Wrap Text
Consolidated unaudited financial results for the six-month period ended 30 September 2018
Reinet Investments S.C.A.
(Incorporated in Luxembourg)
ISIN: LU0383812293
Code: RNI
COMPANY ANNOUNCEMENT FOR IMMEDIATE RELEASE
CONSOLIDATED UNAUDITED FINANCIAL RESULTS FOR THE SIX-MONTH PERIOD ENDED 30 SEPTEMBER 2018
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 2018.
Key financial data
• Reinet's net asset value of EUR 4.8 billion, reflects a compound return of 11 per cent per annum in euro terms, since March 2009, including dividends paid
• The net asset value at 30 September 2018 reflects a decrease of EUR 286 million or 5.6 per cent from EUR 5 127 million at 31 March 2018
• Net asset value per share at 30 September 2018: EUR 24.71 (31 March 2018: EUR 26.17)
• Commitments totalling EUR 107 million in respect of new and existing investments were made during the period, and a total of EUR 146 million funded during the period
• Dividends from British American Tobacco during the period amounted to EUR 37 million
• Reinet dividend of some EUR 35 million, or EUR 0.18 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'), 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 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.
Reinet Investments S.C.A.
R.C.S. Luxembourg B 16 576
Registered office: 35, boulevard Prince Henri, L-1724 Luxembourg, Tel. (+352) 22 42 10, Fax (+352) 22 72 53
Email: info@reinet.com, website: www.reinet.com
BUSINESS OVERVIEW
The Company has determined that it meets the definition of an investment entity in terms of the amended International Financial Reporting Standards ('IFRS') 10. The net asset value and income statement included in this business overview have however been presented in a more comprehensive format than required by IFRS in order to provide readers with detailed information relating to the underlying assets and liabilities.
+------------------------------------------------------------------------------------------+
| Net asset value |
| The net asset value at 30 September 2018 comprised: |
+--------------------------------------------+---------------------------------------------+
| | 30 September 2018 31 March 2018 |
| +---------------------------------------------+
| | EUR m % EUR m % |
+--------------------------------------------+--------------+--------+--------------+------+
|Listed investments | | | | |
+--------------------------------------------+--------------+--------+--------------+------+
|British American Tobacco p.l.c. | 2 738| 56.6 | 3 198 | 62.4|
+--------------------------------------------+--------------+--------+--------------+------+
|Other listed investments | 70| 1.4| 26| 0.4|
+--------------------------------------------+--------------+--------+--------------+------+
| | | | | |
+--------------------------------------------+--------------+--------+--------------+------+
|Unlisted investments | | | | |
+--------------------------------------------+--------------+--------+--------------+------+
|Pension Insurance Corporation Group Limited | 1 428| 29.5| 1 305| 25.4|
+--------------------------------------------+--------------+--------+--------------+------+
| | | | | |
+--------------------------------------------+--------------+--------+--------------+------+
|Private equity and related partnerships | 728| 15.0| 736| 14.4|
+--------------------------------------------+--------------+--------+--------------+------+
|Trilantic Capital Partners | 194| 4.0| 180| 3.5|
|Fund IV, Fund V, Fund VI, TEP, TEP | | | | |
|II, related general partners | | | | |
|and management companies | | | | |
+--------------------------------------------+--------------+--------+--------------+------+
|36 South macro/volatility funds | 33| 0.7| 40| 0.8|
+--------------------------------------------+--------------+--------+--------------+------+
|Asian private equity companies | 168| 3.4| 177| 3.5|
|and portfolio funds | | | | |
+--------------------------------------------+--------------+--------+--------------+------+
|Milestone China Opportunities | 81| | 129| |
|funds, investment holdings and | | | | |
|management company participation | | | | |
+--------------------------------------------+--------------+--------+--------------+------+
|Prescient China Balanced Fund | 44| | 48| |
|and investment management company | | | | |
+--------------------------------------------+--------------+--------+--------------+------+
|Grab Holdings Inc. | 43| | -| |
+--------------------------------------------+--------------+--------+--------------+------+
|Specialised investment funds | 333| 6.9| 339| 6.6|
+--------------------------------------------+--------------+--------+--------------+------+
|Vanterra C Change TEM and holding companies | 24| | 24| |
+--------------------------------------------+--------------+--------+--------------+------+
|NanoDimension funds and | 40| | 54| |
|co-investment opportunities | | | | |
+--------------------------------------------+--------------+--------+--------------+------+
|Fountainhead Expert Fund | 18| | 17| |
+--------------------------------------------+--------------+--------+--------------+------+
|Snow Phipps funds | 119| | 90| |
|and co-investment opportunities | | | | |
+--------------------------------------------+--------------+--------+--------------+------+
|Palm Lane Credit Opportunities Fund | 20| | 85| |
+--------------------------------------------+--------------+--------+--------------+------+
|GAM Real Estate Finance Fund | 41| | 53| |
+--------------------------------------------+--------------+--------+--------------+------+
|Other fund investments | 71| | 16| |
+--------------------------------------------+--------------+--------+--------------+------+
|United States land development and mortgages| 85| 1.8| 83| 1.6|
+--------------------------------------------+--------------+--------+--------------+------+
|Diamond interests | 40| 0.8| 39| 0.8|
+--------------------------------------------+--------------+--------+--------------+------+
|Other investments | 64| 1.3| 59| 1.2|
+--------------------------------------------+--------------+--------+--------------+------+
|Total investments | 5 153| 106.4| 5 446| 106.2|
+--------------------------------------------+--------------+--------+--------------+------+
|Cash and liquid funds | 333| 6.9| 322| 6.3|
+--------------------------------------------+--------------+--------+--------------+------+
|Bank borrowings and derivatives | | | | |
+--------------------------------------------+--------------+--------+--------------+------+
|Borrowings | (642)| (13.3)| (661)|(12.9)|
+--------------------------------------------+--------------+--------+--------------+------+
|Net derivative assets/(liabilities) | 73| 1.5| 52| 1.0|
+--------------------------------------------+--------------+--------+--------------+------+
|Other liabilities | | | | |
+--------------------------------------------+--------------+--------+--------------+------+
|Minority interest, fees payable and other | (76)| (1.5)| (32)| (0.6)|
|liabilities, net of other assets | | | | |
+--------------------------------------------+--------------+--------+--------------+------+
|Net asset value | 4 841| 100.0| 5 127| 100.0|
+--------------------------------------------+--------------+--------+--------------+------+
All investments are held, either directly or indirectly, by Reinet Fund.
