Slide 1: Schroders 2013 H1 results Data Pack
Schroders 2013 H1 results Data Pack August 2013
Slide 2: Contents
Contents Page Assets under management (AUM) 2 Regional diversification of AUM 3 Gross sales and net inflows 4-5 Currency profile of AUM 6 AUM diversification 7-12 Asset Management business flows 13-15 Net revenue and margins – Asset Management 16 Income and cost metrics for the Group 17 Key performa
Slide 3: Assets under management (AUM)
Assets under management (AUM) £235.7 billion at 30 June 2013 Asset management £bn Institutional Intermediary Private banking Total 31 December 2012 123.7 72.0 16.3 212.0 Net flows 2.1 2.7 (0.3) 4.5 STW 7.1 - - 7.1 Investment returns 6.7 4.5 0.9 12.1 Reported 30 June 2013 139.6 79.2 16.9 235.7 Cazeno
Slide 4: Regional diversification of AUM
Regional diversification of AUM 66% of revenues outside UK UK £81.1bn Continental Europe £43.6bn North America £32.8bn Asia Pacific £64.1bn Middle East £7.3bn South America £6.8bn 3 Schroders 2013 H1 Results | 8 August 2013
Slide 5: Gross sales
Gross sales £bn 20.0 20.0 18.9 17.0 15.0 13.9 13.4 13.3 10.0 5.0 0.0 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Equities Fixed Income Multi-asset EMD, Commodities & Property Private Banking 4 Schroders 2013 H1 Results | 8 August 2013
Slide 6: Net inflows
Net inflows £bn 7 5.6 5 4.1 3 2.6 1.6 1.1 (1.1) 1 -1 -3 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Equities Fixed Income Multi-asset EMD, Commodities & Property Private Banking 5 Schroders 2013 H1 Results | 8 August 2013
Slide 7: Currency profile of AUM
Currency profile of AUM Assets under management £235.7 billion 29% 29% 2% 4% 10% 26% GBP EUR USD JPY CHF Other 6 Schroders 2013 H1 Results | 8 August 2013
Slide 8: Total AUM by channel, region and product
Total AUM by channel, region and product Assets under management £235.7 billion By channel By region* By product 7% 7% 17% 34% 21% 45% 34% 59% 27% 8% 22% 19% UK Equities Institutional Fixed Income Continental Europe** Intermediary EMD, Commodities & Property Asia Pacific Multi-asset Private Banking
Slide 9: Pro forma AUM by channel, region and product
Pro forma AUM by channel, region and product Assets under management £255.8 billion (including Cazenove Capital) By channel By region* By product 12% 15% 12% 40% 20% 43% 54% 25% 34% 7% 20% 18% UK Equities Institutional Fixed Income Continental Europe** Intermediary EMD, Commodities & Property Asia P
Slide 10: Asset Management AUM by channel and product
Asset Management AUM by channel and product Institutional AUM £139.6bn Intermediary AUM £79.2bn 10% 6% 20% 25% 45% 52% 22% 20% Equities Fixed Income Multi-asset EMD, Commodities & Property 9 Schroders 2013 H1 Results | 8 August 2013
Slide 11: Asset Management AUM by channel and product (pro forma)
Asset Management AUM by channel and product Pro forma for Cazenove Capital Institutional AUM £139.6bn Intermediary AUM £86.1bn 10% 6% 19% 25% 45% 54% 21% 20% Equities Fixed Income Multi-asset EMD, Commodities & Property 10 Schroders 2013 H1 Results | 8 August 2013
Slide 12: Asset Management AUM by channel and region
Asset Management AUM by channel and region* Institutional AUM £139.6bn Intermediary AUM £79.2bn 13% 21% 26% 35% 32% 27% 29% 17% UK Continental Europe** Asia Pacific Americas *By client domicile **Including Middle East 11 Schroders 2013 H1 Results | 8 August 2013
Slide 13: Asset Management AUM analysis
Asset Management AUM analysis EMD, Commodities & Property AUM £18.4bn Multi-asset AUM £50.1bn 6% 13% 30% 46% 53% 28% 19% 5% Property Agriculture and commodities UK multi-asset Liability-driven investment Emerging market debt Private equity Funds of hedge funds Other multi-asset 12 Schroders 2013 H1
Slide 14: Asset Management business flows
Asset Management business flows H1 2012 H1 2013 £bn Inflows Outflows Net Inflows Outflows Net Institutional 9.2 (7.3) 1.9 14.2 (12.1) 2.1 Intermediary 16.0 (15.0) 1.0 22.6 (19.9) 2.7 Total Asset Management 25.2 (22.3) 2.9 36.8 (32.0) 4.8 13 Schroders 2013 H1 Results | 8 August 2013
Slide 15: Institutional
Institutional Assets under management: £139.6bn (31 Dec 2012: £123.7bn) £bn 10 8.0 6.7 7.5 5.1 5 4.6 4.1 2.6 2.3 1.4 1.9 0.5 0 -0.2 -2.7 -3.7 -3.6 -5 -4.4 -5.4 -7.7 -10 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Gross inflows Gross outflows Net flows 14 Schroders 2013 H1 Results | 8 August 2013
