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REINET INVESTMENTS S.C.A - Consolidated unaudited financial results for the six-month period ended 30 September 2014

Release Date: 13/11/2014 08:00
Code(s): REI     PDF:  
Wrap Text
Consolidated unaudited financial results for the six-month period ended 30 September 2014

Reinet Investments S.C.A. Depositary Receipts
issued by Reinet Securities SA
(Incorporated in Switzerland)
ISIN: CH0045793657
Depositary Receipt Code: REI




COMPANY ANNOUNCEMENT FOR IMMEDIATE RELEASE



CONSOLIDATED UNAUDITED FINANCIAL RESULTS FOR THE SIX-MONTH PERIOD ENDED 30 SEPTEMBER 2014



The Board of Reinet Investments Manager S.A. announces the results of Reinet Investments S.C.A. for the six-month period ended 30 September 2014


Key financial data
Net asset value at 30 September 2014: EUR 4 542 million
(31 March 2014:  EUR 4 115 million)
Net asset value per ordinary share at 30 September 2014:  EUR 23.18
(31 March 2014: EUR 21.00)
Additional investment of EUR 94 million in Pension Corporation during the period
Dividends received from British American Tobacco ('BAT') during the period amounted to EUR 133 million
Initial dividend of EUR 30 million, or EUR 0.153 per share paid during the period



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. ('Reinet Fund' or 'the Fund'), a specialised investment fund also incorporated in Luxembourg.  The Company's shares are listed on the Luxembourg Stock Exchange, the primary listing, and its South African Depository Receipts are listed in Johannesburg, the secondary listing.  The Company's shares are included in the 'LuxX' index of the principal shares traded on the Luxembourg exchange. The Company and the Fund together with the Fund's subsidiaries are referred to as 'Reinet'.


Cautionary statement regarding forward-looking statements
This document contains forward-looking statements as that term is defined in the United States Private Securities Litigation Reform Act of 1995. Words such as 'may', 'should', 'estimate', 'project', 'plan', 'believe', 'expect', 'anticipate', 'intend', 'potential', 'goal', 'strategy', 'target', 'will', 'seek' and similar expressions may identify forward-looking statements. Such forward-looking statements are not guarantees of future performance. Actual results may differ materially from the forward-looking statements as a result of a number of risks and uncertainties, many of which are outside Reinet's control. Reinet does not undertake to update, nor does it have any obligation to provide updates or to revise, any forward-looking statements.

BUSINESS REVIEW
The Company has determinedthat it meets the definition of an investment entity in terms of the amended International Financial Reporting Standards ('IFRS') 10. This significantly simplifies the financial information presented in the consolidated financial statements. The consolidated net asset value and the consolidated income statement presented in this business review have been presented in a more comprehensive format, to provide readers with a more detailed understanding of the underlying figures.

CONSOLIDATED NET ASSET VALE
The Consolidated Net AssetValue ('NAV') of Reinet Investments S.C.A. at 30 September 2014 comprised:

+------------------------+--------+-----+----------+------+
|                        |30 September  |   31 March      |
|                        |        2014  |       2014      |
+------------------------+--------+-----+----------+------+
|                        |   EUR m|    %|     EUR m|     %|
+------------------------+--------+-----+----------+------+
|Listed investment       |        |     |          |      |
+------------------------+--------+-----+----------+------+
|British American        |        |     |          |      |
|Tobacco p.l.c.          |   3 321| 73.1|     2 997|  72.8|
+------------------------+--------+-----+----------+------+
|Unlisted investments    |        |     |          |      |
+------------------------+--------+-----+----------+------+
|Pension Corporation     |        |     |          |      |
|Group Limited           |     665| 14.6|       548|  13.3|
+------------------------+--------+-----+----------+------+
|                        |        |     |          |      |
+------------------------+--------+-----+----------+------+
|Private equity and      |        |     |          |      |
|related partnerships    |     712| 15.7|       655|  15.9|
+------------------------+--------+-----+----------+------+
|Trilantic Capital       |        |     |          |      | 
|Partners                |     229|  5.1|       210|   5.1|
+------------------------+--------+-----+----------+------+
|Fund IV, Fund V,        |        |     |          |      |
|TEP and                 |        |     |          |      |
|related management      |        |     |          |      |
|companies               |        |     |          |      |
+------------------------+--------+-----+----------+------+
|Renshaw Bay and         |        |     |          |      |
|related investments     |     152|  3.3|       128|   3.1|
+------------------------+--------+-----+----------+------+
|Renshaw Bay             |        |     |          |      |
|advisory and investment |        |     |          |      |
|management company      |      28|     |        26|      |
+------------------------+--------+-----+----------+------+
|JPS Credit              |        |     |          |      | 
|Opportunities Fund      |      70|     |        63|      |
+------------------------+--------+-----+----------+------+
|Renshaw Bay Real        |        |     |          |      | 
|Estate Finance Fund     |      33|     |        38|      |
+------------------------+--------+-----+----------+------+
|Renshaw Bay             |        |     |          |      |
|Structured Finance      |        |     |          |      |
|Opportunity Fund        |      21|     |         1|      |
+------------------------+--------+-----+----------+------+
|                        |        |     |          |      |
+------------------------+--------+-----+----------+------+
|36 South macro/         |        |     |          |      |
|volatility funds        |      67|  1.5|        72|   1.8|
+------------------------+--------+-----+----------+------+
|                        |        |     |          |      |
+------------------------+--------+-----+----------+------+
|Asian private           |        |     |          |      |
|equity and              |        |     |          |      |
|portfolio funds         |     127|  2.8|       104|   2.5|
+------------------------+--------+-----+----------+------+
|Milestone China         |        |     |          |      |
|Opportunities Funds,    |        |     |          |      |
|investment holdings     |        |     |          |      |
|and management company  |        |     |          |      |
|participation           |      97|     |        77|      |
+------------------------+--------+-----+----------+------+
|GEMS                    |       5|     |         8|      |
+------------------------+--------+-----+----------+------+
|Prescient China         |        |     |          |      |
|Balanced Fund           |      25|     |        19|      |
+------------------------+--------+-----+----------+------+
|                        |        |     |          |      |
+------------------------+--------+-----+----------+------+
|Specialised private     |        |     |          |      |
|equity funds            |     137|  3.0|       141|   3.4|
+------------------------+--------+-----+----------+------+
|Vanterra Flex           |        |     |          |      |
|Investments             |      44|     |        47|      |
+------------------------+--------+-----+----------+------+
|Vanterra C              |        |     |          |      |
|Change TEM              |      28|     |        30|      |
+------------------------+--------+-----+----------+------+
|NanoDimension Funds     |        |     |          |      |
|and co-investment       |        |     |          |      |
|opportunities           |      33|     |        29|      |
+------------------------+--------+-----+----------+------+
|Fountainhead            |        |     |          |      |
|Expert Fund             |      26|     |        25|      |
+------------------------+--------+-----+----------+------+
|Other fund              |        |     |          |      |
investments              |       6|     |        10|      |
+------------------------+--------+-----+----------+------+
|                        |        |     |          |      |
+------------------------+--------+-----+----------+------+
|United States           |        |     |          |      |
|land development        |        |     |          |      |
|and mortgages           |     157|  3.5|       134|   3.3|
+------------------------+--------+-----+----------+------+
|Diamond interests       |      83|  1.8|        76|   1.9|
+------------------------+--------+-----+----------+------+
|Other investments       |       9|  0.2|        10|   0.2|
+------------------------+--------+-----+----------+------+
|                        |   4 947|108.9|     4 420| 107.4|
+------------------------+--------+-----+----------+------+
|Cash and                |        |     |          |      |
|liquid funds            |     152|  3.3|       223|   5.4|
+------------------------+--------+-----+----------+------+
|Bank borrowings         |        |     |          |      |
|and collar financing    |        |     |          |      |
+------------------------+--------+-----+----------+------+
|Borrowings              |   (442)|(9.7)|     (420)|(10.2)|
+------------------------+--------+-----+----------+------+
|Derivative assets/      |        |     |          |      |
|(liabilities)           |    (23)|(0.5)|      (13)| (0.3)|
+------------------------+--------+-----+----------+------+
|Other liabilities       |        |     |          |      |
+------------------------+--------+-----+----------+------+
|Fees payable and        |        |     |          |      |
|other liabilities,      |        |     |          |      |
|net of other assets     |    (63)|(1.4)|      (59)| (1.4)|
+------------------------+--------+-----+----------+------+
|Funding by              |        |     |          |      |
|minority partners       |     (6)|(0.1)|      (19)| (0.5)|
+------------------------+--------+-----+----------+------+
|                        |   4 565|100.5|     4 132| 100.4|
+------------------------+--------+-----+----------+------+
|Minority interests      |    (23)|(0.5)|      (17)| (0.4)|
+------------------------+--------+-----+----------+------+
|Consolidated            |        |     |          |      |
|net asset value         |   4 542|100.0|     4 115| 100.0|
+------------------------+--------+-----+----------+------+


