2008 Interim Report and Accounts 2008 Aberdeen Asset Management PLC

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(1)EQUITIES | FIXED INCOME | PROPERTY. 2008. WorldReginfo - 8410e5b4-9eba-4f13-9c2a-ce2d05669049. Aberdeen Asset Management PLC Interim Report and Accounts 2008.

(2) Who we are. Our culture. Aberdeen Asset Management is an independent asset management group, which has been listed on the London Stock Exchange since 1991 and is today a FTSE-250 company. The Company was originally founded in Aberdeen, Scotland in 1983. Excluding the smaller private equity offices in the UK, the Group has 25 offices and 1,800 staff. We invest worldwide on behalf of clients globally across the three major asset classes of equities, fixed income and property.. We believe in locating our investment and client services teams in or near the markets in which we invest or where our clients are based. The Group has grown rapidly in the last 25 years and values a flat management structure and being an open, diverse and accessible employer. To our clients, we believe we are transparent and approachable. We champion local decisionmaking, close-knit teams and interdependence among our offices worldwide.. What we do. Sponsorship. Our business is the active management of financial assets, chiefly equities, fixed income and property, for third parties. We package and sell that expertise in the form of segregated and pooled products across borders. Our key clients include leading national and corporate pension funds, central banks and other investment institutions. We have no ownership ties to other organisations.. Sponsorship helps to differentiate us from competitors. In recent years we have backed events such as the Seniors British Golf Open, as well as individual sportsmen, who provide visibility mainly through television. Since early 2007, Colin Montgomerie has worn the Aberdeen logo at tournaments around the world. Europe’s most successful golfer, seven times a winner of the Order of Merit, he added the European Open title in June last year. In November, he successfully helped Scotland capture the World Cup for the first time in its 54-year history.. 1 2 4 5 6 7 8 17 17 18 19 20. Highlights of the period Chairman’s statement Group Income Statement Group Statement of Recognised Income and Expense Group Balance Sheet Summary Group Cash Flow Statement Notes Principal risks Responsibility statement Independent Review report to Aberdeen Asset Management PLC Principal offices Corporate information. WorldReginfo - 8410e5b4-9eba-4f13-9c2a-ce2d05669049. Contents.

(3) Highlights of the period Financial highlights. Operational highlights. . 2007. 2008. £201.5m £162.5m. Revenue Pre-tax profit (loss) Before exceptional items and amortisation of intangibles After exceptional items and amortisation of intangibles. £47.3m. £43.6m. £32.5m. (£21.9m). Diluted earnings (loss) per share Before exceptional items and amortisation of intangibles After exceptional items and amortisation of intangibles. • Continued growth in revenues, underlying profits, cash flows and Assets under Management in challenging markets • Group Assets under Management increase 12.6% to £107.3 billion since start of year • Annualised cost reductions of more than £15 million identified • Strong balance sheet with debt at 23% of equity. Total dividend per share. 4.71p. 5.07p. 3.07p. (2.73p). 2.8p. 2.6p. Net new business – funded – awarded but not funded at period end. £0.5bn. £4.1bn. £2.0bn. £3.5bn. Assets under Management at the period end. £107.3bn. £80.4bn. • Acquisition of DEGI completed • Acquisition of Goodman Property Investors for an initial £89 million. Historical summary Earnings per share (pence) 2008. 4.71. 2007 2006. 5.07. 6.02. 4.10. 4.85. Dividend per share (pence) 2.8. 2007 2006. 2.6. 2.9. 2.0. 2.4. Assets under management (£bn) Mar 2008. 107.3. Sep 2007 Mar 2007. 95.3 80.4. Sep 2006. 73.2. Mar 2006. 74.4. Aberdeen Asset Management PLC Interim Report and Accounts 2008. 1. WorldReginfo - 8410e5b4-9eba-4f13-9c2a-ce2d05669049. 2008.

(4) Chairman’s statement. … satisfactory progress against the backdrop of challenging market conditions.. The six month period to 31 March 2008 has seen the Group make satisfactory progress against the backdrop of challenging market conditions. Whilst the volatility in global equity, bond and property markets has impacted revenues in the short term, we are conscious that such markets also bring opportunities. We have completed two acquisitions during the period and we are announcing a third today, each of which we expect to add value for our shareholders. The Group achieved profit before taxation of £32.5 million (2007: loss of £21.9 million). Underlying profit, stated before exceptional items and amortisation of intangible assets, was £47.3 million (2007: £43.6 million). This represents underlying earnings per share, on a diluted basis, of 4.71p (2007: 5.07p), this figure having been effected by the issue of US$ 400 million 7.9% perpetual capital securities in 2007, which considerably strengthened the balance sheet. The Board has decided to pay an interim dividend of 2.8 pence per share, an increase of 8% on the equivalent payment last year. This interim dividend will be paid on 19 June 2008 to shareholders on the register at 16 May 2008. Although higher in absolute terms, revenue growth has been hampered by the effects of weaker global markets and this is reflected in reduced operating margins for the period. The nature of asset management is such that revenues will always be dependent on markets and we focus our attention on the elements we can influence, namely operating costs and new business generation. We have a constant focus on operating costs and have been working on achieving further efficiencies following integration of recent acquisitions. Whilst these actions will have some limited effect in the second half of the current financial year, the principal benefit will be seen in the next financial year, with annualised cost reductions of over £15 million already identified. We will continue to ensure that the Group is fully resourced to enable us to take advantage of further growth opportunities that may emerge, but there is no doubt that further cost reductions could be implemented if the downturn in markets is prolonged. Cash flow generation from operating activities of £23.7 million for the period was some 63% higher than for the same period in 2007. This positive cash flow, supplemented by additional borrowings drawn, has been reinvested in the two acquisitions we have completed during the period and ongoing operational cash flow will provide the basis and flexibility for future growth. Accounting rules have required us to book a post-tax impairment charge of £4.7 million on seed capital investments, which we regard as an exceptional, non-recurring item; indeed, we have every expectation that we will be in a position to record an exceptional gain of similar magnitude during the second half of this financial year. We have also recorded a post-tax provision of £1.4 million for the estimated retrospective impact of the VAT case brought against HMRC by a UK investment trust.. 2. Aberdeen Asset Management PLC Interim Report and Accounts 2008. WorldReginfo - 8410e5b4-9eba-4f13-9c2a-ce2d05669049. Charles Irby Chairman.

