<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
INVESTMENT ADVISER Value Line, Inc.
220 East 42nd Street
New York, NY 10017-5891
DISTRIBUTOR Value Line Securities, Inc.
220 East 42nd Street
New York, NY 10017-5891
CUSTODIAN BANK State Street Bank and Trust
Co.
225 Franklin Street
Boston, MA 02110
SHAREHOLDER State Street Bank and Trust
SERVICING AGENT Co.
c/o NFDS
P.O. Box 419729
Kansas City, MO 64141-6729
INDEPENDENT Price Waterhouse LLP
ACCOUNTANTS 1177 Avenue of the Americas
New York, NY 10036
LEGAL COUNSEL Peter D. Lowenstein, Esq.
Two Greenwich Plaza, Suite
100
Greenwich, CT 06830
DIRECTORS Jean Bernhard Buttner
Francis C. Oakley
Marion N. Ruth
Frances T. Newton
OFFICERS Jean Bernhard Buttner
CHAIRMAN AND PRESIDENT
Alan Hoffman
VICE PRESIDENT
David T. Henigson
VICE PRESIDENT and
SECRETARY/TREASURER
Jack M. Houston
ASSISTANT SECRETARY/TREASURER
Stephen La Rosa
ASSISTANT SECRETARY/TREASURER
</TABLE>
THE FINANCIAL STATEMENTS INCLUDED HEREIN HAVE BEEN TAKEN FROM THE
RECORDS OF THE FUND WITHOUT EXAMINATION BY THE INDEPENDENT ACCOUNTANTS
AND, ACCORDINGLY, THEY DO NOT EXPRESS AN OPINION THEREON.
THIS UNAUDITED REPORT IS ISSUED FOR INFORMATION OF SHAREHOLDERS. IT IS
NOT AUTHORIZED FOR DISTRIBUTION TO PROSPECTIVE INVESTORS UNLESS
PRECEDED OR ACCOMPANIED BY A CURRENTLY EFFECTIVE PROSPECTUS OF THE FUND
(OBTAINABLE FROM THE DISTRIBUTOR).
------------------------------------
SEMI-ANNUAL REPORT
------------------------------------
SEPTEMBER 30, 1996
----------------------------------------
VALUE LINE
U.S.
MULTINATIONAL
COMPANY
FUND, INC.
[LOGO]
<PAGE>
VALUE LINE U.S. MULTINATIONAL COMPANY FUND, INC.
To Our Value Line U.S. Multinational
- --------------------------------------------------------------------------------
Dear Shareholder:
I am pleased to report superior results for our Fund, both for the past six
months and for the period since the Fund was launched last November. For the
semi-annual period that ended September 30, 1996, the Multinational Company Fund
returned 18.01%, versus 6.36% for the benchmark unmanaged Standard & Poor's 500
Composite Index. From the Fund's inception on November 17, 1995 through the end
of September, the return has been 25.01%, beating the S&P 500 (with a 16.81%
total return) by a healthy margin.
This impressive early record reflects the investment success of the types of
companies in which the Fund invests, I.E., truly "multinational" companies with
significant operations outside the United States. We have seen that success
clustered around companies in two broadly defined groups.
The first group consists of the global consumer-branded products companies. It
has become a cliche that some American products--like Levi's, Coca-Cola, or
McDonald's--are intensely sought in many foreign markets. It is a fact, however,
that many of these companies generate a very large portion of their revenues in
overseas markets, including Gillette (with 70% of the revenue base outside the
U.S.), Coca-Cola (67%), Johnson & Johnson (49%), and McDonald's (46%). Even the
banking powerhouse Citicorp, with about a quarter of its revenues from non-U.S.
jurisdictions, can be considered in this framework.
The second broad area with which we have had success is the technology sector.
Technological development and innovation has utterly changed our lives both at
home and at work, and the pace of that change has been increasing in recent
years. Generally speaking, the world is years behind the U.S. in the deployment
of technological resources. (For example, personal-computer penetration is about
half the level of the U.S. even in developed markets like Western Europe and
Japan, and much less than that in China or India.) And since it's certain that
the gap between the U.S. and the rest of the world is going to narrow, we
believe that high-tech companies will continue to play an important role in our
multinational company portfolio.