All of the underlying assets are held by Reinet Fund S.C.A., F.I.S. ('Reinet Fund' or 'the Fund'). Reinet Investments S.C.A. and the Fund together with the Fund's subsidiaries are referred to as 'Reinet'.

Further information on Reinet's investments may be found in the Reinet 2014 annual report which is available at www.reinet.com.

Major items impacting the NAV during the period under review are described below.

Listed Investment
BRITISH AMERICAN TOBACCO P.L.C.
The investment in British American Tobacco p.l.c. ('BAT') remains Reinet's single largest investment position and is kept under constant review, considering the company's performance, the industry outlook, cash flows from dividends, stock market performance, volatility and liquidity.

Reinet holds 74.3 million shares in BAT, representing 4.0 per cent of BAT's issued share capital. The value of Reinet's investment in BAT increased by EUR 324 million in the period to EUR 3 321 million at 30 September 2014, being 73 per cent of Reinet's NAV. The BAT share price on the London Stock Exchange increased over the period from GBP 33.35 to GBP 34.82. The increase in value is also a result of the strengthening of sterling against the euro during the period.

Reinet received dividends from BAT during the period amounting to EUR 133 million (GBP 107 million), being BAT's final 2013 dividend and interim 2014 dividend.

Further information on BAT is available at www.bat.com.

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 shareholders.

Since its formation in 2008, Reinet has invested over EUR 1 494 million and is committed to provide further funding of EUR 417 million to its current investments. Details of the funding commitments outstanding at 30 September 2014 are given in the table below of this report. The increase in commitments during the period under review amounted to EUR 45 million.

Unlisted investments are carried at their estimated fair value. In determining fair value, Reinet Fund Manager S.A. (the 'Fund Manager') relies on audited and unaudited financial statements of investee companies, management reporting and valuations provided by third-party experts. Valuations are based on the net asset value of investment funds as well as discounted cash flow models and comparable valuation multiples for other entities, as appropriate.

The table above shows the value of the 100 per cent investment in Trilantic Capital Partners and the United States land development and mortgages. In each case, Reinet co-invests with minority investors. Amounts attributable to these minority investors are shown in the table either as 'funding by minority partners' or 'minority interests'.

Funding commitments are entered into in various currencies including sterling, US dollars and South African rand and are converted into euro using 30 September 2014 exchange rates.

PENSION CORPORATION GROUP LIMITED
Committed amount: EUR 513 million (EUR equivalent of GBP commitment)
Invested amount: EUR 513 million (EUR equivalent of GBP commitment)

Pension Corporation Group Limited's ('Pension Corporation') wholly-owned subsidiary, Pension Insurance Corporation is one of the UK's leading providers of risk management solutions to defined benefit pension funds. Pension Insurance Corporation is authorised and regulated as an insurance company by the Prudential Regulation Authority in the United Kingdom. It has over GBP 11 billion in assets and has insured 100 000 pension fund members.

During the period under review, in accordance with its commitment, Reinet invested a further GBP 75 million (EUR 94 million) in Pension Corporation to bring its equity holding to 43 per cent. The total capital invested to date is GBP 400 million, which constitutes 100 per cent of Reinet's capital commitment to Pension Corporation.

Reinet's interest in Pension Corporation is carried at an estimated fair value of EUR 665 million at 30 September 2014 (31 March 2014: EUR 548 million), reflecting the higher ownership interest, the increase over the period to 30 June 2014 in the unaudited embedded value of Pension Corporation, and valuation multiples drawn from industry data. Reinet's interest in the company increased from 38 per cent at 31 March 2014 to 43 per cent at 30 September 2014.

Further information on Pension Corporation is available at www.pensioncorporation.com.

PRIVATE EQUITY AND RELATED PARTNERSHIPS
TRILANTIC CAPITAL PARTNERS
Trilantic Capital Partners ('Trilantic') is a global private equity firm focused on making controlling and significant minority interest investments in companies in North America and Western Europe. Trilantic employs flexible transaction structures and has a strong heritage of partnering with family-owned businesses and providing growth capital to management teams.

Reinet and its minority partner invest in the Trilantic general partnerships and management companies ('Trilantic Management'). The investment in Trilantic Management provides that Reinet and its partner will not pay any management fees or carried interest cost on substantially all of the investments in funds under Trilantic Management. In addition, the agreement provides for Reinet and its partner to receive a share of the carried interest payable to Trilantic Management on the realisation of investments held in the funds, once a hurdle rate has been achieved. This applies to Trilantic Capital Partners IV L.P. ('Fund IV Global') and Trilantic Capital Partners Fund IV (Europe) L.P. ('Fund IV Europe') (together 'Fund IV'), Trilantic Capital Partners V (North America) L.P. ('Fund V'), Trilantic Energy Partners (North America) L.P. ('TEP') and to any future funds to be launched by Trilantic. Reinet's share of any carried interest earned by Trilantic Management is 11.25 per cent in respect of Fund IV, 15 per cent in respect of Fund V and 10 per cent in respect of TEP.

Further information on Trilantic is available at www.trilanticpartners.com.

Trilantic Capital Partners IV L.P. and Trilantic Capital Partners Fund IV (Europe) L.P.
Committed amount: EUR 169 million (EUR commitment and EUR equivalent of USD commitment)
Invested amount: EUR 138 million (EUR commitment and EUR equivalent of USD commitment)

Reinet has a 90 per cent interest in an entity which invests in two funds, Fund IV Global, which invests primarily in North America, and Fund IV Europe, which invests primarily in Western Europe. Current investments held in the Fund IV Global portfolio in North America in which Reinet has interests in natural gas and oil exploration; aggregates extraction and distribution; sports and casual accessories; soft goods and electronics; electricity transmission component manufacture and supply; and outdoor and fitness accessories. In Western Europe, Fund IV has interests in gaming machines and video-lotteries; events management; education publishing; commodities broking; telecom operator and high-speed rail equipment manufacturing.

