MANAGEMENT STATEMENT FOR THE THIRD QUARTER ENDED 31 DECEMBER 2016

COMPANY ANNOUNCEMENT FOR IMMEDIATE RELEASE

24 JANUARY 2017

MANAGEMENT STATEMENT FOR THE THIRD QUARTER ENDED 31 DECEMBER 2016

The Board of Reinet Investments Manager S.A. announces the results of Reinet Investments S.C.A. for the quarter ended 31 December 2016.

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Key financial data Net asset value at 31 December 2016: € 5 480 million, a decrease of € 30 million from 30 September 2016 Net asset value per share at 31 December 2016: € 27.97 (30 September 2016: € 28.12) Repayment of borrowings and derivative liabilities of € 108 million during the quarter Commitments amounting to € 27 million were funded during the quarter

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, the primary listing, and the depository receipts issued by Reinet Securities SA in respect of the Company's ordinary shares are listed on the Johannesburg Stock Exchange, the 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. [phone], Fax [phone]

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

BUSINESS OVERVIEW

Consolidated net asset value The consolidated net asset value ('NAV') at 31 December 2016 comprised:
		31 December 2016					30 September 2016
		€ m		%			€ m		%
Listed investments
British American Tobacco p.l.c.		3 690		67.3		3 874			70.3
SPDR Gold shares		24		0.4		26			0.5
Selecta Biosciences, Inc.		6		0.1		4			0.1
Unlisted investments
Pension Insurance Corporation Group Limited		1 122		20.5		1 070			19.4
Private equity and related partnerships		781		14.3		711			12.9
Trilantic Capital Partners		186		3.4		161			2.9
Fund IV, Fund V, TEP, related general partners and management companies
Renshaw Bay and related investments		181		3.3		169			3.0
Advisory and investment management company		10				10
JPS Credit Opportunities Fund		94				86
Real Estate Finance Fund		77				73
36 South macro/volatility funds		53		1.0		53			1.0
Asian private equity and portfolio funds		182		3.3		175			3.2
Milestone China Opportunities funds, investment holdings and management company participation		137				132
Prescient China Balanced Fund and investment management company		45				43
Specialised private equity funds		179		3.3		153			2.8
Vanterra Flex Investments		29				28
Vanterra C Change TEM		24				22
NanoDimension funds and co-investment opportunities		44				41
Fountainhead Expert Fund		27				20
Snow Phipps funds and co-investment opportunities		50				37
Other fund investments		5				5
United States land development and mortgages		158		2.9		149			2.7
Diamond interests		60		1.1		61			1.1
Other investments		61		1.1		60			1.1
Total investments		5 902		107.7		5 955			108.1
Cash and liquid funds		46		0.8		194			3.5
Bank borrowings and derivatives
Borrowings		(327)		(5.9)		(381)			(6.9)
Net derivative assets/(liabilities)		(70)		(1.3)		(182)			(3.3)
Other liabilities
Minority interest, fees payable and other liabilities, net of other assets		(71)		(1.3)		(76)			(1.4)
Consolidated net asset value		5 480		100.0		5 510			100.0

All investments are held, either directly or indirectly, by Reinet Fund S.C.A., F.I.S. ('Reinet Fund'). Reinet Investments S.C.A. (the 'Company') and Reinet Fund together with Reinet Fund's subsidiaries are referred to as 'Reinet'.