(5) We have continued to attract healthy levels of new business inflows, from investors around the world and across a range of asset classes although, unsurprisingly in more volatile markets, outflows have increased somewhat.. Our strategy. Gross inflows of £10.8 billion were generated during the period and these are included in Assets under Management (“AuM”) at 31 March 2008. A further £2.0 billion of mandates were awarded or committed before the period end but had not been funded by that date. Gross outflows, which include partial withdrawals by continuing clients, totalled £10.3 billion. Open end fund flows, which had experienced a difficult first quarter, recovered somewhat in the second quarter and good progress has been achieved in integrating the US mutual fund mandates purchased from Nationwide Financial Services in October 2007. The composition of the net new business inflows is summarised in the following table:. Our expertise is the management of client portfolios from a fundamental perspective. This forms the basis of our core investment competence.. Yet to fund £m. 4,646 (4,655) (9). 449 – 449. 4,495 (5,035) (540). 582 – 582. 1,362 (393) 969. 890 – 890. 2,252 (393) 1,859. 333 (295) 38. 50 – 50. 383 (295) 88. Total £m. We intend to develop our investment capability and distribution platforms in order to enter new markets and segments where we have a competitive and sustainable edge. We will add new offices where it will enhance our services to clients and prospects or deepen our investment coverage. We also build our assets and skills through acquisitions where we see a fit to our existing business. To manage costs, we outsource or centralise non-core functions. We prefer to own investment competence, product development and client relations ourselves.. 5,095 (4,655) 440 acquisition of Goodman Property Investors will add a critical UK dimension to our property platform going forward. 5,077 (5,035) The Group’s AuM increased by 12.6% in the period, to stand at £107.3 billion at 31 March 2008. This increase arose as follows: 42 At 30 September 2007 Net new business funded in the period Net movements from corporate acquisitions Restructuring of portfolio by major client Market appreciation & performance At 31 March 2008. £bn. %. 95.3 0.5. +0.5. 9.0 2.6 (0.1) 107.3. +9.5 +2.7 -0.1 +12.6. The balance sheet remains strong, bolstered by the issue of 12,807 perpetual capital securities in 2007 and the conversion of (10,378) £23.6 million of the 4.5% convertible bonds 2010 into 2,429 ordinary shares in December 2007. Net gearing was increased at the end of March to pay for the DEGI acquisition but, at Net equity flows had a difficult first quarter, as reflected in the 23% of equity, remains at a reasonable level. figures published in the Interim Management Statement in 10,836 (10,378) 458. 1,971 – 1,971. January, but have recovered somewhat in the second quarter, supported by the consistent performance delivered by our investment process. Fixed income flows were relatively flat for the first half year but there is a reasonable inflow to come from mandates already awarded but not yet funded at 31 March 2008. The property division has continued to win new investment commitments for its range of funds and the addition of the DEGI fund range has further increased the proportion of property AuM represented by funds. We regard this as an important development in this division, as the income from funds tends to be more predictable than for institutional segregated mandates, on which income can be partially dependent on the timing of transactions. The proposed. We expect market conditions to remain challenging during the second half of the financial year. However, it is a normal consequence of the asset management cycle that acquisition opportunities tend to increase at times when organic growth is slower and we believe we are well positioned to take advantage of suitable opportunities that may emerge.. Charles Irby Chairman 6 May 2008 Aberdeen Asset Management PLC Interim Report and Accounts 2008. 3. WorldReginfo - 8410e5b4-9eba-4f13-9c2a-ce2d05669049. Fixed income: Gross inflows Outflows Net flows Equities: Gross inflows Outflows: Net flows Property: Gross inflows Outflows Net flows Multi asset: Gross inflows Outflows Net flows Group totals: Gross inflows Outflows Net flows. Funded £m. The Group has a balanced business with principal investment centres in the three main time zones..

(6) Group Income Statement For the six months to 31 March 2008. 6 months to 31 March 2008 £'000. 6 months to 31 March 2007 £'000. Revenue Operating costs Exceptional costs Amortisation of intangible assets Exceptional settlement costs. 201,474 (153,898) (9,625) (5,192) –. 162,486 (119,439) (18,936) (4,500) (50,000). 347,843 (251,299) (20,301) (9,404) (46,776). (168,715). (192,875). (327,780). 2 3 4. Operating expenses Exceptional gains on investments Gains on investments and other income Other operating income. 5. Year to 30 September 2007 £'000. – 372. 7,892 3,482. 8,667 3,440. 372. 11,374. 12,107. Operating profit before: Exceptional gains and charges Amortisation of intangible assets. 47,948 (9,625) (5,192). 46,529 (61,044) (4,500). 99,984 (58,410) (9,404). Operating profit (loss) Finance revenue Finance costs Exceptional finance costs. 33,131 3,199 (3,808) –. (19,015) 5,890 (8,805) –. 32,170 14,787 (20,506) (2,778). (609). (2,915). (8,497). 47,339 (14,817). 43,614 (65,544). 94,265 (70,592). Profit (loss) before taxation . 32,522. (21,930). 23,673. Tax expense before exceptional items and amortisation Tax credit on exceptional items. (8,276) 3,233. (8,006) 16,213. (11,387) 18,357. Tax (expense) credit. (5,043). 8,207. 6,970. 39,063 (11,584). 35,608 (49,331). 82,878 (52,235). Profit (loss) for the period. 27,479. (13,723). 30,643. Attributable to equity holders of the parent: Ordinary shareholders Other equity holders. 21,992 5,487. (13,723) –. 26,957 3,686. Net finance costs Profit before exceptional items, amortisation and taxation Exceptional items and amortisation before taxation. Profit after taxation before exceptional items Exceptional items and amortisation after taxation. Earnings (loss) per share Basic Diluted. 8. Underlying earnings per share Basic Diluted. 8. Dividend per share. 4. Aberdeen Asset Management PLC Interim Report and Accounts 2008. 3.21p 3.07p. (2.73p) (2.73p). 3.61p 3.50p. 8. 5.14p 4.71p. 5.47p 5.07p. 12.29p 11.09p. 7. 2.8p. 2.6p. 5.5p. 8. WorldReginfo - 8410e5b4-9eba-4f13-9c2a-ce2d05669049. Notes.