During the period under review, Reinet and its partner invested an additional EUR 1 million in Fund IV and received capital repayments of EUR 7 million. Net carried interest earned amounted to EUR 3 million together with realised gains of EUR 10 million, before tax. Of these amounts, in aggregate, EUR 18 million was attributable to Reinet and EUR 2 million to the minority partner.

As at 30 September 2014, Reinet and its partner have invested the equivalent of EUR 97 million (31 March 2014: EUR 99 million), net of capital repayments, in Fund IV. Capital repayments were received during the period under review, as Fund IV continues the process of realising investments. Total cash proceeds received from Fund IV during the period, being gains, carried interest and repayments of capital, amounted to EUR 20 million.

The investment is carried at the estimated fair value of EUR 203 million at 30 September 2014 (31 March 2014: EUR 199 million). The investment in Fund IV is based on unaudited valuation data provided by Trilantic Management as at 30 June 2014. The increase in the valuation is due to increases in unrealised gains on underlying investments, together with the strengthening of the US dollar against the euro during the period. Of the EUR 203 million carrying value, some EUR 183 million is attributable to Reinet, with the balance being attributable to its minority partner.

At 30 September 2014, Reinet had remaining commitments of EUR 31 million to invest in Fund IV.

Trilantic Capital Partners V (North America) L.P.
Committed amount: EUR 82 million (EUR equivalent of USD commitment)
Invested amount: EUR 21 million (EUR equivalent of USD commitment)

Independent of the investment in Fund IV, Reinet has also committed to invest EUR 82 million in Fund V.

Current investments held in the Fund V portfolio in North America include interests in hotel management services; natural gas and oil exploration; professional staffing and direct hire services; and outdoor equipment.

During the period under review, Reinet invested EUR 9 million in Fund V. The investment is carried at the estimated fair value of EUR 22 million at 30 September 2014 (31 March 2014: EUR 11 million), based on unaudited valuation data provided by Trilantic Management as at 30 June 2014.

At 30 September 2014, Reinet had remaining commitments of EUR 61 million to invest in Fund V.

Trilantic Energy Partners (North America) L.P.
Committed amount: EUR 20 million (EUR equivalent of USD commitment)
Invested amount: EUR 4 million (EUR equivalent of USD commitment)

Reinet has committed an amount of EUR 20 million to TEP and has an option to increase its commitment by a further EUR 20 million.

Current investments held in the TEP portfolio in North America focus on interests in natural gas and oil exploration.

During the period under review, Reinet invested EUR 4 million in TEP. The investment is carried at its cost of EUR 4 million at 30 September 2014 (31 March 2014: EUR nil).

At 30 September 2014, Reinet had remaining commitments of EUR 16 million to invest in TEP.

RENSHAW BAY AND RELATED INVESTMENTS

Reinet has co-invested with Mr William T. Winters and RIT Capital Partners plc in an investment advisory and management business, known as Renshaw Bay. Renshaw Bay is focused on investment opportunities resulting from dislocations and structural changes in capital markets. The business is managed by a team led by Mr Winters, a former Co-Chief Executive Officer of JP Morgan Investment Bank.

Further information on Renshaw Bay may be found at www.renshawbay.com.

JPS Credit Opportunities Fund (Cayman) Limited ('JPS Credit Fund')
Committed amount: EUR 55 million (EUR equivalent of USD commitment)
Invested amount: EUR 55 million (EUR equivalent of USD commitment)

JPS Credit Fund's investment objective is to achieve attractive risk-adjusted returns through both capital appreciation and current income by taking positions in publicly traded and privately held securities, derivatives and other instruments (including bonds, credit default swaps and index options), primarily in credit and credit-related markets.

Reinet invested its full commitment to JPS Credit Fund during the year ended 31 March 2012. The investment is carried at the estimated fair value of EUR 70 million at 30 September 2014 (31 March 2014: EUR 63 million) based on the valuation at that date provided by the fund manager.

The increase in fair value is mainly the result of the strengthening of the US dollar against the euro during the period.

Renshaw Bay Real Estate Finance Fund
Committed amount: EUR 128 million (EUR equivalent of GBP commitment)
Invested amount: EUR 33 million (EUR equivalent of GBP commitment)

The Renshaw Bay Real Estate Finance Fund was created to take advantage of opportunities resulting from a funding gap between the expected demand for commercial real estate finance and its availability from banks, other traditional lenders and equity investors.

During the period under review, an amount of EUR 8 million, net of capital calls, was repaid to Reinet due to subsequent fund closings and the admission of new investors into the fund. The amount repaid increases Reinet's undrawn commitment.

Reinet has invested EUR 33 million to date (31 March 2014:  EUR 39 million). The fair value at 30 September 2014 is EUR 33 million (31 March 2014: EUR 38 million) based on unaudited valuation data provided by Renshaw Bay at 30 June 2014.

Reinet is committed to invest a further EUR 95 million in the fund.

Renshaw Bay Structured Finance Opportunity Fund
Committed amount: EUR 119 million (EUR equivalent of USD commitment)
Invested amount: EUR 25 million (EUR equivalent of USD commitment)

Renshaw Bay Structured Finance Opportunity Fund seeks to provide investors with attractive risk-adjusted returns through investments principally in the structured finance and credit markets. The fund seeks to take advantage of opportunities driven by structural and regulatory change in the capital markets, as well as complexity fatigue and the retreat of capital.

During the period under review, Reinet invested an additional EUR 21 million in the Renshaw Bay Structured Finance Opportunity Fund.

The investment is carried at the estimated fair value of EUR 21 million at 30 September 2014 (31 March 2014: EUR 1 million), based on unaudited valuation data provided by Renshaw Bay at 30 June 2014.

Reinet is committed to invest a further EUR 94 million in the fund.

36 SOUTH GLOBAL MACRO/VOLATILITY FUNDS
Committed amount: EUR 88 million
Invested amount: EUR 88 million

36 South is an absolute return fund manager that specialises in managing global macro/volatility funds. 36 South was established in 2001 and specialises in finding cheap convexity, principally in long-dated options, across all asset classes. Its global volatility strategies are designed to perform well in most market environments but to substantially outperform in periods of extreme market movement and volatility.

Reinet has co-invested with the 36 South management team in the fund management and distribution companies. Reinet is also an investor in the 36 South funds. The funds are established through an Irish-registered investment fund - 36 South Funds plc.

Reinet invested its full commitment of EUR 88 million to 36 South in the year ended 31 March 2011.

The fund investment is carried at its estimated fair value of EUR 59 million, based on unaudited capital statements received from the fund manager as at 30 September 2014 (31 March 2014: EUR 64 million); and the fair value of the short-term loan and investment in the fund management companies amounted to EUR 8 million (31 March 2014: EUR 8 million). The investments in total have a fair value of EUR 67 million (31 March 2014: EUR 72 million). The change in valuation reflects the movement in the value of the underlying funds.

