Aberdeen Smaller Companies High Income Trust PLC Half-Yearly Report For The Six months ended 30th Jun 14 Phil Webster CFA, Senior Investment Manager

1 1 Objective The objective of the Company is to provide a high and growing dividend and capital growth from a portfolio invested principally in the ordinary shares of smaller UK companies and UK fixed income securities. Benchmark FTSE SmallCap Index - excluding Investment Companies (total return) Aberdeen Smaller Companies High Income Trust PLC

2 2 Financial highlights For six months ended 30 Jun 14 A Based on IFRS net asset value excluding dividend adjustment of 1.60p (31 Dec p) Source: Aberdeen Smaller Companies High Income Trust PLC Half Yearly Report, ​​​ 30 Jun 14 ​ 30 Jun 1431 Dec 13% change Equity shareholders’ funds (£’000)50,66952, Net asset value per share229.17p237.99p-3.7 Share price (mid-market)210.00p223.00p-5.8 Discount to net asset value A 7.7%5.7% Net Gearing20%19% Dividend yield3.0%2.8%

3 3 Aberdeen Smaller Companies High Income Trust (ASCHIT) ASCHIT vs. SMXX Index (five years to Sep 14) Source: Aberdeen Asset Management, 31 Dec 13

4 4 Aberdeen Smaller Companies HIT performance Performance to 30 Jun 14 The Trust has lagged the index over the short-term Stock specifics drove the short-term underperformance but post management meetings we remain comfortable holders. In this more volatile period we see a number of attractive valuation opportunities A Source: Aberdeen Asset Management, Markit iBoxx, Morningstar & Factset All figures are for total return and assume re-investment of net dividends excluding transaction costs Past Performance is not a guide to future results ​ Six months nded 30 Jun 14 % 1 year ended 30 Jun 14 % 3 year ended 30 Jun 14 % 5 year ended 30 Jun 14 % Share price Net asset value per share FTSE SmallCap Index (ex IC’s) FTSE All-Share Index Markit iBoxx Sterling Non-Gilts Years Index A

5 5 Dividends and earnings 30 Jun 1430 Jun 13% change Revenue return per share D 3.99p3.66p9.0 Dividends per share E 3.20p3.10p3.2 Dividend cover Revenue reserves F £2,227,000£2,052,000 D Measures the revenue earnings for the year divided by the average cum income net asset value throughout the year. E The figures for dividends per share reflect the years in which they were earned. F The revenue reserve figure does not take account of the fourth interim dividend amounting to £354,000 (2012 – (£343,000) Source: Aberdeen Smaller Companies High Income Trust PLC, Annual Report 31 Dec 13, Interim Report 14 The backdrop for income remains tough with yields near historic lows We are encouraged by the improving revenue return which is testament to the work we have done to improve the underlying revenue generation of the Trust The Board remain committed to a progressive dividend policy

6 6 Asset class segmentation Assets£’000% Equities52, Fixed Income3, Convertibles1, Preference shares3, Total Investments60, Cash Debt(10,000)(19.7) Net Assets50, The allocation has remained broadly flat since the year-end We remain happy with our current asset allocation with equity yield still more attractive than bonds although we are mindful of increased volatility We have kept the equity gearing under control given stretched valuations We would like to increase the fixed income portfolio, however, with interest rates remaining low it remains tough to find attractive opportunities, relative to equity Source: Aberdeen Asset Management – 30 June 14

7 Top twenty holdings Source: Aberdeen Asset Management. The above securities have been included for illustrative purposes only Dec 13 RankTop 20 holdings% of fund 1RPC Group4.9 2Fenner4.5 3Wilmington Group4.3 4Euromoney3.8 5XP Power3.8 6Dechra Pharmaceuticals3.1 7Close Brothers Group3.0 8Elementis3.0 9Chesnara3.0 10Interserve2.9 11TT Electronics2.9 12Berendsen2.9 13Helical Bar2.8 14Bellway2.7 15Morgan Sindall Group2.6 16Bloomsbury Publishing2.6 17Rathbone Brothers2.5 18BBA Aviation2.4 19Hiscox2.2 20Numis Corp2.2 Total62.0 Jun 14 RankTop 20 holdings% of fund 1RPC Group4.1 2Wilmington Group3.9 3XP Power3.5 4Fenner3.4 5Dechra Pharmaceuticals3.3 6Euromoney3.2 7TT Electronics3.2 8Helical Bar3.1 9Berendsen3.1 10Morgan Sindall Group3.0 11Chesnara3.0 12Rathbone Brothers3.0 13Elementis2.9 14Interserve2.9 15Close Brothers Group2.9 16Bellway2.7 17Bloomsbury Publishing2.7 18Devro International2.6 19BBA Aviation2.6 20James Fisher & Sons2.5 Total61.5

