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Schroders2016 Q3 Results

Data Pack November 2016

Schroders

Contents

1 2016 Q3 Results | 3 November 2016

Nothing in this presentation should be construed as a forecast, estimate or projection of future financial performance

PageAssets under management (AUM) 2Regional diversification of AUM 3Gross sales and net flows 4-5Currency profile of AUM 6-7AUM diversification 8-10Asset Management AUM – detailed asset class analysis 11-13Asset Management AUM flows 14-15Net operating revenue and margins – Asset Management 16Income statement progression 17-19Cost and return metrics 20Group capital allocation 21

Schroders

Assets under management (AUM) £375.0 billion at 30 September 2016


* Relates to the acquisition of a securitised credit business in North America.** The weakening of Sterling since 1 January 2016 had the effect of increasing total assets under management by £38.6bn.*** Relates to the transfer of charities assets from Asset Management to Wealth Management.

£bn Institutional Intermediary Asset Management Wealth Management Total

1 January 2016 181.0 100.9 281.9 31.6 313.5

Acquisition of Brookfield* 1.9 1.4 3.3 - 3.3

Net flows 5.4 (2.2) 3.2 (0.5) 2.7

Investment returns** 34.5 17.4 51.9 3.6 55.5

Transfers*** (0.9) - (0.9) 0.9 -

30 September 2016 221.9 117.5 339.4 35.6 375.0

Schroders

Regional diversification of AUM*63% of net operating revenues outside UK


* By client domicile

North America£46.4bn

South America£8.3bn

Continental Europe£69.7bn

UK£144.0bn

Asia Pacific £95.9bn

Middle East & Africa£10.7bn

Schroders

Gross sales


£bn

23.0

15.6

19.9 21.3

17.9

20.8

0.0

10.0

20.0

30.0

Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016

Equities Fixed Income Multi-asset Emerging Market Debt, Commodities & Real Estate Wealth Management

Schroders

Net flows


£bn

3.7

(0.5)

4.7

2.7

(2.0)

2.0

(10.0)

(5.0)

0.0

5.0

10.0

Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016

Equities Fixed Income Multi-asset Emerging Market Debt, Commodities & Real Estate Wealth Management

Schroders

Currency profile of AUMAssets under management £375.0 billion


* Includes the following currencies which individually constitute 1% of AUM: IDR, INR, SGD** USD includes other currencies pegged to USD, including HKD

32%

27%

11%

5%

5%

4%2%

2%2%

10%

USD** GBP EUR AUD JPY CNY TWD KRW CHF Other*

Schroders

USD*GBPEURAUDJPYCNYTWDKRWCHFOther

34%25%10%

2%4%5%7%

2%2%

9%

USD*EURGBPJPYCNYAUDIDRTWDSGDKRWOther

34%18%16%

3%4%5%7%

2%2%2%

7%

Institutional £221.9bn Intermediary £117.5bn

Currency profile of Asset Management AUMAsset Management AUM £339.4 billion


* USD includes other currencies pegged to USD, including HKD

Schroders

By channel By region* By product

Total AUM by channel, region and productAssets under management £375.0 billion



59%31%

10%

Institutional

Intermediary

Wealth Management

38%

21%

26%

15%

UKContinental Europe, Middle East & AfricaAsia PacificAmericas

40%

22%

24%

4%

10%

EquitiesFixed IncomeMulti-assetEmerging Market Debt, Commodities & Real EstateWealth Management

Schroders

Institutional AUM £221.9bn Intermediary AUM £117.5bn

Asset Management AUM by channel and product


41%

24%

30%

5%

Equities Fixed Income

52%

25%

21%

2%

Multi-asset Emerging Market Debt, Commodities & Real Estate

Schroders

Institutional AUM £221.9bn Intermediary AUM £117.5bn

Asset Management AUM by channel and region*



39%

15%

28%

18%

UK Continental Europe, Middle East & Africa

24%

35%

28%

13%

Asia Pacific Americas

Schroders

Asset Management AUM – detailed asset class analysisAssets under management £339.4 billion