INFORMATION RELATING TO CURRENT KEY INVESTMENTS
+---------------------------------------+------------+------------+------------+------------+------------+--------------+
| | | | | | |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 Tobacco p.l.c. EUR| -| -| 1 739| 1 937| 2 738| 4 675|
+---------------------------------------+------------+------------+------------+------------+------------+--------------+
| GBP| -| -| 1 418| 1 596| 2 439| 4 035|
+---------------------------------------+------------+------------+------------+------------+------------+--------------+
|Other listed investments EUR| 26| -| 73| -| 70| 70|
+---------------------------------------+------------+------------+------------+------------+------------+--------------+
| USD| 30| -| 85| -| 81| 81|
+---------------------------------------+------------+------------+------------+------------+------------+--------------+
|Unlisted investments | | | | | | |
+---------------------------------------+------------+------------+------------+------------+------------+--------------+
|Pension Insurance Corporation EUR| 612| -| 663| -| 1 428| 1 428|
+---------------------------------------+------------+------------+------------+------------+------------+--------------+
|Group Limited GBP| 545| -| 545| -| 1 272| 1 272|
+---------------------------------------+------------+------------+------------+------------+------------+--------------+
|Trilantic Capital Partners EUR| 540| 247| 304| 378| 194| 572|
+---------------------------------------+------------+------------+------------+------------+------------+--------------+
|Euro investment EUR| 87| 20| 67| 116| 48| 164|
+---------------------------------------+------------+------------+------------+------------+------------+--------------+
|US dollar investment(4) USD| 526| 264| 271| 321| 169| 490|
+---------------------------------------+------------+------------+------------+------------+------------+--------------+
|36 South macro/volatility funds EUR| 93| -| 93| 11| 33| 44|
+---------------------------------------+------------+------------+------------+------------+------------+--------------+
|Euro investment EUR| 88| -| 88| 11| 29| 40|
+---------------------------------------+------------+------------+------------+------------+------------+--------------+
|US dollar investment USD| 6| -| 6| -| 4| 4|
+---------------------------------------+------------+------------+------------+------------+------------+--------------+
|Asian private equity companies | | | | | | |
|and portfolio funds | | | | | | |
+---------------------------------------+------------+------------+------------+------------+------------+--------------+
|Milestone China Opportunities funds, | | | | | | |
|investment holdings and | | | | | | |
+---------------------------------------+------------+------------+------------+------------+------------+--------------+
|management company EUR| 109| 6| 133| 70| 81| 151|
+---------------------------------------+------------+------------+------------+------------+------------+--------------+
|participation USD| 126| 7| 172| 72| 93| 165|
+---------------------------------------+------------+------------+------------+------------+------------+--------------+
|Prescient China Balanced Fund | | | | | | |
+---------------------------------------+------------+------------+------------+------------+------------+--------------+
|and investment management EUR| 28| -| 25| -| 44| 44|
+---------------------------------------+------------+------------+------------+------------+------------+--------------+
|company USD| 32| -| 32| -| 52| 52|
+---------------------------------------+------------+------------+------------+------------+------------+--------------+
|Grab Holdings Inc. EUR| 43| -| 43| -| 43| 43|
+---------------------------------------+------------+------------+------------+------------+------------+--------------+
| USD| 50| -| 50| -| 50| 50|
+---------------------------------------+------------+------------+------------+------------+------------+--------------+
|Specialised investment funds | | | | | | |
+---------------------------------------+------------+------------+------------+------------+------------+--------------+
|Vanterra C Change TEM and EUR| 61| 5| 52| 1| 24| 25|
+---------------------------------------+------------+------------+------------+------------+------------+--------------+
|holding companies USD| 71| 6| 65| 1| 28| 29|
+---------------------------------------+------------+------------+------------+------------+------------+--------------+
|NanoDimension funds and | | | | | | |
+---------------------------------------+------------+------------+------------+------------+------------+--------------+
|co-investment opportunities EUR| 86| 31| 54| 18| 40| 58|
+---------------------------------------+------------+------------+------------+------------+------------+--------------+
|Euro investment EUR| 4| -| 4| 1| 3| 4|
+---------------------------------------+------------+------------+------------+------------+------------+--------------+
|US dollar investment USD| 96| 36| 60| 20| 43| 63|
+---------------------------------------+------------+------------+------------+------------+------------+--------------+
|Fountainhead Expert Fund EUR| 34| 17| 15| -| 18| 18|
+---------------------------------------+------------+------------+------------+------------+------------+--------------+
| USD| 40| 20| 20| -| 21| 21|
+---------------------------------------+------------+------------+------------+------------+------------+--------------+
|Snow Phipps funds and EUR| 130| 42| 88| 4| 119| 123|
+---------------------------------------+------------+------------+------------+------------+------------+--------------+
|co-investment opportunities USD| 151| 49| 102| 5| 139| 144|
+---------------------------------------+------------+------------+------------+------------+------------+--------------+
|Palm Lane Credit Opportunities EUR| 60| -| 54| 71| 20| 91|
+---------------------------------------+------------+------------+------------+------------+------------+--------------+
|Fund USD| 70| -| 70| 83| 23| 106|
+---------------------------------------+------------+------------+------------+------------+------------+--------------+
|GAM Real Estate Finance Fund EUR| 112| 34| 54| 48| 41| 89|
+---------------------------------------+------------+------------+------------+------------+------------+--------------+
| GBP| 100| 30| 70| 41| 36| 77|
+---------------------------------------+------------+------------+------------+------------+------------+--------------+
|United States land development EUR| 185| 4| 159| -| 85| 85|
+---------------------------------------+------------+------------+------------+------------+------------+--------------+
|and mortgages USD| 215| 5| 210| -| 99| 99|
+---------------------------------------+------------+------------+------------+------------+------------+--------------+
|Diamond interests(5) EUR| 75| 3| 116| 82| 40| 122|
+---------------------------------------+------------+------------+------------+------------+------------+--------------+
| ZAR| 1 230| 40| 1 190| 1 201| 651| 1 852|
+---------------------------------------+------------+------------+------------+------------+------------+--------------+
(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 USD 10 million.
