Schroders
2010 Q3 results
trusted heritage
advanced thinking
Data Pack
Contents
Page
Funds under management (FUM)
2
FUM by client domicile
3
Currency profile of FUM
4
FUM 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
17
Income statement progression
21
Balance sheet
24
Group capital
25
Forward-looking statements
26
Funds under management (FUM)
£181.5 billion at 30 September 2010
Asset Management
£bn
2
Institutional
Intermediary
Private Banking
Total
31 December 2009
76.7
59.1
12.6
148.4
Net flows
13.5
5.9
2.1
21.5
Investment returns
7.4
3.5
0.7
11.6
30 September 2010
97.6
68.5
15.4
181.5
FUM by client domicile
• £118.1 billion funds under management from clients outside the UK
North
America
£18.5bn
South
America
£4.8bn
UK
£63.4bn
Continental
Europe
£43.4bn
Middle
East
£3.9bn
£5.0bn China joint venture
China joint venture funds under management are not reported within Group funds under management
By client domicile
3
Asia
Pacific
£47.5bn
Currency profile of FUM
Funds under management £181.5 billion
25%
40%
7%
6%
12%
GBP
By client domicile
4
EUR
USD
10%
JPY
CHF
Other
Total FUM by channel, region and product
Funds under management £181.5 billion
By channel
By product
By region
8%
9%
13%
54%
35%
15%
45%
26%
38%
13%
26%
Institutional
Intermediary
Private Banking
UK
Equities
Fixed Income
Asia Pacific
Alternatives
Multi-asset
Continental Europe*
Private Banking
Americas
By client domicile
5
18%
* Including Middle East
Asset Management FUM by channel and product
Intermediary FUM £68.5bn
Institutional FUM £97.6bn
12%
15%
9%
47%
54%
22%
25%
16%
Equities
Multi-asset
6
Fixed Income
Alternatives
Asset Management FUM by channel and region
Institutional FUM £97.6bn
Intermediary FUM £68.5bn
9%
18%
25%
37%
34%
24%
32%
21%
UK
Asia Pacific
By client domicile
7
Continental Europe
Americas
Asset Management FUM analysis
Fixed Income FUM £32.5bn
Equities FUM £82.4bn
10%
18%
23%
26%
31%
34%
22%
36%
UK
Asia Pacific
By client domicile
8
Continental Europe
Americas
Asset Management FUM analysis
Alternatives FUM £23.4bn
Multi Asset FUM £26.6bn
5%
8%
36%
42%
24%
58%
27%
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
Q3 2009 YTD
Q3 2010 YTD
£bn
Inflows
Outflows
Net
Inflows
Outflows
Net
Institutional
12.5
(10.1)
2.4
23.4
(9.9)
13.5
Intermediary (netted)
11.8
(5.6)
6.2
14.9
(9.0)
5.9
Total Asset Management
24.3
(15.7)
8.6
38.3
(18.9)
19.4
Q3 2009 YTD
Q3 2010 YTD
£bn
Inflows
Outflows
Net
Inflows
Outflows
Net
Institutional
12.5
(10.1)
2.4
23.4
(9.9)
13.5
Intermediary (no-netting)
19.4
(13.2)
6.2
28.8
(22.9)
5.9
Total Asset Management
31.9
(23.3)
8.6
52.2
(32.8)
19.4
Intermediary historically reported as netted flows (same client flows within the same region within the same month)
10
Asset Management business flows
Gross Inflows - £bn
Net Flows - £bn
19.3
20
10
18.0
18
16
3.5
15.8
1.9
12
1.1
2.2
14.8
14.8
14
9.3
2.9
1.9
1.5
2.2
8
7.0
1.8
1.2
1.3
5.8
1.1
6
6.7
10
5.6
5.9
1.3
5.6
0.2
1.9
5.8
5.5
8
4
2.7
3.4
6
8.1
6.2
6.0
1.5
1.1
0
2.8
3.0
2.3
2
0.5
0
Q3 09
Q4 09
Q1 10
Q2 10
Q3 10
Equities
Multi-asset
11
0.6
0.6
2
7.6
6.1
4.5
0.4
2.7
2.9
4
1.0
Q3 09
Fixed Income
Alternatives
Q4 09
Q1 10
Q2 10
Q3 10
Intermediary flows
Q3 2010: gross inflows £7.7bn, net inflows £0.8bn
£bn – sales flows
15
10
9.7
8.7
10.8
10.3
7.7
5
3.7
3.3
3.4
1.8
0.8
0
(5)
(5.0)
(6.3)
(10)
Q3 2009
Gross sales
12
Gross inflows and outflows before netting.
