Schroders Interim Results. Data Pack. trusted heritage advanced thinking

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Claribel Turner
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1 Schroders 2009 Interim Results trusted heritage advanced thinking Data Pack

2 1 Contents Page Funds under management 2 FUM by client domicile 4 Currency profile 5 Funds under management diversification 6 Asset Management business flows 9 Focus on high margin products 10 Income and cost metrics for the Group 11 Net Revenue and margins Asset Management 12 Total income 14 Total costs 15 Compensation costs: operating revenues 16 Cost: income ratio 17 Headcount 18 Income statement progression 19 Balance sheet 20 Movement in capital 21 Private Equity interests 22

3 Funds under management billion at June 2009 Funds under management ( bn) Institutional FUM ( bn) Funds under management are 3% ( 3.1bn) above December 2008 levels Net outflows fell to 0.8bn. Q2 net inflows of 1.6bn Dec 08 Jun 09 Dec 08 Jun 09 Intermediary FUM ( bn) Private Banking FUM ( bn) Net inflows of 2.5bn. High levels of inflows in European Corporate Bonds Net new business of 0.1bn Dec 08 Jun 09 Dec 08 Jun 09 2

4 Funds under management billion at end June 2009 bn Institutional Intermediary Private Banking Total 31 December Net flows (0.8) Market movements, foreign exchange impact & other (0.6) June Institutional net outflows Reduced level of outflows at 0.8 billion (H1 2008: 1.1 billion) as Institutional business is successfully repositioned Intermediary net inflows Inflows of 2.5 billion (H1 2008: 0.2 billion outflows) driven by continued low withdrawals coupled with strong inflows from European investors 3

5 FUM by client domicile 69.5 billion funds under management from clients outside the UK UK 43.8bn North America 10.6bn South America 3.1bn Continental Europe 26.7bn Middle East 2.0bn Asia Pacific 27.1bn 5.6bn China joint venture China joint venture funds under management are not reported within Group funds under management 4

6 Currency profile of Funds under management Funds under management billion 20% 7% 43% 5% 11% 14% GBP EUR USD JPY CHF Other 5

7 Total funds under management Funds under management billion By channel 10% By region 12% By product 10% 53% 39% 17% 24% 47% 37% 13% 25% 13% Institutional Private Banking Intermediary UK Asia Pacific Continental Europe Equities Alternatives Private Banking Fixed Income Multi-asset Americas 6

8 Asset Management FUM by channel and product Intermediary FUM 42.4bn 12% Institutional FUM 59.7bn 16% 8% 46% 20% 60% 27% 11% Equities Multi-asset Fixed Income Alternatives 7

9 Asset Management FUM by channel and region Intermediary FUM 42.4bn 7% 26% Institutional FUM 59.7bn 18% 44% 39% 17% 28% UK Asia Pacific 21% Continental Europe Americas 8

10 Asset Management business flows H H bn Inflows Outflows Net Inflows Outflows Net Institutional 7.3 (8.4) (1.1) 6.4 (7.2) (0.8) Intermediary 7.5 (7.7) (0.2) 6.2 (3.7) 2.5 Total Asset Management 14.8 (16.1) (1.3) 12.6 (10.9) 1.7 9

11 Focus on high margin products Asset Management margins up 18% since 2005 Channel diversity H impacted by sales mix changes Strong pipeline base across products Asset Management funds under management and margins FUM ( bn) (bps) H H H H H Institutional (lhs) Intermediary (lhs) margin (rhs) 10

12 Income and cost metrics for the Group Compensation costs : operating revenues Group cost : income ratio H % 65% H % 78% Compensation costs : operating revenues = total Group compensation costs divided by net revenue for the Asset Management and Private Banking business segments Group cost : income ratio = total Group costs divided by total Group income Group cost : net revenue 69% 81% Group cost : net revenue = total Group costs divided by total Group net revenue Return on average capital (pre-tax)* 16% 5% Return on average capital (pre-tax) = total Group profit before tax divided by average capital Return on average capital (post-tax)* Before exceptional items, except for * 12% 2% Return on average capital (post-tax) = total Group profit after tax divided by average capital 11