(5) The exposure to the South African rand has been partially hedged by a forward exchange contract and borrowings in this currency.
PERFORMANCE
NET ASSET VALUE
The net asset value ('NAV') comprises total assets less total liabilities, and equates to total equity under IFRS. The decrease in the net asset value of EUR 286 million during the period is mainly due to the decrease in value of the investment in British American Tobacco p.l.c. and the payment of a dividend to shareholders. Offsetting these decreases are the receipt of dividends from British American Tobacco p.l.c. in the period, an increase in the value of Pension Insurance Corporation Group Limited and an increase in the value of the derivative asset associated with the loan financing.
The Company records its assets and liabilities in euro; the fluctuation in value of other currencies against the euro has resulted in an overall decrease in the value of certain assets and liabilities in euro terms. Applying current period-end exchange rates to the March 2018 assets and liabilities would have resulted in a decrease in value of some EUR 6 million.
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 2.3 billion and at 30 September 2018 committed to provide further funding of EUR 423 million to its current investments. Details of the funding commitments outstanding are given in the table below of this report. New commitments during the period under review amounted to EUR 107 million, and a total of EUR 146 million was funded during the period.
Major items impacting the NAV, significant changes in carrying value and new investments during the period under review are described below.
LISTED INVESTMENTS
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.
During the period under review, dividend income from BAT amounted to EUR 37 million (GBP 33 million), being BAT’s second 2018 interim dividend received in August 2018. The first 2018 interim dividend of EUR 38 million (GBP 33 million) was received in May 2018 and was recorded as a receivable in Reinet's March 2018 results. No amount has been recorded as receivable as at 30 September 2018 as the next dividend record date is in October 2018.
Reinet holds 68.1 million shares in BAT, representing some 2.97 per cent of BAT's issued share capital. The value of Reinet's investment in BAT amounted to EUR 2 738 million at 30 September 2018, being some 56.6 per cent of Reinet's NAV (31 March 2018: EUR 3 198 million). The BAT share price on the London Stock Exchange decreased from GBP 41.310 at 31 March 2018 to GBP 35.845 at 30 September 2018, resulting in a decrease in value of EUR 418 million; the carrying value is also impacted by the weakening of sterling against the euro during the period, the effect of which amounts to some EUR 42 million.
The BAT share price has recently decreased substantially. The tobacco industry is currently impacted by the US Food and Drug Administration's continued regulation efforts and the transformation strategies of industry players seeking to enhance their new generation products. Reinet continues to take comfort from the underlying financial results, strong dividends and future prospects of BAT, including the investment in Reynolds American Inc., decreased US tax rates and increased focus on next generation products.
Further information on BAT is available at www.bat.com/annualreport.
OTHER LISTED INVESTMENTS
In the period under review, Reinet received listed shares in Soho China Limited and Li-Ning Company Limited following a distribution of assets from a Milestone related investment holding company.
As at 30 September 2018, other listed investments comprise the following:
SPDR GOLD SHARES
In 2015, Reinet invested EUR 22 million in SPDR Gold shares ('GLD'), 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 22 million as at 30 September 2018 (31 March 2018: EUR 23 million).
Further information on GLD is available at www.spdrgoldshares.com.
SELECTA BIOSCIENCES, INC.
In June 2016, Reinet invested EUR 4 million in Selecta Biosciences, Inc., ('Selecta') in its initial public offering on the Nasdaq.
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 350 000 shares with a market value of EUR 5 million as at 30 September 2018 (31 March 2018: EUR 3 million).
Further information on Selecta is available at www.selectabio.com.
SOHO CHINA LIMITED
In August 2018, Reinet received 47 million shares of Soho China Limited, ('Soho') with a value of EUR 16 million following a distribution of assets from a Milestone related investment holding company.
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 meters of commercial properties. Soho 3Q, a growing offering within Soho, is a flexible office co-working environment, with over 30 000 seats in 31 centers.
Reinet holds 47 million shares with a market value of EUR 16 million as at 30 September 2018.
Further information on Soho is available at www.sohochina.com.
LI-NING COMPANY LIMITED
In August 2018, Reinet received some 34 million shares of Li-Ning Company Limited, ('Li-Ning') with a value of EUR 31 million following a distribution of assets from a Milestone related investment holding company.
Li-Ning is one of the leading sports brand companies in China, mainly providing sporting goods including footwear, apparel, equipment and accessories for professional and leisure purposes primarily under the Li-Ning brand. Headquartered in Beijing, the group has brand marketing, research and development, design, manufacturing, distribution and retail capabilities. It has established an extensive supply chain management system and a retail distribution network in China.
Reinet holds some 34 million shares with a market value of EUR 27 million as at 30 September 2018.
Further information on Li-Ning is available at www.lining.com.
UNLISTED INVESTMENTS
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 reports and valuations provided by third-party experts. Valuation methodologies applied include the net asset value of investment funds, discounted cash flow models and comparable valuation multiples, as appropriate.
PENSION INSURANCE CORPORATION GROUP LIMITED
Pension Insurance Corporation Group Limited’s ('Pension Corporation') wholly-owned subsidiary, Pension Insurance Corporation plc ('Pension Insurance Corporation'), is a specialist insurer of UK defined benefit pension funds. Pension Insurance Corporation provides tailored pension insurance buyouts and buy-ins to the trustees and sponsors of UK defined benefit pension funds. Pension Insurance Corporation provides secure and stable retirement income for its policyholders through market-leading customer service, comprehensive risk management and excellence in asset and liability management.
