Schroders
2012 Q1 results
Data Pack
May 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
Group segment – economic view
24
Balance sheet
25
Movement in capital
26
Forward-looking statements
27
Schroders 2012 Q1 Results | 3 May 2012
1
Assets under management (AUM)
£199.6 billion at 31 March 2012
Asset Management
£bn
Institutional
Intermediary
Private Banking
Total
108.4
62.9
16.0
187.3
Net flows
1.4
0.3
(0.1)
1.6
Investment returns
6.4
3.8
0.5
10.7
116.2
67.0
16.4
199.6
31 December 2011
31 March 2012
Schroders 2012 Q1 Results | 3 May 2012
2
Regional diversification of AUM
63% of revenues outside UK
UK
£74.8bn
North
America
£21.7bn
Schroders 2012 Q1 Results | 3 May 2012
South
America
£6.1bn
Continental
Europe
£40.0bn
Middle
East
£5.1bn
Asia
Pacific
£51.9bn
3
Gross sales
£bn
20
17.2
15.9
14.2
15
13.9
12.0
10
5
0
Q1 2011
Equities
Schroders 2012 Q1 Results | 3 May 2012
Q2 2011
Fixed Income
Q3 2011
Multi-Asset
Q4 2011
Alternatives
Q1 2012
Private Banking
4
Net inflows
£bn
3.1
2.0
1.6
0.0
-1.9
Q1 2011
Q2 2011
Equities
Fixed Income
Schroders 2012 Q1 Results | 3 May 2012
Q3 2011
Multi-Asset
Q4 2011
Alternatives
Q1 2012
Private Banking
5
Currency profile of AUM
Assets under management £199.6 billion
29%
32%
1%
3%
11%
24%
GBP
Schroders 2012 Q1 Results | 3 May 2012
EUR
USD
JPY
CHF
Other
6
Total AUM by channel, region and product
Assets under management £199.6 billion
By channel
By region
8%
14%
By product
8%
58%
37%
45%
19%
11%
34%
26%
23%
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 Q1 Results | 3 May 2012
7
Asset Management AUM by channel and product
Institutional AUM £116.2bn
Intermediary AUM £67.0bn
10%
13%
11%
45%
26%
54%
25%
16%
Multi-asset
Schroders 2012 Q1 Results | 3 May 2012
Alternatives
Equities
Fixed Income
8
Asset Management AUM by channel and region
Institutional AUM £116.2bn
Intermediary AUM £67.0bn
11%
18%
28%
39%
32%
25%
29%
18%
Asia Pacific
Americas
UK
Continental Europe
By client domicile
Schroders 2012 Q1 Results | 3 May 2012
9
Asset Management AUM analysis
Equities AUM £88.5bn
Fixed income AUM £34.6bn
11%
17%
25%
27%
31%
35%
21%
33%
UK
Continental Europe
Asia Pacific
Americas
By client domicile
Schroders 2012 Q1 Results | 3 May 2012
10
Asset Management AUM analysis
Alternatives AUM £22.7bn
Multi-Asset AUM £37.4bn
5%
12%
37%
40%
41%
16%
26%
Property
Commodities
Emerging market debt
Funds of hedge funds
Private equity funds of funds
Schroders 2012 Q1 Results | 3 May 2012
23%
UK multi-asset
Liability-driven investment
Other multi-asset
11
Asset Management business flows
Q1 2011
£bn
Q1 2012
Inflows
Outflows
Net
Inflows
Outflows
Net
Institutional
6.6
(3.8)
2.8
5.1
(3.7)
1.4
Intermediary
9.3
(9.1)
0.2
7.8
(7.5)
0.3
Total Asset Management
15.9
(12.9)
3.0
12.9
(11.2)
1.7
Schroders 2012 Q1 Results | 3 May 2012
12
Institutional
Assets under management: £116.2bn (31 Dec 2011: £108.4bn)
£bn
10
6.6
6.5
6.2
5.1
4.6
2.8
2.8
1.8
1.4
0
-0.6
-3.4
-3.8
-4.7
-3.7
-5.2
-10
Q1 2011
Q2 2011
Gross inflows
Schroders 2012 Q1 Results | 3 May 2012
Q3 2011
Gross outflows
Q4 2011
Q1 2012
Net flows
13
Intermediary
Assets under management: £67.0bn (31 Dec 2011: £62.9bn)
£bn
15
9.3
8.4
7.8
7.1
6.3
5
0.2
0.3
0.2
-1.5
-2.7
-5
-9.1
-7.5
-7.8
-8.2
-9.8
-15
2009
2010
Gross inflows
Schroders 2012 Q1 Results | 3 May 2012
2011
Gross outflows
Net flows
14
Net revenue and margins – Asset Management
Asset Management net revenue £250.8 million (Q1 2011: £261.2 million)
Q1 2011
Q1 2012
Average AM AUM – £bn
182.7
177.2
AM net revenue on average AM AUM
58bps
57bps
7.8
6.0
AM performance fees on average AM AUM
2bps
1bps
AM costs – £m
165.3
164.2
AM costs on average AM AUM
36bps
37bps
95.9
86.6
21bps
20bps
AM performance fees – £m
AM operating profit – £m
