Schroders plc
2012 Annual Results
Michael Dobson
Chief Executive
7 March 2013
Performance 2012
Investing for long-term growth

Profit before tax £360.0m (2011: £407.3m)

Earnings per share 104.7p (2011: 115.9p)

Dividend increased 10% to 43.0p (2011: 39.0p)

Investment performance: 71% outperforming over three years

Net new business: £9.4bn (2011: £3.2bn)

Assets under management up 13% to £212.0bn (2011: £187.3bn)

Acquisitions: Axis, STW
Confidence in long-term growth
Source: Schroders
Schroders 2012 Annual Results | March 2013
1
Investing for growth
£bn
£m
230
1,400
210
1,200
190
1,000
170
800
150
212
130
197
600
187
110
400
148
90
110
200
70
50
0
2008
2009
Assets under management
2010
2011
Net revenue
2012
Costs
Source: Schroders as at 31 December
Schroders 2012 Annual Results | March 2013
2
Investing for growth
£bn
bps
250
70
65
200
60
55
150
50
100
45
40
50
35
0
30
2008
Equities
2009
Fixed Income
Multi-asset
2010
Alternatives
2011
Private Banking
2012
net revenue margin (Asset Management)
Source: Schroders at 31 December
Schroders 2012 Annual Results | March 2013
3
Investment performance
Strong across asset classes
Institutional AUM outperforming
Asset class
Intermediary AUM outperforming
1 year
3 years
Equities
80%
65%
Fixed Income
74%
Property
Total
1 year
3 years
Equities
77%
72%
54%
Fixed Income
84%
62%
60%
52%
Total
79%
73%
80%
70%
Multi-asset performance is also strong:
Diversified growth
fund return
7.6%
Asset class
Multi-asset performance is also strong:
5.3%
Global dynamic
balanced return
5.2%
3.8%
Source: Schroders. Performance relative to benchmark or peer group to 31 December 2012, excluding sub-advisory. Equites excluding QEP
Schroders 2012 Annual Results | March 2013
4
Diversified by channel, region and asset class
Net new business £9.4bn
£bn
By channel
By region
By asset class
5
6
5
5
4
4
4
3
3
3
2
2
2
1
1
1
0
0
0
-1
Q1
Q2
Institutional
Private Banking
Q3
Q4
Intermediary
-1
-1
-2
-2
Q1
Q2
UK
Asia-Pacific
Q3
Europe
Americas
Q4
Q1
Q2
Equities
Fixed Income
Private Banking
Q3
Q4
Multi-Asset
Alternatives
Source: Schroders. 31 December 2012
Schroders 2012 Annual Results | March 2013
5
Institutional
Assets under management: £123.7bn (2011: £108.4bn)

Net inflows £6.4bn: Asia, Europe and Latin America

Small outflows in UK

Net inflows:
£4.2bn in Equities
£1.2bn in Multi-asset

Strong growth in Sovereign Wealth Funds

Net revenue margins ex. performance fees stable at 40bps (2011: 39 bps)

Average longevity 6.2 years (2011: 5.3 years)
Source: Schroders
Schroders 2012 Annual Results | March 2013
6
Intermediary
Assets under management: £72.0bn (2011: £62.9bn)

Four quarters of net inflows
– £3.3bn for the year overall

Good performance in US sub-advisory

Turnaround in Europe

Significant inflows in Multi-asset
– Positive flows in Equities since Q3

Net revenue margins ex. performance fees 78 bps (2011: 82bps)
– Impact of product mix changes
Source: Schroders
Schroders 2012 Annual Results | March 2013
7
Private Banking
Assets under management: £16.3bn (2011: £16.0bn)

Underlying revenues down 10% to £102.3m (2011: £114.3m)

Underlying costs down 12% to £79.4m (2011: £90.5m)

Underlying profit down 4% to £22.9m (2011: £23.8m)

Provisions:
£7.9m loan losses principally commercial property
£3.2m potential liability relating to regulatory environment in Switzerland

Reported profit £11.8m
Source: Schroders
Schroders 2012 Annual Results | March 2013
8
Private Banking
Priorities

