Final Results-Replacement

Henderson TR Pacific Inv. Trust PLC 09 February 2005 The issuer advises that the following replaces the Final Results announcement released on Tuesday 8 February at 09.00 under RNS 3331I. The record date for the dividend should have read 18 March 2005 (and not 16 March as previously stated) and the ex-dividend date should have read 16 March 2005 (and not 18 March as previously stated). HENDERSON TR PACIFIC INVESTMENT TRUST PLC Unaudited Preliminary Results for the Year Ended 31 December 2004 8 February 2004 Henderson TR Pacific Investment Trust plc announces preliminary results for the year ended 31 December 2004. Henderson TR Pacific Investment Trust plc seeks a high rate of total return from Pacific region stock markets and economies excluding Japan and Australasia. Key Points: • Board implementing a number of initiatives aimed at improving Trust's performance - Amendment to primary investment objective from capital growth to high total return - Strengthening of investment team with appointment of new Deputy Fund Manager - Resolution to shareholders at AGM to broaden geographical scope of investments to include India • 40% increase in proposed Final Dividend to 1.4p per share (2003: 1.00p). Future dividend policy to be in line with revised investment strategy. • £40m multi-currency borrowing facility agreed during the year with ING Bank. At year end £13.9m drawn down. • Countries, sectors and stocks to which the Trust was most exposed performed less well than previous year, particularly China and Thailand, resulting in fall in NAV (total return) of 1.3% over year. Key Extracts from the Preliminary Statement (Unaudited) (Audited) 31 December 2004 31 December 2003 Net Asset Value per Ordinary Share 87.1p 89.3p Share price 76.8p 85.0p Discount to NAV 11.8% 4.8% Proposed Final Dividend per Ordinary Share: 1.40p 1.00p Total Return Performance for 12 Months to 31 December 2004 Net Asset Value (i) -1.3% Share price (i) -8.6% MSCI AC Far East (Free) ex-Japan Index (ii) +9.7% (i) Source: AITC Services Ltd. (net dividends reinvested) (ii) Source: Thomson Financial, Datastream (gross dividend reinvested) - MORE - - 2 - HENDERSON TR PACIFIC INVESTMENT TRUST PLC Unaudited Preliminary Results for the Year Ended 31 December 2004 Commenting on the results Chairman, David Robins said: Both market and stock selections, in particular over-weight positions in China and Thailand, led to a disappointing performance in 2004. The advantage of being an investment trust rather than an open ended investment vehicle, is that the underlying issue of underperformance can be addressed by the Board. Accordingly, the Board has taken action by changing the emphasis in the company's primary objective from one of 'capital growth' to 'high total return'. An experienced Deputy Fund Manager has been appointed to the team, while Henderson has also agreed to strengthen the analytical resources available to support the fund managers. In addition, it is proposed that the country coverage be widened to include India. Extracts from the Chairman's Statement Following the China growth theme which dominated 2003, there were few discernible trends in Asian markets during the course of 2004, which proved to be a difficult one for your company. Whilst 2003 was reasonably successful, the countries, sectors and stocks to which the Trust was exposed, performed less well in 2004. Performance For the year ended 31 December 2004 the net asset value per share fell by 1.3% on a total return basis which compared with a rise of 9.7% in the MSCI Far East (Free) ex Japan Index. The underperformance reflected relatively large positions in Thailand and China which were the region's worst performing stock markets. Stock selection continued to favour growth and cyclical stocks, in line with the Trust's stated objectives. However, the performance of these positions, particularly in South Korea and Taiwan, was also relatively disappointing. As a result, having visited the region in the spring, the Board held a Strategy Meeting later in the year, and has initiated various changes aimed at improving the performance of the Trust. Objectives The Board has decided to change the emphasis in the company's primary objective, which has historically been to seek 'capital growth' from the region's stock markets. Given that some of the region's markets are now maturing, providing fewer opportunities to take advantage of high growth stocks, the Board wishes to give the fund manager greater flexibility in stock selection. We have, therefore, amended the objectives of the Trust to the pursuit of a 'high total return' in regional markets. In practice this will involve a more active and opportunistic