Schroders
2010 Half-year 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
Total costs
17
Key performance indicators
18
Headcount
20
Income statement progression
21
Balance sheet
24
Group capital
25
Forward-looking statements
26
Funds under management
£164.0 billion at end June 2010
£bn
2
Institutional
Intermediary
Private Banking
Total
31 December 2009
76.7
59.1
12.6
148.4
Net flows
9.8
5.1
1.2
16.1
Investment returns
0.8
(1.5)
0.2
(0.5)
30 June 2010
87.3
62.7
14.0
164.0
FUM by client domicile
• £106.6 billion funds under management from clients outside the UK
North
America
£16.8bn
South
America
£4.6bn
UK
£57.4bn
Continental
Europe
£39.9bn
Middle
East
£3.1bn
£5.1bn China joint venture
China joint venture funds under management are not reported within Group funds under management
By client domicile
3
Asia
Pacific
£42.2bn
Currency profile of FUM
Funds under management £164.0 billion
25%
40%
8%
5%
12%
GBP
By client domicile
4
EUR
USD
10%
JPY
CHF
Other
Total FUM by channel, region and product
Funds under management £164.0 billion
By channel
By product
By region
9%
9%
13%
53%
35%
16%
45%
26%
38%
13%
26%
Institutional
Private Banking
Intermediary
UK
Asia Pacific
Continental Europe
Americas
By client domicile
5
17%
Equities
Alternatives
Private Banking
Fixed Income
Multi-asset
Asset Management FUM by channel and product
Intermediary FUM £62.7bn
Institutional FUM £87.3bn
13%
16%
9%
46%
54%
23%
24%
15%
Equities
Multi-asset
6
Fixed Income
Alternatives
Asset Management FUM by channel and region
Institutional FUM £87.3bn
Intermediary FUM £62.7bn
9%
18%
25%
38%
35%
23%
31%
21%
UK
Asia Pacific
By client domicile
7
Continental Europe
Americas
Asset Management FUM analysis
Fixed Income FUM £28.6bn
Equities FUM £74.0bn
12%
18%
25%
26%
25%
34%
22%
38%
UK
Asia Pacific
By client domicile
8
Continental Europe
Americas
Alternatives breakdown
Alternatives FUM £21.9bn
5%
8%
36%
24%
27%
Property
Emerging
market debt
Commodities
Fund of
hedge funds
Private equity
fund of funds
9
Asset Management business flows
H1 2009
H1 2010
£bn
Inflows
Outflows
Net
Inflows
Outflows
Net
Institutional
6.4
(7.3)
(0.9)
16.3
(6.5)
9.8
Intermediary (netted)
6.0
(3.6)
2.4
11.2
(6.1)
5.1
Total Asset Management
12.4
(10.9)
1.5
27.5
(12.6)
14.9
H1 2009
H1 2010
£bn
Inflows
Outflows
Net
Inflows
Outflows
Net
Institutional
6.4
(7.3)
(0.9)
16.3
(6.5)
9.8
Intermediary (no-netting)
10.6
(8.2)
2.4
21.1
(16.0)
5.1
Total Asset Management
17.0
(15.5)
1.5
37.4
(22.5)
14.9
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
20
10
18
16
8
14
12
6
10
8
4
6
2
4
2
0
0
Q2 09
Q3 09
Q4 09
Q1 10
Q2 10
Equities
Multi-asset
11
Q2 09
Fixed Income
Alternatives
Q3 09
Q4 09
Q1 10
Q2 10
Intermediary flows
Q2 2010: gross inflows £10.8bn, net inflows £1.8bn
£bn – sales flows
15
10
10.8
10.3
9.7
8.7
6.5
5
3.7
2.2
3.4
3.3
1.8
0
(5)
(4.3)
(5.0)
(6.3)
(7.0)
(9.0)
(10)
Q2 2009
Gross sales
12
Gross inflows and outflows before netting.
