Slide 1: Half-year results 2019
Half-year results 2019 Presentation 1 August 2019 Peter Harrison Group Chief Executive
Slide 2: Strategic focus for long-term growth
Strategic focus for long-term growth Peter Harrison Group Chief Executive Selective acquisitions Continued investment in growth areas aligned to strategic objectives Good progress in Subdued investor partnership with Lloyds demand in “risk off” environment 1 Half-year results 2019
Slide 3: H1 2019 results summary
H1 2019 H1 2018 Change Net income1 £1,032.6m £1,086.1m (5)% Profit before tax1 £340.4m £397.1m (14)% AUM £444.4bn £435.7bn 2% Net new business £(1.2)bn £1.2bn – Basic EPS1 98.6p 114.0p (14)% Total dividend per share 35.0p 35.0p – Peter Harrison Group Chief Executive Continued investment Selective ac
Slide 4: Net flows by channel
Net flows by channel £bn 15 10 5 0 (5) (10) (15) 2015 2016 2017 2018 H1 2019 Institutional Intermediary Wealth Management Continued subdued investor demand Positive net new Ongoing “risk off” Continued momentum business from environment across in Wealth Management Institutional clients Intermediary
Slide 5: Net flows by region
Net flows by region UK Institutional Despite macro demand for concerns, positive Multi-asset and net flows £bn Fixed Income 4 3 Asia Pacific Partly offset by Outflows driven by 2 clients in mainland Australian China, Singapore 1 redemptions & Taiwan 0 Americas (1) Small Institutional Net inflows int
Slide 6: Net flows by asset class
Net flows by asset class Fixed Income Positive net new Institutional flows into US & convertibles, business across both Intermediary for EMD channels and European credit £bn Multi-asset 4 Led by UK Institutional Continued demand for clients into LDI and 2 Multi-asset strategies risk mitigation 0 Wea
Slide 7: Richard Keers, Chief Financial Officer
Richard Keers Chief Financial Officer 6
Slide 8: Profit before tax and exceptional items
Profit before tax and exceptional items £m Profit before Profit before tax and Compensation Non-compensation tax and exceptional items Net income costs exceptional costs Exceptional items 397.1 (53.5) items 18.6 (21.8) 48.7 340.4 (21.1) Wealth 43.2 Wealth Management Management Asset Asset Profit bef
Slide 9: Net income
Net income Net operating revenue £(58)m £m Performance fees and Markets and FX net carried interest £(31)m £(8)m Net new Net carried Performance Other Net income Markets business Acquisitions income FX interest fees Net income 1,086 (42) (23) 4 5 11 6 (14) 1,033 144 144 Wealth Wealth Management Mana
Slide 10: Asset Management net operating revenue
Asset Management net operating revenue Net new business and annualised net new revenue £m (NNB and ANNR) 1,000 NNB ANNR 911.1 877.7 Net new business 900 852.9 £bn £m 35.4 19.2 Annualised net new revenue 2018 - 2019 27.3 6 60 800 700 4 40 600 2 20 0 0 500 875.7 858.5 825.6 (2) (20) 400 (4) (40) 300 (
Slide 11: Wealth Management net operating revenue
Wealth Management net operating revenue £m Net new business and annualised net new revenue (NNB and ANNR) NNB ANNR 160 139.9 142.0 140.4 £bn Net new business £m 140 0.1 Annualised net new revenue 2018 - 2019 0.3 14.0 0.1 1.2 12 12.8 12.7 120 20.6 17.9 18.3 1.0 10 100 0.8 8 80 0.6 6 60 110.0 109.3 10
Slide 12: Operating expenses
Operating expenses £m 800 706.6 Total 711.3 44.0% 700 17.6 19.1 compensation 600 ratio H1 2018: 43.5% 217.0 238.8 500 400 [X] 689.0 692.2 300 472.0 453.4 200 Ratio of total cost to net 67% 100 0 H1 2018 H1 2019 income H1 2018: 63% Exceptional items Non-compensation costs Compensation costs 11 Half-y
Slide 13: Group capital
Group capital £m 4,000 4,000 3,621 3,576 3,621 3,576 3,000 1,164 1,242 1,341 1,205 3,000 216 96 2,000 535 567 2,000 1,126 1,084 465 474 165 176 1,000 1,000 1,115 1,154 1,115 1,154 0 0 31 December 30 June 31 December 30 June 2018 2019 2018 2019 Capital base Capital allocation Capital surplus Working
Slide 14: Summary
Summary Net income1 -5% to £1,032.6m £m 1,086.1 1,032.6 Profit before tax and exceptional items -14% to £340.4m 397.1 Basic EPS before 340.4 exceptional items -14% to 98.6p H1 2018 H1 2019 H1 2018 H1 2019 Interim dividend unchanged at Net income1 Profit before tax and exceptional items 35.0p 1Before
Slide 15: Peter Harrison, Group Chief Executive
Peter Harrison Group Chief Executive
Slide 16: Developments to reinforce long-term strategy
Developments to reinforce long-term strategy Closer proximity Expand Grow Private to consumer core business Assets & Alternatives Thirdrock Real Estate: Scottish Widows mandate Blue Asset Management Impact investing: Schroders Personal Wealth Progress in China BlueOrchard 15 Half-year results 2019
Slide 17: Outlook
Outlook Focused strategy for long-term growth Progress against strategic objectives to drive future growth Strong pipeline despite environment of limited investor demand 16 Half-year results 2019
Slide 18: Forward looking statements
Forward looking statements 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 the