investment policy which is not necessarily confined to growth stocks. You will notice from the Resolutions to be put to the Annual General Meeting that the Board has also decided that it would be in shareholders' interests to broaden the scope of the fund to include investment in India, which is currently not permitted. India is developing along its own course with a different economic cycle to the rest of the region, which is increasingly dependent on China. Investment in India will not only allow access to huge growth opportunities but will also provide greater diversification for the Trust. The Managers of the Trust will be able to rely upon expertise on the Indian economy and market already in place within Henderson. Our intention is to monitor developments and only to invest in the market on a gradual basis. The Board hopes that you will fully endorse this change. MORE - 3 - HENDERSON TR PACIFIC INVESTMENT TRUST PLC Unaudited Preliminary Results for the Year Ended 31 December 2004 Board Iain Dale, our previous Chairman, retired at the last AGM after 14 years on the Board and we wish him well. I took on the responsibility of Chairmanship at that time and greatly look forward to the challenge ahead. Management There has also been an important change in the company's management. Michael Watt will continue as Manager, but has been joined by a new Deputy Manager, Michael Kerley, who was appointed in December. Michael Kerley brings 12 years experience of investing in the region, and we look forward to benefiting from the support that he will bring Michael Watt as they work as a team in Henderson's London office. In addition, Henderson Global Investors has added two analysts to their office in Singapore and is seeking to bring an economist/strategist covering the region into their London office. Again, the Board expects that this addition of resources will provide more investment ideas and bring greater rigour to the stock selection process. Share Buybacks After the strong performance in the region's markets in 2003, some investors clearly became disenchanted with the region in 2004. As a result, the discount to assets at which our shares traded over the year widened from 4.8% at the end of 2003 to 11.8% at the end of 2004. It reached a peak in August of 15.7%. Accordingly, during the year the company made share repurchases totalling 10,400,000 shares at an average discount of 14.2%. These shares were subsequently cancelled and amounted to some 5% of the company's issued shares. Borrowings During the course of the year, a multi-currency borrowing facility was put in place with ING Bank. This allows the Trust to borrow up to £40 million. At 31 December 2004 the equivalent of £13.9 million was drawn down with loans in Hong Kong and Singapore dollars. Borrowings were reduced over the year due to the less favourable stock market outlook faced by the company. The Board believes it is an important potential benefit to shareholders that borrowings may be used as investment opportunities arise. Dividend A final dividend of 1.4p, compared with last year's 1.00p, is recommended in respect of 2004, to be paid to shareholders in April. This year's higher dividend reflects the company's new policy of seeking a high total return. The Board no longer feels it is appropriate to limit the dividend to the minimum payable but intend in future to pay a higher share of earnings to shareholders each year. - MORE - - 4 - HENDERSON TR PACIFIC INVESTMENT TRUST PLC Unaudited Preliminary Results for the Year Ended 31 December 2004 Charitable Donations We were all greatly saddened to see the tragic impact of the tsunami wave across South East Asia on 26 December. A donation of £10,000 was approved towards the relief effort in addition to the £10,000 also paid to our regular charity, Sabakan, in Mindanao in the Philippines. Outlook Global economic growth is expected to slow in 2005 after relatively high growth in 2004. Asian economies are expected to slow too, though they are likely to continue to achieve higher rates of growth than other regions. But, following increases in raw material and other costs, a slowdown in company profit expansion is also expected, after two strong years. Although stock market valuations are attractive in relative terms, we do not expect a particularly strong performance by regional markets until next year. As a result, there may well be some consolidation in stock markets in the first part of 2005. However, longer term prospects continue to look exciting, particularly as the outlook for ongoing high levels of structural growth in China and, indeed, India remains intact. Annual General Meeting The AGM will be held on 15 April 2005 at 12.30pm. As