In the first six months of 2018, Pension Insurance Corporation wrote new pension insurance business with record premiums of GBP 3.3 billion up from GBP 1.9 billion in the first half of 2017. It reported profits before tax of GBP 123 million (2017: GBP 140 million), post-tax profits of GBP 99 million (2017: GBP 115 million) and a solvency capital ratio of 175 per cent (December 2017: 160 per cent).
Pension Insurance Corporation's new business pipeline in 2018 remains strong, with estimated new business premiums of over GBP 4 billion in 2018 to date, the largest deals transacted being with the Siemens Benefits Scheme at GBP 1.3 billion, the PA Pension Scheme at GBP 850 million and the BHS2 Pension Scheme at GBP 800 million. Pension Insurance Corporation continues to source and invest in secure, long-term bilateral debt to support the payment of pensions over the life of its policyholders. Notable new investments announced during 2018 include Halton Housing, University Partnerships Programme, The Mercer's Company, Phoenix Community Housing and Accord Housing Association, totalling more than GBP 310 million.
In May 2018, Pension Insurance Corporation entered into its sixth longevity reinsurance transaction since 2015 with Prudential Insurance Company of America who have reinsured an additional GBP 0.9 billion of longevity risk. In September 2018, Pension Corporation also issued GBP 350 million Tier 2 debt to support the further development and growth of the business.
In the current period, Reinet acquired additional shares from other Pension Corporation shareholders for an amount of GBP 6.3 million. As a result, Reinet owns 43.72 per cent of Pension Corporation, up from 43.45 per cent at 31 March 2018.
Reinet's investment in Pension Corporation is carried at an estimated fair value of EUR 1 428 million at 30 September 2018 (31 March 2018: EUR 1 305 million). This value takes into account Pension Corporation’s embedded value at 30 June 2018 of GBP 3.4 billion (31 December 2017: GBP 2.9 billion), valuation multiples drawn from industry data at 30 September 2018 and a discount of 10 per cent which takes into account the relatively illiquid nature of Reinet's investment.
The increase in the estimated fair value is due to the increase in Pension Corporation's embedded value which reflects new business written during the period, changes with respect to the cost of non-hedgeable risks and also bringing the embedded value basis in line with CMI2016, a more updated mortality basis reflecting recent mortality trends in the UK, and the effect of changing economic variables. This is offset by a 5 per cent decrease in comparable company valuation multiples derived from public information relating to listed companies in the UK insurance sector. The increase in estimated fair value is reduced by the weakening of sterling against the euro in the period.
Further information on Pension Corporation is available at www.pensioncorporation.com.
PRIVATE EQUITY AND RELATED PARTNERSHIPS
TRILANTIC CAPITAL PARTNERS
Trilantic Capital Partners ('Trilantic') is composed of Trilantic North America and Trilantic Europe, two separate and independent private equity investment advisors focused on making controlling and significant minority interest investments in companies in their respective geographies. Trilantic North America primarily targets investments in the business services, consumer and energy sectors, and currently manages six funds. Trilantic Europe primarily targets investments in the industrials, consumer and leisure, telecommunication, media and technology, business services and healthcare sectors, and currently manages two funds.
Reinet and its minority partner invest in certain of the Trilantic general partnerships and management companies (together 'Trilantic Management') and six of the eight current funds under Trilantic's management. The terms of investment applicable to Reinet's investment in the Trilantic funds provide that Reinet will not pay any management fees or carried interest. In addition, Reinet receives a share of the carried interest payable on the realisation of investments held in the funds, once a hurdle rate has been achieved.
Trilantic Capital Partners IV L.P. and Trilantic Capital Partners IV (Europe) L.P. are in the process of realising value from underlying investments. In the period under review, distributions of EUR 2 million were received (30 September 2017: EUR 1 million).
Trilantic Capital Partners V (North America) L.P. and Trilantic Energy Partners (North America) L.P., completed their investment period in June 2018 with Reinet making capital contributions of some EUR 4 million and receiving distributions of some EUR 27 million in the period under review. These US-based funds are focused on North American opportunities with Trilantic Energy Partners (North America) L.P. being especially focused on the oil and gas sector.
As at 30 September 2018, Reinet had committed EUR 23 million (USD 27 million) to Trilantic Energy Partners II (North America) L.P. ('TEP II') and its general partner, and EUR 190 million (USD 220 million) to Trilantic Capital Partners VI (North America) L.P. ('Fund VI') and its general partner. TEP II had its first closing in August 2017 and Fund VI had its first closing in December 2017; each fund expects further closings in the coming months, at which time Reinet's commitment will increase in line with the overall fund size. Reinet made some EUR 27 million of capital contributions during the period. As at 30 September 2018, TEP II and Fund VI had made two investments each.
Reinet's and its minority partners' investment in Trilantic Management and all the above funds is carried at the estimated fair value of EUR 194 million at 30 September 2018 (31 March 2018: EUR 180 million) of which EUR 4 million (31 March 2018: EUR 7 million) is attributable to minority partners. The estimated fair value is based on unaudited valuation data provided by Trilantic Management at 30 June 2018, adjusted for changes in the value of listed investments included in the portfolios. The increase in the estimated fair value is due to net capital contributions of EUR 18 million together with increases in the estimated fair value of underlying investments, offset by the realisation of certain investments.
During the period under review, gains of EUR 16 million (30 September 2017: EUR 22 million) and carried interest of EUR 15 million (30 September 2017: EUR nil) were realised.
Further information on Trilantic is available at www.trilantic.com.
ASIAN PRIVATE EQUITY COMPANIES AND PORTFOLIO FUNDS
Milestone China Opportunities funds, investment holdings and management company participation
Reinet has invested along with Milestone Capital in a management company based in Shanghai, and has also invested in certain funds and investment companies managed by Milestone Capital (together 'Milestone').
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; biopharmaceutical manufacturers; medical device manufacturers; food and beverage distribution; brands covering sportswear and apparel; big data services; e-commerce; power generation equipment; retail pharmacies and online education.
The investment in Milestone is held at the estimated fair value of EUR 81 million (31 March 2018: EUR 129 million) based on unaudited financial information provided by Milestone Capital at 30 June 2018 adjusted for movements in listed investments and cash movements up to 30 September 2018.