We believe the outlook for our multinational companies is fairly bright, because
many important foreign economies have been sluggish recently, and some are
beginning to show signs of improvement. The pace of economic growth abroad is
important, of course, because in growing economies consumers, including both
individuals and businesses, are more apt to spend at a more elevated level,
generating increased sales growth for the multinationals.
We are grateful for the confidence you have placed in Value Line and the U.S.
Multinational Company Fund, and it is our objective to maintain the Fund as a
high-quality vehicle for sound growth investing.
Sincerely,
[JEAN BERNHARD BUTTNER SIGNATURE]
CHAIRMAN and PRESIDENT
November 11, 1996
- --------------------------------------------------------------------------------
2
<PAGE>
VALUE LINE U.S. MULTINATIONAL COMPANY FUND, INC.
Company Fund Shareholders
- --------------------------------------------------------------------------------
Economic Observations
The economy appears to be entering a period of somewhat slower growth, with this
deceleration in activity likely to persist for at least another several
quarters. Recent figures, for example, show that the employment, retail,
manufacturing, and housing sectors, albeit still showing some improvement, are
not nearly as strong as they had been earlier in the expansion. All of this
suggests that real, inflation-adjusted gross domestic product, which increased
at a modest 2.2% rate in the third quarter, will advance at a similarly
restrained pace over the final three months of this year and through much of
1997.
A slower pace of growth is probably not an unwelcome development at this stage
of the business cycle, since such a deceleration would likely help keep labor,
energy, and raw materials shortages at bay, thus paving the way for continued
moderate levels of inflation. Limited pricing pressures, in turn, would tend to
dissuade the Federal Reserve Board from shifting onto a much tighter monetary
course. Our sense, for now, is that interest rates will remain relatively stable
over the next year.
The danger, though, is that the economy could slow too much, leading, perhaps,
to a recession. For now, we do not see such a reversal evolving over the next
year. We caution, however, that a business contraction would likely bring to an
end the long uptrend in corporate profits, and, most likely, to the bull market
as well.
Performance Data:*
<TABLE>
<CAPTION>
Total
Return
--------------------------
<S> <C>
From November 17, 1995+ to
September 30, 1996....... 25.01%
</TABLE>
+ COMMENCEMENT OF OPERATIONS
* THE PERFORMANCE DATA QUOTED REPRESENT PAST PERFORMANCE AND ARE NO GUARANTEE
OF FUTURE PERFORMANCE.
- --------------------------------------------------------------------------------
3
<PAGE>
VALUE LINE U.S. MULTINATIONAL COMPANY FUND, INC.
Schedule of Investments (unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Value
- --------------------------------------------------------------------------------
<C> <S> <C>
COMMON STOCKS (90.2%)
ADVERTISING (1.4%)
4,600 Omnicom Group, Inc....................................... $ 215,050
AEROSPACE/DEFENSE (1.4%)
4,000 McDonnell Douglas Corp................................... 210,000
BANK (3.4%)
5,000 Bank of Boston Corp...................................... 289,375
2,500 Citicorp................................................. 226,563
-----------
515,938
BEVERAGE-SOFT DRINK (2.4%)
4,000 Coca-Cola Co............................................. 203,500
6,000 PepsiCo, Inc............................................. 169,500
-----------
373,000
CHEMICAL-DIVERSIFIED (1.2%)
4,700 Millipore Corp........................................... 185,650
CHEMICAL-SPECIALTY (1.4%)
5,000 Praxair, Inc............................................. 215,000
COMPUTER & PERIPHERALS (15.2%)
3,800 Cisco Systems, Inc.*..................................... 235,838
2,000 Dell Computer Corp.*..................................... 155,500
10,000 Gateway 2000, Inc........................................ 478,750
10,000 Hewlett-Packard Co....................................... 487,500
4,000 International Business Machines Corp..................... 498,000
3,000 Sun Microsystems, Inc.*.................................. 186,375
4,500 3Com Corp.*.............................................. 270,281
-----------
2,312,244
COMPUTER SOFTWARE & SERVICES (9.1%)
5,000 Barra Inc.*.............................................. 128,750
10,500 Computer Associates International, Inc................... 627,375
1,500 Microsoft Corp.*......................................... 197,813
4,500 Oracle Corp.*............................................ 191,531
5,000 Parametric Technology Corp.*............................. 246,875
-----------
1,392,344
DIVERSIFIED COMPANIES (2.7%)
4,500 Thermo Electron Corp.*................................... 182,250
6,250 Thermo Instrument Systems, Inc.*......................... 228,906
-----------
411,156
</TABLE>
- --------------------------------------------------------------------------------
4
<PAGE>
VALUE LINE U.S. MULTINATIONAL COMPANY FUND, INC.
