Schroders
2009 Interim Results
trusted heritage
advanced thinking
Data Pack
Contents
Funds under management
FUM by client domicile
Currency profile
Funds under management diversification
Asset Management business flows
Focus on high margin products
Income and cost metrics for the Group
Net Revenue and margins – Asset Management
Total income
Total costs
Compensation costs: operating revenues
Cost: income ratio
Headcount
Income statement progression
Balance sheet
Movement in capital
Private Equity interests
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Funds under management
£113.3 billion at June 2009
Funds under management (£bn)
110.2
Dec 08
113.3
Funds under management
are 3% (£3.1bn) above
December 2008 levels.
Jun 09
Intermediary FUM (£bn)
38.9
Dec 08
2
42.4
Jun 09
Institutional FUM (£bn)
Net outflows fell to £0.8bn.
Q2 net inflows of £1.6bn
59.6
59.7
Dec 08
Jun 09
Private Banking FUM (£bn)
Net inflows of £2.5bn. High
levels of inflows in European
Corporate Bonds.
11.7
Dec 08
11.2
Jun 09
Net new business of £0.1bn
Funds under management
£113.3 billion at end June 2009
£bn
Institutional
Intermediary
Private Banking
Total
31 December 2008
59.6
38.9
11.7
110.2
Net flows
(0.8)
2.5
0.1
1.8
Market movements, foreign
exchange impact & other
0.9
1.0
(0.6)
1.3
30 June 2009
59.7
42.4
11.2
113.3
Institutional net outflows
– Reduced level of outflows at £0.8 billion (H1 2008: £1.1 billion) as Institutional business is successfully
repositioned
Intermediary net inflows
– Inflows of £2.5 billion (H1 2008: £0.2 billion outflows) driven by continued low withdrawals coupled with
strong inflows from European investors
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FUM by client domicile
• £69.5 billion funds under management from clients outside the UK
UK
£43.8bn
North
America
£10.6bn
South
America
£3.1bn
Continental
Europe
£26.7bn
Middle
East
£2.0bn
£5.6bn China joint venture
China joint venture funds under management are not reported within Group funds under management
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Asia
Pacific
£27.1bn
Currency profile of Funds under management
Funds under management £113.3 billion
20%
43%
7%
5%
11%
14%
GBP
5
EUR
USD
JPY
CHF
Other
Total funds under management
Funds under management £113.3 billion
By channel
By product
By region
10%
10%
12%
53%
39%
17%
47%
24%
37%
13%
25%
Institutional
Private Banking
Intermediary
UK
Asia Pacific
Continental Europe
Americas
6
13%
Equities
Alternatives
Private Banking
Fixed Income
Multi-asset
Asset Management FUM by channel and product
Intermediary FUM £42.4bn
Institutional FUM £59.7bn
12%
16%
8%
46%
20%
60%
27%
11%
Equities
Multi-asset
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Fixed Income
Alternatives
Asset Management FUM by channel and region
Institutional FUM £59.7bn
Intermediary FUM £42.4bn
7%
18%
26%
44%
17%
39%
28%
21%
UK
Asia Pacific
8
Continental Europe
Americas
Asset Management business flows
H1 2008
£bn
9
H1 2009
Inflows
Outflows
Net
Inflows
Outflows
Net
Institutional
7.3
(8.4)
(1.1)
6.4
(7.2)
(0.8)
Intermediary
7.5
(7.7)
(0.2)
6.2
(3.7)
2.5
Total Asset Management
14.8
(16.1)
(1.3)
12.6
(10.9)
1.7
Focus on high margin products
Asset Management
funds under management and margins
•
Asset Management margins up 18%
since 2005
FUM (£bn)
(bps)
140
•
70
Channel diversity
120
•
60
H1 2009 impacted by sales mix changes
100
•
Strong pipeline base across products
80
50
60
40
40
20
30
H1 2005 H1 2006 H1 2007 H1 2008 H1 2009
Institutional (lhs)
10
Intermediary (lhs)
margin (rhs)
Income and cost metrics for the Group
H1-08 H1-09
Compensation costs : operating revenues
48%
Group cost : income ratio
65%
78%
– Group cost : income ratio = total Group costs divided
by total Group income
Group cost : net revenue
69%
81%
– Group cost : net revenue = total Group costs divided
by total Group net revenue
Return on average capital (pre-tax)*
16%
5%
– Return on average capital (pre-tax) = total Group
profit before tax divided by average capital
Return on average capital (post-tax)*
12%
2%
– Return on average capital (post-tax) = total Group
profit after tax divided by average capital
Before exceptional items, except for *
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45%
– Compensation costs : operating revenues = total
Group compensation costs divided by net revenue
for the Asset Management and Private Banking
