Reinet Investments S C A : Management Statement for the third quarter ended 31 December 2021

COMPANY ANNOUNCEMENT FOR IMMEDIATE RELEASE

25 JANUARY 2022

MANAGEMENT STATEMENT FOR THE THIRD QUARTER ENDED 31 DECEMBER 2021

The Board of Reinet Investments Manager S.A. announces the results of Reinet Investments S.C.A. for the quarter ended 31 December 2021.

Key financial data

• Reinet's net asset value of € 5.2 billion, reflects a compound growth of 8.8 per cent per annum in euro terms, since March 2009, including dividends paid
• The net asset value at 31 December 2021 reflects an increase of € 375 million or 7.8 per cent from € 4 782 million at 30 September 2021
• Net asset value per share at 31 December 2021: € 27.98 (30 September 2021: € 25.95)
• New commitments totalling € 41 million in respect of new and existing investments were made during the period, and a total of € 76 million funded
• Dividends from British American Tobacco during the period amounted to € 61 million

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 Reinet Investments S.C.A. (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.

Reinet Investments S.C.A.

R.C.S. Luxembourg B 16 576

Legal Entity Identifier : 222100830RQTFVV22S80

Registered office: 35, boulevard Prince Henri, L-1724 Luxembourg, Tel. [phone], Fax [phone]

Email: [e-mail], website: www.reinet.com

BUSINESS OVERVIEW

Net asset value

The net asset value ('NAV') at 31 December 2021 and 30 September 2021

comprised:
	31 December 2021	30 September 2021
	€ m	%		€ m	%
Listed investments
British American Tobacco p.l.c.	1 570	30.4	1 464	30.6
Other listed investments	144	2.8	89	1.9
Unlisted investments
Pension Insurance Corporation Group Limited	2 303	44.7	2 223	46.5

Private equity and related partnerships	809	15.7	878	18.4
Trilantic Capital Partners	323	6.3	268	5.6

Fund IV, Fund V, Fund VI, TEP, TEP II, related general partners and management companies

TruArc Partners	156		3.0		206	4.3
Fund II, Fund III, Fund IV, co-investment
opportunities and management company

Asian private equity companies and portfolio
funds	231	4.5	258	5.4
Milestone China Opportunities funds, investment
holdings and management company	57		55
Prescient China funds and investment
management company	153		146
Grab Holdings Inc. (see 'other listed investments')	-		43
Asia Partners fund	21		14
Specialised investment funds	99	1.9	146	3.1
Vanterra C Change TEM and holding companies	-		17
NanoDimension funds and co-investment
opportunities	91		96
GAM Real Estate Finance Fund	1		3
Other fund investments	7		30
United States land development and mortgages	27	0.5	34	0.7
Diamond interests	19	0.4	15	0.3
Other investments	86	1.7	72	1.5
Total investments	4 958	96.2	4 775	99.9

Cash and liquid funds	349	6.8	188	3.9
Bank borrowings and derivatives
Borrowings	(142)	(2.8)	(141)	(2.9)
Net derivative assets	1	-	1	-
Other liabilities
Minority interest, fees payable and other liabilities,
net of other assets	(9)	(0.2)	(41)	(0.9)
Net asset value	5 157	100.0	4 782	100.0

All investments are held, either directly or indirectly, by Reinet Fund.

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INFORMATION RELATING TO CURRENT KEY INVESTMENTS AT 31 DECEMBER 2021

							Total
							realised
			Remaining				and
		Committed	committed	Invested	Realised	Current fair	unrealised
		amount(1)	amount(1)	amount(2)	proceeds(2)	value(1)	value(3)
		in millions	in millions	in millions	in millions	in millions	in millions
Listed investments
British American	EUR	-	-	1 739	3 131	1 570	4 701
Tobacco p.l.c.	GBP	-	-	1 418	2 621	1 319	3 940
Other listed investments	EUR	-	-	127	68	144	212
	USD	-	-	146	78	164	242
Unlisted investments
Pension Insurance
Corporation Group	EUR	-	-	1 309	-	2 303	2 303
Limited	GBP	-	-	1 107	-	1 935	1 935
Trilantic Capital Partners	EUR	606	158	451	490	323	813
Euro investment	EUR	86	19	67	146	35	181
US dollar investment(4)	USD	591	158	443	415	328	743
TruArc Partners	EUR	421	220	198	221	156	377
	USD	478	250	228	249	177	426
Asian private equity
companies and portfolio
funds
Milestone China
Opportunities funds,
investment holdings and	EUR	149	1	129	144	57	201
management company	USD	169	1	168	164	65	229
Prescient China funds
and investment	EUR	-	-	68	2	153	155
management company	USD	-	-	82	2	174	176
Asia Partners fund	EUR	22	7	14	-	21	21
	USD	25	8	17	-	24	24
Specialised investment
funds
Vanterra C Change TEM	EUR	-	-	53	20	-	20
and holding companies	USD	-	-	67	24	-	24
NanoDimension funds
and co-investment
opportunities	EUR	168	72	94	40	91	131
Euro investment	EUR	4	-	4	1	3	4
US dollar investment	USD	187	82	105	45	100	145
GAM Real Estate	EUR	119	33	87	89	1	90
Finance Fund	GBP	100	28	72	77	1	78
United States land
development and	EUR	188	4	160	53	27	80
mortgages	USD	214	5	209	60	31	91
Diamond interests	EUR	-	-	116	106	19	125
	ZAR	-	-	1 160	1 599	350	1 949

(1) Calculated using period end foreign exchange rates.

