Final Results

Temple Bar Investment Trust plc Final Results Announcement for the year ended 31 December 2011 Chairman's Statement Performance The total return on the net assets of Temple Bar during 2011 was -0.5%, which compares with a total return for the FTSE All-Share Index of -3.5%. In share price terms this outperformance was enhanced by the Temple Bar shares moving from a discount at the beginning of the year to a premium at the year end. It is pleasing to report that Temple Bar continues to significantly outperform its benchmark over the past five years. Revenue growth on the portfolio in 2011 was very strong and the sizeable deficit generated in the previous year, mainly due to the suspension of the BP dividend, was more than fully eliminated. Post-tax earnings increased by 19.2% in 2011. The Board is recommending a final dividend of 21.23p, to produce a total increase of 3.0% for the year. The final dividend is lower than that paid last year but I would remind shareholders that this is due to the rebalancing exercise that took place at the interim stage which saw a significant increase in the level of the interim payment. The dividend will be payable on 30 March 2012 to shareholders on the register at 16 March 2012, subject to shareholders' approval. The shares go ex dividend on 14 March 2012. This is the 28th consecutive year in which the dividend has been increased. This dividend increase also allows approximately £1.5 million to be transferred to the revenue reserve account. In deciding the size of the dividend increase the Board has taken into account both the current level of inflation and potential risks in the current volatile market conditions. Whilst returns for the UK equity market were pedestrian in 2011, this should be considered against the backdrop of the European economic crisis. Our portfolio manager does not use macro-economic analysis to shape the portfolio or drive his views on valuations; the dislocation between market movements and economic newsflow perhaps illustrates the merits of this approach. At the year-end, capital gearing, defined as gross assets divided by net assets, was 112%. However, cash and other similar assets together with the short-dated bond portfolio are currently offsetting virtually all of this gearing. Board of Directors It is with great sadness that I report the death in November of Gary Allen, a former Senior Independent Director of the Company. Retail Distribution Review (RDR) With effect from 2013 independent financial advisers will be required to offer advice to investors after considering a full range of investment options. Commission for advice will no longer be payable and, instead, a fee basis must be agreed with the client. It is expected that RDR will create the opportunity for a greater number of private investors to place funds in investment trusts; these have not previously been considered due to a lack of commission incentive, limited platform availability and less familiarity of investment trusts within the IFA community. We are taking a variety of measures to ensure that Temple Bar is optimally placed to attract any additional demand for investment trust shares that might result from RDR. Annual General Meeting The 2012 Annual General Meeting will be held at 2 Gresham Street, London EC2V 7QP on 26 March 2012 at 11am. I look forward to meeting as many of you as are able to attend. In addition to the formal business of the meeting the portfolio manager, Alastair Mundy, will make a presentation reviewing the past year and commenting on the outlook. He will also be available to answer any questions alongside the directors. Outlook The portfolio manager and his team remain committed to their analytical, detailed and balance sheet aware approach to contrarian investing and will continue to search for new investment opportunities arising in these volatile market conditions. John Reeve Chairman 22 February 2012 Twenty Largest Investments as at 31 December 2011 Company Supersector Place of Valuation % of listing portfolio 31 December 2011 £'000 Royal Dutch Shell Oil & Gas UK 54,818 9.48 GlaxoSmithKline Health Care UK 51,187 8.86 Signet Jewelers Retail UK/USA 41,657 7.21 Unilever Food & Beverage UK 37,930 6.56 HSBC Banks UK 37,304 6.45 Vodafone Telecommunications UK 30,921 5.35 AstraZeneca Health Care UK 24,113 4.17 BT Telecommunications UK 21,292 3.68 British American Tobacco Personal & Household UK 20,396 3.53 Goods Travis Perkins Industrial Goods & UK 19,847 3.44 Services Qinetiq Group Industrial Goods & UK 14,371 2.48 Services UK Treasury 5.25% 2012 Fixed Interest UK 13,159 2.28 Centrica Utilities UK 12,688 2.19 Grafton Group Industrial Goods & UK/ 11,712 2.02 Services Ireland Pfizer Health Care USA 11,370 1.97 Avon Products Personal & Household USA 10,404 1.80 Goods Charter International Industrial Goods & UK 10,101 1.75 Services CRH Construction & Ireland 10,048 1.74 Materials UK Commercial Property Real Estate UK 8,937 1.55 Trust Wolseley Industrial Goods & UK 7,722 1.33 Services 449,977 77.84 Consolidated Statement of Comprehensive Income for the year ended 31 December 2011 