Schroders
2012 Q3 results
Data Pack
November 2012 | For professional investors only. This material is not suitable for retail clients
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
7-11
12-14
Net revenue and margins – Asset Management
15
Income and cost metrics for the Group
16
Total costs and headcount
17-18
Income statement progression
19-21
Statement of financial position (balance sheet)
22
Movement in capital
23
Forward-looking statements
24
Schroders 2012 Q3 Results | November 2012
1
Assets under management (AUM)
£202.8 billion at 30 September 2012
Asset Management
£bn
Institutional
Intermediary
Private Banking
Total
108.4
62.9
16.0
187.3
Net flows
3.8
1.8
(0.3)
5.3
Investment returns
6.2
3.6
0.4
10.2
118.4
68.3
16.1
202.8
31 December 2011
30 September 2012
Schroders 2012 Q3 Results | November 2012
2
Regional diversification of AUM
65% of revenues outside UK
UK
£75.2bn
North
America
£23.2bn
Schroders 2012 Q3 Results | November 2012
South
America
£6.1bn
Continental
Europe
£38.8bn
Middle
East
£5.6bn
Asia
Pacific
£53.9bn
3
Gross sales
£bn
20
15
14.2
0.9
1.0
12.0
1.2
1.0
2.0
10
13.9
1.0
1.7
13.4
1.1
0.7
13.3
0.8
1.2
2.3
3.7
2.8
2.3
3.7
3.8
3.6
3.2
3.4
5
6.6
4.3
5.1
4.3
5.1
Q4 2011
Q1 2012
Q2 2012
Q3 2012
0
Q3 2011
Equities
Fixed Income
Schroders 2012 Q3 Results | November 2012
Multi-asset
Alternatives
Private Banking
4
Net inflows
£bn
3.0
2.0
2.6
1.1
1.6
0.2
0.0
1.8
0.4
1.5
1.0
2.2
0.3
1.3
0.2
0.0
-0.8
0.1
0.4
0.1
-0.4
-0.2
-0.3
-0.1
-0.5
-0.8
-0.1
-0.1
-2.0
0.6
-0.1
-1.5
-1.0
0.0
-0.8
-1.9
-3.0
Q3 2011
Equities
Q4 2011
Fixed Income
Schroders 2012 Q3 Results | November 2012
Q1 2012
Multi-asset
Q2 2012
Alternatives
Q3 2012
Private Banking
5
Currency profile of AUM
Assets under management £202.8 billion
30%
31%
2%
3%
10%
24%
GBP
Schroders 2012 Q3 Results | November 2012
EUR
USD
JPY
CHF
Other
6
Total AUM by channel, region and product
Assets under management £202.8 billion
By channel
By region
8%
14%
By product
8%
58%
37%
44%
20%
11%
34%
27%
22%
Institutional
UK
Intermediary
Continental Europe*
Private Banking
Asia Pacific
Americas
17%
Equities
Fixed Income
Alternatives
Multi-asset
Private Banking
* Including Middle East
By client domicile
Schroders 2012 Q3 Results | November 2012
7
Asset Management AUM by channel and product
Institutional AUM £118.4bn
Intermediary AUM £68.3bn
10%
13%
13%
45%
26%
53%
24%
16%
Multi-asset
Schroders 2012 Q3 Results | November 2012
Alternatives
Equities
Fixed Income
8
Asset Management AUM by channel and region
Institutional AUM £118.4bn
Intermediary AUM £68.3bn
13%
17%
27%
39%
32%
27%
28%
17%
Asia Pacific
Americas
UK
Continental Europe
By client domicile
Schroders 2012 Q3 Results | November 2012
9
Asset Management AUM analysis
Equities AUM £89.3bn
Fixed income AUM £35.5bn
12%
16%
25%
27%
31%
36%
21%
32%
UK
Continental Europe
Asia Pacific
Americas
By client domicile
Schroders 2012 Q3 Results | November 2012
10
Asset Management AUM analysis
Alternatives AUM £21.8bn
Multi-asset AUM £40.1bn
5%
11%
28%
44%
13%
49%
27%
Property
Commodities
Emerging market debt
Funds of hedge funds
Private equity funds of funds
Schroders 2012 Q3 Results | November 2012
23%
UK & US multi-asset
Liability-driven investment
Other multi-asset
11
Asset Management business flows
Q2 2012
£bn
Q3 2012
Inflows
Outflows
Net
Inflows
Outflows
Net
Institutional
4.1
(3.6)
0.5
4.6
(2.7)
1.9
Intermediary
8.2
(7.5)
0.7
7.9
(7.1)
0.8
Total Asset Management
12.3
(11.1)
1.2
12.5
(9.8)
2.7
Schroders 2012 Q3 Results | November 2012
12
Institutional
Assets under management: £118.4bn (30 June 2012: £113.3bn)
£bn
10
6.2
5.1
4.6
4.6
4.1
2.8
1.9
1.4
0.5
0
-0.6
-2.7
-3.4
-3.7
-3.6
Q1 2012
Q2 2012
-5.2
-10
Q3 2011
Q4 2011
Gross inflows
Schroders 2012 Q3 Results | November 2012
Gross outflows
Q3 2012
Net flows
13
Intermediary
Assets under management: £68.3bn (30 June 2012: £65.3bn)
£bn
15
8.2
7.8
7.1
7.9
6.3
5
-1.5
-2.7
-5
0.8
0.7
0.3
-7.8
-7.5
-7.5
-7.1
Q4 2011
Q1 2012
Q2 2012
Q3 2012
-9.8
-15
Q3 2011
Gross inflows
Schroders 2012 Q3 Results | November 2012
Gross outflows
Net flows
14
Net revenue and margins – Asset Management
Asset Management net revenue £246.0 million (Q3 2011: £256.8 million)
