Half-Yearly Financial Report

For the six months ended 30 June 2023

Contents

Company Highlights

1

Interim Review

Chairman's Statement

3

Manager's Report

5

Investment Portfolio

7

Regulatory Disclosures

11

Condensed Interim Financial Statements

Consolidated Income Statement and Consolidated Statement of

13

Comprehensive Income (unaudited)

Consolidated Balance Sheet (unaudited)

14

Consolidated Statement of Changes in Equity (unaudited)

15

Consolidated Cash Flow Statement (unaudited)

16

Notes to the Financial Statements (unaudited)

17

Other Information

Investment Portfolio Reconciliation

23

Glossary and Alternative Performance Measures

24

Investor Information

25

Directory

26

Notes

Nothing in this Half-Yearly Financial Report should be construed as advice to buy or sell a particular investment.

RIT Capital Partners plc (RIT or the Company) is a UK public listed company, and as such complies with the rules of the UK Listing Authority. The Company conducts its affairs so as to qualify for approval as an investment trust, and has been accepted as an approved investment trust by HM Revenue & Customs (HMRC), subject to continuing to meet the eligibility conditions. As an investment trust, it is not authorised or regulated by the Financial Conduct Authority (FCA). RIT is classified as an Alternative Investment Fund (AIF) in accordance with the UK Alternative Investment Fund Managers Directive (AIFMD).

The investment manager, administrator, and company secretary (the Manager) is J. Rothschild Capital Management Limited (JRCM), a subsidiary of RIT. JRCM is authorised and regulated by the FCA and is classified as an Alternative Investment Fund Manager (AIFM) in accordance with AIFMD.

| Company Highlights | Interim Review | Condensed Interim Financial Statements | Other Information |

Company Highlights

Corporate Objective

To deliver long-term capital growth, while preserving shareholders' capital; to invest without the constraints of a formal benchmark, but to deliver for shareholders increases in capital value in excess of the relevant indices over time.

Investment Policy

To invest in a widely diversified, international portfolio across a range of asset classes, both quoted and unquoted; to allocate part of the portfolio to exceptional managers in order to ensure access to the best external talent available.

Performance for the period

30 June 2023

RIT NAV per share total return1

-0.2%

CPI plus 3.0%

5.5%

MSCI All Country World Index (ACWI)

11.0%

RIT share price total return1

-11.2%

FTSE 250 Index2

-0.6%

Key company data

30 June 2023

31 December 2022

Change

NAV per share

2,364 pence

2,388 pence

-1.0%

Share price

1,868 pence

2,125 pence

-12.1%

Premium/(discount)

-21.0%

-11.0%

-10.0% pts

Net assets

£3,551 million

£3,722 million

-4.6%

Gearing1

6.8%

6.7%

0.1% pts

Average net quoted equity exposure for the period

37%

38%

-1.0% pts

Ongoing charges figure1

n/a

0.89%

n/a

  First interim dividend paid

19.0 pence

18.5 pence

2.7%

  Second interim dividend declared/paid

19.0 pence

18.5 pence

2.7%

Total dividend in year

38.0 pence

37.0 pence

2.7%

Since

Performance history

1 Year

3 Years

5 Years

10 Years

inception

RIT NAV per share total return1

-5.1%

27.1%

36.2%

110.3%

3,229%

CPI plus 3.0% per annum

10.9%

31.6%

43.2%

78.2%

623%

MSCI All Country World Index (ACWI)

13.3%

34.4%

48.6%

154.8%

1,050%

RIT share price total return1

-20.7%

9.9%

-1.6%

92.9%

3,345%

FTSE 250 Index2

1.9%

16.1%

0.5%

73.3%

1,810%

Performance since inception

4,000%

RIT NAV per share total return

ACWI

3,500%

CPI plus 3.0%

3,000%

2,500%

2,000%

1,500%

1,000%

500%

0%

1988

1993

1998

2003

2008

2013

2018

2023

A description of the terms used in this report, including further information on the calculation of Alternative Performance Measures (APMs), is set out in the Glossary and APMs section on page 24.

1 The Group's designated APMs are the NAV per share total return, share price total return, gearing and the ongoing charges figure.

