Half Yearly Report

ABERDEEN ASSET MANAGEMENT PLC

Interim Results for six months to 31 March 2012

Highlights

·; Revenue £413.1 million (+7%)

·; Underlying profit before tax £162.2 million (+14%)

·; Underlying earnings per share 10.43p (+17%)

·; Dividend per share 4.4p (+16%)

·; Operating margin 40.1% (1H 2011: 38.1%)

·; Average fee margin 43.9bps (1H 2011: 40.5bps)

·; AuM £184.7 billion (+9% on 30 September 2011)

Financial highlights

Martin Gilbert, Chief Executive of Aberdeen Asset Management, commented:

"Aberdeen has achieved further growth in revenue and profit in the first half year, continuing the momentum of 2010 and 2011. Our blended average fee rate has been improved by strong inflows into key products and AuM has grown by 9% since our last year end.

"Global economic conditions remain uncertain and any recovery is still tentative. Nevertheless, we remain confident that our long term investment philosophy and process, couple with the scale and diversity of our business and financial strength, leave us well placed to meet the expectations of our investors."

Management will host a presentation for analysts and institutions today at 10:00 (UK) to be held at the offices of Aberdeen Asset Management, Bow Bells House, 1 Bread Street, London EC4M 9HH. The event will also be available to view via a live webconference. To register please use the following weblink:

http://mediazone.brighttalk.com/event/Aberdeen/6646b06b90-6048-intro

For further information, please contact:

Aberdeen Asset Management

Martin Gilbert + 44 (0) 207 463 6000

Bill Rattray

Maitland

Neil Bennett + 44 (0) 207 379 5151

Rowan Brown

Chairman's statement

The first half of the current financial year has continued the trend of 2011, with further strong growth in revenue and profit. We have continued to focus on organic growth and control of costs which together have delivered further improvements in our revenue and profit margins.

The healthier tone shown by global financial markets during the period, particularly since the start of 2012, has supported a return of investor appetite for risk assets and an ongoing desire for yield. Our long term investment philosophy and process have continued to generate outperformance against benchmarks and healthy demand for our key products.

Our focus on organic growth and increased regional distribution has enabled further strong inflows, principally into pooled funds, which now represent 43.7% of total AuM (30 September 2011: 39.7%).

Financials

Profit before taxation for the period was £124.3 million (2011: £109.1 million). Underlying profit, stated before amortisation of intangible assets, was £162.2 million compared to £142.8 million in 2011. This represents underlying earnings per share, on a diluted basis, of 10.43p, (2011: 8.91p). The Board has decided to pay an interim dividend of 4.4 pence per share, an increase of 16% on the 2011 interim payment. The interim dividend will be paid on 14 June 2012 to qualifying shareholders on the register at 11 May 2012.

Revenue for the period increased by 7% to £413.1 million (2011: £385.9 million), with recurring fee income of £395.7 million (2011: £366.8 million) supplemented by performance fee income of £17.4 million (2011: £19.1 million). The average fees earned on new business continue to run at higher rates than our existing AuM and, as a result, the blended average management fee rate for the period improved to 43.9 basis points (year to 30 September 2011: 41.2bps).

The Group's operating margin for the period was 40.1%, continuing the steady improvement achieved over the last 3 years and ahead of the 39.5% reported for the full year to 30 September 2011.

We generated £164.6 million of operating cashflow (2011: £171.2 million). We spent £72.5 million to purchase shares for the deferred bonus scheme, which reduces potential EPS dilution for shareholders, and £57.6 million on the payment of the final dividend for 2011.

Review of operations

Assets under management have increased by 8.7% compared to the value at the end of our last financial year and this change is analysed on the following table.

Gross new business inflows for the period totalled £18.2 billion (2011: £23.0 billion). Outflows were £18.6 billion (2011: £23.7 billion), resulting in a small net outflow for the six months of £0.4 billion (2011: net outflow £0.7 billion).

