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2020-12-31-accounts

THE KIIYG HENRY VIII ENDOWED TRUST, WARWICK Tru$t¢¢s' Report and Consolidated Financlal Statements Year ended 31st December 2020

THE KING HENRY VIII ENDOWED TRUST, WARWICK

INDEX

Trustees and Advisers 2
Trustees' Report 3
Statements of Trustees' Responsibilities 7
Independent Auditor's Report 8
Statement of Financial Activities 11
Charity Statement of Financial Activities 12
Balance Sheet 13
Statement of Cash Flows 14
Notes to the Financial Statements 15

THE KING HFNRY VIII F.NDOWED TRUST, WARWICK TRUSTEES AND ADVISERS 'rRUSI'EES Nomithoted Trustees: Nominaled by.. Rev t>Jvid BIN)wn Bishop of Covcniry Mr Sicphcn C.opl¢y AIrlid￿Coll ol'warwick Cllr St¢plicn Cross Warwick Town Council Mrs Mari¢-BemadeiiL Ashe Warwick Iiidependeni Schools Foundation co.opted Trustees: Mr John Edwards Mr lan Furlong MTS SuYn Grinnell MT Stephen Jobburn Mi.%4 Kailiryii Parr Mi. Mib114?cl Ptdcliey Ichairnianl Mi. N¢il Tliui-ley CLERKAND RECEIVER Mi. Junaihan Wassall- 12 High Siieet, WJrwiLk, CV34 4AP AUDITOR ma7.ars LLI)_ First Flvor. Two CliaTnb¢rlain squa￿ Binninuhym. B3 3AX INVESTMENT MANACERSIADVISORS CC.LA Invcsimcnt Manag¢inct)t l.td- 85 Queen Victoria Sire¢L Lotidon, EC4V 4ET Quilter Cheviot Lid- Provincial Housc, 37 New Wslk, Leic¢sl¢r, LEI 6TU Savills IUKI Lid- 33 Mar¥airl Sireei, L￿￿on, WIG OJD Assct Risk Con$ultsnt5 Ltd- 7 N¢w Sirect, St Peter Port, Guernbey. GYI 2PF SOLICITORS Loddets LLP- 10 Elin Court. Arden Sirect, %tr4tford uwn Avojt. CV37 6PA Guwling WLG IUKI LLP- Two Snuwhill, B]￿Ing17a1￿. B4 4WR Evershcds LLP- 115 Colrnore Row. Biniiingli<iin, 83 3AL BANKLRS HSBC Bank PIC- 126 Thc PaTad& Leamingt()n Spa. CN32 4AJ PROPERTY MANAGING AGENTS Cushman & W9k¢field- I Colmore Squart, Birmingliam, B4 6A[ AGRICULTURAI. AGENTS Marg¢lLS- 12 High Sireei, Warwick, CV34 4AP LAND DL"VbLOPMENT& PLANNING Cdiesby Eslat¢s plc- Calesby HuusK Sb Toumamcnl Court. Edgehill Thivc, Warwick. CV34 6LG Savills (UK) l.td- 31 Mar¥aTet Street, Loiidryi. WIG OJD PRINCIPAL OFFICE- 12 High Sirlxtt, Warwick, CV34 4AP CHARITY REGISTRATION NUMBER 232862

THF. KI￿¥(. Hf4.NRY N'llI Ef4DOWED TRVST, WARWICK (Founded by l.ettei'5 P#teni dated 15 May 1445) TRVSTEES, REPORT Report gf the Trustees for year ending 31st December 20211 The Trustee4 prent th¢ir Annual Report and Fit]ancial Statemenls of tlie cliai'iry for the yttntpd respeciively by the Bisl)op of Coventry. the Archdea¢on of Wanvick. Warwick Indepelld¢iil Schools foulldation and Warwick Towi Council. The C.()-É)ptative Trusteeb are r￿n]ited through a combination of advertlging and directly approaching polenlial candidaie%. In appointing Co-optative Tru8tees, the Tru8tees take into account ihe skklls and exp¢rience of the poteniial ncw Tn)ste¢ in relaiion to the Eunction and purpose of th¢ Twst. The Chaiman of the TruS￿S is responsible for the induction of any new TNstee. This illvolves awar¢ness of a Trusiec's rc8ponsibilities, the Iiistory and purpose of tli¢ Trust, the governing do¢umenls, administyalive procedure8 alld organi8ational procesbes. Trustees are encouraged to attend appropriate traiiiing ev¢t]ts wl)ere ihese will facilitate the undertaking oftlieir role. In 2020, the Tru%tees held four full Trustees Meeting. four Grants Committ¢e Meeiing84 and four Finance & Investmeni Committee Meetings. Tru¥lees also attejidcd Ilir¢e meeting8 of the Europa Way Conbortium, wliicli is a joint venrure witli Tl)e Charity of Thomas Oken ai)d Nichola8 Eyffler and a private irust wl)iLh is developing land owned by its members adjaLent io Europa Way Warwick. Thc Truqt's illvolvemeni is Ilwou￿ ilb subsidiary KH8 l.iniited, which hvlds tlie land io be developed. The director$ of KH8 1.iniited Lire all Trustees of the charity. KH8 l.imited exi$18 to maximis¢ the relurji Ilie land lield and to donate the net profilts back to the ¢harity. Ai ￿11 -frustee Meetit]g8 tlie TTUStees debate and agr¢e tlie broad 8trategy and acttvities of the T￿￿t includin¥ grant making. inve%imct]L% <ind risk n￿lIa¥ein¢llt. The approval of individual granL% UP to £15.000 is Undertaken by the Grants Con)mitle¢. which also tnoiiitors tlie extent of grant making during the year. The Financ¢ & Investment Committee inonitor.% tlie perfoTman¢e of the Trust's property, COIF at)d financial invebtment portfolio togTether with the financial perforn]ance of ihe Trus1. Tl)e activities and performance of these sub conilljitiees are reviewed ai full Tru%iee Meeting%. Tjie Trubt's involvemeiJt in tl* Europa Way Cot)80rtium. chaired by u Trustee. has been a igniliLant activily during ilie year and represents a major opportunity to realisc value foi the Trust and its bei)eficiaTies. The PTogrebS of ih¢ Europa Way Con%onium and tlJc implicaiion8 fol. tlie Trust is reported at each full Tru%tee Mcetiiig. The Trust ha% chosen to have no employees to avoid tlie ri8k8 of employment. Its c.lerk & Rcceiver. Depuiy Clerk at)d Acctruntsnt are all self-¢inployed or operare tI￿ough a setvice company. The Trustees receive no remuneralioii or bLTefit8.