The change in estimated fair value reflects capital repayments of EUR 47 million in the period. The repayments were made in the form of a distribution of existing holdings of shares in Soho and Li-Ning, these shares are now included in 'Other listed investments' with a value of EUR 43 million and are shown above.
Further information on Milestone Capital and Milestone funds is available at www.mcmchina.com.
Grab Holdings Inc.
Grab Holdings Inc ('Grab'), is one of the most frequently used mobile platforms in Southeast Asia. Grab provides access to safe and affordable transport, food and package delivery, mobile payments and financial services. Grab currently offers services in Singapore, Indonesia, the Philippines, Malaysia, Thailand, Vietnam, Myanmar and Cambodia.
In July 2018, Reinet invested EUR 43 million (USD 50 million) in Grab. At 30 September 2018, the investment in Grab is held at the estimated fair value of EUR 43 million.
Further information on Grab is available at www.grab.com.
SPECIALISED INVESTMENT FUNDS
NanoDimension funds and co-investment opportunities
Reinet is a limited partner in NanoDimension I, II and III limited partnerships ('NanoDimension'). The focus of each fund is to invest in and support the establishment, technology development and scale up, growth and commercialisation of companies leveraging the advancement of new atomic and molecular structures. Product applications range from molecular diagnostics, immuno-oncology, immuno-tolerance, organs on chip, DNA synthesis to energy storage and electrochromic glass.
At 30 September 2018, the estimated fair value of Reinet's investment in the three funds and co-investments amounted to EUR 40 million (31 March 2018: EUR 54 million). The estimated fair value is based on unaudited valuation data received from the fund manager as at 30 June 2018, together with an independent valuation of the co-investments. The decrease in estimated fair value reflects capital distributions of some EUR 17 million during the period following the successful sale of the investment in ARMO by NanoDimension II, offset by increases in the value of underlying investments and the strengthening of the US dollar against the euro in the period.
Further information on NanoDimension is available at www.nanodimension.com.
Snow Phipps funds and co-investment opportunities
Snow Phipps Group ('Snow Phipps') is a private equity firm focused on lower middle-market control investments. Snow Phipps seeks to invest USD 50 million to USD 150 million of equity in market-leading companies primarily headquartered in North America with enterprise values between USD 100 million and USD 500 million. Snow Phipps implements a strategy of creating long-term capital appreciation through active operational management of its portfolio companies. By utilising its engaged operational approach, Snow Phipps is able to execute transactions involving corporate carve-outs, generational and management change, and add-on acquisition strategies. Snow Phipps primarily targets investments in the industrial, consumer and business services sectors, and currently manages three private equity funds with aggregate capital commitments of USD 2.4 billion.
Reinet invests as a limited partner in Snow Phipps II, L.P., Snow Phipps III, L.P. and currently in four co-investment opportunities alongside Snow Phipps III, L.P.
Reinet’s investment in the two funds and associated co-investments is carried at an estimated fair value of EUR 119 million at 30 September 2018 (31 March 2018: EUR 90 million), based on unaudited valuation data provided by Snow Phipps at 30 June 2018. The increase in value being due to additional capital invested and an increase in the estimated fair value of underlying investments in the period.
Further information on Snow Phipps is available at www.snowphipps.com
Palm Lane Credit Opportunities Fund
Palm Lane Credit Opportunities Fund (Cayman) Ltd. ('Palm Lane Credit Opportunities Fund') (previously JPS Credit Opportunities Fund (Cayman) Ltd.), focuses on liquid opportunities in the credit markets. Palm Lane Credit Opportunities Fund is managed by JP Morgan Asset Management.
Palm Lane Credit Opportunities 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.
During the period under review, the fund manager made the decision to liquidate the fund and began the process of returning all capital to investors. Reinet has received repayments of EUR 71 million (USD 83 million) and expects to receive the balance of funds before the end of 2018.
As at 30 September 2018, the investment is carried at the estimated fair value of EUR 20 million (31 March 2018: EUR 85 million) based on the valuation at that date provided by the fund manager.
GAM Real Estate Finance Fund
The GAM Real Estate Finance Fund ('REFF') 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. Its investment strategy focuses on the origination of commercial real estate loans primarily in Western Europe, and with a primary focus on the UK. At June 2018, REFF held 14 investments.
The investment is carried at the estimated fair value of EUR 41 million at 30 September 2018 (31 March 2018: EUR 53 million) based on unaudited valuation data provided by the fund manager at 30 June 2018.
The decrease in estimated fair value is mainly due to repayments of capital amounting to EUR 11 million (GBP 10 million) in the period, mostly owing to early settlement of loans, together with the weakening of sterling against the euro in the period.
Other fund investments
Other fund investments include small, specialist funds investing in private equity businesses, property and start-up ventures.
Other fund investments are valued in total at their estimated fair value of EUR 71 million at 30 September 2018 based on valuation statements received from the fund managers (31 March 2018: EUR 16 million).
Included in this section is a limited partner investment in RLG Real Estate Partners L.P. ('RLG'), a property fund which is managed by a subsidiary of Compagnie Financière Richemont SA. RLG invests in and develops real estate properties, including luxury brand retail developments situated in prime locations throughout the world.
Reinet's investment in RLG is carried at an estimated fair value of EUR 63 million at 30 September 2018 (31 March 2018: EUR 6 million). The movement in value is due to additional capital invested in the period.
Further information on Reinet's investments may be found in the Reinet 2018 annual report which is available at www.reinet./investor-relations/reports.html.
COMMITTED FUNDS
Funding commitments are entered into in various currencies including sterling, US dollar and South African rand and are converted into euro using 30 September 2018 exchange rates.
The table below summarises Reinet's outstanding investment commitments at 30 September 2018.
