Interim Results

BAILLIE GIFFORD SHIN NIPPON PLC 26 August 1999 BAILLIE GIFFORD SHIN NIPPON PLC INTERIM RESULTS FOR HALF-YEAR TO 31 JULY 1999 PRESS ENQUIRIES: SARAH WHITLEY TEL 0131 222 4000 UNTIL 5.00PM * Net assets per share up by an exceptional 129.8% to 184.1p at 31 July 1999 from 80.1p at the end of January 1999. * Tokyo Stock Exchange Second Section Index up by 89.9% and JASDAQ OTC Index by 107.5% in sterling terms over same period. * Economy gradually recovering, with strong growth in the first quarter of 1999 and some monthly data showing improvements. * Strong share price performance by companies in the more dynamic areas of the market and companies with high quality managements. * Yen no longer expected to be weak, hence Company no longer hedged. * Outlook remains positive with corporate restructuring increasing and government policy still stimulative. * Smaller companies continue to offer attractive opportunities in fast developing areas of the economy and borrowings have been increased to take advantage of the improving background. The following is the interim statement for the six months ended 31 July 1999 which has been neither reviewed nor audited by the auditors. The Board approved the interim results on 26 August 1999. This statement is being printed and will be sent to all shareholders on 10 September 1999. Copies will be available for inspection at the Registered Office of the Company or may be obtained on request from the Managers and Secretaries after that date. BAILLIE GIFFORD SHIN NIPPON PLC STATEMENT OF TOTAL RETURN (unaudited and incorporating the revenue account*) For the six months ended 31 July 1999 Revenue Capital Total £'000 £'000 £'000 Realised gains/(losses) on investments - 48 48 Unrealised gains/(losses) on investments - 33,670 33,670 Currency (losses)/gains (note 1) - (494) (494) Income (note 2) 283 - 283 Investment management fee (259) - (259) Other administrative expenses (49) - (49) ----------------------------------------- NET RETURN BEFORE FINANCE COSTS AND TAXATION (25) 33,224 33,199 Finance costs of borrowings (92) - (92) ----------------------------------------- RETURN ON ORDINARY ACTIVITIES BEFORE TAXATION (117) 33,224 33,107 Tax on ordinary activities (27) - (27) ----------------------------------------- RETURN ON ORDINARY ACTIVITIES AFTER TAXATION (144) 33,224 33,080 ========================================= TRANSFER (FROM)/TO RESERVES (144) 33,224 33,080 ========================================= RETURN PER ORDINARY SHARE (note 4) (0.45p) 104.46p 104.01p ========================================= BAILLIE GIFFORD SHIN NIPPON PLC STATEMENT OF TOTAL RETURN (unaudited and incorporating the revenue account*) For the six months ended 31 July 1998 Revenue Capital Total £'000 £'000 £'000 Realised gains/(losses) on investments - (1,145) (1,145) Unrealised gains/(losses) on investments - (900) (900) Currency (losses)/gains (note 1) - 533 533 Income (note 2) 311 - 311 Investment management fee (115) - (115) Other administrative expenses (49) - (49) ----------------------------------------- NET RETURN BEFORE FINANCE COSTS AND TAXATION 147 (1,512) (1,365) Finance costs of borrowings (75) - (75) ----------------------------------------- RETURN ON ORDINARY ACTIVITIES BEFORE TAXATION 72 (1,512) (1,440) Tax on ordinary activities (21) - (21) ----------------------------------------- RETURN ON ORDINARY ACTIVITIES AFTER TAXATION 51 (1,512) (1,461) ========================================= TRANSFER (FROM)/TO RESERVES 51 (1,512) (1,461) ========================================= RETURN PER ORDINARY SHARE (note 4) 0.16p (4.75p) (4.59p) ========================================= BAILLIE GIFFORD SHIN NIPPON PLC STATEMENT OF TOTAL RETURN (incorporating the revenue account*) For the year ended 31 January 1999 Revenue Capital Total £'000 £'000 £'000 Realised gains/(losses) on investments - (1,890) (1,890) Unrealised gains/(losses) on investments - 4,301 4,301 Currency (losses)/gains (note 1) - (906) (906) Income (note 2) 648 - 648 Investment management fee (232) - (232) Other administrative expenses (113) - (113) ----------------------------------------- NET RETURN BEFORE FINANCE COSTS AND TAXATION 303 1,505 1,808 Finance costs of borrowings (183) - (183) ----------------------------------------- RETURN ON ORDINARY ACTIVITIES BEFORE TAXATION 120 1,505 1,625 Tax on ordinary activities (34) - (34) ----------------------------------------- RETURN ON ORDINARY ACTIVITIES AFTER TAXATION 86 1,505 1,591 ========================================= TRANSFER (FROM)/TO RESERVES 86 1,505 1,591 ========================================= RETURN PER ORDINARY SHARE (note 4) 0.27p 4.73p 5.00p ========================================= *The revenue column of this statement is the profit and loss account of the Company. All revenue and capital items in the above statement derive from continuing operations. BAILLIE GIFFORD SHIN NIPPON PLC SUMMARY OF NET ASSETS AT 31 JULY 1999 (UNAUDITED) ============================================================================== 31 JULY 1999 31 JANUARY 1999 % of % of total total £'000 assets £'000 assets ============================================================================== ASSETS AT MARKET VALUE Listed overseas 38,524 54.7 17,894 53.7 Unlisted traded on OTC market 29,865 42.5 10,656 32.0 ------------------- --------------------- Total equities 68,389 97.2 28,550 85.7 UK government bond - - 4,466 13.4 Cash at bank and in hand 1,444 2.0 779 2.3 Net current assets/(liabilities) 553 0.8 (470) (1.4) ------------------- --------------------- Total assets (before 70,386 100.0 33,325 100.0 deduction of bank loans) Bank loans (note 5) (11,833) (16.8) (7,852) (23.6) ------------------- --------------------- Equity shareholders' funds 58,553 83.2 25,473 76.4 =================== ===================== Net asset value per ordinary share (note 6) 184.1p 80.1p Ordinary shares in issue 31,805,357 31,805,357 ============================================================================== TEN LARGEST HOLDINGS AT 31 JULY 1999 ============================================================================== % of total % of total assets assets 1. Yamada Denki 4.0 6. OBIC 2.7 2. Aiful 3.8 7. Aeon Credit Service 2.6 3. Fancl 3.0 8. Drake Beam Morin 2.6 4. Shohkoh Fund 2.9 9. Okinawa Cellular Telephone 2.6 5. Paris Miki 2.8 10. Taiyo Ink Manufacturing 2.5 The above holdings represent 29.5% of the total assets before deduction of bank loans. BAILLIE GIFFORD SHIN NIPPON PLC NOTES ============================================================================== 31 JULY 1999 31 JULY 1998 31 JANUARY 1999 £'000 £'000 £'000 ============================================================================== 1. CURRENCY (LOSSES)/GAINS Realised exchange differences (343)+ (352) (230) Movement in unrealised exchange differences (151) 885 (676) ----------- ----------- ----------- (494) 533 (906) =========== =========== =========== + Includes losses on forward contracts of £280,000. 2. INCOME Income from investments and interest receivable 283 311 648 Other income Nil Nil Nil 3. No interim dividend will be declared. 4. RETURN PER ORDINARY SHARE Revenue return (144) 51 86 Capital return 33,224 (1,512) 1,505 Return per ordinary share is based on the above totals for revenue and capital and on 31,805,357 ordinary shares, being the number of ordinary shares in issue throughout each period. There was no dilution of the above returns. The number of outstanding warrants throughout each period was 2,518,031. 5. Bank loans of £11.8 million (Yen 2.2 billion) have been drawn down under yen loan facilities which are repayable between August 1999 and July 2002 (31 January 1999 - £7.9 million (Yen 1.5 billion)). Since 31 July 1999 bank loans of Yen 700 million have been repaid and a further Yen 500 million has been drawn down, repayable August 2004. 6. The 2,518,031 warrants 2005, which are exercisable at 200p, would not result in a dilution to net asset value. 7. The financial information for the year ended 31 January 1999 has been extracted from the full accounts which have been filed with the Registrar of Companies and which contain an unqualified Auditors' Report. 8. The accounting policies applied in calculating the interim figures are consistent with those used in the Annual Financial Statements. Managers, Secretaries and Registered Office Baillie Gifford & Co 1 Rutland Court EDINBURGH EH3 8EY

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