Further information on 36 South may be found at www.36south.com.

ASIAN PRIVATE EQUITY AND PORTFOLIO FUNDS
Milestone China Opportunities Funds ('Milestone'), investment holdings and management company participation

Reinet has invested with Milestone Capital in a management company based in Shanghai. Reinet has also invested in certain funds and investment companies managed by Milestone Capital.

Milestone Capital has a strong track record in helping portfolio companies scale their operations and be listed on either domestic or foreign stock exchanges. Funds under management invest primarily in domestic Chinese high-growth companies seeking expansion or acquisition capital. Milestone funds seek to maximise medium- to long-term capital appreciation by making direct investments to acquire minority or majority equity stakes in those companies identified by Milestone's investment team. Current areas of investment include: restaurants; B2C online travel services; bio-pharmaceutical manufacturers; medical device manufacturers; food and beverage distribution; brands covering sportswear and apparel; online group buying services; e-commerce; power generation equipment and retail pharmacies.

Further information on Milestone Capital and Milestone Funds may be found at www.mcmchina.com.

Management company participation
Committed amount: EUR 7 million (EUR equivalent of USD commitment)
Invested amount: EUR 7 million (EUR equivalent of USD commitment)

Reinet has invested in a management company which is the general partner of Milestone III and any subsequent funds.

As at 30 September 2014, capital contributions of EUR 7 million had been made in respect of this investment (31 March 2014: EUR 7 million).

In line with Reinet's policy not to value potential future performance fees and carried interest, this investment has been written down to a nominal value at 30 September 2014 and 31 March 2014.

Milestone China Opportunities Fund II L.P. ('Milestone II')
Committed amount: EUR 13 million (EUR equivalent of USD commitment)
Invested amount: EUR 11 million (EUR equivalent of USD commitment)

Reinet assumed the participation in Milestone II from Richemont when Reinet was formed in 2008. Since that time Reinet has invested EUR 6 million, net of capital repayments. The fund is now at a mature stage and assets are being realised over the remaining life of the fund.

At 30 September 2014, this investment is estimated to have a fair value of EUR 5 million based on unaudited valuation data received from the fund manager as at 30 June 2014 (31 March 2014: EUR 5 million).

At 30 September 2014, Reinet's remaining commitment to Milestone Fund II is EUR 2 million.

Milestone China Opportunities Fund III L.P. ('Milestone III')
Committed amount: EUR 79 million (EUR equivalent of USD commitment)
Invested amount: EUR 56 million (EUR equivalent of USD commitment)

In June 2011, Reinet committed to invest USD 100 million (EUR 79 million) in Milestone III.

During the period under review, Reinet invested an additional EUR 17 million in Milestone III.

As at 30 September 2014, capital contributions of EUR 56 million had been made to Milestone III, (31 March 2014: EUR 36 million). This investment is carried at the estimated fair value of EUR 52 million at 30 September 2014, based on unaudited valuation data provided by the fund manager at 30 June 2014 (31 March 2014: EUR 33 million). The increase in fair value over the period under review is mainly the result of the additional capital invested together with the strengthening of the US dollar against the euro during the period.

At 30 September 2014, Reinet's remaining commitment to Milestone Fund III is EUR 23 million.

Investment holdings
Committed amount: EUR 50 million (EUR equivalent of USD commitment)
Invested amount: EUR 45 million (EUR equivalent of USD commitment)

Reinet has also invested in a long-term investment vehicle in partnership with certain of the Milestone general partner principals and other partners, and in certain co-investments. The investment vehicle seeks to leverage the investment expertise of the Milestone principals.

As at 30 September 2014, capital contributions of EUR 45 million had been made in respect of these investments (31 March 2014: EUR 39 million). This increase is due to the movement in the USD/EUR exchange rate in the period.

These investments are carried at the estimated fair value of EUR 40 million at 30 September 2014, based on a recent independent valuation with listed investments marked to market values at the period end (31 March 2014: EUR 39 million).

At 30 September 2014, Reinet's remaining commitment is EUR 5 million.

Prescient China Balanced Fund ('Prescient China')
Committed amount: EUR 25 million (EUR equivalent of USD commitment)
Invested amount: EUR 23 million (EUR equivalent of USD commitment)

Prescient China is a fund managed by a subsidiary of Prescient Holdings Limited, a South African-listed fund manager. The fund invests in equities, bonds, cash and derivatives with the objective of generating inflation-beating returns at acceptable risk levels. It invests principally in equities and other instruments listed on the Shanghai and Shenzhen Stock Exchanges.

In March 2013, Reinet committed to invest EUR 23 million in Prescient China and EUR 2 million in its management company. Reinet invested its full capital commitment of EUR 23 million in the fund in March 2013.  This investment is carried at the estimated fair value of EUR 25 million based on unaudited valuation statements provided by the fund manager at 30 September 2014 (31 March 2014: EUR 19 million). The increase in value reflects the increase in the Chinese equity market during the period along with the strengthening of the US dollar against the euro.

Reinet's commitment to invest EUR 2 million in the management company structure remained uncalled at 30 September 2014.

Further information on Prescient China may be found at www.prescient.co.za.

SPECIALISED PRIVATE EQUITY FUNDS
Vanterra Flex Investments L.P. ('Vanterra')
Committed amount: EUR 79 million (EUR equivalent of USD commitment)
Invested amount: EUR 48 million (EUR equivalent of USD commitment)

Vanterra was established in 2010 to invest in privately issued securities and to make direct investments in the United States and emerging markets. Vanterra seeks to construct a globally diversified private equity portfolio providing investors with long-term capital appreciation. Vanterra has co-invested alongside Reinet in Trilantic Fund IV, in the United States land development and mortgages and in Vanterra C Change Transformative Energy and Materials I, L.P. and AIV-A L.P. In addition, Vanterra has investments in US healthcare and in a Brazilian private equity fund. Vanterra also co-invested with Trilantic Fund IV Europe, in a Spanish high-speed train manufacturer.

Reinet is an investor in both Vanterra and in its general partner.

As at 30 September 2014, EUR 48 million of committed funds (31 March 2014: EUR 44 million), together with EUR 3 million in respect of expenses (31 March 2014: EUR 3 million) had been invested in the fund.

During the period under review, Vanterra distributed a part of its minority holding in United States land development and mortgages to Reinet Fund; the value of this distributed interest amounted to EUR 5 million.

This investment is carried at the estimated fair value of EUR 44 million at 30 September 2014, based on unaudited financial information as at 30 June 2014 (31 March 2014: EUR 47 million).

Reinet is committed to invest a further EUR 31 million in Vanterra.

Further information on Vanterra may be found at www.vanterra.com.

Fountainhead Expert Fund ('Fountainhead')
Committed amount: EUR 32 million (including an increase of EUR 16 million in the period) (EUR equivalent of USD commitment)
Invested amount: EUR 16 million (EUR equivalent of USD commitment)

Fountainhead is a fund investing in a concentrated manner in global equities offering superior potential for capital appreciation and value realisation by benchmarking themselves to global inflation and striving for absolute real returns through time.

During the period under review, Reinet committed to invest a further EUR 16 million (USD 20 million) in Fountainhead, the additional commitment will be funded subject to the fulfilment of certain conditions.

