Report for the Half Year Ended 30 September 2017 Shires Income PLC Report for the Half Year Ended 30 September 2017 December 2017 Ed Beal, Senior Investment Manager Aberdeen Asset Management

Shires Income PLC Objective The Company aims to provide shareholders with a high level of income, together with the potential for growth of both income and capital from a diversified portfolio substantially invested in UK equities Benchmark The Trust’s benchmark index is the FTSE All-Share Index Total Return Investment Policy The Company invests principally in ordinary shares of UK quoted companies, and in convertible and preference shares with above average yields. The Manager selects stocks via a bottom-up investment process based on a disciplined evaluation of companies through direct visits by the Manager. Gearing is used with the intention of enhancing long-term returns

Performance Performance (total return) (%) 6 months ended 30 Sept 17 1 year ended 30 Sept 17 3 years ended 5 years ended Net asset value +6.7 +14.6 +33.3 +81.1 Share price +12.8 +23.5 +29.8 +66.9 FTSE All-Share Index +3.6 +11.9 +27.8 +61.2 Discrete performance (%) Year ending: 30/9/17 30/9/16 30/9/15 30/9/14 30/9/13 Net asset value* +14.6 +16.7 -0.4 9.5 24.1 Share price +23.5 +7.6 -2.3 9.6 17.3 Benchmark +11.9 +16.8 6.1 18.9 All figures are for total return and assume re-investment of net dividends excluding transaction costs * Total return, NAV to NAV, net income reinvested.. Past performance is not a guide to future results Source: Shires Income PLC Half Yearly Report to 30 Sept 17

Highlights 30 Sept 17 31 Mar 17 % change Equity shareholders’ funds (£’000) 84,805 81,477 +4.1 Net asset value per share 282.71p 272.61p Share price (mid-market) 267.00p 243.25p +9.8 Discount to adjusted NAV 5.56% 10.44% Dividend yield 4.78% 5.20% Past performance is not a guide to future results Source: Shires Income PLC Half Yearly Report to 30 Sept 17

Distribution of assets and liabilities ​ Valuation at ​ 31 Mar​ 17 Movement during the period ​​​ 30 Sept​ 17​ Purchas es Sales Other Gains/ (losses) £’000 % Listed investments Equities 72,118 88.5 4,158 (6,295) - 1,742 71,723 84.6 Convertibles 575 0.7 (20) (2) 553 Other Fixed Interest 25,133 30.9 (28) 2,563 27,668 32.6 ​Total investments 97,826 120.1 (48) 4,303 99,944 117.9 Current assets 2,881 3.5 4,236 5.0 Current liabilities (19,230) (23.6) (19,375) (22.9) Net assets 81,477 100.0 84,805 Net asset value per Ordinary share 271.61p 282.71p Source: Shires Income PLC Half Yearly Report to 30 Sept 17

Sector breakdown * The Company’s Investment in Aberdeen Smaller Companies Investment Trust PLC is classified under “Financials” for FTSE classification purposes Source: Shires Income PLC Half Yearly Report to 30 Sept 17

Equity investment portfolio – twenty largest investments As at 30 Sept 17 ​Company Market Value £’000 Total portfolio % Aberdeen Smaller Companies Income Trust 8,144 8.1 Royal Dutch Shell 3,533 3.5 Unilever 3,261 3.3 Chesnara 3,040 3.0 British American Tobacco 2,953 AstraZeneca 2,899 2.9 HSBC Holdings 2,680 2.7 Prudential 2,653 GlaxoSmithKline 2,620 2.6 BHP Billiton 2,287 2.3 Ten largest investments 34,070 34.1 Vodafone 2,239 2.2 BP 2,082 2.1 Schroders 2,032 2.0 Compass 1,905 1.9 Sage Group 1,774 1.8 BBA Aviation 1,599 1.6 Close Brothers 1,541 1.5 Inmarsat 1,471 Imperial Brands 1,401 1.4 Standard Chartered 1,378 Top twenty equity investments 51,492 51.5 Source: Shires Income PLC Half Yearly Report to 30 Sept 17

