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REI - Reinet Investments S.C.A. Depositary Receipts - Consolidated audited
financial results for the year ended 31 March 2011
Reinet Investments S.C.A. Depositary Receipts
issued by Reinet Securities SA
(Incorporated in Switzerland)
ISIN: CH0045793657
Depositary Receipt Code: REI
PRESS RELEASE FOR IMMEDIATE RELEASE
27 MAY 2011
CONSOLIDATED AUDITED FINANCIAL RESULTS FOR THE YEAR ENDED 31 MARCH 2011
The Board of Reinet Investments Manager S.A. announces the results of Reinet
Investments S.C.A. for the year ended 31 March 2011.
Key financial data
- Net asset value at 31 March 2011: Euro 2 784 million, an increase of 10 per
cent from 31 March 2010
- Net asset value per ordinary share at 31 March 2011: Euro 14.21 (31 March
2010: Euro 12.95)
- British American Tobacco p.l.c.: valuation reflects good underlying
performance
- Profit for the year: Euro 249 million
- New investments with funding commitments of Euro 238 million closed during the
year
Consolidated Net Asset Value (`NAV`)
The NAV of Reinet Investments S.C.A. at 31
March 2011 comprised:
31 March 2011 31 March 2010
Euro m % Euro m %
Listed investments
2 387 85.7 2 159 85.1
- British American Tobacco
p.l.c.
- Other 7 0.2 5 0.2
Cash and liquid funds 236 8.5 343 13.5
Unlisted investments
- Trilantic Capital Partners 72 2.6 29 1.1
funds (1)
- US land development and 53 1.9 23 0.9
mortgages(1)
- Vanterra Flex Investments 13 0.5 - -
fund
- Vanterra C Change TEM fund 10 0.4 - -
- Jagersfontein 49 1.8 - -
- 36 South Investment fund 88 3.2 - -
- Other 42 1.5 35 1.4
327 11.9 87 3.4
- Funding by minority (21) (0.8) (1) -
partners
- Borrowings (46) (1.7) - -
Fees payable and other (102) (3.7) (54) (2.2)
liabilities, net of other
assets
2 788 100.1 2 539 100.0
Minority interest (4) (0.1) (2) -
2 784 100.0 2 537 100.0
(1) This amount represents the 100 per cent investment, whereas
the comments below use figures which represent Reinet`s 80 per
cent investment.
All of the underlying assets are held by Reinet Fund S.C.A., F.I.S.
CHAIRMAN`S COMMENTARY
Overview
In expectation of major financial disruptions we started planning a "defensive
option" for Richemont and Remgro shareholders. Reinet was thus formed in 2008
with the goal to maintain shareholders` wealth over the medium term.
The subsequent events are well known. Policy makers across the world have
injected enormous liquidity into the markets.
The bailout has led to an appearance of stability.
Knowing where we are today is complicated. Do we face deflation, inflation or
stag-flation, and importantly, in which order'
Highly qualified observers make very compelling arguments that are diametrically
opposed in their outcomes.
Until we are more certain we have decided that we serve our shareholders best by
not making "major bets" on the future.
The resilience and cash-flow generation of the tobacco industry and the sound
performance of BAT have led us to hold on to this investment until we find
alternate hedge strategies.
For a defensive strategy BAT has served us well. The decision to remain invested
in British American Tobacco has helped drive the increase in Reinet`s net asset
value since it was established and over the past year. The aggregate net asset
value has grown by 10 per cent over the past year from Euro 2 537 million at 31
March 2010 to Euro 2 784 million. Net asset value per share has increased from
Euro 12.95 to Euro 14.21 over the year.
The profit for the financial year ended 31 March 2011 was Euro 249 million. Of
this Euro 32 million was realised with Euro 217 million being the net unrealised
increase in the value of the overall portfolio. After only two full years of
activity and given that the profits to date are largely unrealised, we do not
propose any dividend payment by Reinet this year.
