Preliminary Announcement of Audited Results 
For the year ended 31 December 2012 
Chairman's Statement 
I have pleasure in presenting the Annual Report of Fidelity European Values PLC
for the year ended 31 December 2012. 
European equities advanced in 2012 following a volatile 2011. After a difficult
second quarter, in which anxieties were once again heightened by concerns over
the sovereign debt crisis, markets turned a corner in July when European
Central Bank ("ECB") President Mario Draghi stated that the ECB would do
"whatever it takes" to save the Eurozone. Sentiment improved further after the
ECB announced that it had agreed to an unlimited bond purchase programme to
lower borrowing costs for some indebted Eurozone nations. Towards the end of
the year, risk appetite increased on optimism that US lawmakers would reach an
agreement on budget talks to avert the so-called fiscal cliff. 
Against this backdrop, I am pleased to report that the net asset value ("NAV")
per share of the Company returned 24.7% and outperformed its Benchmark, the
FTSE World Europe (ex UK) Index, which returned 17.8%. Stock selection was the
prime driver of performance. In particular, holdings in the financials,
industrials and healthcare sectors performed well. However, there were some
stock specific disappointments, especially in the energy sector, which held
back returns. Overall, the focus remains on companies with solid balance sheets
and growing dividends. Gearing which was held in a range of 5% - 15% during the
year, also aided performance. A detailed review of the performance of the
portfolio is provided in the Manager's Review in the Annual Report. (All
figures are in sterling and are on a total return basis). 

                                                    NAV       Share       FTSE 
                                                              price      World 