(7) Group Statement of Recognised Income and Expense For the six months to 31 March 2008. Net actuarial gain on defined benefit pension schemes Translation of foreign currency net investments Movement in fair value of available for sale investments Tax on items taken directly to equity. 6 months to 31 March 2008 £'000. 6 months to 31 March 2007 £'000. Year to 30 September 2007 £'000. – 183 (6,930) –. 10,527 1,823 (4,054) (5,772). 3,949 27,479. (6,747) (13,723). 2,524 30,643. Total recognised income and expense for the period. 31,428. (20,470). 33,167. Attributable to equity holders of the parent: Ordinary shareholders Other equity holders. 25,941 5,487. (20,470) –. 29,481 3,686. Net income (expense) recognised directly in equity Profit (loss) for the period. – 4,256 (71) (236) 14. Aberdeen Asset Management PLC Interim Report and Accounts 2008. 5. WorldReginfo - 8410e5b4-9eba-4f13-9c2a-ce2d05669049. Notes.

(8) Group Balance Sheet Notes. 31 March 2008 £'000. 31 March 2007 £'000. 30 September 2007 £'000. 705,340 24,712 41,072 23,283 13,982. 547,168 11,246 19,343 28,424 3,302. 619,687 13,833 34,898 21,155 4,485. 808,389. 609,483. 694,058. 520 1,213,171 163,851 41,025 53,456. 679 1,328,924 152,659 26,391 56,937. 537 1,298,402 178,173 23,508 80,680. Total current assets. 1,472,023. 1,565,590. 1,581,300. Total assets. 2,280,412. 2,175,073. 2,275,358. Assets Non-current assets Intangible assets Property, plant and equipment Other investments Deferred tax assets Trade and other receivables. 9 10. Total non-current assets Current assets Stock of units and shares Financial investments Trade and other receivables Other investments Cash and cash equivalents. 11 13 10. Equity Called up share capital Share premium account Other reserves Retained loss. 73,111 307,545 226,468 (151,263). 70,812 287,226 217,767 (156,069). 70,888 287,565 222,283 (158,636). 455,861. 419,736. 422,100. –. 197,814. 653,523. 419,736. 619,914. 175,468 1,912 500 16,450 34,279. 121,936 1,843 500 30,737 25,565. 85,334 1,548 500 18,269 30,108. 228,609. 180,581. 135,759. 1,213,171 28,448 139,402 – 2, 376 1,780 13,103. 1,328,924 59,899 162,744 1,631 1,775 2,351 17,432. 1,298,402 48,320 156,123 – – 2,276 14,564. Total current liabilities. 1,398,280. 1,574,756. 1,519,685. Total liabilities. 1,626,889. 1,755,337. 1,655,444. Total equity and liabilities. 2,280,412. 2,175,073. 2,275,358. Total equity attributable to ordinary equity holders of the parent. 14. Attributable to other equity holders - perpetual capital securities. 197,662 . Total equity Liabilities Non-current liabilities Interest bearing loans and borrowings Other creditors Provisions Pension deficit Deferred tax liabilities. 15. 17. Total non-current liabilities Current liabilities Investment contract liabilities Interest bearing loans and borrowings Trade and other payables Employee benefits Provisions Deferred income Current tax payable. 6. Aberdeen Asset Management PLC Interim Report and Accounts 2008. 13 15. WorldReginfo - 8410e5b4-9eba-4f13-9c2a-ce2d05669049. As at 31 March 2008.

(9) Summary Group Cash Flow Statement For the six months to 31 March 2008. 6 months to 31 March 2008 £'000. 6 months to 31 March 2007 £'000. Year to 30 September 2007 £'000. Core cashflow from operating activities Effects of short-term timing differences on unit trust settlements. 21,210 2,530. 19,269 (4,791). 33,423 3,728. Split capital settlement costs paid Other exceptional integration and settlement costs paid. 23,740 – (1,125). 14,478 (20,934) (17,267). 37,151 (46,776) (20,301). 22,615. (23,723). (29,926). 5,245 – – (87,161) (467) (1,231) (34,179). 21,646 – 1,500 – (960) (3,091) (16,058). 33,539 22 1,500 (50,009) (15,356) (6,367) (28,106). (117,793). 3,037. (64,777). 161 – – 90,559 – – (26,266). 1,156 – – 68,487 (24,997) (3) (14,979). 1,571 196,465 (29,473) 22,947 – (25,683) (39,409). 64,454. 29,664. 126,418. (30,724) 80,680 3,500. 8,978 48,120 (161). 31,715 48,120 845. 53,456. 56,937. 80,680. Net cash generated from (used in) operating activities Cash flows from investing activities Proceeds from sale of investments Proceeds from sale of property, plant and equipment Disposal of subsidiaries, net of cash disposed of Acquisition of subsidiaries, net of cash acquired Acquisition of intangible assets Acquisition of property, plant & equipment Acquisition of investments Net cash (used in) from investing activities Cash flows from financing activities Issue of ordinary share capital Issue of perpetual securities Purchase of own shares New borrowings Repayment of convertible bonds Repayment of borrowings Dividends paid Net cash from financing activities Net (decrease) increase in cash and cash equivalents Cash and cash equivalents at 1 October Effect of exchange rate fluctuations on cash held Cash and cash equivalents at end of period. 6. Aberdeen Asset Management PLC Interim Report and Accounts 2008. 7. WorldReginfo - 8410e5b4-9eba-4f13-9c2a-ce2d05669049. Notes.

