Schroders
2013 H1 results
Data Pack August 2013
Contents
Page
Assets under management (AUM)
2
Regional diversification of AUM
3
Gross sales and net inflows
Currency profile of AUM
AUM diversification
Asset Management business flows
4-5
6
7-12
13-15
Net revenue and margins – Asset Management
16
Income and cost metrics for the Group
17
Key performance indicators
18-19
Total costs and headcount
20-21
Income statement progression
22-24
Balance sheet
25
Movement in capital
26
Forward-looking statements
27
1
Schroders 2013 H1 Results | 8 August 2013
Assets under management (AUM)
£235.7 billion at 30 June 2013
Asset management
£bn
Institutional
Intermediary
Private banking
Total
123.7
72.0
16.3
212.0
Net flows
2.1
2.7
(0.3)
4.5
STW
7.1
-
-
7.1
Investment returns
6.7
4.5
0.9
12.1
139.6
79.2
16.9
235.7
-
6.9
13.2
20.1
139.6
86.1
30.1
255.8
31 December 2012
Reported 30 June 2013
Cazenove Capital
Pro forma AUM 30 June 2013
2
Schroders 2013 H1 Results | 8 August 2013
Regional diversification of AUM
66% of revenues outside UK
UK
£81.1bn
Continental Europe
£43.6bn
North America
£32.8bn
Asia Pacific
£64.1bn
Middle East
£7.3bn
South America
£6.8bn
3
Schroders 2013 H1 Results | 8 August 2013
Gross sales
£bn
20.0
20.0
18.9
17.0
15.0
13.9
13.4
13.3
Q1 2012
Q2 2012
Q3 2012
Fixed Income
Multi-asset
10.0
5.0
0.0
Equities
4
Schroders 2013 H1 Results | 8 August 2013
Q4 2012
Q1 2013
EMD, Commodities & Property
Q2 2013
Private Banking
Net inflows
£bn
7
5.6
5
3
4.1
2.6
1.6
1.1
Q1 2012
Q2 2012
Q3 2012
Equities
Fixed Income
Multi-asset
(1.1)
1
-1
-3
5
Schroders 2013 H1 Results | 8 August 2013
Q4 2012
Q1 2013
EMD, Commodities & Property
Q2 2013
Private Banking
Currency profile of AUM
Assets under management £235.7 billion
29%
2%
29%
4%
10%
26%
GBP
6
EUR
USD
Schroders 2013 H1 Results | 8 August 2013
JPY
CHF
Other
Total AUM by channel, region and product
Assets under management £235.7 billion
By channel
By region*
7%
By product
7%
17%
34%
21%
45%
34%
59%
27%
8%
22%
Institutional
Intermediary
*By client domicile
**Including Middle East
7
Private Banking
Schroders 2013 H1 Results | 8 August 2013
UK
Continental Europe**
Asia Pacific
Americas
19%
Equities
Fixed Income
EMD, Commodities & Property
Multi-asset
Private Banking
Pro forma AUM by channel, region and product
Assets under management £255.8 billion (including Cazenove Capital)
By channel
By region*
12%
By product
12%
15%
40%
54%
34%
43%
20%
25%
7%
20%
Institutional
Intermediary
*By client domicile
**Including Middle East
8
Private Banking
Schroders 2013 H1 Results | 8 August 2013
UK
Continental Europe**
Asia Pacific
Americas
18%
Equities
Fixed Income
EMD, Commodities & Property
Multi-asset
Private Banking
Asset Management AUM by channel and product
Institutional AUM £139.6bn
Intermediary AUM £79.2bn
6%
10%
20%
25%
45%
52%
22%
20%
Equities
9
Schroders 2013 H1 Results | 8 August 2013
Fixed Income
Multi-asset
EMD, Commodities & Property
Asset Management AUM by channel and product
Pro forma for Cazenove Capital
Institutional AUM £139.6bn
Intermediary AUM £86.1bn
6%
10%
19%
25%
45%
54%
21%
20%
Equities
10 Schroders 2013 H1 Results | 8 August 2013
Fixed Income
Multi-asset
EMD, Commodities & Property
Asset Management AUM by channel and region*
Institutional AUM £139.6bn
Intermediary AUM £79.2bn
13%
21%
26%
35%
32%
27%
29%
17%
UK
*By client domicile