Equities £150.7bn

Asia PacificQuantitative equitiesGlobalEmerging marketsUKEuropeJapanUSAustraliaOther

19%16%

1%4%

6%5%

11%

14%13%11%

USGlobalEuropeUKAsia PacificAustraliaConvertiblesInsurance-linked

31%

22%

2%2%

7%5%

7%

24%

Fixed Income £82.2bn

Risk controlled growthLDIUK traditional balancedIncomeInflation protectionRisk mitigationGAIAWealth preservation

23%40%

1%

15%9%

Multi-asset £92.0bn

5%

3%4%

Real estateEmerging market debtAgriculture and commoditiesPrivate equity

73%14%

4%9%

Emerging Market Debt, Commodities and Real Estate £14.5bn

Schroders

Institutional AUM – detailed asset class analysisAssets under management £221.9 billion


Equities £90.1bn

Quantitative equitiesEmerging marketsGlobalAsia PacificUKEuropeAustraliaJapanUS

24%17%

3%

4%8%9%

15%17%

3%

USGlobalEuropeUKAsia PacificAustraliaConvertiblesInsurance-linked

44%22%

1%1%

6%4%

13%9%


Risk controlled growthLDIUK traditional balancedInflation protectionRisk mitigationWealth preservation

32%38%

3%

21%


5%

1%


78%

7%5%

10%

Emerging Market Debt, Commodities and Real Estate £11.6bn

Schroders

Intermediary AUM – detailed asset class analysisAssets under management £117.5 billion


EuropeGlobalUSAustraliaAsia PacificConvertiblesUKInsurance-linked

39%28%

2%3%4%8%

8%8%


Risk controlled growthIncomeGAIARisk mitigationInflation protection

47%

10%34%


4%5%


53%31%

2%14%

Emerging Market Debt, Commodities and Real Estate £2.9bnEquities £60.6bn

Asia PacificEuropeUKJapanGlobalEmerging marketsUSQuantitative equitiesAustraliaOther

24%

15%

3%4%5%

9%

8%8%8%

16%

Schroders

InstitutionalAssets under management: £221.9 billion


7.4

4.9

10.4 10.6

7.3 7.1

(5.8)(5.0) (5.1)

(6.1)(7.4)

(6.1)

1.6

(0.1)

5.3 4.5

(0.1)

1.0

(10.0)

(5.0)

0.0

5.0

10.0

15.0

Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016

£bn

Gross inflows Gross outflows Net flows

Schroders

IntermediaryAssets under management: £117.5 billion


13.9

9.6 8.4 9.5 9.3 12.5

(12.0)(9.8) (8.7)

(11.3) (10.8) (11.4)

1.9

(0.2) (0.3)(1.8) (1.5)

1.1

(15.0)

(10.0)

(5.0)

0.0

5.0

10.0

15.0

20.0

Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016

£bn

Gross inflows Gross outflows Net flows

Schroders

Net operating revenue and margins – Asset ManagementAsset Management Net operating revenue £1,071.3 million


* Excludes exceptional items

Performance fees - £m

Performance fees on average AUM

Net operating revenue (ex performance fees) - £m

Net operating revenue (ex performance fees) on average AUM

Net income* - £m

Operating expenses* - £m

Profit before tax* - £m 399.1 540.5 400.4

719.5 872.0 644.6

47 bps49 bps 49 bps

1,412.5 1,045.0 1,118.6

1,058.0 1,357.7 1,019.3

0 bps1 bps 1 bps

13.3 35.7 12.7

YTD Q3 2016FY 2015 YTD Q3 2015

Schroders

Income statement progressionAsset Management profit before tax


£m

Institutional

Intermediary

Net operating revenue

Net (losses)/gains on financial instruments and other income

Share of profit of associates and joint ventures

Net income

Operating expenses

Asset Management profit before exceptional items

Exceptional items

Asset Management profit after exceptional items

Q2 2016

163.4

188.6

352.0

13.0

3.3

368.3

(238.6)