Reinet has invested EUR 16 million to date in Fountainhead. As at 30 September 2014, the fair value of the investment was EUR 26 million based on the unaudited valuation at that date provided by the fund manager (31 March 2014: EUR 25 million). The increase in fair value is mainly the result of the strengthening of the US dollar against the euro during the period.

Further information on Fountainhead may be found at www.fountainheadpartners.co.za.

UNITED STATES LAND DEVELOPMENT AND MORTGAGES
Committed amount: EUR 139 million (including an increase of EUR 21 million in the period) (EUR equivalent of USD commitment)
Invested amount: EUR 131 million (EUR equivalent of USD commitment)

Reinet has co-invested both directly and with partners to acquire interests in real estate development projects. The investments are located in Florida, Georgia, Colorado, North and South Carolina and Nevada. These include properties where infrastructure services have been laid but where the construction of properties has not yet commenced. In addition, Reinet has invested in residential golf communities, owning the land for sale to future homeowners together with infrastructure assets. Reinet has also purchased mortgage debt linked to such developments from financial institutions, usually at significant discounts to face value.

During the period under review, Reinet invested an additional EUR 16 million in these projects and repaid funding provided by a minority partner in the amount of EUR 7 million.

At 30 September 2014, Reinet had invested EUR 131 million in these projects (31 March 2014: EUR 99 million). The increase in amounts invested includes some EUR 9 million in respect of foreign exchange gains due to the strengthening of the US dollar against the euro during the period.

The investment is carried at the estimated fair value of EUR 157 million (31 March 2014: EUR 134 million), of which EUR 149 million is attributable to Reinet (31 March 2014: EUR 116 million) and EUR 8 million to its partners (31 March 2014: EUR 18 million).

The current valuation is based on independent valuations of the underlying assets as at 30 June 2014. The increase in the valuation reflects the strengthening of the US dollar against the euro during the period.

During the period under review, Vanterra distributed a part of its minority holding in United States land development and mortgages to Reinet Fund; the value of this distributed interest amounted to EUR 5 million. In addition, Reinet Fund purchased the remaining minority shares by repaying funding provided by another minority partner in the amount of EUR 7 million. These transactions did not impact Reinet's aggregate fair value of the investment in United States land development and mortgages but did result in a reduction in the liability to minority partners and reduced the value attributable to minority interests.

Reinet is committed to invest a further EUR 8 million in these investments as at 30 September 2014.


DIAMOND INTERESTS

Reinet has invested in two projects in South Africa.

In total these projects are carried at their estimated fair value of EUR 83 million at 30 September 2014 (31 March 2014: EUR 76 million).

The exposure to the South African rand has been hedged by borrowings in that currency and through forward exchange contracts.

Jagersfontein
Project cost: EUR 60 million (EUR equivalent of ZAR cost)
Invested amount: EUR 55 million (EUR equivalent of ZAR cost)

Reinet is an investor in an entity which extracts diamonds from the waste tailings of mining operations which began over a century ago. The tailings are located at Jagersfontein in South Africa. Developments in terms of gemstone extraction technology since the mines were first excavated mean that there is now the potential to recover stones which were previously treated as waste.

Reinet's effective interest in the Jagersfontein project is 48 per cent. Other shareholders include a Black Economic Empowerment ('BEE') organisation, a local community trust and the parties responsible for the day-to-day operations.

Of the proceeds of diamond sales during the period, EUR 3 million (ZAR 40 million) was used to repay loans and interest due to Reinet with the balance retained to fund on-going operations.

As at 30 September 2014, Reinet held equity interests of EUR 16 million (31 March 2014: EUR 15 million) in the above investment and had outstanding loans of EUR 23 million (31 March 2014: EUR 25 million). In addition, EUR 6 million (31 March 2014: EUR 6 million) is receivable from third parties in respect of sales of part of the equity investments and Reinet has accrued income of EUR 4 million (31 March 2014: EUR 3 million) in respect of the funding that it has provided in connection with the project to date.

The investment is carried at its estimated fair value of EUR 49 million at 30 September 2014 (31 March 2014: EUR 49 million). The current valuation is based on discounted cash flow analyses prepared by local management.

Reinet is committed to invest a further EUR 4 million in this project as at 30 September 2014.

Rooipoort
Project cost: EUR 26 million (EUR equivalent of ZAR cost)
Invested amount: EUR 26 million (EUR equivalent of ZAR cost)

Reinet has a 49 per cent interest in a separate project, which has acquired rights to source diamonds on a previously unexploited site at Rooipoort near Kimberley in South Africa. Other shareholders include a BEE organisation and the parties responsible for the day-to-day operations.

During the period under review, Reinet made loans of EUR 2 million (ZAR 25 million) to Rooipoort. Of the proceeds of diamond sales during the period, EUR 1 million (ZAR 15 million) was used to repay loans and interest due to Reinet with the balance retained to fund on-going operations.

As at 30 September 2014, Reinet held equity interests of EUR 8 million (31 March 2014: EUR 4 million) in the above investment and had outstanding loans of EUR 19 million (31 March 2014: EUR 17 million). In addition, EUR 3 million (31 March 2014: EUR 3 million) is receivable from third parties in respect of sales of part of the equity investments and Reinet has accrued income of EUR 4 million (31 March 2014: EUR 3 million) in respect of the funding that it has provided in connection with the project to date.

The investment is carried at its estimated fair value of EUR 34 million at 30 September 2014 (31 March 2014: EUR 27 million). The current valuation is based on discounted cash flow analyses prepared by local management.

Reinet is committed to invest a further EUR 1 million in this project as at 30 September 2014.


Committed Funds
The table below summarises Reinet's outstanding investment commitments as at 30 September 2014 and movements in the period then ended.

+----------------------+--------+----------+----------+
|                      |As at 31|  Exchange| Committed|
|                      |   March|      rate|during the|
|                      | 2014(1)|effects(2)|period (3)|
+----------------------+--------+----------+----------+
|                      |   EUR m|     EUR m|     EUR m|
+----------------------+--------+----------+----------+
|                      |        |          |          |
+----------------------+--------+----------+----------+
|Pension Corporation   |        |          |          |
|Group Limited(4)      |      91|         5|         -|
+----------------------+--------+----------+----------+
|                      |        |          |          |
+----------------------+--------+----------+----------+
|Private equity and    |        |          |          |
|related partnerships  |        |          |          |
+----------------------+--------+----------+----------+
|Trilantic Capital     |        |          |          |
|Partners(5)           |        |          |          |
+----------------------+--------+----------+----------+
|Fund IV, Fund V,      |        |          |          |
|TEP and related       |        |          |          |
|management companies  |     112|        10|         -|
+----------------------+--------+----------+----------+
|Renshaw Bay and       |        |          |          |
|related investments   |        |          |          |
+----------------------+--------+----------+----------+
|Renshaw Bay Real      |        |          |          |
|Estate Finance Fund   |      82|         5|         -|
+----------------------+--------+----------+----------+
|Renshaw Bay           |        |          |          |
|Structured Finance    |        |          |          |
|Opportunity Fund      |     106|         9|         -|
+----------------------+--------+----------+----------+
|Asian private equity  |        |          |          |
|and portfolio funds   |        |          |          |
+----------------------+--------+----------+----------+
|Milestone China       |        |          |          | 
|Opportunities Funds   |        |          |          |
|investment holdings   |        |          |          |
|and management        |        |          |          |
|company participations|      44|         3|         -|
+----------------------+--------+----------+----------+
|Prescient China       |        |          |          |
|Balanced Fund         |       1|         1|         -|
+-------------------- -+--------+----------+----------+
|Specialised private   |        |          |          |
|equity funds          |        |          |          |
+----------------------+--------+----------+----------+
|Vanterra Flex         |        |          |          |
|Investments           |      29|         2|         -|
+----------------------+--------+----------+----------+
|Vanterra C Change TEM |       3|         -|         -|
+----------------------+--------+----------+----------+
|NanoDimension funds   |        |          |          |
|and co-investments    |        |          |          |
|opportunities         |      16|         2|         -|
+----------------------+--------+----------+----------+
|Fountainhead          |        |          |          |
|Expert Fund           |       -|         -|        16|
+----------------------+--------+----------+----------+
|Other fund investments|       5|         -|         -|
+----------------------+--------+----------+----------+
|United States         |        |          |          |
|land development and  |        |          |          |
|mortgages(5)          |       9|         1|        21|
+----------------------+--------+----------+----------+
|Diamond interests     |       6|         1|         -|
+----------------------+--------+----------+----------+
|Other investments     |       4|         -|         8|
+----------------------+--------+----------+----------+
|                      |     508|        39|        45|
+----------------------+--------+----------+----------+