(10) Notes For the six months to 31 March 2008. 1. Basis of preparation This condensed set of financial statements has been prepared in accordance with IAS 34 Interim Financial Reporting as adopted by the EU. As required by the Disclosure and Transparency Rules of the Financial Services Authority, the condensed financial statements have been prepared applying the accounting policies and presentation that were applied in the preparation of the Company's published consolidated financial statements for the year to 30 September 2007 except for the following changes. On 1 October 2007 the Group adopted IFRS 7 - Financial Instruments: Disclosures and IAS 1, Amendments to capital disclosures. As this interim report contains only condensed financial information, only disclosures of events or transactions that are material to understanding the current interim period have been disclosed. The full IFRS 7 disclosures, including sensitivity to market risk and capital disclosures required by the amendment to IAS 1 will be given in the annual financial statements. The preparation of the Interim Report requires management to make estimates and assumptions that affect the reported income and expense, assets and liabilities and disclosure of contingencies at the date of the Interim Report. Although these estimates and assumptions are based on management's best judgement at the date of the Interim Report, actual results may differ from these estimates. The interim results have not been audited but have been reviewed by the auditors. The comparative figures for the financial year to 30 September 2007 are not the company's statutory accounts for that financial year. Those statutory accounts have been reported on by the company's auditors and delivered to the Registrar of Companies. The report of the auditors was (i) unqualified; (ii) did not include a reference to any matters to which the auditors drew attention by way of emphasis without qualifying their report, and (iii) did not contain a statement under section 237(2) or (3) of the Companies Act 1985.. 2. Segmental information The primary business segments, based on the Group's management and reporting structure, are the investment management division and the property management division. The results, analysed between these two business segments, are shown below. Group total £'000. Turnover Net fair value losses on assets at fair value through income. 157,476 (1,372). 45,370 –. 202,846 (1,372) . Revenue. 156,104. 45,370. 201,474 . Operating costs Exceptional costs (note 3) Amortisation of intangible assets. (113,676) (3,125) (5,192). (40,222) (6,500) –. (153,898) (9,625) (5,192). Operating expenses. (121,993). (46,722). (168,715). Other operating income. 8. Property asset management £'000. 372. –. 372 . Operating profit (before exceptional items and amortisation of intangibles). 42,800. 5,148. 47,948 . Operating profit (loss) (after exceptional items and amortisation of intangibles). 34,483. (1,352). 33,131. Aberdeen Asset Management PLC Interim Report and Accounts 2008. WorldReginfo - 8410e5b4-9eba-4f13-9c2a-ce2d05669049. Six months to 31 March 2008. Investment management £'000.

(11) Segmental information continued Investment management £'000. Property asset management £'000. Group total £'000. Turnover Net fair value gains on assets at fair value through income. 128,926 693. 32,867 –. 161,793 693. Revenue. 129,619. 32,867. 162,486. Operating costs Exceptional costs (note 3) Amortisation of intangible assets Exceptional settlement costs (note 4). (93,126) (18,936) (4,500) (50,000). (26,313) – – –. (119,439) (18,936) (4,500) (50,000). (166,562). (26,313). (192,875). Six months to 31 March 2007. Operating expenses Exceptional gains on investments Gains on investments and other income. 7,892 3,482. – –. 7,892 3,482. Other operating income. 11,374. –. 11,374. Operating profit (before exceptional items and amortisation of intangibles). 39,975. 6,554. 46,529. (25,569). 6,554. (19,015). Operating (loss) profit (after exceptional items and amortisation of intangibles). Investment management £'000. Property asset management £'000. Group total £'000. Turnover Net fair value gains on assets at fair value through income. 277,958 869. 69,016 –. 346,974 869. Revenue. 278,827. 69,016. 347,843. Operating costs Exceptional costs (note 3) Amortisation of intangible assets Exceptional settlement costs (note 4). (196,679) (20,301) (9,285) (46,776). (54,620) – (119) –. (251,299) (20,301) (9,404) (46,776). Operating expenses. (273,041). (54,739). (327,780). Year to 30 September 2007. Exceptional gains on investments Gains on investments and other income. 8,667 3,440. – –. 8,667 3,440. Other operating income. 12,107. –. 12,107. Operating profit (before exceptional items and amortisation of intangibles). 85,588. 14,396. 99,984. Operating profit (after exceptional items and amortisation of intangibles). 17,893. 14,277. 32,170. Aberdeen Asset Management PLC Interim Report and Accounts 2008. 9. WorldReginfo - 8410e5b4-9eba-4f13-9c2a-ce2d05669049. 2.

(12) Notes continued. 3. Exceptional costs Exceptional costs incurred in the six months to 31 March 2008 comprise rationalisation and redundancy costs relating to acquisitions completed over the last 12 months and impairment of a seed capital investment. The exceptional costs incurred in prior periods relate to the acquisition and integration of certain fund management businesses of Deutsche Bank AG in late 2005. In the period since acquisition substantial integration costs were incurred in combining these acquired businesses with the existing businesses of the Group. These integration costs comprised charges in respect of a transitional services agreement with the vendor to ensure that both people and systems were transferred in a controlled manner; set up costs in respect of the migration of the back office data and systems to the Group's third party administrator; and costs of retaining duplicate staffing for a transitional period to ensure a smooth migration of data. The exceptional provision for VAT expense on investment trusts represents VAT which may be repayable to the Group’s UK investment trust clients following conclusion of an action brought against HMRC by a UK investment trust. The amount of this provision is an estimate of the costs which may arise in respect of historic periods in excess of the amount to be recovered from HMRC.. 4. 6 months to 31 March 2008 £'000. 6 months to 31 March 2007 £'000. Year to 30 September 2007 £'000. Transitional service costs from vendor Set-up costs in respect of back office data and systems Duplicate staff costs, redundancy costs and third party integration costs. – – 1,125. 10,245 2,401 6,290. 10,295 3,396 6,610. Exceptional integration costs. 1,125. 18,936. 20,301. VAT provision on investment trusts (note 18). 2,000. –. –. Exceptional impairment provision on property seed capital. 6,500. –. –. Total exceptional costs. 9,625. 18,936. 20,301. 6 months to 31 March 2008 £'000. 6 months to 31 March 2007 £'000. Year to 30 September 2007 £'000. Exceptional settlement costs. Recognised within operating profit Settlement of legal action initiated by Real Estate Opportunities Less payment made in 2006 to defend proceedings by Real Estate Opportunities. – –. 57,500 (7,500). 54,276 (7,500). –. 50,000. 46,776. On 16 March 2007 the Company announced that it had reached agreement with Real Estate Opportunities Limited ('REO') to settle the Company's part in the legal action initiated in 2005 by REO against the Company and another party. The Company made no admission whatsoever of any liability or acceptance of the validity of REO's claim, but the Board recognised that it was in the interests of the Group and its shareholders to conclude this matter and to end the distraction it was causing to the Company. The net cost to the Group, including the Group's legal costs and after return of the defence payment of £7,500,000, was £46,776,000.. 5. Other operating income Other operating income for the six months to 31 March 2008 comprises gains on the disposal of short term investments. Other operating income for the six months to 31 March 2007 comprises an exceptional gain of £7.9 million following the receipt of contingent deferred consideration in respect of the sale, in January 2005, of the Group's investment in Lombard International Assurance SA. The gain includes the transfer of £7 million from the available for sale reserve. The balance of other operating income comprise gains on the disposal of private equity investments.. 10. Aberdeen Asset Management PLC Interim Report and Accounts 2008. WorldReginfo - 8410e5b4-9eba-4f13-9c2a-ce2d05669049. The exceptional impairment provision arose from the decision to discontinue marketing a proposed property fund in order to focus attention on completion and integration of the DEGI acquisition. As a result of this decision, the fair value of this fund was considered to be impaired because of the accelerated recognition of future costs arising from the portfolio. An exceptional gain of a similar value is expected to arise in the second half of the financial year..