September 30, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Value
- --------------------------------------------------------------------------------
<C> <S> <C>
DRUG (3.0%)
3,000 Pfizer, Inc.............................................. $ 237,375
3,500 Schering-Plough Corp..................................... 215,250
-----------
452,625
INDUSTRIAL SERVICES (1.1%)
5,000 Manpower, Inc............................................ 166,250
INSURANCE-DIVERSIFIED (2.6%)
4,000 American International Group, Inc........................ 403,000
MACHINERY (3.8%)
5,000 Dover Corp............................................... 238,750
6,000 Gleason Corp............................................. 234,000
7,500 Thermo Fibertek, Inc.*................................... 98,437
-----------
571,187
MACHINERY-CONSTRUCTION & MINING (1.4%)
5,200 Deere & Co............................................... 218,400
MEDICAL SUPPLIES (9.6%)
4,000 Boston Scientific Corp.*................................. 230,000
8,000 Invacare Corp............................................ 224,000
8,000 Johnson & Johnson........................................ 410,000
5,000 Medtronic Inc............................................ 320,625
9,000 Stryker Corp............................................. 271,125
-----------
1,455,750
RAILROAD (4.9%)
21,000 Wisconsin Central Transportation Corp.*.................. 753,375
RESTAURANT (1.9%)
6,000 McDonald's Corp.......................................... 284,250
SEMICONDUCTOR (4.5%)
7,500 Analog Devices Inc.*..................................... 203,438
5,000 Intel Corp............................................... 477,187
-----------
680,625
SEMICONDUCTOR-CAPITAL EQUIPMENT (1.1%)
6,000 Applied Materials, Inc.*................................. 165,750
SHOE (4.6%)
4,000 NIKE, Inc. Class "B"..................................... 486,000
7,500 Wolverine World Wide, Inc................................ 208,125
-----------
694,125
</TABLE>
- --------------------------------------------------------------------------------
5
<PAGE>
VALUE LINE U.S. MULTINATIONAL COMPANY FUND, INC.
Schedule of Investments (unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares or
Principal
Amounts Value
- ---------------------------------------------------------------------------------
<C> <S> <C>
TELECOMMUNICATIONS EQUIPMENT (11.1%)
13,000 Andrew Corp.*......................................... $ 648,375
20,000 Black Box Corp.*...................................... 660,000
2,500 Newbridge Networks Corp.*............................. 159,375
3,200 Tellabs, Inc.*........................................ 226,000
-----------
1,693,750
TOILETRIES/COSMETICS (2.4%)
5,000 Gillette Co........................................... 360,625
-----------
TOTAL COMMON STOCKS (COST $10,752,482)................ 13,730,094
-----------
CONVERTIBLE BONDS & NOTES (3.0%)
</TABLE>
<TABLE>
<C> <S> <C>
OILFIELD SERVICES/EQUIPMENT (2.2%)
$250,000 Pride Petroleum Services, Inc. 6 1/4%, Conv. Sub.