+----------------------+----------+---------+---------+
|                      |    Funded| As at 30| As at 30|
|                      |during the|September|September|
|                      |period (3)|  2014(3)|     2014|
+----------------------+----------+---------+---------+
|                      |     EUR m|    EUR m|        %|
+----------------------+----------+---------+---------+
|                      |          |         |         |
+----------------------+----------+---------+---------+
|Pension Corporation   |          |         |         |
|Group Limited(4)      |      (96)|        -|        -|
+----------------------+----------+---------+---------+
|                      |          |         |         |
+----------------------+----------+---------+---------+
|Private equity and    |          |         |         |
|related partnerships  |          |         |         |
+----------------------+----------+---------+---------+
|Trilantic Capital     |          |         |         |
|Partners(5)           |          |         |         |
+----------------------+----------+---------+---------+
|Fund IV, Fund V,      |          |         |         |
|TEP and related       |          |         |         |
|management companies  |      (14)|      108|     25.9|
+----------------------+----------+---------+---------+
|Renshaw Bay and       |          |         |         |
|related investments   |          |         |         |
+----------------------+----------+---------+---------+
|Renshaw Bay Real      |          |         |         |
|Estate Finance Fund   |         8|       95|     22.8|
+----------------------+----------+---------+---------+
|Renshaw Bay           |          |         |         |
|Structured Finance    |          |         |         |
|Opportunity Fund      |      (21)|       94|     22.5|
+----------------------+----------+---------+---------+
|Asian private equity  |          |         |         |
|and portfolio funds   |          |         |         |
+----------------------+----------+---------+---------+
|Milestone China       |          |         |         | 
|Opportunities Funds   |          |         |         |
|investment holdings   |          |         |         |
|and management        |          |         |         |
|company participations|      (17)|       30|      7.2|
+----------------------+----------+---------+---------+
|Prescient China       |          |         |         |
|Balanced Fund         |         -|        2|      0.5|
+-------------------- -+----------+---------+---------+
|Specialised private   |          |         |         |
|equity funds          |          |         |         |
+----------------------+----------+---------+---------+
|Vanterra Flex         |          |         |         |
|Investments           |         -|       31|      7.4|
+----------------------+----------+---------+---------+
|Vanterra C Change TEM |       (3)|        -|        -|
+----------------------+----------+---------+---------+
|NanoDimension funds   |          |         |         |
|and co-investments    |          |         |         |
|opportunities         |       (1)|       17|      4.1|
+----------------------+----------+---------+---------+
|Fountainhead          |          |         |         |
|Expert Fund           |         -|       16|      3.8|
+----------------------+----------+---------+---------+
|Other fund investments|       (1)|        4|      1.0|
+----------------------+----------+---------+---------+
|United States         |          |         |         |
|land development and  |          |         |         |
|mortgages(5)          |      (23)|        8|      1.9|
+----------------------+----------+---------+---------+
|Diamond interests     |       (2)|        5|      1.2|
+----------------------+----------+---------+---------+
|Other investments     |       (5)|        7|      1.7|
+----------------------+----------+---------+---------+
|                      |     (175)|      417|    100.0|
+----------------------+----------+---------+---------+

(1) Commitments calculated using 31 March 2014 exchange rates.
(2) Reflects exchange rate movements between 31 March 2014 and 30 September 2014.
(3) Amounts calculated using 30 September 2014 exchange rates.
(4) The amount paid to Pension Corporation during the period amounts to EUR 94 million using actual exchange rates, the additional EUR 2 million relates to exchange differences between the date of payment and the period end rate.
(5) Commitments noted represent only Reinet's share of the investments at 30 September 2014, additional commitments payable by minority partners amount to EUR 3 million in respect of Trilantic and EUR nil in respect of United States land development and mortgages.


CASH AND LIQUID FUNDS
Reinet holds cash on deposit principally in European banks.

Reinet's liquidity is measured by its ability to meet potential cash requirements, including unfunded commitments on investments and the repayment of borrowings. This can be summarised as follows:


Cash at bank                                                          EUR 152 m  

Undrawn borrowing facilities                                          EUR 385 m  

Cash required for unfunded commitments (refer to table above)        (EUR 417 m)

Cash required to meet ZAR borrowing obligations (refer to note below) (EUR 31 m)


Bank borrowings of EUR 411 million under the collar financing arrangements will be settled either by the delivery of BAT shares pursuant to the put and call options in place, by the proceeds of the sale of BAT shares or may be rolled over or replaced by other borrowings.

Reinet may sell further BAT shares or use such shares to secure additional financing facilities from time to time.

The undrawn borrowing facilities comprise a facility with Bank of America Merrill Lynch for GBP 150 million and a facility with Morgan Stanley of GBP 150 million.  As at 30 September 2014, these facilities had not been drawn upon.

BANK BORROWINGS AND RELATED DERIVATIVE CONTRACTS
BORROWINGS
In February 2012, in order to meet its ongoing commitments, Reinet entered into a GBP 300 million, medium-term collar financing arrangement. At 30 September 2014, the fair value of this borrowing was EUR 383 million (31 March 2014: EUR 358 million). The increase in fair value reflects lower market interest rates and the strengthening of sterling against the euro during the period. The collar financing arrangement involves the purchase by Reinet of put options and the sale by Reinet of call options over 13.7 million BAT shares. The remaining unpaid net option premium is payable over the period to 2017 and is carried as a liability at its fair value of EUR 28 million as at 30 September 2014 (31 March 2014: EUR 32 million).

Reinet has also borrowed ZAR 443 million to fund its investments in South African projects. At 30 September 2014, the fair value of the borrowing was EUR 31 million (31 March 2014: EUR 30 million).

