Schroders Plc · LSE:SDR
Schroders — H1 2015 Earnings Presentation
17 slides from Schroders's earnings presentation, Jul 30, 2015
Slide 1: 2015 Half-Year Results
Schroders 2015 Half-Year Results 30 July 2015 Michael Dobson Chief Executive
Slide 2: H1 2015 highlights
29/07/2015 20:19:13 H1 2015 Net revenue £806.2m (H1 2014: £728.6m) Profit before tax and exceptional items £305.7m (H1 2014: £261.5m) Net inflows £8.8bn (H1 2014: £4.8bn) Assets under management £309.9bn (30 June 2014: £271.5bn) Interim dividend 29 pence per share (interim dividend 2014: 2
Slide 3: Asset Management
29/07/2015 20:19:13 Asset Management Diversified growth £bn Net revenue £694.3m (H1 2014: £621.0m) 12 10 Profit before tax and exceptional items £271.0m (H1 2014: £235.1m) 8 77% of assets outperforming over three years 6 4 Net inflows £8.4bn (H1 2014: £4.5bn) 2 Significant growth in Asia 0
Slide 4: Institutional
29/07/2015 20:19:13 Institutional Assets under management £175.5bn (30 June 2014: £148.0bn) £bn £16.7bn of new mandates (H1 2014: £11.4bn) 5 4 Net inflows £3.6bn (H1 2014: £0.7bn) 3 Strong performance in Japan, China 2 Net inflows in Global and US fixed income, 1 multi-asset strategies, Japa
Slide 5: Intermediary
29/07/2015 20:19:13 Intermediary Assets under management £102.4bn (30 June 2014: £92.8bn) £bn Gross sales £28.6bn (H1 2014: £23.3bn) 7 6 Net inflows £4.8bn (H1 2014: £3.8bn) 5 4 Significant inflows in Asia and Europe 3 Outflows in UK 2 1 Diversified flows across European bonds, Global, Jap
Slide 6: Wealth Management
29/07/2015 20:19:13 Wealth Management Assets under management: £32.0bn (30 June 2014: £30.7bn) AUM by client size Net revenue £105.5m (H1 2014: £100.5m) Profit before tax and exceptional items £30.0m (H1 2014: £26.3m) Net inflows £0.4bn Differentiated proposition for UK market Repositionin
Slide 7: 2015 Half-Year Results: Richard Keers, Chief Financial Officer
Schroders 2015 Half-Year Results 30 July 2015 Richard Keers Chief Financial Officer
Slide 8: Financial highlights
Financial highlights Net revenue, including performance fees (£m) Profit before tax (£m) Exceptional items (£m) 900 350 806.2 5.9 305.7 800 728.6 300 700 645.1 8.4 261.5 15.4 250 228.0 600 11.8 6.3 27.6 500 200 400 150 300 100 200 100 50 633.3 720.2 800.3 221.7 233.9 290.3 0 0 H1 2013 H1 2014 H1 201
Slide 9: Net revenue – driven by investment returns and organic growth
Net revenue – driven by investment returns and organic growth Net revenue up 11% to £806m £m Markets & FX Performance fees Other Net revenue Net new business 44 (2) (4) 806.2 Net revenue 40 728.6 Wealth Management Wealth Management 106 101 Asset Asset Management Management 694 621 Group segment Grou
Slide 10: Asset Management net revenues
Asset Management net revenues Net revenue margins, excluding performance fees, at 49 bps £m 450 383.9 400 373.5 0.3 347.2 4.4 350 2.0 310.4 309.0 300 5.6 273.8 21.5 6.3 250 200 383.6 369.1 345.2 150 287.5 304.8 267.5 100 50 0 H1 2014 H2 2014 H1 2015 Institutional Intermediary Performance fees 9 2015
Slide 11: Wealth Management net revenues
Wealth Management net revenues Net revenue margins at 66 bps £m 120 113.0 105.5 100.5 9.0 100 8.1 7.4 6.5 17.0 18.1 20.0 80 60 40 77.0 77.8 78.1 20 0 H1 2014 H2 2014 H1 2015 Management fees Transaction fees Net banking interest income Net loan loss recoveries and performance fees 10 2015 Half-Year R
Slide 12: Operating expenses
Operating expenses Cost control in line with projections H1 2015 AM H1 2015 versus £m H1 2014 H2 2014 & Group WM Total H1 2014 Compensation costs 340.9 346.9 317.2 48.7 365.9 +7% Non-compensation costs 137.2 159.3 128.0 26.8 154.8 +13% Operating expenses (excl. 478.1 506.2 445.2 75.5 520.7 +9% excep
Slide 13: Profit before tax and exceptional items
Profit before tax and exceptional items Up 17% to £305.7m reflecting strong business performance £m Compensation costs Net revenue (25) Net finance Profit before tax 78 Other costs income and and exceptional (18) associates items Tax Profit before tax 9 305.7 (64) Profit before and exceptional items
Slide 14: Movement in Group capital
Movement in Group capital Increase of £72m since 31 December 2014 £m Profit after tax Dividends 229 (147) Foreign exchange Other (12) 2 Group Group Capital Capital H2 2014 H1 2015 2,538 2,610 31 December 2014 30 June 2015 13 2015 Half-Year Results | July 2015
Slide 15: Analysis of Group Capital
Analysis of Group Capital Increase of £72m since 31 December 2014 H1 H2 H1 £m 2014 2014 2015 Regulatory capital 617 673 695 Other operating capital 437 284 116 Investment capital* 573 725 957 Seed capital* 182 163 154 Other items** 514 693 688 Statutory Group capital 2,323 2,538 2,610 ** Not include
Slide 16: Outlook
Outlook Solid pipeline of new business in Institutional Uncertainties around eurozone, China and US interest rates affecting investor demand Building scale and improving efficiencies to offset declining fee margins Investing in organic growth Diversified business model provides long-term g
Slide 17: 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