usual it will take place at Henderson's offices in the City of London. David Robins - MORE - - 5 - HENDERSON TR PACIFIC INVESTMENT TRUST PLC Unaudited Preliminary Results for the Year Ended 31 December 2004 Statement of Total Return (incorporating the revenue account) (Unaudited) (Audited) Year ended 31 December 2004 Year ended 31 December 2003 Revenue Capital Total Revenue Capital Total £'000 £'000 £'000 £'000 £'000 £'000 Total capital (losses)/gains from - (6,116) (6,116) - 51,601 51,601 investments Income from fixed asset investments 5,525 - 5,525 4,418 - 4,418 Other interest receivable and similar 66 - 66 35 - 35 income ------- --------- --------- --------- ---------- ---------- Gross revenue and capital (losses)/gains 5,591 (6,116) (525) 4,453 51,601 56,054 Management fee (593) (1,015) (1,608) (547) (890) (1,437) Other administrative expenses (630) - (630) (496) - (496) ------- -------- -------- -------- ----------- ---------- Net return/(loss) on ordinary activities Before interest payable and taxation 4,368 (7,131) (2,763) 3,410 50,711 54,121 Interest payable (72) (214) (286) (72) (218) (290) ------- -------- -------- ---------- ----------- ---------- Net return/(loss) on ordinary activities Before taxation 4,296 (7,345) (3,049) 3,338 50,493 53,831 Taxation on net return/(loss) on ordinary (1,423) 727 (696) (773) 224 (549) activities -------- -------- -------- ----------- ---------- ----------- Net return/(loss) on ordinary activities after taxation 2,873 (6,618) (3,745) 2,565 50,717 53,282 Proposed ordinary dividend: Final: 1.40p per share (2003: 1.00p) (2,705) - (2,705) (2,036) - (2,036) --------- --------- --------- ---------- ------------ ---------- Transfer to/(from) reserves 168 (6,618) (6,450) 529 50,717 51,246 ===== ===== ====== ====== ======= ======= Return/(loss) per ordinary share (note 1) 1.45p (3.33p) (1.88p) 1.26p 24.90p 26.16p The revenue columns of this statement represent the profit and loss accounts of the company. - MORE - - 6 - HENDERSON TR PACIFIC INVESTMENT TRUST PLC Unaudited Preliminary Results for the Year Ended 31 December 2004 Balance Sheet At 31 December 2004 (Unaudited) (Audited) 31 December 2004 31 December 2003 £'000 £'000 --------------------- -------------------- Fixed asset investments Listed at market value - overseas 181,221 216,097 ---------- ---------- Current assets Debtors 142 117 Bank balances and short term deposits 5,685 3,359 ---------- ---------- 5,827 3,476 Creditors: amounts falling due within one year (18,842) (37,835) ---------- ---------- Net current liabilities (13,015) (34,359) ---------- ---------- Total net assets 168,206 181,738 ====== ====== Capital and reserves Called up share capital 9,660 10,180 Other reserves 152,569 165,749 Revenue reserve 5,977 5,809 ---------- ---------- Equity shareholders' funds 168,206 181,738 ====== ====== Net asset value per ordinary share (note 2) 87.1p 89.3p - MORE - - 7 - HENDERSON TR PACIFIC INVESTMENT TRUST PLC Unaudited Preliminary Results for the Year Ended 31 December 2004 Cash Flow Statement For the year ended 31 December 2004 (Unaudited) (Audited) Year ended Year ended 31 December 2004 31 December 2003 £'000 £'000 £'000 £'000 -------------- ------------- -------------- ------------ Net cash inflow from operating activities 2,182 1,576 Servicing of finance Interest paid (309) (264) ----------- ----------- Net cash outflow/inflow from servicing of finance (309) (264) Taxation Withholding tax paid (118) (106) ---------- ---------- Net tax paid (118) (106) Financial investment Purchases of investments (89,906) (98,389) Sales of investments 120,705 66,353 ------------- ------------- Net cash inflow/(outflow) from financial investment 30,799 (32,036) Equity dividends paid (2,036) (1,223) --------- ----------- Net cash inflow/(outflow) before financing 30,518 (32,053) Financing Repurchases of ordinary shares (7,082) (121) (Repayment)/drawdown of multi-currency loan facility (21,278) 30,297 ----------- ----------- Net cash (outflow)/ inflow from financing (28,360) 30,176 ---------- ---------- Increase/(decrease) in cash 2,158 (1,877) ====== ====== Reconciliation of net cash flow to movement in net debt Increase/(decrease) in cash as above 2,158 (1,877) Cash outflow/(inflow) from debt financing 21,278 (30,297) --------- ---------- Change in net debt resulting from cash flows 23,436 (32,174) Exchange movements 124 1,678 -------- ---------- 23,560 (30,496) Net debt at 1 January (32,160) (1,664) ---------- ---------- Net debt at 31 December (8,600) (32,160) ====== ====== - MORE - - 8- HENDERSON TR PACIFIC INVESTMENT TRUST PLC Unaudited Preliminary Results for the Year Ended 31 December 2004 Notes: 1. Return/(loss) per Ordinary Share Revenue returns per ordinary share are based on earnings attributable to the ordinary shares of £2,873,000 (year ended 31 December 2003: £2,565,000) and on the weighted average number of ordinary shares in issue during the year to 31 December 2004, being 198,788,181 (year ended 31 December 2003: 203,680,948). Capital (losses)/gains per ordinary share are based on net capital losses attributable to the ordinary shares of £6,618,000 (year ended 31 December 2003: gains of £50,717,000 and on the weighted average number of ordinary shares in issue during the year, as shown above. 