(2) Calculated using actual foreign exchange rates at transaction date.

(3) Total of realised proceeds and current fair value.

(4) The invested amount for Trilantic Capital Partners includes an initial payment of $ 10 million.

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PERFORMANCE

NET ASSET VALUE

The NAV comprises total assets less total liabilities, and equates to total equity under International Financial Reporting Standards. The increase in the NAV of € 375 million during the quarter reflects dividends received and receivable from British American Tobacco p.l.c. ('BAT') together with increases in the estimated fair value of certain investments including BAT, other listed investments, Pension Insurance Corporation Group Limited, Trilantic Capital Partners, TruArc Partners, Prescient China funds, Asia Partners and Diamond interests. Offsetting these increases are decreases in the fair value of NanoDimension funds. Details of the NAV and details of movements in key investments can be found on pages 2 and 3 of this report.

Reinet records its assets and liabilities in euro; the strengthening of sterling and the US dollar against the euro, offset by the weakening of the South African rand against the euro has resulted in an overall increase in the value of certain assets and liabilities in euro terms. Applying current period-end exchange rates to the September 2021 assets and liabilities would have resulted in an increase in the September 2021 NAV of some € 105 million.

SHARE BUYBACK PROGRAMME

During the period, the Company did not enter into new share buyback programmes and as a result there was no share buyback programme in progress at 31 December 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 € 173 million, plus transaction costs.

Details of each completed share buyback programme to date can be found in note 7 of the Reinet 2021 interim report.

All ordinary shares repurchased are held as treasury shares.

NET ASSET VALUE PER SHARE

The NAV per share 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 share price as quoted on the Luxembourg Stock Exchange increased by 0.6 per cent in the quarter from € 16.20 at 30 September 2021 to € 16.30 at 31 December 2021, with the highest trade being at € 17.00 during the quarter. The total shareholder return since inception (taking into account the initial price of € 7.1945 and including dividends paid) is 7.3 per cent per annum. The growth in NAV, including dividends paid, reflects an 8.8 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 December 2021 and 30 September 2021 were as follows:

	31 December 2021	30 September 2021
	ZAR	EUR	ZAR	EUR
Luxembourg	-	16.30	-	16.20
Euronext	-	16.10	-	16.30
Johannesburg	286.03	-	283.12	-

COVID-19

In March 2020, the World Health Organization classified the COVID-19 outbreak as a pandemic.

Reinet recognises that the long-term financial impact of COVID-19 may still be unknown. However, it 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 and discussions have taken place with fund managers to determine any significant changes in value and any impacts related to COVID-19. Future valuations will take into account any new impacts of COVID-19 which could affect the valuation of underlying unlisted investments.

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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 € 3.3 billion and at 31 December 2021 committed to provide further funding of € 497 million to its current investments. New commitments during the quarter under review amounted to € 41 million, and a total of € 76 million was funded during the quarter.

Major items impacting the NAV, significant changes in carrying value and new investments during the quarter under review are described below.

LISTED INVESTMENTS

BRITISH AMERICAN TOBACCO P.L.C.

The investment in 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.

During the quarter under review, dividend income recorded from BAT amounted to € 61 million (£ 52 million), being BAT's third 2021 interim dividend of € 30 million (£ 26 million), received in November 2021 together with the fourth interim dividend of some € 31 million (£ 26 million) with a record date of 24 December 2021. The fourth interim dividend will be paid on 9 February 2022 and has been included as a receivable in the NAV as at 31 December 2021.

Reinet holds 48.3 million shares in BAT, representing some 2.11 per cent of BAT's issued share capital. The value of Reinet's investment in BAT amounted to € 1 570 million at 31 December 2021, being some 30.4 per cent of the NAV (30 September 2021: € 1 464 million). The BAT share price on the London Stock Exchange increased from £ 26.04 at 30 September 2021 to £ 27.31 at 31 December 2021, together with the effect of sterling strengthening against the euro in the quarter resulting in a total increase in value of € 106 million.

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

OTHER LISTED INVESTMENTS

As at 31 December 2021 and 30 September 2021, other listed investments comprised:

	31 December 2021	30 September 2021
	€ m	€ m
SPDR Gold shares	35	32
Selecta Biosciences, Inc.	4	5
Soho China Limited	9	11
Twist Bioscience Corporation	30	41
Grab Holdings Limited	66	-
	144	89

Twist Bioscience Corporation

Reinet holds 444 497 shares in Twist Bioscience Corporation with a market value of € 30 million (30 September 2021:

• 41 million). The decrease in value reflects the decrease in the share price during the quarter offset by the strengthening of the US dollar against the euro in the quarter.

Further information on Twist is available at www.twistbioscience.com.

Grab Holdings Limited

In December 2021, Grab Holdings Inc. merged with Altimeter Growth Corp, a NASDAQ listed special-purpose acquisition company launched by Altimeter Capital, a US investment firm, and following this merger (business combination) Reinet received Class A Ordinary Shares of Grab Holdings Limited ('Grab'). As a consequence, shares in Grab now trade on the NASDAQ under the ticker symbol 'GRAB'.

Following the merger, Reinet reclassified its previously unlisted holding in Grab from 'Asian private equity companies and portfolio funds' to 'other listed investments'.

In July 2018, Reinet invested € 43 million ($ 50 million) in Grab. As at 31 December 2021, Reinet holds 10 573 666 shares with a market value of € 66 million ($ 75 million) (30 September 2021: € 43 million).

Further information on Grab is available at www.grab.com.

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