Monthly Update

Lindsell Train Investment Trust PLC 18 May 2005 The Lindsell Train Investment Trust PLC As at 30th April 2005 Fund Objective To maximise long-term total returns subject to the avoidance of loss of absolute value and with a minimum objective to maintain the real purchasing power of Sterling capital, as measured by the annual average yield on the 2.5% Consolidated Loan Stock. Share Price GBP 112.50 Net Asset Value GBP 119.63 Premium (Discount) (6.0%) Market Capitalisation GBP 22.5mn Benchmark (21/2% Con Ann Avg Yield +4.8%) +0.4 Source: Bloomberg; NAV-Lindsell Train. Share Price quoted is closing mid price. See Benchmark definition. Performance History (based in 2000 2001 2002 2003 2004 YTD 2005 GBP) Net Asset Value % n/a +3.2 -9.6 +3.1 +23.7 +4.3 Share Price % n/a +18.5 -19.8 -8.7 +20.6 +11.2 Source: S&P Micropal. Based in GBP. Performance years listed Jan - Dec. Launch date 22 Jan 2001. With dividends reinvested. Past performance is not a guide to future performance. The price of units and the income from them may go down as well as up. Investors may not get back what they invested. 2004 Performance Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Net Asset Value % +1.8 +3.3 +0.3 +2.3 -0.1 +2.1 -2.0 +4.8 +3.8 +1.4* +0.0* +3.7 Share Price % -2.3 +6.0 -0.6 +0.6 +2.3 +2.7 +0.5 +0.5 +8.6 +3.0 -1.9 +0.0 Source: S&P Micropal unless otherwise indicated. Based in GBP. Performance years listed Jan - Dec. Launch date 22 Jan 2001. With dividends reinvested. *Source: Lindsell Train Limited. 2005 Performance Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Net Asset Value % +1.4 +0.3 +1.7 +0.8 - - - - - - - - Share Price % +8.9 +3.6 -3.5 +1.8 - - - - - - - - Source: S&P Micropal unless otherwise indicated. Based in GBP. Performance years listed Jan - Dec. Launch date 22 Jan 2001. With dividends reinvested. *Source: Lindsell Train Limited. Past performance is not a guide to future performance. The price of units and the income from them may go down as well as up. Investors may not get back what they invested. Industry Breakdown % of NAV Bonds 23.9 Preference Shares 13.8 Equity - Media 8.4 Equity - Banks & Investment Co. 4.2 Equity - Leisure & Ent. 9.3 Equity - Food & Beverage 24.6 Investment Fund 21.8 Cash & Equivalent (6.0) Total 100.0 Source: Lindsell Train Top 10 Holdings % of NAV Barr AG 10.8 US Gov Treasury 6.25% 10.5 Lindsell Train Global Media (Dist) 9.6 HBOS 9.25% Non Cum 9.3 Lindsell Train Japan (Dist) 8.1 2 1/2% Consolidated Loan Stock 7.7 Cadbury Schweppes 7.7 Diageo 6.1 UK Treasury 2.5% 5.7 Wolverhampton & Dudley Breweries 5.4 Source: Lindsell Train Fund Exposure Bonds Prefs Equity Funds Cash % of NAV UK % 13.4 13.8 41.3 4.1 (6.1) 66.5 USA % 10.5 - 1.3 - 3.2 15.0 Europe (ex UK) % - - - - - - Japan % - - 3.9 8.1 (3.1) 8.9 Global % - - - 9.6 - 9.6 Total 23.9 13.8 46.5 21.8 (6.0) 100.0 Source: Lindsell Train Fund Manager's Comments In a difficult month for markets the performance of the Company held up, with the net asset value ('NAV') advancing marginally, by 0.2%. Government bonds continue to display resilience. Having given back most of this year's capital gains in March due to concerns of higher inflation, in April both UK and US bond prices recovered by 3%. Another contributor was the increase in the director's valuation of Lindsell Train Limited, up 11%, reflecting both higher funds under management and higher profitability. Both Barr and Diageo were up 4% on the month, continuing their recent run of strong performance. Diageo is one of the two equity positions we have been building up over the course of the last year. Following decent capital performance the investment now accounts for 6% of NAV. Its latest rise was probably associated with the proposed takeover of a competitor Allied Domecq, by Pernod Ricard. Pernod Ricard's bid values Allied on 3.5 times enterprise value (market capitalisation plus net debt ('EV') to sales. Diageo currently trades on 3 times EV/sales even though Diageo's portfolio of spirits brands is vastly superior. The company owns directly the largest (Smirnoff) and seven others of the world's top twenty spirit's brands versus just one for Allied and one for Pernod Ricard. In addition Diageo owns 35% of Moet Hennessey, the fourth largest spirits brand, the value of