2011 2010 Revenue Capital Revenue Capital return return Total Return return Total £'000 £'000 £'000 £'000 £'000 £'000 Investment 25,640 - 25,640 22,030 - 22,030 income Other operating 79 79 26 26 income 25,719 - 25,719 22,056 - 22,056 (Losses)/gains on investments (Losses)/gains - (19,776) (19,776) - 55,254 55,254 on investments held at fair value through profit and loss Total income/ 25,719 (19,776) (5,943) 22,056 55,254 77,310 (loss) Expenses Management fees (816) (1,224) (2,040) (776) (1,162) (1,938) Other expenses (527) (569) (1,096) (534) (473) (1,007) Profit before 24,376 (21,569) 2,807 20,746 53,619 74,365 finance costs and tax Finance costs (1,824) (2,753) (4,577) (1,831) (2,746) (4,577) (Loss)/profit 22,552 (24,322) (1,770) 18,915 50,873 69,788 before tax Tax - - - - - - (Loss)/profit 22,552 (24,322) (1,770) 18,915 50,873 69,788 before tax Earnings/(loss) 38.08p (41.07)p (2.99)p 32.08p 86.28p 118.36p per share (b asic & diluted) The total column of this statement represents the Consolidated Statement of Comprehensive Income prepared in accordance with IFRS. The supplementary revenue return and capital return columns are both prepared under guidance issued by the Association of Investment Companies. All items in the above statement derive from continuing operations. No operations were acquired or discontinued during the year. There are no minority interests. Consolidated Statement of Changes in Equity for the year ended 31 December 2011 Ordinary Share share premium Capital Retained Total capital account reserves earnings equity £'000 £'000 £'000 £'000 £'000 Balance at 1 14,740 8,507 435,959 30,782 489,988 January 2010 Changes in equity for 2010 Profit for the - - 50,873 18,915 69,788 year Dividends paid - - - (19,754) (19,754) to equity shareholders Balance at 31 14,740 8,507 486,832 29,943 540,022 December 2010 Changes in equity for 2011 Loss for the - - (24,322) 22,552 (1,770) year Issue of share 185 5,935 - - 6,120 capital Dividends paid - - - (22,332) (22,332) to equity shareholders Balance at 31 14,925 14,442 462,510 30,163 522,040 December 2011 Consolidated Statement of Financial Position as at 31 December 2011 31 December 2011 31 December 2010 £'000 £'000 £'000 £'000 Non-current assets 578,048 599,878 Investments held at fair value through profit or loss 578,048 599,878 Current assets Other receivables 4,634 3,202 Cash and cash equivalents 3,883 1,974 8,517 5,176 Total assets 586,565 605,054 Current liabilities Other payables (1,085) (1,610) Total assets less current 585,480 603,444 liabilities Non-current liabilities Interest bearing borrowings (63,440) (63,422) Net assets 522,040 540,022 Equity attributable to equity holders Ordinary share capital 14,925 14,740 Share premium 14,442 8,507 Capital reserves 462,510 486,832 Retained earnings 30,163 29,943 522,040 540,022 Total equity 522,040 540,022 Net asset value per share 874.42p 915.89p Consolidated Statement of Cash Flows for the year ended 31 December 2011 2011 2010 £'000 £'000 £000 £'000 Cash flows from operating activities (Loss)/profit before tax (1,770) 69,788 Adjustments for: Purchases of investments¹ (162,877) (97,611) Sales of investments¹ 163,921 95,608 1,044 (2,003) Loss/(gains) on investments 19,776 (55,254) Financing costs 4,577 4,577 Operating cash flows before 23,627 17,108 movements in working capital (Increase)/decrease in accrued (4) 257 income and prepayments (Increase)/decrease in (1,428) 3 receivables Increase in payables 485 20 Net cash flows from operating 22,680 17,388 activities before and after income tax Cash flows from financing activities Proceeds from issue of new 6,120 - shares (4,559) (4,559) Interest paid on borrowings Equity dividends paid (22,332) (19,754) Net cash used in financing (20,771) (24,313) activities Net increase/(decrease) in c 1,909 (6,925) ash and cash equivalents Cash and cash equivalents at 1,974 8,899 the start of the year Cash and cash equivalents at 3,883 1,974 the end of the year ¹ Purchases and sales of investments are considered to be operating activities of the Company, given its purpose, rather than investing activities. Notes i. The figures set out above are prepared on the same basis as set out in the previous year's annual accounts and are derived from the audited consolidated accounts of Temple Bar Investment Trust Plc and its subsidiary for the year ended 31 December 2010 and 31 December 2011. The 2011 accounts will be sent to shareholders shortly. ii. The financial information contained in this announcement does not constitute full accounts within the meaning of Section 434 of the Companies Act 2006. The 2011 accounts, on which the report of the auditors is unqualified, will be filed with the Registrar of Companies in due course. The audited accounts for the year ended 31 December 2010 on which the report of the auditors was unqualified and did not contain a statement under Section 498 of the Companies Act 2006, have been filed with the Registrar of Companies. 22 February 2012 Contact: Alastair Mundy Telephone 020 7597 2000 Investec Asset Management Limited

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