FINAL Data Pack Interim 09...2009 Interim Results Data Pack. Page Funds under management 2 FUM by...
Transcript of FINAL Data Pack Interim 09...2009 Interim Results Data Pack. Page Funds under management 2 FUM by...
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Schroders2009 Interim Results
Data Pack
PageFunds under management 2FUM by client domicile 4Currency profile 5Funds under management diversification 6Asset Management business flows 9Focus on high margin products 10Income and cost metrics for the Group 11Net Revenue and margins – Asset Management 12Total income 14Total costs 15Compensation costs: operating revenues 16Cost: income ratio 17Headcount 18Income statement progression 19Balance sheet 20Movement in capital 21Private Equity interests 22
Contents
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110.2 113.3
Net new business of £0.1bn
Funds under management (£bn) Institutional FUM (£bn)
Intermediary FUM (£bn) Private Banking FUM (£bn)
Funds under management are 3% (£3.1bn) above December 2008 levels.
Dec 08 Jun 09
59.759.6
Dec 08 Jun 09
42.438.9
Dec 08 Jun 09
11.211.7
Dec 08 Jun 09
Funds under management£113.3 billion at June 2009
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Net outflows fell to £0.8bn. Q2 net inflows of £1.6bn
Net inflows of £2.5bn. High levels of inflows in European Corporate Bonds.
Funds under management£113.3 billion at end June 2009
113.311.242.459.730 June 2009
1.3(0.6)1.00.9Market movements, foreign exchange impact & other
1.80.12.5(0.8)Net flows
110.211.738.959.631 December 2008
TotalPrivate BankingIntermediaryInstitutional£bn
Institutional net outflows
– Reduced level of outflows at £0.8 billion (H1 2008: £1.1 billion) as Institutional business is successfully repositioned
Intermediary net inflows
– Inflows of £2.5 billion (H1 2008: £0.2 billion outflows) driven by continued low withdrawals coupled with strong inflows from European investors
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£5.6bn China joint venture
FUM by client domicile
China joint venture funds under management are not reported within Group funds under management
NorthAmerica£10.6bn
South America£3.1bn
ContinentalEurope£26.7bn
UK£43.8bn
Asia Pacific £27.1bn
MiddleEast
£2.0bn
• £69.5 billion funds under management from clients outside the UK
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Currency profile of Funds under managementFunds under management £113.3 billion
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11%
14%
43%
5%
7%
20%
GBP EUR USD JPY CHF Other
Total funds under management
37%
10%
53%
Funds under management £113.3 billion
Private Banking
IntermediaryInstitutional
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39%
24%
12%
25%
Asia PacificContinental Europe
UK
Americas
By channel By region
17%
13%
47%
13%
10%
By product
Equities Fixed IncomeAlternatives Multi-assetPrivate Banking
Asset Management FUM by channel and product
60%
8%
12%
20%
Intermediary FUM £42.4bn
Multi-assetFixed IncomeEquitiesAlternatives
46%
27%
16%
11%
Institutional FUM £59.7bn
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Asset Management FUM by channel and region
44%
17%
18%
21%
Institutional FUM £59.7bn
26%
39%
7%
28%
Intermediary FUM £42.4bn
Asia PacificContinental EuropeUK
Americas
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H1 2009H1 2008
12.6
6.2
6.4
Inflows
(10.9)
(3.7)
(7.2)
Outflows
1.7
2.5
(0.8)
Net
14.8
7.5
7.3
Inflows
(16.1)
(7.7)
(8.4)
Outflows
(1.3)
(0.2)
(1.1)
Net£bn
Institutional
Intermediary
Total Asset Management
Asset Management business flows
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Focus on high margin products
• Asset Management margins up 18% since 2005
• Channel diversity
• H1 2009 impacted by sales mix changes
• Strong pipeline base across products
Institutional (lhs) Intermediary (lhs) margin (rhs)
(bps)FUM (£bn)
Asset Managementfunds under management and margins
10
20
40
60
80
100
120
140
H1 2005 H1 2006 H1 2007 H1 2008 H1 200930
40
50
60
70
Income and cost metrics for the Group
2%
5%
81%
78%
48%
H1-09
12%
16%
69%
65%
45%
H1-08
Compensation costs : operating revenues
Group cost : income ratio
Group cost : net revenue
Return on average capital (pre-tax)*
Return on average capital (post-tax)*
– Compensation costs : operating revenues = total Group compensation costs divided by net revenue for the Asset Management and Private Banking business segments
– Group cost : income ratio = total Group costs divided by total Group income
– Group cost : net revenue = total Group costs divided by total Group net revenue
– Return on average capital (pre-tax) = total Group profit before tax divided by average capital
– Return on average capital (post-tax) = total Group profit after tax divided by average capital
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Before exceptional items, except for *
Asset Management net revenue £277.4 million(H1 2008: £394.2 million)
Net revenue margins – Asset Management