Q4 2009
(6.9)
(7.0)
Q1 2010
Gross outflows
(9.0)
Q2 2010
Q3 2010
Net sales
Institutional flows
Q3 2010: gross inflows £7.1bn, net inflows £3.7bn
£bn – sales flows
9.0
10
6.1
6.0
5
6.0
7.1
7.3
3.8
3.3
3.7
2.4
0
(5)
(2.8)
(3.6)
(3.0)
Q4 2009
Q1 2010
(3.5)
(3.4)
Q2 2010
Q3 2010
(10)
Q3 2009
Gross sales
13
Gross outflows
Net sales
Income and cost metrics for the Group
Q3 2010
Q2 2010 Q3 2010
YTD
Compensation costs: operating revenues
45%
48%
47%
Bonus: pre-bonus Asset Management and
Private Banking profit
41%
41%
41%
Total group cost: net revenues
67%
74%
71%
– Compensation costs: operating
revenues = total Group compensation
costs divided by Asset Management
and Private Banking net revenues
(adjusted by the remuneration
committee for allowable and
disallowable revenues)
– Bonus: pre-bonus Asset Management
and Private Banking profit = total
Group bonus divided by pre-bonus
Asset Management and Private
Banking profit before tax
– Group cost: net revenues = total
Group costs divided by Asset
Management and Private Banking net
revenues
14
Net revenue and margins – Asset Management
Asset Management net revenue £232.7 million
(Q3 2009: £172.7 million)
Q3 2009
Q3 2010
AM net revenue - £m
172.7
232.7
Average AM FUM - £bn
114.5
158.1
AM net revenue on average AM FUM
60bps
59bps
5.0
7.6
AM Performance fees on average AM FUM
1bps
2bps
AM costs - £m
122.2
149.6
AM costs on average AM FUM
43bps
38bps
50.5
83.1
18bps
21bps
AM performance fees - £m
AM operating profit - £m
AM operating profit on average AM FUM
15
Key performance indicators
Net revenue margin quarterly progression Excluding performance fees
81
81
74
61
59
Q3 2009
63
61
Q4 2009
Asset Management
16
74
61
60
Q1 2010
Private Banking
61
60
65
58
57
Q2 2010
Combined
Q3 2010
Key performance indicators
Total costs
£m
197.3
191.1
191.9
172.6
155.6
64.9
63.9
67.1
57.4
56.4
132.4
127.2
Q4 2009
Q1 2010
99.2
Q3 2009
Staff costs
115.2
124.8
Q2 2010
Q3 2010
Non-staff costs
• 52% of staff costs are variable in Q3 2010 compared to 45% in Q3 2009
2009 figures exclude exceptional items
17
Key performance indicators
Compensation costs: operating revenues
45%
49%
47%
2008
2009
Q1 2010
45%
Q2 2010
Total Group compensation costs divided by Asset Management and Private Banking net revenues
18
48%
Q3 2010
Key performance indicators
Total group cost: operating revenue ratio
79%
73%
2008
74%
71%
2009
Q1 2010
Total Group costs divided by Asset Management and Private Banking net revenue
19
67%
Q2 2010
Q3 2010
Key performance indicators
Headcount
2,722
20
2,662
2,612
2,609
2,608
Q3 2009
Q4 2009
Q1 2010
Q2 2010
Q3 2010
Income statement progression
Asset Management profit before tax
£m
Q3
2009
Q4
2009
Q1
2010
Q2
2010
Q3
2010
Net revenue
172.7
229.1
244.8
232.0
232.7
(122.2)
(160.9)
(160.1)
(146.5)
(149.6)
JVs and associates
4.2
1.6
3.3
1.9
2.0
Net finance income
0.6
0.6
0.9