INFORMATION RELATING TO CURRENT KEY INVESMENTS

		Committed amount (1) in millions	Remaining committed amount(1) in millions	Invested amount(2) in millions	Realised proceeds(2) in millions	Current fair value(1) in millions	Total realised and unrealised value(3) in millions
Listed investments
British America Tobacco	EUR	-	-	1 739	1 692	3 690	5 382
p.l.c.	GBP	-	-	1 418	1 383	3 144	4 527
SPDR Gold shares	EUR	24	-	22	-	24	24
	USD	25	-	25	-	25	25
Selecta Biosciences, Inc.	EUR	5	-	4	-	6	6
	USD	5	-	5	-	6	6
Unlisted investments
Pension Insurance	EUR	633	-	656	-	1 122	1 122
Corporation Group Limited	GBP	539	-	539	-	956	956
Trilantic Capital Partners	EUR	348	103	229	261	186	447
Euro investment	EUR	86	20	66	110	69	179
US dollar investment(4)	USD	275	87	198	190	122	312
Renshaw Bay and related
investments
Advisory and
investment management	EUR	29	2	29	-	10	10
company	GBP	25	1	24	-	8	8
JPS Credit Opportunities	EUR	67	-	54	-	94	94
Fund	USD	70	-	70	-	99	99
Real Estate Finance Fund	EUR	117	35	84	15	77	92
	GBP	100	30	70	12	65	77
36 South macro/volatility
Funds	EUR	88	-	88	6	53	59
Asian private equity and
portfolio funds
Milestone China
Opportunities funds,
investment holdings and
management company	EUR	161	9	124	18	137	155
participation	USD	169	9	160	22	143	165
Prescient China Balanced
Fund and investment	EUR	31	-	25	-	45	45
management company	USD	32	-	32	-	47	47
Specialised private equity
funds
Vanterra Flex Investments	EUR	99	38	49	23	29	52
	USD	104	40	64	27	31	58
Vanterra C Change TEM	EUR	62	6	43	1	24	25
	USD	65	6	59	1	25	26
NanoDimension funds and
co-investment opportunities	EUR	58	9	41	1	44	45
Euro investment	EUR	4	-	4	1	5	6
US dollar investment	USD	56	10	46	-	41	41
Fountainhead Expert Fund	EUR	38	19	15	-	27	27
	USD	40	20	20	-	29	29
Snow Phipps funds and	EUR	124	73	47	4	50	54
co-investment opportunities	USD	130	77	53	5	52	57
United States land
development and	EUR	203	5	158	-	158	158
mortgages	USD	213	5	208	-	166	166
Diamond interests(5)	EUR	85	3	116	67	60	127
	ZAR	1 230	40	1 190	938	870	1 808

(1) Calculated using quarter 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.

(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 decrease in the NAV of € 30 million during the quarter is largely a result of movements in the fair value of British American Tobacco p.l.c. ('BAT') and increases in the estimated fair value of loans payable. Partially offsetting these decreases in NAV are the increase in the estimated fair value of Pension Insurance Corporation Group Limited, a decrease in the estimated fair value of derivative liabilities associated with the collar financing due to a decrease in the BAT share price, and the effect of the strengthening of sterling and the US dollar against the euro in the quarter.

The Company records its assets and liabilities in euro; the appreciation of other currencies against the euro has resulted in an increase in the value of certain assets and liabilities in euro terms. Applying current quarter end exchange rates to the September 2016 assets and liabilities would have resulted in an increase in value of some € 127 million.

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

LISTED INVESTMENTS

BRITISH AMERICAN TOBACCO P.L.C.

The investment in 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. Reinet holds 68.1 million shares in BAT, representing some 3.7 per cent of BAT's issued share capital. The value of Reinet's investment in BAT amounted to € 3 690 million at 31 December 2016, being 67 per cent of Reinet's NAV (30 September 2016: € 3 874 million). The BAT share price on the London Stock Exchange decreased from £ 49.30 at 30 September 2016 to £ 46.20 at 31 December 2016. This decrease in value is offset to some extent by the strengthening of sterling against the euro during the quarter. Further information on BAT is available at www.bat.com/annualreport.

UNLISTED INVESTMENTS

PENSION INSURANCE CORPORATION GROUP LIMITED

In November 2016, Pension Insurance Corporation ('PIC') raised £ 250 million by the issuance of subordinated debt capital with an annual coupon of 8 per cent and a maturity of 10 years. The proceeds are to be used to meet projected demand from trustees of defined benefit pension funds for wholesale insurance annuity products. The bonds have been admitted to trading on the London Stock Exchange's regulated market. Reinet's investment in Pension Insurance Corporation Group Limited ('Pension Corporation') is carried at an estimated fair value of € 1 122 million at 31 December 2016 (30 September 2016: € 1 070 million). This value takes into account Reinet's estimate of Pension Corporation's embedded value at 30 September 2016 and valuation multiples drawn from industry data at 31 December 2016. The increase in estimated fair value at 31 December 2016 reflects increases over the quarter under review in comparable valuation multiples being applied by the market in valuing listed companies in the UK insurance sector. The estimated fair value is further increased by the strengthening of sterling against the euro in the quarter. Reinet retained the 10 per cent additional valuation adjustment previously applied largely allowing for the lack of ready liquidity for this investment. Of interest, in the final six months of the 2016 calendar year, PIC insured £ 140 million of the ICI Specialty Chemicals Pension Fund, £ 250 million of the Smiths Industries Pension Scheme and £ 230 million of the Pilkington Scheme. It also completed a £ 150 million pensioner buy-in and invested in Hertfordshire Housing. In January 2017, PIC signed a £ 190 million pensioner buyout of the GKN Group Pension Scheme and a £ 90 million Civil Aviation Authority Pension Scheme buy-in. The new business pipeline remains encouraging. Further information on Pension Corporation is available atwww.pensioncorporation.com.

