Final Results

Henderson TR Pacific Inv. Trust PLC 6 February 2001 HENDERSON TR PACIFIC INVESTMENT TRUST PLC Unaudited Preliminary Results for the Year Ended 31 December 2000 6 February 2001 Key Points * China shines in otherwise poor Far Eastern markets * Portfolio weighting switched from new technology to financial and property sectors Regarding prospects, Mr Iain Dale, the Chairman, says:- Many of our Asian economies will suffer disproportionately from a slowdown in the US economy. Action by the USA on interest rates should, however, mitigate the impact with scope also for reductions in interest rates in key Asian countries. Stock markets are expected to improve over the year. For further information contact:- Michael Watt, Director and Manager David Hardy Telephone: 020 7410 4100 Binns & Co Telephone: 020 7786 9600 Stephen Westwood Vicki Staveacre Head of Investment Trusts Henderson Press Office Telephone: 020 7477 5517 Telephone: 020 7410 4028 - MORE - - 2 - HENDERSON TR PACIFIC INVESTMENT TRUST PLC Unaudited Preliminary Results for the Year Ended 31 December 2000 Extract from the Chairman's Statement Henderson TR Pacific's primary investment focus is to seek out long term growth opportunities. Having been helped in the previous year by our focus on technology and growth companies our performance came under pressure in 2000 as these sectors declined. Stock Markets With the exception of China, Hong Kong and Malaysia which proved resilient, all the region's other stock markets fell sharply. Some sectors were hard hit. Technology and telecommunications retreated from high levels but financials and property, sectors which we have recently underweighted, staged a strong relative recovery. Investors' concerns reflected fears of a downturn in the US economy, which could lead to reduced demand for Asia's important technology exports. Performance The MSCI Far East Free ex Japan Index fell by 31.8%. The company's net asset per share declined by a similar amount to 85.7p. Portfolio Activity Although we are a growth orientated company we responded to the changed investment climate by switching from technology related investments to other areas, notably in the financial and real estate sectors. Our technology related exposure was 27.1% of total investments at the end of 2000 compared with 55.5% at the end of 1999. Finance and real estate related investments rose to 28% of the portfolio compared with 12.6% at the previous year end. We moved from a fully invested portfolio at the end of 1999 with borrowings of 8.4% invested in the markets to a less fully invested stance with gearing at the end of 2000 of 3.6%. Dividend We have proposed a maintained final dividend payment of 0.25p net per share. In addition, we are paying a special dividend of 0.30p net per share in order to distribute the minimum 85% of our income required to retain the company's status as an investment trust. The increased income arose because our cautious investment stance led to our placing more funds on bank deposit during the course of the year than we would normally expect. Board Changes I am pleased to welcome Miss Judith Unwin to the Board with effect from 18 September 2000. Judith has long experience with Asia's financial markets from the perspective of project and export finance, and is Head of UK Export Finance at BNP Paribas in London. As I mentioned in the Interim Report, we have now sadly said farewell to Sir Kerry St. Johnston, who has retired after eighteen years as a director of this company and its predecessor, and we wish him well. In addition, our advisor in Hong Kong, Frank Chao, has retired after eight years. I also record our thanks and good wishes to him. - MORE - - 3 - Corporate Governance Good governance now extends to companies' actions in relation to the environment, their employees and the community. We have adopted a positive policy in relation to this issue which will involve the examination and monitoring of the policies and actions of the companies in which we invest, thus over time encouraging management to address these issues. Charitable Contributions For more than ten years we have supported a charity in Thailand, the Foundation for Rural Child Development. Over the past year we have changed the focus of our donations to include a new charity, Sabakan, in Mindanao in the Philippines, at an additional contribution of £10,000 per annum. Outlook Asian stock markets performed poorly in 2000 as investors adjusted valuations to reflect lower expectations from technology related investments and uncertainties over the prospects for US economic growth in 2001. There was also an unusually large amount of political change which caused additional short term concern amongst investors. Sentiment improved over the early weeks of the new year as a positive signal was given in the USA by a decision to cut interest rates. This