Slide 16: Intermediary
Intermediary Assets under management: £79.2bn (31 Dec 2012: £72.0bn) £bn 15 12.3 10.3 10 7.8 8.2 7.9 7.9 5 3.5 1.5 0.3 0.7 0.8 0 -0.8 -5 -7.1 -6.4 -7.5 -7.5 -10 -8.8 -11.1 -15 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Gross inflows Gross outflows Net flows 15 Schroders 2013 H1 Results | 8 Augu
Slide 17: Net revenue and margins – Asset Management
Net revenue and margins – Asset Management Asset Management net revenue £585.7 million (H1 2012: £491.0 million) H1 2012 H1 2013 Average AM AUM – £bn 179.0 213.2 AM net revenue on average AM AUM 55bps 55bps AM performance fees – £m 10.1 11.8 AM performance fees on average AM AUM 1bps 1bps AM costs*
Slide 18: Income and cost metrics for the Group
Income and cost metrics for the Group FY 2012 H1 2013* ► Compensation cost: operating revenue = total Group compensation costs divided by Asset Compensation cost: operating revenue ratio 49% 48% Management and Private Banking net revenues** Bonus: ► Bonus: pre-bonus operating profit 42% 40% pre-bonu
Slide 19: Key performance indicators
Key performance indicators Compensation cost: Operating revenue ratio 100% 80% 60% 49% 48% 40% 45% 44% 20% 0% 2010 2011 2012 H1 2013* Total Group compensation costs divided by Asset Management and Private Banking net revenues adjusted by the Remuneration Committee for allowable and disallowable reve
Slide 20: Key performance indicators
Key performance indicators Cost: Net revenue ratio 100% 80% 70% 67% 66% 66% 60% 40% 20% 0% 2010 2011 2012 H1 2013* Total Group costs divided by net revenue. *H1 2013 ratio excludes exceptional costs 19 Schroders 2013 H1 Results | 8 August 2013
Slide 21: Total costs
Total costs £m 250 223.9 213.5 212.9 192.9 191.7 200 182.7 63.8 60.4 60.1 59.5 62.5 150 59.7 100 160.1 153.1 152.8 133.4 123.0 129.2 50 0 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013* Staff costs Non-staff costs *Q2 2013 excludes exceptional costs 20 Schroders 2013 H1 Results | 8 August 2013
Slide 22: Headcount
Headcount 3,500 3,000 3,140 3,011 2,902 2,500 2,722 2,000 1,500 1,000 500 0 2010 2011 2012 H1 2013 21 Schroders 2013 H1 Results | 8 August 2013
Slide 23: Income statement progression
Income statement progression Asset Management profit before tax £m Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013* Institutional 120.0 113.0 117.1 139.2 136.8 138.4 Intermediary 130.8 127.2 128.9 138.6 153.0 157.5 Net revenue 250.8 240.2 246.0 277.8 289.8 295.9 Costs* (164.2) (154.8) (161.2) (191.2
Slide 24: Income statement progression
Income statement progression Private Banking profit/(loss) before tax £m Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Net revenue 27.1 25.5 24.6 17.2 26.5 27.0 Costs (20.7) (21.5) (20.6) (19.8) (21.6) (21.3) Private Banking 6.4 4.0 4.0 (2.6) 4.9 5.7 profit/(loss) 23 Schroders 2013 H1 Results | 8
Slide 25: Income statement progression
Income statement progression Group segment profit/(loss) before tax £m Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Net revenue 4.8 (4.4) 5.9 19.4 6.7 (0.8) Costs* (8.0) (6.4) (9.9) (12.9) (5.3) (2.2) JVs and associates** (0.1) (0.4) 0.1 (0.1) (0.5) - Net financial income 3.8 2.5 2.7 2.7 4.0 3.4
Slide 26: Balance sheet
Balance sheet £m 31 December 2012 30 June 2013 Intangible assets including goodwill 142.1 180.9 Other non-current assets 729.0 688.1 Current assets 4,457.7 4,849.3 Assets backing unit-linked liabilities 9,346.3 10,460.3 Total assets 14,675.1 16,178.6 Non-current liabilities 443.3 377.1 Current liabi
Slide 27: Movement in capital
Movement in capital £m 2013 Opening balance 2,069.9 Profit before tax 228.0 Exceptional costs (6.3) Net fair value movement arising from AFS financial assets (2.7) Exchange differences on translation of foreign operations after hedging 27.2 Tax (43.3) Net share purchases (35.6) Share-based payments
Slide 28: Forward-looking statements
Forward-looking statements These presentation slides may contain forward-looking statements with respect to the financial condition, results of operations, strategy and businesses of the Schroders Group. Such statements and forecasts involve risk and uncertainty because they are based on current exp