DERIVATIVE ASSETS/(LIABILITIES) - PUT AND CALL OPTIONS AND FORWARD EXCHANGE CONTRACTS
Put and call options in respect of the GBP 300 million medium-term collar financing arrangement noted above are carried at their respective fair values at the balance sheet date. The net derivative liability is carried at its fair value of EUR 23 million at 30 September 2014 (31 March 2014: EUR 16 million).

Reinet has entered into forward exchange contracts to sell ZAR 715 million (31 March 2014: ZAR 890 million). The net derivative asset in respect of the forward exchange contracts is carried at its fair value of EUR nil at 30 September 2014 (31 March 2014: EUR 3 million).

OTHER LIABILITIES
FEES PAYABLE AND OTHER LIABILITIES, NET OF OTHER ASSETS
Fees payable and other liabilities comprise principally an accrual of EUR 12 million in respect of the performance fee payable as at 30 September 2014, together with the management fee payable of EUR 13 million. The performance fee and management fee are payable to the Investment Advisor. The management fee for the period under review amounted to EUR 18 million (30 September 2013: EUR 18 million).

In addition, a provision for deferred taxes of EUR 25 million relating to gains arising from the investments in the Trilantic funds has been made. Withholding taxes of EUR 10 million relating to the investment in United States land development and mortgages have also been provided for, together with other operating expenses currently payable.

FUNDING BY MINORITY PARTNERS
Reinet invests in certain investments, principally the Trilantic funds and United States land development and mortgages, along with minority partners. As capital calls are received, minority partners fund their share by advancing funds to Reinet; as distributions are received from investees, Reinet refunds their pro-rata share to the minority partners. During the period under review, Reinet Fund purchased a part of the minority interests in United States land development and mortgages. In addition, Vanterra Flex distributed a part of its minority holding in the same investment to Reinet Fund. These transactions reduced the amounts due to minorities.

MINORITY INTERESTS
Minority partners share in the gains and losses arising in the investments in which they have interests. To the extent that gains are not distributed to minority partners, their share of the uplift in valuation is accounted for as a liability to them.


SUMMARISED CONSOLIDATED INCOME STATEMENT

+---------------------------------------------------+
|                            Six-month period ended |
+-------------------------------+-----+-------------+
|                               |       30 September|
|                               |               2014|
|                               |EUR m         EUR m|
+-------------------------------+-----+-------------+
|Income                         |     |             |
+-------------------------------+-----+-------------+
|BAT dividends                  |  133|             |
+-------------------------------+-----+-------------+
|Interest and other             |     |             |
|investment income              |    9|             |
+-------------------------------+-----+-------------+
|Realised gains on investments  |     |             |
|- BAT                          |    -|             |
|- Others                       |   10|             |
+-------------------------------+-----+-------------+
|Realised gains on foreign      |     |             |
|exchange contracts             |    -|             |
+-------------------------------+-----+-------------+
|Carried interest earned        |     |             |
|on investments                 |    3|          155|
+-------------------------------+-----+-------------+
|                               |     |             |
+-------------------------------+-----+-------------+
|Expenses                       |     |             |
+-------------------------------+-----+-------------+
|Management fee                 | (18)|             |
+-------------------------------+-----+-------------+
|Performance fee                | (12)|             |
+-------------------------------+-----+-------------+
|Operating expenses,            |     |             |
|foreign exchange and           |     |             |
|transaction-related costs      |  (4)|             |
+-------------------------------+-----+-------------+
|Interest expense               |  (6)|             |
+-------------------------------+-----+-------------+
|Tax expense                    |  (7)|         (47)|
+-------------------------------+-----+-------------+
|Realised investment            |     |             | 
|income, net of expenses        |     |          108|
+-------------------------------+-----+-------------+
|Fair Value Adjustments         |     |             |
+-------------------------------+-----+-------------+
|BAT                            |     |             |
|- unrealised gain /            |     |             |
|(loss) on shares held          |  324|             |
|- reversal of unrealised       |     |             |
|  gain on shares sold (1)      |    -|             |
+-------------------------------+-----+-------------+
|Other investments              |   57|             |
+-------------------------------+-----+-------------+
|Derivative instruments         | (10)|             |
+-------------------------------+-----+-------------+
|Borrowings                     | (25)|          346|
+-------------------------------+-----+-------------+
|                               |     |             |
+-------------------------------+-----+-------------+
|Effect of exchange rate        |     |             |
|changes on cash balances       |     |            9|
+-------------------------------+-----+-------------+
|Net profit                     |     |          463|
+-------------------------------+-----+-------------+
|Minority interest              |     |          (6)|
+-------------------------------+-----+-------------+
|Profit attributable to         |     |             |
|the shareholders of the Company|     |          457|
+-------------------------------+-----+-------------+

+---------------------------------------------------+
|                            Six-month period ended |
+-------------------------------+-----+-------------+
|                               |       30 September|
|                               |               2013|
|                               |EUR m         EUR m|
+-------------------------------+-----+-------------+
|Income                         |     |             |
+-------------------------------+-----+-------------+
|BAT dividends                  |  126|             |
+-------------------------------+-----+-------------+
|Interest and other             |     |             |
|investment income              |   10|             |
+-------------------------------+-----+-------------+
|Realised gains on investments  |     |             |
|- BAT                          |  108|             |
|- Others                       |    2|             |
+-------------------------------+-----+-------------+
|Realised gains on foreign      |     |             |
|exchange contracts             |    9|             |
+-------------------------------+-----+-------------+
|Carried interest earned        |     |             |
|on investments                 |    -|          255|
+-------------------------------+-----+-------------+
|                               |     |             |
+-------------------------------+-----+-------------+
|Expenses                       |     |             |
+-------------------------------+-----+-------------+
|Management fee                 | (18)|             |
+-------------------------------+-----+-------------+
|Performance fee                |    -|             |
+-------------------------------+-----+-------------+
|Operating expenses,            |     |             |
|foreign exchange and           |     |             |
|transaction-related costs      |  (3)|             |
+-------------------------------+-----+-------------+
|Interest expense               |  (6)|             |
+-------------------------------+-----+-------------+
|Tax expense                    |  (5)|         (32)|
+-------------------------------+-----+-------------+
|Realised investment            |     |             | 
|income, net of expenses        |     |          223|
+-------------------------------+-----+-------------+
|Fair Value Adjustments         |     |             |
+-------------------------------+-----+-------------+
|BAT                            |     |             |
|- unrealised gain /            |     |             |
|(loss) on shares held          |(195)|             |
|- reversal of unrealised       |     |             |
|  gain on shares sold (1)      |(106)|             |
+-------------------------------+-----+-------------+
|Other investments              |   70|             |
+-------------------------------+-----+-------------+
|Derivative instruments         |    7|             |
+-------------------------------+-----+-------------+
|Borrowings                     |    7|        (217)|
+-------------------------------+-----+-------------+
|                               |     |             |
+-------------------------------+-----+-------------+
|Effect of exchange rate        |     |             |
|changes on cash balances       |     |          (4)|
+-------------------------------+-----+-------------+
|Net profit                     |     |            2|
+-------------------------------+-----+-------------+
|Minority interest              |     |          (1)|
+-------------------------------+-----+-------------+
|Profit attributable to         |     |             |
|the shareholders of the Company|     |            1|
+-------------------------------+-----+-------------+

(1) The reversal of the unrealised gain on shares sold represents the unrealised gain as at 1 April 2013 on 5 million BAT shares sold during the period ended 30 September 2013.

