Slide 1: Half Year Results
HALF YEAR RESULTS 1 August 2024 Peter Harrison Group Chief Executive Richard Oldfield Chief Financial Officer Half Year Results 2024
Slide 2: Half Year Results
HALF YEAR RESULTS 1 August 2024 Peter Harrison Group Chief Executive Half Year Results 2024
Slide 3: Steady growth in assets validates strategic pivot
Steady growth in assets validates strategic pivot Assets under management reached a new Mutual Funds NNB improved throughout H1 high of £773.7 billion and Institutional NNB supported by flows from Solutions mandates Wealth Management performed strongly and Return to asset growth in JVs and associate
Slide 4: Our strategy has provided resilience
Our strategy has provided resilience H1 2023 Change H1 2024 AUM (£bn) 726.1 7% 773.7 Net new business inc. joint ventures Strategic growth areas 0.4 – 3.9 continue to deliver and associates (£bn) Net operating revenue excl. performance fees 1,137.2 (1%) 1,122.2 Mutual Funds NNB improving 4 and net c
Slide 5: Delivering positive client outcomes
Delivering positive client outcomes Uptick in client investment performance figures over one, three and five years 69% 62% 78% 5 outperforming over 1 year outperforming over 3 years outperforming over 5 years Note: Please refer to page 9 of the Half Year 2024 Press Release on our investor relations
Slide 6: Diverse sources of positive flows
Diverse sources of positive flows £3.9 billion of positive flows despite large outflow in Solutions NNB by business area £bn Wealth Management 3.7 Inflows of £3.9 billion in H1 despite impact of Scottish Private Markets Scottish Widows 3.0 Widows outflow Solutions (7.9) (6.2) Return to growth in JVs
Slide 7: Wealth Management performs strongly
Wealth Management performs strongly On track to deliver targets set at Capital Markets Day in June 2023 Wealth Management AUM Wealth Management NNB rate vs peers1 £bn £bn 140 9% Leading advised 7% annualised 9% 8% CAGR 119.5 organic growth rate 8% 120 110.2 7% 7% 101.6 7% 7% 100 98.1 H1 operating pr
Slide 8: A unique Wealth Management offering
A unique Wealth Management offering Strength and breadth of the platform driving continued growth Cazenove Capital Benchmark AUM: £72.7 billion, 223 advisers AUM: £32.6 billion, 1,158 advisers2 UK’s largest charity manager £184 million AUM per associate, Wealth Management has by investment assets1 u
Slide 9: Broad-based growth in Schroders Capital
Broad-based growth in Schroders Capital Seizing opportunities created by structural trends Private Markets AUM development Private Markets NNB by pillar £bn £bn 80 Increased gross fundraising 68.5 to £5.2 billion 70 17% 66.2 CAGR 63.7 17% (H1 23: £4.5 billion)¹ 60 £4.1 billion non-fee earning 50 46.