which is not fully reflected in today's price, in our view. It is clear why the transaction is taking place, as two strategically weaker companies combine their businesses to achieve economies of scale and better presence in a competitive market place, but at the same time it serves to highlight the strategic strength of Diageo. Now that Diageo has almost sold its non-drinks assets (the rump of the stake in General Mills will be sold later this year) the exceptional free cash flow generative characteristics of the business are becoming more noticeable both in terms of progressive dividend hikes above the rate of inflation and an increased pace of share repurchase. Diageo has bought back more than 30 million shares in 2005 to date, more than 1% of outstanding stock, meaning it has retired well over 30% of its 1996 shares in issue (the date when buybacks became tax-effective in the UK). Another reasonable performer in the month was Nintendo. The company confirmed that having achieved its forecast financial results it would pay out just under 50% of its net earning as dividends, up from 20% last year. This equated to a 93% rise in annual dividend and a dividend yield today of 2.3%, almost as much as a Japanese utility. More importantly it represents a substantial change from its past practice of hoarding cash and together with the recent share repurchases, a recognition that management is beginning to tackle the issue of optimising returns on retained earnings. We think Nintendo will maintain the payout policy next year and, given the company's prodigious cash flow, may even raise it more some time in the future. It was announced at the end of March that Michael Lindsell resigned as a director of the Company. This was necessary in order to comply with the new Stock Exchange listing rules governing the independence of the board. In practice he will continue to be involved in the management of the assets of the trust with Nick Train in the same way as before. The board are exploring ways of changing its composition to allow him to return at some point in the future. Fund Manager Launch Date Denomination Nick Train 22 Jan 2001 GBP Year End Dividend Benchmark 31st Mar Ex Date: June The annual average yield on the 21/2% Payment: August Consolidated Loan Stock. The Board Management Fees Registered Address Rhoddy Swire Standard Fee: 0.65% Lindsell Train Investment Trust Michael Mackenzie Performance Fee: 10% of annual increase 77A High Street Donald Adamson in the share price, plus dividend, Brentwood Michael Lindsell above the gross annual yield of the 2 ESSEX CM14 4RR 1/2% Consolidated Loan Stock. ISIN Bloomberg Listing GB0031977944 LTI LN London Stock Exchange Disclaimer This document is intended for use by persons who are authorised by the UK Financial Services Authority ('FSA') and those who are permitted to receive such information in the UK. The information contained in this document does not constitute an offer or invitation to buy or sell any investments. Nothing in this document constitutes investment, legal, tax or other advice. Lindsell Train and/or persons connected with it may have an interest in this investment. The value of any investment in securities or funds and the income generated from them may go down as well as up and are not guaranteed. Past performance cannot be used as a guide or guarantee of future performance. You may not get back the original amount you have invested. Changes in foreign exchange rates may cause the value of your investment to go up or down. Some funds with higher gearing may be subject to higher volatility and the investment value may change substantially. The net asset value (NAV) performance of an investment trust is not the same as its market share price performance. Issued by Lindsell Train Limited Authorised and regulated by the Financial Services Authority 17 May 2005 LTL 000-025-7b Lindsell Train Limited 35 Thurloe Street, London SW7 2LQ Tel. +44 20 7225 6400 Fax. +44 20 7225 6499 info@lindselltrain.com www.lindselltrain.com Lindsell Train Limited is authorised and regulated by the Financial Services Authority. This information is provided by RNS The company news service from the London Stock Exchange FUSFSFSASISEEI

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