(13) Reconciliation of profit (loss) after tax to operating cash flow. Profit (loss) after tax. 6 months to 31 March 2007 £'000. Year to 30 September 2007 £'000. (13,723). 30,643. 1,737 5,192 1,372 6,500 (372) 4,068 609 5,043. 1,196 4,858 (693) – (3,482) 3,934 2,915 (8,207). 2,525 9,404 (869) – (12,170) 7,498 8,497 (6,970). 51,628 (151) 17 20,241 11,767 (51,527). (13,202) (1,852) (415) (21,010) – 20,904. 38,558 (4,981) (273) (24,711) (24,027) 20. Net cash inflows (outflows) from operating activities Net finance costs paid Corporation tax paid. 31,975 (647) (8,713). (15,575) (2,895) (5,253). (15,414) (4,807) (9,705). Net cash generated from (used in) operating activities. 22,615. (23,723). (29,926). 27,479. Depreciation charge Amortisation of intangible assets Fair value adjustment to investments Impairment of investments Gain on disposal of investments and other assets Share based element of remuneration Net finance costs Income tax expense (credit) Decrease in provisions Decrease (increase) in stock Decrease (increase) in trade and other receivables Decrease (increase) in short-term loans to property funds (Decrease) increase in trade and other payables. 7. 6 months to 31 March 2008 £'000. Dividends. Dividends on perpetual preference shares: Dividend paid Coupon payments in respect of perpetual capital securities (net of tax) Coupon payments made during the period Ordinary dividends Declared and paid during the period Dividends paid on ordinary shares: Final dividend for 2007 - 2.9p (2006 - 2.4p) Interim dividend for 2007 - 2.6p. Total dividends and coupon payments paid during the period. 6 months to 31 March 2008 £'000. 6 months to 31 March 2007 £'000. Year to 30 September 2007 £'000. –. –. 5,395. 5,453. –. 2,742. 18,451 –. 14,979 –. 14,978 16,294. 18,451. 14,979. 31,272. 23,904. 14,979. 39,409. The interim ordinary dividend of 2.8p per share will be paid on 19 June 2008 to qualifying shareholders on the register at 16 May 2008.. Aberdeen Asset Management PLC Interim Report and Accounts 2008. 11. WorldReginfo - 8410e5b4-9eba-4f13-9c2a-ce2d05669049. 6.

(14) Notes continued. 8. Earnings per share The calculations of earnings per share are based on the following profits and numbers of shares. Basic earnings per share amounts are calculated by dividing profit for the period attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding during the period. Diluted earnings per share amounts are calculated by dividing the profit for the period attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding during the period plus the weighted average number of ordinary shares that would be issued on the conversion of all the potentially dilutive shares into ordinary shares. Underlying earnings per share figures are calculated by adjusting the profit to exclude exceptional items and amortisation of intangible assets. The purpose of providing the underlying earnings per share is to allow readers of the accounts to clearly consider trends without the impact of exceptional and non-cash items.. Basic earnings per share Profit (loss) for the financial period. 27,479. Dividends on convertible preference share units (2,697) Coupon payments in respect of perpetual capital securities (net of tax) (5,487) Profit (loss) for the financial period, attributable to ordinary shareholders 19,295 Amortisation of intangible assets, net of attributable taxation Exceptional gains on disposal of investments, net of attributable taxation Exceptional integration costs, net of attributable taxation Exceptional VAT expense on investment trusts, net of attributable taxation Exceptional impairment costs, net of attributable taxation Exceptional settlement costs, net of attributable taxation Non-recurring finance costs, net of attributable taxation. Underlying. 6 months to 31 March 2007 £'000. Year to 30 September 2007 £'000. (13,723) 30,643 (2,697) –. Basic earnings (loss) per share. 12. 3.21p. 6 months to 31 March 2007 £'000. Year to 30 September 2007 £'000. 27,479. (13,723). 30,643. (5,395). (2,697). (2,697). (5,395). (3,686). (5,487). –. (3,686). (16,420) 21,562 . 19,295. (16,420). 21,562. . 4,654. 4,500. 9,054. . –. (7,892). (6,067). . 810. 14,482. 14,211. . 1,440. –. –. . 4,680. –. –. . –. 38,241. 32,743. . –. –. 1,945. 30,879. 32,911. 73,448. 597,388. 600,433. 601,740. 597,388. 3.61p. 5.14p. 5.47p. 12.29p. Profit for the financial period underlying basis Weighted average number of shares 600,433. 6 months to 31 March 2008 £'000. 601,740. (2.73p). Aberdeen Asset Management PLC Interim Report and Accounts 2008. WorldReginfo - 8410e5b4-9eba-4f13-9c2a-ce2d05669049. IAS 33 6 months to 31 March 2008 £'000.

