INVL Technology

Earnings Release • Mar 8, 2019

INVL TECHNOLOGY 12 months of 2018

8 March 2019

INVL TECHNOLOGY

PRELIMINARY KEY FIGURES

KEY FIGURES OF INVL TECHNOLOGY, THOUS. EUR

	12 months of 2017	12 months of 2018
Change in the fair value of financial assets	4,112	3,512
Profit (loss) before taxes	4,084	4,304
Net profit (loss)	4,084	4,304
	31.12.2017	31.12.2018
Financial assets value	20,808	24,320
Cash and Cash equivalents	5,030	2,230
Bonds	-	1,235
Other assets	39	456
TOTAL ASSETS	25,877	28,241
Other liabilities	2,065	125
of which financial debt	1,953	-
Equity	23,812	28,116
TOTAL EQUITY AND LIABILITIES	25,877	28,241

COMPANY	31.12.2017	31.12.2018
NRD Companies (includes Etronika UAB, NRD Systems UAB, Norway Registers Development AS and others)	3,624	5,458
Novian UAB (includes Novian as well as BAIP UAB and Acena UAB)	7,497	7,588
Algoritmų sistemos UAB	3,821	4,078
Andmevara (includes Anmevara AS and AndmevaraServices OU)	525	510
NRD CS UAB	5,067	6,455
FINtime UAB	274	231
Total	20,808	24,320

Value of portfolio companies increased by EUR 3.5 mln. or 16.9% after revaluation.

In 2018 the following fully controlled subsidiaries of INVL Technology paid dividends: Algoritmų sistemos (EUR 180 thousand) and Novian (EUR 700 thousand). In 2018 the following companies allocated dividends: NRD CS (EUR 400 thousand) and FINtime (EUR 39 thousand).

STRUCTURE OF THE PORTFOLIO COMPANIES OF INVL TECHNOLOGY

BUSINESS DEVELOPMENT STRATEGY

• CONSOLIDATION. NRD Companies, Novian.
• INOVATIONS. Productization, strengthening intellectual capital:
• NRD Companies. Productization of services, shifting to stacks, products for financial and regulatory areas.
• Productization of NRD Cyber Security services.
• AKTUALIZATION:
• NRD Companies connecting European IT markets and frontier markets. No.1.
• NRD Cyber Security globalization. No.1 in SOC.
• Novian Baltic integrator. No.1.

CHANGES IN THE STRUCTURE OF THE PORTFOLIO COMPANIES

3 groups of companies are being formed: NRD Companies, Novian and a cyber security company.

• In 2018, AS Andmevara has been reorganized by separating activities and demerged into two companies: Andmevara AS and Andmevara Services OÜ.
• NRD group is currently undergoing reorganization.
• On 22 August 2018, Norway Registers Development AS registered a branch in Lithuania. On 26 November 2018, Mindaugas Glodas was appointed director of the company.
• On 8 October 2018, NRD UAB has changed its legal name to NRD Systems UAB.
• In 2019-2020, Novian will consolidate companies belonging to the IT services and software group.

CHANGES IN MANAGEMENT OF THE COMPANIES

• Since January 2018 the CEO of Andmevara AS is Mr Giedrius Cvilikas.
• After reorganisation, General Manager of BAIP Gytis Umantas has been appointed as the CEO of Andmevara Services OÜ.
• In January 2019, Mr Mindaugas Glodas became the new managing director at Norway Registers Development AS and NRD Companies. He took over from Mr Rimantas Žylius who served in this position since 2014. Mr Rimantas Žylius will become a member of the Board at Norway Registers Development AS.

MANAGED COMPANIES

PRELIMINARY KEY FIGURES

THE RESULTS OF INVL TECHNOLOGY PORTFOLIO COMPANIES FOR 12 MONTHS OF 2018

	NRD COMPANIES		ETRONIKA1		NRD SYSTEMS1		ANDMEVARA2
	2017	2018	2017	2018	2017	2018	2017	2018
Revenue	7,232	7,122	1,667	1,880	2,020	2,373	1,092	1,523
EBITDA	557	609	294	214	134	72	(271)	31
Net Profit (Loss)	397	373	248	140	71	1	(292)	(47)

	BAIP and ACENA		NRD CS		ALGORITMŲ SISTEMOS
	2017	2018	2017	2018	2017	2018
Revenue	11,732	15,271	3,493	3,876	2,757	3,207
EBITDA	780	836	603	559	320	420
Net Profit (Loss)	203	232	468	439	299	324

¹ The results of Etronika UAB and NRD UAB are included into results of NRD Companies.

²Includes results of Andmevara AS, Andmevara SRL and Andmevara Services OU.

INVL TECHNOLOGY COMPANIES NEWS

TAX SYSTEMS MODERNIZATION:

• NRD Systems continued i.SAF-T subsystem implementation project with the State Tax Inspectorate of Lithuania.
• NRD Systems in joint venture NFQ Technologies signed a contract with Lithuanian State Tax Inspectorate and started developing the Electronic Declaration System.
• Algoritmų sistemos provided services for the development and modification of the Taxpayers' Electronic Education, Counselling and Information Services System, started the development of the Personal Income Tax Information System and provided maintenance services.