The major element of these inflows was into our equity products, particularly global emerging, global and Asia Pacific equities but we have also seen healthy interest in emerging market debt and Asia Pacific fixed income, both higher margin fixed income strategies. Demand for our mainstream GEM equity product has continued to be extremely strong, and we have continued our efforts to moderate the rate of inflows into these funds. Whilst the strong demand is clearly an endorsement of the integrity of the franchise built over the years, we are not prepared to compromise the quality of the portfolios by diversifying into stocks of lesser quality. To do otherwise would not be in the best interests of existing clients. It is pleasing, however, to see growing interest in our Latin American and other regional emerging market capabilities, which are less capacity-constrained.

Our property capability continues to generate considerable interest, albeit this is reflected in new business wins which will fund in later periods and which are not reflected in the flows or AuM for the period under review. In particular, we have achieved a successful first closing of our third Asia Pacific property fund of funds, which raised a total of US$242 million of commitments from new and existing clients. We have also been appointed to manage two new mandates which are expected to add approximately £200 million of AuM in the coming months.

We remain focused on marketing our Aberdeen Solutions capability to our existing investor base and to the consultant channel and were rewarded for strong performance during the period. The US$1.6 billion Aberdeen Orbita Capital Return fund won the 2011 award for Best Fund of Hedge Fund multi-strategy, at the prestigious Hedge Fund Manager European Performance Awards which recognised the strong performance of the fund during 2011, against a backdrop of difficult markets.

We have a global focus on distribution, and we are working to expand our network into a number of key markets. We continue our efforts to increase our wholesale business, focusing on markets globally but with particular emphasis on the US and Europe, including the UK. For instance, in the UK, our aim is to become one of the top 10 managers of retail AuM, from our current rank of 14th (according to IMA). We continue to build our brand in these markets with increased marketing and advertising activity and tapping into global demand for yield, global product and capital protection.

Outlook

We are encouraged by the strong start to the current financial year but, as we have already seen during the first few weeks of April, global markets remain susceptible to periodic bouts of volatility. We remain confident that our long term investment philosophy and process are well suited to operating successfully in such conditions, and we will continue to pursue our objective of generating further sustainable growth in profits and increased financial strength.

Finally, I would like to welcome Richard Mully to the Board and to thank two of my former colleagues, Sir Malcolm Rifkind and Gerhard Fusenig, who stepped down during the six month period for their support and contribution during their time on the Board.

Roger C Cornick

Chairman

27 April 2012

Condensed consolidated income statement

For the six months to 31 March 2012

Condensed consolidated statement of comprehensive income

For the six months to 31 March 2012

Condensed consolidated balance sheet

31 March 2012

Condensed consolidated statement of changes in equity

Condensed consolidated cash flow statement

For the six months to 31 March 2012

Notes to the interim condensed consolidated financial statements

For the six months to 31 March 2012

1 General information

The interim results have not been audited but have been reviewed by the auditor. The condensed comparative figures for the financial year to 30 September 2011 are not the company's statutory accounts for that financial year. Those accounts have been reported on by the company's auditor and delivered to the Registrar of Companies. The auditor's report was unqualified and did not contain a statement under section 498 of the Companies Act 2006.

2 Accounting policies

Basis of preparation

These condensed financial statements have been prepared in accordance with IAS 34 Interim Financial Reporting as adopted by the EU. The annual financial statements are prepared in accordance with IFRS 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 Group's published consolidated financial statements for the year ended 30 September 2011.

The preparation of interim financial statements 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 financial statements. Although these estimates and assumptions are based on management's best judgement at the date of the interim financial statements, actual results may differ from these estimates. The interim financial statements, which are in a condensed format, do not include all the information and disclosures required in the Group's annual report, and should be read in conjunction with the Group's annual report for the year ended 30 September 2011.