129.7

(5.0)

124.7

Q3 2015

146.5

192.6

339.1

(213.5)

(0.2)

4.0

129.4

342.9

Q3 2016

172.1

211.4

383.5

(258.9)

137.3

(3.0)

134.3

141.5

(3.8)

4.4

(6.0)

3.5

400.4 352.0

13.4

(3.0)

137.1 137.7

(3.5)

124.4

Q4 2015

173.2

188.2

Q1 2016

152.7

183.1

335.8

8.9

5.2

349.9

(222.0)

127.9

Q2 2015

156.3

197.3

353.6

(214.7)

(3.1)

126.3

361.4

(227.4)

4.0

2.1

140.1

367.5

Schroders

Income statement progressionWealth Management profit before tax


£m

Net operating revenue

Net (losses)/gains on financial instruments and other income

Net income

Operating expenses

Wealth Management profit before exceptional items

Exceptional items

Wealth Management profit after exceptional items

Q2 2016

55.2

0.4

55.6

(38.9)

16.7

(2.0)

14.7

0.2

49.9

51.9

(35.3)

16.5

5.2

21.7

(0.1)

Q1 2016

51.9

0.1

52.0

(36.3)

15.7

(2.0)

13.7

Q4 2015

49.7

(35.1)

(2.0)

12.8

51.8

Q2 2015

53.3

Q3 2015

13.0

55.5

(39.5)

(2.8)(2.1)

Q3 2016

14.8

1.1 -

17.1

14.3

(38.2)

56.6 53.3

15.1

Schroders

Income statement progressionGroup segment profit/(loss) before tax


* Includes RWC Partners Limited and Schroder Ventures Investments Limited associates

£m

Net gains on financial instruments and other income

Share of profit of associates*

Net income

Operating expenses

Group profit before exceptional items

Exceptional items

Group profit/(loss) after exceptional items

(1.1)

1.9

Q2 2015

11.0

3.0

10.3

Q3 2016

(8.0)

0.7

1.6

(7.2)

10.9

5.7

5.2

(1.0)

0.6

(2.4)

1.6

(1.4)

(6.6)

0.2

3.7

(10.2)

11.0

0.8

1.3

Q3 2015

8.2

7.2

1.0

Q4 2015 Q2 2016

11.8

Q1 2016

8.0

1.8

9.8

6.8

1.8

8.6

(5.8)

2.8

2.2

5.0

0.9

(1.1)

(0.2)

(8.9)

Schroders

Cost and return metricsTotal Schroders Group costs


* Excludes exceptional items**Costs and income are subject to adjustments by the remuneration committee

FY 2015YTD Q3

2015YTD Q3

2016

Total compensation ratio* 44% 44% 45%

Headcount 3,784 3,786 4,011

Total costs* 1,048.8 776.1 856.9

Total cost ratio* 63% 63% 65%

Return on average capital (pre-tax)* 23% 23% 21%

Return on average capital (post-tax)* 18% 18% 17%

► Total compensation ratio= compensation costs divided by net income**

► Total cost ratio= costs divided by net income

► Return on average capital (pre-tax) = profit before tax divided by average capital

► Return on average capital (post-tax) = profit after tax divided by average capital

Schroders

Group capital allocationIncrease of £143 million for the nine months ended 30 September 2016


* Includes RWC Partners Limited and Schroder Ventures Investments Limited associates**Comprises goodwill, intangible assets, pension scheme surpluses, other associates and joint ventures, and deferred tax

£mDecember

2015September

2016

Regulatory capital 653 717

Other operating capital 253 93

Investment capital* 942 1,114

Seed capital 229 302

Other** 719 713

Statutory Group capital 2,796 2,939

DataPackSlides Q3-16 Linked - SchrodersQ2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Equities...

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