FINTECH:

• Etronika, part of NRD Companies, contributed to the development of Lithuanian mobile payment platform MoQ. The company developed a mobile application – POS station for businesses as well as an acquiring platform for mobile payments that serves as a payment gateway between the business and the customer.
• Etronika has been selected as Online Banking technology partner and provider for the Latvian Baltic International Bank, and has already finished the first phase of the project. This is the first BANKTRON implementation in Latvia. BANKTRON is an award winning Omnichannel Digital Banking Platform developed by Etronika.

INVL TECHNOLOGY COMPANIES NEWS

• On 26th June, Norway Registers Development AS, NRD CS and Algoritmų sistemos signed an agreement with Bangladesh Computer Council to start a 12-month cyber security capacity building project. The companies are assisting Bangladesh in reviewing its national cyber security strategy, developing strategy for critical information infrastructure protection as well as creating cyber risk assessment framework for Critical Information Infrastructures (CIIs).
• Since August 2018, Norway Registers Development AS, BAIP and Duomenu logistikos centras are modernising Bangladesh National Data Center (NDC).
• Norway Registers Development AS signed an agreement for the provision of consulting services for Uzbekistan Republic Real estate registry and cadastre.
• In Kyrgyzstan, BAIP together with Etronika began modernizing the provision of financial services for Kyrgyzstan post.
• In May 2018, Andmevara completed Moldovan National Archive digitisation project.
• In December, Andmevara AS signed a two-year contract to digitize the Estonian National Archives.

INVL TECHNOLOGY COMPANIES NEWS

• NRD CS became one of the seven partners of the Global Cyber Security Capacity Center at the University of Oxford for deploying Cybersecurity Capacity Maturity Model for Nations (CMM).
• NRD CS and Oxford scholars have already cooperated on cyber security maturity evaluations in Lithuania, Bangladesh, Georgia and Ukraine.
• In March 2018, NRD Cyber Security became an ITU-D Associate of Study Group 2 on "ICT applications, cybersecurity, emergency telecommunications and climate-change adaptation".
• In February 2019, NRD Cyber Security has been nominated as International Telecommunication Union (ITU) Centre of Excellence (CoE) in European region 2019-22 cycle. The Company will be providing training courses for global ICT community members on areas such as national cyber security governance, cyber security incident management and Open Source Intelligence (OSINT).

INVL TECHNOLOGY PLANS

PRIORITIES FOR 2019

• We will continue to form 3 groups of companies: NRD Companies, Novian and a cyber security company;
• NRD Companies will give priority to modernization of national systems and development of financial technology products;
• Novian group to consolidation and growth in value.
• NRD Cyber Security to further development and sale of its cyber security products.

INVESTMENTS

• Planned acquisitions in the second half of 2018 have slowed down due to sellers' expectations and uncertain situation in the financial markets;
• INVL Technology expects to implement new acquisitions in 2019;
• We are interested in specialized IT companies working in robotics, analytics and other fields;
• INVL Technology will seek to implement new investments through its currently managed companies.

IMPORTANT INFORMATION FOR CLOSED-END INVESTMENT COMPANY (UTIB) INVL TECHNOLOGY

• Investments in the shares of closed-end investment companies (hereinafter "UTIB") are associated with investment risk. The value of a company's shares can both rise and fall, and you may recover less than you invested or even lose the entire invested amount. Past results only show the changes in the value of a company's shares over a past period. Past results do not guarantee future performance.
• The information provided does not encompass all the information disclosed by the company and should be read together with the company's publicly announced financial information. The financial data provided should be evaluated together with the financial statements. The data presented reflect the situation for a past period of time and results for a past period are not a reliable indicator of future performance.
• The UTIB does not guarantee the profitability of investments. The latest values of the shares of the UTIB are available on the website www.invltechnology.lt.
• Before making a decision to invest, you should personally or with the help of investment advisors assess the selected UTIB's investment strategy, applicable fees and all investment-related risks. You should also carefully read the UTIB's Prospectus, Rules and Key Investor Information Document. These documents are available for review on the website www.invltechnology.lt.
• All the information presented is of a promotional-informative nature and cannot be construed as a recommendation, offer or invitation to invest in the shares of the UTIB. The company is not responsible for any decisions taken by third parties on the basis of information provided in this presentation alone and assumes no responsibility for expenses or direct or indirect losses experienced when using only this information. The information provided cannot be the basis for any subsequently concluded agreement. Although the content of this information of a promotional nature is based on sources considered to be reliable, the company is not responsible for inaccuracies or changes in the information, or for losses that may arise when investments are based on this information.
• The right of investors in the UTIB to demand redemption of shares which they hold is restricted.
• The presented figures for 12 months of 2018 are preliminary.

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