Deb., 2/15/06....................................... 328,750
SEMICONDUCTOR (0.8%)
100,000 Analog Device Inc. 3 1/2%, Conv. Sub. Note, 12/1/00... 120,875
-----------
TOTAL CONVERTIBLE BONDS & NOTES (COST $350,000)....... 449,625
-----------
TOTAL INVESTMENT SECURITIES (93.2%) (COST $11,102,482).............. 14,179,719
-----------
CASH AND OTHER ASSETS LESS LIABILITIES (6.8%)....................... 1,034,753
-----------
TOTAL NET ASSETS (100%)............................................. $15,214,472
-----------
-----------
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER OUTSTANDING SHARE
($15,214,472 DIVIDED BY 1,221,559 SHARES OUTSTANDING).............. $ 12.45
-----------
-----------
</TABLE>
* NON-INCOME PRODUCING
SEE NOTES TO FINANCIAL STATEMENTS.
- --------------------------------------------------------------------------------
6
<PAGE>
VALUE LINE U.S. MULTINATIONAL COMPANY FUND, INC.
Statement of Assets and Liabilities
at September 30, 1996 (unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
Assets:
Investment securities, at value
(Cost-$11,102,482)................... $14,179,719
Cash................................... 992,536
Deferred organization costs (note 3)... 42,941
Due fom Value Line, Inc. (note 6)...... 27,070
Receivable for capital shares sold..... 8,647
Dividends and interest receivable...... 8,203
-----------
Total Assets....................... 15,259,116
-----------
Liabilities:
Accrued expenses (note 6).............. 44,644
-----------
Total Liabilities.................. 44,644
-----------
Net Assets............................. $15,214,472
-----------
-----------
Net Assets consist of:
Capital stock, at $.01 par value
(authorized 50,000,000, outstanding
1,221,559 shares).................... $ 12,216
Additional paid-in capital............. 12,390,187
Undistributed investment income--net... 128,756
Accumulated net realized loss on
investments.......................... (393,924)
Unrealized net appreciation of
investments.......................... 3,077,237
-----------
Net Assets............................. $15,214,472
-----------
-----------
Net Asset Value, Offering and
Redemption Price per Outstanding
Share ($15,214,472 DIVIDED BY
1,221,559 shares outstanding)........ $ 12.45
-----------
-----------
</TABLE>
Statement of Operations
for the six months ended
September 30, 1996 (unaudited)
<TABLE>
<S> <C>
Investment Income:
Interest income......................... $ 50,789
Dividend income......................... 39,260
----------
Total Income........................ 90,049
----------
Expenses:
Advisory fee (note 6)................... 51,217
Custodian fees.......................... 18,994
Auditing and legal fees................. 17,385
Service and distribution plan fee (note
6).................................... 17,072
Accounting and bookkeeping fees......... 16,196
Registration and filing fees............ 9,307
Directors' fees and expenses............ 9,150
Printing................................ 6,405
Amortization of deferred organization
costs (note 3)........................ 5,214
Insurance, dues and other............... 3,880
----------
Total Expenses...................... 154,820
Less: Expense offset................ (5,269)
Less: Expenses waived/assumed by
Adviser (note 6)................... (149,551)
----------
Net Expenses........................ --
----------
Investment Income--Net.................. 90,049
----------
Realized and Unrealized Gain (Loss) on
Investments--Net:
Realized Loss--Net.................. (144,764)
Change in Unrealized Appreciation... 2,346,246
----------
Net Realized Loss and Net Unrealized
Appreciation of Investments........... 2,201,482
----------
Net Increase in Net Assets from
Operations............................ $2,291,531
----------
----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
- --------------------------------------------------------------------------------
7
<PAGE>
VALUE LINE U.S. MULTINATIONAL COMPANY FUND, INC.