helps boost liquidity around the world and, if sustained with further rate reductions, will significantly improve the investment climate. We have responded to this unexpected move by raising our investment exposure to Taiwan and Korea at the expense of China and Singapore. We have raised exposure to technology sectors again at the expense of investment in the property and energy sectors. We expect Asia to suffer economic slowdown across the board in 2001, but conditions should improve as the year progresses and there is scope for widespread cuts in interest rates. In these circumstances stock markets are expected to improve over the current year. - MORE - - 4 - HENDERSON TR PACIFIC INVESTMENT TRUST PLC Unaudited Preliminary Results for the Year Ended 31 December 2000 Statement of Total Return (incorporating the revenue account) (Unaudited) (Audited) Year ended 31 Year ended 31 December 2000 December 1999 Revenue Capital Total Revenue Capital Total £'000 £'000 £'000 £'000 £'000 £'000 Total capital (losses)/ - (81,322) (81,322) - 134,459 134,459 gains from investments Income from fixed asset 3,393 - 3,393 2,249 - 2,249 investments Other interest 956 - 956 618 - 618 receivable and similar income ------- ------- ------- ------- ------- ------- Gross revenue and 4,349 (81,322) (76,973) 2,867 134,459 137,326 capital (losses)/gains Management fee (963) (963) (1,926) (705) (705) (1,410) Other administrative (603) - (603) (474) - (474) expenses ------- ------- ------- ------- ------- ------- Net return/(loss) on ordinary activities before interest payable 2,783 (82,285) (79,502) 1,688 133,754 135,442 and taxation Interest payable (399) (1,197) (1,596) (343) (1,028) (1,371) ------- ------- ------- ------- ------- ------- Net return/(loss) on ordinary activities before taxation 2,384 (83,482) (81,098) 1,345 132,726 134,071 Taxation on net return (868) 563 (305) (600) 453 (147) on ordinary activities ------- ------- ------- ------- ------- ------- Net return/(loss) on ordinary activities after taxation 1,516 (82,919) (81,403) 745 133,179 133,924 Proposed dividend Final ordinary: 0.25p (514) - (514) (514) - (514) per share (1999: 0.25p) Special: 0.30p per share (617) - (617) - - - (1999: nil) ------- ------- ------- ------- ------- ------- (1,131) - (1,131) (514) - (514) ------- ------- ------- ------- ------- ------- Transfer to/(from) 385 (82,919) (82,534) 231 133,179 133,410 reserves ======= ======= ======= ======= ======= ======= Return/(loss) per 0.74p (40.34p) (39.60p) 0.36p 64.80p 65.16p ordinary share (note 1) The revenue columns of this statement represent the revenue accounts of the company. - MORE - - 5 - HENDERSON TR PACIFIC INVESTMENT TRUST PLC Unaudited Preliminary Results for the Year Ended 31 December 2000 Balance Sheet At 31 December 2000 (Unaudited) (Audited) 31 December 2000 31 December 1999 £'000 £'000 --------------------- ------------- Fixed asset investments: Listed at market value - abroad 180,717 277,870 Unlisted - directors' valuation 1,806 2,393 ---------- ---------- 182,523 280,263 ---------- ---------- Current assets Debtors 435 281 Cash at bank and short term deposits 15,002 3,708 ---------- ---------- 15,437 3,989 Creditors: amounts falling due within one (1,775) (7,002) year ---------- ---------- Net current assets/(liabilities) 13,662 (3,013) ---------- ---------- Total assets less current liabilities 196,185 277,250 Creditors: amounts falling due after more (20,083) (18,614) than one year ---------- ---------- Total net assets 176,102 258,636 ====== ====== Capital and reserves Called-up share capital 10,277 10,277 Other capital reserves 161,412 244,331 Revenue reserve 4,413 4,028 ---------- ---------- Equity shareholders' funds 176,102 258,636 ====== ====== Net asset value per ordinary share 85.7p 125.8p - MORE - - 6 - HENDERSON TR PACIFIC INVESTMENT TRUST PLC Unaudited Preliminary Results for the Year Ended 31 December 2000 Cash Flow Statement For the year ended 31 December 2000 (Unaudited) (Audited) Year ended Year ended 31 December 2000 31 December 1999 £'000 £'000 £'000 £'000 --------- ------ ------ ---------- Net cash inflow from operating 1,241 1,078 activities Servicing of finance Interest paid (1,587) (1,342) ----------- ------------ Net cash outflow from servicing of (1,587) (1,342) finance Taxation UK corporation tax recovered (including - 99 ACT) UK income tax recovered 161 706 ---------- --------- Net tax recovered 161 805 Financial investment Purchase of investments (110,376) (110,345) Sale of investments 126,050 96,038 Cash outflow from forward exchange - (649) contracts ------------- ------------ Net cash inflow/(outflow) from 15,674 (14,956) financial investment Equity dividends paid (514) (2,056) Management of liquid resources Cash (placed on)/withdrawn from short (2,672) 5,816 term deposits ----------- -------- Net cash inflow/(outflow) before 12,303 (10,655) financing