8 8 Equity portfolio activity New Entrants:Manx Telecom (IPO) Abcam Additions:HansteenDechra Pharmaceutic als DevroAcal Reductions:Oxford Instruments RPCRestaurant Group Bellway Exited: To 30 Jun 14 Source: Aberdeen Asset Management PLC, Jun 14 After exiting a number of larger companies including Weir Group and Melrose in the previous period the first half has seen no additional exits. We have initiated two new positions; Manx Telecom at IPO and Abcam which we have been following for a number of years but were waiting for a period of weakness to initiate a holding The additions/reductions are more recent to give you an idea of valuation driven movements across the portfolio.

9 9 Fixed Income / Preference Shares portfolio – largest investments ​ Company SectorMarket Value £’000 Total portfolio % NatWest Bank 5.98%Banks Stagecoach 5.75% 2016Transportation Wales & West 6.75% Utility Electricite De France 6% A Sov. Owned/Supp Anglian Water Serv Finance 4.5% 2026Utility Other Fixed Income investments3, As at 30 Jun 14 ​ Company SectorMarket Value £’000 Total portfolio % Aviva 8.75%Financial Services1, General Accident 8.875%Financial Services1, Balfour Beatty Cum Conv 10.75%Construction1, Ecclesiastical Insurance 8.625%Financial Services Preference/Convertible investments4, A stable period with no changes made to either the fixed income or Preference share portfolio We see very few attractive valuation or yield opportunities across the bond market without sacrificing quality. The running yield at c5.5% remains attractive and would be difficult to replace in the current environment Source: Aberdeen Asset Management.

10 At the outset of the year we spoke about stretched valuations and the large number of average IPO that were coming to market. With rising volatility we have seen a pullback especially in highly-valued smaller companies. Earnings growth has been broadly in line with expectations across the Trust’s holdings. There remains some uncertainty that estimates will be met at the full-year. The Trust has performed pretty well through this environment with the majority of the underperformance driven by a handful of names; Fenner, Wilmington and Euromoney We also suffered from not holding any Oil & Gas companies but we have gained from the recent weakness in the oil price so we will not see this drag on the second half performance. There are a number of equities now looking attractively valued. We have been adding to a number of our holdings on weakness where the medium-term growth is intact. It’s going to take time for yields on bonds to move out towards attractive levels. For now we therefore see very little movement in the fixed income portfolio. Summation: Smaller companies have been weaker in the short-term. Our quality bias and balance sheet strength give us comfort to add to our holdings on weakness. Valuations are looking more attractive across the smaller companies market. What does the second half of 2014 hold for smaller companies?

11 Should you wish further information please do not hesitate to contact us: Contact details Private investors: Institutional investors: Kenneth Harper +44 (0) or Andrew Leigh +44 (0)

12 Issued by Aberdeen Asset Managers Limited. Authorised and regulated by the Financial Conduct Authority in the United Kingdom. A member of the Aberdeen Asset Management group of companies. Registered Office: 10 Queen’s Terrace, Aberdeen, AB10 1YG. Viewers should remember that the price of shares and the income from them may go down as well as up and investors may not get back the full amount invested on disposal of the shares. Past performance is no guarantee of future performance. The use of gearing is likely to lead to a volatility in the Net Asset Value (NAV), meaning that a relatively small movement either down or up in value of the trusts total assets, will result in a magnified movement in the same direction, of that NAV. There is no guarantee that the market price of shares in investment trusts will fully reflect their underlying NAV. Investment trusts should be considered only as part of a balanced portfolio, of which they should not form a disproportionate part. Under no circumstances should this information be considered as an offer, or solicitation, to deal in investments. This information does not constitute advice or a personal recommendation for which the duty of suitability would be owed by us, and you should seek your own advice as to the suitability of any investment matter mentioned here. The information contained herein, including any expressions of opinion or forecast, has been obtained from or is based upon, sources believed by us to be reliable but is not guaranteed as to the accuracy or completeness. No part of this presentation may be reproduced in any manner without prior approval. Disclaimer