One year                                          +24.7       +31.3      +17.8  
Five years                                         +8.6        +6.6       -5.1  
Since launch (1991)                            +1,608.6    +1,453.8     +474.3  
1 Data prior to the year ended 31 December 2011 is on a net of tax basis 
Sources: Fidelity and Datastream as at 31 December 2012 
Past performance is not a guide to future returns 
The Board continues to adopt an active discount management policy and share
buybacks have been made during the year. Whilst the primary purpose of our
policy is to reduce share price volatility in relation to net asset value,
buying in shares at a discount also results in an enhancement to NAV per share. 
Your Board has sanctioned share buybacks over the course of 2012 amounting to
2.7% of the issued share capital of the Company, a much lower figure than the
11.6% repurchased in 2011. The great majority of the repurchases took place in
the first half of the year whilst markets were weak. Further details may be
found in the Directors' Report in the Annual Report. 
I am pleased to report that the lower level of share price volatility relative
to the NAV apparent in the second half of 2011 has continued into 2012.
Furthermore, the level of discount has narrowed from 14.2% at the start of the
year to 9.9% at the year end. This has given rise to a share price total return
of 31.3% for 2012, ahead of the NAV total return of 24.7%. 
Improved sentiment towards continental European equity markets has undoubtedly
been a factor behind the narrowing of the discount. Re-establishing our
historically good performance record against the Benchmark Index, under Sam
Morse's management, has likewise been important. 
The Board intends to continue with its practice of paying out earnings in full.
The objective is one of long term capital growth and we will not seek to
influence the Manager to determine the level of income of your Company's
portfolio in any particular year. 
The Board has decided to recommend a final dividend of 27.75 pence per share
for the year ended 31 December 2012 (2011: 26.50 pence). This dividend will be
payable on 24 May 2013 to shareholders on the register at close of business on
15 March 2013 (ex-dividend date 13 March 2013). 
The proposed dividend increase for 2012 over 2011 is therefore 4.7%. Whilst we
emphasise that the increase is a function of stock selection and cannot be
extrapolated into the future, our Portfolio Manager, Sam Morse, continues to
focus on companies which are able to grow their dividends as being one of the
underlying factors in his stock selection. A further explanation of the
investment process can be found in the Annual Report. 
The Company gears through the use of long Contracts For Difference ("CFDs"). As
at 31 December 2012, the level of gearing was 11.1% and the Board has been
working within a range of 5% - 15%. Gearing made a positive contribution to
performance during the year, as can be seen from the attribution analysis in
the Annual Report. 
It is pleasing to note that the move to using CFDs as a means of gearing the
portfolio, introduced in 2011 in place of traditional bank loans, has been
positive. Operationally it has worked smoothly and it has been significantly
cheaper for the Company, with finance costs reducing from £2,617,000 in 2011 
just £326,000 in 2012; and this in spite of gearing levels actually on average
being higher in 2012. 
Investment performance was strong during the year and a performance fee is
payable, all cumulative past underperformance against the Benchmark Index
having been made good. The base fee paid and payable to the Manager is charged
fully against revenue. The performance fee is charged against capital. Further
details are included in the Directors' Report in the Annual Report. 
Simon Duckworth will step down from the Board at the conclusion of the business
of the Annual General Meeting on 16 May 2013. Simon has served on the Board for
just over 10 years and on behalf of the Board I would like to take this
opportunity to thank him for his invaluable contribution to the Company. We
wish him well in his future endeavours. In preparation for this, I am delighted
to confirm that Marion Sears was appointed a non-executive Director of the
Company on 17 January 2013 following a search using an external agency. Marion
has extensive commercial and investment experience and is currently the Senior
Independent non-executive Director of Dunelm Group plc, and a non-executive
Director of Octopus AIM VCT plc and Persimmon plc. Further details are included
in her biography in the Annual Report. 
In accordance with the UK Corporate Governance Code for Directors of FTSE 350
companies the entire Board is subject to annual election and re-election. The
Directors' biographies can be found in the Annual Report. The Directors have a
wide range of appropriate skills and experience to make up a balanced board for
your Company. With the exception of Simon Fraser, in the opinion of the Board,
all other Directors are independent. 
Simon Fraser, due to his previous employment relationship with the Manager and
his directorship of another investment trust managed by Fidelity, namely
Fidelity Japanese Values PLC, is deemed non-independent by the UK Corporate
Governance Code. The Board is convinced that Simon Fraser's experience serves
the Company well; and the Directors support unanimously his continued position
as a Director of the Company. 
In line with good corporate governance, the Board had an independent,
externally facilitated assessment of its performance during 2012. The
evaluation reported that the performance and contribution of the Board was
effective and all Directors were committed to their roles. There were no areas
of concern reported. 
The Board has considered the proposals for the election and re-election of all
of the Directors and recommends to shareholders that they vote in favour of the
In accordance with the Articles of Association of the Company, an ordinary
resolution that the Company continue as an investment trust for a further two
years was passed at the 2011 Annual General Meeting. A further continuation
vote will take place at this year's Annual General Meeting. The Company's
performance record has been excellent since launch with a NAV increase of
1,608.6% compared to an increase in the Benchmark Index of 474.3% (on a total
return basis). During the past 12 months the Company's NAV has outperformed the
Index by 6.9% on a total return basis and is also ahead of the Index over 3, 5
and 10 years. Therefore your Board recommends that shareholders vote in favour
of the continuation vote. A further continuation vote will take place at the
Annual General Meeting in 2015. 
The Annual General Meeting of the Company will be held at Fidelity's offices at
25 Cannon Street, London EC4M 5TA (St Paul's or Mansion House tube stations) on
Thursday 16 May 2013 at midday. Full details of the meeting are given in the
Annual Report and I look forward to talking with as many shareholders as
possible on this occasion. 
Investors who stayed the course in continental European equities have been
rewarded with an excellent year. Indeed, Europe was one of the strongest areas
for equity investment in 2012. 
There are a large number of high quality companies quoted on continental
European bourses, many also with extensive businesses in Asia and around the
world. Value will `out'; such stocks had become overly depressed by the waves
of poor sentiment surrounding the political situation in Europe, low economic
growth and budget deficits which have to be financed, high unemployment
especially in Southern Europe and of course the Euro. 
Whilst equities have regained poise, the outlook for earnings and dividend
growth is generally muted and one cannot pretend that the underlying political
and economic situation in Europe has improved dramatically. It does seem likely
that at some point in 2013 some of the worries will once again come to the
fore; and it follows that we may well see setbacks and volatility ahead. Our
response is to continue to focus on finding and investing in strong companies
which offer fundamental value and the prospect of making decent returns from
current valuation levels. We are fortunate to have a wide choice of investment
opportunities across the region. 
Humphrey van der Klugt
26 February 2013 
Susan Platts-Martin - Head of Investment Trusts, FIL Investments International
- 01737 836916 
Keren Holland - Corporate Communications, FIL Investments International - 0207
074 5262 
Christopher Pirnie - Head of UK Company Secretariat, FIL Investment
International - 01737 837929 

