Final Results - Year Ended 31 December 1999

Henderson TR Pacific Inv. Trust PLC 8 February 2000 HENDERSON TR PACIFIC INVESTMENT TRUST PLC Unaudited Preliminary Results for the Year Ended 31 December 1999 'Investments in new technologies produce excellent results' Key Points * Net asset value per ordinary share rose 107% from 60.9p to 125.8p. Final two months of 1999 saw a 49.2% rise in net asset value. * Share price advanced 128% to 117.0p. * Regional economic recovery gathered momentum. * Stock market advances focused on new technologies. Regarding prospects, Mr Iain Dale, the Chairman, says:- 'We expect the recovery in Far Eastern economies to be sustained, helped by an expected strengthening in global growth. Exports should remain strong and domestic economies are expected to recover. While some countries' prospects are capped by high borrowings we expect a generally favourable stock market environment spurred by further high growth in technology sectors.' For further information contact:- Michael Watt, Director and Manager Telephone: 020 7410 4100 Stephen Westwood Vicki Staveacre Head of Investment Trusts Henderson Press Office Telephone: 020 7477 5517 Telephone: 020 7410 4028 HENDERSON TR PACIFIC INVESTMENT TRUST PLC Unaudited Preliminary Results for the Year Ended 31 December 1999 Extract from Chairman's Statement 1999 saw a strong recovery in Asia's stock markets and economies. The company's net assets rose by 107% to 125.8p per share, which challenges previous high points. The share price advanced by 128% to 117p as its discount to assets narrowed to 7%. There was an optimistic end to the year, despite ultimately unfounded concerns over the 'millennium bug'. The company's net asset value grew by 49.2% in the final two months of 1999. Stock Markets The region's stock markets and currencies advanced in sterling terms over 1999. The major rises occurred in the larger stock markets with Hong Kong, Korea and Singapore achieving strong re- ratings. It was more than usually important to focus on investment themes and sector weightings, particularly as optimism for global technology gathered momentum over the second half year. Performance The Manager had anticipated the stronger stock markets in most countries and we were well positioned in the telecommunications and technology sectors, which showed notable advances. The company achieved a positive total return in net assets per share of 107% reaching 125.8p at the year end compared to 60.9p at the end of 1998. The share price advanced by 128% to 117p from an end 1998 level of 51.3p. At the end of 1999 the shares stood at a discount of 7% compared to a discount of 15.8% at the previous year end. The company's performance is measured against a peer group of investment trust competitors and a benchmark index. The 107% advance in net assets may be compared with an equivalent peer group return of 98%. The benchmark index, the MSCI AC Far East Free ex Japan Index, advanced by 67%. Revenue and Earnings Revenues fell sharply in 1999 as investment returns reverted to normal for a trust such as Henderson TR Pacific which seeks capital growth. Bond and cash holdings were replaced by equities and borrowings were invested in equity markets with a consequent sharp decline in yields. Gross revenues amounted to £2.9 million, a decline of 40% over the previous year. Earnings per share fell by 71% to 0.36p. Dividend As foreshadowed at the interim stage, there is no requirement to pay a special dividend for 1999. Consequently a maintained final dividend of 0.25p in respect of 1999 but no special dividend will be recommended at the forthcoming Annual General Meeting (AGM) in line with the company's underlying policy of seeking to maximise capital growth. HENDERSON TR PACIFIC INVESTMENT TRUST PLC Unaudited Preliminary Results for the Year Ended 31 December 1999 Share repurchase policy At last year's AGM shareholders approved proposals to buy back up to 14.9% of the company's shares. This followed the Board's concern at the historically high levels of discount at which the shares had traded, at times reaching more than 20%. Share repurchases make sense if the discount is high in its own right or relative to the company's peer group. A policy and procedure for share buy backs was implemented but no shares were repurchased in 1999. The Board will be seeking approval from shareholders to renew this authority for the year ahead. Purchases will only be made if the Board believes there will be