To date, Reinet Fund S.C.A., F.I.S. (`Reinet Fund` or `the Fund`) has committed
to invest some Euro 587 million in aggregate, including new commitments made
during the year under review of Euro 265 million. In total, some Euro 300
million has been invested up to 31 March 2011. These investments were funded out
of the cash which Reinet Fund held at the time of formation and from dividends
received; no BAT shares have been sold to fund these investments. In addition,
Reinet Fund has committed to invest in a new advisory and investment management
business, Renshaw Bay, which was announced in February 2011 and is referred to
in more detail below.
Reinet Fund is exploring a number of investment opportunities. One of these
opportunities is an investment in the pension insurance business of Pension
Corporation. Pension Corporation is one of the UK`s leading providers of risk
management solutions to defined benefit pension funds. It has transacted both
the UK`s largest corporate and the first public sector backed pension insurance
buyouts. Reinet Fund is in exclusive negotiations with Pension Corporation and
its key stakeholders for a transaction involving the re-organisation of its
capital structure and an investment by Reinet Fund of approximately GBP 400
million through which it would become a principal shareholder in the business.
Completion of any transaction is subject to the successful conclusion of these
negotiations and to regulatory and other approvals. Further information
regarding the status and details of this potential investment will be
communicated to our shareholders at the appropriate time.
Taking into account both the Renshaw Bay and Pension Corporation opportunities,
Reinet has to date committed to invest over Euro 1 billion on behalf of its
shareholders.
Reinet`s investment philosophy
Reinet Fund partners with experienced professionals in fields where we see value
creation opportunities. We share a common philosophy with our partners at
Trilantic, Vanterra and in the US property interests. The same applies to our
partners in Renshaw Bay.
It was with great pleasure that we were able, in February this year, to announce
the formation, together with Mr Bill Winters, the former Co-Chief Executive
Officer of the investment bank of JP Morgan Chase & Co, and RIT Capital Partners
plc, a UK-listed investment vehicle chaired by Lord Rothschild, of Renshaw Bay,
a global alternative asset management and advisory firm. Reinet Fund will hold
25 per cent of Renshaw Bay; Mr Winters will be the principal shareholder with 50
per cent, whilst RIT Capital Partners plc will also hold 25 per cent. Mr Winters
will become Chairman and Chief Executive Officer.
Renshaw Bay will initially act as an advisory entity, working with its clients
to structure investment opportunities tailored to their needs. In this respect,
we anticipate that Reinet will be an investor in certain of the ventures to be
created by the firm, as will Mr Winters personally and RIT. At all times, the
focus will be on developing concepts which meet the risk parameters and
requirements of sophisticated investors, including the founding partners. It is
likely that, in time, the business will develop or acquire its own investment
management capability. We see Renshaw Bay as a major vehicle for future
investment by Reinet.
As with all of the funds in which Reinet Fund has invested, any fees paid to
Renshaw Bay for fund management will result in a reduction in the fees payable
to Reinet Investment Advisors Limited. There will be no double-charging of
management costs to Reinet shareholders.
Developments during the year
Following the initial investment in Trilantic Capital Partners in 2009, the year
under review saw Reinet Fund invest Euro 33 million in opportunities identified
by Trilantic. The investment portfolio extends from an electricity transmission
equipment manufacturer and a concrete and stone aggregates business, both
located in the United States, to a commodities brokerage operation, based in
London, to a publisher of educational textbooks in Portugal, Portuguese-speaking
Africa and Brazil. The pace of investment has picked up as Trilantic has moved
on as an independent investment management vehicle, leaving behind its legacy as
part of the Lehman Brothers organisation.
Trilantic seeks out special situations investment opportunities, where
businesses show a potential for growth in their domestic and international
markets but where they may not be in a position to obtain funding through
traditional channels. Overall, Reinet Fund now participates in 11 investments
identified by the Trilantic team. As Reinet Fund is a partner in the management
company alongside the founding partners, no management fees or carried interest
is payable on these investments and Reinet not only benefits as a limited
partner but will also share in any upside attributable to the management
company, as and when investments are realised.
During the year, Reinet Fund further invested in our partnership with the
Vanterra funds - Vanterra Flex and a newly-launched fund, Vanterra C Change TEM,
which focuses on energy efficient solutions in terms of buildings and power
generation.