TIIE KIYG IIENRY VIII ENDOWED TRUST, WARWICK (Foiinded by Letters Patent dated 15 May 1545) 'I'RUS'fEES' REPORT Objectives I'lie objebtive of the Trust is lo provide iiiLonie for Warwick's Anglican Churches. the Warwick 1ndep￿Idcnt Schoolq Foundation (WISFI and Lrajits for tlie benefit of the inhabiiantb of the Old Borough of Warwick, acliieved ihrough the distribution vf tijndb arisiiig from the investment of ilie Trubt'b Pemiaiieni Endowment. The Tn].%1'8 governing documen¢% require tliai funds be distributed on tlie basis of 50/0 10 Wati¥ick's Anglican CIIuTLlies (Church Share), 30V/o to WISF Iscliool Sliare) and 20/0 d25tributed as dibcretionary ¥r3nts for the benefit of the inhat7iianL8 of Warwick {To￿t Share). Funds distributed to Ilie fil'e Anglican chuwhe% are used io pay the stipend aiid housing cosis of the ¢lergy with Tesidual being used lor ihe furilierance uf religious and chariidble <iCtivitlC8 in each of the parishes. fundb provided to WISF are used exclusively to pruvide bursarieb for pupils from tlic Old Borough of Wdnvick who would oth¢rwise be unable to attend tlie SLliool. Grants under the Tow]1 Share JEgularly include support to local 5cI)ools, hospitals, Myton Hospice, non-ChurLh of England churchtts. youth organisaiionb, 8enior citizens, sporting orgaiiisationb, museums and aris organi￿tiOns, cl)aritable support network% and support to Individuals either directly or via other grant making cliarities. Aehievemeiits In the year During 2020 the Trnst distributed a total of £1,454,931 to beneficiaries with £666.933 being di.8tributcd lo tlie flve Anglican churches in d)e to￿), £470,549 to ihe Warwick Independent Schools Foundation and £317.449 in dis¢1'eiionary gran15 to b¢n¢ficiaries in the town ofwanvick. During tlie year ihe Church disiributivns fui)ded the $tipends and housing cost.% of ihe clergy for eaeli to tlie flve parislies and part paymeni of ilie costs of clergy support at tlle Myion Hobpiee located in Wan¥ick. Funds provided to the Parwliial Church Councily h<ive been u%ed for a range of activities including the mainienai)ce and repair of church buildings and ¢ommunEly buildings adjae¢nt to churches, community activities within pari%lie.% including suppurt for yow)g people, the elderly and the disabled. Undcr the 'Project Pool. pariglies bid for fuiids, with projects beinsy ass¢ssed on ilie extent of their cornanunity benefit. The iotal allocated to the 'Project Pool, in the year was £86,132 {2019.. £285,600). The dibtribulions to the Warwick Independent Schools Foundation during 2020 have been u.%ed to provide bursaries for children who art resident in Warwick. The Foundaiion provide4 the8c bur8aries otj a meai)8-testcd basi8. Grantts from the Town Share were made to 35 different organisaiions. Local state schools continue to be si￿1]fIcat}t beneliciaries. Oiher major grants were to Warwick Apprenticing Chariiies, Myttsn Hospice, Chase Meadow rtd Conm]unity Centre, New Life Church, Heaihcote Parish Churclj, Citj7£n8 Advice and 2 Warwick Sea S¢out5. Smaller ¥ranlb have supported a range of aLlivities ii)¢luding Warwick To￿1 Council, Warwick Sport Club, Playbox Theatre Con)pany 8iid various counselling charities. 46 /￿ of all grant8 awarded beneljtted local 8¢hools or youiig people. The Tn￿t'S involvement in tl)e Europa Way Consortium, though it8.%ub4idiary, has been a signiflcant activily during the year. The Consonium conlinued to work with Cateqby F..%tate8 pl¢ during the year and a large proportion of tlie iiifrgsiTUCture work was completed by the year end, wilh tl)e remainder expected to be completed by late Spring. 11ie Trust's sliare of Losis for Ihc year wa% £4,924,942, which was for site infrastru¢ture and highways upgrades. 'fhe fourth and final parcel uf land was sold in February 2020. The T]wt's shair of income from these salcs in 2020 was £16,280.124, along with £913,514 of cotnpcnsation from Western Power. The related c08t of sales was £9,164,332. Financisl Review of the year During the year, roial incoime from Ilie Pem]anent F.ndowment amouiited to £18,088,889 {2019.. £9,540,465) with rcnts, licences and wayleave4 froin the Trn%t's property wrtfolio totalling £345,772 {2019.. £363,827) and divideiids and interest income froib financial investment8 lotalling £549,4791201(J.. £740,176). Tlie £16,280,124 laiid ￿1¢$ in KH8 Limited is in Other Trading Activities and the conipensatioh of £913,514 is in Sundry Income. The ¢98t of roi8ing funds for other TradEng Activities was £9,164,33212019.. £3,315,974}. The ¢osi of achieving the Trn4t'8 other income rclating to property managcment eXpe￿￿¢S and inyestment ¥naiiagenieiit expenses iotalled £154,699 {2019.. £156.727). Other Coslb relate to wpwrt activilic8 of £85,755 and governance costs of L22,314. The Trust's investments increased in value by £1,912.94] 12019.. £13,249.897), in addition to £24.4 million invested during the year. Total Net li)coii)e Iincludii)g investn)ent gaii)s) of £10.574,73012019.. £19,203.1511 15 tlie total return on the T￿￿t'S Pennai)ent Endnwi)¢nl, a return of17.9 / 12019 46.4/} for rl)e year. I'he fiJnd% made available for di5tributioii to benefi¢iari¢s in 2020 is detennined by tlie application of the lons-ten distribution rate wiihiii the Tr￿st.5 Invesln)ent Policy, set at 3.350/0 siiice 2016. Overall, the proportion uf the Pennaticnt Endowmettt made available 2020 was £1,155208 12019.. £1.400.768).

TIIE KING EILNRY VIII F.NDOWF.D TRV%T, WARWICK {Fouiided by I.eltci's P74tent dated 15 MAY 154S) TRUS'I"EF&*' RF,PORT In addition 10 income froni Ihe Pei'inanenl Endowi)ieJit Ih¢re was iiitei'esl income of £363 (2019.. £1,442) from the TO￿ Share re%eJves in the BeJ)efL¢iarieb lii¢oine FunLI. In April 2020. inve%tmenl.4 lield in tli¢ CCLA Geti¢ral Investment Colf were switched from Income Unil$ to A¢cumulaiion Units. Inco]ne 1% siniply reii)vested by CCLA lather tlien paid our a.% a dividend, which ￿ett￿$ thai ihe income from rhe8e unilg Ib reflected in Net Gal￿$ on Invesimenis ratlier than in 5nv¢siment Income. Reserves Tlie Trustees do nor, ag a nydtter oEpolicy, retain sig)nificaiit reserves. I'he Trust does l)tswevcr en8ure that sufficient cash resourccs are available to meei the distribution ￿ beneliciaries. Tl)e di8tribulions to the Churches {other than io the ProjeLt Pool) and WISF are n￿de in full durilig the year with rebkular quarterly pa)rynent8. Payment t(J the Project Pool is n)ade as required lor specifjc projects. At tl)e year end th¢ balaiicc was £106,96912019.. £196,349). Tlie Sharc, wliich is avoilable fur grdnt makin& t)'pically has a reserve of aboi)t Dine lo twelve mnnth$' distribution. Thi8 allows scope for flexibility wiiliiii brdnt making. At tlie year end dje balance was £159,M712019.. £245,492). Investment5 and Investment Polley The 'l'rust's I￿Ve￿tment Policy aims to prnduce slable. sustainable inbome to beneficiarie8 Ihat pr&%crves their long ierni purchaging power ivlTrilst also pre8ervEn¥ the real value of il)e eiidowment over the lojig tenn. 'I'his 1.% acliieved in part by the adoption of Total Returns accounting from l January 2012. This was permitted by a Cliarity Commis8ion Order dated 22, Septcmber 2011. Further deiails on Total Returrns and tlie cal¢ulati()n of tlic inco￿¢ to be applied each year are set out it) Note 110 tli¢ Financial Statein¢nts'. The Invaslmeni Poli¢y al.80 irtcludes ihe basi¥ for ihe aiiiouiits 10 niade available fof diqiriblltiot] for beneficiai"LCS. The di8tiibuiion 18 ba8ed on Ihe Yale Spendin¥ Rule. Tlie n)etliodology developed by Yale UiiiveT8ity aE)d adoptcd by a nuniber of Endowment Funds in¢oiporates a niimber of key elemet)ts.' the carrying forward of a proportion of the prior year's dislribuÉion, Ihe use of CPI ab ali appropriate inllaiion tactor and the Long"I'erm Su%tainuble Distribution Ratc11.Tsf)Rl 8pplied 10 the value ol'invesiments. Tlie Invesimeni Polacy require8 that these elejttents are kepi undcr regular review. Froni 2016 the LTSDR has remained ai 3.35/0. In order 10 mcet the 3.35 % LTSDR and to cover net operating expenge8 {c. 0.22ts/) of the endowment) tlie Tn￿tee$ have set an invwtment target of 4.5 /0 ioial return, after adju81ing for inflation. As part of the review of Ihe Inve5tmcni Policy aiid the parameters used an the Yale Spct]ding Rule tnethodology to alculaie the Appropriation each year the Trnslees l￿d previously agreed to am¢nd the weiO)ling belw¢¢n prior year AppropriatiotVa88et value from 80..20 to 50..50 frurn I" Jajiuary 2017. For 2019, it wag agreed as a one-off, to ¢alculai¢ the Appropriation based on 2018 in¢reased by inflation. Tlie 2020 cal¢ulation reverted back to the regular Calculation, bllt also included investments made in January 2020. (See Noie I 'Tot81 ReNrn' and 'lncome Applicaiion, for funher details.) Th¢ Trubt's asset allocaiioii seeks to diversify risk whilsl achieving optimunJ return8 ov¢r tlie long lem. Overall a8set allocation is i)a8ed on a stratebic overview undertaken with Asget Risk Consulrant8. Within tliat framework, financial inv¢8lrnent8 are managed though CCLA'S COIF Invesiinent Fund or ale managed by Quilter Chevioi, partly on a discretionary basi% and parrly oil an executiOD4)nly basis for E.TF trackers. Whi18t the ETF trackers ale equity ba8ed the oiber investmenis are alluLaied over a range of fii)allcial in5trumeiii8. including equities, b(Inds and comlnoditie8. Propcrty is bplil between direLi lioldings and 2 property fuiids managed by Savill8 and CCLA. Ca8h funds are wilh Royal London Absel Managen)ent. l-he Trust's inve8rments are ¢tsn$tsnily r¢vi¢wcd and changes made when appropriaie and on profesbional advice. The Tru8t seeks to nianage it]ve.4tments having r¢gard for social, environmental and etliical standards. It recognises that tlie financial a8S¢tq are subject to tlie investm¢Dt managTerb' own policies Li) relatiot) to social. environmental, ethscal and governance %tandard8 and behaviour. The Trust also anvesls ii) land and propety. where it enqures that it meet8 all legi41aiion aiid thai the value of thc abSets' is not underinined by i￿]011n￿ these issues. LAnd for devtlopment l-he land at L4.uropa Way 18 held by KH8 1.imited, the Trust's wholly owned subsidiary. which wa¥ set up ta dcvelop and tlieii ￿1[ Il)e land. The final parcel of land for residential dev¢lopn)ent wab sold diirijig the year. At ihe end i)f the year the only land retained wa.% land wailing to be transferred to local auihoriti¢s free of Cl￿rge to meet plannin8 obligations. Tl)e Trustees l)ave engaged profe&sional advisors to help promote ils land holdings.

