report to the shareholders
business overview
REINET
2
Reinet Investments S.C.A. Annual Report and Accounts 2010
CONSOLIDATED NET ASSET VALUE (`NAV')
The NAV of Reinet Investments S.C.A. at 31 March 2010 comprised:
31 March 2010
31 March 2009
m
%
m
%
Listed investments
British American Tobacco p.l.c.
2 159
85.1
1 470
79.7
Other
5
0.2
1
Cash and liquid funds
343
13.5
331
17.9
Unlisted investments
Trilantic Capital Partners funds
(1)
29
1.1
US land development and mortgages
23
0.9
Other
35
1.4
46
2.5
Fees payable and other liabilities, net of other assets
(55)
(2.2)
(2)
(0.1)
2 539
100.0
1 846
100.0
Minority interest
(2)
2 537
100.0
1 846
100.0
(1) This amount represents the 100 per cent investment in Trilantic, whereas the discussion below uses figures which
represent Reinet's 90 per cent investment.
All of the underlying assets are held by Reinet Fund S.C.A., F.I.S. (`Reinet Fund' or `the Fund').
LISTED INVESTMENT IN BRITISH AMERICAN TOBACCO
P
.
L
.
C
. (`BAT')
Reinet remains one of the largest shareholders in BAT, holding some 84 million shares
representing 4.2 per cent of BAT's capital. At 31 March 2010, the value of the investment
in BAT in the balance sheet of Reinet was
2 159 million, being 85 per cent of Reinet's
net asset value.
Reinet Fund's NAV has been positively impacted by the strengthening of the BAT share
price from £ 16.13 to £ 22.72 during the year. BAT shares are listed principally on the London
Stock Exchange and are denominated in pounds sterling.
Although BAT's share price is denominated in sterling, its revenues are generated substantially
outside the United Kingdom in a basket of currencies. Although the value of the share in
euro terms is subject to exchange rate fluctuations, in the long run, the share price is indirectly
hedged against sterling weakness. Reported profits measured in sterling should grow in the
event that the currency would continue to weaken. Reinet does not hedge the sterling value
of the investment against the euro for this reason.
Reinet received dividends from BAT during the year amounting to
84 million.
Other listed investments are small portfolio investments, previously reported under
`other investments'.