**Including Middle East
11 Schroders 2013 H1 Results | 8 August 2013
Continental Europe**
Asia Pacific
Americas
Asset Management AUM analysis
EMD, Commodities & Property AUM £18.4bn
Multi-asset AUM £50.1bn
6%
13%
30%
46%
53%
28%
19%
5%
Property
Agriculture and commodities
UK multi-asset
Liability-driven investment
Emerging market debt
Private equity
Funds of hedge funds
Other multi-asset
12 Schroders 2013 H1 Results | 8 August 2013
Asset Management business flows
H1 2012
£bn
H1 2013
Inflows
Outflows
Net
Inflows
Outflows
Net
Institutional
9.2
(7.3)
1.9
14.2
(12.1)
2.1
Intermediary
16.0
(15.0)
1.0
22.6
(19.9)
2.7
Total Asset Management
25.2
(22.3)
2.9
36.8
(32.0)
4.8
13 Schroders 2013 H1 Results | 8 August 2013
Institutional
Assets under management: £139.6bn (31 Dec 2012: £123.7bn)
£bn
10
8.0
7.5
6.7
5.1
5
4.6
4.1
2.6
1.9
1.4
2.3
0.5
0
-0.2
-2.7
-5
-3.7
-3.6
-4.4
-5.4
-7.7
-10
Q1 2012
Q2 2012
Gross inflows
14 Schroders 2013 H1 Results | 8 August 2013
Q3 2012
Q4 2012
Gross outflows
Q1 2013
Net flows
Q2 2013
Intermediary
Assets under management: £79.2bn (31 Dec 2012: £72.0bn)
£bn
15
10
12.3
10.3
7.8
7.9
8.2
7.9
5
3.5
0
1.5
0.8
0.7
0.3
-0.8
-5
-10
-7.5
-7.5
-6.4
-7.1
-8.8
-11.1
-15
Q1 2012
Q2 2012
Gross inflows
15 Schroders 2013 H1 Results | 8 August 2013
Q3 2012
Q4 2012
Gross outflows
Q1 2013
Net flows
Q2 2013
Net revenue and margins – Asset Management
Asset Management net revenue £585.7 million (H1 2012: £491.0 million)
H1 2012
H1 2013
Average AM AUM – £bn
179.0
213.2
AM net revenue on average AM AUM
55bps
55bps
AM performance fees – £m
10.1
11.8
AM performance fees on average AM AUM
1bps
1bps
AM costs* – £m
319.0
376.0
AM costs* on average AM AUM
36bps
35bps
AM operating profit* – £m
172.0
209.7
AM operating profit* on average AM AUM
19bps
20bps
* H1 2013 excludes exceptional costs
16 Schroders 2013 H1 Results | 8 August 2013
Income and cost metrics for the Group
FY 2012
H1 2013*
Compensation cost:
operating revenue ratio
49%
48%
Bonus:
pre-bonus operating profit
42%
40%
Cost:
net revenue ratio
70%
66%
Return on average capital
(pre-tax)
18%
21%
Return on average capital
(post-tax)
14%
17%
► Compensation cost: operating revenue
= total Group compensation costs divided by Asset
Management and Private Banking net revenues**
► Bonus: pre-bonus operating profit
= total Group bonus divided by pre-bonus Asset
Management and Private Banking profit before tax
► Cost: net revenue
= total Group costs divided by net revenue
► Return on average capital (pre-tax)
= total Group profit before tax divided by average capital
► Return on average capital (post-tax)
= total Group profit after tax divided by average capital
*H1 2013 excludes exceptional costs
**Adjusted by the Remuneration Committee for allowable and disallowable revenues
17 Schroders 2013 H1 Results | 8 August 2013
Key performance indicators
Compensation cost: Operating revenue ratio
100%
80%
60%
40%
45%
44%
2010
2011
49%
48%
2012
H1 2013*
20%
0%
Total Group compensation costs divided by Asset Management and Private Banking net revenues adjusted by the Remuneration Committee for allowable and disallowable revenues
*H1 2013 excludes exceptional costs
18 Schroders 2013 H1 Results | 8 August 2013
Key performance indicators
Cost: Net revenue ratio
100%
80%
60%
67%
66%
2010
2011
70%
66%
40%
20%
0%
Total Group costs divided by net revenue.
