Interim Results

Martin Currie Japan Investment Trust plc interim report After the rises in the early part of the year, the Japanese stockmarket peaked in May and fell sharply in the next six months. Over the interim period the company's net asset value (NAV) per share fell by 26.5%. This compares with a fall of 24.1% in the sterling adjusted value of the Tokyo Stock Exchange (TSE) index. As is typically the case in declining markets, the company's discount to NAV increased. As the share price fell by 33.5%, the discount rose from 7.0% at 31 May to 15.8% at 30 November. The continuing falls in the TSE prompted the board and managers to review further the use of gearing. Having already repaid all of the company's short-term borrowings in July 2001, your managers repaid a portion of the longer-term debt in November. The expiry of warrants at the end of September 2002 reduced the potential dilution in the trust, and some adjustment to the level of gearing was therefore appropriate. As at 30 November, net debt (borrowings less cash) as a proportion of net assets stood at 17.0%. Against this, 12.7% of net assets was invested in fixed interest securities and a hedge fund. The economic environment remains poor. The Koizumi administration has backed down on a number of large-scale reform measures, most recently on banking reform. But at a lower level there has been progress on several fronts. Recent changes to the taxation of dividends are a good example. Within the corporate sector there is also evidence of reform, both in terms of cost reduction and shareholder value. The interim results season showed how ongoing price deflation has forced many companies to take drastic measures to reduce costs while, following a change in regulations, we estimate that approximately 60% of the equity holdings in our portfolio have bought back shares. The Japanese authorities have reiterated their desire to see a weaker yen. This would certainly help to ease the problem of domestic price deflation. The Japanese stockmarket stands at a low level, especially in relation to the price to book ratio and the dividend yield, which is now in excess of bonds. As before, foreign investors are critical to the short- term outlook. The direction of the market will be dictated by their view of equities globally. - ends - For further information, please contact: John Millar or Michael Woodward Martin Currie Investment Management Ltd 0131 229 5252 jmillar@martincurrie.com/mwoodward@martincurrie.com MARTIN CURRIE JAPAN INVESTMENT TRUST plc Statement of total return (incorporating the revenue account*) for the six month period ended 30 November 2002 Unaudited Revenue Capital Total £'000 £'000 £'000 Losses on investments - - (4,547) (4,547) realised - - (7,307) (7,307) unrealised Currency gains - 542 542 Income - 259 - 259 unfranked Investment management (25) (229) (254) fee Other expenses (154) - (154) Net return before finance costs 80 (11,541) (11,461) and taxation Interest payable and similar (10) (152) (162) charges Return on ordinary activities 70 (11,693) (11,623) before taxation Taxation on ordinary activities (59) 21 (38) Return on ordinary activities after taxation for the financial 11 (11,672) (11,661) period Dividends in respect of equity - - - shares Transfer to/ (from) reserves 11 (11,672) (11,661) Return per ordinary share 0.02p (25.14p) (25.12p) * The revenue columns of this statement are the profit and loss accounts of the company. All revenue and capital items in the above statement derive from continuing operations. No operations were acquired or discontinued in the year. MARTIN CURRIE JAPAN INVESTMENT TRUST plc Statement of total return (incorporating the revenue account*) for the six month period ended 30 November 2001 Unaudited Revenue Capital Total £'000 £'000 £'000 Losses on - realised - (3,090) (3,090) investments - unrealised - (9,421) (9,421) Currency gains - 442 442 Income - unfranked 256 - 256 Investment (32) (288) (320) management fee Other expenses (150) - (150) Net return before finance costs 74 (12,357) (12,283) and taxation Interest payable and similar (11) (99) (110) charges