THE KING HENRY VIII ENDOWED TRUST. WARWICK {FoiiiJded by Letters Pateiit daled 15 May 1545) TRUSTEES. REPORT Risk Maiiagement 'rhe TNst¢es maintain a r¢Lyister of tli¢ Inajor sirategiic, business and operaiioiial ri.%k8 thai the TTUSt laces, whicli 15 revi¢wed on a r¢gJular basis. RisL% are minimised the Clear deleu7ation of r¢spon.sibilily for the mitigaii()n ot each area of risk and regular reporting of action iakeii at tull Trnstee Meeting8 8t)d Sub Commiiiee Meetingg. Trustces consider tliat the major long iemi linaiicial risk is the potential for reduced returns on inv¢stmenr% negatively impacting the value of the permanent endowinent to die deiriment of current and futuie bcnefJ¢iari¢s. In partEcular th¢ inipacl ol. iiEflalion reducing real returns alid lower investment property valueb in the mcdium temi are coiicern8 for the Tlubt. Re¢ogni8ing these isbues, th¢ Tnjst lias adopted the uqe of a toial retun18 approach in ordcr to stabilise dislributioiis to benefi¢iarie5 and maintains close contdLtb Wlth iiq invcsimeiit tnanagerq, inveshnent advisor and Property managing agents with reS￿t to tl)e future outlook foT investments. Covid 19 liad negliuFible impact during ihe Yel￿ and is not expected to have a material impact it] 2021. The majur operational risk relates to tlic Itrntied r&source8 Utili8ed by ihe Ttijst and the dependence upon key individuals to undenake the Trust's activities. The T￿st relies upon the Clerk and Deputy Clerk to undertake day to day activities and encourages Tru%iees to take interesi in particular aspect8 of the Trust's a¢tiviiies iii order lo provide the ne¢essary cover should thib b¢ ryc￿sary. Plans for Future Periods As a permanently endowed charity wliere the majority of distribution to beneficiaries is clearly defined wiiliin the governing documents the primary focu% on future plans is the managenicnt of the T￿st.5 fftnveslments. Land sales from Europa Wtty at)d Hampion Magna liave now b¢en completed. with final Pdyment received in January 2021. Tliis will be invested in line with tlie Investmeiii Policy. Publle Benefit The Tru8tew give regard to the Charity Commis8ion guidance on public benefit and consider that in so far 08 tlie objtttivc.% of the Tn)st are to provide for religious. educational and othei cliatitabl¢ acrivities within the town of Warwick. The Tru.sice% consider that the8¢ objectives are mel lE￿oUg]1 Ihe distribution of funds in accordance witli the Trust's govcrning do¢umenrs, whieh fulfil the public benefit requirement. Statement as to disclosure of information to auditor The'fTUStees who weir in office on tlie date ol. approval ol. tliebe financial siateinents liave confinned, as far as they are awarc. that Iliere is no relevant audit info[n￿tion of whicli Ilie audiiots are vnaware. Each of the Trustees have confirnicd Iliai they have taken all the steps tliat they ouglit to have iaken Trustees in order lo make themselves awar¢ of any relevaiit audit iiifomiatioji aL)d to eslabli51i tliat it lias been Comm￿11¢ated to the iiuditor. Approved by the on 28, June 2021 alid signed on their behalf by.. Chairnian Chairnian of Finance & Investtnellt Committee .Q*-. Clerk and Re¢eiver 12 Fliglj Street Warwick CV34 4AP

THE KIIYG HENRY VIII ENDOWF.D 'TRUST. WARWICK TRVSTEES. RESPONSIBILII"IE8 IN TIIE PREPARATION OF FINANCIAL S1'AI'EMF.NTS The Tnksiee8 are re%ponsible for prepariniy Il)e Anniial Rq?nrt and the fiiiancial Sratements in acLordance with applicablelow and regul()iions. Charity law require.% t])e TINsiees to prepare Fiiiancial Staternents for eacli financial year. Under that law the Trubiees have clected to prepare the Finajicial Statement% iii accordaJKc with Unilcd Kingdom Gei)erally Accepted Accouniing Practice iiicluding FRS102 'The FinaiiLial Reporting 8iaiidard applicable in the UK and RepubliL uf Ireland" and applicable law. Tlie Financial Siateinenis are required by law to give a true aiid fair view of the of affairs of tlie ¢harity aiid of the incoming resources and application of re.%our¢es ol thc cliariiy for tliat period. In preparing those Fiiiat)cial Siatemenlb, tl)e Trustees are required to.. lelect suitsble accountijig poliLies and Ilien apply them consiblently,. observe tli¢ meihods aiid principles iji tlie Charities SORP: mak¢ judgements and estiinates llial are reasonable and prudent. state whether applicable accounting Standards have been followed and give details of any departures., and prepare the Financial Staiernenls on the going concern ba81% Ut)less it is inappropriate to pre8ume that the cliaiily will continue in businesb. The Trustees are respvnsible for keepiiig propcr accounting records which disclose wilh reasonable aL¢uracy at any lime ihe financial position ot the charity and lo enable ihcm to ensuie that the FindnLial Siateinents comply will) tlie requirtrmenib of the Charities Act 201 l. They al'e also r¢qpot]8ible for saftbyuarding ilie assets ot the chdrity and Iience for taking reasoiiable steps for tlie preveniion and dei¢ctinn of fraud and other irregulariii¢s.