    Income Statement for the year ended 31 December 2012
                                       2012                             2011    

                     revenue    capital      total    revenue    capital    
                       £'000      £'000      £'000      £'000      
£'000      £'000  
Gains/(losses) on              -     93,403     93,403          -    (94,320)   
designated at fair                                                               
value through profit                                                             
or loss                                                                          


Gains on derivative            -     19,630     19,630          -      3,201    
instruments held at                                                              
fair value through                                                               
profit or loss                                                                   


Income*                   18,518          -     18,518     22,831          -    
Investment                (4,929)    (2,243)    (7,172)    (5,127)         -    
management and                                                                   
performance fees                                                                 


Other expenses              (629)         -       (629)      (710)         -     
Exchange losses on           (76)      (153)      (229)       (73)    (2,639)   
other net assets                                                                 


Exchange gains on              -          -          -          -      1,394    


                   ---------- ---------- ---------- ---------- ---------- --
Net return/(loss)         12,884    110,637    123,521     16,921    (92,364)   
before finance costs                                                             
and taxation                                                                     


Finance costs               (326)         -       (326)    (2,617)         -    


                   ---------- ---------- ---------- ---------- ---------- --
Net return/(loss) on      12,558    110,637    123,195     14,304    (92,364)   
ordinary activities                                                              
before taxation                                                                  


Taxation on return/         (503)         -       (503)    (1,511)        50    
(loss) on ordinary                                                               


                   ---------- ---------- ---------- ---------- ---------- --
Net return/(loss) on      12,055    110,637    122,692     12,793    (92,314)   
ordinary activities                                                              
after taxation for                                                               
the year                                                                         


                   ========== ========== ========== ========== ========== 
Return/(loss) per         27.78p    254.97p    282.75p     26.94p   (194.42p)  
ordinary share                                                                   


                   ========== ========== ========== ========== ========== 
Income from investments designated at fair value                                 
through profit or loss                                                           
Overseas dividends                                         15,301         
Overseas scrip dividends                                    1,435          
UK dividends                                                  570            
                                                      ----------     ---------
Income from derivative instruments held at fair value                            
through profit or loss                                                           
Dividends on long CFDs                                      1,162              - 
                                                      ----------     ---------
Other income                                                                     
Deposit interest                                               50             
Income from Fidelity Institutional Liquidity Fund plc           -             
                                                      ----------     ---------
Total income                                               18,518         
** Relates to overseas taxation only 
A Statement of Total Recognised Gains and Losses has not been prepared as there
are no gains and losses other than those reported in this Income Statement. 
The total column of the Income Statement is the profit and loss account of the
All revenue and capital items in the above statement derive from continuing
No operations were acquired or discontinued in the year. 
Reconciliation of Movements in Shareholders' Funds for the year ended 31 
December 2012 
                             share      share     capital    capital    
revenue      total  
                           capital    premium  redemption    reserve    
reserve     equity  
                             £'000    account     reserve      £'000      
£'000      £'000  

                                            £'000       £'000                 

Opening shareholders'           12,362     58,615       3,463    572,985     
13,117    660,542 
funds: 1 January 2011                                                            


Net (loss)/return on                 -          -           -    (92,314)    
12,793    (79,521)
ordinary activities after                                                        
taxation for the year                                                            


Repurchase of ordinary          (1,289)         -       1,289    (55,664)       
  -    (55,664)


Dividend paid to                     -          -           -          -     
(7,740)    (7,740)


                         ---------- ----------  ---------- ---------- ------
---- ---------- 


Closing shareholders' funds:    11,073     58,615       4,752    425,007     
18,170    517,617 
31 December 2011                                                                 


Net return on ordinary               -          -           -    110,637     
12,055    122,692 
activities after taxation                                                        
for the year                                                                     


Repurchase of ordinary            (292)         -         292    (12,457)       
  -    (12,457)


