Tmt Investments Regulatory News (TMT)

15 September 2015

TMT INVESTMENTS PLC

("TMT" or the "Company")

Half year report for the six months to 30 June 2015

TMT Investments PLC, which invests in high-growth, internet-based companies across a variety of sectors, is pleased to announce its unaudited interim results for the half year ended 30 June 2015.

Key highlights

· 5 positive revaluations, including Wrike, Pipedrive and PandaDoc

· NAV per share of US1.51 (up 11% from US$1.36 as of 31 December 2014)

· Many portfolio companies continue to experience rapid growth

EXECUTIVE DIRECTOR'S STATEMENT

Portfolio Performance

We are delighted that our expectations of seeing a number of significant positive portfolio revaluations announced in our 2014 Annual Report started to materialize so early on in 2015. It is especially pleasing to see that a number of companies in which we invested at an earlier stage are now attracting the attention of large, blue chip investment groups at higher valuations to support their continued growth.

The following developments took place within the Company's portfolio in the first half of 2015:

Cash and part-cash exits:

· There were no cash or part-cash exists in the reporting period.

Positive non-cash revaluations:

· In February 2015, Drippler, a mobile tech discovery media service, completed a sizable equity financing round. The transaction represents an uplift of approximately US$97,000 (or 48%) in the fair value of TMT's investment in Drippler, compared to the amount announced as of 30 June 2014.

· In April 2015, Wrike, a SaaS-based work management platform, completed a US$15 million equity financing round. The transaction represents an approximately US$2.3 million (or 116%) uplift in the fair value of TMT's investment in Wrike, compared to the latest reported amount reported as of 31 December 2014.

· In April 2015, Pipedrive, a SaaS-based sales CRM software provider, completed a US$9 million equity financing round led by Bessemer Venture Partners. The transaction represents an approximately US$1.82 million (or 235%) uplift in the fair value of TMT's investment in Pipedrive, compared to the latest reported amount as of 31 December 2014.

· In May 2015, farm management software provider VitalFields completed a new equity financing round. The transaction represents an uplift of approximately US$36,000 (or 27%) in the fair value of TMT's investment in VitalFields, compared to the latest reported amount as of 31 December 2014.

· In June 2015, PandaDoc, a SaaS-based sales management tool, completed a US$5 million equity financing round. The transaction represents an uplift of approximately US$90,000 (or 22%) in the fair value of TMT's investment in PandaDoc, compared to the latest reported amount as of 31 December 2014.

Impairments and write-offs:

· There were no impairments or write-offs in the reporting period.

Negative non-cash revaluations:

· There were no negative non-cash revaluations in the reporting period.

New investments

In April 2015, the Company invested US$300,000 in fragrance subscription service ScentBird.

NAV per share

The Company's net asset value per share as of 30 June 2015 was US$1.51 (up 11.0% from US$1.36 as of 31 December 2014).

Operating Expenses

In the first half of 2015, the Company's Administrative Expenses of US$484,113 were notably lower than in the first half of 2014 (US$652,287). That was the result of a number of cost-cutting measures undertaken by the Company at the end of 2014.

Financial position

As of 30 June 2015, the Company had US$1.84 million in cash reserves. As of the date of this report, the Company has no debt and approximately US$2.13 million in cash reserves.

Events after the reporting period and outlook

In August 2015, the Company invested an additional US$100,000 in ScentBird.

In August 2015, TMT's portfolio company Kanvas Labs, Inc. ("Kanvas") was acquired by AOL, Inc. The transaction represents an approximately US$0.46 million (or 134%) uplift in the fair value of TMT's investment in Kanvas, compared to the latest reported amount as of 31 December 2014.

With many of our portfolio companies experiencing rapid growth, we expect a number of continuing positive revaluations of our investee companies in the future. We look forward to updating our shareholders on the Company's progress in due course.