AM operating profit on average AM AUM
Schroders 2012 Q1 Results | 3 May 2012
15
Income and cost metrics for the Group
Compensation cost:
operating revenue ratio
2011
2012
46%
47%
Bonus:
pre-bonus operating profit
40%
38%
Cost:
net revenue ratio
66%
68%
Return on average capital
(pre-tax)
23%
20%
Return on average capital
(post-tax)
17%
15%

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
* Adjusted by the Remuneration Committee for allowable and disallowable revenues
Schroders 2012 Q1 Results | 3 May 2012
16
Key performance indicators
Compensation cost: operating revenue ratio
49%
47%
2009
45%
44%
2010
2011
Q1 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 Q1 Results | 3 May 2012
17
Key performance indicators
Cost: net revenue ratio
78%
2009
67%
66%
68%
2010
2011
Q1 2012
Total Group costs divided by net revenue
2009 figures exclude exceptional items
Schroders 2012 Q1 Results | 3 May 2012
18
Total costs
£m
250
200
193.5
194.9
192.6
192.9
180.8
59.1
150
71.5
59.5
62.2
69.3
100
134.4
123.4
130.4
Q2 2011
Q3 2011
50
133.4
111.5
0
Q1 2011
Staff costs
Schroders 2012 Q1 Results | 3 May 2012
Q4 2011
Q1 2012
Non-staff costs
19
Headcount
2,793
Q1 2011
Schroders 2012 Q1 Results | 3 May 2012
2,901
2,902
2,926
Q3 2011
Q4 2011
Q1 2012
2,844
Q2 2011
20
Income statement progression
Asset Management profit before tax
£m
Q1 2011
Q2 2011
Q3 2011
Q4 2011
Q1 2012
Institutional
108.5
117.2
109.4
118.4
120.0
Intermediary
152.7
156.2
147.4
131.7
130.8
Net revenue
261.2
273.4
256.8
250.1
250.8
(165.3)
(169.9)
(166.6)
(156.7)
(164.2)
1.6
2.6
2.5
–
2.0
Net finance (charge)/income
(0.2)
(0.3)
–
0.2
–
Asset Management profit
97.3
105.8
92.7
93.6
88.6
Costs
JVs and associates
Schroders 2012 Q1 Results | 3 May 2012
21
Income statement progression
Private Banking profit before tax
£m
Q1 2011
Q2 2011
Q3 2011
Q4 2011
Q1 2012
30.1
27.9
29.3
27.0
27.1
(23.4)
(22.3)
(22.6)
(22.2)
(20.7)
6.7
5.6
6.7
4.8
6.4
Net revenue
Costs
Private Banking profit
Schroders 2012 Q1 Results | 3 May 2012
22
Income statement progression
Group segment (loss)/profit before tax
£m
Q1 2011
Q2 2011
Q3 2011
Q4 2011
Q1 2012
Net revenue
(0.7)
1.3
4.3
(8.1)
4.8
Costs
(3.4)
(4.1)
(3.4)
(1.9)
(8.0)
JVs and associates*
(0.6)
(1.2)
(1.8)
(1.1)
(0.1)
Net finance income
4.5
4.5
3.1
2.7
3.8
Group (loss)/profit
(0.2)
0.5
2.2
(8.4)
0.5
*Schroder Ventures Investments Limited only
Schroders 2012 Q1 Results | 3 May 2012
23
Group segment
Economic view
£m
Q1 2011
Q1 2012
1.0
0.4
-
0.3
Property and other provisions
5.1
(0.1)
Variable items
6.1
0.6
Costs
(8.5)
(8.3)
Total Governance, management and other
(2.4)
(7.7)
2.2
8.2
(0.2)
0.5
Deferred remuneration mark to market and FX
Pension fund credits
Investment capital
Total Group segment
24
Balance sheet
£m
31 Dec 2011
31 Mar 2012
Intangible assets including goodwill
144.1
142.4
Other non-current assets
774.2
757.9
Current assets
4,321.3
4,630.8
Assets backing unit-linked liabilities
8,645.2
9,218.3
Total assets
13,884.8
14,749.4
510.3
469.1
Current liabilities
2,827.7
3,101.0
Unit-linked liabilities
8,645.2
9,218.3
Total liabilities
11,983.2
12,788.4
Net assets
1,901.6
1,961.0
Total equity*
1,901.6
1,961.0
Non-current liabilities
*Includes non-controlling interests Mar 2012: £0.2m (Dec 2011: £0.2m)
Schroders 2012 Q1 Results | 3 May 2012
25
Movement in capital
£m
2011
Opening balance
1,901.6
Profit before tax
95.5
Net fair value movement arising from AFS financial assets
6.1
Exchange differences on translation of foreign operations after hedging
(7.4)
Tax
(12.2)
Other transactions with owners
(22.6)
Closing balance
Schroders 2012 Q1 Results | 3 May 2012
1,961.0
26
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 Q1 Results | 3 May 2012
27