Interim Management Statement

Securities Trust of Scotland plc Growing long-term, delivering high income Interim management statement - 1 October to 31 December 2008 13 February 2009 Profile Objective To achieve rising income and long-term capital growth by investment in the UK. Benchmark FTSE All-Share index Sector UK Growth & Income Listed 28 June 2005 Portfolio Asset class 30 Sep 31 Dec Equities 108.8% 102.7% Fixed interest 3.0% 3.4% Cash 1.8% 6.5% Borrowings (13.7%) (12.6%) Equity allocation 30 Sep 31 Dec Financials 27.6% 22.9% Oil and gas 14.4% 19.5% Consumer goods 13.1% 12.1% Healthcare 7.1% 9.6% Industrials 8.3% 8.7% Consumer services 7.8% 7.4% Utilities 5.9% 6.6% Basic materials 8.1% 6.2% Telecommunications 6.5% 5.6% Technology 1.3% 1.4% Top 10 equity holdings (55.6% of total portfolio) BP 10.1% Royal Dutch Shell 8.6% British American Tobacco 6.2% GlaxoSmithKline 5.7% Vodafone 5.6% HSBC 4.9% AstraZeneca 4.0% Aviva 3.6% BAE Systems 3.5% National Grid 3.4% Number of holdings 50 Key facts Net assets £85.4million Share price 83.0p Net asset value per share† 85.5p Discount/(premium) 2.9% Net yield** 6.7% **The second interim dividend of 1.15p for the year to 31 March 2009 has been paid. †Following a recent review by the AIC, the NAV stated in our reporting is inclusive of current year revenue. Manager's commentary A grim fourth quarter concluded a grisly year for the UK stockmarket. Given the speed and scale of the economic slowdown, it soon became apparent that corporate earnings would suffer further major declines in 2009. In particular, the combination of high debt and weakening demand proved hugely damaging. The FTSE All-Share index fell by 10.2% in the year's final quarter, with large companies significantly outperforming smaller ones. Over 2008 as a whole, the UK market fell by 29.9% - its worst annual return since 1974. The Bank of England slashed base rates from 5% to 2% in the fourth quarter, and sterling slumped against most major currencies. The trust underperformed over the period. Investments in the financial and industrial sectors were the chief sources of this underperformance. During the quarter, we bought a new holding in Petrofac (oil services). We sold Persimmon, Johnston Press, Inchape, BT and Aviva. Ross Watson Change in equity allocation From 30 Sep to 31 Dec Financials (4.7%) Oil and gas 5.1% Consumer goods (1.0%) Healthcare 2.5% Industrials 0.4% Consumer services (0.4%) Utilities 0.7% Basic materials (1.9%) Telecommunications (0.9%) Technology 0.1% Performance Discrete performance over 12 months to 31 December 2008 2007 2006 2005 2004 Share Price (31.1%) (6.1%) 26.1% - - NAV (37.7%) (0.4%) 21.9% - - Benchmark (29.9%) 5.3% 16.8% - - Cumulative performance over periods to 31 December 2008 One Three Six One Three Five Since month months months year years years launch* Share Price 9.2% (6.4%) (15.1%) (31.1%) (18.5%) - (6.4%) NAV 1.9% (14.7%) (25.7%) (37.7%) (24.4%) - (14.3%) Benchmark 3.7% (10.2%) (21.1%) (29.9%) (13.8%) - (2.3%) Past performance is not a guide to future returns. Source: Martin Currie and Fundamental Data. Bid to bid basis with net income reinvested over the periods shown in sterling terms. These figures do not include the costs of buying and selling shares in an investment trust. If these were included, performance figures would be reduced. The risks outlined at the end of this document relating to gearing and single country markets are particularly relevant to this trust but should be read in conjunction with all warnings and comments given. All sources (unless indicated): Martin Currie as at 31 December 2008. Capital structure Ordinary shares 101,970,223* *Source: Martin Currie as at 31 December 2008. Board of directors Neil Donaldson (chairman) Andrew Irvine Charles Berry Edward Murray Anita Frew Material events and transactions During the three month period, no shares were bought back for cancellation. Gearing at the end of the period was 12.6% (13.7% as at 30/09/08). Three dividends of 1.15p per share have been announced for the year to 31 March 2009. The third dividend will be paid on 13 March 2009 to shareholders on the register as at 13 February 2009. Website The trust has its own website at www.securitiestrust.com. There you will find further details about the trust, information on Martin Currie, daily share prices (and associated risks), and you can access regular webcasts by the manager. www.securitiestrust.com Key information Year end 31 March Annual general meeting July Interim dividends paid March, June, September, December Annual management fee as at 31 March 2008† 0.3% Total expense ratio as at 31 March 2008* 0.6% Epic code STS Reuters code STS.L †Percentage of net assets. *Percentage of shareholders' funds. Includes annual management fee. Net asset value and dividend history As at Share NAV Discount/ Dividend 31 March price per share (premium) per share 2006 125.5p 135.6p 7.4% 2.85p 2007 141.3p 148.8p 4.8% 5.05p 2008 116.0p 121.53p 3.8% 5.45p Past performance is not a guide to future returns. Risk factors Please note that, as the shares in investment trusts are traded on a stockmarket, the share price will fluctuate in accordance with supply and demand and may not reflect the underlying net asset value of the shares. Depending on market conditions and market sentiment, the spread between the purchase and sale price can be wide. As with all stock exchange investments the value of investment trust shares purchases will immediately fall by the difference between the buying and selling prices, the bid-offer spread. Investment trusts may also borrow money in order to make further investments. This is known as "gearing" and can enhance shareholder returns in rising markets but, conversely, can reduce them in falling markets. The value of investments and the income from them may go down as well as up and is not guaranteed. An investor may not get back the amount originally invested. The majority of charges will be deducted from the capital of the trust. This will constrain the capital growth of the trust in order to maintain the income streams. Exposure to a single country market increases potential volatility. Important notice: This information is issued and approved by Martin Currie Investment Management Ltd in its capacity as investment manager. It does not in any way constitute investment advice or an invitation or inducement to invest. This document is for the recipient only and should not be given or sent to other parties. Martin Currie Investment Management Ltd, registered in Scotland (no 66107) Registered office: Saltire Court, 20 Castle Terrace, Edinburgh EH1 2ES Tel: 0808 100 21 25 Fax: 0131 222 2532 www.martincurrie.com Authorised and regulated by the Financial Services Authority and a member of the Investment Management Association. Please note that calls to the above number will be recorded.

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