Slide 1: Schroders 2021 Half-Year Results
Schroders 2021 Half-Year Results Peter Harrison Group Chief Executive 29 July 2021
Slide 2: Diversified business model proving beneficial
Diversified business model proving beneficial H1 2021 H1 2020 Change Net income1 £1,244.5mn £1,003.9mn +24% Ratio of total costs to net income1 67% 70% - Profit before tax1 £407.5mn £306.2mn +33% AUM including JVs and associates £700.4bn £610.8bn +15% Group net new business incl. JVs £17.9bn £19.9bn
Slide 3: Delivering strong investment performance for our clients
Delivering strong investment performance for our clients 87% outperforming over 1 years 1 year 3 years 5 years Equities 84% 75% 84% Fixed Income 97% 96% 96% 75% outperforming over 3 years Multi Asset 90% 57% 73% Portfolio Solutions & Quant 89% 68% 66% Private Assets & Alternatives 79% 70% 80% Wealth
Slide 4: AUM growth supported by positive net flows and investment returns
AUM growth supported by positive net flows and investment returns Group AUM up Historic AUM development 6% £bn vs FY 2020 800 CAGR 700.4 10% 663.0 98.0 600 569.4 88.6 497.2 69.2 453.6 467.2 61.5 67.6 60.0 400 574.4 602.4 500.2 JVs & Associates up 200 435.7 407.2 386.0 11% 0 vs FY 2020 2016 2017 2018
Slide 5: Net new business benefitting from globally diversified distribution footprint
Net new business is benefitting from our globally diversified distribution footprint Net new business split by region £bn Asia Pacific incl. JVs & associates 7.3 EMEA 5.3 North America incl. JVs & associates 4.6 Latin America 1.0 UK (0.3) UK excl. SWIFT 0.5 (1.0) 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0
Slide 6: Strong performance from joint ventures and associates
Strong performance from joint ventures and associates Axis’ market share now Annual assets and cumulative net flows £bn £bn 6.1% 120 40 AUM CAGR 8.4% 35 100 30 80 25 60 20 15 40 Good progress on 10 20 5 WMC JV 0 0 establishment in China 2016 2017 2018 2019 2020 H1-2021 AUM Cumulative net new busines
Slide 7: Sustained flow momentum into higher margin products
Sustained flow momentum into higher margin products Net new business split by business area £bn 8 7.4 6.4 6 4 2.5 2 1.0 1.0 0 (0.4) (2) Wealth Management Private Assets & Alternatives Solutions Mutual Funds Institutional Joint ventures and associates £17.9bn £10.5bn of net new business of net new bu
Slide 8: Wealth Management net operating revenues up 13%
Closer proximity to consumers Net new business of £1.0bn Wealth Management net operating in H1 2021 revenues up 13% Annual assets and cumulative net flows £bn £bn 90 25 80 Cazenove Capital: £0.6bn 20 70 Benchmark Capital: £0.3bn 60 15 SPW: £0.1bn 50 10 40 30 5 20 Successful integration of 0 10 Sanda
Slide 9: Private Assets & Alternatives net operating revenues up 11%
Expand Private Assets & Alternatives Net new business of Private Assets & Alternatives net £2.5 billion operating revenues up 11% Annual assets and cumulative net flows £bn £bn 60 12 Schroders Capital generated 10 50 £2.9bn of NNB 8 £2.7bn of dry powder 40 (not included in AUM) 6 30 4 20 2 10 0 Cont
Slide 10: Built a highly profitable Solutions business
Grow Asset Management Solutions AUM reached Built a highly profitable Solutions business £193.6 billion in H1 2021 Annual assets and cumulative net flows £bn £bn 250 100 SWIFT outflows of 200 80 £0.8 billion reflecting maturity of book 150 60 100 40 50 20 Net operating revenues increased by 0 0 2015
Slide 11: Positive momentum across our Mutual Fund business
Grow Asset Management Net new business of Positive momentum across our £6.4 billion in H1 2021 Mutual Fund business H1 2021 net new business by geography £bn 4 Flows concentrated into 3.1 higher revenue 3 margin equity products 2 1.9 1 0.7 0.7 Positive flow momentum 0 across all regions UK Asia Paci
Slide 12: Institutional net new business turned positive
Grow Asset Management Net new business of Institutional net new business turned positive £1.0 billion in H1 2021 H1 2021 net new business by geography £bn 3.0 Driven by 2.1 Fixed Income 2.0 demand 1.0 from US-based investors 1.0 0.0 (0.6) (1.0) Solid pipeline going into H2 2021 (1.5) (2.0) UK Asia P
Slide 13: Schroders 2021 Half-Year Results (CFO)
Schroders 2021 Half-Year Results Richard Keers Chief Financial Officer 29 July 2021
Slide 14: Profit before tax
Profit before tax Net Compensation £m income costs 240.6 (122.0) Non- compensation Profit before costs tax and Exceptional exceptional items (17.3) Profit before tax Profit before items (33.6) and after tax and exceptional items exceptional items 407.5 Profit after 373.9 306.2 tax £304.6 H1 2020 H1