clear benefits to the company and shareholders. Promotional activity The Board welcomed the initiative of the Association of Investment Trusts to promote investment trusts to a wider audience, and has fully supported the 'its' campaign at a first year cost to the company of £73,831. The Board also welcomed the decision by Henderson Investors to promote the Henderson brand name more forcefully. These important initiatives have supplemented the company's own efforts to promote itself both to financial advisors and existing shareholders. Prospects 1999 saw a welcome upturn in most of the region's economies. Currencies strengthened further and the necessary economic reforms continued to be implemented. We expect the recovery in Far Eastern economies to be sustained, helped by an expected strengthening in global growth. Exports should remain strong and domestic economies are expected to recover. While some countries' prospects are capped by high borrowings we expect a generally favourable stock market environment spurred by further high growth in technology sectors. This should allow the markets in which we invest to move firmly higher. HENDERSON TR PACIFIC INVESTMENT TRUST PLC Unaudited Preliminary Results for the Year Ended 31 December 1999 Statement of Total Return (incorporating the revenue account) Year ended 31 December Year ended 31 December 1999 1998 Revenue Capital Total Revenue Capital Total £'000 £'000 £'000 £'000 £'000 £'000 Total capital - 134,459 134,459 - (14,214)(14,214) gains/(losses) from investments Income from fixed asset 2,249 - 2,249 3,643 - 3,643 investments Other interest 618 - 618 1,149 - 1,149 receivable and similar income ------ ------- ------- ------ ------- ------ Gross revenue and 2,867 134,459 137,326 4,792 (14,214) (9,422) capital gains/(losses) Management fee (705) (705) (1,410) (838) (838) (1,676) Other administrative (474) - (474) (425) - (425) expenses ------ ------- ------- ------ ------- ------ Net return/(loss) on ordinary activities before interest payable 1,688 133,754 135,442 3,529 (15,052) (11,523) and taxation Interest payable (343) (1,028) (1,371) (316) (949) (1,265) ------ ------- ------- ------ ------- ------ Net return/(loss) on ordinary activities before taxation 1,345 132,726 134,071 3,213 (16,001) (12,788) Taxation on net return (600) 453 (147) (666) 554 (112) on ordinary activities ------ ------- ------- ------ ------- ------ Net return/(loss) on 745 133,179 133,924 2,547 (15,447) (12,900) ordinary activities after taxation Proposed dividend Final ordinary: 0.25p (514) - (514) (514) - (514) per share (1998: 0.25p) Special: nil per share - - - (1,542) - (1,542) (1998: 0.75p) ------ ---- ---- ---- ---- ------- (514) - (514) (2,056) - (2,056) ------ ------- ------- ------ ------- ------ Transfer to/(from) 231 133,179 133,410 491 (15,447) (14,956) reserves ====== ====== ====== ====== ====== ====== Return/(loss) per 0.362p 64.795p 65.157p 1.239p (7.515p) (6.276p) ordinary share (note 1) The revenue columns of this statement represent the revenue accounts of the company. HENDERSON TR PACIFIC INVESTMENT TRUST PLC Unaudited Preliminary Results for the Year Ended 31 December 1999 Summary of Net Assets 31 December 31 December 1999 1998 £'000 £'000 Fixed asset investments 280,263 129,075 Net current (3,013) 14,191 (liabilities)/assets ---------- ---------- Total assets less current 277,250 143,266 liabilities Creditors: amounts falling due after more than one year (18,614) (18,031) Provisions for liabilities - (9) and charges ---------- ---------- Total net assets 258,636 125,226 ====== ====== Net asset value per 125.8p 60.9p ordinary share Notes: 1. Return/(loss) per ordinary share Revenue returns per ordinary share are based on earnings attributable to the ordinary shares of £745,000 (1998: £2,547,000) and on the weighted average number of ordinary shares in issue during the year to 31 December 1999, being 205,540,359 (1998: 205,540,359). Capital returns per ordinary share are based on net capital gains attributable to the ordinary shares of £133,179,000 (1998: losses £15,447,000) and on the weighted average number of ordinary shares in issue during the year, as shown above. 2. 1998 Accounts The figures and financial information for the year ended 31 December 1998 are an extract of the latest published accounts of the company and do not constitute statutory accounts for that year. Those accounts have been delivered to the Registrar of Companies and included the report of the auditors which was unqualified and did not contain a statement under Section 237(2) or 237(3) of the Companies Act 1985. 