Schroders
2009 Year End 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
Total costs
Key performance indicators
Headcount
Income statement progression
Balance sheet
Group capital
Movement in capital
Private equity interests
2010 Product ladder
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Funds under management
£148.4 billion at end December 2009
£bn
2
Institutional
Intermediary
Private Banking
Total
31 December 2008
59.6
38.9
11.7
110.2
Net flows
4.9
9.6
0.5
15.0
Market movements, foreign
exchange impact & other
12.2
10.6
0.4
23.2
31 December 2009
76.7
59.1
12.6
148.4
FUM by client domicile
• £95.5 billion funds under management from clients outside the UK
UK
£52.9bn
North
America
£14.0bn
South
America
£4.3bn
Continental
Europe
£38.4bn
Middle
East
£2.9bn
£7.7bn China joint venture
China joint venture funds under management are not reported within Group funds under management
3
Asia
Pacific
£35.9bn
Currency profile of FUM
Funds under management £148.4 billion
16%
34%
5%
4%
16%
25%
GBP
4
EUR
USD
JPY
CHF
Other
Total FUM by channel, region and product
Funds under management £148.4 billion
By channel
By product
By region
8%
8%
12%
52%
16%
37%
48%
24%
40%
13%
15%
27%
Institutional
Private Banking
Intermediary
UK
Asia Pacific
Continental Europe
Americas
5
Equities
Alternatives
Private Banking
Fixed Income
Multi-asset
Asset Management FUM by channel and product
Intermediary FUM £59.1bn
Institutional FUM £76.7bn
12%
15%
8%
48%
24%
58%
22%
13%
Equities
Multi-asset
6
Fixed Income
Alternatives
Asset Management FUM by channel and region
Institutional FUM £76.7bn
Intermediary FUM £59.1bn
8%
18%
25%
42%
36%
19%
31%
21%
UK
Asia Pacific
7
Continental Europe
Americas
Asset Management FUM analysis
Fixed Income FUM £23.0bn
Equities FUM £71.1bn
13%
17%
27%
28%
20%
32%
24%
39%
UK
Asia Pacific
8
Continental Europe
Americas
Alternatives breakdown
Alternatives FUM £18.6bn
6%
8%
37%
22%
27%
Property
Emerging
market debt
Commodities
Fund of
hedge funds
Private equity
fund of funds
9
Asset Management business flows
2008
£bn
2009
Inflows
Outflows
Net
Inflows
Outflows
Net
Institutional
11.7
(15.5)
(3.8)
18.6
(13.7)
4.9
Intermediary (netted)
11.0
(17.2)
(6.2)
17.4
(7.8)
9.6
Total Asset Management
22.7
(32.7)
(10.0)
36.0
(21.5)
14.5
2008
£bn
2009
Inflows
Outflows
Net
Inflows
Outflows
Net
Institutional
11.7
(15.5)
(3.8)
18.6
(13.7)
4.9
Intermediary (no-netting)
23.3
(29.5)
(6.2)
29.0
(19.4)
9.6
Total Asset Management
35.0
(45.0)
(10.0)
47.6
(33.1)
14.5
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
15
60
50
10
40
5
30
0
20
-5
10
-10
0
2007
2008
2009
Equities
Multi-asset
11
-15
2007
Fixed Income
Alternatives
2008
2009
Intermediary flows
2009: gross inflows £21.0bn, net inflows £9.6bn
£bn – sales flows
18.3
20
15.8
15
10.7
10
7.4
7.2
5
2.5
0
-0.3
-5
-6.0
-10
-8.2
-11.2
-15
-20
-13.4
-16.1
H1 2008
Gross sales
12
Gross inflows and outflows before netting. .
H2 2008
Gross outflows
H1 2009
H2 2009
Net sales
Institutional flows
2009: gross inflows £18.6bn, net inflows £4.9bn
£bn – sales flows
15
10
12.1
7.3
6.4
5.7
4.4
5
0
-1.1
-2.7
-5
-10
-8.4
-0.8
(
-7.1
-7.2
-6.4
H2 2008
H1 2009
H2 2009
-15
H1 2008
Gross sales
13
Gross outflows
Net sales
Capitalising on strong demand in Continental Europe
Leading active manager in mutual fund sales in 2009
bn
35
30
25
13.8
20
5
13.1
10.1
8.5
8.4
7.1
5.4
5.3
Nordea
16.0
INVESCO
17.5
JP Morgan
17.3
Franklin
Templeton
10
Bluebay
15
Prudential
Deutsche
Carmignac
Schroders
BlackRock
+ BGI
0
Source: Lipper, a Thomson Reuters company, FMI FundFile.