We have also invested further in acquiring mortgage debt and specific property
developments projects in the United States. To date, prices remain depressed, as
we had expected. However, we believe that the longer-term potential to realise
gains remains intact. The United States needs a higher level of new housing
starts to meet the demands of an expanding population, disregarding the short-
term difficulties facing the property market due to the continuing limitations
on the availability of credit.
Reinet Fund was fortunate during the year to be offered the opportunity to
partner with the managers of the `36 South` family of funds. The 36 South funds
invest in financial products with the aim of exploiting long-term, tail-risk
opportunities in option markets. The management team of 36 South have an
excellent track record and have developed tools to examine short-term volatility
and extrapolate that to longer-term scenarios. Their counter-intuitive thinking
has impressed us and we see opportunities to work with them not only as
participants in their tail-risk funds but also in having them develop risk-
management strategies linked to Reinet Fund`s investment portfolio.
During the year, Reinet Fund also committed to invest in a diamond mine tailings
recovery project in South Africa, working with both specialist operators and the
local community to mine and rehabilitate waste which was dumped at the height of
the diamond mining boom over a century ago. The project is located at
Jagersfontein, which is the oldest diamond-mining town in the country. The Fund
has provided initial funding to acquire the tailings themselves together with
the necessary plant and equipment. The new business, which will be operated by a
local specialist recovery company, is expected to recover significant quantities
of gemstones as well as industrial grade stones from the tailings.
Since the end of the financial year, Reinet Fund has also invested in an
interesting opportunity in China. Co-investing with a fund with whom we have
worked for a number of years and other partners, Reinet has acquired a small
interest in Lashou, China`s biggest online group buying venture. Lashou pools
the buying power of its members to offer substantial discounts at restaurants
and shops across China. Reinet Fund`s ability to invest at an early round of
financing offers an opportunity to participate in what may be significant upside
potential for this business.
Outlook
Although the global economic environment appears to have stabilised in recent
months we remain very concerned as to the longer-term impact of the quantitative
easing activities of the US Federal Reserve and other central banks. The
potential consequences of the bail out of weaker members of the euro zone such
as Greece, Ireland and now Portugal by stronger EU countries remain a concern.
Reinet Fund is not constrained by any specific industry, currency or geographic
focus and will, over time, seek to diversify its portfolio further for the
benefit of its investors. We will continue to invest in what we consider are
sound opportunities, drawing on the expertise of our current partners and
looking to build new relationships with like-minded investors and managers. The
investment in British American Tobacco has been a sound foundation on which to
build Reinet`s growth to date and we expect to continue to be a shareholder in
BAT.
Further information relating to Reinet and its investments will be communicated
to shareholders in due course.
Johann Rupert
Chairman
Reinet Investments Manager S.A.
Luxembourg, 27 May 2011
BUSINESS REVIEW
Listed investment in British American Tobacco p.l.c. (`BAT`)
Reinet remains one of the largest shareholders in BAT, holding some 84 million
shares representing 4.2 per cent of BAT`s capital. At 31 March 2011, the value
of the investment in BAT in the balance sheet of Reinet was Euro 2 387 million,
being 86 per cent of Reinet`s net asset value. The BAT share price on the London
Stock Exchange increased from GBP 22.72 to GBP 25.02 during the year.
Reinet received dividends from BAT during the year amounting to Euro 103 million
(GBP 88 million), being BAT`s final 2009 dividend and its 2010 interim dividend.
Cash and liquid funds
During the year, dividend income and other inflows were offset by new
investments and operating costs. At 31 March 2011, net cash and liquid funds
amounted to Euro 236 million (31 March 2010: Euro 343 million).
In addition to deposits held principally in European banks, Reinet has invested
Euro 183 million in a euro-denominated government bond fund. This holds
exclusively short-dated bonds issued by western European (principally French and
German) governments and short-term loans backed by government bonds.