(15) Earnings per share continued IAS 33 6 months to 31 March 2008 £'000. Diluted earnings per share Profit (loss) for calculation of basic earnings per share, as above Add: interest on 2010 convertible bonds, net of attributable taxation Add: dividend on convertible preference share units Profit (loss) for calculation of diluted earnings per share Weighted average number of shares For basic earnings per share Dilutive effect of 2010 convertible bonds Dilutive effect of convertible preference share units Dilutive effect of LTIP awards Dilutive effect of exercisable share options. 6 months to 31 March 2007 £'000. Year to 30 September 2007 £'000. 6 months to 31 March 2008 £'000. 6 months to 31 March 2007 £'000. Year to 30 September 2007 £'000. 21,562. 30,879. 32,911. 73,448. 19,295. (16,420). N/A. N/A. N/A. 101. 419. 1,170. N/A. N/A. 19,295. N/A. 2,697. 2,697. 5,395. (16,420) 21,562. 33,677. 36,027. 80,013. 597,388. 600,433. 601,740. 597,388. 600,433. 601,740. N/A. N/A. N/A. 2,793. 24,737. 24,737. N/A 26,217. N/A –. N/A 14,629. 82,395 26,217. 80,733 –. 81,554 14,629. 2,730. N/A. 3,291. 2,730. 3,762. 3,291. 629,380. 601,740. 615,308. 714,568. 710,972. 721,599. 3.07p. (2.73p). 3.50p. 4.71p. 5.07p. 11.09p. 31 March 2008 £'000. 31 March 2007 £'000. 30 September 2007 £'000. 197,287 508,053. 147,307 399,861. 185,718 433,969. 705,340. 547,168. 619,687. 31 March 2008 £'000. 31 March 2007 £'000. 30 September 2007 £'000. Non-current assets Non-current investments. 41,072. 19,343. 34,898. Current assets Liquid investments of life and pensions subsidiary Listed equities - held for trading. 13,039 27,986. 12,841 13,550. 14,530 8,978. 41,025. 26,391. 23,508. 31 March 2008 £'000. 31 March 2007 £'000. 30 September 2007 £'000. 520. 679. 537. Diluted earnings (loss) per share. 9. Underlying. Intangible assets. Intangible assets Goodwill. 10 Other investments. 11 Stock of units and shares. Units and shares in managed funds. Aberdeen Asset Management PLC Interim Report and Accounts 2008. 13. WorldReginfo - 8410e5b4-9eba-4f13-9c2a-ce2d05669049. 8.

(16) Notes continued. 12 Acquisitions On 1 October 2007 the Group completed the acquisition of the US equity asset management business of Nationwide Financial Services Inc. The acquisition includes a broad cross-section of US equity strategies in sub-advisory mandates for 30 mutual funds and variable insurance trusts amounting to £3.4 billion in assets under management. The acquisition was completed for a cash consideration of US$32 million. On 27 March 2008 the Group's wholly owned subsidiary, Aberdeen Property Investors Holding AB, completed the acquisition of 100% of the ordinary share capital of DEGI Deutsche Gesellschaft für Immobilienfonds mbH ( 'DEGI' ) from Dresdner Bank AG. The economic benefit of the acquisition was effective from 1 January 2008 and the Group were governing the operating and financial policies of DEGI from that date. The Group have therefore taken 1 January 2008 as the date of acquisition. DEGI has approximately E6.4 billion (£5.1 billion) of assets under management in a number of property funds offering German, European or global commercial property exposure. The acquisition was completed for a cash consideration of E110 million (£87.4 million). Provisional values for the net assets and liabilities of the acquired businesses at the date of the acquisition are set out in the table below. The Group will engage external valuation specialists to advise on the correct allocation of the purchase price between goodwill, intangible assets (which mainly relate to management contracts) and tangible assets. Business acquired from Nationwide Financial Services Inc. At date of acquisition £’000. Fair value adjustments £’000. Adjusted fair value £’000 . Acquisition of DEGI At date of acquisition £’000. Intangible assets Property, plant & equipment Trade and other receivables Cash and cash equivalents Trade and other payables Deferred tax on intangible assets. – 965 – – – –. 15,254 – – – – (4,271). 15,254 965 – – – (4,271). 66 10,420 27,392 12,858 (31,783) –. Net assets of acquired business Goodwill. 965 –. 10,983 4,271. 11,948 4,271. 18,953 69,173. 965. 15,254. 16,219. 88,126. 2,889 242 13,088. 87,398 728 –. 16,219. 88,126. Discharged by: Cash consideration Expenses of acquisition Deferred consideration. 13 Other financial investments / investment contract liabilities These balances represent unit linked business carried out by the Group's life and pensions subsidiary. The assets represent investments held to meet contracted liabilities.. 14. Aberdeen Asset Management PLC Interim Report and Accounts 2008. WorldReginfo - 8410e5b4-9eba-4f13-9c2a-ce2d05669049. The businesses acquired during the period are being integrated with the Group's existing investment management and property asset management businesses therefore the results and cashflows can no longer be separately identified..