Summary and Outlook Brexit has led to significant uncertainty Interest rates have begun to rise in the US and UK Global growth has been improving UK economy has, so far, performed relatively well, but is now slowing Equity markets have been remarkably resilient Macro-economic and geopolitical risks create an environment where the volatility of returns could rise The portfolio is underweight consumer orientated domestic cyclical companies and is invested in companies with sound balance sheets and international expertise This gives them options to respond to both Brexit and interest rates increases High quality companies attracting premium valuations From an income perspective Sterling weakness has been helpful, but that benefit has now worked through Underlying earnings growth is positive, the risk of dividend reductions amongst the biggest UK payers has receded Shires yield remains attractive, in both absolute and relative terms We are o/w o/s exposure Cf the 70% generated by the UK market High Q co’s with an element of defensiveness have led to post Brexit o/p Difficult to comment on valuations as we haven’t yet seen enough of the impact to be able to make meaningful adjustments to earnings expectations.

Institutional investors: Contact details Should you require further information please do not hesitate to contact us: Private investors: 0808 500 0040 Institutional investors: Colin Edge +44207 463 5881

Disclaimer Important information Risk factors you should consider prior to investing: • The value of investments and the income from them can fall and investors may get back less than the amount invested. • Past performance is not a guide to future results. • Investment in the Company may not be appropriate for investors who plan to withdraw their money within 5 years. • The Company may borrow to finance further investment (gearing). The use of gearing is likely to lead to volatility in the Net Asset Value (NAV) meaning that any movement in the value of the company's assets will result in a magnified movement in the NAV. • The Company may accumulate investment positions which represent more than normal trading volumes which may make it difficult to realise investments and may lead to volatility in the market price of the Company's shares. • The Company may charge expenses to capital which may erode the capital value of the investment. • There is no guarantee that the market price of the Company's shares will fully reflect their underlying Net Asset Value. • As with all stock exchange investments the value of the Company's shares purchased will immediately fall by the difference between the buying and selling prices, the bid-offer spread. If trading volumes fall, the bid-offer spread can widen. • Certain trusts may seek to invest in higher yielding securities such as bonds, which are subject to credit risk, market price risk and interest rate risk. Unlike income from a single bond, the level of income from an investment trust is not fixed and may fluctuate. • With funds investing in bonds there is a risk that interest rate fluctuations could affect the capital value of investments. Where long term interest rates rise, the capital value of shares is likely to fall, and vice versa. In addition to the interest rate risk, bond investments are also exposed to credit risk reflecting the ability of the borrower (i.e. bond issuer) to meet its obligations (i.e. pay the interest on a bond and return the capital on the redemption date). The risk of this happening is usually higher with bonds classified as ‘sub-investment grade’. These may produce a higher level of income but at a higher risk than investments in ‘investment grade’ bonds. In turn, this may have an adverse impact on funds that invest in such bonds. • Yields are estimated figures and may fluctuate, there are no guarantees that future dividends will match or exceed historic dividends and certain investors may be subject to further tax on dividends. Other important information: Issued by Aberdeen Asset Managers Limited which is authorised and regulated by the Financial Conduct Authority in the United Kingdom. Registered Office: 10 Queen’s Terrace, Aberdeen AB10 1YG. Registered in Scotland No. 108419. An investment trust should be considered only as part of a balanced portfolio. Under no circumstances should this information be considered as an offer or solicitation to deal in investments. FTSE International Limited (‘FTSE’) © FTSE 2017. ‘FTSE®’ is a trade mark of the London Stock Exchange Group companies and is used by FTSE International Limited under licence. RAFI® is a registered trademark of Research Affiliates, LLC. All rights in the FTSE indices and/or FTSE ratings vest in FTSE and/or its licensors. Neither FTSE nor its licensors accept any liability for any errors or omissions in the FTSE indices and/or FTSE ratings or underlying data. No further distribution of FTSE Data is permitted without FTSE’s express written consent. GB-121217-53939-3