Schroders
2012 H1 results
Data Pack
August 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
Key performance indicators
17-18
Total costs and headcount
19-20
Income statement progression
21-23
Balance sheet
24
Movement in capital
25
Forward-looking statements
26
Schroders 2012 H1 Results | 2 August 2012
1
Assets under management (AUM)
£194.6 billion at 30 June 2012
Asset Management
£bn
Institutional
Intermediary
Private Banking
Total
108.4
62.9
16.0
187.3
Net flows
1.9
1.0
(0.2)
2.7
Investment returns
3.0
1.4
0.2
4.6
113.3
65.3
16.0
194.6
31 December 2011
30 June 2012
Schroders 2012 H1 Results | 2 August 2012
2
Regional diversification of AUM
65% of revenues outside UK
UK
£72.9bn
North
America
£21.9bn
Schroders 2012 H1 Results | 2 August 2012
South
America
£5.8bn
Continental
Europe
£37.6bn
Middle
East
£5.1bn
Asia
Pacific
£51.3bn
3
Gross sales
£bn
20
17.2
15.9
14.2
15
13.9
13.4
12.0
10
5
0
Q1 2011
Equities
Q2 2011
Fixed Income
Schroders 2012 H1 Results | 2 August 2012
Q3 2011
Multi-asset
Q4 2011
Alternatives
Q1 2012
Q2 2012
Private Banking
4
Net inflows
£bn
3.1
2.0
1.6
1.1
0.0
-1.9
Q1 2011
Equities
Q2 2011
Fixed Income
Schroders 2012 H1 Results | 2 August 2012
Q3 2011
Multi-asset
Q4 2011
Alternatives
Q1 2012
Q2 2012
Private Banking
5
Currency profile of AUM
Assets under management £194.6 billion
29%
32%
1%
4%
10%
24%
GBP
Schroders 2012 H1 Results | 2 August 2012
EUR
USD
JPY
CHF
Other
6
Total AUM by channel, region and product
Assets under management £194.6 billion
By channel
By region
8%
14%
By product
8%
58%
38%
44%
19%
11%
34%
26%
22%
Institutional
UK
Intermediary
Continental Europe*
Private Banking
Asia Pacific
Americas
18%
Equities
Fixed Income
Alternatives
Multi-asset
Private Banking
* Including Middle East
By client domicile
Schroders 2012 H1 Results | 2 August 2012
7
Asset Management AUM by channel and product
Institutional AUM £113.3bn
Intermediary AUM £65.3bn
10%
13%
12%
44%
26%
53%
25%
17%
Multi-asset
Schroders 2012 H1 Results | 2 August 2012
Alternatives
Equities
Fixed Income
8
Asset Management AUM by channel and region
Institutional AUM £113.3bn
Intermediary AUM £65.3bn
12%
18%
28%
39%
33%
26%
27%
17%
Asia Pacific
Americas
UK
Continental Europe
By client domicile
Schroders 2012 H1 Results | 2 August 2012
9
Asset Management AUM analysis
Equities AUM £84.8bn
Fixed income AUM £35.1bn
12%
16%
25%
28%
31%
36%
20%
32%
UK
Continental Europe
Asia Pacific
Americas
By client domicile
Schroders 2012 H1 Results | 2 August 2012
10
Asset Management AUM analysis
Alternatives AUM £21.6bn
Multi-asset AUM £37.1bn
5%
12%
36%
40%
42%
15%
26%
Property
Commodities
Emerging market debt
Funds of hedge funds
Private equity funds of funds
Schroders 2012 H1 Results | 2 August 2012
24%
UK multi-asset
Liability-driven investment
Other multi-asset
11
Asset Management business flows
H1 2011
£bn
H1 2012
Inflows
Outflows
Net
Inflows
Outflows
Net
Institutional
13.1
(8.5)
4.6
9.2
(7.3)
1.9
Intermediary
17.7
(17.3)
0.4
16.0
(15.0)
1.0
Total Asset Management
30.8
(25.8)
5.0
25.2
(22.3)
2.9
Schroders 2012 H1 Results | 2 August 2012
12
Institutional
Assets under management: £113.3bn (31 Dec 2011: £108.4bn)
£bn
10
6.6
6.5
6.2
5.1
4.6
2.8
4.1
2.8
1.8
1.4
0.5
0
-0.6
-3.4
-3.8
-4.7
-3.7
-3.6
Q1 2012
Q2 2012
-5.2
-10
Q1 2011
Q2 2011
Gross inflows
Schroders 2012 H1 Results | 2 August 2012
Q3 2011
Q4 2011
Gross outflows
Net flows
13
Intermediary
Assets under management: £65.3bn (31 Dec 2011: £62.9bn)
£bn
15
9.3
8.4
8.2
7.8
7.1
6.3
5
0.2
-1.5
-2.7
-5
-8.2
-9.1
0.7
0.3
0.2
-7.8
-7.5
-7.5
Q4 2011
Q1 2012
Q2 2012
-9.8
-15
Q1 2011
Q2 2011
Gross inflows
Schroders 2012 H1 Results | 2 August 2012
Q3 2011
Gross outflows
Net flows
14
Net revenue and margins – Asset Management
Asset Management net revenue £491.0 million (H1 2011: £534.6 million)
H1 2011
H1 2012
Average AM AUM – £bn
184.6
179.0
AM net revenue on average AM AUM
58bps
55bps
AM performance fees – £m
13.8
10.1
AM performance fees on average AM AUM
1bps
1bps
AM costs – £m
335.2
319.0
AM costs on average AM AUM
36bps
36bps
AM operating profit – £m
199.4
172.0
AM operating profit on average AM AUM
22bps
19bps
Schroders 2012 H1 Results | 2 August 2012
15
Income and cost metrics for the Group

