RIT Capital Partners : Half Yearly Report to June 2021

Half-Yearly Financial Report

30 June 2021

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

| 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 2021
NAV per share total return	19.1%
Share price total return	18.5%
RPI plus 3.0% per annum	3.4%
MSCI All Country World Index (ACWI)	12.2%

Key data	30 June 2021	31 December 2020	Change
NAV per share	2,711 pence	2,292 pence	18.3%
Share price	2,430 pence	2,065 pence	17.7%
Premium/(discount)	-10.4%		-9.9%	-0.5% pts
Net assets	£4,263 million	£3,590 million	18.7%
Gearing	9.8%		4.4%	5.4% pts
Average net quoted equity exposure for the period	46%		43%	3% pts
First interim dividend paid	17.625 pence	17.5 pence	0.7%
Second interim dividend declared/paid	17.625 pence		17.5 pence	0.7%
Total dividend in year	35.250 pence	35.0 pence	0.7%

Performance history	1 Year	3 Years	5 Years	10 Years
NAV per share total return	41.6%	51.7%	83.4%	156.3%
Share price total return	38.4%	23.9%	60.9%	125.8%
RPI plus 3.0% per annum	6.9%	17.7%	33.4%	72.4%
ACWI	30.2%	43.8%	88.2%	184.9%

Performance since inception

4,000%	RIT NAV per share total return
3,600%	ACWI
RPI plus 3.0%
3,200%
2,800%
2,400%
2,000%
1,600%
1,200%
800%
400%
0%
1988	1992	1996	2000	2004	2008	2012	2016	2020

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.

RIT Capital Partners plc Half-Yearly Financial Report 2021 1

Interim Review

RIT Capital Partners plc

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

Chairman's Statement

Sir James Leigh-Pemberton

I am pleased to report that your Company's net asset value at the end of June increased to 2,711 pence per share, representing a total return (with dividends reinvested) of 19.1% over the half year. For the same period, the total shareholder return was 18.5%, with the share price on 30 June having increased to 2,430 pence.

The first six months of the year appeared to be a relatively benign time for equity markets, with many developed markets posting low double-digit gains, despite continuing Covid-19 concerns and notably higher inflation figures. However, beneath the surface, the situation was far more volatile, with material rotations between market- leading sectors, regions and themes. Central banks continued to influence market sentiment, as investors sought and reacted to signs of policy initiatives to address higher inflation. The 10-year US treasury yield rose sharply to a peak of 1.77% in March before steadily declining over the remainder of the period. And we saw volatility spike in several well-publicised stocks, driven by the increasing influence of retail shareholders. All this resulted in a wide dispersion of underlying asset returns; the first half of the year reminding us again that decisions over where exposure is held, and not just how much, is the key to achieving our Corporate Objective. Our focus continued to be on ensuring the investment approach remained disciplined, but with the right amount of agility that these market conditions require.

The two principal KPIs we use for investment performance, the ACWI and RPI+3%, measured 12.2% and 3.4% respectively over the half year, resulting in your Company experiencing healthy outperformance. As the JRCM Manager's Report explains, we saw positive contributions across the majority of your Company's asset categories, with private investments in particular producing strong returns. This asset class has always been a key part of our strategy, with the strength and breadth of JRCM's network providing the ability to source and invest in high-quality deals, which would otherwise be difficult for shareholders to access. Our long-term approach allows us to integrate these private investments with carefully considered allocations to stocks, equity and hedge funds, absolute return and credit, and currencies. These diversified asset categories are combined using sophisticated and dynamic portfolio construction, overlaid with the intelligent use of hedges. We continue to believe this differentiated approach offers something truly distinct

Iam pleased to report ... a total return of 19.1%. … your Company experienced healthy outperformance with positive contributions

across the majority of your Company's asset categories, with private investments in particular producing strong returns.

from many other offerings in both the investment trust and wider fund universe.

With our Corporate Objective focused on long-term capital growth and preservation, performance over a six- month period, while desirable, is not our main aim. We seek to ensure that our approach produces a high-quality return through market cycles. Looking at recent years, it is gratifying to see continued strong performance, with a three-year NAV return of 51.7%, and five-year

of 83.4%. However, it is equally important that we target these equity-type returns with considerably less risk than if we were fully invested in equity markets, aiming for reasonable participation in up markets and to protect shareholders from the worst excesses of market declines. Here, I am therefore also pleased that we compare favourably, with monthly NAV volatility over five years at 8.3% compared to the ACWI of 12.3%.

Share capital and dividend

The NAV performance is what we task our Manager with producing, but we recognise that ultimately the return to shareholders is through share price growth and dividends. As I have commented on previously, the Board monitors the share price closely, with the aim of minimising where possible the volatility for shareholders, allowing the NAV to drive the share price. In this regard, we bought back approximately 59,000 shares over March and June at

a cost of £1.4m, when we saw the shares trading on a high single-digit discount. As a result, we now hold some 175,000 shares in treasury, and we intend to continue to selectively purchase shares in the market when we believe that it is beneficial to do so.

We paid a first interim dividend of 17.625 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 29 October to shareholders registered on 1 October, providing shareholders with a total dividend in 2021 of 35.25 pence per share, a modest increase over 2020.

RIT Capital Partners plc Half-Yearly Financial Report 2021 3