EQS Group-Ad-hoc: Reinet Investments SCA / Key word(s): Annual Results 
CONSOLIDATED AUDITED FINANCIAL RESULTS FOR THE YEAR ENDED 31 MARCH 2021 AND PROPOSED DIVIDEND 
25-May-2021 / 07:31 CET/CEST 
Release of an ad hoc announcement pursuant to Art. 53 KR 
The issuer is solely responsible for the content of this announcement. 
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The Board of Reinet Investments Manager S.A. announces the results of Reinet Investments S.C.A. for the year ended 31 
March 2021. 
 
 
  Key financial data 
  . Reinet's net asset value of EUR 5.4 billion reflects a compound growth of 9.7 per cent per annum in euro terms, since 
    March 2009, including dividends paid 
  . The net asset value at 31 March 2021 reflects an increase of EUR 981 million or 22.3 per cent from EUR 4 403 million at 
    31 March 2020 
  . Net asset value per share at 31 March 2021: EUR 29.21 (31 March 2020: EUR 23.89) 
  . Commitments totalling EUR 187 million in respect of new and existing investments were made during the year, and a 
    total of EUR 404 million funded during the year, including EUR 330 million in respect of Pension Insurance Corporation 
    Group Limited 
  . Following the additional investment, Pension Insurance Corporation Group Limited is the largest value asset as at 
    31 March 2021 
  . Dividends from British American Tobacco during the year amounted to EUR 132 million 
  . Reinet dividend of some EUR 35 million, or EUR 0.19 per share (excluding treasury shares held), paid during the year 
  . Proposed Reinet dividend of EUR 0.25 per share payable after the 2021 annual general meeting

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'), a specialised investment fund also incorporated in Luxembourg. The Company's ordinary shares are listed on the Luxembourg Stock Exchange, Euronext Amsterdam and the Johannesburg Stock Exchange; the listing on the Johannesburg Stock Exchange is a secondary listing. The Company's ordinary shares are included in the 'LuxX' index of the principal shares traded on the Luxembourg Stock Exchange. The Company and Reinet Fund together with Reinet Fund's subsidiaries are referred to as 'Reinet'.

Cautionary statement regarding forward-looking statements

This document contains forward-looking statements which reflect the current views and beliefs of the Company, as well as assumptions made by the Company and information currently available. 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. The Company does not undertake to update, nor does it have any obligation to provide updates or to revise, any forward-looking statements. Certain information included in the Management Report is text attributed to the management of investee entities. While no facts have come to our attention that lead us to conclude that any such information is inaccurate, we have not independently verified such information and do not assume any responsibility for the accuracy or completeness of such information.

CHAIRMAN'S COMMENTARY

Dear Shareholder,

Over one year ago, in March 2020, the World Health Organisation classified the COVID-19 outbreak as a pandemic. As a result, significant levels of market uncertainty followed. Governments have undertaken massive borrowings and central banks have funded these. As of March 2021, stock markets have rallied significantly and most are now at or above pre-COVID-19 levels. However, many are concerned that inflation, for so long subdued, will return. Inevitably, the fair value of Reinet's investments will continue to be influenced by these factors.

During the past year, Reinet has strived to protect the health and safety of colleagues and their families, business associates and other stakeholders whilst continuing to attend to business as usual. Remote working has been in place across all of Reinet's office locations and I am grateful to all of my colleagues at Reinet and in our investee companies for their continued support during this challenging time.

Overview

During the past year, we continued to rebalance Reinet's portfolio, with over EUR 400 million invested in existing assets and new opportunities, including an additional EUR 330 million in Pension Insurance Corporation. Reinet also sold 2 million British American Tobacco shares for proceeds of EUR 65 million (GBP 56 million). As a result of the above transactions Pension Insurance Corporation is now the largest investment by value at 51.2 per cent of net asset value with the investment in British American Tobacco representing 33.9 per cent of net asset value.

Since its inception in 2008, Reinet has invested some EUR 3.1 billion in new investments and generated an annual return of 7.9 per cent for its investors based on the listed share price, with the underlying net asset value increasing at a rate of 9.7 per cent per annum.

Reinet increased its borrowings by some EUR 203 million during the year, increasing available liquidity and ensuring Reinet is well placed to take advantage of new investment opportunities as they arise.

Results

At 31 March 2021, Reinet's net asset value amounted to EUR 5.4 billion, an increase of EUR 981 million or 22.3 per cent from 31 March 2020. This reflects the increase in value of many underlying investments, in particular the increase in value of Pension Insurance Corporation after adjusting for the additional investment, the increase in the share price of British American Tobacco from GBP 27.57 at 31 March 2020 to GBP 27.74 at 31 March 2021, dividends received and receivable of EUR 132 million from British American Tobacco, together with the strengthening of sterling against the euro in the year. Offsetting these increases are decreases in the estimated fair value of certain investments including derivative assets and the impact of the US dollar weakening against the euro during the year.

Business developments

Pension Insurance Corporation continues to grow, writing some GBP 5.6 billion of new business in 2020, assets under management increasing to GBP 49.6 billion, with policyholders increasing to over 273 500. Notwithstanding the significantly increased credit risk during the year, Pension Insurance Corporation maintained the quality of its substantial credit portfolio. In May and October 2020, Pension Insurance Corporation issued GBP 300 million and GBP 400 million respectively of Tier 2 subordinated notes with Fitch reaffirming its Insurer Financial Strength rating at A+ (Strong) and Long-Term Issuer Default rating at A.

The investment in British American Tobacco consists of some 56 million shares following the sale of a further 2 million shares during the year at an average price of GBP 27.85 per share. British American Tobacco continued to deliver strong operational performance during 2020 despite foreign exchange headwinds impacting revenues; and declared a dividend of GBP 2.156 per share for 2021, an increase of 2.7 per cent from 2020. British American Tobacco continues to focus on reducing the health impact of the business by driving the development and customer acceptance of products which are considered to be less harmful.

The underlying investments of Reinet's private equity fund investments navigated through the significant pandemic-related customer demand, resource and supply chain impacts and, in most instances, have seen their business performance recover to, or increase above, prior levels.

Reinet committed some USD 25 million to the newly launched Asia Partners fund, which has a focus on the long-term growth potential of Southeast Asia and the rapid growth of innovative technology and technology-enabled businesses in the region. In addition, in 2018, Reinet invested some USD 50 million in Grab Holdings Inc. which provides access to affordable transport, food and package delivery, mobile payments and financial services in Southeast Asia. In April 2021, Grab announced its intention to list its shares in the US following a merger with US-listed Altimeter Growth Corp. This could be the largest-ever US equity offering by a Southeast Asian company.

During the year Reinet fully exited its investments in 36 South and related funds, sold some 25 per cent of the investment in Twist Bioscience and, in line with our stated strategy, will continue to look to further realise assets as appropriate opportunities present themselves.

No share buyback programmes were initiated during the year, taking a balanced view on the level of commitments to be funded and the level of uncertainty in the markets we invest in.

Dividend

The Board of Directors of Reinet Investments Manager S.A. proposes a dividend of EUR 0.25 per share, payable in September 2021. This represents a 31.6 per cent increase from last year.

Outlook

Global risk levels remain high. After record breaking global central bank support, prior to and during the pandemic, both equity and debt markets remains heavily supported by the availability of relatively cheap financing and the consequent mispricing of risk. Volatility can be expected as central bank programmes start to slow, the cost of funding to governments, corporates and individuals increases and the long-term economic effects and costs of the COVID pandemic become clearer.

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