THE EUROPEAN INVESTMENT TRUST PLC Annual Financial Report for the year ended 30 September 2016

The full Annual Report and Financial Statements can be accessed via the Company's website at www.theeuropeaninvestmenttrust.com or by contacting the Company Secretary by telephone on 0131 270 3800.

COMPANY SUMMARY Investment objective

To achieve long-term capital growth through a diversified portfolio of Continental European securities. A detailed description of the Company's investment policy is set out in the Strategic Report below.

Shareholders' funds

£350,659,000 at 30 September 2016.

Market capitalisation

£303,837,000 at 30 September 2016.

Capital structure

As at 30 September 2016, the Company had 42,053,550 ordinary shares of 25p each in issue. As at 29 November 2016, the date of this report, there were 42,016,100 ordinary shares in issue.

Investing in the Company

The Company's ordinary shares are traded on the London Stock Exchange and the New Zealand Stock Exchange and can be bought or sold through a stockbroker or financial adviser. The ordinary shares are eligible for inclusion in ISAs and SIPPs. The Company's shares are also available on various share trading platforms.

AIC

The Company is a member of the Association of Investment Companies ("AIC").

Alternative Investment Fund Manager

Edinburgh Partners AIFM Limited (the "AIFM").

Investment Manager

The AIFM has delegated the function of managing the Company's investment portfolio to Edinburgh Partners Limited ("Edinburgh Partners" or the "Investment Manager").

Management fee

0.55% per annum of the Company's equity market capitalisation payable monthly in arrears.

Ten Year Record

Performance (rebased to 100 at 30 September 2006)

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

NAV per share

100.0

122.7

82.0

86.7

89.0

76.6

83.5

105.1

109.5

101.5

114.0

Share price

100.0

122.3

78.0

83.4

82.0

69.6

76.4

103.0

112.7

101.3

108.7

Earnings per share

100.0

92.1

163.8

151.7

158.0

194.4

176.2

206.4

170.1

182.7

217.9

Dividends per share

100.0

92.2

165.6

151.1

155.6

177.8

177.8

200.0

166.7

177.8

244.4

RPI

100.0

103.9

109.1

107.6

112.6

118.9

122.0

125.9

128.7

129.7

132.4

FINANCIAL SUMMARY

Results for year

30 September 2016

30 September 2015

Change

Shareholders' funds

£350.7m

£312.2m

12.3%

Net asset value per ordinary share ("NAV")

833.8p

742.2p

12.3%

Share price per ordinary share

722.5p

673.0p

7.4%

Share price discount to NAV

13.4%

9.3%

Year to 30 September 2016

Year to 30 September 2015

Revenue return per ordinary share*

19.0p

16.0p

Capital return per ordinary share*

88.6p

(59.2)p

Total return per ordinary share*

107.6p

(43.2)p

Final dividend per ordinary share**

16.0p

14.0p

Special dividend per ordinary share**

6.0p

2.0p

Total dividend per ordinary share**

22.0p

16.0p

* Based on the weighted average number of shares in issue during the year.

** Proposed dividend for the year.

Year's high/low

Year to 30 September 2016

Year to 30 September 2015

NAV - high

848.3p

909.1p

- low

645.9p

729.1p

Share price - high

741.0p

843.5p

- low

594.5p

665.0p

Share price discount to NAV

- low

3.2%

1.7%

- high

18.1%

11.4%

Performance

Year to 30 September 2016

Year to 30 September 2015

NAV Total Return

14.9%

(5.5)%

FTSE All-World Europe ex UK Index Total Return*

21.8%

(1.8)%

* In sterling.

The NAV Total Returns are sourced from Edinburgh Partners and include dividends reinvested. The index performance figures are sourced from Thomson Reuters Datastream. Past performance is not a guide to future performance.

Cost of running the Company

Year to 30 September 2016

Year to 30 September 2015

Ongoing charges*

0.62%

0.63%

* Based on total expenses, excluding finance costs and certain non-recurring items for the year and average monthly net asset value.

