Reinet records its assets and liabilities in euro; the strengthening of sterling and the South African rand against the euro, offset by the weakening of the US dollar against the euro has resulted in an overall increase in the value of certain assets and liabilities in euro terms. Applying the current year-end exchange rates to the March 2020 assets and liabilities would have resulted in an increase in the March 2020 NAV of some EUR 92 million.

SHARE BUYBACK PROGRAMME

During the year the Company did not enter into new share buyback programmes and as a result there was no share buyback programme in progress at 31 March 2021.

The Company has repurchased 11 651 395 ordinary shares between November 2018 and November 2019 under four share buyback programmes. The cost of the ordinary shares repurchased amounts to EUR 173 million, plus transaction costs.

All ordinary shares repurchased are held as treasury shares.

NET ASSET VALUE PER SHARE

The NAV per share of the Company is calculated by dividing the NAV by the number of shares outstanding (excluding treasury shares) of 184 290 891.

SHARE PRICE

The Company's indicative closing share price as quoted on the Luxembourg Stock Exchange increased by 21.4 per cent in the year from EUR 14.00 at 31 March 2020 to EUR 17.00 at 31 March 2021, with the highest trade being at EUR 17.70 during the year. The total shareholder return since inception (taking into account the initial price of EUR 7.1945 and including dividends paid) is 7.9 per cent per annum. The growth in NAV, including dividends paid, reflects a 9.7 per cent compounded increase since March 2009. The Company's ordinary shares are listed on the Luxembourg Stock Exchange, Euronext Amsterdam and the Johannesburg Stock Exchange ('JSE'); the listing on the JSE is a secondary listing.

Share prices as at 31 March 2021 and 31 March 2020 were as follows: 


              31 March 2021 31 March 2020 
              ZAR     EUR   ZAR     EUR 
Luxembourg    -       17.00 -       14.00 
Euronext      -       17.08 -       14.00 
JSE           291.81  -     284.55  -

COVID-19

In March 2020, the World Health Organisation classified the COVID-19 outbreak as a pandemic. During the past year, this has resulted in significant levels of market uncertainty mostly reflected in increased market, currency and commodity volatility. The fair value of Reinet's investments will continue to be impacted by these factors which can be positive or negative.

Reinet continues to value its investments in line with International Private Equity and Venture Capital Valuation ('IPEV') guidelines and its approved valuation procedures and methodologies. All investment valuations have been prepared using latest available data. Discussions have also taken place with fund managers to determine any significant changes in value. The long-term financial impact of COVID-19 is still unknown and as reliable data pertaining to the portfolio investments becomes available it will be taken into account in future fair value calculations.

A significant portion of the investment valuations take into account the market impacts of COVID-19, and in some instances the subsequent market recovery as at 31 March 2021. Management believes the fair values calculated as at 31 March 2021 for the remaining investment valuations are appropriate, following the relevant IPEV guidelines, and as up to date as possible using the latest available information.

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 some EUR 3.1 billion and at 31 March 2021 has committed to provide further funding of EUR 384 million to its current investments. Details of the funding commitments outstanding are given in the table on page 21 of this report. New commitments during the year under review amounted to EUR 187 million, and a total of EUR 404 million was funded during the year.

LISTED INVESTMENTS

BRITISH AMERICAN TOBACCO P.L.C.

The investment in British American Tobacco p.l.c. ('BAT') remains one of Reinet's largest investments and is kept under constant review, considering the company's performance, the industry outlook, cash flows from dividends, stock market performance, volatility and liquidity.

