RIT Capital Partners : Half Yearly Report to June 2022

Half-Yearly Financial Report

30 June 2022

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 Alternative Investment Fund Managers (Amendment) (EU Exit) Regulations 2019 (UK 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 UK AIFMD.

Warning to shareholders

From time to time investment companies and their shareholders can be the subject of investment scams. The perpetrators obtain lists of shareholders and make unsolicited phone calls or send correspondence concerning investment matters. They may offer to sell worthless or high risk shares or, in the case of your RIT stock, may offer to buy your current shareholdings at an unrealistic price. They will often also inform you of untrue scenarios to make you think that you need to sell your shares or to justify an offer that seems too good to be true.

To find out more about share fraud or 'boiler room' scams please visit the website of the Financial Conduct Authority, https://www.fca.org.uk/scamsmart.

Please note that you cannot buy or sell the shares of RIT directly with us, and we will never contact you with offers to buy or sell shares, nor will our registrar, Computershare. In the event that you are contacted we strongly recommend that you review the FCA website above and follow the necessary steps. Please do report any company making unsolicited calls to the FCA using the form that can be found via the above link.

| 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 2022
NAV per share total return*	-8.8%
Share price total return*	-12.1%
CPI plus 3.0% per annum	6.2%
MSCI All Country World Index (ACWI)	-14.7%

Key data	30 June 2022		31 December 2021		Change
NAV per share	2,530 pence		2,794 pence	-9.4%
Share price	2,400 pence		2,750 pence	-12.7%
Premium/(discount)	-5.1%	-1.6%		-3.5% pts
Net assets	£3,974 million		£4,390 million	-9.5%
Gearing*	10.5%	6.1%		4.4% pts
Average net quoted equity exposure for the period	38%	43%		-5% pts
Ongoing charges figure*	n/a	0.72%		n/a
First interim dividend paid	18.5 pence		17.625 pence	5.0%
Second interim dividend declared/paid	18.5 pence		17.625 pence		5.0%
Total dividend in year	37.0 pence		35.250 pence		5.0%

Performance history	1 Year	3 Years	5 Years	10 Years
NAV per share total return*	-5.4%	35.4%	54.0%	156.4%
Share price total return*	0.2%	20.9%	37.1%	129.5%
CPI plus 3.0% per annum	12.4%	22.9%	36.1%	70.1%
MSCI All Country World Index (ACWI)	-8.8%	22.4%	43.4%	170.1%

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	1991	1994	1997	2000	2003	2006	2009	2012	2015	2018	2021

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. The Group's designated APMs (denoted above with an *) include the NAV per share total return, share price total return, gearing and the ongoing charges figure.

RIT Capital Partners plc Half-Yearly Financial Report 2022 1

Interim Review

RIT Capital Partners plc

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

Chairman's Statement

Sir James Leigh-Pemberton

Performance

In the short, six-month period from our year end to

30 June 2022, we have witnessed a combination of geopolitical instability, macro-economic shifts and market volatility in all asset classes at a level which rivals the most challenging periods in recent history. There is little to suggest that this period of uncertainty will end soon. The risks of recession, elevated inflation, supply side shocks and significant changes in monetary policy are clear and present dangers for investors.

By the end of June, equity markets had suffered substantial losses. The S&P 500 was down -20%, with the FTSE 250 and key European indices in similar territory. There were pockets of relatively stronger performance with single digit declines in Japan and China, the latter recovering from April lows as the government's more constructive policies started to have an effect. Bond markets also suffered, with the yield on 10-year US treasuries rising from 1.5% at the end of 2021 to a 10-year peak of 3.5% in mid-June, with corresponding sizeable losses for investors. These developments made the last six months the most treacherous start to a year for traditional balanced portfolios on record.

Keeping our quoted equity exposure towards the lower end of our historical ranges helped us to protect shareholders from the worst of these market declines. The NAV per share ended the period at 2,530 pence, representing a total return (including dividends) of

-8.8%, as compared to the ACWI which lost -14.7%, and CPI+3% which was up 6.2%. This means that over the last three years, RIT's NAV per share has seen a healthy cumulative return of 35.4%, compared to 22.4% for the market and 22.9% for our inflation measure.

Active portfolio management has been essential in the first half of the year. With neither government bonds nor gold acting as effective portfolio diversifiers, a more sophisticated approach to portfolio construction is required. The Manager's Report from JRCM provides more details on the asset allocation and contribution to returns. In summary, the key detractors for the half year were our quoted equities and private investments. As we reviewed our portfolio composition in this difficult period, our approach has remained resolutely long term. When we saw significant headwinds in the early months for some of our thematic exposures such as China and biotech, we invested time to reassess the validity of

Over the last three years, RIT's NAV per share has seen a healthy cumulative return

of 35.4%, compared to 22.4% for the market and 22.9% for our inflation measure.

the underlying investment theses and concluded that we remained supportive of the long-term prospects here. It was pleasing to see the market taking a more constructive view of both these areas in June. In relation to the private investments, after the very strong performance of recent years, we saw some pullback, and took write-downs where necessary in our direct positions to reflect the significant changes in public market valuations of technology stocks in particular. Outside of equity exposures, the absolute return and credit portfolio was broadly flat for the period, and the NAV benefited from currency translation as sterling weakened.

Share capital and dividend

As I have highlighted before, the nature of our portfolio necessitates a monthly NAV. At times of heightened market stress, this can feed through into our share price, notwithstanding that our underlying portfolio

is significantly less volatile than equity markets. We therefore continued our approach of seeking to minimise the impact on shareholders by buying back shares accretively as the discount to NAV reached high single digits. During the six months to June, we bought back 65,000 shares at a cost of £1.5 million to leave us with circa 240,000 shares in treasury.

We paid a first interim dividend of 18.5 pence per share in April, and, in line with my comments in March, have declared a second interim dividend of the same amount. This will be paid on 28 October to shareholders registered on 7 October, providing shareholders with a total dividend in 2022 of 37 pence per share, a 5.0% increase over 2021.

Governance

We remain committed to following best practice in relation to diversity, and published our own Diversity and Inclusion Policy in May of this year. Following Amy Stirling's retirement from the Board at our AGM, I was delighted to announce the appointment of Jutta af Rosenborg in May. At 30 June, your Board comprised eight Directors, of whom three were female. We are continuing our recruitment efforts to ensure that we are

RIT Capital Partners plc Half-Yearly Financial Report 2022 3