Schroders
2011 Half-year results
trusted heritage
advanced thinking
Data Pack
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
Assets under management (AUM)
£204.8 billion at 30 June 2011
Asset Management
£bn
Institutional
Intermediary
Private Banking
Total
106.4
74.1
16.2
196.7
Net flows
4.6
0.4
0.1
5.1
Investment returns
1.7
0.9
0.4
3.0
112.7
75.4
16.7
204.8
31 December 2010
30 June 2011
2
Regional diversification of AUM
67% of revenues outside UK
North
America
£22.0bn
3
UK
£72.2bn
Continental
Europe
£47.1bn
South
America
£6.2bn
Middle
East
£5.2bn
Asia
Pacific
£52.1bn
Currency profile of AUM
Assets under management £204.8 billion
27%
29%
2%
3%
15%
24%
GBP
4
EUR
USD
JPY
CHF
Other
Total AUM by channel, region and product
Assets under management £204.8 billion
By channel
By product
By region
8%
8%
14%
55%
35%
17%
45%
25%
12%
37%
26%
Institutional
Intermediary
UK
Equities
Continental Europe*
Fixed Income
Asia Pacific
Private Banking
By client domicile
5
18%
Americas
* Including Middle East
Alternatives
Multi-Asset
Private Banking
Asset Management AUM by channel and product
Intermediary AUM £75.4bn
Institutional AUM £112.7bn
11%
14%
10%
46%
54%
24%
25%
Equities
Multi-Asset
6
Fixed Income
Alternatives
16%
Asset Management AUM by channel and region
Institutional AUM £112.7bn
Intermediary AUM £75.4bn
10%
18%
26%
37%
32%
24%
32%
By client domicile
7
21%
UK
Continental Europe
Asia Pacific
Americas
Asset Management AUM analysis
Fixed Income AUM £36.5bn
Equities AUM £92.2bn
10%
17%
23%
26%
30%
34%
23%
37%
By client domicile
8
UK
Continental Europe
Asia Pacific
Americas
Asset Management AUM analysis
Alternatives AUM £24.3bn
Multi-Asset AUM £35.1bn
5%
10%
35%
22%
28%
Property
Commodities
UK Multi-Asset
Emerging
market debt
Fund of
hedge funds
Other Multi-Asset
Private equity
fund of funds
9
Asset Management business flows
H1 2010 YTD
H1 2011 YTD
£bn
10
Inflows
Outflows
Net
Inflows
Outflows
Net
Institutional
16.3
(6.5)
9.8
13.1
(8.5)
4.6
Intermediary
21.1
(16.0)
5.1
17.7
(17.3 )
0.4
Total Asset Management
37.4
(22.5)
14.9
30.8
(25.8)
5.0
Asset Management business flows
Gross inflows – £bn
19.3
18.5
18.1
3.5
1.9
5.8
2.2
1.5
1.8
1.2
15.9
4.1
1.5
14.9
1.0
3.1
2.5
4.5
4.3
7.3
6.8
7.1
Q4 2010
Q1 2011
Q2 2011
6.7
5.8
8.1
7.7
Q1 2010
Q2 2010
6.0
Equities
11
1.8
14.8
Q3 2010
Fixed Income
5.3
Multi-Asset
Alternatives
Intermediary flows
Q2 2011: gross inflows £8.4bn, net inflows £0.2bn
£bn
15
10.8
10.3
10.4
10
9.3
8.4
7.7
5
3.3
1.8
2.0
0.8
0.2
0.2
0
-5
-10
-6.9
-7.0
-9.0
-8.4
-9.1
Q4 2010
Q1 2011
-8.2
-15
Q1 2010
Q2 2010
Q3 2010
Gross inflows
12
Gross inflows and outflows before netting.