INDEPF.NDTr.iN'I' AL,DITOR'&i RF.PORT TO'I'FIE TRIJSTLES O 'I'HF. KING HI4 NRY VIII F.NI)OWED'I'RUS'I', WARWICK Opithion We liave audited the ¢on801idated flnancial $tatements of King HeEry Vlll Endowed TnL8t, Warwick (thc 'ts)arent Charity") and its subsidiarie8 (thc 'group') for tlie year ¢nded 31st Dwember 2021) which ¢atnpri8C thc CO￿￿0]]datcd Sratements of Fit]ancial Aciivitic8, Charity Statcmct]18 of Financial Aciivities. C(>118alidatcd Balanc¢ Sheet, Charity Balance Sheet. Sratcment of Cash Flowg al￿ to thc financial .%taiements, including a sujninary of 8ignificant accounting policiw. The financial reporting framework tliat has bcct] applied in their preparation is applicabl¢ law ond United Kingdom Accounting Standards, including FRS 102 'Tlie Financial Reporting Standard appliLable in the UK and Republic of Ir¢land" IUnit¢d Kingdam Generally Accepted Accounting Practice}. In our opihion, the fit)an¢ial 8tatements'. give a true and fair view of the state of the group's and ot tlie parent charity's atTairs as at 31, December 2020 aiid of the group's and tlie paivnt cliaiity's inLonie and expei)diture fur the year tlien ended; have been properly prepar¢d in accordance with United Kiii&dom fj¢n¢rally A¢cept¢d Ac¢oui)tin¥ PraLlice; and have been prepared in accordaiice with th¢ requirements of tlie Charities Act 2011. Bas1% for oplnlon We cot)ducted our audit in accordance with Internaiioi)al Standards on Auditing (UK) {JSA8 (UK)} and applicable law. Our i.esponbibililies undcr those standard.s are ￿rther described in the Auditor'.$ regponsibilitie.s for the audit of the financial statements section of our report. We are independent of the charity in accordance t]ie eihical requirement8 thai are relevani to our audit of thc financial slaicments in ihe UK, including the FRC'S Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requiremei)ts. We believe ihat the audit evidence we have obtained is ￿uffiCient and appropriate to proiide a basis for our opinion. Coneluslons relating to going eoneern In audiiing Ihe financial staiements, we have concluded that the iru8tees' use of the going concern ba.$i.s of accounting iii the preparalioii of ihc financial siatement$ is appropriate. Ba%ed on the work we have perfomied, we have not identified any material uncertainties relating to events or cond2tions that, individually or collectively. may cast gignificant doubt on the cliarity5 ability to continue as a going concern for a period of at least twelve months from when tl)e financial statements are authoTh%ed for igsue. Our respongibilities and rhc re.SPOJL8ibilitics of the trustees with respect to going ¢on¢¢rn ar¢ dewribed in the relevant s￿tion.% of this report. Other infornjation 'I'he other information comprises the inforniation included in tlie annual, other thali the finat]cial statements atid our auditor's r¢]x)rl tjicrcon. Our opinion on the tinancial 8tatements does not cover otlier information and, except to Il)e exteiii otlierwisc cxplicitly statcd in our report, we do not express any form of assurance conclusion tliereon. lil cunnertion with our audit of the financial sthiements, our respon8ibilily is io read the other infomatioj) and, in doinbF so, cunsider wheilier the other infornialitsn is materially incoijsisteiii witli Ihe fiiian¢ial slateinenls or our knowled¥Te obtained in the audit or othenvise appeats ￿ be malerially misstated. If we idenlify such malerial inconsisleiictes or apparent material mLbStatements, we are required to deiemiine whether there is a Lnaterial Inisslatemenl til tlie financial statejneiits or a material mi5Statement of the otlier intorination. If, based oil ihe wtsrk we have perlonned, we conclude that there is a material inis5tatement ot. diLS Other intorLnatLOll, Wt are required to report We have nothing to report in this regard. Matters on which we are requlred tfj report by exceptlon In light of ihe knowledge and under¥iallding of tlie group and the parent charity and its environment obtained in the course of the audii, we have noi identified material missiaiemenis in the Tn)stees' Report. Wc I￿ve nothing to report in respect of the followinbF Iiiatttrs in relation to which the Charities (Accountb. ￿]d Reports'} Regyulations 2008 I'equire us to repvrl to you if. in our opinitsn.. tlie infornMtion given in ihe fitJan¢ial statements is incon%i8tent in any material re8pe¢t with the Trustee.%' Report,. or Sufficient accounting rectsrds have not been kept.. or Ilie f]nancial stateineiit5 are not in agreeitteni with Ille accounting> iecords; or we have not reLeived all the ii)forniation dnd explanatiollb we require for our audit.

INDEPENDENT AUDITOR'S REPORT TO THF, TRUS'fEi ES OF THE KIING HENRY VIII LNDOWED TRUST. WARWICK Responsibilitie$ of Triistees As explaijied Iiiore fully li) thc tru%tee%' Tewtisibslities siAtenieni Sei out on paue 7. tli¢ trustees (who are also ¢h¢ directOTS of the parent cliarity f()r thL purpi)8c% of company l(IwI are respot)sible for tlie preparation ot" the tinan¢ial statcn)ent% and f()i bcii)g saiisfied Ihat Illey give a In￿ and fair view. alld for suLh inleTtYal control ab tli¢ InJ¥tees detemhiiie is ncc¢88ary to ciiable the preparation of finiincial biatements that are tree ttvm maierial mi&sialeJneiit. wliether due to fraud or ¢JTOr. In preparing the financial 8tatemet)t8, the trustee8 are responsible for asse&sinb the gruup's and the parenl charity's ability to continue &$ a going ¢on¢etn. diqclo8ing, as appliLdble, matiers r¢laled tv gioingF coiiLem and using the goiiig concern basi8 of accounting unless the tNstees either intend to liquidare Ilie ¢h#rity or tts Lease operations, or have iio reali.%tic Mltemativ¢ but to do so. Aiiditor'$ re&pon%ihilities for tli¢ audit of the fiiiancial stAtements We havc been apwinted a8 auditor under %e¢tioii 144 of ili¢ Charities Acl 2011 and repori in a¢¢ordance with the Abt and r¢lcvant regulations made or h&ving effect thereund¢r. Our objectives ale to obtain rea8onable assurance about whether tlie finaii¢ial siateni¢nts ats a whole are free froiii material missialemcnl, whether duc to fraud or error. and its issue an auditor's report thai includes our opinioji. Eieawnable a$8urance i8 a high level of as¥urance but is noi a guai'aniee Ihdl an audii ¢oiiduLted in accordance witli ISAS IUKI will alway8 deteei a maierial mi88tateinent whet] it exisis. Misslateinenis Can arise froin fraud or error and are con4idered mat¢rial if. individually or in (he ag&iregare, I1￿Y ¢ould reasonably be expected lo itifluence the economic deci8ions of u%ers taken on the ba51% of the financial statements. Irrcgularitics, including fraud. are inst￿lLe$ ol non-compliaiice witli laws and regulalioiis. We design procedures in line with our responsibilities, outlined above. io delect material misstatements in respect of irregiblarities. including fraud. Ba4ed on our understaiidinbT uf the Gn)up its aLlivilieb, we id¢ntitied Ilial tlie prii)cipal risks of non- coinpliance with laws and re¥Tulatiunb relaied to Ilie anli-bribery, Corruption and fraud, iiioney laundering. and we ¢on%idered tlie extent to ￿thiell non-compliance inight have a material effect oti tlie flnancial statements. We algo carL￿idered those laws and reujulationb Iliai have a direLt iinpact die preparation of tlie financial statemenis, su¢li a8 the Cliariiies Act 2011. We evaluated the t￿tee￿. and managem¢nt'5 incenlives and opportunitie5 for fraudulet)t manipulation of the financial %iatemenis {in¥luding the risk of override uf coiitiol8) and detennit)ed that tlie princspal ri8k8 w¢re r¢lated to posting maiiual joumal enlrieb to manipulate fjnancial peilVrn￿rtee, management bias tlwougli judgement8 and assuinption8 in i¥nificant accout)ting estimaieb, in particular in relation to fuiid accounting, and significant one-off or uiiusual tranbactions. Our audit pi'ocedures were de¥i&ined to respond lo those identified riskq, including non-compliance with laws and regulatioiis (irrebFulariiies) and fraud tlial are material to the flnancial %latement.8. 1)ur audit proceduirs included but were not limited tv.. t)iscu*sin¥T with the trustees and managiement their policies and procedures regarding compliance with law5 and regulations- Communi¢ating identified laws and re&Yulativns Éhrougliout our ellgagement team and remainingi alert to any indieaiionq of non-compliance Ihrollghout oui audit; and Considei"in¥ Ilie risk of acts by the charity wliich were contrary to applicable laws and rtgulaliot]s. including fraud. Our audit procedures in relation to fraud included but wer¢ t)ot litnired io.. Making enquiries of the uvstees and managen)enl on whether they had knowledge of any actual. 8usp¢otcd or alleged fraud.. Gainii)gi an ￿nd￿St￿]ding of ihe inteTnal ¢ontrols establis1)ed to mitigate risks relaied to traud; Di%¢us.%ing arnong8t tl)e eE)gagement team Ilie ri%ks' of fraud: and Addressing the riskq of fraud tlwougli management ovcrrsde of control8 by performing journal et]try tetsting. There are in]ierent limitations in the audit procedure8 de.%¢ribed above and the primary respo￿$1b11itY far the prevention dnd dele¢iion of irregJLilariiieq ijicludiiig fraud re81s wilh maiiagcnient. As with any audii, there rcmaincd a risk of non- deieciioii ol. irregularitie4. a% tliese tnay invtslve collu%ion, forgery. ii)ientional omissions. mi$repr¢8entation% or tl)e override oFinternAI control8.