Unlisted investments
Reinet seeks, through a range of investment structures, to build partnerships
with other investors, specialised fund managers and entrepreneurs to find and
develop opportunities for long-term value creation for its investors. In
evaluating these opportunities, Reinet applies a minimum hurdle rate of return,
recognising the expected performance target set by the investment in BAT.
To date funding commitments in the amount of Euro 525 million have been entered
into in respect of the businesses detailed below, excluding the smaller
investments transferred from Richemont when Reinet was established.
Trilantic Capital Partners
Original commitments: US$ 104 million and Euro 68 million
Early in 2009, Reinet announced its decision to invest in the private equity
management business formerly owned by Lehman Brothers. Reinet bought this
interest, in conjunction with the management team, from the bankruptcy estate
for US$ 10 million. This business is now known as Trilantic Capital Partners
(`Trilantic`).
Together with minority partners, Reinet holds an interest in the Trilantic
management company and is committed to invest in Trilantic`s Fund IV Global and
Fund IV Europe funds. Reinet has an 80 per cent interest in the company which
holds the Trilantic interest, with its two partners holding the balance and
sharing in the investment commitments.
The investment in the Trilantic management company provides that Reinet and its
partners will not pay any management fees or carried interest cost on
substantially all of its investment in funds under Trilantic management. In
addition, the agreement provides for Reinet and its partners to receive a share
of the carried interest payable to the Trilantic management company on the
realisation of investments held in the funds, once a hurdle rate has been
achieved. Reinet`s share of any carried interest earned by the Trilantic
management company is 9.375 per cent, after the minority partners` share.
Up to 31 March 2011, Reinet and its partners had invested the equivalent of Euro
7.6 million in the initial Trilantic management company investment, Euro 2.1
million to acquire a further interest in Trilantic Fund IV Europe and Euro 50
million, net of capital repayments, in the funds under Trilantic management. The
investment in Trilantic is carried at the estimated fair value of Euro 72
million at 31 March 2011, based on audited valuations provided by Trilantic. Of
the year-end valuation of Euro 72 million, some Euro 14 million is attributable
to Reinet`s partners, being shown as Euro 4 million in respect of minority
interest and Euro 10 million under other liabilities.
At 31 March 2011, Reinet had remaining commitments of Euro 100 million, being
US$ 70 million and Euro 51 million to invest in funds under Trilantic
management, after taking into account the amounts payable by Reinet`s minority
partners.
During the year under review, Reinet and its partners realised gains of Euro 2.1
million before tax on their share of investments sold by the Trilantic funds. Of
this gain, Euro 1.7 million was attributable to Reinet and Euro 0.4 million to
the minority partners.
United States land development and mortgages
Original commitment: US$ 100 million
Recognising the depressed state of the property market in the United States,
Reinet has co-invested with partners in acquiring real estate development
projects - usually properties where infrastructure services have been laid but
where construction of properties has not yet commenced - and mortgage debt on
such developments and undeveloped sites. The investments are principally in
Florida and the North and South Carolinas with one investment in Colorado.
The mortgage debts were acquired from local lenders at substantial discounts to
nominal value, reflecting the economic situation and the risk that the
development companies may not be able to meet their obligations. Reinet is
working closely with its partners and co-investors in the United States, who
have considerable experience in managing such projects, recognising that this is
an area where industry knowledge is critical to making the right investment
decisions. At 31 March 2011, Reinet had invested a total of US$ 63 million (Euro
46 million) in these projects. At that date, these were valued at Euro 53
million of which Euro 43 million is attributable to Reinet and Euro 10 million
to its partners.
Reinet is committed to invest a further US$ 37 million (Euro 26 million) to
acquire further mortgage debt and to fund development projects.
Vanterra Flex Investments L.P.
Original commitment: US$ 100 million
Reinet is an investor in Vanterra and in its general partner.
Vanterra was established in March 2010 to invest in listed and unlisted funds
and to make direct investments in the United States and emerging markets.
Vanterra has invested alongside Reinet in Trilantic and in the United States
land development and mortgages. It is also an investor in Vanterra C Change
Transformative Energy & Materials I, L.P. Vanterra will seek to construct a
globally diversified private equity portfolio providing investors with long-term
capital appreciation.
