Final Results

Baillie Gifford Shin Nippon PLC 28 February 2005 BAILLIE GIFFORD SHIN NIPPON PLC Results for the year to 31 January 2005 For the year to 31 January 2005, Shin Nippon's net asset value rose by 23.0% and the share price rose by 30.8%+. The Board and Managers are optimistic about future returns in Japanese small capitalisation equities. • We had strong returns in the Real estate and construction and Financials sectors, which were the main contributors to the rise in the net asset value. • The comparative index* rose by 26.2% in the year. • In the six months to 31 January 2005, the Company's net asset value per share rose by 4.9% compared to an 8.6% rise in the comparative index*. • After particularly positive returns in the first three months of the Company's financial year, Japanese equities became more volatile owing to a slowdown in domestic economic growth and a range of global concerns. • As a consequence of the continuing upwards earnings momentum, valuations are low by historical standards. • The Company has maintained its gearing which contributed positively to performance over the last year. At the year end, net gearing stood at 9% of shareholders' funds. * The Company's comparative index is a composite index of the Tokyo Second Section Index, the TOPIX Small Index and the JASDAQ Index, weighted by market capitalisation, in sterling terms. + Past performance is no guarantee of future performance Shin Nippon aims to achieve long-term capital growth principally through investment in small Japanese companies which are believed to have above average prospects for capital growth. At 31 January 2005 the Company had total assets of £68.6m (before deduction of bank loans of £14.4m). The Company is managed by Baillie Gifford & Co., an Edinburgh based fund management group. 25 February 2005 - ends - For further information please contact: Alistair Way, Manager, Baillie Gifford & Co. 0131 275 2000 Mike Lord, Director, Broadgate Marketing 020 7726 6111 BAILLIE GIFFORD SHIN NIPPON PLC The following is the unaudited preliminary statement for the year to 31 January 2005 which was approved by the Board on 25 February 2005. No dividend is payable. STATEMENT OF TOTAL RETURN (unaudited and incorporating the revenue account*) For the year ended For the year ended 31 January 2005 31 January 2004 Revenue Capital Total Revenue Capital Total £'000 £'000 £'000 £'000 £'000 £'000 Gains on investments - 10,270 10,270 - 16,235 16,235 Currency gains (note 1) - 253 253 - 42 42 Income 598 - 598 524 - 524 Investment management fee (531) - (531) (389) - (389) Other administrative expenses (199) - (199) (160) - (160) Net return before finance costs and taxation (132) 10,523 10,391 (25) 16,277 16,252 Finance costs of borrowings (226) - (226) (170) - (170) Return on ordinary activities before taxation (358) 10,523 10,165 (195) 16,277 16,082 Tax on ordinary activities (34) - (34) (43) - (43) Return on ordinary activities after taxation (392) 10,523 10,131 (238) 16,277 16,039 Transfer (from)/to reserves (392) 10,523 10,131 (238) 16,277 16,039 Return per ordinary share (1.28p) 34.39p 33.11p (0.78p) 53.14p 52.36p (note 3) There was no dilution of the above returns in either year. * The revenue column of this statement is the profit and loss account of the Company. All revenue and capital items in this statement derive from continuing operations. BAILLIE GIFFORD SHIN NIPPON PLC SUMMARISED BALANCE SHEET at 31 January 2005 (unaudited) 31 January 2005 31 January 2004 £'000 £'000 NET ASSETS Listed overseas equities 58,459 38,320 Unlisted - traded on the OTC market - 10,791 - other unlisted 1,035 809 Total equities 59,494 49,920 Net liquid assets 9,092 1,451 Total assets (before deduction of bank loans) 68,586 51,371 Bank loans (note 4) (14,350) (7,266) Net assets 54,236 44,105 CAPITAL AND RESERVES Called-up share capital 3,060 3,060 Capital reserves 55,706 45,183 Revenue reserve (4,530) (4,138) Equity shareholders' funds 54,236 44,105 Net asset value per ordinary share (note 5) 177.2p 144.1p Ordinary shares in issue (note 6) 30,600,497 30,600,492 There was no dilution of net asset value at either