*H1 2013 ratio excludes exceptional costs
19 Schroders 2013 H1 Results | 8 August 2013
2012
H1 2013*
Total costs
£m
250
223.9
200
150
192.9
182.7
59.5
213.5
212.9
60.4
60.1
160.1
153.1
152.8
Q4 2012
Q1 2013
Q2 2013*
191.7
59.7
63.8
62.5
100
133.4
123.0
129.2
Q1 2012
Q2 2012
Q3 2012
50
0
Staff costs
*Q2 2013 excludes exceptional costs
20 Schroders 2013 H1 Results | 8 August 2013
Non-staff costs
Headcount
3,500
3,000
2,902
2,500
3,011
3,140
2,722
2,000
1,500
1,000
500
0
2010
21 Schroders 2013 H1 Results | 8 August 2013
2011
2012
H1 2013
Income statement progression
Asset Management profit before tax
£m
Q1 2012
Q2 2012
Q3 2012
Q4 2012
Q1 2013
Q2 2013*
Institutional
120.0
113.0
117.1
139.2
136.8
138.4
Intermediary
130.8
127.2
128.9
138.6
153.0
157.5
Net revenue
250.8
240.2
246.0
277.8
289.8
295.9
Costs*
(164.2)
(154.8)
(161.2)
(191.2)
(186.6)
(189.4)
2.0
1.3
0.9
0.8
1.7
0.7
–
(0.1)
0.1
0.1
0.3
(0.3)
88.6
86.6
85.8
87.5
105.2
106.9
–
–
–
–
–
(0.3)
88.6
86.6
85.8
87.5
105.2
106.6
JVs and associates
Net finance
(charge)/income
Asset Management profit
Exceptional costs
Asset Management profit
after exceptional items
*Q2 2013 excludes exceptional costs
22 Schroders 2013 H1 Results | 8 August 2013
Income statement progression
Private Banking profit/(loss) before tax
£m
Q1 2012
Q2 2012
Q3 2012
Q4 2012
Q1 2013
Q2 2013
Net revenue
27.1
25.5
24.6
17.2
26.5
27.0
Costs
(20.7)
(21.5)
(20.6)
(19.8)
(21.6)
(21.3)
6.4
4.0
4.0
(2.6)
4.9
5.7
Private Banking
profit/(loss)
23 Schroders 2013 H1 Results | 8 August 2013
Income statement progression
Group segment profit/(loss) before tax
£m
Q1 2012
Q2 2012
Q3 2012
Q4 2012
Q1 2013
Q2 2013
Net revenue
4.8
(4.4)
5.9
19.4
6.7
(0.8)
Costs*
(8.0)
(6.4)
(9.9)
(12.9)
(5.3)
(2.2)
JVs and associates**
(0.1)
(0.4)
0.1
(0.1)
(0.5)
-
Net financial income
3.8
2.5
2.7
2.7
4.0
3.4
Group profit/(loss)
0.5
(8.7)
(1.2)
9.1
4.9
0.4
Exceptional costs
–
–
–
–
–
(6.0)
0.5
(8.7)
(1.2)
9.1
4.9
(5.6)
Group profit/(loss) after
exceptional items
*Q2 2013 excludes exceptional costs
**Schroder Ventures Investments Limited only
24 Schroders 2013 H1 Results | 8 August 2013
Balance sheet
£m
31 December 2012
30 June 2013
Intangible assets including goodwill
142.1
180.9
Other non-current assets
729.0
688.1
Current assets
4,457.7
4,849.3
Assets backing unit-linked liabilities
9,346.3
10,460.3
Total assets
14,675.1
16,178.6
443.3
377.1
Current liabilities
2,815.6
3,156.2
Unit-linked liabilities
9,346.3
10,460.3
Total liabilities
12,605.2
13,993.6
Net assets
2,069.9
2,185.0
Total equity*
2,069.9
2,185.0
Non-current liabilities
*Includes non-controlling interests Jun 2013: £0.4m (Dec 2012: £0.5m)
25 Schroders 2013 H1 Results | 8 August 2013
Movement in capital
£m
Opening balance
2013
2,069.9
Profit before tax
228.0
Exceptional costs
(6.3)
Net fair value movement arising from AFS financial assets
(2.7)
Exchange differences on translation of foreign operations after hedging
27.2
Tax
(43.3)
Net share purchases
(35.6)
Share-based payments
24.2
Dividends
(80.4)
Actuarial gain on defined benefit pension scheme
5.1
Other
(1.1)
Closing balance
26 Schroders 2013 H1 Results | 8 August 2013
2,185.0
Forward-looking statements
These presentation slides may contain forward-looking statements with respect to the financial condition, results of operations, strategy and businesses of the
Schroders Group.
Such statements and forecasts involve risk and uncertainty because they are based on current expectations and assumptions but they relate to events and depend
upon circumstances in the future and you should not place undue reliance on them. Without limitation, any statement preceded by or followed by or that include
the words ‘targets’, ‘plans’, ‘believes’, ‘expects’, ‘aims’ or ‘anticipates’ or the negative of these terms and other similar terms are intended to identify such forwardlooking statements.
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. 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 forecast, estimate or projection of future financial performance.
27 Schroders 2013 H1 Results | 8 August 2013