+-----------------------------------------------+------------+------------+-----------+-----------+------------+---------+
| | | Exchange| Committed| Funded| 30| 30|
| | 31 March| rate| during the| during the| September|September|
| | 2018(1)| effects(2)| period(3)| period(3)| 2018(3)| 2018|
| | EUR m| EUR m| EUR m| EUR m| EUR m| %|
+-----------------------------------------------+------------+------------+-----------+-----------+------------+---------+
|Pension Insurance Corporation Group Limited | 1| -| 6| (7)| -| -|
+-----------------------------------------------+------------+------------+-----------+-----------+------------+---------+
|Private equity and related partnerships | | | | | | |
+-----------------------------------------------+------------+------------+-----------+-----------+------------+---------+
|Trilantic Capital Partners | | | | | | |
+-----------------------------------------------+------------+------------+-----------+-----------+------------+---------+
|Fund IV, Fund V, Fund VI, TEP, TEP | 212| 12| 52| (32)| 244| 57.8|
|II, related general partners | | | | | | |
|and management companies(4) | | | | | | |
+-----------------------------------------------+------------+------------+-----------+-----------+------------+---------+
|Asian private equity companies | | | | | | |
|and portfolio funds | | | | | | |
+-----------------------------------------------+------------+------------+-----------+-----------+------------+---------+
|Milestone China Opportunities funds, investment| 6| -| -| -| 6| 1.4|
|holdings and management company participation | | | | | | |
+-----------------------------------------------+------------+------------+-----------+-----------+------------+---------+
|Grab Holdings Inc. | -| -| 43| (43)| -| -|
+-----------------------------------------------+------------+------------+-----------+-----------+------------+---------+
|Specialised investment funds | | | | | | |
+-----------------------------------------------+------------+------------+-----------+-----------+------------+---------+
|Vanterra C Change TEM and holding companies | 5| -| -| -| 5| 1.2|
+-----------------------------------------------+------------+------------+-----------+-----------+------------+---------+
|NanoDimension funds and | 32| 2| -| (3)| 31| 7.3|
|co-investment opportunities | | | | | | |
+-----------------------------------------------+------------+------------+-----------+-----------+------------+---------+
|Fountainhead Expert Fund | 16| 1| -| -| 17| 4.0|
+-----------------------------------------------+------------+------------+-----------+-----------+------------+---------+
|Snow Phipps funds | 41| 2| -| (1)| 42| 10.0|
|and co-investment opportunities | | | | | | |
+-----------------------------------------------+------------+------------+-----------+-----------+------------+---------+
|GAM Real Estate Finance Fund | 34| -| -| -| 34| 8.0|
+-----------------------------------------------+------------+------------+-----------+-----------+------------+---------+
|Other fund investments(5) | 89| -| 1| (57)| 33| 7.8|
+-----------------------------------------------+------------+------------+-----------+-----------+------------+---------+
|United States land development and mortgages | 2| -| -| 2| 4| 0.9|
+-----------------------------------------------+------------+------------+-----------+-----------+------------+---------+
|Diamond interests | 3| -| -| -| 3| 0.7|
+-----------------------------------------------+------------+------------+-----------+-----------+------------+---------+
|Other investments | 4| -| 5| (5)| 4| 0.9|
+-----------------------------------------------+------------+------------+-----------+-----------+------------+---------+
| | 445| 17| 107| (146)| 423| 100.0|
+-----------------------------------------------+------------+------------+-----------+-----------+------------+---------+
(1) Commitments calculated using 31 March 2018 exchange rates.
(2) Reflects exchange rate movements between 31 March 2018 and 30 September 2018.
(3) Amounts calculated using 30 September 2018 exchange rates.
(4) Commitments noted represent only Reinet's share of the investments at 30 September 2018, additional commitments payable by the minority partner amount to EUR 3 million in respect of Trilantic.
(5) Includes remaining commitment of up to EUR 32 million to RLG Real Estate Partners L.P.
CASH AND LIQUID FUNDS
Reinet holds cash on deposit principally in European-based banks and in liquidity funds holding highly rated short-term commercial paper.
Reinet's liquidity is measured by its ability to meet potential cash requirements, including unfunded commitments on investments and the repayment of borrowings, and can be summarised as follows:
Cash and liquid funds EUR 333 m
Undrawn borrowing facility EUR 281 m
Cash required for unfunded commitments (refer (EUR 423 m)
to table above)
Cash required to meet ZAR borrowing obligations (EUR 27 m)
The undrawn borrowing facility comprises a revolving facility with Bank of America, N.A. of GBP 250 million.
Medium-term bank borrowings of EUR 615 million will be settled by the exercise of put options over BAT shares or the proceeds of the sale of BAT shares, or may be rolled over or replaced by other borrowings or settled by available cash.
Reinet may sell further BAT shares or use such shares to secure additional financing facilities from time to time.
BANK BORROWINGS AND DERIVATIVES
BORROWINGS
During early 2017, Reinet entered into a GBP 500 million, medium-term financing arrangement with Merrill Lynch International, which runs to 2022. At 30 September 2018, the estimated fair value of the borrowing was EUR 555 million (GBP 494 million) (31 March 2018: EUR 561 million (GBP 493 million)). The GBP 500 million financing transaction includes the purchase by Reinet of put options over approximately 15.5 million BAT shares for a premium of some EUR 92 million (GBP 79 million) payable over the life of the transaction (the 'Premium Loan'). As at 30 September 2018, the Premium Loan is carried as a liability at an estimated fair value of EUR 60 million (GBP 54 million) (31 March 2018: EUR 70 million (GBP 61 million)). Some 4.1 million BAT shares have also been pledged to collateralise the Premium Loan and future interest payments. As part of the medium-term financing arrangement and Premium Loan a portion of BAT shares are on loan to Merrill Lynch International. Reinet retains the economic benefit of all shares on loan.
Reinet has also borrowed ZAR 443 million to fund its investments in South African projects. At 30 September 2018, the estimated fair value of the borrowing was EUR 27 million (31 March 2018: EUR 30 million), the decrease in the estimated fair value is due to the weakening of the South African rand against the euro in the period. This loan matures in March 2020.
