Schroders
2011 Annual Results
Data Pack
March 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
4
Currency profile of AUM
6
AUM diversification
7
Asset Management business flows
12
Net revenue and margins – Asset Management
15
Income and cost metrics for the Group
16
Key performance indicators
17
Total costs and headcount
19
Income statement progression
21
Balance sheet
24
Movement in capital
25
Group segment net revenue movement
26
Forward-looking statements
27
Schroders 2011 Annual Results | 8 March 2012
1
Assets under management (AUM)
£187.3 billion at 31 December 2011
Asset Management
£bn
Institutional
Intermediary
Private Banking
Total
106.4
74.1
16.2
196.7
6.8
(3.8)
0.2
3.2
Investment returns
(4.8)
(7.4)
(0.4)
(12.6)
31 December 2011
108.4
62.9
16.0
187.3
31 December 2010
Net flows
Schroders 2011 Annual Results | 8 March 2012
2
Regional diversification of AUM
67% of revenues outside UK
UK
£69.8bn
North
America
£20.0bn
South
America
£5.0bn
Schroders 2011 Annual Results | 8 March 2012
Continental
Europe
£37.9bn
Middle
East
£4.7bn
Asia
Pacific
£49.9bn
3
2011: Gross sales
£bn
77.9
80
70
59.3
60
54.1
50
41.6
40
30
20
10
0
2008
Equities
2009
Fixed Income
Schroders 2011 Annual Results | 8 March 2012
2010
Multi-Asset
Alternatives
2011
Private Banking
4
2011: Net inflows
£bn
30
27.1
20
15.0
10
3.2
-9.6
0
-10
2008
Equities
2009
Fixed Income
Schroders 2011 Annual Results | 8 March 2012
2010
Multi-Asset
Alternatives
2011
Private Banking
5
Currency profile of AUM
Assets under management £187.3 billion
28%
31%
2%
3%
11%
25%
GBP
Schroders 2011 Annual Results | 8 March 2012
EUR
USD
JPY
CHF
Other
6
Total AUM by channel, region and product
Assets under management £187.3 billion
By channel
By region
By product
8%
13%
8%
58%
37%
42%
19%
12%
34%
27%
23%
Institutional
UK
Intermediary
Continental Europe*
Private Banking
Asia Pacific
Americas
19%
Equities
Fixed Income
Alternatives
Multi-Asset
Private Banking
* Including Middle East
By client domicile
Schroders 2011 Annual Results | 8 March 2012
7
Asset Management AUM by channel and product
Intermediary AUM £62.9bn
Institutional AUM £108.4bn
12%
14%
11%
43%
51%
26%
26%
17%
Equities
Schroders 2011 Annual Results | 8 March 2012
Fixed Income
Multi-asset
Alternatives
8
Asset Management AUM by channel and region
Intermediary AUM £62.9bn
Institutional AUM £108.4bn
10%
17%
27%
39%
34%
26%
29%
18%
UK
Continental Europe
Asia Pacific
Americas
By client domicile
Schroders 2011 Annual Results | 8 March 2012
9
Asset Management AUM analysis
Equities AUM £79.0bn
Fixed income AUM £34.8bn
10%
17%
26%
27%
31%
37%
20%
32%
UK
Continental Europe
Asia Pacific
Americas
By client domicile
Schroders 2011 Annual Results | 8 March 2012
10
Asset Management AUM analysis
Alternatives AUM £22.7bn
Multi-Asset AUM £34.8bn
5%
12%
37%
37%
40%
20%
26%
Property
Commodities
Emerging market debt
Funds of hedge funds
Private equity funds of funds
Schroders 2011 Annual Results | 8 March 2012
23%
UK multi-asset
Liability-driven investment
Other multi-asset
11
Asset Management business flows
2010
£bn
2011
Inflows
Outflows
Net
Inflows
Outflows
Net
Institutional
31.4
(14.6)
16.8
23.9
(17.1)
6.8
Intermediary
39.2
(31.3)
7.9
31.1
(34.9)
(3.8)
Total Asset Management
70.6
(45.9)
24.7
55.0
(52.0)
3.0
Schroders 2011 Annual Results | 8 March 2012
12
Institutional
Assets under management: £108.4bn (31 Dec 2010: £106.4bn)
£bn
31.4
30
23.9
20
18.6
16.8
10
6.8
4.9
0
-10
-13.7
-14.6
-17.1
-20
2009
2010
Gross inflows
Schroders 2011 Annual Results | 8 March 2012
Gross outflows
2011
Net flows
13
Intermediary
Assets under management: £62.9bn (31 Dec 2010: £74.1bn)
£bn
39.2
40.0
30.0
31.1
29.0
20.0
9.6
10.0
7.9
0.0
-3.8
-10.0
-20.0
-19.4
-30.0
-31.3
-34.9
-40.0
2009
Gross inflows
Schroders 2011 Annual Results | 8 March 2012
2010
Gross outflows
2011
Net flows
14
Net revenue and margins – Asset Management
Asset Management net revenue £1,041.5 million (2010: £996.2 million)
2010
2011
Average AM AUM – £bn
157.1
178.9
AM net revenue on average AM AUM
63bps
58bps
AM performance fees – £m
72.6
36.6
AM performance fees on average AM AUM