PRIVATE EQUITY AND RELATED PARTNERSHIPS

TRILANTIC CAPITAL PARTNERS

Reinet's and its minority partners' investment in Trilantic Management and related funds is carried at the estimated fair value of € 186 million at 31 December 2016 (30 September 2016: € 161 million) of which € 9 million (30 September 2016: € 9 million) is attributable to minority partners. The estimated fair value is based on unaudited valuation data provided by Trilantic Management at 30 September 2016 adjusted for changes in the value of listed investments included in the portfolios. The increase in the estimated fair value is due to capital contributions of € 10 million, increases in the estimated fair value of underlying investments and the strengthening of the US dollar against the euro during the quarter. Further information on Trilantic is available atwww.trilantic.com.

SPECIALISED PRIVATE EQUITY FUNDS

SNOW PHIPPS FUNDS AND CO-INVESTMENT OPPORTUNITIES

In 2011, Reinet committed to invest up to $ 10 million (€ 10 million) in Snow Phipps II, L.P. In the year ended 31 March 2016, Reinet made a commitment of $ 100 million (€ 95 million) to Snow Phipps III, L.P. the successor fund to Snow Phipps II, L.P. In addition, in the current year Reinet committed $ 20 million (€ 19 million) to two co-investment opportunities. Reinet's investment in the two funds and associated co-investments is carried at an estimated fair value of € 50 million at 31 December 2016 (30 September 2016: € 37 million), the increase in value being due to additional capital invested of € 10 million, and the strengthening of the US dollar against the euro during the quarter. Further information on Snow Phipps is available atwww.snowphipps.com.

UNITED STATES LAND DEVELOPMENT AND MORTGAGES

The investment is carried at the estimated fair value of € 158 million (30 September 2016: € 149 million), of which € 3 million is attributable to minority partners (30 September 2016: € 2 million). The current valuation is based on unaudited financial statements as at 30 June 2016 adjusted for cash movements up to 31 December 2016. The increase in the valuation reflects additional net capital contributions of € 3 million in the quarter along with the strengthening of the US dollar against the euro, offset by provisions against certain estimated land values. Further information on Arendale, which holds the residential golf community assets, may be found atwww.arendale.com.

Further information on Reinet's investments may be found in the Reinet 2016 annual report which is available at www.reinet.com.

CASH AND LIQUID FUNDS

Reinet holds cash on deposit principally in European banks.

Reinet's cash and liquid funds decreased from € 194 million at 30 September 2016 to € 46 million at 31 December 2016. Reinet invested some € 27 million in underlying investments, including € 10 million in Trilantic Capital Partners and € 10 million in Snow Phipps III, L.P. Management fees of € 21 million, accrued as at 30 September 2016, were paid to Reinet Investment Advisors Limited (the 'Investment Advisor'). Amounts paid to settle bank borrowings and related call options totalled € 108 million, distributions from investments amounted to € 11 million and other disbursements including interest paid amounted to € 3 million.

In December 2016, Reinet entered into borrowing facilities with Bank of America N.A which permit it to drawdown the equivalent of up to £ 250 million in a combination of currencies to fund further investment commitments. At 31 December 2016, these facilities had not been drawn upon. In January 2017 £ 35 million was drawn with repayment due after 6 months.