European domiciled mutual fund sales (excluding money market funds) in 2009.
14
Income and cost metrics for the Group
2008
2009
Compensation costs: operating revenues
45%
49%
Bonus: pre-bonus Asset Management and
Private Banking profit
36%
45%
Group cost: operating revenues
73%
79%
Return on average capital (pre-tax)*
7%
8%
Return on average capital (post-tax)*
4%
6%
Before exceptional items, except for *
15
– 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
– 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
Net revenue and margins – Asset Management
Asset Management net revenue £679.2 million
(2008: £748.7 million)
Q4 2008
Q4 2009
FY 2008
FY 2009
AM net revenue - £m
171.2
229.1
748.7
679.2
Average AM FUM - £bn
101.1
131.3
113.9
109.5
AM net revenue on average AM FUM
68bps
70bps
66bps
62bps
33.3
27.8
50.7
34.5
AM Performance fees on average AM FUM
13bps
8bps
4bps
3bps
AM costs - £m
124.6
161.1
518.6
500.3
AM costs on average AM FUM
49bps
49bps
46bps
46bps
46.6
68.0
230.1
178.9
18bps
21bps
20bps
16bps
AM performance fees - £m
AM operating profit - £m
AM operating profit on average AM FUM
All amounts are before exceptional items
16
Net revenue margin quarterly progression
Excluding performance fees
104
101
100
92
92
81
61
64
Q1 2008
63
66
66
Q3 2008
Asset Management
17
81
70
55
Q2 2008
81
58
Q4 2008
55
59
Q1 2009
Private Banking
60
62
Q2 2009
59
61
Q3 2009
Combined
61
63
Q4 2009
Total costs
£m
210.4
254.0
224.4
224.1
220.8
149.3
169.9
2008
2009
197.1
174.5
195.4
172.8
184.4
137.0
160.8
2005
2006
Variable staff costs
2008 & 2009 amounts are before exceptional items
18
207.7
2007
Fixed staff costs
Non-staff costs
Compensation costs: operating revenues
51%
47%
2005
2006
49%
46%
2007
Total Group compensation costs divided by Asset Management and Private Banking net revenues
19
45%
2008
2009
Bonus: pre-bonus Asset Management and Private Banking profit
45%
42%
41%
41%
36%
2005
20
2006
2007
2008
2009
Asset Management net new business by channel
£bn
9.6
8.8
4.9
3.8
(3.8)
(5.9)
(8.0)
(10.6)
(6.2)
2005
2006
2007
Institutional
21
2008
Intermediary
2009
Group cost: operating revenue ratio
80%
79%
74%
2005
2006
71%
73%
2007
2008
Total Group costs divided by Asset Management and Private Banking net revenue
2005 uses underlying profit adjusted for £20.4m gain on discontinued outsourcing project
22
2009
Headcount
2,891
2,834
2,609
31 Dec 07
23
31 Dec 08
31 Dec 09
Income statement progression
Asset Management profit before tax
£m
Q1
2008
Q2
2008
Q3
2008
Q4
2008
Q1
2009
Q2
2009
Q3
2009
Q4
2009
Asset Management income
196.7
208.0
188.1
175.6
130.7
152.8
177.5
231.3
(130.5)
(136.1)
(127.4)
(124.6)
(103.1)
(114.1)
(122.2)
(160.9)
Asset Management
exceptionals
(0.6)
(0.8)
(1.6)
(15.7)
(6.7)
(5.5)
(1.3)
(3.8)
Asset Management profit
65.6
71.1
59.1
35.3
20.9
33.2
54.0
66.6
Asset Management costs
24
Income statement progression
Private Banking and Group profit before tax
£m
Q1
2008
Q2
2008
Q3
2008
Q4
2008
Q1
2009
Q2
2009
Q3
2009
Q4
2009
Private Banking income
27.5
28.6
29.0
26.2
26.4
22.8
23.6
24.9
(16.6)
(17.2)
(17.4)
(20.4)
(18.1)
(16.2)
(17.3)
(26.0)
-
-
-
(1.5)
-
(0.4)
-
0.4
Private Banking profit
10.9
11.4
11.6
4.3
8.3
6.2
6.3
(0.7)
Group profit before
exceptionals
0.8
12.1
(0.8)
(11.1)
0.2
(4.5)
(3.8)
(3.8)
Group exceptionals
(35.1)
(1.1)
8.1
(119.1)
(17.2)
(10.8)
(12.9)
(4.5)
Group (loss)/profit
(34.3)
11.0
7.3
(130.2)
(17.0)
(15.3)
(16.7)
(8.3)