Going concern

The directors are satisfied that the Group has sufficient resources to continue in operation for the foreseeable future, a period of not less than twelve months from the date of this report. Accordingly, it is appropriate to adopt the going concern basis in preparing the condensed financial statements.

Segmental disclosures

The Group operates a single business segment of asset management for reporting and control purposes.

IFRS 8 Operating Segments requires disclosures to reflect the information which the Group Management Board, being the body that is the Group's chief operating decision maker, uses for evaluating performance and the allocation of resources. The Group is managed as a single asset management business, with multiple asset classes including equities, fixed income, property and Aberdeen Solutions that are managed across a range of products, distribution channels and geographic regions. Reporting provided to the Group Management Board is on an aggregated basis.

3 Revenue

4 Analysis of cash flows

5 Tax expense

The tax charge for the six month period ended 31 March 2012 is calculated using the expected effective annual tax rate in each country of operation and applying these rates to the results of each country for the first six months of the year.

6 Dividends and coupon payments

The interim ordinary dividend of 4.4p per share will be paid on 14 June 2012 to qualifying shareholders on the register at 11 May 2012.

7 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 net 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 net 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 amortisation and impairment 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 certain non-cash items.

8 Intangible assets

9 Other investments

Seed capital investments comprise amounts invested in funds when the intention is to dispose of these as soon as practicably possible.

10 Assets backing 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.

11 Share capital

232,000 ordinary shares of 10p were issued in respect of the conversion of 72 preference shares and the exercise of share options.

12 Interest bearing loans and borrowings

13 Analysis of changes in net cash

14 Retirement benefits

The Group's principal form of pension provision is by way of three defined contribution schemes operated worldwide. The Group also operates a number of legacy defined benefit schemes. There are three schemes in the UK which are closed to new membership and to future service accrual, two schemes in Japan and schemes in Germany, Norway and Finland.

The actuarial valuations of the defined benefit pension schemes referred to above were updated to 30 September 2011 by the respective independent actuaries. Contributions to the schemes since 30 September 2011 have been set off against the scheme deficits.

15 Contingent liabilities

The Group may, from time to time, be subject to claims, actions or proceedings in the normal course of its business. While there can be no assurances, the directors believe, based on information currently available to them, that the likelihood of a material outflow of economic benefits is remote.

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 conducted 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 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 described on page 8 and 9 and 25 of the 2011 annual report, being investment performance, change in or loss of investment personnel, regulatory, client relationship and retention, business continuity, supplier, interest rate, liquidity and foreign currency risks..

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 current 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 current 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.

For and on behalf of the Board

Scott E Massie

Secretary

27 April 2012

Independent review report to Aberdeen Asset Management PLC

Introduction

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 2012 which comprises the condensed consolidated statement of income, the condensed consolidated statement of comprehensive income, the condensed consolidated balance sheet, the condensed consolidated statement of changes in equity, the condensed consolidated cash flow statement and the related notes. We have read the other information contained in the half-yearly financial report and considered whether it contains any apparent misstatements or material inconsistencies with the information in the condensed set of financial statements.

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.

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.

As disclosed in note 2, 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.

Our responsibility

Our responsibility is to express to the company a conclusion on the condensed set of financial statements in the half-yearly financial report based on our review.

Scope of review

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.

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 2012 is not prepared, in all material respects, in accordance with IAS 34 as adopted by the EU and the DTR of the UK FSA.

G Bainbridge

for and on behalf of KPMG Audit Plc

Chartered Accountants

37 Albyn Place

Aberdeen

AB10 1JB

27 April 2012

Assets under Management at 31 March 2012

Overall new business flows for 6 months to 31 March 2012 - By mandate type

Overall new business flows for 6 months to 31 March 2012 - By asset class

New business flows for 6 months to 31 March 2012 - Equities

New business flows for 6 Months to 31 March 2012 - Fixed income

New business flows for 6 months to 31 March 2012 - Aberdeen solutions