BANK BORROWINGS AND DERIVATIVES

Borrowings

In February 2012, in order to meet its ongoing commitments, Reinet entered into a £ 300 million, medium-term collar financing arrangement. At 31 December 2016, the estimated fair value of the borrowing was € 294 million (30 September 2016: € 347 million). The decrease in estimated fair value reflects the repayment of £ 50 million offset by the strengthening of sterling against the euro during the quarter. As at 31 December 2016, 11.4 million BAT shares were pledged as security in respect of the remaining loan and related put and call options (30 September 2016: 13.7 million BAT shares).

The remaining bank borrowings under the medium-term collar financing arrangements noted above will be settled either by the delivery of BAT shares pursuant to the put and call options in place, by existing liquid funds or the proceeds of the sale of BAT shares, or may be rolled over and be replaced by other borrowings.

The collar financing arrangement involves the purchase by Reinet of put options and the sale by Reinet of call options. The remaining unpaid net option premium is payable over the period to March 2017 and is carried as a liability at its estimated fair value of € 2 million as at 31 December 2016 (30 September 2016: € 5 million). Some 0.3 million BAT shares remain pledged to guarantee the balance of the net option premium and a portion of the interest payments.

Reinet has also borrowed ZAR 443 million to fund its investments in South African projects. At 31 December 2016, the estimated fair value of the borrowing was € 31 million (30 September 2016: € 29 million), the increase reflects the strengthening of the South African rand against the euro in the quarter.

Derivative assets/(liabilities) - put and call options and forward exchange contracts

Put and call options in respect of the aforementioned medium-term collar financing arrangement are carried at their respective fair values at the balance sheet date. The net derivative liability is carried at its estimated fair value of € 68 million at 31 December 2016 (30 September 2016: € 183 million). The decrease in the value of the liability is due to the settlement of part of the liability in December 2016 amounting to € 49 million (£ 41 million), together with a decrease in the BAT share price of some £ 3 per share, offset by the strengthening of sterling against the euro in the quarter. The remaining options expire or alternatively will be settled before 31 March 2017.

Reinet has entered into a forward exchange contract to sell ZAR 480 million (30 September 2016: ZAR 480 million). The derivative liability in respect of the forward exchange contract is carried at its estimated fair value of € 2 million at 31 December 2016 (30 September 2016: asset of € 1 million).

OTHER LIABILITIES

Minority interest, fees payable and other liabilities, net of other assets

The minority interest liability amounts to € 16 million (30 September 2016: € 15 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 € 11 million in respect of the management fee payable at 31 December 2016 (30 September 2016: € 21 million) a provision for deferred taxes of € 12 million (30 September 2016: € 11 million) relating to gains arising from the investments in Trilantic Capital Partners and withholding and corporate taxes of € 24 million (30 September 2016: € 21 million) relating to the investment in United States land development and mortgages. Accruals and other payables amount to some € 8 million (30 September 2016: € 8 million).

No provision has been made in respect of a performance fee as at 31 December 2016 (30 September 2016: € 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 the Investment Advisor.

SHARES IN ISSUE

The number of shares in issue remained unchanged during the quarter at 195 942 286. This figure includes 1 000 management shares held by the General Partner.

SHARE INFORMATION

Primary Listing

The Company's ordinary shares are listed and traded on the Luxembourg Stock Exchange with the ISIN number LU0383812293 (symbol 'ReinetInvest'). Thomson Reuters code REIT.LU. The Company's ordinary shares are included in the 'LuxX' index of the principal shares traded on the Luxembourg Stock Exchange.

The Company's share price decreased by 5 per cent in the quarter from € 18.51 at 30 September 2016 to € 17.51 at 31 December 2016, with the highest trade being at € 18.99 during the quarter.

Secondary Listing

The depository receipts issued by Reinet Securities SA in respect of the Company's ordinary shares are traded on the Johannesburg Stock Exchange under the ISIN number CH0045793657 (symbol 'REI'). Thomson Reuters code REIJ.J. One depository receipt issued by Reinet Securities SA represents one-tenth of one ordinary share in the Company.

The price of depository receipts issued by Reinet Securities SA in respect of the Company's ordinary shares decreased from ZAR 29.92 at 30 September 2016 to ZAR 26.80 at 31 December 2016, the decrease of 10 per cent reflects in part the weakening of the euro against the South African rand in the quarter.

Reinet Investments Manager S.A.

General Partner

For and on behalf of Reinet Investments S.C.A.

Website: www.reinet.com

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