2 RIT's shares are a constituent of the FTSE 250 Index.

RIT Capital Partners plc Half-Yearly Financial Report 2023 1

Interim Review

RIT Capital Partners plc

| Company Highlights | Interim Review | Condensed Interim Financial Statements | Other Information |

Chairman's Statement

Sir James Leigh-Pemberton

Background and performance

Many of the underlying conditions which made 2022 a particularly difficult year for markets still prevail today. Persistent inflation has led to a material shift in interest rates, and 'higher for longer' has become an often stated refrain. The US has seen a reversal of the forecast rate declines which were priced in following the regional banking crisis in March. Across the US, UK and Europe, rates have risen significantly, with the fastest average increases in four decades. In all of these markets, yield curves remain inverted, a phenomenon which has in the past been a leading indicator of a future recession.

Despite this worrying backdrop, many equity indices performed strongly. The S&P 500 finished the half year up well into double digits, and the NASDAQ had one of its strongest gains in a decade, up almost a third. A 'tech is everything' narrative, buoyed by optimism around artificial intelligence, saw a robust recovery for this sector, with investors viewing technology as a rare source of innovation and growth in an otherwise low-growth world. However, excluding a handful of the largest technology companies, the remaining stocks in the S&P 500 averaged more modest returns.

Our NAV per share total return (including dividends) was broadly flat for the half year at -0.2%, to end June at 2,364 pence per share. This compares to the MSCI ACWI (50% £) which was up 11.0% and CPI plus 3% at 5.5%. Other equity indices did less well, with the FTSE 250 (of which our shares are a constituent) declining by nearly 1%. In view of the headwinds which we continue to observe, we maintained a relatively low quoted equity exposure over the period. We also deliberately had little exposure to publicly listed technology stocks in our quoted book, as this sector is well-represented in our private investment portfolio. Our quoted equity portfolio nevertheless performed well, helped by some strong stock picks, as well as our healthcare and Japan exposures. Private investments were down slightly for the half year. Our direct holdings recorded a modest gain, supported by a number of transactions at or above our previous carrying value. For the private funds, we have received March valuations for 93% of the portfolio, which show a slight gain, partly offsetting a modest decrease from the December valuations received earlier in the year. The largest detractor in the first half was currency, driven by sterling's appreciation, with the translation impact

most pronounced for our US dollar-denominated assets. Our uncorrelated strategies portfolio was additive, with credit and interest rate positions as well as gold, all in positive territory.

Share capital and dividend

The discount at which our shares are trading relative to our NAV remains wider than we believe is warranted. Part of the increase in the discount reflects concerns regarding our private investments book, at a time when private assets generally are out of favour- notwithstanding that they have been an important contributor to returns throughout our history. The investment company

sector has also seen a general widening of discounts, particularly in the second quarter, reflecting broader weakness across the UK market.

The Board has discussed this situation at length and is responding with a two-pronged approach. Firstly, we have deployed a material amount of capital in share buybacks, to lock in the accretive benefit for shareholders, improve liquidity and help reduce the volatility in our rating. By

30 June, we had acquired some 5.6 million shares at a cost of £105 million, to hold 6.2 million shares in treasury. The robustness of our private investment portfolio valuations has been evidenced by three disposals in the half year at or above our carrying values, and we continue to believe that the opportunity to buyback our shares

at the current discount is a compelling investment for shareholders.

Secondly, we are enhancing our communications efforts to provide a more frequent and more detailed flow of information on our portfolio and its performance. This has meant an increase in the frequency of our meetings with shareholders and publishing more regular commentary on portfolio developments in our monthly NAV announcements. The reaction to these first steps has been positive, for which we are grateful. Nevertheless, there is much more that we can do in this regard, and continuous improvement in this area will be a key focus for the Company and our Manager in the coming months.

We paid a first interim dividend of 19 pence per share in April and have declared a second interim dividend of the same amount to be paid on 27 October to shareholders registered on 6 October. This will provide shareholders with a total dividend in 2023 of 38 pence per share, an increase of almost 3% from 2022.

RIT Capital Partners plc Half-Yearly Financial Report 2023 3

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Disclaimer

RIT Capital Partners plc published this content on 01 August 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 01 August 2023 06:16:21 UTC.