business segments
Net revenue margins – Asset Management
Asset Management net revenue £277.4 million
(H1 2008: £394.2 million)
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H1 2008
FY 2008
H1 2009
AM net revenue on average AM FUM
65bps
66bps
58bps
Of which: performance fees
3bps
4bps
1bps
AM costs on average AM FUM
44bps
46bps
45bps
AM operating profit on average AM FUM
21bps
20bps
13bps
Net revenue margin quarterly progression
Excluding performance fees
104
101
100
92
92
81
61
64
Q1 2008
63
66
66
55
Q2 2008
Asset Management
13
70
Q3 2008
58
Q4 2008
Private Banking
55
59
Q1 2009
Combined
60
62
Q2 2009
Total income
£m
491.9
471.5
391.6
345.7
326.9
H1 2005
H1 2006
H1 2007
H1 2008
Income is the sum of net revenue; net finance income; and share of profit of associates and joint ventures
2005 uses underlying income adjusted for £20.4m gain on discontinued outsourcing project
2008 & 2009 figure quoted before exceptional items
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H1 2009
Total costs
£m
318.6
223.8
75.5
285.9
259.3
98.8
93.5
108.1
148.3
165.8
187.1
203.7
H1 2005
H1 2006
H1 2007
H1 2008
Staff Costs
2008 & 2009 figure quoted before exceptional items
15
268.8
114.9
Non-staff costs
160.7
H1 2009
Compensation costs: operating revenues
52%
48%
H1 2005
H1 2006
47%
H1 2007
48%
45%
H1 2008
Total Group compensation costs divided by net revenue for the Asset Management and Private Banking
business segments
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H1 2009
Cost: income ratio
78%
68%
65%
66%
61%
H1 2005
H1 2006
H1 2007
Total Group costs divided by total Group income
2005 uses underlying profit adjusted for £20.4m gain on discontinued outsourcing project
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H1 2008
H1 2009
Headcount
2,998
2,891
2,834
2,782
2,626
30 Jun 07
18
31 Dec 07
30 Jun 08
31 Dec 08
30 Jun 09
Income statement progression
Profit before tax
£m
Q1
2008
Q2
2008
Q3
2008
Q4
2008
Q1
2009
Q2
2009
Asset Management income
196.7
208.0
188.1
175.6
130.7
152.8
(130.5)
(136.1)
(127.4)
(124.6)
(103.1)
(114.1)
Asset Management
exceptionals
(0.6)
(0.8)
(1.6)
(15.7)
(6.7)
(5.5)
Asset Management profit
65.6
71.1
59.1
35.3
20.9
33.2
Private Banking profit
before exceptionals
10.9
11.4
11.6
5.8
8.3
6.6
-
-
-
(1.5)
-
(0.4)
Group profit before
exceptionals
0.8
12.1
(0.8)
(11.1)
0.2
(4.5)
Group exceptionals
(35.1)
(1.1)
8.1
(119.1)
(17.2)
(10.8)
42.2
93.5
78.0
(90.6)
12.2
24.1
Asset Management costs
Private Banking
exceptionals
Profit before tax
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Balance sheet
£m
30 Jun 2008
31 Dec 2008
30 Jun 2009
Intangible assets including goodwill
155.1
163.5
141.3
Other non-current assets
755.3
704.5
903.3
3,494.0
3,489.1
3,257.1
17.4
2.0
0.8
Assets backing unit-linked liabilities
3,063.8
3,234.7
3,718.7
Total assets
7,485.6
7,593.8
8,021.2
Total equity*
1,619.4
1,632.2
1,496.5
330.0
316.9
549.9
Current liabilities
2,472.4
2,410.0
2,256.1
Unit-linked liabilities
3,063.8
3,234.7
3,718.7
Total equity and liabilities
7,485.6
7,593.8
8,021.2
Current assets
Non-current assets held for sale
Non-current liabilities
* Includes minority interests (Jun 2009: £(0.1)m; Dec 2008: £0.3m; Jun 2008: £2.1m)
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Movement in capital
£m
H1 2009
Opening balance
1,631.9
Profit before tax
36.3
Tax and minority interests
4.6
Dividends
Other transactions with equity holders
6.3
Net decrease in AFS reserve
21.5
Net actuarial losses on defined benefit pension schemes
(74.4)
Exchange differences
(74.6)
Other
Closing balance
21
(57.4)
2.4
1,496.6
Private Equity interests
Schroders plc
Investments
Carried interest
(Total £53m)
(Total £15m)
SVG Capital plc
£15m
Funds I + II
Quoted Investment Trust
SVIL
£12m
Co-investment vehicle
GP & LP Interests
£4m
Permira and other funds
Fund of Funds I, II, III, IV
£18m
Stand-alone portfolio
Other
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Permira
£4m
Other SV funds
US, Canada, Japan, Sapphire
Life Sciences, Asia Pacific
Forward-looking statements
These presentation slides may contain certain forward-looking statements with respect to the
financial condition and results of the operations and 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. The 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
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