Dividend paid to                     -          -           -          -    
(11,578)   (11,578)


                         ---------- ----------  ---------- ---------- ------
---- ---------- 


Closing shareholders' funds:    10,781     58,615       5,044    523,187     
18,647    616,274 
31 December 2012                                                                 


                         ========== ==========  ========== ========== 
========== ========== 


Balance Sheet as at 31 December 2012

Company number 2638812

Fixed assets                                                                     
Investments designated at fair value through               583,938        
profit or loss                                                                   
                                                        ----------     --------


Current assets                                                                   
Derivative assets held at fair value through                16,448          
profit or loss                                                                   
Debtors                                                      1,940            
Fidelity Institutional Liquidity Fund plc                       30             
Cash at bank                                                20,450         
                                                        ----------     --------


                                                        ----------     --------


Creditors - amounts falling due within one                                       
Derivative liabilities held at fair value                   (2,747)        
through profit or loss                                                           
Other creditors                                             (3,785)        
                                                        ----------     --------


                                                        ----------     --------


Net current assets                                          32,336         
                                                        ----------     --------


Total net assets                                           616,274        


Capital and reserves                                                             
Share capital                                               10,781         
Share premium account                                       58,615         
Capital redemption reserve                                   5,044          
Capital reserve                                            523,187        
Revenue reserve                                             18,647         
                                                        ----------     --------


Total equity shareholders' funds                           616,274        


Net asset value per ordinary share                       1,428.97p      

    Cash Flow Statement for the year ended 31 December 2012

Operating activities                                                             
Investment income received                                  13,165         
Income received on long CFDs                                 1,162              
Deposit interest received                                       53             
Investment management fee paid                              (4,721)        
Directors' fees paid                                          (161)          
Other cash payments                                           (675)          
                                                        ----------     --------
Net cash inflow from operating activities                    8,823         
                                                        ----------     --------
Finance costs                                                                    
Interest paid on long CFDs and bank loans                     (335)        
                                                        ----------     --------
Net cash outflow from finance costs                           (335)        
                                                        ----------     --------
Overseas taxation recovered                                  1,106          
                                                        ----------     --------
Financial investments                                                            
Purchase of investments                                   (129,219)      
Disposal of investments                                    144,451        
                                                        ----------     --------
Net cash inflow from financial investments                  15,232         
                                                        ----------     --------
Derivative activities                                                            
Proceeds of long CFD positions closed                        9,038             
                                                        ----------     --------
Net cash inflow from derivative activities                   9,038             
                                                        ----------     --------
Dividend paid to shareholders                              (11,578)        
                                                        ----------     --------

Net cash inflow before use of liquid                        22,286         
resources and financing                                                          
                                                        ----------     --------
Cash flow from management of liquid resources                                    
Fidelity Institutional Liquidity Fund plc                        1         
                                                        ----------     --------
Net cash inflow from management of liquid                        1         
                                                        ----------     --------
Net cash inflow before financing                            22,287        
                                                        ----------     --------
Repurchase of ordinary shares                              (14,055)       
Loans repaid                                                     -        
                                                        ----------     --------
Net cash outflow from financing                            (14,055)      
                                                        ----------     --------
Increase in cash                                             8,232         
The above statements have been prepared on the basis of the accounting policies
as set out in the annual financial statements to 31 December 2012. This
preliminary statement, which has been agreed with the Auditor, was approved by
the Board on 26 February 2013 and agreed by the Auditor on 27 February 2013. It
is not the Company's statutory financial statements.  The statutory financial
statements for the financial year ended 31 December 2011 have been delivered to
the Registrar of Companies. The statutory financial statements for the
financial year ended 31 December 2012 have been approved and audited but have
not yet been filed. The statutory financial statements for the financial years
ended 31 December 2011 and 31 December 2012 received unqualified audit reports,
did not include a reference to any matters to which the Auditor drew attention
by way of emphasis without qualifying the report and did not contain statements
under section 498(2) and (3) of the Companies Act 2006. The annual report and
financial statements will be posted to shareholders as soon as is practicable
and in any event no later than 13 April 2013. 
-0- Feb/27/2013 17:03 GMT
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