13bps
45bps
1bps
58bps
H1 2009
20bps21bpsAM operating profit on average AM FUM
44bps
3bps
65bps
H1 2008 FY 2008
AM net revenue on average AM FUM 66bps
Of which: performance fees 4bps
AM costs on average AM FUM 46bps
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Net revenue margin quarterly progressionExcluding performance fees
61 63 6655 55 60
104 100 10192 92
81
64 66 7058 59 62
Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009
Asset Management Private Banking Combined
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Total income
Income is the sum of net revenue; net finance income; and share of profit of associates and joint ventures2005 uses underlying income adjusted for £20.4m gain on discontinued outsourcing project2008 & 2009 figure quoted before exceptional items
£m
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326.9
391.6
471.5491.9
345.7
H1 2005 H1 2006 H1 2007 H1 2008 H1 2009
2008 & 2009 figure quoted before exceptional items
Total costs
£m
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148.3 165.8 187.1 203.7 160.7
75.593.5 98.8 114.9
108.1223.8
259.3285.9 268.8
318.6
H1 2005 H1 2006 H1 2007 H1 2008 H1 2009
Staff Costs Non-staff costs
Compensation costs: operating revenues
Total Group compensation costs divided by net revenue for the Asset Management and Private Banking business segments
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52%
48%48% 47%45%
H1 2005 H1 2006 H1 2007 H1 2008 H1 2009
Cost: income ratio
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Total Group costs divided by total Group income2005 uses underlying profit adjusted for £20.4m gain on discontinued outsourcing project
68%
78%
66%61%
65%
H1 2005 H1 2006 H1 2007 H1 2008 H1 2009
Headcount
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2,834
2,998
2,891
2,626
2,782
30 Jun 07 31 Dec 07 30 Jun 08 31 Dec 08 30 Jun 09
(0.4)-(1.5)---Private Banking exceptionals
Profit before tax
24.112.2(90.6) 78.0 93.5 42.2 Profit before tax
(10.8)(17.2)(119.1)8.1(1.1)(35.1)Group exceptionals
(4.5)0.2(11.1)(0.8)12.10.8Group profit before exceptionals
6.68.35.811.6 11.4 10.9 Private Banking profit before exceptionals
33.220.935.359.1 71.1 65.6 Asset Management profit
(0.6)
(130.5)
196.7
Q12008
(0.8)
(136.1)
208.0
Q22008
(1.6)
(127.4)
188.1
Q32008
Q22009
Q12009
Q42008£m
(15.7)
(124.6)
175.6 Asset Management income 130.7 152.8
Asset Management costs (103.1) (114.1)
Asset Management exceptionals (6.7) (5.5)
Income statement progression
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Balance sheet
7,485.6
3,063.8
2,472.4
330.0
1,619.4
7,485.6
3,063.8
17.4
3,494.0
755.3
155.1
30 Jun 2008
7,593.8
3,234.7
2,410.0
316.9
1,632.2
7,593.8
3,234.7
2.0
3,489.1
704.5
163.5
31 Dec 2008
8,021.2
3,718.7
2,256.1
549.9
1,496.5
8,021.2
3,718.7
0.8
3,257.1
903.3
141.3
30 Jun 2009
Total equity and liabilities
Unit-linked liabilities
Current liabilities
Non-current liabilities
Total equity*
Total assets
Assets backing unit-linked liabilities
Non-current assets held for sale
£m
Intangible assets including goodwill
Other non-current assets
Current assets
* Includes minority interests (Jun 2009: £(0.1)m; Dec 2008: £0.3m; Jun 2008: £2.1m)
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Movement in capital
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1,496.6Closing balance
1,631.9Opening balance
36.3Profit before tax
4.6Tax and minority interests
(57.4)Dividends
6.3Other transactions with equity holders
21.5Net decrease in AFS reserve
(74.4)Net actuarial losses on defined benefit pension schemes
H1 2009£m
2.4Other
(74.6)Exchange differences
Other
Schroders plc
Carried interest
SVG Capital plc
SVIL
GP & LP Interests
Fund of Funds I, II, III, IV
Permira
Other SV fundsQuoted Investment Trust
Co-investment vehicle
Permira and other funds
Stand-alone portfolio
Funds I + II
US, Canada, Japan, SapphireLife Sciences, Asia Pacific
(Total £53m)
£15m
£12m
£4m
£18m
£4m
(Total £15m)
Investments
Private Equity interests
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Forward-looking statements
These presentation slides may contain certain forward-looking statements with respect to the financial condition and results of the operations and businesses of Schroders plc
These statements and forecasts involve risk and uncertainty because they relate to events and depend upon circumstances that may occur in the future
There are a number of factors that could cause actual results or developments to differ materially from those expressed or implied by those forward-looking statements and forecasts. The forward-looking statements and forecasts are based on the Directors’ current view and information known to them at the date of this presentation. The Directors do not make any undertaking to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Nothing in this presentation should be construed as a profit forecast
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