trusted heritage
advanced thinking
Schroders
2011 Q3 results
Data Pack
November 2011
Contents
Page
Assets under management (AUM)
2
Regional diversification of AUM
3
Currency profile of AUM
4
AUM diversification
5
Asset Management business flows
10
Income and cost metrics for the Group
14
Net revenue and margins – Asset Management
15
Key performance indicators
16
Income statement progression
22
Balance sheet
25
Group capital allocation
26
Forward-looking statements
27
Data Pack | 2011 Q3 results
1
Assets under management (AUM)
£182.2 billion at 30 September 2011
Asset Management
£bn
Institutional
Intermediary
Private Banking
Total
106.4
74.1
16.2
196.7
7.4
(2.3)
0.0
5.1
Investment returns
(10.0)
(9.0)
(0.6)
(19.6)
30 September 2011
103.8
62.8
15.6
182.2
31 December 2010
Net flows
Data Pack | 2011 Q3 results
2
Regional diversification of AUM
68% of revenues outside UK
UK
£66.9bn
North
America
£19.0bn
Data Pack | 2011 Q3 results
South
America
£4.8bn
Continental
Europe
£39.8bn
Middle
East
£4.4bn
Asia
Pacific
£47.3bn
3
Currency profile of AUM
Assets under management £182.2 billion
28%
31%
2%
4%
11%
24%
GBP
Data Pack | 2011 Q3 results
EUR
USD
JPY
CHF
Other
4
Total AUM by channel, region and product
Assets under management £182.2 billion
By channel
By region
By product
13%
9%
9%
57%
37%
42%
18%
12%
26%
34%
24%
19%
Equities
UK
Fixed Income
Institutional
Continental Europe*
Alternatives
Intermediary
Asia Pacific
Multi-Asset
Private Banking
Americas
Private Banking
By client domicile
Data Pack | 2011 Q3 results
* Including Middle East
5
Asset Management AUM by channel and product
Intermediary AUM £62.8bn
Institutional AUM £103.8bn
12%
15%
11%
43%
50%
25%
27%
17%
Equities
Data Pack | 2011 Q3 results
Fixed Income
Multi-asset
Alternatives
6
Asset Management AUM by channel and region
Intermediary AUM £62.8bn
Institutional AUM £103.8bn
10%
17%
26%
39%
33%
25%
31%
19%
UK
Continental Europe
Asia Pacific
Americas
By client domicile
Data Pack | 2011 Q3 results
7
Asset Management AUM analysis
Equities AUM £76.1bn
Fixed Income AUM £34.9bn
10%
17%
26%
26%
30%
36%
21%
34%
UK
Continental Europe
Asia Pacific
Americas
By client domicile
Data Pack | 2011 Q3 results
8
Asset Management AUM analysis
Alternatives AUM £22.7bn
Multi-Asset AUM £32.9bn
5%
11%
37%
37%
40%
20%
23%
27%
Property
Commodities
Emerging market debt
Fund of hedge funds
Private equity fund of funds
Data Pack | 2011 Q3 results
UK Multi Asset
LDI
Other Multi Asset
9
Asset Management business flows
Q3 2010 YTD
£bn
Q3 2011 YTD
Inflows
Outflows
Net
Inflows
Outflows
Net
Institutional
23.4
(9.9)
13.5
19.3
(11.9)
7.4
Intermediary
28.8
(22.9)
5.9
24.8
(27.1)
(2.3)
Total Asset Management
52.2
(32.8)
19.4
44.1
(39.0)
5.1
Data Pack | 2011 Q3 results
10
Asset Management business flows
Gross inflows – £bn
18.5
1.8
15.9
14.8
1.8
4.1
1.2
1.5
14.9
1.0
13.3
3.1
2.5
1.0
2.0
5.3
4.5
4.3
7.3
6.8
7.1
6.6
Q4 2010
Q1 2011
Q2 2011
Q3 2011
5.8
6.0
Q3 2010
Equities
Data Pack | 2011 Q3 results
Fixed Income
Multi-Asset
Alternatives
3.7
Total
11
Intermediary flows
Q3 2011: gross inflows £7.1bn, net outflows £2.7bn
£bn
15
10.4
10
9.3
8.4
7.7
7.1
5
2.0
0.8
0.2
0.2
0
-2.7
-5
-6.9
-8.4
-10
-8.2
-9.1
-9.8
-15
Q3 2010
Q4 2010
Gross inflows
Q1 2011
Gross outflows
Q2 2011
Q3 2011
Net flows
Gross inflows and outflows before netting.