PORTFOLIO OF INVESTMENTS

as at 30 September 2016

Rank 2016

Rank 2015

Company

Sector

Country

Valuation

£'000

% of Net Assets

2016

% of Net Assets

2015

1

5

PostNL

Industrials

Netherlands

17,971

5.1

3.4

2

14

Royal Dutch Shell A

Oil & Gas

Netherlands

13,629

3.9

2.9

3

2

Roche*

Health Care

Switzerland

12,857

3.7

3.6

4

9

Total

Oil & Gas

France

12,782

3.6

3.2

5

1

BNP Paribas

Financials

France

12,739

3.6

3.7

6

16

Stora Enso

Basic Materials

Finland

11,937

3.4

2.7

7

4

Bayer

Basic Materials

Germany

11,577

3.3

3.5

8

6

Novartis

Health Care

Switzerland

11,526

3.3

3.4

9

12

Sanofi

Health Care

France

11,525

3.3

3.0

10

8

ENI

Oil & Gas

Italy

11,485

3.3

3.2

11

15

DIA

Consumer Services

Spain

11,396

3.3

2.7

12

-

Ubisoft Entertainment

Consumer Goods

France

11,395

3.2

-

13

-

Nokia

Technology

Finland

11,374

3.2

-

14

21

Leoni

Industrials

Germany

10,968

3.1

2.6

15

-

Adecco

Industrials

Switzerland

9,755

2.8

-

16

25

DNB

Financials

Norway

9,712

2.8

2.4

17

23

BBVA

Financials

Spain

9,608

2.7

2.5

18

-

Michelin

Consumer Goods

France

9,469

2.7

-

19

-

SKF

Industrials

Sweden

9,429

2.7

-

20

7

Ryanair

Consumer Services

Ireland

9,346

2.7

3.3

21

26

Rocket Internet

Financials

Germany

9,101

2.6

2.4

22

-

Airbus

Industrials

France

8,881

2.5

-

23

37

Ipsos

Consumer Services

France

8,670

2.5

1.5

24

17

Telecom Italia

Telecommunications

Italy

8,650

2.5

2.7

25

-

Siemens

Industrials

Germany

8,609

2.5

-

26

24

E.ON

Utilities

Germany

8,425

2.4

2.5

27

-

Telefonica

Telecommunications

Spain

8,388

2.4

-

28

13

Prysmian

Industrials

Italy

7,633

2.2

3.0

29

34

Delta Lloyd

Financials

Netherlands

7,566

2.2

1.9

30

36

Outotec

Industrials

Finland

7,491

2.1

1.5

31

33

TDC

Telecommunications

Denmark

7,484

2.1

1.9

32

-

Danske Bank

Financials

Denmark

7,458

2.1

-

33

22

Commerzbank

Financials

Germany

7,110

2.0

2.5

34

18

Swedbank A

Financials

Sweden

7,047

2.0

2.6

35

32

Piaggio

Consumer Goods

Italy

5,631

1.6

1.9

36

20

Unipol

Financials

Italy

5,548

1.6

2.6

37

28

Petroleum

Geo-Services

Oil & Gas

Norway

5,438

1.6

2.4

38

-

Uniper

Utilities

Germany

1,455

0.4

-

Prior year investments sold during the year

23.2

Total equity investments

361,065 103.0 98.7

Cash and other net current (liabilities)/assets

(190) (0.1) 1.3

Borrowings

(10,216) (2.9) -

Net assets

350,659 100.0 100.0

* The investment is in non-voting preference shares.

Of the ten largest portfolio investments as at 30 September 2016, the valuations at the previous year end, 30 September 2015, were PostNL £10,732,000; Royal Dutch Shell A £8,999,000; Roche £11,253,000; Total

£10,021,000; BNP Paribas £11,399,000; Stora Enso £8,325,000; Bayer £10,880,000; Novartis £10,649,000; Sanofi £9,373,000; ENI £10,037,000.

Distribution of Investments

as at 30 September 2016 (% of net assets)

Sector distribution

Sector

%

Industrials

23.0

Financials

21.6

Oil and Gas

12.4

Health Care

10.3

Consumer Services

8.5

Consumer Goods

7.5

Telecommunications

7.0

Basic Materials

6.7

Technology

3.2

Utilities

2.8

Cash and other net current liabilities

(0.1)

Borrowings

(2.9)

100

Geographical distribution

Country

%

France

21.4

Germany

16.3

Italy

11.2

Netherlands

11.2

Switzerland

9.8

Finland

8.7

Spain

8.4

Sweden

4.7

Norway

4.4

Denmark

4.2

Ireland

2.7

Cash and other net current liabilities

(0.1)

Borrowings

(2.9)

100

DIRECTORS

All of the Directors are non-executive and independent of the AIFM and the Investment Manager. Douglas C P McDougall OBE (Chairman)

William D Eason

Michael W M R MacPhee

Michael B Moule (Senior Independent Director) Dr Michael T Woodward

The European Investment Trust plc published this content on 30 November 2016 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 30 November 2016 10:57:04 UTC.

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