As at 31 March 2011, US$ 18 million (Euro 13 million) of committed funds plus an
additional US$ 1 million (Euro 1 million) in respect of expenses had been
invested in the fund. Reinet is committed to invest a further US$ 82 million
(Euro 58 million) in Vanterra.
Vanterra C Change Transformative Energy & Materials I, L.P. (`TEM`)
Original commitment: US$ 65 million
Reinet is an investor in TEM and in its general partner.
In July 2010, Reinet entered into an agreement to invest in TEM. TEM is a newly
created fund, established to invest in companies and projects providing products
or services that supply cleaner energy; create a more cost effective building
environment through the use of energy efficient technologies; and develop
renewable resources as a substitute for fossil and other traditional fuels.
As at 31 March 2011, capital contributions of US$ 15 million (Euro 10 million)
had been made to the fund. Reinet is committed to invest a further US$ 50
million (Euro 36 million) in TEM.
Jagersfontein
Project cost: ZAR 600 million
Reinet is a co-investor along with specialist operators and the local community
in a project which will seek to process and extract diamonds from the waste
tailings from mining operations carried out over a century ago. The tailings are
located at Jagersfontein in South Africa. Significant developments in terms of
gemstone extraction since the mines were first excavated mean that there is now
the potential to recover stones which were previously treated as waste.
As at 31 March 2011, Reinet had provided loans of some ZAR 451 million to
finance the acquisition of the tailings and plant to process the tailings. Once
the final investment holding structure has been determined, it is anticipated
that Reinet will have an equity interest of 44 per cent in the venture. This
rand exposure has been hedged by local currency borrowings. Extraction
operations are expected to begin in the second half of 2011.
36 South global macro/volatility funds
Original commitment: Euro 88 million
Reinet has co-invested with the 36 South management team in the fund management
and distribution companies. It is also an investor in the funds under
management. These funds are established through an Irish-registered investment
fund - 36 South Funds PLC.
36 South is an absolute return fund manager which specialises in managing global
macro/volatility funds. The fund management philosophy is to invest when market
estimates of volatility are mis-priced. The volatility may apply to a wide-range
of underlying asset classes ranging from currencies and interest rates to
equities.
In March 2011, Reinet invested its full commitment of Euro 88 million in 36
South. Of this, Euro 15 million represented the initial investment in and loans
to the jointly-held fund management activities; the balance of Euro 73 million
being Reinet`s investment in the funds under management. The investment in 36
South Funds PLC is carried at its fair value of Euro 73 million at 31 March
2011.
Other unlisted investments
This portfolio includes small businesses with growth potential as well as
investments in specialised investment funds focused on developing markets and
niche sectors. The portfolio is valued at its fair value of Euro 42 million in
the balance sheet at 31 March 2011, based on a detailed evaluation of each of
the investments.
Other developments
In February 2011, Reinet announced plans for a co-investment with Mr William T.
Winters and RIT Capital Partners to establish an investment advisory and
management business to be known as Renshaw Bay to be run by Mr Winters, a former
Co-Chief Executive of JP Morgan Investment Bank. Reinet will own 25 per cent of
the business alongside Mr Winters, who will hold 50 per cent, and RIT Capital
Partners, which will hold 25 per cent. It is anticipated that the business will
begin its activities in mid-2011. In addition to partnering in the advisory and
management company, it is anticipated that Reinet will co-invest in future
opportunities to be determined by the partners.
Committed funds
The table below summarises Reinet`s outstanding investment
commitments as at 31 March 2011.
Commitm Change New Funded
ent as in commitme in Remaining
at 31 commitm nts in current commitmen
March ent in year year t
2010 year Euro m Euro m Euro m
Euro m Euro m
- Trilantic 153 (20) - (33) 100
Capital Partners
funds (1)
- US land 49 (1) - (22) 26
development and
mortgages (2)
- Vanterra Flex 74 (3) - (13) 58
Investments L.P.
