Half Yearly Report

ABERDEEN ASSET MANAGEMENT PLC

Interim Results for six months to 31 March 2011

Financial highlights

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

"These are very strong results reflecting continuing top line growth across profits, margins, revenue and assets under management. This combined with a healthy net cash position and strengthened balance sheet underscores the positive performance of the company over the last six months.

"Demand for Aberdeen's established Asia Pacific, emerging market and global equities products has remained strong and there is a growing interest in some of our fixed income, property and alternative capabilities.

"Macro events in recent months have generated significant volatility in global markets and this looks set to continue. We are committed in our belief that our investment philosophy and process are well suited to such conditions."

Management will host a presentation for analysts and institutions at 10:00 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/e9470886ec-5009-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 5151Charlotte Walsh

Chairman's statement

Despite the political, economic and climatic instability of the last six months, I am pleased to be able to report a record interim profit of £142.8 million, reflecting both strong income growth and a continuing determination to control costs. Operating profit has been converted fully to cashflow and net debt eliminated, with the balance sheet disclosing a net cash position of £13.5 million at the end of the period.

We remain focused on organic growth and are committed to developing our global distribution network as well as adhering to our proven investment process which accentuates discipline and the longer term view. We have enjoyed further strong inflows into our higher margin equity products and have seen a definite slowing of outflows from the lower margin fixed income products.

Demand for our Asia Pacific, emerging market and global equities products has remained strong, despite a recent pullback in Asian and emerging markets which prompted some investors to take profit. Notwithstanding sentiment turning more nervous towards emerging markets during January and February, we are pleased to report continued net inflows into this strategy during the period, albeit at a slower rate than in 2010. We welcome this slowdown in the rate of emerging market equity inflows to a more sustainable level. We will remain robust on fee rates, but we believe that investor appetite for this asset class will continue.

Redemptions from the more traditional fixed income strategies have steadily slowed and we are seeing encouraging interest in emerging market and Asian local currency debt, both of which we believe will provide considerable opportunity for new business wins over the next few years.

The diversity of our business continues to grow and we are encouraged that an increasing proportion of new business flows are invested in pooled funds which, as well as being higher margin products, enable more efficient use of our managers' time and resource. This has contributed to an increase in the blended average fee rate we earn on assets under management ("AuM"), and we aim to continue this trend going forward.

Financials

Profit before taxation for the period was £109.1 million (2010: £59.5 million). Underlying profit, stated before amortisation of intangible assets, was £142.8 million compared to £92.6 million in 2010. This represents underlying earnings per share, on a diluted basis, of 8.91p, (2010: 6.05p). The Board has decided to pay an interim dividend of 3.8p per share, an increase of 19% on the 2010 interim payment. The interim dividend will be paid on 16 June 2011 to qualifying shareholders on the register at 13 May 2011.

Revenue for the period increased to £385.9 million (2010: £294.9 million). The strong investment performance delivered by our teams has generated performance fee income of £19.1 million (2010: £9.4 million). While such fees are welcome, we believe that the true measure of progress is the 28% increase in recurring fee income to £366.5 million (2010: £285.5 million); a major factor in this growth is that new business flows are being won at higher average fee rates than previously, and the blended average management fee margin for the period has improved to 40.5 basis points (from 37.4 basis points in 2010).

The Group's operating margin for the period was 38.1%, demonstrating strong improvement on the 34.8% reported for the full year to 30 September 2010. We are confident that we can continue to grow the margin from this level through further additions of AuM and fee income combined with tight cost control; this will be aided by the fact that some third party administration costs will fall away during the remainder of 2011.

Operating cashflow for the period was £171.2 million (2010: £96.5 million). We have utilised £62.7 million of this cashflow to satisfy the vesting of deferred share-based remuneration from market purchases of shares rather than new issuance, which we believe to be beneficial to shareholders. We intend to repay the $125 million (£78 million) 7.2% subordinated notes when they reach the first call date in July.

Review of operations

Assets under management have increased by 1.4 % compared to the value at the end of our last financial year and this change is analysed in the following table.