(17) 14 Statement of changes in equity. 6 months to 31 March 2008 £'000. 6 months to 31 March 2007 £'000. Year to 30 September 2007 £'000. Profit (loss) for the period Other recognised income and expense Dividends paid Issue of ordinary share capital Share based payments Movement on coupon outstanding on perpetual capital securities Purchase of own shares. 27,479 3,949 (23,904) 22,203 4,068 (34) –. (13,723) (6,747) (14,979) 1,156 3,934 – –. 30,643 2,524 (39,409) 1,571 7,498 (1,349) (29,473). Net additions to (deductions from) shareholders' funds Opening shareholders' funds. 33,761 422,100. (30,359) 450,095. (27,995) 450,095. Closing shareholders' funds. 455,861. 419,736. 422,100. 15 Interest bearing loans and borrowings. Non-current liabilities Amount drawn under bank revolving credit facility 7.2% Subordinated notes 2016 4.5% Convertible bonds 2010. Current liabilities Amount drawn under bank revolving credit facility Unsecured guaranteed loan notes 2003 - 2008. 16 Analysis of changes in net debt. Cash at bank and in hand Debt due within one year Debt due after more than one year Convertible debt due after more than one year. Total. At 1 October Cash 2007 flow £'000 £'000. 31 March 2008 £'000. 31 March 2007 £'000. 30 September 2007 £'000. 110,431 62,210 2,827. 34,600 63,031 24,305. – 60,643 24,691. 175,468. 121,936. 85,334. 28,075 373. 58,887 1,012. 47,947 373. 28,448. 59,899. 48,320. Other non cash Exchange changes movement £'000 £'000. At 31 March 2008 £'000. 80,680. (30,724). –. 3,500. (48,320) (60,643) (24,691). – (90,559) –. 19,872 (19,899) 21,864. – (1,540) –. (28,448) (172,641) (2,827). (133,654). (90,559). 21,837. (1,540). (203,916). (52,974). (121,283). 21,837. 1,960. (150,460). 53,456 . The non-cash change in the convertible debt due after more than one year relates to the conversion of convertible debt into ordinary shares. The issue of share capital in respect of the conversion is shown in note 14.. Aberdeen Asset Management PLC Interim Report and Accounts 2008. 15. WorldReginfo - 8410e5b4-9eba-4f13-9c2a-ce2d05669049. In December 2007 the holders of £23.6 million 4.5% Convertible bonds 2010 opted to convert their holdings into ordinary shares which resulted in the issue of 21.9 million ordinary shares. A further 297,500 ordinary shares were issued during the period in respect of the exercise of share options..

(18) Notes continued. 17 Pension deficit The Group's principal form of pension provision is by way of three defined contribution schemes operated world-wide. The Group also operates three legacy defined benefit schemes in the UK: the CGA Staff Pension Fund, the Murray Johnstone Limited Retirement Benefits Plan and the Edinburgh Fund Managers Group plc Retirement and Death Benefits Plan. All three defined benefit schemes are closed to new membership and to future service accrual. The actuarial valuations of the defined benefit pension schemes referred to above were updated to 30 September 2007 by the respective independent actuaries using the projected unit method. Contributions to the schemes since 30 September 2007 have been set off against the scheme deficits.. Combined pension scheme deficits. 31 March 2008 £'000. 31 March 2007 £'000. 30 September 2007 £'000. 16,450. 30,737. 18,269. 18 Contingent Liabilities An action against HM Revenue & Customs (‘HMRC’) brought jointly by the Association of Investment Companies (‘AIC’) and a UK investment trust in early 2004 sought to establish that charges for investment management services provided to UK investment trusts should be exempt from VAT, rather than being subject to the standard rate as required by UK VAT legislation. Following a decision of the European Court of Justice on certain questions referred by the UK VAT Tribunal, HMRC announced on 26 October 2007 that it would no longer seek to defend this case. A number of the Group’s UK subsidiaries, in common with other UK asset managers, now face claims from investment trust clients for the repayment of VAT previously charged for periods back to 1990. The Group charged VAT in accordance with applicable legislation at the time, but provision has been recognised to the extent that payments to investment trusts are expected to exceed the amounts recoverable from HMRC. The provision of £2 million represents the estimated net cost to the Group. Significant uncertainty remains as to the final quantification of amounts recoverable from HMRC and amounts payable to investment trusts. Also, uncertainty remains over the methodology to be adopted by HMRC and the timing of such payments.. 16. Aberdeen Asset Management PLC Interim Report and Accounts 2008. WorldReginfo - 8410e5b4-9eba-4f13-9c2a-ce2d05669049. This statement is available on our website and copies are being sent to shareholders..

(19) Principal risks. In common with many businesses, the Group is exposed to a range of risks. Some of these risks are an inherent part of the business conduct by the Group such as taking investment decisions on behalf of clients and our energies are focussed on managing this risk as opposed to eliminating it. On the other hand there is regulatory and compliance risk which we actively seek to avoid. The management of risk is embedded in the culture of the business and in the way in which the Group carries out its business. The Risk Management Committee together with the Risk, Compliance and Internal Audit departments are responsible for overseeing the implementation of the Group’s risk strategies and this involves the provision of regular reports to the Group Board. The principal risks to which the Group will be exposed in the second half of the financial year are substantially the same as those discussed in the 2007 annual report.. Responsibility statement. We confirm that to the best of our knowledge: •. the condensed set of financial statements have been prepared in accordance with IAS 34 Interim Financial Reporting as adopted by the EU. •. the interim management report includes a fair review of the information required by: (a) DTR 4.2.7R of the Disclosure and Transparency Rules, being an indication of important events that have occurred during the first six months of the financial year and their impact on the condensed set of financial statements; and a description of the principal risks and uncertainties for the remaining six months of the year; and (b) DTR 4.2.8R of the Disclosure and Transparency Rules, being related party transactions that have taken place in the first six months of the financial year and that have materially affected the financial position or performance of the entity during that period; and any changes in the related party transactions described in the last annual report that could do so.. Scott E Massie Secretary 6 May 2008. Aberdeen Asset Management PLC Interim Report and Accounts 2008. 17. WorldReginfo - 8410e5b4-9eba-4f13-9c2a-ce2d05669049. For and on behalf of the Board.