Private Banking costs
Private Banking
exceptionals
25
Balance sheet
£m
31 Dec 2008
31 Dec 2009
Intangible assets including goodwill
163.5
141.9
Other non-current assets
704.5
768.6
3,489.1
3,670.1
2.0
-
Assets backing unit-linked liabilities
3,714.3
5,708.0
Total assets
8,073.4
10,288.6
Total equity*
1,632.2
1,649.0
316.9
566.6
Current liabilities
2,410.0
2,365.0
Unit-linked liabilities
3,714.3
5,708.0
Total equity and liabilities
8,073.4
10,288.6
Current assets
Non-current assets held for sale
Non-current liabilities
*Includes minority interests (Dec 2008: £0.3m; Dec 2009: £0.6m)
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Group capital
£m
31 Dec 2008
31 Dec 2009
Operating capital
733
590
Cash and cash equivalents
Liquid funds
Fixed income
Third party hedge funds
Seed capital
Private equity
Other
Group investment capital
310
118
105
53
252
58
3
899
276
532
19
141
90
1
1,059
1,632
1,649
Total capital
27
Movement in capital
£m
Opening balance
1,632.2
Profit before tax
137.5
Tax
Dividends
1.3
(84.9)
Other transactions with equity holders
21.3
Net gains on AFS financial assets and amounts recycled through the income statement
58.2
Net actuarial losses on defined benefit pension schemes
(69.6)
Exchange differences
(47.0)
Closing balance
28
2009
1,649.0
Private Equity interests
Schroders plc
Investments
Carried interest
(Total £72m)
(Total £18m)
SVG Capital plc
£18m
Funds I + II
Quoted Investment Trust
SVIL
£16m
Co-investment vehicle
GP & LP Interests
£8m
Permira and other funds
Fund of Funds I, II, III, IV
£24m
Stand-alone portfolio
Other
29
Permira
£6m
Other SV funds
US, Canada, Japan, Sapphire
Life Sciences, Asia Pacific
2010: what products are we targeting?
Managing switches, anticipating the next move by discretionary clients
GOVERNMENT
DEBT
CORPORATE CREDIT
HYBRID
Schroder Products
EQUITY
Specialist
Equity
Equity
Yield / Dividend
Convertibles,
Global High Yield
Multi strategy
credit
Short-term
Govt Bond
European Yield and Global Yield,
Income Maximiser
Global Convertible, Asian
Convertible
Strategic Bond, Global High
Yield
Euro Government Bond
Liquidity
Euro Liquidity, US Dollar Liquidity
Dynamic multi-asset
Alternatives
30
European, UK, US, Asian, Emerging
Markets, Global, QEP
Euro Bond, Euro Corporate Bond, UK
Corporate Bond, Global Bond,
Euro Short Term Bond, European
Bond, Global Inflation Linked
Corporate Bond
Source: Schroders
Thematic, Asian Equity TR, US
SMID, Alpha +
Pension Plus, Global Balanced, DGF
GAIA, Property, EMD, EED
2010: what products are we targeting?
Anticipating recovery in advisory / retail demand
GOVERNMENT
DEBT
CORPORATE CREDIT
HYBRID
Schroder Products
EQUITY
Specialist
Equity
Equity
Yield / Dividend
Convertibles,
Global High Yield
Multi strategy
credit
Corporate Bond
Short-term
Govt Bond
Global Convertible, Asian Convertible
Strategic Bond, Global High Yield
Euro Bond, Euro Corporate Bond,
Global Bond, UK Corporate
Bond, Euro Short Term Bond,
European Bond,
Global Inflation Linked
Euro Liquidity, US Dollar Liquidity
Dynamic multi-asset
Alternatives
31
European, UK, US, Asian,
Emerging Markets, Global, QEP
European Yield and Global
Yield, UK Income, Income
Maximiser
Euro Government Bond
Liquidity
Source: Schroders
Thematic, Asian Equity TR, US
SMID, Alpha +
Pension Plus, Global Balanced,
DGF
GAIA, Property, EMD, EED
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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