Data Pack | 2011 Q3 results
12
Institutional flows
Q3 2011: gross inflows £6.2bn, net inflows £2.8bn
£bn
10
8.0
7.1
6.6
5
3.7
6.5
3.3
6.2
2.8
2.8
1.8
0
-5
-3.4
-3.4
-3.8
-4.7
-4.7
-10
Q3 2010
Q4 2010
Gross inflows
Data Pack | 2011 Q3 results
Q1 2011
Gross outflows
Q2 2011
Q3 2011
Net flows
13
Income and cost metrics for the Group
FY
2010
Q3
2010
YTD
Q3
2011
YTD
Total compensation costs:
operating revenue ratio
45%
48%
45%
Bonus:
pre-bonus operating profit
40%
41%
41%
Total costs:
net revenue ratio
67%
Return on average capital
(pre-tax)
Return on average capital
(post-tax)
24%
18%
74%
23%
17%

Total compensation costs: operating revenues =
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

Total costs: 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
66%
23%
18%
* Adjusted by the Remuneration Committee for allowable and disallowable revenues
Data Pack | 2011 Q3 results
14
Net revenue and margins – Asset Management
Asset Management net revenue £256.8 million
(Q3 2010: £232.7 million)
Q3 2010
Q3 2011
AM net revenue - £m
232.7
256.8
Average AM AUM - £bn
158.1
177.4
AM net revenue on average AM AUM
59bps
58bps
7.6
14.3
AM performance fees on average AM AUM
2bps
4bps
AM costs - £m
149.6
166.6
AM costs on average AM AUM
38bps
38bps
83.1
90.2
21bps
20bps
AM performance fees - £m
AM operating profit - £m
AM operating profit on average AM AUM
Data Pack | 2011 Q3 results
15
Key performance indicators
Net revenue margin quarterly progression excluding performance fees
73
72
72
67
65
57
58
60
58
57
57
58
56
Q3 2010
Q4 2010
Asset Management
Data Pack | 2011 Q3 results
56
54
Q1 2011
Private Banking
Q2 2011
Q3 2011
Combined
16
Key performance indicators
Total costs
£m
218.4
191.9
193.5
194.9
192.6
59.1
71.5
62.2
138.3
134.4
123.4
130.4
Q4 2010
Q1 2011
Q2 2011
Q3 2011
80.1
67.1
124.8
Q3 2010
Staff costs
Data Pack | 2011 Q3 results
Non-staff costs
17
Key performance indicators
Total compensation costs: operating revenues
49%
2009
45%
45%
2010
2011 YTD
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
Data Pack | 2011 Q3 results
18
Key performance indicators
Total costs: net revenue
78%
2009
67%
66%
2010
2011 YTD
Total Group costs divided by net revenue
2009 figures exclude exceptional items
Data Pack | 2011 Q3 results
19
Key performance indicators
Cost: operating revenue
79%
70%
2009
2010
66%
2011 YTD
Total Group costs divided by Asset Management and Private Banking net revenue
2009 figures exclude exceptional items
Data Pack | 2011 Q3 results
20
Key performance indicators
Headcount
2,901
2,844
2,793
2,722
2,722
Q3 2010
Q4 2010
Data Pack | 2011 Q3 results
Q1 2011
Q2 2011
Q3 2011
21
Income statement progression
Asset Management profit before tax
£m
Q3 2010
Q4 2010
Q1 2011
Q2 2011
Q3 2011
232.7
286.7
261.2
273.4
256.8
(149.6)
(173.6)
(165.3)
(169.9)
(166.6)
JVs and associates
2.0
4.0
1.6
2.6
2.5
Net finance income/ (charge)
0.8
0.7
(0.2)
(0.3)
–
Asset Management profit
85.9
117.8
97.3
105.8
92.7
Net revenue
Costs
Data Pack | 2011 Q3 results
22
Income statement progression
Private Banking profit before tax
£m
Net revenue
Costs
Private Banking profit
Data Pack | 2011 Q3 results
Q3 2010
Q4 2010
Q1 2011
Q2 2011
Q3 2011
24.0
29.4
30.1
27.9
29.3
(21.1)
(28.8)
(23.4)
(22.3)
(22.6)
2.9
0.6
6.7
5.6
6.7
23
Income statement progression
Group segment profit/(loss) before tax
£m
Q3 2010
Q4 2010
Q1 2011
Q2 2011
Q3 2011
23.7
19.0
(0.7)
1.3
4.3
(19.8)
(14.6)
(3.4)
(4.1)
(3.4)
JVs and associates*
0.4
(1.2)
(0.6)
(1.2)
(1.8)
Net finance income/ (charge)
1.4
2.6
4.5
4.5
3.1
Group profit/(loss)
5.7
5.8
(0.2)
0.5
2.2
Net revenue
Costs
* Schroder Ventures Investments Limited only
Data Pack | 2011 Q3 results
24
Balance sheet
£m
31 Dec 2010
31 Mar 2011
30 Jun 2011
30 Sep 2011
Intangible assets including goodwill
142.5
140.7
143.7
143.4
Other non-current assets
828.4
833.8
820.7
792.7
Current assets
4,129.6
4,347.5
4,258.0
4,419.6
Assets backing unit-linked liabilities
8,273.4
8,383.8
8,891.7
8,403.9
Total assets
13,373.9
13,705.8
14,114.1
13,759.6
553.9
530.2
514.8
513.5
Current liabilities
2,746.9
2,950.4
2,862.2
3,002.4
Unit-linked liabilities
8,273.4
8,383.8
8,891.7
8,403.9
Total liabilities
11,574.2
11,864.4
12,268.7
11,919.8
Net assets
1,799.7
1,841.4
1,845.4
1,839.8
Total equity*
1,799.7
1,841.4
1,845.4
1,839.8
Non-current liabilities
*Includes non-controlling interests Sep 2011 £0.2m (Jun 2011 £0.2m, Mar 2011 £3.2m, Dec 2010 £3.2m)
Data Pack | 2011 Q3 results
25
Group capital allocation
£m
31 Mar 2011
30 Jun 2011
30 Sep 2011
Investment capital*
757
807
760
Asset Management &
Private Banking operational capital
906
850
890
Other (intangibles etc.)
178
188
190
Statutory Group capital
1,841
1,845
1,840
* Not included in AUM
Data Pack | 2011 Q3 results
26
Forward-looking statements
These presentation slides may contain certain forward-looking statements with respect to the financial condition,
results of operations and businesses of the Schroders Group.
Such 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.
Data Pack | 2011 Q3 results
27