Q3 2009
Q4 2009
Gross outflows
Q1 2010
Q2 2010
Net sales
Institutional flows
Q2 2010: gross inflows £7.3bn, net inflows £3.8bn
£bn – sales flows
10
9.0
6.1
5
7.3
6.0
6.0
4.0
3.3
3.8
2.4
1.6
0
(2.4)
(2.8)
Q2 2009
Q3 2009
(5)
(3.6)
(3.0)
(3.5)
Q4 2009
Q1 2010
Q2 2010
(10)
Gross sales
13
Gross outflows
Net sales
Income and cost metrics for the Group
Q1 2010 Q2 2010
14
Compensation costs: operating revenues
47%
45%
Bonus: pre-bonus Asset Management and
Private Banking profit
41%
41%
Group cost: operating revenues
71%
67%
– Compensation costs: operating revenues = total
Group compensation costs divided by Asset
Management and Private Banking net revenues
– Bonus: pre-bonus Asset Management and Private
Banking profit = total Group bonus divided by prebonus Asset Management and Private Banking profit
before tax
– Group cost: operating revenues = total Group costs
divided by Asset Management and Private Banking
net revenues
Net revenue and margins – Asset Management
Asset Management net revenue £476.8 million
(H1 2009: £277.4 million)
H1 2009
H1 2010
AM net revenue - £m
277.4
476.8
Average AM FUM - £bn
96.0
148.6
58bps
64bps
1.7
31.3
AM Performance fees on average AM FUM
1bps
4bps
AM costs - £m
229.4
306.6
AM costs on average AM FUM
48bps
41bps
48.0
170.2
10bps
23bps
AM net revenue on average AM FUM
AM performance fees - £m
AM operating profit - £m
AM operating profit on average AM FUM
15
Net revenue margin quarterly progression
Excluding performance fees
81
81
81
74
62
60
Q2 2009
61
59
Q3 2009
Asset Management
16
63
61
Q4 2009
Private Banking
74
61
60
61
60
Q1 2010
Combined
Q2 1010
Total costs
£m
64.9
63.9
57.4
56.4
57.9
86.3
Q2 2009
132.4
127.2
Q4 2009
Q1 2010
99.2
Q3 2009
Staff costs
Non-staff costs
• 48% of staff costs are variable in Q2 2010 compared to 37% in Q2 2009
2009 figures exclude exceptional items
17
115.2
Q2 2010
Compensation costs: operating revenues
49%
46%
2007
47%
45%
2008
2009
Q1 2010
Total Group compensation costs divided by Asset Management and Private Banking net revenues
18
45%
Q2 2010
Group cost: operating revenue ratio
79%
71%
73%
2007
2008
71%
2009
Total Group costs divided by Asset Management and Private Banking net revenue
19
Q1 2010
67%
Q2 2010
Headcount
20
2,662
2,626
2,612
2,609
2,608
Q2 2009
Q3 2009
Q4 2009
Q1 2010
Q2 2010
Income statement progression
Asset Management profit before tax
£m
Q2
2009
Q3
2009
Q4
2009
Q1
2010
Q2
2010
Net revenue
149.9
172.7
229.1
244.8
232.0
(114.1)
(122.2)
(160.9)
(160.1)
(146.5)
JVs and associates
2.3
4.2
1.6
3.3
1.9
Net finance income
0.6
0.6
0.6
0.9
1.0
Exceptional items
(5.5)
(1.3)
(3.8)
-
-
Asset Management profit
33.2
54.0
66.6
88.9
88.4
Costs
21
Income statement progression
Private Banking profit before tax
£m
Q2
2009
Q3
2009
Q4
2009
Q1
2010
Q2
2010
Private Banking revenue
22.8
23.6
24.9
24.3
25.6
Private Banking costs
(16.2)
(17.3)
(26.0)
(23.0)
(20.3)
Private Banking
exceptionals
(0.4)
-
0.4
-
-
6.2
6.3
(0.7)
1.3
5.3
Private Banking profit
22
Income statement progression
Group segment profit before tax
Q2
2009
Q3
2009
Q4
2009
Q1
2010
Q2
2010
0.2
1.8
1.8
5.0
4.1
Costs
(6.8)
(9.8)
(7.5)
(6.6)
(5.7)
JVs and associates
(2.8)
3.3
1.3
3.5
1.6
Net finance income
4.9
0.9
0.6
1.1
1.3
Exceptional items
(10.8)
(12.9)
(4.5)
-
-
Group profit
(15.3)
(16.7)
(8.3)
3.0
1.3
SVIL
(0.3)
3.3
1.3
3.5
1.6
£m
Net revenue
23
Balance sheet
£m
31 Dec 2009
31 Mar 2010
30 Jun 2010
Intangible assets including goodwill
141.9
144.5
143.0
Other non-current assets
768.6
833.0
822.2
3,670.1
3,962.8
4,005.9
-
-
1.8
Assets backing unit-linked liabilities
5,708.0
6,284.0
6,033.3
Total assets
10,288.6
11,224.3
11,006.2
Total equity*
1,649.0
1,613.7
1,597.8
566.6
607.1
581.6
2,365.0
2,719.5
2,793.2
-
-
0.3
Unit-linked liabilities
5,708.0
6,284.0
6,033.3
Total equity and liabilities
10,288.6
11,224.3
11,006.2
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)
24
Group capital
£m
Asset Management:
Cash & liquid debt securities
Other net assets
Total Asset Management operational capital
25
31 Dec
2009
31 Mar 2010 30 Jun 2010
272
76
348
313
178
491
344
150
494
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
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
Total capital
1,649
1,609
1,594
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