Edinburgh Worldwide Investment Trust plc Annual Report and Financial Statements 31 October 2012

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1 Edinburgh Worldwide Investment Trust lc Annual Reort and Financial Statements 31 October 2012

2 Contents 1 Comany Summary 2 Year s Summary 3 Five Year Summary 4 Chairman s Statement 6 Directors and Management 8 Managers Overview 10 Managers Portfolio Review 12 Portfolio and Equity Performance 13 Distribution of Total Assets 13 Investment Changes 14 Ten Year Record 15 Directors Reort 24 Statement of Directors Resonsibilities 25 Indeendent Auditor s Reort 26 Income Statement 27 Balance Sheet 28 Reconciliation of Movements in Shareholders Funds 29 Cash Flow Statement 30 Notes to the Financial Statements 42 Notice of Annual General Meeting 45 Further Shareholder Information 46 Cost-effective Ways to Buy and Hold Shares in Edinburgh Worldwide 48 Communicating with Shareholders 22 Directors Remuneration Reort Investment is made in comanies from around the world THIS DOCUMENT IS IMPORTANT AND REQUIRES YOUR IMMEDIATE ATTENTION. If you are in any doubt as to the action you should take you should consult your stockbroker, bank manager, solicitor, accountant or other indeendent financial advisor authorised under the Financial Services and Markets Act 2000 if you are in the United Kingdom, or, if not, from another aroriately authorised financial adviser. If you have sold or otherwise transferred all of your ordinary shares in Edinburgh Worldwide Investment Trust lc, lease forward this document and the accomanying form of roxy as soon as ossible to the urchaser or transferee or to the stockbroker, bank or other agent through whom the sale or transfer was or is being effected for delivery to the urchaser or transferee.

3 COMPANY SUMMARY Comany data at 31 October 2012 Total assets Shareholders funds Market caitalisation 186m* 157m 137m *before deduction of loan. Comany Summary Edinburgh Worldwide s equity ortfolio consists of 42 investments drawn from around the world. Objective and Policy Edinburgh Worldwide s objective is the achievement of long term caital growth by investing in listed comanies throughout the world. The Comany s investment olicy is contained within the Business Review on age 15. Comarative Index The index against which erformance is comared is the MSCI All Countries World Index (in sterling terms). Management Details Baillie Gifford & Co were aointed as Investment Managers and Secretaries to the Comany with effect from 1 November The management contract can be terminated at 3 months notice. Management Fee Baillie Gifford & Co s annual remuneration is 0.8% of the market value of the Comany s shares, calculated and ayable on a quarterly basis. There is also a erformance-related management fee which is calculated and aid annually in arrears, details of which can be found in note 3 on age 31. Caital Structure At the year end the Comany s share caital consisted of 49,004,319 ordinary shares of 5 each which were issued and fully aid. The Comany has been granted authority to buy back a limited number of its own ordinary shares for cancellation or retention as treasury shares as well as to issue shares/sell treasury shares at a remium to net asset value. The Directors are seeking to renew these authorities at the forthcoming Annual General Meeting. Savings Vehicles Edinburgh Worldwide shares can be held through a variety of savings vehicles (see age 46 for details). AIC The Comany is a member of the Association of Investment Comanies. Notes None of the views exressed in this document should be construed as advice to buy or sell a articular investment. Investment trusts are UK ublic listed comanies and as such comly with the requirements of the UK Listing Authority. They are not authorised or regulated by the Financial Services Authority. EDINBURGH WORLDWIDE INVESTMENT TRUST PLC 1

4 YEAR S SUMMARY Year s Summary The following information illustrates how Edinburgh Worldwide has erformed over the year to 31 October Year to 31 October % change Total assets (before deduction of loan) 186.2m 179.6m Loan 29.3m 30.0m Shareholders funds 156.9m 149.6m Net asset value er ordinary share (after deducting borrowings at fair value) Net asset value er ordinary share (after deducting borrowings at ar) Share * MSCI All Countries World Index (in sterling terms) Dividends aid and roosed er ordinary share Revenue earnings er ordinary share (0.4) Ongoing charges 1.02% 1.02% Discount (borrowings at fair value) 12.1% 13.2% Discount (borrowings at ar) 12.4% 13.5% Year to 31 October Year s high and low High Low High Low Share * Net asset value (after deducting borrowings at fair value) Net asset value (after deducting borrowings at ar) Discount (borrowings at fair value) 9.1% 17.0% 4.5% 15.3% Discount (borrowings at ar) 9.6% 17.4% 4.5% 15.3% Year to 31 October Net return er ordinary share Revenue Caital (7.19) Total (4.68) * At mid market. One Year Performance (figures lotted on a monthly basis and rebased to 100 at 31 October 2011) Source: Thomson Reuters Datastream/Baillie Gifford & Co Share NAV (after deducting borrowings at fair value) MSCI All Countries World Index (in sterling terms) Dividends are not reinvested O N D J F M A M J J A S O Past erformance is not a guide to future erformance. 2 ANNUAL REPORT 2012

