Slide 1: Schroders 2015 Results
Schroders 2015 Results 3 March 2016 Michael Dobson Chief Executive
Slide 2: 2015: overview
2015: overview Strong results in a challenging market Net revenue £1,658.5m (2014: £1,549.5m) Profit before tax and exceptional items £609.7m (2014: £565.2m) Profit before tax £589.0m (2014: £517.1m) Full year dividend up 12% to 87.0 pence per share (2014: 78.0 pence per share) 72% of asse
Slide 3: Institutional
Institutional Assets under management: £181.0bn (2014: £171.1bn) £32.0bn of new mandates Net inflows £8.8bn Strong performance in Asia Pacific, UK Year of transition in US Significant new business in Fixed Income and Multi-asset 2 2015 Annual Results | March 2016
Slide 4: Intermediary
Intermediary Assets under management: £100.9bn (2014: £97.8bn) Strong flows in H1, challenging markets in H2 Net inflows £4.3bn Significant flows in Asia Pacific, continental Europe Diversified across Fixed Income, Multi-asset, Equities Active management of product range: 47 fund launches
Slide 5: Equities
Equities Assets under management: £129.9bn (2014: £129.6bn) £1.7bn of net inflows in core equities Strong flows in Japanese and European equities Small inflows in Emerging Markets Outflows in UK equities £2.5bn of outflows in £20.4bn Quant business 4 2015 Annual Results | March 2016
Slide 6: Multi-asset
Multi-asset Assets under management: £78.1bn (2014: £72.0bn) Net new business £6.2bn Diversified across Risk Mitigation Risk Controlled Growth Income Inflation Protection New initiatives in liquid alternatives 5 2015 Annual Results | March 2016
Slide 7: Fixed Income
Fixed Income Assets under management: £60.3bn (2014: £51.1bn) Net new business £9.1bn Major flows in US/European Bond Beta Global Multi-Sector UK and European Credit EMD Relative Return Asian Bonds New fund launches Infrastructure Debt capability Exploring initiatives in ABS/MBS, loans 6 2
Slide 8: Wealth Management
Wealth Management Assets under management: £31.6bn (2014: £31.1bn) Net revenues £207.2m (2014: £213.5m) 2014 included £9.0m of one off revenues Profit before tax and exceptional items £61.3m (2014: £61.7m) 70% cost income ratio Net inflows in UK £0.2bn slowdown in H2 private clients and char
Slide 9: Associates, joint ventures and partnerships
Associates, joint ventures and partnerships Good progress in 2015 Strategy of building businesses with high quality partners To enter new markets China: Bank of Communications Schroders India: Axis Asset Management Company To complement existing presence Japan: Nippon Life To extend investme
Slide 10: Schroders 2015 Annual Results
Schroders 2015 Annual Results 3 March 2016 Richard Keers Chief Financial Officer
Slide 11: Financial highlights
Financial highlights Net revenue, including performance fees (£m) Performance fees Profit before tax (£m) Exceptional items 1,800 1,658.5 1,549.5 36.3 700 609.7 1,600 1,427.5 565.2 37.1 600 20.7 1,400 80.6 507.8 48.1 1,151.2 500 1,200 28.5 60.3 1,000 400 360.0 800 300 600 200 400 200 100 1,122.7 1,3
Slide 12: Net revenue – driven by organic growth
Net revenue – driven by organic growth Net revenue up 7% to £1,659m £m Associates Net revenue Markets and FX and JVs Other (new basis) Net revenue Associates Net revenue Net new business 11 (8) 1,659 (new basis) 38 (old basis) and JVs Net finance income 68 11 1,550 Wealth 1,528 11 Management Wealth
Slide 13: Asset Management net operating revenues
Asset Management net operating revenues Asset Management net operating revenue margins, excluding performance fees, at 49 bps £m 800 764.7 687.8 716.4 9.5 45.1 6.4 700 628.7 550.9 571.7 26.2 600 27.8 35.1 500 400 755.2 642.7 710.0 300 602.5 515.8 543.9 200 100 0 2013 2014 2015 Institutional Intermed
Slide 14: Wealth Management net operating revenues
Wealth Management net operating revenues Wealth Management net operating revenue margins, excluding performance fees, at 65 bps £m 250 206.8 207.3 2.9 0.6 200 14.6 15.5 34.5 36.0 149.6 150 0.4 13.6 25.9 100 154.8 155.2 50 109.7 0 2013 2014 2015 Management fees Transaction fees Net banking interest i
Slide 15: Operating expenses
Operating expenses Cost control in line with projections 2015 AM £m 2014 & Group WM Total 2015 versus 2014 Compensation costs 687.8 637.2 96.8 734.0 +7% Non-compensation costs 296.5 265.7 49.1 314.8 +6% Operating expenses (excluding 984.3 902.9 145.9 1,048.8 +7% exceptional items) Exceptional expens
Slide 16: Profit before tax and exceptional items
Profit before tax and exceptional items Up 8% to £609.7m reflecting strong business performance £m Compensation Net revenue costs Profit before tax 109.0 (46.2) and exceptional Profit before tax Other costs items (18.3) Tax and exceptional 609.7 (126.3) items 565.2 Wealth Profit after tax and Wealth
Slide 17: Analysis of Group Capital
Analysis of Group Capital Increase of £258m during 2015 to £2,796m £m 2014 2015 Regulatory capital 673 653 Other operating capital 284 253 Investment capital* 725 942 Seed capital 163 229 Other items** 693 719 Statutory Group capital 2,538 2,796 ** Includes RWC Partners Limited and Schroder Ventures
Slide 18: Schroders 2015 Results
Schroders 2015 Results 3 March 2016 Michael Dobson Chief Executive
Slide 19: Outlook
Outlook Resilience through a globally diversified business Good new business flows in Institutional Market volatility reducing retail investor demand Many long-term growth opportunities Continuity and stability through succession plans 18 2015 Annual Results | March 2016
Slide 20: Forward-looking statement
Forward-looking statement This presentation 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 are bas