FORESIGHT 4 VCT PLC - Foresight Group

Dividend Policy
The dividend policy of the Company is to maximise the level of dividends generated either from income
or from capital profits realised on the sale of investments while at the same time providing a maintainable
annual dividend stream. The stated annual dividend objective for the Ordinary Shares fund is 5p and the
Company has paid an average of 5p per Ordinary Share over the last 5 years.
On 9 November 2011, the Company announced an interim dividend of 5p per Ordinary Share for the
current financial period. This dividend will be payable to holders of Ordinary Shares on the record date
on 10 February 2012 (which, should the Foresight Clearwater Scheme become effective, will include
Foresight Clearwater Shareholders issued with Ordinary Shares as part of the Foresight Clearwater
Scheme). This dividend will be paid on 24 February 2012.
With regard to the proposed C Shares fund, it is hoped that a payment of annual dividends can be
initiated once the portfolios acquired from Foresight 5 and Acuity 3 have been given the time to develop
under the management of Foresight and as a result of the increased size and reduced running costs of
this fund. Payment of dividends in respect of C Shares will be subject to the performance of the
underlying investments of the C Shares fund.
Dividend payments in respect of both Ordinary Shares and C Shares will also be subject to available
cash, portfolio requirements, distributable reserves and applicable law at the relevant time. Shareholders
will be kept informed of the progress of both the Ordinary Shares fund and the C Shares fund through
interim management statements and accounts published by the Company.
Share Issues and Buybacks
The Company proposes to renew its authorities to issue both Ordinary Shares and C Shares (having
disapplied pre-emption rights) following the merger up to 10% of its enlarged Ordinary Share capital and
10% of its C Share capital, respectively for the purposes of the dividend reinvestment scheme and small
top up offers.
The Board intends to continue to consider repurchasing Ordinary Shares when they become available in
order to provide a degree of liquidity for the sellers of the Company’s shares. In pursuing this policy,
Ordinary Shares will be bought back in the market at a discount to NAV and the Board will ensure that
they are acting prudently and in the interests of remaining Shareholders. Buybacks are entirely at the
Board’s discretion and will be subject to the Company having the relevant shareholder authorities,
distributable reserves and funds available for such a purchase. Buybacks will also be subject to the
Listing Rules and any applicable law at the relevant time.
The Board intends to apply the above policy to the C Shares.
Investment Portfolios
The table below sets out the latest published NAVs of the Companies (as adjusted for Foresight
Clearwater), together with the number of venture capital investments within the portfolios of each
company and the respective carrying value of these investments. The Acuity 3 and Foresight 5 venture
capital investment portfolios have common investments, (save for one investment in the Acuity 3
portfolio which has a carrying value of £200,000 and two investments in the Foresight 5 portfolio which
have a carrying value of £1.3 million).
Unaudited net
assets*
(£)
NAV per
share*
(p)
Number of
venture
capital
investments*
Carrying
value of the
venture
capital
investments*
(£)
Company 40,006,672 109.6 29 33,077,149
Foresight 5 Ordinary Share 10,380,469 17.4 11 10,205,149
Foresight 5 C Shares 471,721 60.7 1 34,935
Acuity 3 7,801,500 22.7 10 7,658,214
Foresight Clearwater 1,048,333 94.5** –*** –***
* taken from the unaudited half-yearly reports for the Company and Foresight Clearwater and the unaudited management accounts of Foresight 5
and Acuity 3, in each case to 30 September 2011 (which for Foresight 5 and Acuity 3 include provisions for their respective share of the costs of
the Schemes)
** before taking into account the contribution to be made to Foresight Clearwater by Foresight and Foresight GP (the manager and administrator
respectively) so as to bring the NAV up to 94.5p per share
*** the assets of Foresight Clearwater are held in cash. Foresight Clearwater has not made any venture capital investments to date, pending a
successful outcome of the merger
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