Return on ordinary activities 63 (12,456) (12,393) before taxation Taxation on ordinary activities (45) 1 (44) Return on ordinary activities 18 (12,455) (12,437) after taxation for the financial period Dividends in respect of equity - - - shares Transfer to/(from) reserves 18 (12,455) (12,437) Return per ordinary share 0.04p (26.84p) (26.80p) * The revenue columns of this statement are the profit and loss accounts of the company. All revenue and capital items in the above statement derive from continuing operations. MARTIN CURRIE JAPAN INVESTMENT TRUST plc Statement of total return (incorporating the revenue account*) for the year ended 31 May 2002 Audited Revenue Capital Total £'000 £'000 £'000 Losses on - realised - (4,828) (4,828) investments - unrealised - (6,897) (6,897) Currency gains - 688 688 Income - unfranked 555 - 555 Investment (53) (475) (528) management fee Other expenses (280) - (280) Net return before finance costs 222 (11,512) (11,290) and taxation Interest payable and similar (20) (180) (200) charges Return on ordinary activities 202 (11,692) (11,490) before taxation Taxation on ordinary activities (95) - (95) Return on ordinary activities 107 (11,692) (11,585) after taxation for the financial year Dividends in respect of equity (84) - (84) shares Transfer to/(from) reserves 23 (11,692) (11,669) Return per ordinary share 0.23p (25.19p) (24.96p) * The revenue columns of this statement are the profit and loss accounts of the company. All revenue and capital items in the above statement derive from continuing operations. MARTIN CURRIE JAPAN INVESTMENT TRUST plc Balance sheet As at As at As at 30 November 30 November 31 May 2002 2002 2001 (audited) (unaudited) (unaudited) £000 £000 £000 £000 £000 £000 Investments at market 37,657 52,654 53,335 value Current assets Debtors 349 514 351 Cash at bank 2,208 1,380 1,254 2,557 1,894 1,605 Creditors Amounts falling due (285) (301) (292) within one year Net current assets 2,272 1,593 1,313 Total assets less 39,929 54,247 54,648 current liabilities Creditors Amounts falling due (7,681) (11,106) (10,739) after one year Total assets attributable to share 32,248 43,141 43,909 capital Capital and reserves Called up ordinary 11,605 11,605 11,605 capital Share premium 5,461 5,461 5,461 Merger Reserve 21,060 21,060 21,060 Capital reserve (6,075) 4,834 5,597 Revenue reserve 197 181 186 Total shareholders' 32,248 43,141 43,909 funds Net asset value per ordinary share of 25p 69.5p 92.9p 94.6p MARTIN CURRIE JAPAN INVESTMENT TRUST plc STATEMENT OF CASH FLOW Period ended Period ended Period 30 November 30 November ended 2002 2001 31 May 2002 (unaudited) (unaudited) (audited) £000 £000 £000 £000 £000 £000 Operating activities Net dividends and interest received from investments 286 288 540 Interest received from 42 6 29 deposits Investment management fee (278) (355) (599 ) Cash paid to and on behalf (39) (41) (72) of directors Bank charges (30) (9) (19) Other cash payments (112) (328) (435) Net cash outflow from (131) (439) operating activities (556) Servicing of finance Interest paid (102) (111) (205) Loan breakage costs (62) - - Net cash outflow from (164) (111) (205) servicing of finance Capital expenditure and financial investment Payments to acquire (3,693) (7,622) (13,536) investments Receipts from disposal of 7,542 9,362 15,4 investments 87 Foreign exchange differences - 231 230 Net cash inflow from capital expenditure and financial 3,849 1,971 2,181 investment Equity dividends paid Dividends paid (84) (84) (84) Cash outflow from equity (84) (84) (84) dividends Net cash inflow before 3,470 1,337 1,336 financing Financing Net movement in borrowings (2,534) (1,481) (1,4 81) Net cash outflow from (2,534) (1,481) (1,481) financing Increase/ (decrease) in cash 936 (144) (145) for the period ------------------------------------------------------------ This information was brought to you by Waymaker http://www.waymaker.net The following files are available for download: http://www.waymaker.net/bitonline/2003/01/22/20030122BIT00580/wkr0001.doc http://www.waymaker.net/bitonline/2003/01/22/20030122BIT00580/wkr0002.pdf