Streamline management structure

Leverage competitive investment performance, strong client proposition

Strengthen business development

Complete repositioning of Swiss business

Achieve 70% cost income ratio
Source: Schroders
Schroders 2012 Annual Results | March 2013
9
Schroders plc
2012 Annual Results
Kevin Parry
Chief Financial Officer
7 March 2013
Key figures
Cost:net revenue ratio (%)
Profit before tax (£m)
406.9
78*
407.3
360.0
67
66
70
2010
2011
2012
200.2*
2009
2010
2011
2012
Earnings per share (pence)
2009
Dividend per share (pence)
111.8
115.9
2010
2011
104.7
31
2012
2009
43
37
39
2010
2011
54.0*
2009
2012
*Excluding exceptional charges of £62.7m (pre-tax) comprising losses on financial assets, redundancy costs, other rationalisation costs and impairments
Schroders 2012 Annual Results | March 2013
11
Profit before tax
£m
Net revenue
18
PBT
407
2011
Schroders 2012 Annual Results | March 2013
12
Net revenue
Decrease of £18m
£m
Group Segment
26
Net revenue
1,153
Private Banking
114
Net revenue
1,135
Net new
business
17
Asset
Management
1,042
Markets and FX
6
Transactional
15
Performance
fees
9
Group revenue
29
Private Banking
94
Asset
Management
1,015
Group Segment
-3
2011
Schroders 2012 Annual Results | March 2013
2012
13
Profit before tax
Decrease of £47m
£m
Total PBT
407
Total PBT
360
Net revenue
18
Private
Banking
24
Asset
Management
Asset
389
Compensation
costs
46
Other costs
17
Net finance
income
3
Joint ventures
and associates
3
Private
Banking
12
Asset
Management
348
Management
389
Group Segment
-6
2011
Schroders 2012 Annual Results | March 2013
Group Segment
0
2012
14
Institutional net revenues
Analysis of £38m increase in fees on 2011
£m
489
454
(ex-performance fees)
£m
24
2011
Management
fees 427
27
2011 NNB
9
2012 NNB
10
427
465
Markets/FX
14
Transactional
5
2012
Management
fees 465
2011
Management fees
Schroders 2012 Annual Results | March 2013
2012
Performance fees
15
Intermediary net revenues
Analysis of £56m decrease in fees on 2011
£m
(ex-performance fees)
£m
588
10
526
4
2011
Management
fees 578
2011 NNB
28
2012 NNB
7
578
Markets/FX
15
522
Transactional
6
2012
Management
fees 522
2011
Management fees
Schroders 2012 Annual Results | March 2013
2012
Performance fees
16
MSCI World Index
Volatility
Index
1,000
950
900
850
800
Dec-11
Jan-12
Feb-12
Mar-12
Apr-12
May-12
Jun-12
Jul-12
Aug-12
Sep-12
Channel
Institutional: Month end
Intermediary: Working days
Schroders 2012 Annual Results | March 2013
Oct-12
Nov-12
Dec-12
2012
Increase
Decrease
8
4
138
228
17
Intermediary net revenues
Analysis of £56m decrease in fees on 2011
£m
(ex-performance fees)
£m
588
10
526
4
2011
Management
fees 578
2011 NNB
28
2012 NNB
7
578
522
Markets/FX
15
Transactional
6
2012
Management
fees 522
2011
Management fees
Schroders 2012 Annual Results | March 2013
2012
Performance fees
18
Institutional and Intermediary net revenues
Margin reduction
£588m
£10m
AM net revenue margins
£526m
Sales channel mix
£4m
£489m
Asset class mix
£24m
£454m
£27m
58bps
2bps
55bps
1bps
£578m
£522m
£465m
£427m
56bps
54bps
2011
2012
Performance fees
Institutional management fees
Intermediary management fees
Schroders 2012 Annual Results | March 2013
2011
Management fee margin
2012
Performance fees
19
Private Banking segment
£m – Net revenue
£m – Costs
114.3
14.4
94.4*
13.8
90.5
82.6
24.9
19.8
35.4
32.9
75.0
68.7
-7.9
2011
Net banking interest income
Transaction fees
Management fees
Doubtful debt charges
2012
55.1
49.7
2,011.00
2,012.00
2011
Other costs
Compensation cost
2012
*In 2012, loan adjustments of £7.9m included as deduction against revenue
Schroders 2012 Annual Results | March 2013
20
Group segment
Investment capital, governance, management and other
Segment disclosure
2011
£m
2012
£m
Net revenue
(3.2)
25.7
Operating expenses
(12.8)
(37.2)
Net finance income
14.8
11.7
Share of losses of associates and JVs
(4.7)
(0.5)
Group segment loss
(5.9)
(0.3)