date. BAILLIE GIFFORD SHIN NIPPON PLC SUMMARISED CASH FLOW STATEMENT (unaudited) Year to Year to 31 January 2005 31 January 2004 £'000 £'000 £'000 £'000 NET CASH (OUTFLOW)/INFLOW FROM OPERATING ACTIVITIES (226) 118 NET CASH OUTFLOW FROM SERVICING OF FINANCE (174) (168) TOTAL TAX PAID (35) (44) FINANCIAL INVESTMENT Acquisitions of investments (20,940) (19,423) Disposals of investments 21,275 18,588 Realised currency gain 367 207 NET CASH INFLOW/(OUTFLOW) FROM FINANCIAL INVESTMENT 702 (628) NET CASH INFLOW/(OUTFLOW) BEFORE FINANCING 267 (722) FINANCING Shares repurchased - (220) Bank loans drawn down 9,423 - Bank loans repaid (2,453) - NET CASH INFLOW/(OUTFLOW)FROM FINANCING 6,970 (220) INCREASE/(DECREASE) IN CASH 7,237 (942) RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET DEBT Increase/(decrease) in cash in the year 7,237 (942) Net inflow from bank loans (6,970) - Exchange movement on bank loans (114) (165) MOVEMENT IN NET DEBT IN THE YEAR 153 (1,107) NET DEBT AT 1 FEBRUARY (5,222) (4,115) NET DEBT AT 31 JANUARY (5,069) (5,222) BAILLIE GIFFORD SHIN NIPPON PLC TWENTY LARGEST EQUITY HOLDINGS at 31 January 2005 (unaudited) Name Business Market % of value total £'000 assets Goldcrest Condominium developer 1,716 2.5 USS Company Second-hand car auctioneer 1,537 2.2 Sanyo Shinpan Finance Consumer loans and credit cards 1,513 2.2 Sumisho Lease Specialist leasing operator 1,485 2.2 Fuji Seal Packaging and shrink-wrap materials 1,481 2.2 Arrk Design consulting 1,427 2.1 Fullcast Blue collar staffing services 1,333 1.9 CKD Pneumatic machinery 1,303 1.9 Sodick Manufacturer of electric machinery 1,303 1.9 SES Wafer polishing equipment 1,284 1.9 Point Clothing stores 1,269 1.9 Arisawa Manufacturing Specialist industrial materials 1,254 1.8 Nippon Light Metal Aluminium producer 1,229 1.8 Nissin Consumer loans and business finance 1,204 1.8 Tokyo Livable Real estate business 1,184 1.7 Kose Cosmetics 1,179 1.7 Nippon Thompson Needle roller bearings 1,168 1.7 SMBC Friend Retail broker 1,158 1.7 Kennedy-Wilson Japan Real estate finance 1,150 1.7 Sankyo Pachinko machines 1,148 1.7 26,325 38.5 BAILLIE GIFFORD SHIN NIPPON PLC NOTES (unaudited) 31 January 2005 31 January 2004 £'000 £'000 1. Currency gains Realised exchange differences 603 207 Unrealised exchange differences (350) (165) 253 42 2. No dividend will be declared. 3. Return per ordinary share Revenue return (392) (238) Capital return 10,523 16,277 Return per ordinary share is based on the above returns and on 30,600,496 (2004 - 30,631,725) ordinary shares, being the weighted average number of ordinary shares in issue during the year. 4. Bank loans of £14.4 million (Y2.8 billion) have been drawn down under yen loan facilities which are repayable between May 2005 and August 2011 (31 January 2004 - £7.3 million (Y1.4 billion)). 5. There was no dilution to net asset value per share at either date. The 2,517,891 outstanding warrants at 31 January 2005 are exercisable at 200p each on 30 April 2005, which is the final exercise date. 6. At 31 January 2005 the Company had authority to buy back 4,587,013 shares in accordance with the authority granted at the AGM in April 2004. No shares were bought back during the year under review. 7. The financial information set out above does not constitute the Company's statutory accounts for the year ended 31 January 2005. The financial information for 2004 is derived from the statutory accounts for 2004, which have been delivered to the Registrar of Companies. The Auditors have reported on the 2004 accounts, their report was unqualified and did not contain a statement under section 237(2) or (3) of the Companies Act 1985. The statutory accounts for 2005 will be finalised on the basis of the financial information presented in this preliminary announcement and will be delivered to the Registrar of Companies following the Company's Annual General Meeting. None of the views expressed in this document should be construed as advice to buy or sell a particular investment. This information is provided by RNS The company news service from the London Stock Exchange

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