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
69%

Cost: net revenue = total Group costs divided by
net revenue
22%
18%

Return on average capital (pre-tax) = total Group
profit before tax divided by average capital
17%
14%

Return on average capital (post-tax) = total Group
profit after tax divided by average capital
FY
2011
H1
2012
Compensation cost:
operating revenue ratio
44%
47%
Bonus:
pre-bonus operating profit
39%
38%
Cost:
net revenue ratio
66%
Return on average capital
(pre-tax)
Return on average capital
(post-tax)
* Adjusted by the Remuneration Committee for allowable and disallowable revenues
Schroders 2012 H1 Results | 2 August 2012
16
Key performance indicators
Compensation cost: operating revenue ratio
49%
47%
2009
45%
44%
2010
2011
H1 2012
Total Group compensation costs divided by Asset Management and Private Banking net
revenues adjusted by the Remuneration Committee for allowable and disallowable revenues.
2009 figures exclude exceptional items
Schroders 2012 H1 Results | 2 August 2012
17
Key performance indicators
Cost: net revenue ratio
78%
2009
67%
66%
69%
2010
2011
H1 2012
Total Group costs divided by net revenue
2009 figures exclude exceptional items
Schroders 2012 H1 Results | 2 August 2012
18
Total costs
£m
250
200
193.5
194.9
192.6
192.9
182.7
180.8
59.1
71.5
150
59.5
62.2
59.7
69.3
100
134.4
123.4
130.4
Q2 2011
Q3 2011
50
133.4
123.0
Q1 2012
Q2 2012
111.5
0
Q1 2011
Staff costs
Schroders 2012 H1 Results | 2 August 2012
Q4 2011
Non-staff costs
19
Headcount
2,902
2,957
2,722
2,609
2009
Schroders 2012 H1 Results | 2 August 2012
2010
2011
H1-2012
20
Income statement progression
Asset Management profit before tax
£m
Q1
2011
Q2
2011
Q3
2011
Q4
2011
Q1
2012
Q2
2012
Institutional
108.5
117.2
109.4
118.4
120.0
113.0
Intermediary
152.7
156.2
147.4
131.7
130.8
127.2
Net revenue
261.2
273.4
256.8
250.1
250.8
240.2
(165.3)
(169.9)
(166.6)
(156.7)
(164.2)
(154.8)
1.6
2.6
2.5
–
2.0
1.3
Net finance
(charge)/income
(0.2)
(0.3)
–
0.2
–
(0.1)
Asset Management profit
97.3
105.8
92.7
93.6
88.6
86.6
Costs
JVs and associates
Schroders 2012 H1 Results | 2 August 2012
21
Income statement progression
Private Banking profit before tax
£m
Net revenue
Costs
Doubtful debt
charges
Private Banking
profit
Q1 2011
Q2 2011
Q3 2011
Q4 2011
Q1 2012
Q2 2012
30.1
27.9
29.3
27.0
27.1
25.5
(23.4)
(22.3)
(22.6)
(22.2)
(20.7)
(19.7)
–
–
–
–
–
(1.8)
6.7
5.6
6.7
4.8
6.4
4.0
Schroders 2012 H1 Results | 2 August 2012
22
Income statement progression
Group segment (loss)/profit before tax
£m
Q1
2011
Q2
2011
Q3
2011
Q4
2011
Q1
2012
Q2
2012
Net revenue
(0.7)
1.3
4.3
(8.1)
4.8
(4.4)
Costs
(3.4)
(4.1)
(3.4)
(1.9)
(8.0)
(6.4)
JVs and associates*
(0.6)
(1.2)
(1.8)
(1.1)
(0.1)
(0.4)
Net finance income
4.5
4.5
3.1
2.7
3.8
2.5
Group (loss)/profit
(0.2)
0.5
2.2
(8.4)
0.5
(8.7)
*Schroder Ventures Investments Limited only
Schroders 2012 H1 Results | 2 August 2012
23
Balance sheet
£m
31 Dec 2011
30 Jun 2012
Intangible assets including goodwill
144.1
141.9
Other non-current assets
774.2
711.5
Current assets
4,321.3
4,462.5
Assets backing unit-linked liabilities
8,645.2
9,193.7
Total assets
13,884.8
14,509.6
510.3
439.4
Current liabilities
2,827.7
2,938.0
Unit-linked liabilities
8,645.2
9,193.7
Total liabilities
11,983.2
12,571.1
Net assets
1,901.6
1,938.5
Total equity*
1,901.6
1,938.5
Non-current liabilities
*Includes non-controlling interests Jun 2012: £0.4m (Dec 2011: £0.2m)
Schroders 2012 H1 Results | 2 August 2012
24
Movement in capital
£m
2012
Opening balance
1,901.6
Profit before tax
177.4
Net fair value movement arising from AFS financial assets
7.6
Exchange differences on translation of foreign operations after hedging
(8.9)
Tax
(40.3)
Other transactions with owners
(98.9)
Closing balance
Schroders 2012 H1 Results | 2 August 2012
1,938.5
25
Forward-looking statements
These presentation slides may contain forward-looking statements with respect to the financial condition, results of operations 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. Without limitation, any statements preceded 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 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 profit forecast.
Schroders 2012 H1 Results | 2 August 2012
26