INDLI PF.J¥DENT AUDITOR'S REPORT TO THE TRUSTEES OF I"HE KING HF.IYRY VIII F,IYDOWED 1'RUS'I', WARWICK A fiuther description of our re.4ponsibilitics for the audit of tlie financial statemenL8 is located oll the Fil￿nCial Reporting Council's website At mvw.fir.0rg.uklaudilors￿spollSlb1jitie4. '1-lii% description fornts parl of our auditor's report. Use of the Alldlt report We have been appointed audiior under $CCiion 144 of the Charitie8 Act 2011 and report in accordan¢e witli ihe Act and r¢¥Tulation% made or having effect Ihereunder. Our responsibiliry 18 to audit at)d expre%s an opinioli on the finaiicial slateinentb. in accordance with applicable law aiid Iniemaiional Standards Auditing IUKI. Tliose .8tsndard% require us to comply with tlie Financial Reporting Council's Ethical Standard. Our audit work has been undertaken so ihat we ight btatt to the charity's trustee$ tho.se matters we Are rcquired to slate ro Iliem in an auditor's report and for no other pury)o$e. To th¢ fullesi extent pernjiiied by law, we do not accept or a8%uitte responsibility to anyoi)e other thali the charity and the charity, trnstees as a body for our audit work, for this report. or for the opinions we have forn]ed. Signed.. David Hwse MazaT8 LLP Chartered Accountants and Statutory Auditor FiTSt Floor Two Chamberlain Square Bimiingham B3 3AX Dale.. Mazars LLP is eligible for appointment a.8 auditor of the charity by virtue of its eligibility for appointment a5 auditor of a company under section 1212 of tlie Companies Act 2006. 10

OOV] co f4tr- 00 tr-r r-4*

tr-N ow- pl￿• Jv

THE KING HENRY VIII ENDOWED TRUST, WARWICK BALAf4cE bHEb'fs AT 31st Deceniber 2020 GROUP CIIARITY 2020 Notes 2020 2019 2019 FIXED ASSETS Investment4 56,944,421J 30.629,965 56,944,4311 30.629,966 CURRENT A8SETS Siock Dcbtor%: due after one ycar T)ehtthTh: due wiihin nt]c year Cash al bank and in hand 12 13 14 2,295,576 7.261,581 5.553,747 11,638,833 8,919,414 9,3041,147 14,023.288 20,415.383 6.798,945 2,951,932 18219,561 36,734,247 9,750.877 24,474,161 CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR 15 (6.364.159) 17,684,543) (283583) (2.346,264) NET CURRENT ASSETS 11,855,402 29.049,704 9,467,294 22.127,897 NET ASSETS 68,799,831 59,679,669 66,411,724 52,757,863 RESTRICTED FUNDS Perjnanent Endowment Funds Beneficiaries Income Fund 17 68J33A15 206A16 59,113.893 565.776 66,14SJ08 266,416 52,192,087 565.776 08,799.831 59,679.669 66,411,724 52,757,863 The financial staieinenis on pagts 9 to 27 were approved and authoiised for issue by the Trustees OLI 28 June 2021 and were bigned on dieir behalf by.. Chairn]an Chairn]an of Finance & Inves(ment Commilt¢e Clerk and Receiver

'rHF. KINC HLNRY Vlll ENDOWED TRUST, WARWICK STA"IF.MTr:NT ()b CASII Tr LOWS For the ye¥4r ended 31s1 Deeember 2020 GROUP 2020 CIIARITY 2020 2019 2019 Statenient of Calh 14lows C&8h from operaiin¥ uitiviiies.. Net cfish provldod by/{used IÉ)) operAtlng actlvltlos 12,390.673 9.686,474 2.251,193 15,163.8011 Cash from inveqiin&i aciivili&8.' Dividend%. iniere81 and rents Income from %ub4idLary Proceed from sale of inv&%tments Purcha￿ of inve8iments 895.614 1.157,154 1.092.368 1.323.922 12.3ql.061 7,257,515 8,783.928 12,100.200 8,7X3,928 11,400.750) 130.501.723) 11.41K).750} 12.100300 (30.501,723) N¢1 cash problded by invvtlng aetivitles (23J05.909) 8,540.332 (10.1)48.094) 15,964,615 C&4h from financing ￿tIvitIes". N¢t esh from finathelng &ctiThities c.ha￿ge In eAsh & c$h equRvalent5 in yesr Cfish & ea%h equlv. at the beginning of year (11.115336) 20.415J8J 18,226.806 2.188.577 18.7(K.g01) lo.8￿,814 I1.6￿,833 858.019 CAsh And cAsh equlvfilents at the end of year 9JOO.147 20.415.383 2,951,932 11.658.833 Rtconcllltttioii of Ntt Ex enditiire to Cash Flo￿ froni O Activities NLI Ill¢l)iiiell¥xpendilurel for lh¢ year AdjusiiiienL8'. ICiaiNsllL039es on Investments Dividen(L$, Inte￿%1 and rents Income fr￿M Sub.%idiary Dccreo5&{IIKrease) in sio¢ks De¢￿a￿tI{1￿rea.$C} in debtors IDc¢re&seylncrease in Crediiors 9,120,162 17.703.016 13,653,801 20.074.835 (1,912,941) {13.249.897) {895,614} {1,157.154} {1,912,941) (13.249.897) {1,1192,368) 11.323,922) (12JSI,OfJl) (7.257,515) 2,294 476 5J.19,167 {2.054,677) {1.674.060} 7.971,455 91.114 0,016.183 {2,062,681) (5.556,113) 2.148.811 Nei e8h provided byllused in) opertlons 12Jl)0,673 9.686.474 2,251,193 (5.163.801) n#1 IC¥sh Cash Ca.¥h in haThJ ulvalents 9JOO.147 20.415.383 2.951.932 11.658.833 Tot#1 esh & c8sh equiY*len¢s 9JOO.147 20.415.383 2.951.932 11,658.833 14