5 FIVE YEAR SUMMARY Five Year Summary The following charts indicate how Edinburgh Worldwide has erformed relative to its comarative index, the MSCI All Countries World Index (in sterling terms), and the relationshi between share and net asset value over the five year eriod to 31 October Year Total Return Performance (figures rebased to 100 at 31 October 2007) 120 Discount to Net Asset Value (lotted on a monthly basis) 0% (5%) (10%) 70 (15%) CUMULATIVE TO 31 OCTOBER Source: Thomson Reuters Datastream Share total return NAV (ar) total return MSCI All Countries World Index (in sterling terms) total return (20%) Source: Thomson Reuters Datastream/ Baillie Gifford & Co Edinburgh Worldwide discount 2012 YEARS TO 31 OCTOBER The discount is the difference between Edinburgh Worldwide s quoted share and its underlying net asset value (after deducting borrowings at ar). Annual Net Asset Value and Share Price Total Returns 60% 40% 20% 0% (20%) (40%) (60%) YEARS TO 31 OCTOBER Source: Thomson Reuters Datastream NAV (ar) total return Share total return Relative Annual Net Asset Value and Share Price Total Returns (relative to the benchmark total return) 40% 30% 20% 10% 0% (10%) (20%) (30%) YEARS TO 31 OCTOBER Source: Thomson Reuters Datastream NAV (ar) total return relative to MSCI All Countries World Index (in sterling terms) total return Share total return relative to MSCI All Countries World Index (in sterling terms) total return Past erformance is not a guide to future erformance. EDINBURGH WORLDWIDE INVESTMENT TRUST PLC 3

6 TEN YEAR RECORD Caital At 31 October Total assets * Borrowings Shareholders funds Net asset value er share (at ar) Share Discount (at ar) % ,964 (30,626) 74, ,008 (29,255) 79, ,796 (27,604) 83, # 135,861 (27,825) 108, ,098 (26,062) 124, ,633 (24,326) 149, ,856 (21,600) 84, ,312 (23,501) 125, ,716 (24,803) 152, ,621 (29,981) 149, ,209 (29,318) 156, * Total assets comrise total assets less current liabilities, before deduction of bank loans. Discount is the difference between Edinburgh Worldwide s quoted share and its underlying net asset value (deducting borrowings at ar) exressed as a ercentage of net asset value. # The figures rior to 2005 have not been restated for changes in accounting olicies imlemented in Revenue Gearing Ratios Year to 31 October Income Net return on ordinary activities after tax Revenue earnings er ordinary share Dividend aid and roosed er ordinary share (net) Ongoing charges % Ongoing charges (incl. erformance fee) % Actual gearing Potential gearing ^ ,521 1, ,251 1, , ,379 1, , ,827 1, ,280 1, ** ,088 1, ** , ,412 1, ,414 1, Ratio of total oerating costs to average shareholders funds. Ratio of total oerating costs to average shareholders funds including any erformance fee charged (see note 3 on age 31). Total assets (including all debt used for investment uroses) less all cash and fixed interest securities (ex convertibles) divided by shareholders funds. ^ Total assets (including all debt used for investment uroses) divided by shareholders funds. ** Includes secial dividend. Cumulative Performance (taking 2002 as 100) At 31 October Net asset value er share (at ar) Net asset value total return Comarative index Comarative index total return Share Share total return Revenue earnings er ordinary share Dividend aid and roosed er ordinary share (net) Retail index Comound annual returns 5 year 1.0% 1.9% (0.2%) 2.7% 0.9% 2.0% (1.0%) 3.3% 10 year 7.8% 8.8% 5.3% 8.0% 8.6% 9.9% (0.6%) (0.9%) 3.3% The figures rior to 2005 have not been restated for the changes in accounting olicies imlemented in On 1 November 2003 the comarative index was changed from MSCI World Index (in sterling terms) to MSCI All Countries World Index (in sterling terms). Past erformance is not a guide to future erformance. 14 ANNUAL REPORT 2012