3. 1999 Accounts The preliminary figures for the year ended 31 December 1999 have been extracted from the latest company accounts. These accounts have not yet been delivered to the Registrar of Companies, nor have the auditors yet reported on them. HENDERSON TR PACIFIC INVESTMENT TRUST PLC Unaudited Preliminary Results for the Year Ended 31 December 1999 4. Dividend A final dividend of 0.25p per ordinary share will, if approved by shareholders, be paid on 14 April 2000 to shareholders recorded on the register on 17 March 2000. The company's shares go ex- dividend on 3 March 2000. 5. Year 2000 The directors of Henderson TR Pacific Investment Trust plc have been advised by Henderson plc, and its subsidiaries ('Henderson') which provide investment management, UK custodial, accounting, administrative and company secretarial services to the company that the corporate action programme initiated by Henderson has been satisfactorily completed and that at the date of this document no material or significant problems affecting the company have arisen from the Year 2000 date change. Costs relating to this project were borne by Henderson. 6. Annual General Meeting The annual report will be posted to shareholders in March 2000 and thereafter copies will be available at the registered office at 3 Finsbury Avenue, London EC2M 2PA. The Annual General Meeting of the company will be held at 3 Finsbury Avenue, London EC2M 2PA on Monday 10 April 2000 at 12.30 pm. HENDERSON TR PACIFIC INVESTMENT TRUST PLC Unaudited Preliminary Results for the Year Ended 31 December 1999 Stock Market Performance Comparison for the year to 31 December 1999 Local Currency Sterling % Adjusted % South Korea 82.8 100.3 Taiwan 31.6 39.6 China* 41.8 46.4 Hong Kong 68.8 73.7 Thailand 35.4 35.2 The 8.8 8.5 Philippines Malaysia 38.6 42.8 Singapore 74.8 78.8 Indonesia 70.1 98.0 * The local movements on the China B Index have been calculated with reference to a US$ denominated price index. Henderson TR Pacific also has an investment in The Vietnam Fund, which is listed in Dublin. Vietnam has no stock market at the present time. Distribution of the Investment Portfolio As at 31 December 1999 As at 31 December % 1998 % South Korea 27.7 7.7 Taiwan 19.6 18.6 China 2.8 6.0 Hong Kong 23.1 26.3 Thailand 6.9 5.8 The 1.6 3.8 Philippines Malaysia 3.0 - Singapore 15.2 15.2 Indonesia - - Vietnam 0.1 0.3 Bonds - 16.3 -------- -------- 100.0 100.0 -------- -------- HENDERSON TR PACIFIC INVESTMENT TRUST PLC Unaudited Preliminary Results for the Year Ended 31 December 1999 Sector Analysis of Investments As at 31 December As at 31 December 1999 1998 % % Bonds - 16.3 Collective Investment 1.4 5.8 Vehicles Computers & Peripherals 6.9 7.3 Consumption 12.5 15.8 Electrical Equipment 2.8 3.6 Finance & Real Estate 12.6 10.1 Resources & Heavy 7.8 9.6 Industrial Semiconductors & 27.5 12.9 Electronics Software Services 2.7 - Telecommunications 18.4 7.9 Transport & 4.6 4.6 Distribution Utilities 2.8 6.1 ------- ------- 100.0 100.0 ------- ------ Top 20 Investments as at 31 December 1999 Company Country Sector Value of Investment £'000 SK Telecom South Telecommunications 12,532 Korea Dacom South Telecommunications 11,263 Korea Korea Telecom South Telecommunications 11,006 Korea China Telecom Hong Kong Telecommunications 9,688 Samsung Electronics South Semiconductors & 9,333 Korea Electronics Johnson Electric Hong Kong Electrical Equipment 7,950 Holdings Li & Fung Hong Kong Transport & 7,752 Distribution Pacific Century Hong Kong Software Services 7,194 Cyberworks Taiwan Semiconductor Taiwan Semiconductors & 6,610 Electronics JIT Holdings Singapore Semiconductors & 6,567 Electronics Television Hong Kong Consumption 6,390 Broadcasts Singapore Press Singapore Consumption 6,050 Far East Textile Taiwan Consumption 5,899 Cheung Kong Hong Kong Finance & Real Estate 5,889 SK Corporation South Resources & Heavy 5,510 Korea Industrial Datacraft Asia Singapore Semiconductors & 5,134 Electronics Housing & Commercial South Finance & Real Estate 4,916 Bank Korea Natsteel Electronic Singapore Computers & 4,902 Peripherals Dialer and Business Taiwan Semiconductors & 4,676 Electronics Shin Corporations Thailand Software Services 4,610 143,871 These twenty investments represented 51.3% of total investments compared with 53.1% at the previous year end.

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