Gross outflows
Net flows
Q2 2011
Institutional flows
Q2 2011: gross inflows £6.5bn, net inflows £1.8bn
£bn
10
9.0
8.0
7.3
7.1
6.6
6.0
5
3.8
3.7
6.5
3.3
2.8
1.8
0
-3.0
-5
-3.4
-3.5
-3.8
-4.7
-4.7
-10
Q1 2010
Q2 2010
Q3 2010
Gross inflows
13
Q4 2010
Gross outflows
Q1 2011
Net flows
Q2 2011
Income and cost metrics for the Group
FY
2010
14
H1
2011
– Total compensation costs: operating revenues = total
Group compensation costs divided by Asset
Management and Private Banking net revenues
Total compensation costs: operating revenue
ratio
45%
44%
– Bonus: pre-bonus operating profit = total Group
bonus divided by pre-bonus Asset Management and
Private Banking profit before tax
Bonus: pre-bonus operating profit
40%
40%
– Total costs: net revenue = total Group costs divided
by net revenue
Total costs: net revenue ratio
67%
65%
– Return on average capital (pre-tax) = total Group
profit before tax divided by average capital
Return on average capital (pre-tax)
24%
24%
– Return on average capital (post-tax) = total Group
profit after tax divided by average capital
Return on average capital (post-tax)
18%
18%
Net revenue and margins – Asset Management
Asset Management net revenue £534.6 million
(H1 2010: £476.8 million)
15
H1 2010
H1 2011
AM net revenue - £m
476.8
534.6
Average AM AUM - £bn
148.6
184.6
AM net revenue on average AM AUM
64bps
58bps
AM performance fees - £m
31.3
13.8
AM performance fees on average AM AUM
4bps
1bps
AM costs - £m
306.6
335.2
AM costs on average AM AUM
41bps
36bps
AM operating profit - £m
170.2
199.4
AM operating profit on average AM AUM
23bps
22bps
Key performance indicators
Net revenue margin quarterly progression excluding performance fees
74
60
74
61
Q1 2010
60
73
61
67
65
57
Q2 2010
Asset Management
16
72
58
Q3 2010
58
60
Q4 2010
Private Banking
56
57
Q1 2011
Combined
57
58
Q2 2011
Key performance indicators
Total costs
£m
218.4
193.5
194.9
59.1
71.5
138.3
134.4
123.4
Q1 2011
Q2 2011
191.9
191.1
172.7
63.9
80.1
67.1
57.4
17
127.2
115.2
124.8
Q1 2010
Q2 2010
Q3 2010
Q4 2010
Staff costs
Non-staff costs
Key performance indicators
Total compensation costs: operating revenues
49%
45%
2008
2009
45%
44%
2010
H1 2011
Total Group compensation costs divided by Asset Management and Private Banking net revenues
2008 and 2009 figures exclude exceptional items
18
Key performance indicators
Total costs: net revenue
78%
72%
2008
Total Group costs divided by net revenue
2008 and 2009 figures exclude exceptional items
19
2009
67%
65%
2010
H1 2011
Key performance indicators
Cost: operating revenue
79%
73%
2008
70%
2009
Total Group costs divided by Asset Management and Private Banking net revenue
2008 and 2009 figures exclude exceptional items
20
2010
66%
H1 2011
Key performance indicators
Headcount
2,662
2,722
2,722
Q3 2010
Q4 2010
2,793
2,844
Q1 2011
Q2 2011
2,608
Q1 2010
21
Q2 2010
Income statement progression
Asset Management profit before tax
£m
Q1
2010
Q2
2010
Q3
2010
Q4
2010
Q1
2011
Q2
2011
Net revenue
244.8
232.0
232.7
286.7
261.2
273.4
(160.1)
(146.5)
(149.6)
JVs and associates
3.3
1.9
2.0
4.0
1.6
2.6
Net finance
income/(charge)
0.9
1.0
0.8
0.7
(0.2)
(0.3)
Asset Management profit
88.9
88.4
85.9
117.8
97.3
105.8
Costs
22
(173.6) (165.3)
(169.9)
Income statement progression
Private Banking profit before tax
£m
Q1
2010
Q2
2010
Q3
2010
Q4
2010
Q1
2011
Q2
2011
Net revenue
24.3
25.6
24.0
29.4
30.1
27.9
(23.0)
(20.3)
(21.1)
(28.8)
(23.4)
(22.3)
1.3
5.3
2.9
0.6
6.7
5.6
Costs
Private Banking profit
23
Income statement progression
Group segment profit/(loss) before tax
Q1
2010
Q2
2010
Q3
2010
Q4
2010
Q1
2011
Q2
2011
5.0
4.1
23.7
19.0
(0.7)
1.3
(6.6)
(5.7)
(19.8)
(14.6)
(3.4)
(4.1)
JVs and associates*
3.5
1.6
0.4
(1.2)
(0.6)
(1.2)
Net finance income
1.1
1.3
1.4
2.6
4.5
4.5
Group profit/(loss)
3.0
1.3
5.7
5.8
(0.2)
0.5
£m
Net revenue
Costs
* Schroder Ventures Investments Limited only
24
Balance sheet
£m
31 Dec 2010
31 Mar 2011
30 Jun 2011
Intangible assets including goodwill
142.5
140.7
143.7
Other non-current assets
828.4
833.8
820.7
Current assets
4,129.6
4,347.5
4,258.0
Assets backing unit-linked liabilities
8,273.4
8,383.8
8,891.7
Total assets
13,373.9
13,705.8
14,114.1
553.9
530.2
514.8
Current liabilities
2,746.9
2,950.4
2,862.2
Unit-linked liabilities
8,273.4
8,383.8
8,891.7
Total liabilities
11,574.2
11,864.4
12,268.7
Net assets
1,799.7
1,841.4
1,845.4
Total equity*
1,799.7
1,841.4
1845.4
Non-current liabilities
25
*Includes non-controlling interests June 2011 £0.2m (Mar 2011 £3.2m, Dec 2010 £3.2m)
Group capital allocation
£m
31 Mar 2011
30 Jun 2011
Investment capital*
757
807
Asset Management & Private Banking
operational capital
906
850
Other (intangibles etc.)
178
188
1,841
1,845
Statutory Group capital
* Not included in AUM
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.
27