Statement of Changes in Net Assets
for the six months ended September 30, 1996 (unaudited),
and for the period from November 17, 1995* to March 31, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Six Months Ended
September 30, 1996 November 17, 1995*
(unaudited) to March 31, 1996
---------------------------------------
<S> <C> <C>
Operations:
Investment income--net................ $ 90,049 $ 78,107
Realized loss on investments--net..... (144,764) (249,160)
Net unrealized appreciation of
investments........................... 2,346,246 730,991
---------------------------------------
Net increase in net assets from
operations............................ 2,291,531 559,938
---------------------------------------
Distributions to Shareholders:
Investment income--net................ -- (39,400)
---------------------------------------
Capital Share Transactions:
Proceeds from sale of shares.......... 577,407 11,787,674
Proceeds from reinvestment of
distributions to shareholders......... -- 39,400
Cost of shares repurchased............ (102,078) --
---------------------------------------
Increase from capital share
transactions.......................... 475,329 11,827,074
---------------------------------------
Total Increase.......................... 2,766,860 12,347,612
Net Assets:
Beginning of period................... 12,447,612 100,000
---------------------------------------
End of period......................... $15,214,472 $12,447,612
---------------------------------------
---------------------------------------
Undistributed investment income--net, at
end of period......................... $ 128,756 $ 38,707
---------------------------------------
---------------------------------------
</TABLE>
* Commencement of Operations
SEE NOTES TO FINANCIAL STATEMENTS.
- --------------------------------------------------------------------------------
8
<PAGE>
VALUE LINE U.S. MULTINATIONAL COMPANY FUND, INC.
Notes to Financial Statements (unaudited)
- --------------------------------------------------------------------------------
1. Organization
Value Line U.S. Multinational Company Fund, Inc. (the "Fund") was formed as a
corporation under the laws of the State of Maryland in June 1995 and is
registered as an open-end management investment company with the Securities and
Exchange Commission. Prior to the commencement of operations on November 17,
1995, the Fund had no significant transactions other than the issuance of an
aggregate of 10,000 shares of common stocks, on September 20, 1995, to Value
Line, Inc. (the "Adviser"), representing the initial capital of the Fund.
2. Significant Accounting Policies
The Fund is a no-load investment company whose investment objective is maximum
total return. The Fund invests primarily in common stock or securities
convertible into common stock of U.S. companies that have significant sales from
international operations.
The following significant accounting policies are in conformity with generally
accepted accounting principles for investment companies. Such policies are
consistently followed by the Fund in the preparation of its financial
statements. Generally accepted accounting principles may require management to
make estimates and assumptions that affect the reported amounts and disclosures
in the financial statements. Actual results may differ from those estimates.
(A) Security Valuation. Securities listed on a securities exchange and
over-the-counter securities traded on the NASDAQ national market are valued at
the closing sales price on the date as of which the net asset value is being
determined. In the absence of closing sales prices for such securities and for
securities traded in the over-the-counter market, the security is valued at the
midpoint between the latest available and representative asked and bid price.
Securities for which market quotations are not readily available or which are
not readily marketable and all other assets of the Fund are valued at fair value
as the Board of Directors may determine in good faith. Short-term instruments
with maturities of 60 days or less at the date of purchase are valued at
amortized cost, which approximates market value.
(B) Repurchase Agreements. In connection with transactions in repurchase
agreements, the Fund's custodian takes possession of the underlying collateral
securities, the value of which exceeds the principal amount of the repurchase
transaction, including accrued interest. To the extent that any repurchase
transaction exceeds one business day, the value of the collateral is
marked-to-market on a daily basis to ensure the adequacy of the collateral. In
the event of default of the obligation to repurchase, the Fund has the right to
liquidate the collateral and apply the proceeds in satisfaction of the
obligation. Under certain circumstances, in the event of default or bankruptcy
by the other party to the agreement, realization and/or retention of the
collateral or proceeds may be subject to legal proceedings.
(C) Federal Income Taxes. It is the Fund's policy to comply with the
requirements of the Internal Revenue Code applicable to regulated investment
companies, including the distribution requirements of the Tax Reform Act of
1986, and to distribute all of its taxable income to its shareholders.
Therefore, no federal income tax or excise tax provision is required.