2. Net Asset Value per Ordinary Share The net asset value per ordinary share is based on net assets attributable to ordinary shares of £168,206,000 (31 December 2003: £181,738,000) and on the 193,203,359 (31 December 2003: 203,603,359) ordinary shares in issue at 31 December 2004. 3. Share Buy-Backs The company was granted authority to repurchase up to 30,336,900 ordinary shares at the Annual General Meeting held on 5 April 2004. During the year to 31 December 2004 the company purchased 10,400,000 Ordinary shares for cancellation at an average discount of 14.18%, at a cost of £7,082,000. The net asset value was enhanced by approximately £586,000. 4. 2003 Accounts The figures and financial information for the year ended 31 December 2003 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. 5. 2004 Accounts The preliminary figures for the year ended 31 December 2004 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. 6. Dividends A final dividend of 1.40p per ordinary share will, if approved by shareholders, be paid on 20 April 2005 to shareholders recorded on the Register of Members on 18 March 2005. The company's shares go ex-dividend on 16 March 2005. 7. Annual General Meeting The annual report will be posted to shareholders in March 2005 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 15 April 2005 at 12.30 pm. - MORE - - 9 - HENDERSON TR PACIFIC INVESTMENT TRUST PLC Unaudited Preliminary Results for the Year Ended 31 December 2004 Stock Market Performance Comparison for the year to 31 December 2004 Local Currency Sterling Adjusted % % South Korea 10.5 18.6 Taiwan 4.2 4.1 China -3.5 -10.0 Hong Kong 13.2 5.4 Thailand -13.5 -17.7 The Philippines 26.4 16.6 Malaysia 14.3 6.6 Singapore 11.8 8.4 Indonesia 44.6 22.3 Geographical Distribution of the Investment Portfolio As at 31 December 2004 As at 31 December 2003 % % South Korea 16.5 20.7 Taiwan 15.9 20.2 China 14.6 15.9 Hong Kong 19.8 9.5 Thailand 9.9 17.0 The Philippines 0.0 0.6 Malaysia 6.9 8.3 Singapore 10.3 6.6 Indonesia 4.6 0.0 Vietnam 1.5 1.2 100.0 100.0 ==== ==== - MORE - - 10 - HENDERSON TR PACIFIC INVESTMENT TRUST PLC Unaudited Preliminary Results for the Year Ended 31 December 2004 Sector Analysis of Investments As at 31 December 2004 As at 31 December 2003 % % Consumer Discretionary 11.7 14.0 Consumer Staples 3.5 4.2 Energy 3.4 2.3 Financials and Property 44.0 20.4 Healthcare 0.0 0.0 Industrials and Transport 7.9 21.6 Information Technology 11.2 19.9 Materials 4.8 7.5 Telecommunications Services 10.3 5.9 Utilities 3.2 4.2 100.0 100.0 ==== ==== Top 20 Investments as at 31 December 2004 Company Country Sector Value of Investment £'000 Hutchison Whampoa Hong Kong Financials & Property 5,840 Samsung Fire & Marine South Korea Financials & Property 4,508 Swire Pacific Hong Kong Financials & Property 4,331 Li & Fung Hong Kong Consumer Discretionary 4,222 Cheung Kong Hong Kong Financials & Property 4,147 LG Electronics South Korea Consumer Discretionary 3,867 China Merchants China Industrials & Transport 3,737 New World Development Hong Kong Financials & Property 3,720 Shin Corporation Thailand Telecommunications Services 3,719 Noble Group Singapore Financials & Property 3,689 Hong Kong & China Gas Hong Kong Utilities 3,442 Shinsegae South Korea Consumer Discretionary 3,432 Cathay Financial Taiwan Financials & Property 3,406 China Netcom China Telecommunications Services 3,401 CNOOC China Energy 3,387 Taishin Financial Taiwan Financials & Property 3,336 Citiraya Industries Singapore Industrials & Transport 3,322 Kasikornbank Thailand Financials & Property 3,318 Keppel Corporation Singapore Financials & Property 3,283 Giordano International Hong Kong Consumer Discretionary 3,258 75,365 ==== Total Investments 181,221 ==== Top 20 as a percentage of total investments 41.6% - ENDS - For further information contact:- Michael Watt, Director and Manager David Robins, Chairman Tel: 020 7818 1818 David Hardy Binns & Co. PR Tel: 020 7786 9600 or Vicki Staveacre Henderson Press Office Telephone: 020 7818 4222 This information is provided by RNS The company news service from the London Stock Exchange

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