1.0
0.8
Exceptional items
(1.3)
(3.8)
-
-
-
Asset Management profit
54.0
66.6
88.9
88.4
85.9
Costs
21
Income statement progression
Private Banking profit before tax
£m
Q3
2009
Q4
2009
Q1
2010
Q2
2010
Q3
2010
Private Banking revenue
23.6
24.9
24.3
25.6
24.0
(17.3)
(26.0)
(23.0)
(20.3)
(21.1)
-
0.4
-
-
-
6.3
(0.7)
1.3
5.3
2.9
Private Banking costs
Private Banking
exceptionals
Private Banking profit
22
Income statement progression
Group segment profit before tax
Q3
2009
Q4
2009
Q1
2010
Q2
2010
Q3
2010
1.8
1.8
5.0
4.1
23.7
(9.8)
(7.5)
(6.6)
(5.7)
(19.8)
JVs and associates
3.3
1.3
3.5
1.6
0.4
Net finance income
0.9
0.6
1.1
1.3
1.4
Exceptional items
(12.9)
(4.5)
-
-
-
Group profit
(16.7)
(8.3)
3.0
1.3
5.7
3.3
1.3
3.5
1.6
0.4
£m
Net revenue
Costs
SVIL
23
Balance sheet
£m
31 Dec 2009
31 Mar 2010
30 Jun 2010
30 Sep 2010
Intangible assets including goodwill
141.9
144.5
143.0
140.7
Other non-current assets
768.6
833.0
822.2
823.3
3,670.1
3,962.8
4,005.9
4,167.3
-
-
1.8
-
Assets backing unit-linked liabilities
5,708.0
6,284.0
6,033.3
6,558.7
Total assets
10,288.6
11,224.3
11,006.2
11,690.0
Total equity*
1,649.0
1,613.7
1,597.8
1,647.8
566.6
607.1
581.6
602.0
2,365.0
2,719.5
2,793.2
2,881.5
-
-
0.3
-
Unit-linked liabilities
5,708.0
6,284.0
6,033.3
6,558.7
Total equity and liabilities
10,288.6
11,224.3
11,006.2
11,690.0
Current assets
Non-current assets held for sale
Non-current liabilities
Current liabilities
Non-current liabilities held for sale
*Includes non-controlling interests (Dec 2009: £0.6m; Mar 2010 £4.0m; Jun 2010 £3.7m; Sep 2010 £4.0m;)
24
Group capital
£m
31 Dec 2009
31 Mar 2010
30 Jun 2010
30 Sep 2010
272
76
348
313
178
491
344
150
494
331
87
418
Private Banking:
Cash and cash equivalents
Other net assets
Total Private Banking operational capital
1,011
(769)
242
1,244
(999)
245
1,280
(1,047)
233
1,456
(1,220)
236
Investment capital:
Cash & liquid debt securities
Private equity
Other investments
Sub-total
Seed capital
Group capital
808
90
20
918
141
1,059
547
99
73
719
154
873
352
92
263
707
160
867
456
103
262
821
169
990
Total capital (excluding non-controlling interests)
1,649
1,609
1,594
1,644
Asset Management:
Cash & liquid debt securities
Other net assets
Total Asset Management operational capital
25
Forward-looking statements
These presentation slides contain certain forward-looking statements and forecasts with respect to the
financial condition and results of the businesses of Schroders plc
These statements and forecasts involve risk and uncertainty because they relate to events and depend upon
circumstances that may occur in the future
There are a number of factors that could cause actual results or developments to differ materially from those
expressed or implied by those forward-looking statements and forecasts. Nothing in this presentation should
be construed as a profit forecast
26