TMT Investments : Results for the year ended 31 December 2016

16 March 2017

TMT INVESTMENTS PLC

("TMT" or the "Company")

Results for the year ended 31 December 2016

TMT Investments PLC, the venture capital company which invests in high-growth, technology companies across a number of core specialist sectors, is pleased to announce its final results for the year ended 31 December 2016.

• US$6.15 million of profitable cash exits from Depositphotos (partial) and VitalFields (full)

• US$4.08 million positive revaluation of Pipedrive

• US$2.57 million impairment of WhalePath, Adinch and Gild

• US$2.25 million allocated to new and follow-on investments (Vinebox, Send A Job, Attendify, Sixa, Virool, APPrise, Try the World, and Scentbird)

• Special dividend of US$0.10 per share paid in November 2016

• NAV per share of US$1.89 (down 1% from US$1.91 as of 31 December 2015)

• 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

• Strong expectations of a number of positive revaluations in 2017

  Alexander Selegenev, Executive Director of TMT, commented: "2016 was another successful year for the Company, with several sizeable revaluations and exits across our portfolio. There is always an asymmetric approach when revaluing the portfolio's assets. The downward re-valuations generally precede the upgrades, which normally only come when there is a tangible 3rd party equity transaction. This has the effect of dulling the NAV performance in the first several years of the portfolio's life.

  However, we were especially pleased to have effected a major partial disposal in cash of our stake in stock photo marketplace Depositphotos for US$5.83m net. This allowed us to keep investing in promising new companies as well as reinvesting in our most successful portfolio companies to date as they continue to grow. A recent US$17m capital raise by Pipedrive, one of our star portfolio companies, has increased the fair value of our investment in Pipedrive by US$4.08 million. In total, positive revaluations have added 15.2 cents to the Company's NAV per share.

  As the portfolio matures, it is not surprising to register some impairments, of which we made three in 2016. These reduced the Company's NAV by 9.3 cents per share.

  The Company paid a maiden dividend of 10 cents per share in November 2016, and the net result was that our NAV per share as of 31 December 2016 decreased only slightly to US$1.89 (down 1% from US$1.91 as of 31 December 2015)."

  Alexander Selegenev added: "TMT has successfully exited from 9 investments (including two partial exits) since its admission to AIM in December 2010 to date. This demonstrates the management team's ability to identify highly promising companies with exceptional leadership at an early stage. Given the rapid growth experienced by a significant number of our portfolio companies, we strongly expect 2017 to produce several further positive revaluations across our portfolio."

  The Annual Report and Accounts for the year ended 31 December 2016 are available on the Company's website at www.tmtinvestments.com, where an electronic copy can be accessed.

  For further information contact:

  TMT Investments Plc Alexander Selegenev www.tmtinvestments.com	[phone] [e-mail]
  ZAI Corporate Finance Ltd. NOMAD Peter Trevelyan-Clark/Jamie Spotswood	[phone]
  Hybridan LLP Broker Claire Louise Noyce	[phone]
  Kinlan Communications David Hothersall	Tel. [phone] [e-mail]

  About TMT Investments

  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$53m 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

  Although quieter than 2015, 2016 has been another successful year for the Company, with a number of sizeable revaluations and exits across our portfolio. As a result, even after the payment of the Company's maiden dividend of 10 cents per share in November 2016, our NAV per share as of 31 December 2016 decreased only slightly to US$1.89 (down 1% from US$1.91 as of 31 December 2015). TMT has now invested in over 40 companies since its admission to AIM in December 2010 and has a diversified portfolio of over 30 investees focused primarily on big data, e-commerce, and business SaaS (software-as-a-service) tools.

  Portfolio Performance

  Following the exceptional performance in calendar year 2015, in which over 10 of the Company's portfolio companies experienced positive revaluations for a total of US$18.5 million, 2016 was relatively quieter as the portfolio continued to mature. Key highlights included the partial disposal of our successful investment in stock photo marketplace Depositphotos and the significant positive revaluation of our equity stake in Pipedrive. We continue to pursue a conservative approach to valuations of poorly performing assets and wrote down three of our investee companies in 2016 for a combined total of US$2.57 million. This was more than offset by the US$2.55 million fair value uplift on the partial disposal of our investment in Depositphotos and the US$4.08 million fair value uplift in our investment in Pipedrive.

  The following developments took place within the Company's portfolio in 2016:

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

  • As announced in March 2016, the Company sold a sizeable part of its holding in Depositphotos for a net cash consideration of US$5.83 million to a private European investor. The transaction represented an approximately

    5.5 times increase in the valuation of TMT's holding in Depositphotos since its original investments in 2011, 2012

    and 2015, and an approximately US$2.55 million (or 18%) uplift in fair value compared to the previously reported amount as of 31 December 2015.