Other comprehensive income
(17.0)
(9.0)
(22.9)
(9.3)
Governance, management and other
(15.5)
(41.3)
Investment capital returns
(7.4)
32.0
(22.9)
(9.3)
Analysed as:
Schroders 2012 Annual Results | March 2013
21
Group segment
Governance, management and other
2011
2012
£m
£m
Deferred remuneration mark to market and FX
(3.0)
(0.9)
Pension fund credits
16.0
1.2
Provisions
(0.2)
(11.9)
Variable items
12.8
(11.6)
Costs
(28.3)
(29.7)
Total
(15.5)
(41.3)
Economic view
Schroders 2012 Annual Results | March 2013
22
Group segment
Investment capital, governance, management and other
Segment disclosure
2011
£m
2012
£m
Net revenue
(3.2)
25.7
Operating expenses
(12.8)
(37.2)
Net finance income
14.8
11.7
Share of losses of associates and JVs
(4.7)
(0.5)
Group segment loss
(5.9)
(0.3)
Other comprehensive income
(17.0)
(9.0)
(22.9)
(9.3)
Governance, management and other
(15.5)
(41.3)
Investment capital returns
(7.4)
32.0
(22.9)
(9.3)
Analysed as:
Schroders 2012 Annual Results | March 2013
23
Group segment
Investment capital returns
2011
£m
Annualised
return
2012
£m
Actively managed portfolio
of surplus capital
11.1
Seed capital
(6.3)
5.9
Legacy PE, property
and associate
(12.2)
12.1
Total return
(7.4)
32.0
Schroders 2012 Annual Results | March 2013
Annualised
return
14.0
0.5%
1.7%
24
Group segment
Investment capital, governance, management and other
Segment disclosure
2011
£m
2012
£m
Net revenue
(3.2)
25.7
Operating expenses
(12.8)
(37.2)
Net finance income
14.8
11.7
Share of losses of associates and JVs
(4.7)
(0.5)
Group segment loss
(5.9)
(0.3)
Other comprehensive income
(17.0)
(9.0)
(22.9)
(9.3)
Governance, management and other
(15.5)
(41.3)
Investment capital returns
(7.4)
32.0
(22.9)
(9.3)
Analysed as:
Schroders 2012 Annual Results | March 2013
25
Operating expenses
2011
2012
2012
VS
2011
Staff costs
499.8
545.7
45.9
Other costs
247.9
233.5
(14.4)
Depreciation and amortisation
14.1
12.0
(2.1)
Total
761.8
791.2
29.4
Compensation cost:
operating revenue ratio
44%
49%
5%
Cost: net revenue ratio
66%
70%
4%
£m
Schroders 2012 Annual Results | March 2013
26
Tax charge and earnings per share
2011
2012
Change
Profit before tax
£407.3m
£360.0m
£(47.3)m
Tax
£(91.5)m
£(76.8)m
£14.7m
22.5%
21.3%
(1.2)%
£315.8m
£283.2m
£(32.6)m
Basic earnings per share
115.9p
104.7p
(11.2)p
Dividend
39.0p
43.0p
4.0p
Effective tax rate(%)
Profit after tax
Schroders 2012 Annual Results | March 2013
27
Movement in Group capital
£m
Profit
after tax
283
Group
capital
1,902
2011
Schroders 2012 Annual Results | March 2013
Net share
purchases
39
Dividends
104
Share-based
payments
45
FX
28
Other
11
Group
Group
capital
capital
2,070
2,070
2012
28
Group capital allocation
Investment capital breakdown (%)
£m
2011
1%
2012
5%
Asset Management
& Private Banking
operational capital
884
957
Investment capital*
837
926
Other
(intangibles etc.)
Statutory Group capital
*Not included in AUM
Schroders 2012 Annual Results | March 2013
17%
27%
9%
20%
181
187
1,902
2,070
21%
Cash deposits, CDs and commercial paper
Fixed income bonds
Government guaranteed bonds
Long-only EMD absolute return
Seed capital: alpha exposures
Legacy private equity
Other
29
Schroders plc
2012 Annual Results
Michael Dobson
Chief Executive
7 March 2013
Priorities 2013

Leverage our competitive position
–
–
–
–

performance
product range
distribution strengths
global footprint
Improve performance in Private Banking
Source: Schroders
Schroders 2012 Annual Results | March 2013
31
Outlook

Buoyant equity markets

Increasing investor demand

Strong flows in Intermediary

Continuing positive in Institutional

Outflows in Private Banking

Good long-term growth opportunities
Source: Schroders
Schroders 2012 Annual Results | March 2013
32
Forward-Looking Statements
These presentation slides may contain 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. 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.
Schroders 2012 Annual Results | March 2013
27