Half-year Report

Rothschilds Continuation Finance (C.I.) Limited

Half-yearly Report for the six-month period ended 30 September 2016

Interim Management Report

Summary of Important Events

Rothschilds Continuation Finance (C.I.) Limited (the Company) is a wholly-owned subsidiary of Rothschilds Continuation Limited. The principal activity of the Company is the raising of finance for the purpose of lending it to companies who are members of the Rothschild Concordia SAS group. In the period ended 30 September 2016, £125,000,000 perpetual subordinated guaranteed notes were in issue by the Company.

Risks and Uncertainties

The principal risks of the Company are credit risk, liquidity risk, market risk and operational risk. The Company follows the risk management policies of a fellow Group company, N M Rothschild & Sons Limited.

The Company's market risk exposure is limited to interest rate risk. Exposure to interest rate movements on the perpetual subordinated note issues has been passed to a fellow subsidiary N M Rothschild & Sons Limited (NMR) and parent undertaking Rothschilds Continuation Limited (RCL), as the issue proceeds have been on-lent to NMR and RCL at a fixed margin of 1/64 per cent above the rate being paid. Currency risk is not considered significant as all material foreign currency balances and cash flows are matched.

Liquidity risk has similarly been transferred to NMR and RCL as the funds on-lent have the same maturity dates as the notes issued.

The Company's principal credit risk is with NMR and RCL. Since notes issued by the Company have been guaranteed by RCL, and funds have been on-lent to NMR and RCL. The Company's ability to meet its obligations in respect of notes issued by it is affected by NMR's and RCL's ability to make payments to the Company.

Operational risk arising from inadequate or failed internal processes, people and systems or from external events is managed by maintaining a strong framework of internal controls.

On 23 June 2016 the UK voted to leave the EU. At the date of signing these financial statements the Directors do not foresee any immediate impact on the Company but acknowledge the uncertainty that exists. The Directors will continue to keep this under review.

This half-yearly financial report has not been audited or reviewed by the Company's auditors pursuant to the Auditing Practices Board guidance on Review of Interim Financial Information.

Responsibility Statement

The Directors confirm that to the best of their knowledge:

By Order of the Board

Peter Barbour

Director

12 December 2016

Condensed Interim Statement of Comprehensive Income

For the six months ended 30 September 2016

Condensed Interim Statement of Changes in Equity

For the six months ended 30 September 2016

Condensed Interim Balance Sheet

At 30 September 2016

Condensed Interim Cash Flow Statement

For the six months ended 30 September 2016

Interest paid and received during the period were as follows:

The notes to the condensed interim financial statements form an integral part of the condensed interim financial statements.

Notes to the Condensed InterimFinancial Statements

(forming part of the Condensed Interim Financial Statements)

For the six months ended 30 September 2016

1. Basis of preparation

2. Directors' Emoluments

None of the Directors received any remuneration in respect of their services to the Company during the period (2015: £nil).

3. Profit Before Tax

4. Taxation

5. Loans to Group undertakings

The interest rate charged on the subordinated perpetual loans to group undertakings is 9 1/64 per cent. The fair value of the loans was £153,249,875 as at 30 September 2016 (31 March 2016: £148,688,750). The above loans were valued from quoted market prices of a similar instrument (level 2).

6. Debtors

7. Cash and Cash Equivalents

At 30 September 2016 the Company had a loan, repayable on demand of £3,623,780 (31 March 2016: £252,024) to a fellow subsidiary undertaking. The Company receives interest at 0% (31 March 2016: 0.25%).

8. Other Financial Liabilities

Interest is payable on the subordinated guaranteed notes at 9 per cent.

9. Subordinated Guaranteed Notes

The fair value of the subordinated guaranteed notes was £153,124,875 as at 30 September 2016 (31 March 2016: £148,543,750). The fair value was derived from the quoted market price at the balance sheet date (level 1).

10. Maturity of Financial Liabilities

The following table shows contractual cash flows payable by the Company on the subordinated guaranteed notes, analysed by remaining contractual maturity at the balance sheet date. Interest cash flows on the loan notes are shown up to five years only, with the principal balance being shown in the > 5yr column.

11. Share Capital

12. Related Party Transactions

Parties are considered to be related if one party controls, is controlled by or has the ability to exercise significant influence over the other party. This includes key management personnel, the parent company and fellow subsidiaries.

Amounts receivable from related parties at the period end were as follows:

Amounts recognised in the condensed statement of comprehensive income in respect of related party transactions were as follows:

There were no loans made to Directors during the period (2015: none) and no balances outstanding at year-end (2015: £nil). There were no employees of the Company during the year (2015: none).

13. Parent Undertaking and Ultimate Holding Company and Registered Office

The largest group in which the results of the Company are consolidated is that headed by Rothschild Concordia SAS, incorporated in France. The smallest group in which they are consolidated is that headed by Rothschild & Co SCA, a French public limited partnership.

The Company's immediate parent company is Rothschilds Continuation Limited.

The Company's registered office is located at St Julian's Court, St Peter Port, Guernsey, GY1 3BP.