Financing (Repayment)/drawdown of multi-currency (4,550) 4,621 loan facility ----------- ----------- Net cash (outflow)/inflow from (4,550) 4,621 financing ---------- --------- Increase/(decrease) in cash 7,753 (6,034) ====== ===== Reconciliation of net cash flow to movement in net debt Increase/(decrease) in cash as above 7,753 (6,034) Cash outflow/(inflow) from management 2,672 (5,816) of liquid resources Cash outflow/(inflow) from debt 4,550 (4,621) financing ---------- --------- Change in net debt resulting from cash 14,975 (16,471) flows Exchange movements (497) (75) ---------- --------- 14,478 (16,546) Net debt at 1 January (19,559) (3,013) ---------- --------- Net debt at 31 December (5,081) (19,559) ====== ====== - MORE - - 7 - HENDERSON TR PACIFIC INVESTMENT TRUST PLC Unaudited Preliminary Results for the Year Ended 31 December 2000 Notes: 1. Return/(loss) per ordinary share Revenue returns per ordinary share are based on earnings attributable to the ordinary shares of £1,516,000 (1999: £745,000) and on the weighted average number of ordinary shares in issue during the year to 31 December 2000, being 205,540,359 (1999: 205,540,359). Capital losses per ordinary share are based on net capital losses attributable to the ordinary shares of £82,919,000 (1999: gains of £ 133,179,000) and on the weighted average number of ordinary shares in issue during the year, as shown above. 2. 1999 Accounts The figures and financial information for the year ended 31 December 1999 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. 2000 Accounts The preliminary figures for the year ended 31 December 2000 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. 4. Dividend A final dividend of 0.25p per ordinary share and a special dividend of 0.30p per ordinary share will, if approved by shareholders, be paid on 12 April 2001 to shareholders recorded on the register on 9 March 2001. The company's shares go ex-dividend on 7 March 2001. 5. 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 4 Broadgate, London EC2M 2DA. The Annual General Meeting of the company will be held at 4 Broadgate, London EC2M 2DA on Monday 9 April 2001 at 12.30 pm. - MORE - - 8 - HENDERSON TR PACIFIC INVESTMENT TRUST PLC Unaudited Preliminary Results for the Year Ended 31 December 2000 Stock Market Performance Comparison for the year to 31 December 2000 Local Currency Sterling Adjusted % % South Korea -50.9 -52.6 Taiwan -43.9 -42.6 China* +78.2 +92.3 Hong Kong -11.0 -4.3 Thailand -44.1 -47.8 The Philippines -30.3 -39.4 Malaysia -16.3 -9.7 Singapore -24.9 -22.1 Indonesia -38.5 -51.7 * The local movements on the China B Index have been calculated with reference to a US$ denominated price index. Geographical Distribution of the Investment Portfolio As at 31 December 2000 As at 31 December 1999 % % South Korea 14.9 27.7 Taiwan 13.8 19.6 China 17.7 2.8 Hong Kong 31.8 23.1 Thailand 3.9 6.9 The Philippines - 1.6 Malaysia 2.9 3.0 Singapore 14.9 15.2 Indonesia - - Vietnam 0.1 0.1 100.0 100.0 - MORE - - 9 - HENDERSON TR PACIFIC INVESTMENT TRUST PLC Unaudited Preliminary Results for the Year Ended 31 December 2000 Sector Analysis of Investments As at 31 December 2000 As at 31 December 1999 % % Collective Investment Vehicles 2.9 1.4 Computers & Peripherals 2.3 6.9 Consumption 15.5 12.5 Electrical Equipment 3.6 2.8 Finance & Real Estate 28.0 12.6 Resources & Heavy Industrial 5.1 7.8 Semiconductors & Electronics 10.4 27.5 Software Services 1.1 2.7 Telecommunications 13.3 18.4 Transport & Distribution 11.7 4.6 Utilities 6.1 2.8 100.0 100.0 Top 20 Investments as at 31 December 2000 Company Country Sector Value of Investment £'000 Li & Fung Hong Kong Transport & Distribution 7,800 Johnson Electric Hong Kong Electrical Equipment 6,578 Cheung Kong Hong Kong Finance & Real Estate 6,429 Hong Kong and China Gas Hong Kong Utilities 6,303 China Mobile (HK) China Telecommunications 5,857 Television Broadcasts Hong Kong Consumption 5,272 Swire Pacific Hong Kong Finance & Real Estate 4,828 Hong Kong Land Hong Kong Finance & Real Estate 4,467 Singapore Press Singapore Consumption 4,439 Samsung Electronics South Semiconductors and 4,187 Korea Electronics Cosco Pacific China Transport & Distribution 4,171 Taiwan Semiconductor Taiwan Semiconductors & 4,118 Electronics China Unicom China Telecommunications 4,111 Korea Telecom South Telecommunications 3,983 Korea Kookmin Bank South Finance & Real Estate 3,949 Korea DBS Group Singapore Finance & Real Estate 3,774 Overseas Chinese Banking Singapore Finance & Real Estate 3,646 Corp Hang Seng Bank Hong Kong Finance & Real Estate 3,596 Dah Sing Financial Hong Kong Finance & Real Estate 3,587 China Resources China Consumption 3,578 Enterprise 94,673 These twenty investments represented 51.9% of total investments compared with 51.3% at the previous year end. - ENDS -

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