(D) Security Transactions and Distributions. Security transactions are accounted
for on the date the securities are purchased or sold. Interest income is accrued
as earned. Realized gains and losses on sales of securities are calculated for
financial accounting and federal income tax purposes on the identified cost
basis. Dividend income and distributions to shareholders are recorded on the ex-
dividend date. Distributions are determined in accordance with income tax
regulations, which may differ from generally accepted accounting principles.
(E) Amortization. Discounts on debt securities are amortized to interest income
over the life of the security with a corresponding increase to the security's
cost basis; premiums on debt securities are not amortized.
- --------------------------------------------------------------------------------
9
<PAGE>
VALUE LINE U.S. MULTINATIONAL COMPANY FUND, INC.
Notes to Financial Statements (unaudited)
- --------------------------------------------------------------------------------
3. Organization Cost
Costs of $52,030 incurred in connection with the Fund's organization and initial
registration have been deferred and are being amortized on a straight-line basis
over 60 months, beginning at the commencement of operations of the Fund. In the
event any of the initial shares of the Fund are redeemed by the holder thereof
during the five-year amortization period, the redemption proceeds will be
reduced by a pro rata portion of any unamortized, deferred organizational
expenses in the same porportion as the number of initial shares being redeemed
bears to the number of initial shares outstanding at the time of redemption.
4. Capital Share Transactions
Transactions in capital stock were as follows:
<TABLE>
<CAPTION>
Six Months November 17,
Ended September 1995*
30, 1996 to March 31,
(unaudited) 1996
------------------------------
<S> <C> <C>
Shares sold........... 51,448 1,165,645
Shares issued to
shareholders in
reinvestment of
dividends........... -- 4,029
------------------------------
51,448 1,169,674
Shares repurchased.... 9,563 --
------------------------------
Net increase.......... 41,885 1,169,674
------------------------------
------------------------------
</TABLE>
* COMMENCEMENT OF OPERATIONS.
5. Purchases and Sales of Securities
Purchases and sales of securities, excluding short-term investments, were as
follows:
<TABLE>
<CAPTION>
Six Months Ended
September 30, 1996
(unaudited)
<S> <C>
-------------------
PURCHASES:
Investment Securities.......... $ 4,540,067
-------------------
-------------------
SALES:
Investment Securities.......... $ 2,880,455
-------------------
-------------------
</TABLE>
At September 30, 1996, the aggregate cost of investment securities for federal
income tax purposes was $11,102,482. The aggregate appreciation and depreciation
of investments at September 30, 1996, based on a comparison of investment values
and their costs for federal income tax purposes, was $3,184,421 and $107,184,
respectively, resulting in a net appreciation of $3,077,237.
Capital losses incurred after Octber 31, 1995 within the taxable year, are
deemed to arise on the first business day of the Fund's next taxable year.
Accordingly, the Fund has incurred and elected to defer capital losses of
$249,160.
6. Advisory Fees, Service and Distribution Plan Fees and Transactions With
Affiliates
The Fund has entered into an investment advisory contract with the Adviser
providing for an annual fee, payable monthly, of .75% of the Fund's average
daily net assets. The Adviser provides research, investment programs, and
supervision of the investment portfolio and pays costs of certain administrative
services and office space. The Adviser also provides persons, satisfactory to
the Fund's Board of Directors, to act as officers of the Fund and pays their
salaries and wages. The Fund bears all other costs and expenses in its
organization and operation. If the aggregate expenses of the Fund, other than
taxes, interest, brokerage commissions, and extraordinary expenses, exceed the
expense limitation imposed by any state in which
- --------------------------------------------------------------------------------
10
<PAGE>
VALUE LINE U.S. MULTINATIONAL COMPANY FUND, INC.
- --------------------------------------------------------------------------------
the Fund sells its shares, the advisory fee will be reduced by the amount of
such excess, or the amount of such excess will be refunded.
The Fund has a Service and Distribution Plan (the "Plan"), adopted pursuant to
Rule 12b-1 under the Investment Company Act of 1940, as amended, for the payment
of certain expenses incurred by Value Line Securities, Inc. (the "Distributor"),
a wholly-owned subsidiary of the Adviser in advertising, marketing and
distributing the Fund's shares and for servicing the Fund's shareholders at an
annual rate of 0.25% of the Fund's average daily net assets.