INCOME
Dividends received from BAT increased by 6 per cent from EUR 126 million (GBP 106 million) during the period to September 2013 to EUR 133 million (GBP 107 million) during the period under review. The increase is due to the increase of GBP 0.07 in the dividend per BAT share along with the strengthening of sterling against the euro as compared to the same period last year, offset by the reduced number of BAT shares held following the sale of 5 million BAT shares in April 2013. The dividends received from BAT during the period represent the final 2013 dividend, paid in May 2014 as well as the interim 2014 dividend paid in September 2014.

Interest income is earned on bank deposits and on loans advanced to underlying investments.

Total realised gains of EUR 10 million in respect of investments realised by the Trilantic funds.

Carried interest of EUR 3 million was attributable to Reinet in respect of investments realised by the Trilantic funds.

EXPENSES
A performance fee may be payable for the year ended 31 March 2015, if the average Reinet share price in the last 20 trading days of March 2015 exceeds the high watermark of EUR 15.82. The provision for the performance fee accrued in respect of the six-month period ended 30 September 2014 amounts to EUR 12 million (30 September 2013: EUR nil).

The management fee for the period ended 30 September 2014 amounts to EUR 18 million (30 September 2013: EUR 18 million) with other operating expenses of EUR 1 million in respect of charges from Reinet Investments Manager S.A. (the 'General Partner'), transaction costs and other expenses, including legal and other fees, which amounted to EUR 3 million.

Interest expense relates to sterling and rand denominated borrowings.

The net tax expense of EUR 7 million includes corporate and withholding taxes payable in respect of gains realised on Trilantic investments, as well as a deferred tax provision in respect of unrealised gains, expected distributions and accrued interest in respect of the Trilantic funds and other US investments.

FAIR VALUE ADJUSTMENTS
The investment in 74 million BAT shares increased in value by EUR 324 million during the period under review. Of this, EUR 132 million was attributable to the increase in value of the underlying BAT shares in sterling terms and EUR 192 million was due to the appreciation of sterling against the euro during the period under review.

The unrealised fair value adjustment of EUR 57 million in respect of other investments reflects the increase in the fair value of the investment in Pension Corporation of EUR 23 million, an increase in the fair value of the Trilantic funds by EUR 13 million, increases in the value of the investments in United States land development and mortgages of EUR 11 million together with increases of EUR 10 million in respect of other investments.

The fair value of the collar financing derivative liability increased by EUR 7 million during the period, reflecting mainly the increase in the price of the BAT shares underlying the put and call options. The fair value of the forward exchange contracts decreased by EUR 3 million; the contracts were settled on 30 September 2014 realising a gain of EUR 0.2 million.

Borrowings are carried at fair value reflecting the discounted cash flow value of future principal and interest payments taking into account prevailing interest rates.  An unrealised loss of EUR 1 million arose in respect of the rand borrowing due to the strengthening of the South African rand during the period.  An unrealised loss of EUR 24 million arose in respect of the sterling borrowing. Of this, a loss of EUR 23 million is due to the strengthening of the sterling/euro exchange rate during the period and a loss of EUR 1 million arose due to the effect of lower interest rates used in discounting future cash flows.

MINORITY INTEREST
The minority interest expense arises in respect of the minority partners' shares in the earnings of the Reinet entities which hold the Trilantic and United States land development and mortgages interests, respectively.

PROFIT FOR THE PERIOD
Net realised income for the period amounted to EUR 108 million (30 September 2013: EUR 223 million). Net profit attributable to shareholders, taking into account unrealised fair value adjustments, was EUR 457 million (30 September 2013: EUR 1 million).

DIVIDEND
A dividend of EUR 0.153 per share amounting to EUR 30 million in total was paid in September 2014. No interim dividend is proposed in respect of the six-months ended 30 September 2014.

SHARE INFORMATION
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 unaudited interim consolidated financial statements at 30 September 2014, on which this announcement is based, were approved by the Board of the General Partner on 11 November 2014. The printed Reinet Interim Report will be available upon request from early December 2014.

STATUTORY  INFORMATION
Primary Listing
Reinet Investments S.C.A. shares are listed on the Luxembourg Stock Exchange with the ISIN number LU0383812293. Thomson Reuters code REIT.LU and Bloomberg code REIN.LX. Reinet shares are included in the 'LuxX' index of the principal shares traded on the Luxembourg exchange.

Secondary Listing
Reinet Investments S.C.A. South African Depository Receipts are traded on the stock exchange in Johannesburg under the ISIN number CH 0045793657. Thomson Reuters code REIJ.J and Bloomberg code REI:SJ. One depository receipt issued by Reinet Securities SA represents one tenth of one ordinary share in Reinet Investments S.A.

Sponsor
RAND MERCHANT BANK (a division of FirstRand Bank Limited)

13 November 2014


Reinet Investments Manager S.A.
General Partner
For and on behalf of Reinet Investments S.C.A.

Website: www.reinet.com
Reinet Investments S.C.A. 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., a specialised investment fund also incorporated in Luxembourg. Reinet Investments shares are listed on the Luxembourg Stock Exchange, its primary listing, and Reinet Investments South African Depository Receipts are listed in Johannesburg, its secondary listing.


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 30 September 2014 of 14.2542, and a rate of 14.5024 as at 31 March 2014.

+----------------------------------++-----------------++-------------+
|                                  ||30 September 2014||31 March 2014|
+----------------------------------++-----------------++-------------+
|                                  ||                 ||             |
+----------------------------------++-----------------++-------------+
|Net asset value                   ||     ZAR 64 743 m|| ZAR 59 677 m|
+----------------------------------++-----------------++-------------+
|                                  ||                 ||             |
+----------------------------------++-----------------++-------------+
|Net asset value per ordinary share||       ZAR 330.41||   ZAR 304.55|
+----------------------------------++-----------------++-------------+

Using the average euro/rand exchange rate for the six-month period ended 30 September 2014 of 14.3590 and an average rate of 12.8125 for the six-month period ended 30 September 2013.

+---------------------++-----------------++-----------------+
|                     ||30 September 2014||30 September 2013|
+---------------------++-----------------++-----------------+
|                     ||                 ||                 |
+---------------------++-----------------++-----------------+
|Profit for the period||      ZAR 6 562 m||         ZAR 13 m|
+---------------------++-----------------++-----------------+


Headline earnings per share

To comply with the South African practice of providing Headline earnings per share data, the relevant data is as follows:

+-----------------------------+-----------------++-----------------+
|                             |30 September 2014||30 September 2013|
+-----------------------------+-----------------++-----------------+
|                             |                 ||                 |
+-----------------------------+-----------------++-----------------+
|Unadjusted earnings per share|         EUR 2.33||         EUR 0.01|
+-----------------------------+-----------------++-----------------+
|Headline earnings per share *|         EUR 2.33||         EUR 0.01|
+-----------------------------+-----------------++-----------------+

* There are no dilutive instruments


Reinet Investments S.C.A.
Registered office: 35, Boulevard Prince Henri, L-1724 Luxembourg
Telephone: +352 22 42 10, Telefax: +352 22 7253
Email: info@reinet.com, website: www.reinet.com


Date: 13/11/2014 08:00:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
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