Richard Burrows, Chairman, and Jack Bowles, Chief Executive, writing in the BAT annual report for 2020 commented:

Richard Burrows: 'The unprecedented impact of the COVID-19 crisis has disrupted all aspects of life around the world and our sympathies are with anyone suffering from the virus or who has lost family or friends in the pandemic. Our priority throughout has been to safeguard the welfare of our people while ensuring that the business has continued to operate effectively. The Board and management have worked very closely together to address the disruptions experienced throughout the year. The strength of the business, combined with the professionalism and resilience of our global teams have enabled us, in 2020, to deliver a strong operational performance during challenging times. Foreign exchange headwinds impacted our reported results, with Group revenue down 0.4 per cent. This was despite a good revenue performance (excluding the impact of currency) and I am pleased to report growth in both value and volume share, with revenue from New Categories growing 15 per cent. Clarity around the full impact of the pandemic, and for life to return to some semblance of normality, will take time. The duration of the short-term impact on the performance of the business will depend on the nature and timing of the subsequent economic recovery, but we believe we are well positioned to emerge as a stronger company.' Jack Bowles: 'Our business continues to transform during this period of unprecedented change. Our purpose - to build 'A Better Tomorrow' by reducing the health impact of our business has remained our North Star. It continues to guide our strategic choices and the execution of our strategy. Delivering 'A Better Tomorrow' through consumer-led insights, innovation and science are central to this purpose. Our consumer-centric, multi-category approach offers the widest range of enjoyable and less risky products, including Vapour products, Tobacco Heating Products and Modern Oral nicotine pouches. We believe our multi-category strategy is the most effective way of appealing to the diverse preferences of adult consumers around the world while reducing the health impact of our business.'

During the year under review, dividend income recorded from BAT amounted to EUR 132 million (GBP 118 million), being BAT's second, third and fourth 2020 quarterly dividends, together with the first 2021 quarterly dividend of some EUR 37 million (GBP 31 million) with a record date of 26 March 2021. The first 2021 quarterly dividend will be paid on 12 May 2021 and has been included as a receivable in the NAV as at 31 March 2021, due to the record date falling within the financial year.

Reinet sold 2 million BAT shares in the year under review for total proceeds of some EUR 65 million (GBP 56 million) and thus holds 56.1 million BAT shares representing some 2.44 per cent of BAT's issued share capital as at 31 March 2021.

The value of Reinet's investment in BAT amounted to EUR 1 826 million at 31 March 2021 (31 March 2020: EUR 1 802 million), being some 33.9 per cent of Reinet's NAV. The increase in value reflects the increase in the BAT share price on the London Stock Exchange from GBP 27.57 at 31 March 2020 to GBP 27.74 at 31 March 2021 together with the strengthening of sterling against the euro during the year.

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

OTHER LISTED INVESTMENTS

Other listed investments comprised: 


                              31 March 2021 31 March 2020 
                              EUR m           EUR m 
SPDR Gold shares              32            31 
Selecta Biosciences, Inc.     5             3 
Soho China Limited            12            22 
Twist Bioscience Corporation  47            16 
                              96            72

SPDR GOLD SHARES

SPDR Gold shares ('GLD') is the largest physically backed gold exchange traded fund in the world. Over the long term, gold can provide a hedge against inflation and offer some protection against value changes in turbulent economic and political times.

Reinet holds 230 000 shares with a market value of EUR 32 million as at 31 March 2021 (31 March 2020: EUR 31 million). The increase in value reflects the increase in the value of gold offset by the weakening of the US dollar against the euro during the year.

Further information on GLD is available at www.spdrgoldshares.com/usa.

SELECTA BIOSCIENCES, INC.

Selecta Biosciences, Inc. ('Selecta'), is a clinical-stage biopharmaceutical company using proprietary synthetic vaccine particle technology to discover and develop targeted therapies that are designed to modulate the immune system to effectively and safely treat rare and serious diseases.

Selecta is also a portfolio company of NanoDimension funds, pre and post the initial public offering.

Reinet holds 1 395 480 shares with a market value of EUR 5 million as at 31 March 2021 (31 March 2020: EUR 3 million). The increase in value is due to the increase in the share price offset by the weakening of the US dollar against the euro during the year.

Further information on Selecta is available at www.selectabio.com.

SOHO CHINA LIMITED

Soho China Limited ('Soho') is a Chinese office developer focused on developing and leasing properties in the central business districts of Beijing and Shanghai. Soho developments are known for their modern architecture, with designs from architects such as Zaha Hadid and Japanese architect Kengo Kuma. The company has developed over five million square metres of commercial properties in China.

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