Schroders
2010 Q1 Results
trusted heritage
advanced thinking
Data Pack
Contents
Funds under management (FUM)
FUM by client domicile
Currency profile of FUM
FUM diversification
Asset Management business flows
Income and cost metrics for the Group
Net revenue and margins – Asset Management
Total costs
Key performance indicators
Headcount
Income statement progression
Balance sheet
Group capital
Forward-looking statements
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Funds under management
£167.9 billion at end March 2010
£bn
2
Institutional
Intermediary
Private Banking
Total
31 December 2009
76.7
59.1
12.6
148.4
Net flows
6.0
3.3
0.4
9.7
Investment returns
5.2
3.9
0.7
9.8
31 March 2010
87.9
66.3
13.7
167.9
FUM by client domicile
• £108.7 billion funds under management from clients outside the UK
UK
£59.2bn
North
America
£17.2bn
South
America
£4.8bn
Continental
Europe
£42.5bn
Middle
East
£2.8bn
£5.9bn China joint venture
China joint venture funds under management are not reported within Group funds under management
By client domicile
3
Asia
Pacific
£41.4bn
Currency profile of FUM
Funds under management £167.9 billion
24%
41%
8%
5%
12%
GBP
By client domicile
4
EUR
10%
USD
JPY
CHF
Other
Total FUM by channel, region and product
Funds under management £167.9 billion
By channel
By product
By region
8%
8%
13%
52%
35%
16%
47%
25%
40%
13%
27%
Institutional
Private Banking
Intermediary
UK
Asia Pacific
Continental Europe
Americas
By client domicile
5
16%
Equities
Alternatives
Private Banking
Fixed Income
Multi-asset
Asset Management FUM by channel and product
Intermediary FUM £66.3bn
Institutional FUM £87.9bn
13%
14%
9%
48%
24%
56%
22%
14%
Equities
Multi-asset
6
Fixed Income
Alternatives
Asset Management FUM by channel and region
Institutional FUM £87.9bn
Intermediary FUM £66.3bn
8%
18%
25%
40%
34%
21%
33%
21%
By client domicile
7
UK
Continental Europe
Asia Pacific
Americas
Asset Management FUM analysis
Fixed Income FUM £26.9bn
Equities FUM £79.5bn
12%
18%
26%
27%
20%
34%
22%
41%
By client domicile
8
UK
Continental Europe
Asia Pacific
Americas
Alternatives breakdown
Alternatives FUM £21.0bn
5%
8%
35%
23%
29%
Property
Emerging
market debt
Commodities
Fund of
hedge funds
Private equity
fund of funds
9
Asset Management business flows
Q1 2009
Q1 2010
£bn
Inflows
Outflows
Net
Inflows
Outflows
Net
Institutional
2.4
(4.8)
(2.4)
9.0
(3.0)
6.0
Intermediary (netted)
2.2
(2.0)
0.2
5.7
(2.4)
3.3
Total Asset Management
4.6
(6.8)
(2.2)
14.7
(5.4)
9.3
Q1 2009
Q1 2010
£bn
Inflows
Outflows
Net
Inflows
Outflows
Net
Institutional
2.4
(4.8)
(2.4)
9.0
(3.0)
6.0
Intermediary (no-netting)
4.1
(3.9)
0.2
10.3
(7.0)
3.3
Total Asset Management
6.5
(8.7)
(2.2)
19.3
(10.0)
9.3
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
10
20
18
8
16
6
14
12
4
10
2
8
6
0
4
(2)
2
0
(4)
Q1 09
Q2 09
Q3 09
Q4 09
Q1 10
Equities
Multi-asset
11
Q1 09
Fixed Income
Alternatives
Q2 09
Q3 09
Q4 09
Q1 10
Intermediary flows
Q1 2010: gross inflows £10.3bn, net inflows £3.3bn
£bn – sales flows
15
10.3
9.6
8.7
10
6.6
5
4.1
3.7
3.4
2.3
3.3
0.2
0
(5)
(3.9)
(4.3)
(5.0)
(6.2)
(7.0)
(10)
Q1 2009
Gross sales
12
Gross inflows and outflows before netting.