(2)
- Vanterra C - - 46 (10) 36
Change TEM
- Jagersfontein - - 63 (48) 15
- 36 South - - 88 (88) -
- Renshaw Bay - - 11 - 11
- Smaller - - 30 (1) 29
commitments
276 (24) 238 (215) 275
Other investments 15 - 27 (29) 13
(3)
291 (24) 265 (244) 288
(1) The remaining amount represents 80 per cent of the initial
commitment assumed by Reinet, 20 per cent having been sold to co-
investors. The movement in the year represents the sale of a
second tranche of 10 per cent together with the effect of
exchange rate fluctuations.
(2) The change in the year reflects exchange rate fluctuations.
(3) Represents portfolio of investments transferred from
Richemont in 2008.
Fees payable and other liabilities, net of other assets
Fees payable and other liabilities comprise principally Euro 86 million in
respect of the performance fee payable as at 31 March 2011, together with the
management fee and other operating expenses currently payable. The performance
fee and management fee are payable to Reinet Investment Advisors Limited.
The performance fee is calculated as 10 per cent of the increase in the
aggregate market value of Reinet Investments S.C.A. over the period since
completion of the rights issue in December 2008 up to 31 March 2011. The fee has
been calculated by reference to the volume weighted average closing market price
of the Company`s share on the Luxembourg Stock Exchange over the last 20 trading
days prior to 31 March 2011, which amounts to Euro 11.6064, compared to the
initial price (as defined in the Reinet Prospectus) of Euro 7.1945, multiplied
by the number of shares outstanding during the period. The performance fee for
the period from December 2008 to 31 March 2011 therefore amounted to Euro 86
million.
The management fee for the year under review amounted to Euro 23 million, of
which Euro 11 million was payable at 31 March 2011.
Summarised consolidated income statement
Year ended Year ended
31 March 31 March
2011Euro m 2010Euro m
BAT dividends received 103 84
Interest income 4 3
Operating expenses, foreign
exchange and transaction-related (30) (23)
costs
77 64
Realised gains (losses) on 4 (2)
investments
Unrealised fair value
adjustments
BAT 228 689
Other investments (11) (19)
Performance fee (46) (40)
Tax expense (3) -
Minority interest - (1)
Profit attributable to the
shareholders of the Company 249 691
Operating expenses include Euro 23 million in respect of the management fee for
the year ended 31 March 2011. Also included are Euro 1 million in charges from
Reinet Investments Manager S.A. (the `General Partner`) and transaction-related
expenses, including legal and other advisory fees, which amounted to Euro 1
million.
The investment in BAT increased in value by Euro 228 million during the year
under review. Of this, Euro 219 million was attributable to the increase in
value of the underlying BAT shares in sterling terms and Euro 9 million arose
due to the appreciation of sterling against the euro over the course of the
year. The unrealised fair value adjustment in respect of other investments
reflects the decision to further write down the carrying value of certain small
investments, offset to some extent by increases in the value of others.
A performance fee of Euro 86 million is payable at 31 March 2011.
The tax expense of Euro 3 million includes corporate and withholding taxes paid
in respect of realised gains on Trilantic investments plus a deferred tax
provision in respect of unrealised gains on Trilantic investments.
The minority interest arises in respect of the 20 per cent minority partners
holding in the vehicles which own the Trilantic and US land and development
interests as described above.
Profit attributable to shareholders of the Company for the year amounted to Euro
249 million.
Cash flow
Year ended Year ended
31 March 2011 31 March 2010
Euro m Euro m Euro m Euro m
Investing activities
Government bond fund 17 (100)
Investments made (266) (71)
Proceeds of sale of 18 (231) 5 (166)
investments
Financing activities
Funding from minority partners 21 1
Bank borrowings 46 67 - 1
Dividends, interest and other 104 87
income received
Operating and related expenses (27) (10)
Tax expense (1) -
Net cash outflow (88) (88)
Opening cash position 143 231
Effect of exchange rate (2) -
changes on cash balances
Closing cash position 53 143
Liquid funds were held as
follows
Cash 53 143
Government Bond Fund 183 200
Total 236 343
Euro 17 million was redeemed from the euro-denominated government bond fund
during the year. In accordance with International Financial Reporting Standards
(`IFRS`), this is shown as a financial asset rather than liquid funds in the
balance sheet, notwithstanding that the funds are readily realisable and short
term in nature. These funds are invested principally in short-term French and
German bonds. In addition to bank deposits of Euro 53 million, Reinet held Euro
183 million on deposit in the government bond fund at 31 March 2011. In total,
available liquid funds therefore amounted to Euro 236 million at the balance
sheet date.