Alexander Selegenev

Executive Director

For further information contact:

About TMT Investments

TMT Investments PLC invests in high-growth, internet-based companies across a variety of sectors and has a significant number of Silicon Valley investments in its portfolio. Founded in 2010, TMT has net assets of US$42m and has invested in just under 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

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 2015

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 2015 is unaudited and does not constitute statutory accounts. The comparative figures for the financial year ended 31 December 2014 are not the Company's statutory accounts for that financial year. Statutory accounts for the year ended 31 December 2014 were approved by the Board of Directors on 20 April 2014. 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 14 September 2015 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 2014.

The Company's financial risk management objectives and policies are consistent with that disclosed in the financial statements for the year ended 31 December 2014.

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 (losses) 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 31/12/2014

As at 30/06/2015

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 2015. These costs are included in administrative expenses. In addition to the above, there are employment expenses for share-based payments of US$27,349 (for the six months ended 30 June 2014: $94,848).

The average number of staff employed (excluding Directors) by the Company during the six months ended 30 June 2015 was 5 (for the year ended 31 December 2014: 5).

The Directors' fees for the six months ended 30 June 2015 and 2014 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 share options.

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 loss per share is based upon the net loss for the six months ended 30 June 2015 attributable to the ordinary shareholders of US$465,023 (for the six months ended 30 June 2014: net loss of US$1,301,114) 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 per share for both 2015 and 2014 is kept the same as the basic loss per share because the conversion of the share options decreases the basic loss per share and is therefore anti-dilutive.

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 2015:

(ii) Convertible loan notes as at 30 June 2015:

11 Trade and other receivables

12 Cash and cash equivalents

The cash and cash equivalents as at 30 June 2015 include cash on hand and in banks, deposits, net of outstanding bank overdrafts. The effective interest rate at 30 June 2015 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 Share capital

On 30 June 2015 the Company had an authorised share capital of unlimited shares of no par value and had issued share capital of:

15 Share-based payments

On 24 October 2012, Board of Directors approved a share option plan (the "Plan") for directors, officers, employees of or consultants to the Company and/or any company directly or indirectly controlled by the Company.

Under the Plan, options for a total of 7,500,000 ordinary shares in the Company, representing approximately 30% of the then issued share capital (or 23% of the enlarged share capital at the time, assuming full exercise of the options), could be made available at an exercise price determined by the Board or its remuneration committee, which would not be less than the closing middle market price for the Company's share on AIM on the date of grant as published by or on behalf of the London Stock Exchange plc.

Options were to vest on a daily basis over a period of 3 years whilst the option holder remains eligible, and vested options could be exercised on each anniversary of the grant, but if not exercised within 1 year from the allowable date of exercise, would lapse.

The following options, without performance conditions, have been granted under the Plan on 24 October 2012:

The fair value of services received in return for share options granted is based on the fair value of share options and warrants granted, measured using the Black-Scholes formula, using the following assumptions:

Expected volatility is estimated from the Company's share price performance on AIM.

On 20 June 2014, the Company's senior managers German Kaplun, Alexander Morgulchik and Artyom Inyutin each exercised options over 375,000 (in total 1,125,000) ordinary shares, at the exercise price of US$1.40 per share. The share price on the date of exercise was US$1.975 per share.

No other options that vested in Year 1 under the Plan were exercised, and those options have now lapsed.

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, who collectively own 22.12% of the issued share capital of TMT and are thus considered related parties. There are currently 5 TMT staff involved working substantially full time on TMT's business. TMT started paying rent from 1 October 2012. Rent was being paid to Orgtekhnika at the rate of US$700 per sq meter per year of space utilised. Together with other related expenses (support personnel, company car, security services, etc.), the total costs to TMT were US$14,384 per month (US$172,608 per year). Following the recent negative developments in the Russian economy and Moscow office rental market in particular, starting from 1 February 2015 these office costs have been reduced to US$7,000 per month. The board believes this represents a discount from the prevailing market rate for similar office space in Moscow.

18 Subsequent events

In August 2015, the Company invested an additional US$100,000 in ScentBird.

In August 2015, TMT's portfolio company Kanvas Labs, Inc. ("Kanvas") was acquired by AOL, Inc. The transaction represents an approximately US$0.46 million (or 134%) uplift in the fair value of TMT's investment in Kanvas, compared to the latest reported amount as of 31 December 2014.