4bps
2bps
AM costs – £m
629.8
658.5
AM costs on average AM AUM
40bps
37bps
AM operating profit – £m
366.4
383.0
AM operating profit on average AM AUM
23bps
21bps
Schroders 2011 Annual Results | 8 March 2012
15
Income and cost metrics for the Group
Compensation cost:
operating revenue ratio
2010
2011
45%
44%
Bonus:
pre-bonus operating profit
40%
39%
Cost:
net revenue ratio
67%
66%
Return on average capital
(pre-tax)
24%
22%
Return on average capital
(post-tax)
18%
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
* Adjusted by the Remuneration Committee for allowable and disallowable revenues
Schroders 2011 Annual Results | 8 March 2012
16
Key performance indicators
Compensation cost: operating revenue ratio
49%
2009
45%
44%
2010
2011
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 2011 Annual Results | 8 March 2012
17
Key performance indicators
Cost: net revenue ratio
78%
2009
67%
66%
2010
2011
Total Group costs divided by net revenue
2009 figures exclude exceptional items
Schroders 2011 Annual Results | 8 March 2012
18
Total costs
£m
613.5
210.4
627.4
254.0
615.1
373.4
390.7
2007
2008
2009
Schroders 2011 Annual Results | 8 March 2012
761.8
268.5
262.0
505.5
499.8
2010
2011
224.4
403.1
Staff costs
774.0
Non-staff costs
19
Headcount
2,902
2,891
2,834
2,722
2,609
2007
Schroders 2011 Annual Results | 8 March 2012
2008
2009
2010
2011
20
Income statement progression
Asset Management profit before tax
£m
Q1 2010
Q2 2010
Q3 2010
Q4 2010
Q1 2011
Q2 2011
Q3 2011
Q4 2011
244.8
232.0
232.7
286.7
261.2
273.4
256.8
250.1
(160.1)
(146.5)
(149.6)
(173.6)
(165.3)
(169.9)
(166.6)
(156.7)
JVs and associates
3.3
1.9
2.0
4.0
1.6
2.6
2.5
–
Net finance income/ (charge)
0.9
1.0
0.8
0.7
(0.2)
(0.3)
–
0.2
Asset Management profit
88.9
88.4
85.9
117.8
97.3
105.8
92.7
93.6
Net revenue
Costs
Schroders 2011 Annual Results | 8 March 2012
21
Income statement progression
Private Banking profit before tax
£m
Net revenue
Costs
Private Banking profit
Q1 2010
Q2 2010
Q3 2010
Q4 2010
Q1 2011
Q2 2011
Q3 2011
Q4 2011
24.3
25.6
24.0
29.4
30.1
27.9
29.3
27.0
(23.0)
(20.3)
(21.1)
(28.8)
(23.4)
(22.3)
(22.6)
(22.2)
1.3
5.3
2.9
0.6
6.7
5.6
6.7
4.8
Schroders 2011 Annual Results | 8 March 2012
22
Income statement progression
Group segment profit/(loss) before tax
£m
Q1 2010
Q2 2010
Q3 2010
Q4 2010
Q1 2011
Q2 2011
Q3 2011
Q4 2011
5.0
4.1
23.7
19.0
(0.7)
1.3
4.3
(8.1)
(6.6)
(5.7)
(19.8)
(14.6)
(3.4)
(4.1)
(3.4)
(1.9)
JVs and associates*
3.5
1.6
0.4
(1.2)
(0.6)
(1.2)
(1.8)
(1.1)
Net finance income/ (charge)
1.1
1.3
1.4
2.6
4.5
4.5
3.1
2.7
Group profit/(loss)
3.0
1.3
5.7
5.8
(0.2)
0.5
2.2
(8.4)
Net revenue
Costs
*Schroder Ventures Investments Limited only
Schroders 2011 Annual Results | 8 March 2012
23
Balance sheet
£m
31 Dec 2010
31 Dec 2011
Intangible assets including goodwill
142.5
144.1
Other non-current assets
828.4
774.2
Current assets
4,129.6
4,321.3
Assets backing unit-linked liabilities
8,273.4
8,645.2
Total assets
13,373.9
13,884.8
553.9
510.3
Current liabilities
2,746.9
2,827.7
Unit-linked liabilities
8,273.4
8,645.2
Total liabilities
11,574.2
11,983.2
Net assets
1,799.7
1,901.6
Total equity*
1,799.7
1,901.6
Non-current liabilities
*Includes non-controlling interests Dec 2011: £0.2m (Dec 2010: £3.2m)
Schroders 2011 Annual Results | 8 March 2012
24
Movement in capital
£m
2011
Opening balance
1,799.7
Profit before tax
407.3
Net fair value movement arising from AFS financial assets
(19.8)
Net actuarial gains on defined benefit pension schemes
(0.5)
Exchange differences on translation of foreign operations after hedging
2.1
Tax
(99.3)
Dividends
(104.8)
Other transactions with owners
(83.1)
Closing balance
Schroders 2011 Annual Results | 8 March 2012
1,901.6
25
Group segment
Net revenue movement
£m
Net revenue
2010
52
Actively
managed
portfolio
19
Seed
capital
19
Legacy
property
and PE
3
PE
administration
business
10
Remuneration
mark to
market
6
Other
4
2010
Schroders 2011 Annual Results | 8 March 2012
Net revenue
2011
-3
2011
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 2011 Annual Results | 8 March 2012
27