Investments totalling Euro 266 million were made during the year, including Euro
31 million in respect of US real estate related opportunities, Euro 41 million
in respect of investments in Trilantic, Euro 48 million in respect of
Jagersfontein and Euro 88 million in respect of 36 South. The balance relates to
other unlisted investments. Funding in respect of 20 per cent of investments
made in Trilantic and US land and development was received from the minority
partners.
Dividends of Euro 102.9 million were received from BAT in the year, comprising a
final dividend in respect of the 2009 financial year of Euro 70.5 million ('
60.4 million) and an interim dividend for 2010 of Euro 32.4 million (' 28.0
million).
Liquid funds decreased by Euro 107 million over the year to Euro 236 million as
amounts invested in new investments plus payment of operating expenses exceeded
the inflow from dividends received from BAT.
Dividends
Recognising the need to accumulate retained earnings within Reinet Fund and
taking into account the uncertain economic environment, the Board of the General
Partner believes it prudent not to propose any dividend at this time.
Shares in issue
The number of shares in issue remained unchanged during the period at 195 942
286. This figure includes 1 000 management shares held by the General Partner.
Financial statements
The consolidated financial statements at 31 March 2011, on which this
announcement is based, have been audited and approved by the Board of the
General Partner on 18 May 2011 and are subject to shareholder approval at the
annual general meeting to be held in September 2011. The printed Reinet Annual
Report and Accounts will be available upon request from mid-July 2011.
Website: www.reinet.com
Reinet Investments S.C.A. (the "Company") is a partnership limited by shares
incorporated in the Grand Duchy of Luxembourg and having its registered office
at 35, boulevard Prince Henri, L 1724 Luxembourg. It is governed by the
Luxembourg law on securitisation and in this capacity allows its shareholders to
participate indirectly in the portfolio of assets held by its wholly-owned
subsidiary Reinet Fund S.C.A. F.I.S. (the `Fund`), a specialised investment fund
also incorporated in Luxembourg. Reinet shares are listed on the Luxembourg
Stock Exchange and Reinet South African Depository Receipts are listed in
Johannesburg. Reinet shares are included in the `LuxX` index of the principal
shares traded on the Luxembourg exchange and the South African Depository
Receipts are included in the JSE `Top 40` Share Index.
Notes for South African editors
Acknowledging the interest in Reinet`s results on the part of South African
investors, set out below are key figures from the results expressed in rand.
Using the closing euro/rand exchange rate prevailing as at 31 March 2011 of
9.5936, and a rate of 9.8399 as at 31 March 2010.
31 March 2011 31 March 2010
Net asset value ZAR 26 709 m ZAR 24 964 m
Net asset value per ordinary ZAR 136.33 ZAR 127.43
share
Using the average euro/rand exchange rate for the year ended 31 March 2011 of
9.4991, and an average rate of 11.0264 for the year 31 March 2010.
31 March 2011 31 March 2010
Profit for the year ZAR 2 365 m ZAR 7 619 m
Reinet Securities SA Depository Receipts are issued subject to the terms of the
Deposit Agreement entered into on 18 December 1992, most recently amended on 16
December 2010. By holding Depository Receipts, investors acknowledge that they
are bound by the terms of the Deposit Agreement. Copies of the Deposit Agreement
may be obtained by investors from Reinet Securities SA or Computershare Limited.
Sponsor
RAND MERCHANT BANK (a division of FirstRand Bank Limited)
Date: 27/05/2011 07:30:01 Supplied by www.sharenet.co.za
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