 2018:

* - incl. the outstanding loan and accumulated interest payable to TMT

10 largest portfolio holdings:

Key developments for the 10 largest portfolio holdings in the first half of 2018 (source: TMT's portfolio companies)

Taxify (ride hailing service):

· Active in 47 cities over the world (from "over 30" cities as of 31 December 2017)

· Continuing triple-digit growth in revenue and number of users

· Raised US$175 million from Daimler AG

Depositphotos (stock photo marketplace):

· Continuing double-digit growth in revenue and number of files in the photobank

Backblaze (online data backup and cloud storage provider):

· Continuing double-digit growth in revenues

· "B2" cloud storage revenue grows at nearly 300% year on year

Pipedrive (sales CRM software):

· Continuing double-digit growth in revenue and number of paid accounts

· Over 75,000 paying customers (from "over 70,000" as of 31 December 2017)

· Raised US$50 million from Insight Venture Partners and Bessemer Venture Partners

Wrike (work management and collaboration software):

· Continuing double-digit growth in revenue and number of paid accounts

· Over 17,000 paying customers and 1m users (from "over 15,000" as of 31 December 2017)

Wanelo (online social shopping platform):

· No significant changes

Scentbird (perfume and other beauty product subscription service):

· Continuing double-digit growth in revenue and number of customers

· Over 250,000 subscribers (from "over 200,000" as of 31 December 2017)

· Raised US$18.7 million in a new equity round

LeTote (Netflix-style fashion rental platform):

· Continuing growth in revenue and number of customers

· Recent cost restructuring to improve profitability

Unicell (provider of digital marketing solutions and mobile applications and services):

· Breakeven

· Traditional business keeps contracting

· 50%-owned Pango, a parking payment operator in Israel, is fast-growing and cash generative, helping Unicell gradually reduce its debt levels

PandaDoc (document automation software):

· Ongoing growth in new clients and revenues

New investments

On 21 February 2018, the Company announced its first blockchain-related investment through participation in the first phase of the pre-ICO (Initial Coin Offering) conducted by Telegram Group, Inc. ("Telegram") (https://ico-telegram.org/). TMT pre-paid US$300,000 for Telegram tokens as part of the transaction.

Also in the first half of 2018, the Company invested an additional US$300,000 in cloud-based PC emulator Sixa (www.sixa.io).

NAV per share

The Company's net asset value ("NAV") per share in the first six months of 2018 increased 15.6% to US$2.81 (31 December 2017: US$2.43). Please note that the NAV figure excludes the bonus amount of US$1,512,251 accrued (but not yet approved) for the third year (period from 01 July 2017 to 30 June 2018) of the Company's bonus plan adopted in 2015 (the "Bonus Plan"). The accrued bonus amount is equivalent to approximately 5.2 cents per TMT share, with a pro forma bonus-adjusted NAV per share as of 30 June 2018 of approximately US$2.75.

Operating Expenses

In the first half of 2018, the Company's Administrative Expenses of US$606,143 were above the 2017 levels (US$518,093), primarily due to additional fees related to the Company's placing in March 2018, resumption of office rent payments from 1 April 2017, and currency exchange fluctuations.

Financial position

On 29 March 2018, the Company announced that it had raised US$3.5 million (before expenses) by issuing and allotting 1,276,260 new ordinary shares of no par value each in the Company to certain institutional and other investors, and a further 164,609 new ordinary shares of no par value to certain existing shareholders, at a price of US$2.43 per share.

As of 30 June 2018, the Company had no financial debt and US$5,147,665 in cash reserves. As of the date of this report, the Company has approximately US$4,790,000 in net cash reserves.

Bonus Plan

The Company extended its Bonus Plan for the next three years (until 30 June 2021) on the same terms, with slightly amended initial allocations of the Bonus Pool among the current participants. Under the Bonus Plan, subject to achieving minimum hurdle rate and high watermark conditions in respect of the Company's NAV, the team receives annual cash bonus equal to 7.5% of the net increases in the Company's NAV, adjusted for any changes in the Company's equity capital resulting from issuance of new shares, dividends, share buy-backs or similar corporate transactions in each relevant year.

Events after the reporting period

In July 2018, the Company invested US$100,000 in natural language search interface for enterprise data FriendlyData (www.friendlydata.io)

Outlook

We are delighted with our portfolio company performance in the first half of 2018, especially from Taxify, which has now become the first "unicorn" in our portfolio, and for which we previously announced an upward revaluation less than a year ago. The Company is increasingly recognised as one of very few AIM-quoted vehicles providing UK investors with exposure to earlier stage, primarily US-based, tech companies, and we were pleased to welcome new UK institutional investors to the register in March 2018. The proceeds of the recent placing are being directed towards investing in additional exciting companies that meet our investment criteria of having outstanding management teams and globally scalable business models. We continue to see exciting investment and exit opportunities in our chosen sectors and we look forward to updating our shareholders on the Company's progress in the near future.

Statement of Comprehensive Income (unaudited)

Statement of Financial Position (unaudited)

Statement of Cash Flows (unaudited)

Statement of Changes in Equity (unaudited)

NOTES TO THE FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED 30 JUNE 2018

1. Company information

TMT Investments Plc ("TMT" or the "Company") is a company incorporated in Jersey with its registered office at Queensway House, Hilgrove Street, St Helier, JE1 1ES, Channel Islands.

The Company was incorporated and registered on 30 September 2010 in Jersey under the Companies (Jersey) Law 1991 with registration number 106628 under the name TMT Investments Limited. The Company obtained consent from the Jersey Financial Services Commission pursuant to the Control of Borrowing (Jersey) Order 1985 on 30 September 2010. On 1 December 2010 the Company re-registered as a public company and changed its name to TMT Investments PLC.