13 Net revenue margins Asset Management Asset Management net revenue million (H1 2008: million) H FY 2008 H AM net revenue on average AM FUM 65bps 66bps 58bps Of which: performance fees 3bps 4bps 1bps AM costs on average AM FUM 44bps 46bps 45bps AM operating profit on average AM FUM 21bps 20bps 13bps 12

14 Net revenue margin quarterly progression Excluding performance fees Q Q Q Q Q Q Asset Management Private Banking Combined 13

15 Total income m H H H H H Income is the sum of net revenue; net finance income; and share of profit of associates and joint ventures 2005 uses underlying income adjusted for 20.4m gain on discontinued outsourcing project 2008 & 2009 figure quoted before exceptional items 14

16 Total costs m H H H H H Staff Costs Non-staff costs 2008 & 2009 figure quoted before exceptional items 15

17 Compensation costs: operating revenues 52% 48% 47% 45% 48% H H H H H Total Group compensation costs divided by net revenue for the Asset Management and Private Banking business segments 16

18 Cost: income ratio 78% 68% 66% 61% 65% H H H H H Total Group costs divided by total Group income 2005 uses underlying profit adjusted for 20.4m gain on discontinued outsourcing project 17

19 Headcount 2,998 2,782 2,891 2,834 2, Jun Dec Jun Dec Jun 09 18

20 Income statement progression Profit before tax m Q Q Q Q Q Q Asset Management income Asset Management costs (130.5) (136.1) (127.4) (124.6) (103.1) (114.1) Asset Management exceptionals (0.6) (0.8) (1.6) (15.7) (6.7) (5.5) Asset Management profit Private Banking profit before exceptionals Private Banking exceptionals (1.5) - (0.4) Group profit before exceptionals (0.8) (11.1) 0.2 (4.5) Group exceptionals (35.1) (1.1) 8.1 (119.1) (17.2) (10.8) Profit before tax (90.6)

21 Balance sheet m 30 Jun Dec Jun 2009 Intangible assets including goodwill Other non-current assets Current assets 3, , ,257.1 Non-current assets held for sale Assets backing unit-linked liabilities 3, , ,718.7 Total assets 7, , ,021.2 Total equity* 1, , ,496.5 Non-current liabilities Current liabilities 2, , ,256.1 Unit-linked liabilities 3, , ,718.7 Total equity and liabilities 7, , ,021.2 * Includes minority interests (Jun 2009: (0.1)m; Dec 2008: 0.3m; Jun 2008: 2.1m) 20

22 Movement in capital m Opening balance Profit before tax Tax and minority interests Dividends Other transactions with equity holders Net decrease in AFS reserve Net actuarial losses on defined benefit pension schemes Exchange differences Other Closing balance H , (57.4) (74.4) (74.6) 2.4 1,

23 Private Equity interests Schroders plc Investments (Total 53m) Carried interest SVG Capital plc Quoted Investment Trust SVIL Co-investment vehicle GP & LP Interests Permira and other funds Fund of Funds I, II, III, IV Stand-alone portfolio Other 15m 12m 4m 18m 4m Permira Funds I + II Other SV funds US, Canada, Japan, Sapphire Life Sciences, Asia Pacific (Total 15m) 22

24 Forward-looking statements These presentation slides may contain certain forward-looking statements with respect to the financial condition and results of the operations and businesses of Schroders plc These statements and forecasts involve risk and uncertainty because they relate to events and depend upon circumstances that may occur in the future There are a number of factors that could cause actual results or developments to differ materially from those expressed or implied by those forward-looking statements and forecasts. The forward-looking statements and forecasts are based on the Directors current view and information known to them at the date of this presentation. The Directors do not make any undertaking to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Nothing in this presentation should be construed as a profit forecast 23

Schroders Year End Results. Data Pack. trusted heritage advanced thinking

Schroders Year End Results. Data Pack. trusted heritage advanced thinking Schroders 2009 Year End Results trusted heritage advanced thinking Data Pack 1 Contents Page Funds under management (FUM) 2 FUM by client domicile 3 Currency profile of FUM 4 FUM diversification 5 Asset