(20) Independent Review report to Aberdeen Asset Management PLC Introduction. Scope of review. We have been engaged by the company to review the condensed set of financial statements in the half-yearly financial report for the six months ended 31 March 2008 which comprises the Group Income Statement, the Group Statement of Recognised Income and Expense, the Group Balance Sheet, Cash Flow Statement and the related Notes. We have read the other information contained in the halfyearly financial report and considered whether it contains any apparent misstatements or material inconsistencies with the information in the condensed set of financial statements.. We conducted our review in accordance with International Standard on Review Engagements (UK and Ireland) 2410 Review of Interim Financial Information Performed by the Independent Auditor of the Entity issued by the Auditing Practices Board for use in the UK. A review of interim financial information consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK and Ireland) and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.. This report is made solely to the company in accordance with the terms of our engagement to assist the company in meeting the requirements of the Disclosure and Transparency Rules ("the DTR") of the UK's Financial Services Authority ("the UK FSA"). Our review has been undertaken so that we might state to the company those matters we are required to state to it in this report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company for our review work, for this report, or for the conclusions we have reached.. Conclusion Based on our review, nothing has come to our attention that causes us to believe that the condensed set of financial statements in the half-yearly financial report for the six months ended 31 March 2008 is not prepared, in all material respects, in accordance with IAS 34 as adopted by the EU and the DTR of the UK FSA.. Directors' responsibilities The half-yearly financial report is the responsibility of, and has been approved by, the directors. The directors are responsible for preparing the half-yearly financial report in accordance with the DTR of the UK FSA.. Our responsibility Our responsibility is to express to the company a conclusion on the condensed set of financial statements in the halfyearly financial report based on our review.. 18. Aberdeen Asset Management PLC Interim Report and Accounts 2008. KPMG Audit Plc Chartered Accountants 6 May 2008. WorldReginfo - 8410e5b4-9eba-4f13-9c2a-ce2d05669049. As disclosed in note 1, the annual financial statements of the group are prepared in accordance with IFRSs as adopted by the EU. The condensed set of financial statements included in this half-yearly financial report has been prepared in accordance with IAS 34 Interim Financial Reporting as adopted by the EU..

(21) Principal offices. Aberdeen Asset Management PLC 10 Queen’s Terrace, Aberdeen AB10 1YG Tel: +44 (0) 1224 631999 Fax: +44 (0) 1224 647010 Aberdeen Asset Managers Limited One Bow Churchyard, Cheapside, London EC4M 9HH Tel: +44 (0) 20 7463 6000 Fax: +44 (0) 20 7463 6001 Aberdeen Asset Managers Limited Sutherland House, 149 St. Vincent Street, Glasgow G2 5NW Tel: +44 (0) 141 306 7400 Fax: +44 (0) 141 306 7401 Aberdeen Asset Managers Limited 7th Floor, 40 Princes Street, Edinburgh EH2 2BY Tel: +44 (0) 131 528 4000 Fax: +44 (0) 131 528 4400 Aberdeen Asset Managers Limited, Private Equity Division St James's House, 7 Charlotte Street, Manchester M1 4DZ Tel: +44 (0) 161 233 3500 Fax: +44 (0) 161 233 3550 Aberdeen Private Wealth Management Limited No.1 Seaton Place, St. Helier, Jersey JE4 8YJ Tel: +44 (0) 1534 758847 Fax: +44 (0) 1534 705052. Asia Pacific Aberdeen Asset Management Asia Limited 21 Church Street, #01-01 Capital Square Two, Singapore 049480 Tel: +65 6395 2700 Fax: +65 6535 7159 Aberdeen Asset Management Limited Level 6, 201 Kent Street, Sydney, NSW 2000, Australia Tel +61 2 9950 2888 Fax +61 2 9950 2800. Aberdeen International Fund Managers Limited Room 2605-06, 26/F Alexandra House, 18 Chater Road,Central, Hong Kong Tel: +852 2103 4700 Fax: +852 2103 4788 Aberdeen Asset Management Company Limited 28th Floor, Bangkok City Tower, 179 South Sathorn Road, Thungmahamek, Sathorn, Bangkok 10120, Thailand Tel: +66 2 352 3333 Fax: +66 2 636 6482 Aberdeen Asset Management Sdn Bhd Suite 25.3 Level 25, Menara IMC, Letter Box No. 66 No. 8 Jalan Sultan Ismail, 50250 Kuala Lumpur, Malaysia Tel: +60 3 2053 3800 Fax: +60 3 2031 1868. Europe Aberdeen Property Investors AB Luntmakargatan 34, Box 3039, 103 63 Stockholm, Sweden Tel: +46 8 412 8000 Fax: +46 8 412 8004 DEGI Deutsche Gesellschaft für Immobilienfonds mbH Weserstraße 54 DE-60329 Frankfurt am Main, Germany Tel: +49 (0)69 263 12011 Fax: +49 (0)69 263 51775. United States of America Aberdeen Asset Management Inc. 1735 Market Street, 37th Floor Philadelphia, PA 19103 Tel: +(1) 215 405 5700 Fax: +(1) 215 405 5780 Five Tower Bridge, 300 Bar Harbor Drive, Suite 300 West Conshohocken, Philadelphia, PA 19428 Tel: +(1) 610 238 3600 Fax: +(1) 610 238 3660 300 S.E. 2nd Street, Suite #820, Fort Lauderdale, Florida 33301, USA Tel: +(1) 954 767 9900 Fax: +(1) 954 767 6006. Details of other office locations can be found on the Group’s website at www.aberdeen-asset.com. Aberdeen Asset Management PLC Interim Report and Accounts 2008. 19. WorldReginfo - 8410e5b4-9eba-4f13-9c2a-ce2d05669049. United Kingdom and Channel Islands.

(22) Corporate information. Registrars. Bankers. Equiniti Limited PO Box 28448 Finance House, Orchard Brae Edinburgh EH4 1WQ. Bank of Scotland Corporate North of Scotland 3/5 Albyn Place Aberdeen AB10 1YP. Company Secretary. Registered Number. Scott E Massie. 82015. Registered Office. Stockbrokers. 10 Queen’s Terrace Aberdeen AB10 1YG. JP Morgan Cazenove Limited 20 Moorgate London EC2R 6DA. Auditors. 20. Aberdeen Asset Management PLC Interim Report and Accounts 2008. Landsbanki Securities (UK) Limited Beaufort House 15 St Botolph Street London EC3A 7QR. WorldReginfo - 8410e5b4-9eba-4f13-9c2a-ce2d05669049. KPMG Audit Plc Chartered Accountants 37 Albyn Place Aberdeen AB10 1JB.

(23) WorldReginfo - 8410e5b4-9eba-4f13-9c2a-ce2d05669049. Designed and produced by Linnett Webb Jenkins and Aberdeen Asset Management PLC. Printed by Precision Printing..

(24) Aberdeen Asset Management PLC 10 Queen’s Terrace Aberdeen AB10 1YG Tel +44 (0) 1224 631999 Fax +44 (0) 1224 647010. 01 1002_0508. WorldReginfo - 8410e5b4-9eba-4f13-9c2a-ce2d05669049. aberdeen-asset.com.

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