Q3 2011
Q3 2012
AM net revenue - £m
256.8
246.0
Average AM AUM – £bn
177.4
182.7
AM net revenue on average AM AUM
58bps
54bps
AM performance fees – £m
14.3
1.9
AM performance fees on average AM AUM
4bps
1bps
AM costs – £m
166.6
161.2
AM costs on average AM AUM
38bps
35bps
90.2
84.8
20bps
19bps
AM operating profit – £m
AM operating profit on average AM AUM
Schroders 2012 Q3 Results | November 2012
15
Income and cost metrics for the Group
Q3
2012
YTD

FY
2011
Q3
2011
YTD
Compensation cost: operating revenue =
total Group compensation costs divided by Asset
Management and Private Banking net revenues*
Compensation cost:
operating revenue ratio
44%
45%
48%

Bonus:
pre-bonus operating profit
39%
41%
38%
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
Cost:
net revenue ratio
66%
66%
69%
Return on average capital
(pre-tax)
22%
23%
18%
Return on average capital
(post-tax)
17%
18%
14%
* Adjusted by the Remuneration Committee for allowable and disallowable revenues
Schroders 2012 Q3 Results | November 2012
16
Total costs
£m
250
200
192.6
180.8
182.7
59.5
62.2
150
192.9
59.7
69.3
191.7
62.5
100
130.4
50
133.4
123.0
129.2
Q1 2012
Q2 2012
Q3 2012
111.5
0
Q3 2011
Q4 2011
Staff costs
Schroders 2012 Q3 Results | November 2012
Non-staff costs
17
Headcount
2,998
2,901
2,902
2,926
Q3 2011
Q4 2011
Q1 2012
Schroders 2012 Q3 Results | November 2012
2,957
Q2 2012
Q3 2012
18
Income statement progression
Asset Management profit before tax
£m
Q3 2011
Q4 2011
Q1 2012
Q2 2012
Q3 2012
Institutional
109.4
118.4
120.0
113.0
117.1
Intermediary
147.4
131.7
130.8
127.2
128.9
Net revenue
256.8
250.1
250.8
240.2
246.0
(166.6)
(156.7)
(164.2)
(154.8)
(161.2)
2.5
–
2.0
1.3
0.9
–
0.2
–
(0.1)
0.1
92.7
93.6
88.6
86.6
85.8
Costs
JVs and associates
Net finance income/(charge)
Asset Management profit
Schroders 2012 Q3 Results | November 2012
19
Income statement progression
Private Banking profit before tax
£m
Q3 2011
Q4 2011
Q1 2012
Q2 2012
Q3 2012
29.3
27.0
27.1
25.5
24.6
(22.6)
(22.2)
(20.7)
(21.5)
(20.6)
6.7
4.8
6.4
4.0
4.0
Net revenue
Costs
Private Banking profit
Schroders 2012 Q3 Results | November 2012
20
Income statement progression
Group segment profit/(loss) before tax
£m
Q3 2011
Q4 2011
Q1 2012
Q2 2012
Q3 2012
4.3
(8.1)
4.8
(4.4)
5.9
Costs
(3.4)
(1.9)
(8.0)
(6.4)
(9.9)
JVs and associates*
(1.8)
(1.1)
(0.1)
(0.4)
0.1
Net finance income
3.1
2.7
3.8
2.5
2.7
Group profit/(loss)
2.2
(8.4)
0.5
(8.7)
(1.2)
Net revenue
*Schroder Ventures Investments Limited only
Schroders 2012 Q3 Results | November 2012
21
Statement of financial position
Balance sheet
£m
30 Jun 2012
30 Sep 2012
Intangible assets including goodwill
141.9
139.4
Other non-current assets
711.5
711.6
Current assets
4,462.5
4,685.8
Assets backing unit-linked liabilities
9,193.7
9,435.2
Total assets
14,509.6
14,972.0
439.4
414.6
Current liabilities
2,938.0
3,153.3
Unit-linked liabilities
9,193.7
9,435.2
Total liabilities
12,571.1
13,003.1
Net assets
1,938.5
1,968.9
Total equity*
1,938.5
1,968.9
Non-current liabilities
*Includes non-controlling interests Sep 2012: £0.4m (Jun 2012: £0.4m )
Schroders 2012 Q3 Results | November 2012
22
Movement in capital
£m
2012
Opening balance
1,901.6
Profit before tax
266.0
Net fair value movement arising from AFS financial assets
8.9
Exchange differences on translation of foreign operations after hedging
(22.9)
Tax
(61.3)
Net share buy-backs
(41.4)
Dividends
(104.1)
Other transactions with owners
Closing balance
Schroders 2012 Q3 Results | November 2012
22.1
1,968.9
23
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.
These 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 reliance on them. Without limitation, any
statements preceded or followed by or that include the words ‘targets’, ‘plans’, ‘believes’, ‘expect’, ‘aims’, ‘estimates’ or ‘anticipates’ or
the negative of these terms and other similar terms are intended to identify such forward-looking statements.
There are a number of factors that could cause actual results or developments to differ materially from those expressed or implied by
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.
Schroders 2012 Q3 Results | November 2012
24