TIIF. KIIYC IIFIYRY VJII F.NDOWFD TRUST. WARWICK NOTES TO THE FINANCIAL STATEMENTS For the year ended 31$t December 2020 ACCOUF4TING POLICIES Aecuuntlng conweiitio Tlit linancial slaiemei)Is are prepared under the histOTical cost convention as modified by the inclusion of iEive%tmeiits at inarkel value. In piepai'ii)g Ilie fi[￿ncial slateinellts.. the charity I￿5 followed ALLUUlltin¥ and Rvporling by Cliai"Ilie5'. Siaieiileni of Recommended PTaLtice applkLable to cliarities preparing their accounts in accordance willi Ilie Financial Reporting Siandard 102 applicable in the and Republic of Irelaiid, Ihe Fii)anLial Reportii)g Standard applicable in the United KingdoJ)i and Republic of Ireland IFRS 102) and Ilie Chdfiiieb Aci 2011. The Tn]st constitutes a public benefit entity as dtlined by FRS 102. The Trusteeq ¢onsideT Iliat Il)etE are Do material un¢ertainlies about the Trust's ability to continue a concerii. The niosl siyiificanl area¥ of uJic¢rlaint)I that affect the carrying value of H%set% held by tlie Trusl are the Y￿r-e1]d valuations of ¢oiiuntrci&l propei'ly and land, especially land wilh developnient potential (see tlie liivestsnents and Inveslinei)t PLilicy, Lat￿ for Developnieni aiid Risk M(i[￿￿ement geLtions of the Trustees, Annual Report for more inlurnydtionl. Basls of Consolldatioii The financial ythiements. of die ¢I￿nIY dnd its subbidiary, KH8 Limited, are consolid<lted on a linc-by-line basis Iv pivdube Ilie 'Gioup' Iiuiiibvrs. KH8 Liiiiited's a¢¢ousiliiig rtf¥renL¢ is 31, M<ly, bul the financial inforn]ation wiihin ihis report includes KH8 Liniited result8 for the 12 moiiths ended 31° December. Grvup relv4ted pJrty tran$#ctioDs The company ha￿ taken advanlagye of Ilie related parties exejnption contained in FRS102 and has not dibLIubed tranbactions ￿t￿ sls wholly oKqied subsidiary. Iiicoming resources Incomiiig resources are rwogniqed once the charity hos entitlement to ihe resour¢es. it is probable that the Tesouires will be received and their nionetary valu¢ Can be Ineasured with sutTicient reliability. Rents recelvable Rents receivable are accounted for in the year to whicli they relate on an 2ccruals ba818. Investment ineome Inve.stment income is accounted for in the year Eo which it relates on an aecrualg basi8 for LOIF inve8tm¢nl8 and on a r￿e11[ab]e basis for listed invesimenis. The income is gross of management feeslcosis. Sundry 1￿coMe %undry in¢om¢ in 2020 18 comp¢n.%ation re¢eiv¢d from Westem Power Di8tribution relating to power ¢able8 acro￿￿ the development land in KH8 l.imited. Other trading iiicome Otlier trading iijcome i8 sale of land in the charity's 8ubsidiary, KH8 Lim&ted. Kevenue from the sale of land 18 recogni%cd when all tlie following conditions are salisfi¢d.. the Company has transfe￿ed th¢ si¥nifi¢ant riskn- and r¢wards of ownership to the buyer; the Cornpany retain.s neither Coniinuing majiagerial involvement ro the degree usually a8sociated with owner8hip nor eff¢ctiv¢ control over the goods sold. the amount of revenue can be measured reliably: it is probable Ilial Ilie Company will receive Ilie consideralioll due uiid¢r the iransaction; and th¢ cost$ incurred or to be iiicurred in r¢spe¢l of the transaciion can be measured r¢liably. Interest receivHble Interest receivable accounted for in the year lo which it relates on an a¢cnwls basis. It is accounted for in the year to which it relates on an accruals babl%. Resources expended Liabilities are recognised as resources expettded as soon as there is a legal or ¢on8iruciive obligarion commxtling the charily 10 tl)e expenditure. All expendiwre is accounted for on accrual.% ba.818 and has been ¢lasbifJed uiider lieadings that aggrega￿ all cosis related io tlie category.

'I'HE KtTrlG HENRY VIII ENDOWED TRUST, WARWICK NOTES TO THE FINANCIAL STATEMENTS For the year ended 31st Decejnber 2020 Grants to ToTrvn Shnre beneficiaries Grants are tnade to third partEes in furti)eraJice ot the charitable objectives of the Trust. The grants are accounted for wliere either the Trustees have agreed to pay the grant withuut condition and thc recipient has a reasonable expecratitsn tl?at tliey will receive a grant, or any conditiun attaching io the grani 1.8 outside the cot]trol of the-l rnst. Cost ot. generating funds- re Investm¥nls The costs of g¢nerating> fund> consist of property mana¥emeni expenses and inve8tment management costs. Cost of8ener¥ling funds- re Other Trading Ineome The cosi tsf sales related to the sale of land in the charity'8 subsidiary, Kl.18 Limited. Charitable actlvltles Chailtable activitles consisrs of grant8 made. Governanet e•$ts Govemai)ce co. iiicurred specilically related to protecting nr cnhan¢ing the valu¢ of thc land and to bring d)e land to market, after adjusting for Cost of sale, whibh ib the proportion of expeeted total co8ls 10 attribute to the expected total income recorded in li)come. Finaiicial instruments The Trust only has financial abset% and financial liabilities of a kind that qualify as babie financial insirument8. Basic finanLial illslruments are initially recognised at transaction value and subs¢quelltly me(1sured at thcir 8ettlement valiie. Total Reillrns The accumulated total rcturn (i.e. all net incom¢ and aiiy capital gainsllobses) less ony pan prevEou8ly Set aside for di.%tribuiion to beneficiaries 18 tr¢ated a8 the 'unapplied toial retuni" Eacli year ihe total return in the year 1.8 added to the'unapplied total return" and the aniounl Iheji applied (i.e. distributed) 18 deducted. Wholi impleinet)ting the total retum8 approacli it was not pobsible to accuraiely identify rhe split of the Pemianent Endowmient Fuiid betwe¢Ji Il)e 'original gift" that Laiinoi be distribuied io beneficiaries and the "unapplied total rcmrn" whicli can. It was Iheiefore agreed to uge the value of ti)e Pem)anellt Endowinent Fund (prcviou8ly thc Capital Fund) at tlie date of the 1978 Scl)em¢ a8 tlie'original gifi" ri)is wa% £338,281. At I. January 2012 the Pernianent Endowment Fund was split into Ilie 'urigiAal gift" of £338,281 and the 'unapplied total return" of £23,182,056. 16

