Schroders 2008 Interim Results trusted heritage advanced thinking Data Pack Contents Funds under management FUM by client domicile Asset Management business flows Challenging market conditions for Retail Focus on high margin products Income and cost metrics for the Group Gross profits and margins – Asset Management Total income Total costs Compensation costs: operating revenues Cost: income ratio Headcount Income statement progression Funds under management diversification Balance sheet Movement in capital Private Equity interests 1 Page 2 4 5 6 7 8 9 10 11 12 13 14 15 16 18 19 20 Funds under management £130.2 billion at end June 2008 Funds under management (£bn) 139.1 130.2 Dec 07 6% decrease due to market movements and net outflows Jun 08 Dec 07 2 51.2 Jun 08 Net outflows of £1.1bn and market movements 73.2 67.6 Dec 07 Retail FUM (£bn) 56.2 Institutional FUM (£bn) Jun 08 Private Banking FUM (£bn) Net outflows of £0.2bn and market movements 11.4 9.7 Dec 07 Jun 08 Inflows of £0.2bn Funds under management £130.2 billion at end June 2008 £bn Institutional Retail Private Banking Total 31 December 2007 73.2 56.2 9.7 139.1 Net flows (1.1) (0.2) 0.2 (1.1) 0.9 - 0.3 1.2 Market movements & other (5.4) (4.8) 1.2* (9.0) 30 June 2008 67.6 51.2 11.4 130.2 Acquisition adjustments Institutional net outflows – Reduced level of outflows at £1.1 billion (H1 2007: £4.1 billion) as Institutional business is successfully repositioned Retail net outflows – Outflows of £0.2 billion in line with industry experience given challenging market conditions and negative investor sentiment (H1 2007: £3.6 billion inflows) 3 *Includes custody related assets in line with industry best practice FUM by client domicile • £79.6 billion funds under management outside the UK UK £50.6bn North America £12.8bn South America £3.3bn Continental Europe £28.4bn Middle East £2.4bn £3.3bn China joint venture 2008 funds under management: Investment by client domicile China joint venture funds under management are not reported within Group funds under management 4 Asia Pacific £32.7bn Asset Management business flows Inflows H1 2007 Outflows Net Institutional 5.7 (9.8) Retail 8.1 Total Asset Management 13.8 £bn 5 Inflows H2 2007 Outflows Inflows H1 2008 Outflows Net Net (4.1) 5.9 (12.4) (6.5) 7.3 (8.4) (1.1) (4.5) 3.6 12.3 (7.1) 5.2 7.6 (7.8) (0.2) (14.3) (0.5) 18.2 (19.5) (1.3) 14.9 (16.2) (1.3) Challenging market conditions for Retail Diversity of Product Range Private Banking 9% Multi-asset 15% Equities 51% Alternatives 14% Fixed Income 11% FUM Data: 30 June 2008, Schroders 6 UK equities European equities Global equities BRIC Asian equities Pacific equities Asia pacific bonds US equities Quantitiative equities Asia Pacific bonds European bonds Global bonds UK bonds US bonds Commodities Emerging market debt Hedge funds Property Multi-asset Private Banking Focus on high margin products Asset Management funds under management and margins • Asset Management margins up 33% since 2005 FUM (£bn) (bps) 140 • 70 Channel diversity 120 • New products in Institutional 60 100 • Alternatives 80 • 50 Performance fees 60 40 40 20 30 H1 2005 H1 2006 Institutional (lhs) 7 H1 2007 Retail (lhs) H1 2008 margin (rhs) Income and cost metrics for the Group H1-07 H1-08 Compensation costs : operating revenues 8 47% 45% – Compensation costs : operating revenues = total Group compensation costs divided by gross profits for the Asset Management and Private Banking business segments Group cost : income ratio 61% 70% – Group cost : income ratio = total Group costs divided by total Group income Group cost : gross profit 64% 75% – Group cost : gross profit = total Group costs divided by total Group gross profits Return on average capital (pre-tax) 25% 16% – Return on average capital (pre-tax) = total Group profit before tax divided by average capital Return on average capital (post-tax) 19% 12% – Return on average capital (post-tax) = total Group profit after tax divided by average capital Gross profit margins – Asset Management Asset Management gross profit £395.5 million (H1 2007: £353.3 million) 9 H1 2007 FY 2007 H1 2008 AM gross profit on average AM FUM 57bps 60bps 65bps Of which: performance fees 2bps 3bps 3bps AM costs on average AM FUM 39bps 41bps 44bps AM operating profit on average AM FUM 18bps 19bps 21bps Total income £mn 471.5 454.6 391.6 326.9 263.8 227.2 H1 2003 H1 2004 H1 2005 H1 2006 H1 2007 Income is the sum of gross profit; net finance income; and share of profit of associates and joint ventures Figures 2003 based on UK GAAP, figures from 2004 onwards based on IFRS 2005 uses underlying income adjusted for £20.4mn gain on discontinued outsourcing project 10 H1 2008 Total costs £mn 318.9 200.0 191.2 H1 2003 H1 2004 223.8 H1 2005 H1 2006 Staff Costs Non-staff costs Figures 2003 based on UK GAAP, figures from 2004 onwards based on IFRS 11 259.3 285.9 H1 2007 H1 2008 Compensation costs: operating revenues 56% 51% 52% 48% 47% 45% H1 2003 H1 2004 H1 2005 H1 2006 H1 2007 Total Group compensation costs divided by gross profits for the Asset Management and Private Banking business segments Figures 2003 based on UK GAAP, figures from 2004 onwards based on IFRS 12 H1 2008 Cost: income ratio 88% 72% 68% 70% 66% 61% H1 2003 H1 2004 H1 2005 H1 2006 Total Group costs divided by total Group income Figures 2003 based on UK GAAP, figures from 2004 onwards based on IFRS 2005 uses underlying profit adjusted for £20.4mn gain on discontinued outsourcing project 13 H1 2007 H1 2008 Headcount 2,998 2,891 2,782 2,637 30 Jun 06 14 2,675 31 Dec 06 30 Jun 07 31 Dec 07 30 Jun 08 Income statement progression Profit before tax 15 £mn Q1 2007 Q2 2007 Q3 2007 Q4 2007 Q1 2008 Q2 2008 Asset Management income 177.3 186.4 198.8 222.9 197.1 208.9 Asset Management costs (114.8) (125.7) (131.6) (146.8) (131.5) (137.8) Asset Management profit 62.5 60.7 67.2 76.1 65.6 71.1 Private Banking profit 7.5 8.4 11.3 14.1 10.9 11.4 Private Equity profit 19.9 16.3 20.2 2.1 2.4 5.0 Group profit 3.3 7.0 (0.6) 16.5 (36.7) 6.0 Profit before tax 93.2 92.4 98.1 108.8 42.2 93.5 Funds under management diversity by channel Funds under management £130.2 billion 30 Jun 2008 31 Dec 2007 7% 9% 52% 53% 40% 39% Institutional 16 Retail Private Banking Funds under management diversity by geography Funds under management £130.2 billion 30 Jun 2008 31 Dec 2007 12% 12% 38% 39% 25% 26% 24% 24% UK Asia Pacific 17 Continental Europe Americas Balance sheet £mn 30 Jun 2007 31 Dec 07 30 Jun 2008 Intangible assets including goodwill 96.3 120.3 155.1 Other non-current assets 795.1 727.3 755.3 2,745.6 3,263.8 3,494.0 65.3 37.5 17.4 Assets backing insurance unit-linked liabilities 2,230.8 2,727.8 3,063.8 Total assets 5,933.1 6,876.7 7,485.6 Total equity* 1,576.0 1,696.2 1,619.4 329.6 332.2 330.0 Current liabilities 1,796.7 2,120.5 2,472.4 Insurance unit-linked liabilities 2,230.8 2,727.8 3,063.8 Total equity and liabilities 5,933.1 6,876.7 7,485.6 Current assets Non-current assets held for sale Non-current liabilities * Includes minority interests (Jun 2008: £2.1mn; Dec 2007: £0.5mn; Jun 2007: £0.4mn) 18 Movement in capital £mn Opening balance 1,695.7 Profit before tax 135.7 Tax and minority interests (35.0) Dividends (59.4) Other transactions with equity holders (89.9) Net decrease in AFS reserve (26.3) Net actuarial losses on defined benefit pension schemes (24.3) Other Closing balance 19 H1-08 20.8 1,617.3 Private Equity interests Schroders plc Investments Carried interest (Total £104mn) (Total £22mn) SVG Capital plc £47mn Funds I + II Quoted Investment Trust SVIL £19mn Co-investment vehicle GP & LP Interests £13mn Permira and other funds Fund of Funds I, II, III, IV £19mn Stand-alone portfolio Other 20 Permira £6mn Other SV funds US, Canada, Japan, Sapphire Life Sciences, Asia Pacific 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 21