The memorandum and articles of association of the Company do not restrict its activities and therefore it has unlimited legal capacity. The Company's ability to implement its Investing Policy and achieve its desired returns will be limited by its ability to identify and acquire suitable investments. Suitable investment opportunities may not always be readily available.

The Company will seek to make investments in any region of the world.

The financial information relating to the six months ended 30 June 2018 is unaudited and does not constitute statutory accounts. The comparative figures for the financial year ended 31 December 2017 are not the Company's statutory accounts for that financial year. Statutory accounts for the year ended 31 December 2017 were approved by the Board of Directors on 14 March 2018. The report of the auditors on those accounts was unqualified, did not include a reference to any matters to which the auditors drew attention by way of emphasis without qualifying their report and did not contain any qualification.

These unaudited interim financial results were approved by the Board of Directors on 15 August 2018 and are available on the Company's website http://www.tmtinvestments.com/investor-relations/financial-reports/.

2. Summary of significant accounting policies

2.1 Basis of presentation

The accounting policies applied by the Company in these unaudited interim results are based on International Financial Reporting Standards as adopted by the European Union, including IAS 34 'Interim Financial Reporting', and in accordance with the accounting policies which are the same as those applied by the Company in its financial statements for the year ended 31 December 2017.

The Company's financial risk management objectives and policies are consistent with that disclosed in the financial statements for the year ended 31 December 2017.

For the purposes of IFRS 8 'Operating Segments' the Company currently has one segment, being 'Investing in the TMT sector'. No further operating segment financial information is therefore disclosed

2.2 Foreign currency translation

(a) Functional and presentation currency

Items included in the financial statements of the Company are measured in United States Dollars ('US dollars', 'USD' or 'US$'), which is the Company's functional and presentation currency.

(b) Transactions and balances

Foreign currency transactions are translated into US$ using the exchange rates prevailing at the dates of the transactions. Exchange differences arising from the translation at the year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the statement of comprehensive income.

3 Gain on investments

4 Segmental analysis

Geographic information

The Company has investments in five geographical areas - USA, Israel, BVI, Estonia, and Russia.

Non-current financial assets

As at 31/12/2017

As at 30/06/2018

5 Administrative expenses

Administrative expenses include the following amounts:

6 Staff expenses

Wages and salaries shown above include salaries and bonuses relating to the six months ended 30 June. These costs are included in administrative expenses.

The average number of staff employed (excluding Directors) by the Company during the six months ended 30 June was 5 (for the year ended 31 December 2017: 5).

The Directors' fees for the six months ended 30 June 2018 and 2017 were as follows:

The Directors' fees shown above are all classified as 'short term employment benefits' under International Accounting Standard 24. The Directors do not receive any pension contributions or other benefits.

Key management personnel of the Company are defined as those persons having authority and responsibility for the planning, directing and controlling the activities of the Company, directly or indirectly. Key management of the Company are therefore considered to be the Directors of the Company. There were no transactions with the key management, other than their Directors fees, bonuses and reimbursement of business expenses.

7 Net finance income

8 Income tax expense

The Company is incorporated in Jersey. No tax reconciliation note has been presented as the income tax rate for Jersey companies is 0%.

9 Loss per share

The calculation of basic profit per share is based upon the net loss for the six months ended 30 June 2018 attributable to the ordinary shareholders of US$1,297,737 (for the six months ended 30 June 2017: net loss of US$2,084,970) and the weighted average number of ordinary shares outstanding calculated as follows:

The weighted average number of ordinary shares outstanding before and after adjustment for the effects of all dilutive potential ordinary shares calculated as follows:

10 Non-current financial assets

Reconciliation of fair value measurements of non-current financial assets:

Available-for-sale investments are carried at fair values. Where financial assets do not have a quoted market price in an active market and their fair values cannot be reliably measured they are measured at cost less any identified impairment losses at the end of reporting period, in accordance with IAS 39 para 46 (c) exemption.

Where there has been a relevant transaction during the year that gives an indication of the fair value of the unlisted shares, the shares are included at that fair value and the increase or decrease in fair value is recognised in the fair value reserve. The "price of recent investment" methodology is used mainly for investments in venture capital companies and includes cost of investment or valuation by reference to a subsequent financing round. Valuation increases above cost are only recognised if that round involved a new external investor and the company is meeting milestones set by investor.

(i) Equity investments as at 30 June 2018:

(ii) Convertible loan notes as at 30 June 2018:

(iii) SAFEs as at 30 June 2018:

11 Trade and other receivables

12 Cash and cash equivalents

The cash and cash equivalents as at 30 June 2018 include cash on hand and in banks, deposits, net of outstanding bank overdrafts. The effective interest rate at 30 June 2018 was 1.25%.

Cash and cash equivalents comprise the following:

The following table represents an analysis of cash and equivalents by rating agency designation based on Fitch rating or their equivalent:

13 Trade and other payables

14 Other payables

15 Share capital

On 30 June 2018 the Company had an authorised share capital of unlimited shares of no par value and had issued share capital of:

16 Reserves

17 Related party transactions

Since May 2012, TMT's Moscow-based staff have been located in an office that belongs to a company ("Orgtekhnika") controlled by Mr. Alexander Morgulchik and Mr. German Kaplun, the Company's senior managers and applicable employees. German Kaplun also owns 18.33% of the issued share capital of TMT. Thus Orgtekhnika is considered a related party. Together with other related expenses (support personnel, company car, security services, legal advice, etc.), the total office rent costs to TMT from 1 April 2017 were US$7,883 per month.

18 Subsequent events

In July 2018, the Company invested US$100,000 in natural language search interface for enterprise data FriendlyData (www.friendlydata.io)