For the six months ended September 30, 1996, advisory fees of $51,217 and Plan
fees of $17,072 were voluntarily waived by the Adviser and the Distributor,
respectively. In addition, the operating expenses for the six months ended
September 30, 1996, amounting to $81,262, were assumed by the Adviser. At
September 30, 1996, the Fund has a receivable from the Adviser of $27,070 for
such expenses assumed.
Certain officers and directors of the Adviser and the Distributor are also
officers and a director of the Fund.
During the six months ended September 30, 1996, the Fund paid brokerage
commissions totaling $2,845 to the Distributor, which clears its transactions
through unaffiliated brokers.
At September 30, 1996, the Adviser and/or affiliated companies owned 1,100,813
shares of the Fund's capital stock, representing 90.1% of the outstanding
shares. In addition, an officer and director of the Fund owned 75,306 shares of
capital stock, representing 6.2% of the outstanding shares.
- --------------------------------------------------------------------------------
11
<PAGE>
VALUE LINE U.S. MULTINATIONAL COMPANY FUND, INC.
Financial Highlights
- --------------------------------------------------------------------------------
Selected data for a share of capital stock outstanding throughout each period:
<TABLE>
<CAPTION>
November 17, 1995
Six Months Ended (commencement of
September 30, 1996 operations) to
(unaudited) March 31, 1996
------------------------------------------
<S> <C> <C>
NET ASSET VALUE, BEGINNING OF
PERIOD............................. $10.55 $10.00
------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment (loss) income... .07(1) .07(1)
Net gains or losses on
securities (both realized and
unrealized).................. 1.83 .52
------------------------------------------
Total from investment
operations..................... 1.90 .59
------------------------------------------
LESS DISTRIBUTIONS:
Dividends from net investment
income...................... -- (.04)
------------------------------------------
NET ASSET VALUE, END OF PERIOD....... $12.45 $10.55
------------------------------------------
------------------------------------------
TOTAL RETURN......................... 18.01%+ 5.93%+
------------------------------------------
------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in
thousands)......................... $ 15,214 $ 12,448
Ratio of operating expenses to
average net assets................. 0%*(1)(2) 0%*(1)(2)
Ratio of net investment income to
average net assets................. 1.31%*(1)(2) 2.13%*(1)(2)
Portfolio turnover rate.............. 23%+ 17%+
Average commission rate paid per
share of common stock investments
purchased/sold..................... $ 0.049(3) $ --
</TABLE>
(1)NET OF CUSTODY CASH CREDITS AND EXPENSE REIMBURSEMENT AND FEES WAIVED BY THE
ADVISER. HAD THESE EXPENSES BEEN FULLY PAID BY THE FUND FOR THE PERIODS ENDED
MARCH 31, 1996 AND SEPTEMBER 30, 1996 (UNAUDITED), INVESTMENT LOSS-NET PER
SHARE WOULD HAVE BEEN $(.001) AND $(.04) RESPECTIVELY, RATIO OF EXPENSES TO
AVERAGE DAILY NET ASSETS WOULD HAVE BEEN 2.45%,* AND 2.29%* RESPECTIVELY; AND
RATIO OF NET INVESTMENT LOSS TO AVERAGE DAILY NET ASSETS WOULD HAVE BEEN
(0.32%.)* AND (0.96%)* RESPECTIVELY. SEE NOTE 6.
(2)DUE TO THE REIMBURSEMENT OF EXPENSES AND WAIVER OF FEES BY THE ADVISERS AND
SHORT PERIOD COVERED BY THIS REPORT, DATA ARE NOT INDICATIVE OF FUTURE
PERIODS.
(3)DISCLOSURE EFFECTIVE FOR FISCAL YEARS BEGINNING ON OR AFTER SEPTEMBER 1,
1995.
+ NOT ANNUALIZED
* ANNUALIZED
SEE NOTES TO FINANCIAL STATEMENTS.
- --------------------------------------------------------------------------------
12