Gross new business inflows for the period totalled £23.0 billion (2010: £25.1 billion). Outflows were £23.7 billion (2010: £25.0 billion), resulting in a net outflow for the six months of £0.7 billion (2010: net inflow £0.1 billion). A further £2.7 billion of new mandates had been awarded but not funded by the period end.

The composition of the new business flows is summarised in the following table.

Our teams have again generated good investment performance. Our equity performance remains consistently ahead of both short term and long term benchmarks, while the fixed income strategies are strongly ahead of benchmark over one and two year periods and the key three year track record continues to improve. This has provided the platform from which to launch some new equity and fixed income products. While these new funds are focused on some of our traditional strengths, such as Latin American equities and emerging market debt, we have also been promoting our wider capabilities such as Pan-European and US equities which have strong five year track records.

Healthy sales have been sourced from investors in the Americas, with Canada continuing as a major contributor, as well as EMEA and Asia. We continue to pursue our strategy of focusing on key strategic distributors and sales in the UK are beginning to gain traction, reflected in improving pooled fund sales.

Our property business continues to generate interest from investors and we are building awareness of our global capability. This is reflected in our recent appointment by two separate clients to manage portfolios totalling £0.8 billion, with effect from April 2011. The alternative investment services business is still going through the natural transition that we expected following the acquisition of the RBS business last year. The flagship funds have continued to produce healthy returns this year which supports our efforts to broaden the investor and consultant base and for investment in these products.

Outlook

We have enjoyed a strong start to 2011 and we are committed to building on this position. Global market conditions are likely to remain somewhat volatile but we believe our investment philosophy and process are well suited to such conditions. We will continue to manage the business with the aim of generating sustainable growth in profits and financial strength.

Roger C Cornick

Chairman

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

2 May 2011

Condensed consolidated income statement

For the six months to 31 March 2011

Condensed consolidated statement of comprehensive income

For the six months to 31 March 2011

Condensed consolidated balance sheet

31 March 2011

Condensed consolidated statement of changes in equity

Condensed consolidated cash flow statement

For the six months to 31 March 2011

Notes to the interim condensed consolidated financial statements

For the six months to 31 March 2011

1 General information

The interim results have not been audited but have been reviewed by the auditors. The condensed comparative figures for the financial year to 30 September 2010 are not the company's statutory accounts for that financial year. Those accounts have been reported on by the company's auditors and delivered to the Registrar of Companies. The auditors' 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 2010.

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 2010.

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 alternative investment strategies 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 Exceptional items

No exceptional items were incurred in the current period.

Exceptional costs incurred in 2010 related principally to (i) business acquisitions from Credit Suisse and Royal Bank of Scotland and (ii) provision for expected future lease costs for our former London office.

5 Analysis of cash flows

6 Tax expense

The tax charge for the six month period ended 31 March 2011 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.

7 Dividends and coupon payments

The interim ordinary dividend of 3.8p per share will be paid on 16 June 2011 to qualifying shareholders on the register at 13 May 2011.

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 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 exceptional items and 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 exceptional and certain non-cash items.

9 Intangible assets

10 Other investments

11 Stock of units and shares

12 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.

13 Assets classified as held for sale

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

14 Share capital

270,000 ordinary shares were issued in respect of the conversion of 83 preference shares and the exercise of share options.

15 Interest bearing loans and borrowings

16 Analysis of changes in net debt

17 Retirement benefits

The Group's principal form of pension provision is by way of three defined contribution schemes operated world-wide. 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 2010 by the respective independent actuaries. Contributions to the schemes since 30 September 2010 have been set off against the scheme deficits.

18 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 department 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 pages 34 and 35 of the 2010 annual report, being interest rate risk, liquidity risk, foreign currency risk, client relationships and investment performance risk.

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 2011 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, 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 2011 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

2 May 2011

Assets under Management at 31 March 2011

Overall new business flows for 6 months to 31 March 2011 - by Mandate Type

Overall new business flows for 6 months to 31 March 2011 - by Asset Class

New business flows for 6 months to 31 March 2011 - Equities

New business flows for 6 Months to 31 March 2011 - Fixed Income

New business flows for 6 months to 31 March 2011 - Alternative Investment Strategies