Reinet Annual Report 2010 Page 5

REINET

Reinet Investments S.C.A. Annual Report and Accounts 2010

CASH AND LIQUID FUNDS

Reinet Fund's cash is held on deposit with banks in Luxembourg and the United Kingdom.
In addition, Reinet Fund has invested

200 million in a euro-denominated government bond

fund. This holds exclusively short-dated bonds issued by western European governments and
short-term loans backed by government bonds.

The cash balance also includes approximately

2 million of funds advanced to an investee

company and held by it awaiting investment.

UNLISTED INVESTMENTS

During the year under review, Reinet has considered numerous potential investment
opportunities. In evaluating these opportunities, Reinet applies a minimum hurdle rate
of return, recognising the performance target set by the investment in BAT.

To date, funding commitments in the amount of

312 million have been entered into in

respect of the businesses detailed below, excluding the smaller investments acquired as part
of the Richemont restructuring.

TRILANTIC CAPITAL PARTNERS FUNDS
Amount committed:

164 million

Early last year, Reinet announced its decision to invest in the private equity management
business formerly owned by Lehman Brothers. Reinet bought this interest, in conjunction
with the management team, from the bankruptcy estate for US$ 10 million in April 2009.
This business is now known as Trilantic Capital Partners (`Trilantic').

At the time of the acquisition of the Trilantic interests, informal commitments were made to
colleagues who were instrumental in helping Reinet participate in the Trilantic opportunity.
It was agreed that Mr Ruggero Magnoni and Mr Alan Quasha would be allowed to participate
alongside Reinet in the Trilantic investment once their involvement as members of the Board
of Overseers terminated after last year's Annual General Meeting.

Recognising the role played by Mr Magnoni in introducing Reinet to the potential investment
in Trilantic, a company in which he is a major investor purchased a 10 per cent interest in the
Reinet subsidiary company which holds the Trilantic investment. The acquiring company
fully funded its participation in the subsidiary and has and will continue to contribute its pro
rata share of the capital calls received from Trilantic, reducing Reinet's overall commitment
to Trilantic.

Mr Quasha was instrumental in negotiating the acquisition of the buy-out transaction, working
with the bankruptcy estate and the Trilantic management team to structure this complex
transaction. Recognising his contribution, Mr Quasha will receive a one-sixth share of any
carried interest attributable to Reinet and its co-investors from Trilantic. This is in lieu of
any fee for his work in connection with the acquisition.

Also reflecting the commitment made when Reinet initially invested in Trilantic, funds
in which Mr Quasha is an investor and has a management role (including Vanterra Flex
Investments L.P. see below) will, during the year ahead, acquire a 15 per cent interest in
the Reinet subsidiary company which holds the Trilantic investment. The acquiring funds
will also contribute their pro rata share of the capital calls received from Trilantic, thus further
reducing Reinet's commitment to Trilantic.