DERIVATIVE ASSETS/(LIABILITIES) – OPTIONS AND FORWARD EXCHANGE CONTRACTS
As part of the aforementioned GBP 500 million medium-term financing arrangement, Reinet purchased put options which provide protection should the value of the BAT shares used to secure the borrowings fall below a certain amount. Proceeds received as a result of the put options being exercised could be used to repay the amounts borrowed in full. The put options are carried at their estimated fair value of EUR 73 million at 30 September 2018 (31 March 2018: EUR 54 million). The increase in the carrying value of the put options reflects the decrease in value of the underlying BAT shares offset by the decrease in the time to maturity, and the weakening of sterling against the euro in the period. The cost of the put options is considered as part of the overall cost of financing and is included in the fair value adjustment on outstanding contracts in the income statement below.
In the period under review, Reinet settled outstanding forward exchange contracts amounting to ZAR 230 million realising a loss of EUR 0.4 million. Reinet also entered into a new forward exchange contract to sell ZAR 230 million (31 March 2018: ZAR 230 million), which is carried at an estimated fair value of EUR 0.2 million (liability) at 30 September 2018 (31 March 2018: EUR 2 million (liability)).
Refer to page 51 of the Reinet 2018 annual report for a description of Reinet's policy on foreign exchange exposure.
OTHER LIABILITIES
MINORITY INTEREST, FEES PAYABLE AND OTHER LIABILITIES, NET OF OTHER ASSETS
The minority interest liability amounts to EUR 6 million (31 March 2018: EUR 7 million) and is in respect of minority partners’ share in the gains and losses not yet distributed to them arising from the estimated fair value movement of investments in which they have interests.
Fees payable and other liabilities comprise principally an accrual of EUR 20 million in respect of the management fee payable at 30 September 2018 (31 March 2018: EUR 23 million), a provision for deferred taxes of EUR 15 million (31 March 2018: EUR 11 million) relating to realised and unrealised gains arising from the investments in Trilantic and Snow Phipps, and withholding and corporate taxes of EUR 32 million (31 March 2018: EUR 28 million) relating to the investment in United States land development and mortgages. Accruals and other payables amount to some EUR 3 million (31 March 2018: EUR 1 million).
No provision has been made in respect of a performance fee as at 30 September 2018 (31 March 2018: EUR nil) as the conditions required to pay a fee had not been met at that date.
The performance fee (if applicable) and management fee are payable to Reinet Investment Advisors Limited.
+----------------------+----------------+----------+----------------+----------+
|INCOME STATEMENT |Six-month period| |Six-month period| |
| |ended 30 | |ended 30 | |
| |September 2018 | |September 2017 | |
+----------------------+----------------+----------+----------------+----------+
| | EUR m| EUR m| EUR m| EUR m|
+----------------------+----------------+----------+----------------+----------+
|Income | | | | |
+----------------------+----------------+----------+----------------+----------+
|BAT dividends | 37| | 138| |
+----------------------+----------------+----------+----------------+----------+
|Interest and other | 17| | 27| |
|investment income | | | | |
+----------------------+----------------+----------+----------------+----------+
|Realised gains | 54| | 22| |
|on investments | | | | |
+----------------------+----------------+----------+----------------+----------+
|Realised loss on | -| | (1)| |
|foreign exchange | | | | |
|contracts | | | | |
+----------------------+----------------+----------+----------------+----------+
|Carried interest | 15| | -| |
|earned on investments | | | | |
+----------------------+----------------+----------+----------------+----------+
|Total income | | 123| | 186|
+----------------------+----------------+----------+----------------+----------+
| | | | | |
+----------------------+----------------+----------+----------------+----------+
|Expenses | | | | |
+----------------------+----------------+----------+----------------+----------+
|Management fee | (23)| | (27)| |
+----------------------+----------------+----------+----------------+----------+
|Operating expenses, | (5)| | (3)| |
|foreign exchange and | | | | |
|transaction-related | | | | |
|costs | | | | |
+----------------------+----------------+----------+----------------+----------+
|Interest expense | (5)| | (5)| |
+----------------------+----------------+----------+----------------+----------+
|Tax expense | (9)| | (25)| |
+----------------------+----------------+----------+----------------+----------+
|Total expenses | | (42)| | (60)|
+----------------------+----------------+----------+----------------+----------+
|Realised investment | | 81| | 126|
|income, net | | | | |
|of expenses | | | | |
+----------------------+----------------+----------+----------------+----------+
|Fair value adjustments| | | | |
+----------------------+----------------+----------+----------------+----------+
|BAT – unrealised loss | (460)| | (643)| |
|on shares held | | | | |
+----------------------+----------------+----------+----------------+----------+
|Other investments | 92| | (74)| |
+----------------------+----------------+----------+----------------+----------+
|Derivative instruments| 21| | 12| |
|– fair | | | | |
|value adjustment | | | | |
|on outstanding | | | | |
|contracts | | | | |
+----------------------+----------------+----------+----------------+----------+
|Borrowings – | 10| | 35| |
|unrealised gain on | | | | |
|outstanding loans | | | | |
+----------------------+----------------+----------+----------------+----------+
|Total fair | | (337)| | (670)|
|value adjustments | | | | |
+----------------------+----------------+----------+----------------+----------+
| | | (256)| | (544)|
+----------------------+----------------+----------+----------------+----------+
|Effect of | | (5)| | (28)|
|exchange rate | | | | |
|changes on | | | | |
|cash balances | | | | |
+----------------------+----------------+----------+----------------+----------+
|Net loss | | (251)| | (572)|
+----------------------+----------------+----------+----------------+----------+
|Minority interest | | -| | -|
+----------------------+----------------+----------+----------------+----------+
|Loss attributable | | (251)| | (572)|
|to the shareholders of| | | | |
|the Company | | | | |
+----------------------+----------------+----------+----------------+----------+
INCOME
Dividend income from BAT during the period amounted to EUR 37 million (GBP 33 million) (30 September 2017: EUR 138 million (GBP 119 million)). The movement is mainly due to BAT paying quarterly dividends in 2018 rather than interim and final dividends as in previous years. Dividend income recorded for the six months to September 2018 was BAT's second 2018 interim dividend of GBP 0.488 per share with a record date of 29 June 2018, being the only dividend with a record date falling in the period under review. Dividend income for the six months to September 2017 was the final 2016 dividend of GBP 1.181 per share together with the first 2017 interim dividend of GBP 0.565 per share.