Q2 2009
Q3 2009
Gross outflows
Q4 2009
Q1 2010
Net sales
Institutional flows
Q1 2010: gross inflows £9.0bn, net inflows £6.0bn
£bn – sales flows
9.0
10
6.1
4.0
5
6.0
6.0
3.3
2.4
2.4
1.6
0
(2.4)
(2.4)
(2.8)
Q2 2009
Q3 2009
(5)
(4.8)
(3.6)
(3.0)
(10)
Q1 2009
Gross sales
13
Gross outflows
Q4 2009
Net sales
Q1 2010
Income and cost metrics for the Group
2009
Q1 2010
Compensation costs: operating revenues
49%
47%
Bonus: pre-bonus Asset Management and
Private Banking profit
45%
41%
Group cost: operating revenues
79%
71%
Before exceptional items
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– 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 £244.8 million
(2009 Q1: £127.5 million)
Q1 2009
Q1 2010
FY 2009
AM net revenue - £m
127.5
244.8
679.2
Average AM FUM - £bn
95.1
145.0
109.5
54bps
67bps
62bps
AM performance fees - £m
-
27.2
34.5
AM Performance fees on average AM FUM
-
7bps
3bps
AM costs - £m
103.1
160.1
500.3
AM costs on average AM FUM
43bps
44bps
46bps
24.4
84.7
178.9
10bps
23bps
16bps
AM net revenue on average AM FUM
AM operating profit - £m
AM operating profit on average AM FUM
All amounts are before exceptional items
15
Net revenue margin quarterly progression
Excluding performance fees
92
81
81
81
74
59
55
Q1 2009
62
60
Q2 2009
Asset Management
16
61
59
Q3 2009
Private Banking
63
61
61
60
Q4 2009
Combined
Q1 2010
Total costs
£m
63.7
63.9
132.0
127.2
Q4 2009
Q1 2010
52.6
54.3
53.8
76.1
84.5
Q1 2009
Q2 2009
Staff costs
98.0
Q3 2009
Non-staff costs
• 50% of staff costs are variable in Q1 2010 compared to 23% in Q1 2009
2009 figures exclude exceptional items
17
Compensation costs: operating revenues
47%
2006
49%
46%
45%
2007
2008
Total Group compensation costs divided by Asset Management and Private Banking net revenues
18
2009
47%
Q1 2010
Group cost: operating revenue ratio
79%
74%
71%
2006
2007
73%
2008
Total Group costs divided by Asset Management and Private Banking net revenue
19
71%
2009
Q1 2010
Headcount
2,737
Q1 2009
20
2626
2612
2,609
2,608
Q2 2009
Q3 2009
Q4 2009
Q1 2010
Income statement progression
Asset Management profit before tax
£m
Q1
2009
Q2
2009
Q3
2009
Q4
2009
Q1
2010
Net revenue
127.5
149.9
172.7
229.1
244.8
(103.1)
(114.1)
(122.2)
(160.9)
(160.1)
JVs and associates
1.8
2.3
4.2
1.6
3.3
Net finance income
1.4
0.6
0.6
0.6
0.9
Exceptional items
(6.7)
(5.5)
(1.3)
(3.8)
-
Asset Management profit
20.9
33.2
54.0
66.6
88.9
Costs
21
Income statement progression
Private Banking profit before tax
£m
Q1
2009
Q2
2009
Q3
2009
Q4
2009
Q1
2010
Private Banking revenue
26.4
22.8
23.6
24.9
24.3
(18.1)
(16.2)
(17.3)
(26.0)
(23.0)
-
(0.4)
-
0.4
-
8.3
6.2
6.3
(0.7)
1.3
Private Banking costs
Private Banking
exceptionals
Private Banking profit
22
Income statement progression
Group segment profit before tax
Q1
2009
Q2
2009
Q3
2009
Q4
2009
Q1
2010
2.9
0.2
1.8
1.8
5.0
(8.0)
(6.8)
(9.8)
(7.5)
(6.6)
JVs and associates
3.9
(2.8)
3.3
1.3
3.5
Net finance income
1.4
4.9
0.9
0.6
1.1
Exceptional items
(17.2)
(10.8)
(12.9)
(4.5)
-
Group profit
(17.0)
(15.3)
(16.7)
(8.3)
3.0
1.4
(0.3)
3.3
1.3
3.5
£m
Net revenue
Costs
SVIL
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Balance sheet
£m
31 Dec 2009
31 Mar 2010
Intangible assets including goodwill
141.9
144.5
Other non-current assets
768.6
833.0
Current assets
3,670.1
3,962.8
Assets backing unit-linked liabilities
5,708.0
6,284.0
Total assets
10,288.6
11,224.3
Total equity*
1,649.0
1,613.7
566.6
607.1
Current liabilities
2,365.0
2,719.5
Unit-linked liabilities
5,708.0
6,284.0
Total equity and liabilities
10,288.6
11,224.3
Non-current liabilities
*Includes minority interests (Dec 2009: £0.6m; Mar 2010 £4.0m)
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Group capital
£m
31 Dec 2009
31 Mar 2010
216
56
76
348
293
20
178
491
Private Banking:
Cash and cash equivalents
Other net assets
Total Private Banking operational capital
1,011
(769)
242
1,244
(999)
245
Group:
Cash and cash equivalents
Liquid debt securities
Seed capital
Private equity
Other investments
Total Group investment capital
276
532
141
90
20
1,059
158
389
154
99
73
873
Total capital
1,649
1,609
Asset Management:
Cash and cash equivalents
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
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