Tmt Investments Regulatory News (TMT)

15 August 2017

TMT INVESTMENTS PLC

("TMT" or the "Company")

Half year report for the six months to 30 June 2017

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 2016.

· Bonus-adjusted NAV per share of US$2.09 (up 10.6% from US$1.89 as of 31 December 2016)

· 3 significant positive revaluations for US$7.43m in total (PandaDoc, Wrike and Taxify)

· 4 small impairments for US$1.08m in total (Adinch, Favim, Ninua and Drippler)

· Many portfolio companies continue to experience rapid growth

Alexander Selegenev, Executive Director, commented: "We are delighted with our portfolio company performance in the first half of 2017. In line with expectations announced in our 2016 Annual Report, we have had three sizeable positive revaluations to date in 2017. These have more than offset the minor write-downs that we have diligently exercised in order to maintain our portfolio valuation updated."

"We continue to see exciting exit opportunities in our chosen sectors as shown by our recent partial exit from project management software company Wrike. This was achieved at a premium of 114% compared to the value of our stake at the end of December 2016. We are currently pursuing additional partial exit transactions for a number of our portfolio holdings."

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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 net assets of US$58m and has invested in over 40 companies to date. 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 in the first half of 2017 (i.e. between the publication date of our 2016 Annual Report and the publication date of this interim 2017 report):

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

· As announced on 25 May 2017, document management platform PandaDoc, Inc. ("PandaDoc") completed a US$15 million Series B equity financing round, led by Rembrandt Venture Partners, with participation from Microsoft Ventures, HubSpot, EBRD (via the EBRD Venture Capital Investment Programme), and Altos Ventures. The transaction represents a revaluation uplift of US$740,262 (or 150%) in the fair value of TMT's investment in PandaDoc, compared to the previous reported amount as of 31 December 2016.

· As announced on 27 July 2017, TMT sold part of its equity stake in a portfolio company which is now disclosed as the work management and collaboration platform Wrike, Inc. ("Wrike") for US$400,000. The transaction represents a revaluation uplift of approximately US$4.89 million (or 114%) in the fair value of TMT's investment in Wrike compared to the latest reported amount as of 31 December 2016.

· As announced on 1 August 2017, Taxify OÜ ("Taxify") completed a new equity financing round as part of a strategic partnership with Didi Chuxing, the world's leading mobile transportation platform. The transaction represents a revaluation uplift of approximately US$1.8 million (or 547%) in the fair value of TMT's investment in Taxify, compared to the previous reported amount as of 31 December 2016.

Impairments and write-offs:

· In the first half of 2017, Favim paid back to TMT US$50,000 of the US$305,050 originally invested by TMT in 2012 and decided to develop a new product. Despite Favim's existing product being break-even, the Board of TMT considered it prudent to incur an impairment charge equal to US$127,525, or 50% of the fair value of the Company's investment in Favim previously reported as of 31 December 2016 (adjusted for the US$50,000 received).

· Based on Ninua's performance over the last two years, the Board of TMT decided to incur an impairment charge equal to 50% of the previously reported fair value of the Company's investment, as well as the entire unpaid accumulated interest payable to TMT, of US$349,027 in total.

· Online advertising platform Adinch (previously impaired in the first half of 2016) continued to struggle. Accordingly, in the first half of 2017 the Board of TMT considered it prudent to incur an additional impairment charge equal to US$300,000, or 50% of the fair value of the Company's investment in Adinch previously reported as of 31 December 2016.

· Based on the potential acquisition offers received by Drippler to date, the Board of TMT decided to incur an impairment charge equal to US$302,400, or 100% of the fair value of the Company's investment in Drippler previously reported as of 31 December 2016.