Slide 15: Net income
Net income £m Associates Segmental Performance Net and Other net income fees and net Real estate Acquisitions Group Markets, Banking transaction investment Joint income SPW Net new carried 1,273.8 net income FX and interest gains ventures* adjustment Segmental business interest fees (1.6) mix 50.3 1
Slide 16: Wealth Management
Wealth Management Net operating revenue margin1 Net new business and annualised net Net operating revenue* new revenue (NNB and ANNR) 56bps £m NNB ANNR £bn £m H1 2020: 57bps 204.3 200 186.5 5.3 0.1 1 20 1Excluding performance fees. 180.4 5.5 0.6 21.2 8.6 0.5 21.1 21.4 150 10 100 177.7 159.3 0 149.9
Slide 17: Private Assets & Alternatives
Private Assets & Alternatives Net operating revenue margin1 Net operating revenue Net new business and annualised net new revenue (NNB and ANNR) 67bps £m NNB ANNR £bn £m H1 2020: 64bps 156.7 160 151.7 2 20 1Including performance fees and net carried 141.6 8.1 interest. 14.1 1.4 3.2 2.3 0.2 120 1 10
Slide 18: Solutions
Solutions Net operating revenue margin1 Net new business and annualised net Net operating revenue new revenue (NNB and ANNR) 14bps £m NNB ANNR £bn £m H1 2020: 15bps 140 132.0 131.6 121.0 0.4 40 20 1Including performance fees. 120 30 15 100 20 10 80 60 10 5 40 0 0 Average AUM 20 (10) (5) £191.7bn 0 Q
Slide 19: Mutual Funds
Mutual Funds Net operating revenue margin1 Net new business and annualised net Net operating revenue new revenue (NNB and ANNR) 74bps £m NNB ANNR £bn £m H1 2020: 71bps 500 5 50 1Excluding performance fees. 401.9 3 30 356.0 0.4 330.4 10.8 1 10 0.1 250 (1) (10) 401.5 (3) (30) 345.2 330.3 Average AUM (
Slide 20: Institutional
Institutional Net operating revenue margin1 Net operating revenue Net new business and annualised net new revenue (NNB and ANNR) 31bps £m NNB ANNR £bn £m H1 2020: 31bps 300 287.6 284.0 2 20 1Excluding performance fees. 28.4 57.3 226.9 1 10 16.9 200 0 0 255.6 230.3 (1) (10) 100 210.0 Average AUM (2)
Slide 21: Net income
Net income £m Associates Segmental Performance Net and Other net income fees and net Real estate Acquisitions Group Markets, Banking transaction investment Joint income SPW Net new carried 1,273.8 net income FX and interest gains ventures* adjustment Segmental business interest fees (1.6) mix 50.3 1
Slide 22: Associates and Joint Ventures
Associates and Joint Ventures* Assets under management H1 2021 BoCom Axis Other Total £98.0bn Total Revenue (£m) 181.3 36.2 30.0 247.5 Total Profit (£m) 108.7 16.4 6.1 131.2 H1 2020: £85.0bn Group's share of profit (£m) 32.6 4.1 1.7 38.4 Revenue Margin 42bps1 H1 2020 BoCom Axis Other Total Total Rev
Slide 23: Net income
Net income £m Associates Segmental Performance Net and Other net income fees and net Real estate Acquisitions Group Markets, Banking transaction investment Joint income SPW Net new carried 1,273.8 net income FX and interest gains ventures* adjustment Segmental business interest fees (1.6) mix 50.3 1
Slide 24: Operating expenses
Operating expenses Total compensation ratio Operating expenses £m Average AUM* and non-compensation costs £bn bps 46% H1 2020: 45% 1,000 700 12 870.6 33.6 585.3 600 11.2 800 723.8 520.8 26.1 10.6 11 264.8 500 10.3 433.1 441.8 410.8 600 247.5 400 346.6 10 300 9.4 400 572.2 200 9.6 9 Ratio of total co
Slide 25: Composition of Group Capital
Composition of Group Capital Capital base Capital allocation £m £m 4,086 4,068 4,086 4,068 4,000 4,000 1,231 1,347 1,548 1,601 3,000 3,000 216 101 612 589 2,000 1,130 1,164 2,000 320 324 97 98 1,000 1,000 1,509 1,456 1,509 1,456 0 0 31 December 2020 30 June 2021 31 December 2020 30 June 2021 Capital
Slide 26: Summary
Summary 2 1 Profit after tax Profit before tax 407.5 306.2 304.6 222.7 H1 2020 H1 2021 H1 2020 H1 2021 1Before exceptional items. 2After exceptional items. 2 Basic EPS Interim dividend increased to +37% to 107.7p 37p 26
Slide 27: Outlook and questions
Schroders Outlook and questions Peter Harrison Group Chief Executive 29 July 2021
Slide 28: Outlook for 2021 and beyond
Outlook for 2021 and beyond Focused strategy, global footprint and diversified business model enable investing for long term growth Building on our leadership position in Invest organically to improve our sustainability, impact and natural capital long-term revenue growth Well positioned to service
Slide 29: Forward looking statement
Forward looking statement These presentation slides may contain forward-looking statements with respect to the financial condition, performance and position, strategy, results of operations and businesses of the Schroders Group. Such statements and forecasts involve risk and uncertainty because they