THE KING IlbNRY VIII ENDOWED TRUST, WARWICK NO'fLS TO THE FINANCIAL STATEMENTS For the year ended 315t December 2020 Jneome Applieatlon Under Total Retums, it is the TTUStees' responsibility to determine what amount should be tranbferred froin the 'uiiapplied ioial return" for di8lribution 10 bencficiaries, on a babis that is equitable for ix)ih cu￿nt aiid fuwre benefiLiaries. Th¥ broad principle adopted by l-rnstees is lo adopt a level of diAtribution rliat is Co￿]￿te￿IlY acliievable over ihe econoiniL Cycle and wl)ich al.%0 allows for the permanent endowment 10 grow in line witli inflation. This LoiiLI Term Subtaiiiable Disti'ibulion rate 18 set in Il)e Invcsttnent Policy and froin 1° January 2016 is b¢t ai 3.35Q/o12015 and previously.. 4/.1. The atyrual Appropriaiinn in the year is nornially calculaied as.. 500/0 of the previoub year'b Appropriation increased in line with inflatLOll (using CPI). plu S(P/o of Ihe closing a88et values for ili¢ prior yeai iiiuliiplied by the 'Loii8 Terni Sustain&ble Di5triburion Rate" Until 31, December 2016 tlic calculation was based 011 80..20. rather than the Current 50..50 allocation. Followiiig an ut)Lisual year in 2019. where it IV<iS Lalculated as 2018's AppropTiatlOD pl￿$ inflation, the ¢alculalion returned to nornial for 2020. with the excepiion Iliat Il)e L-I'SDR was applied t(} tljc closing a.*8ei8 of ihe prior year plus the inve8tments mad¢ in January 2020. Funds accountlng Funds held by the charity are.. Pern)aneni Endowmejit F'und - Ihi.8 fujid Yepresentb the original cndowmet]1 odjusted by sub$equent ains aiid 105ses on investmenis, and %ince I, January 2012 til¢ net income less the incoine applicd. It) note 17 this is svbdivided inio the 'original gift" and 'unapplied total retum" as required by accounting tor lotal KeNms. Beiieficiarie5 Iijcome fund- this fund is the funds attributable to the beneficiaries. The opeJiii)g balance ib tlie fuJid5 applicd to benefi¢iari&8 but not disiributed by Ihe year end. Tlie addilioi)s during tlie year arc the incoine applied froin the Pemiat)ent Endowment and inierest incoine earned on fut]ds rtot disrributed. l-h¢ basi5 01. th¢ allocation of the diblribuiion is ii) the noie on Objectiveb on page 2. Tax KH8 Limited, tile sub8idiary. intends to distribute all profits under gift aid tlierefore no coryiration ¢ax is paydble, JudgemeDt5 in applying aecounting polleles and key sources of estlm4tlon un¢¢rtainty The preparation of tl)e financial 8t8tcments in cot]formity witl) generally accepted accounting principles requires the directors to make estimate% and &$8umpiionb tl)at affeci tl)e reported afftoui)ts of &8set8 and liabilities at the date of the finan¢tal statements and the reported an)ounis of r¢venuc and expenses during tl)e reported period. Actual re$Ult.￿ in the future could differ from ihese esiimales. li) this regard, tlie Tustees believe iliaÉ tlie Critical accounting policies where jud¥¥inents or estimations arr ne¢e$8arily applied are in relaiioji to the re¢ognitioi) of the profit un the sale of land in KH8 Lirniled and the valuation olbtock at the reporting date. To deierniine the profit the Trustees have had to eqtimate thc iotal eventual sales revenue fro]n, any futur¢ d¢velopmenl Costs for. tl)e lai)d. The overall prtsfii has then been prorated based on existing sale5 as a propurtion oftotal forecast 8ales. This tlien derives Ihe cli.￿t of bale and tlie clobing7 510ck. Now that all land has been sold the only variable is the eventual fitfdl cost. 17

THE KJNG HEf4RY VIII ENDOWED TRUST, WARWICK F40TES TO THE FIf4ANCIAL STATFMENTS For the yehr ended 31st December 2U20 DIVIDEf4DS GROVP 2020 CFIARITY 21120 2019 2019 Lolf Inv¢siment FuE)d COIF Property Fund Savills Cliarilies Property Fund Royal London Asset Managcment- cash fl￿dS Libted invesimcnts 87,014 si,iJo 44J39 29,791 302,633 249,496 61,850 48,131 87.1114 51,130 44 J.39 29,791 302,033 249,496 61.850 48.131 325,038 325,038 514,907 684,515 514,907 684.515 INTEREST GROUP 2020 CHARITY 2020 2019 20I9 Bar￿$ M(tnagit]g agents On Sal¢ ofpr0￿rtY Europa Way Con80rtium members Interest oil Loan io Subsidiary 31,010 3,806 32 4,884 48.381 3,806 32 4,884 3,925 216.256 266,858 34,935 57,103 2.11,689 275.580 OTHER TRADINC ACTIVITIES GROUP 2020 CHARITY 2020 2019 2019 Land sales 16,280,124 8.384,753 16,280,124 8,3R4,753 COST O* RAISIIYG FUNDS- Rt lT4VESTMENTS GROUP 2020 CHARITY 2020 2019 2019 Property manageinent expenses Inveslinenl management expenses 12.853 141,846 9.791 146,936 12,853 141,846 9.791 146.936 154.699 156,727 154,099 156,727 Investment rnat]agement expenses includes.. ¥to¢kbrokers fees. fceg and ¢oqi$ charged within the CCLA COIF5 aiid the Savills Charitie% Property Investment Fund alid strategic management. The siockbroker lias a discretionary manag¢meni role and oiily ¢hdrges a f¢e. I'liere are no capiral transaciioii ¢l)ar¥eb netted off agaiiist purcl)ase8 or sales. The inve8tmenr inanagement ¢xp¢nses now include fees for strategic advice, whicli until 2019 were in Support Co%t8. The 2019 costs have been ameiid¢d lo relle¢t thi8.

THE KING HENRY VIII ENDOWED TRUST. WARWICK NOTF.S TO THE b INANCIAL STATEMENTS For tlie year ended 31st De¢eEJ)ber 2020 COST OF RAISING FUNDS- Re o'fHkR TRADIL¥G GROUP 2020 CHARITY 2020 2019 2019 Cost from Sale re land sales 9,164.332 3.315,974 9,164.332 3,315,974 SUPPORT COSTS GROUP 202U CHARITY 2020 2019 2019 Adniinisiration fees Siindry expenses 75JOO 10,455 76,984 10.724 68,997 10?08 72,228 10,584 87,708 79JOS 82,812 Until 2019 inve8tment nial￿get1]e￿I exptllse% were included in Adn)ini8iration Fees. Tl)ey are iiow in Cost of Raising Fut)ds- re Inveslmeiits. The 2019 co&t8 have been amended to retlect this. GOVkRNILNCE COSTS GROUP 2020 CJ4ARITY 2020 2019 2019 Auditors, remuneration- for audit Auditor8, r¢muneration- for taxatiun compliance Trusiees, indemnity iRsuran¢e TTUStees' meeting costs 18,71)0 1.840 1,749 25 21.229 2.554 1,749 1.270 11,800 12,363 1.749 1,749 1,271 22J14 26,802 13,574 15,383 TRU%TEFS Noi)e of the Trustees receiv¢d any remuneration duringj either tlie Current or previtsu8 year. No expensc$ were reimbursed to Trustees during tlie year (2019.. Nil). io TIL4NSFTr.RS BL'fWELN Fuf4DS The Beneficiaries Income r.und tTai)sfer of £1,155,208 (2019.. £1,460.768) 1$ the Appropriation from the "unapplied total retum" element of the Perni¢inent Endowment Fund for Ihe year a$ calculatcd by th¢ Yale Spending Rule. 19