10 largest portfolio holdings:

Key developments for the 10 largest portfolio holdings in the first half of 2017 (source: TMT's portfolio companies)

Depositphotos (stock photo marketplace):

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

· Launched free web-based image editor Crello

Backblaze (online data backup and cloud storage provider):

· Continuing double-digit growth in revenues

· On track to 10x YoY revenue growth from new "B2" cloud storage service

· Launched new Business Backup service

Pipedrive (sales CRM software):

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

· Exceeded 50,000 paying customers

Wanelo (online social shopping platform):

· Continuing revenue growth

Wrike (work management and collaboration software):

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

· Exceeded 14,000 paying customers and 1m users

Virool (native video advertising platform):

· Continuing growth in new clients and revenues

· Launched the Vertical Video Exchange to make it easier for advertisers to buy vertical video ad inventory

Taxify (ride hailing service):

· Active in more than 25 cities over the world

· Raised a sizable equity round from the world's leading mobile transportation platform Didi Chuxing

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

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

· Breakeven

· Traditional business is 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):

· US$15m new equity raised from Rembrandt Venture Partners and others

· Significant growth in new clients and revenues

LeTote (Netflix-style fashion rental platform):

· Continuing growth in revenue and number of customers

New investments

In the first half of 2017, the Company made an additional US$50,000 investment in online marketplace for authentic specialty foods Try The World, Inc. (www.trytheworld.com).

NAV per share

The Company's net asset value ("NAV") per share as of 30 June 2017 increased to US$2.11 (31 December 2016: US$1.89). Please note that the NAV figure excludes the bonus amount of US$610,107 accrued (but not yet approved) for the second year (period from 01 July 2016 to 30 June 2017) of the Company's Bonus Plan adopted in 2015. The accrued bonus amount is equivalent to approximately 2.2 cents per TMT share, with a pro forma bonus-adjusted NAV per share as of 30 June 2017 of approximately US$2.09.

Operating Expenses

In the first half of 2017, the Company's Administrative Expenses of US$518,093 were above the 2016 levels (US$476,814), primarily due to higher professional fees and the Company's resumption of office rent payments from 1 April 2017.

Financial position

As of 30 June 2017 the Company had no financial debt and US$597,804 in cash reserves. As of the date of this report, the Company has approximately US$760,000 in cash reserves.

Events after the reporting period

TMT received US$400,000 as per the Wrike transaction announced on 27 July 2017.

Outlook

We are delighted with our portfolio company performance in the first half of 2017. In line with our expectations announced in our 2016 Annual Report, we have had three sizeable positive revaluations in 2017, which more than offsets the minor write-downs we have diligently exercised in order to maintain our portfolio valuation updated.

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

Statement of Financial Position

Statement of Cash Flows

Statement of Changes in Equity

NOTES TO THE FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED 30 JUNE 2017

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 Investment 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 2017 is unaudited and does not constitute statutory accounts. The comparative figures for the financial year ended 31 December 2016 are not the Company's statutory accounts for that financial year. Statutory accounts for the year ended 31 December 2016 were approved by the Board of Directors on 15 March 2017. 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 after market hours on 14 August 2017 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 2016.

The Company's financial risk management objectives and policies are consistent with that disclosed in the financial statements for the year ended 31 December 2016.

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 (Loss) / Gain on investments

4 Segmental analysis

Geographic information

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

Non-current financial assets

As at 31/12/2016

As at 30/06/2017

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. There are no employment expenses for share-based payments.

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 2016: 5).

The Directors' fees for the six months ended 30 June 2017 and 2016 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 and bonuses.

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) / Profit per share

The calculation of basic profit per share is based upon the net loss for the six months ended 30 June 2017 attributable to the ordinary shareholders of US$2,084,971 (for the six months ended 30 June 2016: net profit of US$2,510,275) 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:

The diluted (loss) / profit per share for both 2017 and 2016 is kept the same as the basic (loss) / profit per share because the conversion of the share options decreases the basic (loss) / profit per share and is therefore anti-dilutive.

10 Non-current financial assets

* Simple Agreement for Future Equity

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 2017:

(ii) Convertible loan notes as at 30 June 2017:

(iii) SAFE's as at 30 June 2017:

11 Trade and other receivables

12 Cash and cash equivalents

The cash and cash equivalents as at 30 June 2017 include cash on hand and in banks, deposits, net of outstanding bank overdrafts. The effective interest rate at 30 June 2017 was 0.7%.

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 2017 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 19.28% of the issued share capital of TMT. Thus Orgtekhnika is considered a related party. Together with other related expenses (support personnel, company car, security and legal services, etc.), the total office rent costs to TMT from 1 April 2017 were US$7,883 per month.

18 Subsequent events

TMT received US$400,000 as per the Wrike transaction announced on 27 July 2017.