Slide 10: The launch of Future Growth Capital, a new UK investment manager
The launch of Future Growth Capital, a new UK investment manager New capability for Schroders Capital Cements leadership in the offering multi-private asset democratisation of private assets solutions to DC pension savers with launch of two new LTAFs Strategic partnership with Phoenix Group will unl
Slide 11: Solutions outflows partially offset by new mandate wins
Solutions outflows partially offset by new mandate wins AUM impacted by multi-asset and Scottish Widows outflows Solutions AUM development Solutions NNB £bn £bn Solutions mandate extensions 300 driving NNB into Public and 3% Private Markets CAGR H1 2024 (7.9) 250 228.3 NNB 206.0 209.8 220.8 Successf
Slide 12: Public Markets reflect broader industry rotation
Public Markets reflect broader industry rotation Outflows from regional equities partially offset by positive fixed income NNB Public Markets AUM progression Public Markets NNB progression £bn £bn Hartford funds in top 10% for 160 2.5 active and passive flows in H1 140.1 140.7 140 134.2 1.3 1.5 0.6
Slide 13: Encouraging return to growth in JVs and associates
Encouraging return to growth in JVs and associates NNB of £7.8 billion predominantly from BOCOM FMC JV JVs and associates AUM JVs and associates AUM progression £bn £bn 160 125 4% 2.2 CAGR 140 121.0 Axis AMC has 5% 131.1 120 market share 121.0 120 116.4 102.4 108.2 7.8 116.4 Schroders ranked 5th ove
Slide 14: Innovation in action
Innovation in action Successfully launched Leadership in Increasing uptake Rolled out Benchmark 14 Gen AI Investment democratisation of on-desk AI usage, Adviser app to improve Analyst for private of private assets with many unique use adviser experience and equity team continues with cases across t
Slide 15: Half Year Results
HALF YEAR RESULTS 1 August 2024 Richard Oldfield Chief Financial Officer Half Year Results 2024
Slide 16: Results summary
Results summary Results benefitted from Wealth Management & Private Markets growth H1 2023 H2 2023 H1 2024 Net operating revenue (£m) 1,169.8 1,164.6 1,137.0 Wealth Management and Private Markets continue Net operating income (£m) 1,211.9 1,207.1 1,175.2 to show solid growth Operating expenses (£m)
Slide 17: Net operating income
Net operating income Income impacted by FX, new business mix and performance related fees Net operating income bridge £m 1,300 36 1,212 (21) 1,175 Management fees stable on a 1,200 7 (30) constant currency basis (18) (11) 1,100 NNB movement reflects both 17 the flow impacts from 2023 and 2024 new bu
Slide 18: Wealth Management
Wealth Management Excellent growth despite slower allocations to risk assets as higher rates persist Net operating revenue £m H1 2023 161.6 18.2 30.2 210.0 H2 2023 165.9 14.2 33.1 213.2 Contributed 27% of H1 2024 179.9 18.8 31.2 229.9 Group’s operating profit 0 100 200 Management fees Transaction, p
Slide 19: Asset Management
Asset Management Softening in fee margins principally due to new business mix Net operating revenue by business area £m H1 2023 180.1 133.3 368.9 244.9 32.6 959.8 H2 2023 188.2 127.0 351.5 233.7 51.0 951.4 H1 2024 185.8 128.1 347.7 230.8 14.7 907.1 4% growth in private markets 0 200 400 600 800 1,00
Slide 20: Operating expenses
Operating expenses Disciplined cost focus alongside continued investment in growth initiatives Total operating expenses £m 870.5 887.5 860.2 900 311.7 333.9 315.1 600 Operating expenses down 1% 300 558.8 553.6 545.1 0 H1 2023 H2 2023 H1 2024 2023 efficiency initiatives Compensation costs Non-compens
Slide 21: Group Capital composition
Group Capital composition Capital position with increased flexibility Capital base £m FY 2023 H1 2024 Equity capital base 4,464 4,411 Regulatory deductions1 (2,158) (2,186) Additional financial flexibility and capital diversification 21 Dividend2 (233) (101) through debt issuance Overall regulatory
Slide 22: Profit before tax
Profit before tax Confidence in strategy £m H1 2023 H2 2023 H1 2024 Operating profit 341.4 319.6 315.0 Basic operating EPS 14.7p Central costs (23.4) (29.5) (28.2) H1 2023: 16.8p 22 Net gain on financial instruments and 23.9 31.8 20.5 Basic EPS 12.9p interest income H1 2023: 13.6p Acquisition costs
Slide 23: Outlook
Schroders Outlook
Slide 24: Outlook for 2024 and beyond
Outlook for 2024 and beyond Execution of our Remain focused on Net new business mix Our diversified 24 strategy has enabled us delivering growth in and ongoing pricing business model will to deliver net inflows Wealth Management, pressure has led to enable us to deliver and asset growth Private Mark
Slide 25: Questions
Schroders Questions
Slide 26: Thank you
Schroders Thank you
Slide 27: 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