Interest income is earned on bank deposits, investments and loans made to underlying investments. Included in other investment income are the foreign exchange movements on fees payable, other liabilities and other assets.
Realised gains on investments of EUR 54 million were mainly in respect of investments realised by Trilantic, Milestone and Palm Lane Credit Opportunities Fund, offset by losses on other investments.
Losses of EUR 0.4 million were realised on the settlement of the euro/South African rand foreign exchange contracts during the period.
EXPENSES
The management fee for the period ended 30 September 2018 amounts to EUR 23 million (30 September 2017: EUR 27 million). Operating expenses of EUR 5 million include EUR 1 million in respect of charges from Reinet Investments Manager S.A. (the 'General Partner'), transaction costs of EUR 2 million and other expenses, including legal and other fees, which amounted to EUR 2 million.
A performance fee may be payable for the year ended 31 March 2019 if certain conditions are met. The performance fee is calculated as 10 per cent of the Cumulative Total Shareholder Return as defined in the Company's prospectus, published on 10 October 2008, including dividends paid, over the period since completion of the rights issue in December 2008 up to 31 March 2019, less the sum of all performance fees paid in respect of previous periods. No provision for the performance fee was accrued in respect of the six-month periods ended 30 September 2018 and 2017.
Interest expense relates to sterling and South African rand denominated borrowings.
The net tax expense of EUR 9 million includes corporate and withholding taxes payable in respect of gains realised on Trilantic investments, offset by a reduction in the deferred tax provision related to unrealised gains, expected distributions and accrued interest in respect of the Trilantic, Snow Phipps and other US investments.
FAIR VALUE ADJUSTMENTS
The investment in 68.1 million BAT shares decreased in value by EUR 460 million during the period under review. Of this, EUR 418 million was attributable to the decrease in value of the underlying BAT shares in sterling terms and EUR 42 million due to the weakening of sterling against the euro during the period under review.
The unrealised fair value adjustment of EUR 92 million in respect of other investments includes an increase in the estimated fair value of the investment in Pension Corporation of EUR 116 million (refer to the above for a full description of the overall movement of Pension Corporation during the period), offset by decreases in the estimated fair value of the Trilantic funds of EUR 5 million, United States land development and mortgages of EUR 6 million and certain other investments. The above amounts include the effect of changes in foreign exchange rates in the period under review.
The put options increased in value by EUR 19 million, reflecting the decrease in value of the underlying BAT shares during the period, offset by the weakening of sterling against the euro. The estimated fair value of the forward exchange contracts liability decreased by EUR 2 million, reflecting the weakening of the South African rand against the euro.
Borrowings are carried at estimated fair value reflecting the discounted cash flow value of future principal and interest payments taking into account prevailing interest rates. An unrealised gain of EUR 3 million arose in respect of the South African rand borrowing due to the weakening of the South African rand against the euro during the period. An unrealised gain of EUR 7 million arose in respect of the sterling borrowing. Of this, a gain of EUR 8 million is due to the weakening of sterling against the euro during the period.
MINORITY INTEREST
The minority interest expense arises in respect of the minority partner's shares in the earnings of the Reinet entity which holds the Trilantic interests.
DIVIDEND
A cash dividend of EUR 0.18 per share totalling some EUR 35 million was paid in September 2018, following approval at the annual general meeting on 28 August 2018. The Company only declares an annual dividend.
SHARES IN ISSUE
The number of shares in issue remained unchanged during the period at 195 942 286. This figure includes 1 000 management shares held by the General Partner.
FINANCIAL STATEMENTS
The consolidated unaudited financial statements at 30 September 2018, on which this announcement is based, have been approved by the Board of the General Partner on 14 November 2018.
SHARE INFORMATION
The Company's ordinary shares are listed and traded on the Luxembourg Stock Exchange (symbol 'REINI', Thomson Reuters code REIT.LU), on Euronext Amsterdam (symbol 'REINA', Thomson Reuters code REINA:AS) and on the Johannesburg Stock Exchange (symbol 'RNI', Thomson Reuters code RNIJ.J) with the ISIN number LU0383812293. The Company's ordinary shares are included in the 'LuxX' index of the principal shares traded on the Luxembourg Stock Exchange.
Sponsor
Rand Merchant Bank (A division of FirstRand Bank Limited)
Reinet Investments Manager S.A.
General Partner
For and on behalf of Reinet Investments S.C.A.
16 November 2018
Website: www.reinet.com
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.
Net asset value
Using the closing euro/rand exchange rate prevailing as at 30 September 2018 of 16.4119 and a rate of 14.5837 as at 31 March 2018.
30 September 2018 31 March 2018
Net asset value ZAR 79 450 m ZAR 74 771 m
Net asset value per share ZAR 405.54 ZAR 381.66
The increase in the net asset value reflects the decrease in the net asset value in euro terms offset by the weakening of the South African rand against the euro during the period.
Loss for the period
Using the average euro/rand exchange rate for the six-month period ended 30 September 2018 of 15.7041 and an average rate of 15.0114 for the six-month period ended 30 September 2017.
30 September 2018 30 September 2017
Loss for the period (ZAR 3 942 m) (ZAR 8 587 m)
The decrease for the period largely reflects the decrease in the loss in euro terms.
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 2018 30 September 2017
Unadjusted earnings per share (EUR 1.28) (EUR 2.92)
Headline earnings per share * (EUR 1.28) (EUR 2.92)
Unadjusted earnings per share (ZAR 20.10) (ZAR 43.83)
Headline earnings per share * (ZAR 20.10) (ZAR 43.83)
* There are no dilutive instruments
Dividends paid
September 2018 September 2017
Gross dividend per share EUR 0.18 EUR 0.165
Gross dividend per share ZAR 2.9861 ZAR 2.5971
Euro/rand exchange rate 16.5893 15.7400
Date: 16/11/2018 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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