THb KING HENRY VIII ETrIDOWED TRUST, WARWICK No'rES TO THE Tr INANCIAL ￿•TATEMENT For the year ended 31st D￿ember 2020 12 STOCK C.ROUP 2020 CHARITY 2020 2019 2019 Development land lield for ￿1¢ 2,295.576 2,295.576 13 DEIITORS .. AMOUNTS FALLING DUE AFTER ONE YEAR GROUP 2020 2019 2019 2020 7,261.581 Loan to Subsidiary 7,261,581 14 DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR GROUP 2010 CHARITY 2020 2019 2019 .169,713 I2.004.402 42,919 106.009 4,651 4,654 970.147 938.076 29,651 22,098 4.051 5,467.166 81,927 4,654 Debtors Accrued In¢ome Prepaytllenis Solicitor's Clieni account VAT Loan io Subsidiary 702,131 6,742.545 ,919,414 14.023.288 6,798,945 5,553,747 -nic loan fron) the Charity to the Subsidiary is repayable once th¢ land held by KH8 Limited is sold. li)tereqt is ¢I￿rged at 3 /0 above the Bank of England Base Rate. 15 CREDITORS . AMOUNTS FALLING DUE WITHIN ONE YEAR GROUP 2020 CHARITY 2020 2019 2019 648 2,187,738 1,219535 16.002 1.680,480 160,868 lJ41,460 .943.814 1.496,841 2,187.738 3.832.695 66,915 100.354 1,598 16.002 Trade Creditors VAT Arnountb owed to oiher Charities GranL8 to buieficiaries Accruals Other Creditors 66,915 90,963 160,868 105.115 6J64,159 7,684,543 283,583 2,346,264 Oiher Creditorb ig forecast future Costs included in the Stolk calculation in respect of the land development in KH8 Limited. 22

THF. KING HF.NR Y VIII ENDOWED TRUST, WARWICK NOTLS 'fo THE bliYAINCIAL s'fATEMENTS Foi- the ye#r ejided 31st December 20211 FIIYANCIAL IN&il'RUMLf4T.S GROUP 21120 2019 CHARITY 21120 Fln8neial assets m¢asurcd ht fair valiie througli the Statement of Financlal Activitie$ Investments Loan Debtoi Cash 2019 48,528J.13 19,953.654 48.528.533 19.953,654 8,919.4J4 12,044.402 6.742,$4S 7.261,5RI 10,760.223 24.064.875 29.651 5,467.16.5 4,412,008 15.JOR,.32.5 68,208,170 56,062,931 59.7J2,737 47.990.725 Fioanclal Ilabllities measured at fair value tlirough the Statement t)f binancial Activlties Creditors 2,910.017 7,-517,274 17.000 2.188,386 2,916,017 7,517,274 J7,00 2.188,386 23

In￿1n￿r fVQV4D LTrUUUU.*

THE KING HENRY VIII ENDOWED I'RUST, WARWICK NOTES TO THE FINANCIAL ST ATEMEE4TS For tlie year tndtd 31yt Deeejnber 2020 19 TOWN CRANTS AWARDED- GROUP & CHARrrY 1.otwl Institutlon5 aiid Societles (>£1.000) All Saittts C of E Junior School & Emscot¢ Infant Scliool Ayle8ford Primary School Aylegford Secondary School Eludbr()oke Priinary Scliool Chase Meadow Community Cenll'e Citizen8 Advice- South Warwickshire Coten End Primary %cl)ool Cruse Bereavement Carc Evergreen School Friciidship Prtsject for Children Heath¢ote Parisli Church Ileathcole Primary School Ilelping Hands Community Project M￿On Hotspice Myton SclioDI Newbufgh Prin)ary school New Hope Coui)selling New Life Church Oken & Eyffler Charity (Springfield Mind)) Playbox Theaire Company Relate- Coventry & Warwickb'hire Safeline St Mary Imtna¢ulat¢ Catlioli¢ Prisnary School Waiwick Appr¢ntJ¢ing Charilies Wanvick Boat Club Warwick Disirict Foodbai Warwick LEA School Pupils- Summer Activities 2, Warwick S¢a Scouts Warwick Sports Club warwick.fown Council WarwiLksliire Ambulance Association Westgats Primary School Woodloes Primary School 2 Other Grants of1&$5 thL7n £JOOO each 2.375 4,704 9.890 2.0 14.598 10.000 3,￿0 3,000 60.0(X) 2.000 4.365 36,900 12,400 3,1100 6,000 10.980 20,000 4,500 3,000 5,000 7,000 30,0(10 2,520 4,745 2,750 24,460 6,172 3,000 i.(100 2,000 3,000 850 311,709 Individu#ls GrAiits 3 Ciraiits 10 11)dividual% 5,740 317,449 'Ihcrc were £66,915 graft¢￿ awai.ded but not paid at 31st D¢cember 2019. Of these. In 2020 £23,933 were paid, granis were reduced by £935 and £42,(147 remaiiitsj ouislanding at 31st Dec¢mb¢r 2020. Total Grantb awarded and paid in 2020 were £199.563 and toial gTant% awarded in 2020 but outs'ianding at 3 Isr December 2020 were £1 l8,821. 26

THE KING HEf4RY VIII F,NDOWED TRUST, WARWICK P40TES TO I'HL FINANCIAL STATEMEf4TS For the yeor eiidtd 31$1 Deeember 2020 21 TAXAI'ION No liability to income or Capital gains tax arise4 as the Trust's activities are charitable. The subsidiary's able profit is nil. 22 RELATbD PARTY TRAF4SAcfioNtri The Trust lias taken advantagc of ihe exemption contained in FRS102 and has not disclosed [raTI￿actIonS with its wholly owt)ed sub8idiary. During the year two tn]stees, Mr Jobburn and Mts Aslic. were also Govemors of Warwick Indepcndent Schoolb Foundation. One as the Foundation's noinination as a Nominative Trustee and 01)e as the Trugi's Nominaiive Governor to the Foundation. Tl)e r.OULidation ieceives 30/0 of the'frnst's income each year as required under th¢-fNst Scheme as directed by tl)e Charity Cot)uni$8iun. Rev. Brown is Vicar of St. Michael'8, Budbrooke, which receives a proportion of the Church Share as requir¢d by tlie I'rust S¢hcmc. He receiveb nv persoiial benefit and his appointment as a tru8lee has been approved by the Charity Commi84ion. Mr Thurley 1% a trustee of Warwick Appreniiciiig Charities IW AC). which r¢Leived a grant of £30,000 during 2020. The I'rust gives grants to WAC io allow tliem to provide grants. to young people in Wanvick. There is iio perstsi)al benefit. POST BALANCE SHEET EVEN'rs There ar¢ no post balance sbeet events. 28

THE KING HF.NRV VIII LNDOWED TRUST, WARWICK NOTES TO THE FINANCIAL S'I'ATEMENTS For the year ended 31st December 2U211 23 JNVESTMENT IN SUBSIDIARY The Trusi is the beneficial owner of KH8 Limited, which was set up to hold, develop aiid sell land at Europa Way. It is in¢orpor8ted in England (company nuinber 84855591. 2020 2019 Income 10.280,124 8,384.753 Cost of Sales 19.104J32) (3.315,9741 Admsiijslrative expenses (15,187) 116.3161 OPEIiAI'ING PROFIT 7,IM.605 5,052.463 Intere%t ReeeivAble Sundry Income 19.502 913,514 48,38 1 51,709 Interest Payable (216356) (266,R58) PROFIT ON ORI)INARY ACTIVITIES BEFORE TAXATION 7.817J65 4,885,69S Tax on profIt on tsrdinary aetivities PROFIT FOR TIIE FINANCIAL YEAR 7,817,365 4,885.695 2020 2019 CURRENT ASSTr.TS Cas11 Stock Debtot¥ 6a48,216 8,756,550 2.295.576 8,469,541 8,803,014 IS,211,230 19,521,667 CREDITORS: Amounts falling due within one year NET CURRENT ASSETS (12,823,121) 112,599.862) 2J88,109 6,921,805 NET ASSETS 2.388,109 6,921,805 CAPITAL AND RESERVES Called up sliare capital Profit and loy¥ 8CCOUtIt 2.388,108 6.921,804 SHAREHOLDERS, SURPLUS 2,388,109 6,921,805 29