• In November 2016, farm management software provider VitalFields was acquired by The Climate Corporation, a subsidiary of Monsanto. The acquisition by Monsanto became the ninth profitable exit by TMT from its investment portfolio since its admission to AIM in December 2010 and represented a US$145,329 (or 84%) uplift in fair value compared to the previously reported amount as of 31 December 2015.

• As announced in January 2017, Pipedrive, Inc. ("Pipedrive") completed a US$17 million Series B equity financing round, led by Atomico, with participation from Bessemer Venture Partners and Rembrandt Venture Partners. The transaction represented a revaluation uplift of approximately US$4.08 million (or 132%) in the fair value of TMT's investment in Pipedrive, compared to the previously reported amount as of 31 December 2015.

  Impairments and write-offs:

• As announced in our interim accounts, in the first half of 2016, Whale Path, Inc. suspended its operations after not securing further funding. Accordingly, the Company incurred an impairment charge equal to 100% of the previously reported fair value of the Company's investment, as well as unpaid accumulated interest payable to TMT of approximately US$220,000 in total.

• As announced in our interim accounts, online advertising platform Adinch, in which TMT invested in 2013, has suffered from the challenging economic conditions in Russia in the last three years, as well as certain recent operating issues. Accordingly, in the first half of 2016 the Board of TMT considered it prudent to incur an impairment charge equal to US$1.8 million, or 75% of the fair value of the Company's investment in Adinch previously reported as of 31 December 2015.

• In the second half of 2016, online recruitment platform Gild, in which TMT invested in 2011, was sold to a strategic buyer. Unfortunately, the size of the consideration was not sufficient for any of Gild's preferred or common stockholders to participate in the distribution of proceeds. Accordingly, the Company wrote off the entire value of its investment in Gild of US$549,345 previously reported as of 31 December 2015.

10 largest portfolio holdings:

Portfolio Company Name	Fair value (US$), as of 31 Dec 2016 and currently	as % of total portfolio value
Depositphotos	10,836,105	20.84%
Backblaze	9,624,277	18.51%
Pipedrive	7,175,590	13.80%
Wanelo	5,369,400	10.33%
Wrike	4,303,578	8.28%
Virool	2,013,851	3.87%
Unicell	1,455,088	2.80%
LeTote	1,068,878	2.06%
Anews	1,000,000	1.92%
ScentBird	900,726	1.73%
Total	43,747,493	84.15%

Key developments for the 10 largest portfolio holdings in 2016 (compared to 2015; source: TMT's portfolio companies)

Depositphotos (stock photo marketplace):

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

• US$5.83m partial cash exit by TMT

  Backblaze (online data backup and cloud storage provider):

• Continuing double-digit growth in revenues

• Stores 300 petabytes (about half as much as Dropbox)

• Listed on Deloitte's Fast 500 of fastest growing companies

  Pipedrive (sales CRM software):

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

• US$17m new equity raised from Atomico and others

  Wanelo (online social shopping platform):

• Revenues up 82%

• Over 550,000 stores and 30 million products on the platform

  Wrike (work management and collaboration software):

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

  Virool (native video advertising platform):

• Sizeable new convertible note round completed

• Significant growth in new clients and revenues

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

• Generally 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

  LeTote (Netflix-style fashion rental platform):

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

  Anews (news reading app):

• Total monthly active users up 85%

• Revenues up 38%

  ScentBird (perfume subscription service):

• Revenues up 544%

• Total paying subscribers up 300%

• New make-up palette subscription service Deck of Scarlet launched and rapidly growing

New investments

In 2016, the Company made the following investments:

• US$300,000 in wine-by-the-glass subscription club Vinebox, Inc. (www.getvinebox.com);

• US$150,000 in field service management software provider Send A Job Inc. (www.sendajob.com);

• An additional US$200,000 in KitApps Inc., the provider of Attendify, the mobile app platform for the events industry (www.attendify.com);

• US$300,000 in cloud-based PC emulator Sixa, Inc. (www.sixa.io);

• An additional US$200,000 in native video advertising platform Virool, Inc. (www.virool.com);

• US$300,000 in Theirapp, Inc., developer of APPrise-branded mobile apps for the public relations, investor relations, and corporate communications industries (www.apprise-mobile.com);

• US$299,995 in online marketplace for authentic specialty foods Try The World, Inc. (www.trytheworld.com); and

• An additional US$500,000 in perfume subscription service ScentBird (www.scentbird.com).

NAV per share

The Company's net asset value per share as of 31 December 2016 decreased to US$1.89 (31 December 2015: US$1.91).