DOWNING CLASSIC VCT PLC Statistics

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PENNINE AIM VCT 6 PLC
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IMPORTANT NOTICE

• This presentation has been designed for
  independent financial advisers, authorised and
  regulated by the Financial Services Authority and
  has not been approved for any other purpose. If
  this document is forwarded to any other person,
  you must ensure that you have taken
  responsibility for it under the financial
  promotion rules. The information contained herein
  is in summary form and has been set out for
  illustrative purposes only and no reliance should
  be placed on it. Investment decisions should be
  based only on the Prospectus. Downing Corporate
  Finance Limited, 69 Eccleston Square, London SW1V
  1PJ (tel [phone]), is authorised and
  regulated by the Financial Services Authority.

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RISK FACTORS

• Limited secondary market the secondary market
  for shares in VCTs is limited and as a result VCT
  shares usually trade at a discount to their
  underlying value. To partially address this
  issue, Pennine AIM VCT 6 (the Company)
  provides a "Share Buy Back" facility (at a 10
  discount to the VCT's net asset value subject to
  various regulations).
• Type of company invested in VCTs are designed to
  provide capital for small companies and the
  Company will invest in several companies. As
  such, there is a risk that any of these companies
  may not perform as hoped and in some circumstance
  may fail completely.
• VCT tax breaks the generous tax breaks are one
  of the major attractions of VCTs. If the
  investment is not held for three years or if the
  VCT does not comply with all the VCT regulations,
  the initial tax breaks can be withdrawn. In
  addition, the VCT tax reliefs are those which
  currently apply they may change in the future
  and their value to investors will depend on
  personal circumstances.
• Long-term nature of VCT investments generally,
  VCTs are considered to be long-term investments
  (at least seven years). It should be noted,
  however, that Pennine AIM VCT 6 intends to
  provide a partial exit (30p per 1 invested after
  3 years). This exit policy is not guaranteed.
• Charges and performance fees the levels of
  charges for VCTs may be greater than Unit Trusts
  and Open Ended Investment Companies.
• Security of capital as with most investments,
  the value of a VCT depends on the performance of
  the underlying assets. The value of the
  investment and the dividend stream can rise and
  fall. So the investor may get back less than they
  originally invested, even taking into account the
  tax breaks.  

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RATHBONES

• A leading British Independent Private Client
  Investment Manager
• Over 9.5 billion discretionary funds under
  management
• Highly personalised service
• Over 100 million VCT EIS funds under
  management
• Manage 6 AIM VCTs

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INVESTMENT STRATEGY

• Primarily AIM companies at IPO and secondary
  placings
• Broadly spread by sector
• Co-invest with other Pennine VCTs
• Co-invest with Rathbone EIS Portfolios
• Conservative approach for steady performance
• Currently invested gt60 AIM companies

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DEAL FLOW
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PENNINE 5 INVESTMENTS
Non qualifying investments
Unquoted investments
Quoted investments at bid price Unquoted
investments at cost
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PENNINE AIM VCT

• Launched March 1996 and raised 4.6 million
• At 31 Dec 2005 NAV 73.40p
• Dividends 79.10p
• Total Return 152.50p
• Raised a further 6 million in 2003, now a 10
  million fund
• AIM Fund of the Year 2002 Growth Company Awards

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AIM VCT RETURNS TO DATE
N.B AIM Dist Trust investment mandate taken over
by Rathbones w.e.f. Oct 03 Source Allenbridge
VCTs launched 2002/3 tax year or earlier
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INVESTOR
40p
30p (after 3 yrs)
1
Inland Revenue
PENNINE
Qualifying (mainly AIM quoted)
Cash/ A rated bonds
70p
30p
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Pennine 5 NAV _at_ 31st December 2005 96.5p
122
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EXIT STRATEGY

• Tender Offer after 3 years 30 at NAV
• Equivalent to 30p cash left in the VCT per 1
  invested
• Dividend of 3p a year 10 tax free yield
• General buy-back policy at 10 discount to
  NAV(ongoing)
• Shareholders interests a priority

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IHT OPTION

• Innovative IHT option
• Available after three years
• IHT mitigated after further two years
• Investor access to capital and income

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IHT OPTION IN ACTION
177 uplift to inheritance
Assumes no growth or loss on investments and
ignores timing of tax relief on VCT Assumes no
growth or loss on investments, ignores timing of
tax relief on VCT and Pennine 6 VCT IHT option
invoked after three years It has been assumed
full VCT and IHT tax reliefs are claimed at 40
and that investments are above the IHT
threshold This is not an illustration of possible
benefits, merely an indication of the possible
effect of tax relief available through the VCT
and IHT option
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COSTS / COMMISSION

• Initial 5.5
• Investment Management Fees 1.8 p.a.
• Performance Incentive payable 20 of excess over
  1 on Adjusted Tender Price
• Commission paid to IFAs 2.5 0.25

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CONCLUSION

• Track Record Best performing AIM VCT to date
• Experience Manage 6 AIM VCTs and EIS/IHT
  Service
• Dealflow Focus on secondary AIM placings
• Exit Options a) 30p cash back (30p cost v
  64.5p assets 100 gain)
• (after three years) or
• b) In specie transfer IHT relief
  after 2 further years