Schroders plc

1
Schroders plc
2
Outline

• 1999 results
• Sale of Investment Bank
• The Future

3
1999 Financial highlights

• Profit before tax up 40 to 324m
• Pre-tax return on equity 26 (1998 21)
• Earnings per share up 45 to 82.8p
• Dividend up 12 to 18.5p
• Net assets up 17 to 1.4bn

4
Segmental analysis - underlying profitability
1998 mn
1999 mn
147
162

• Asset management
• Investment banking
• Margins
• Asset management 33.0
• Investment banking 16.5

128
144
275
306
5
Timetable for Investment Banking Merger

• Documentation despatched - 3 March 2000
• Shareholders meetings - 28 March 2000
• Ex-distribution date - 17 April 2000
• Completion date - 30 April 2000
• Cash to shareholders - mid May 2000

6
Schroders - Global Asset Managers
Stockholm
Copenhagen
London
Amsterdam
Montreal
Channel Islands
Frankfurt
Paris
Zurich
Toronto
Luxembourg
Geneva
Boston
Milan
Seoul
New York
Madrid
Tokyo
Miami
Shanghai
Bermuda
Taipei
Bombay
Hong Kong
Cayman Islands
Mexico City
Bangkok
Singapore
Jakarta
São Paulo
Sydney
Buenos Aires
Cape Town
7
Business Profile
Group Executive Committee Peter Sedgwick, David
Salisbury, Nick Ferguson, Nick MacAndrew, Andrew
Sykes,

• PrivateBanking
• Asset management
• Banking- lending, deposits
• Broad range of service

• Institutional Asset Management
• UK
• International
• Defined contribution

• Retail Asset Management
• UK
• Europe
• Japan
• Americas
• Asia

Products

• Traditional
• Equities
• Bonds
• Cash

• Alternative
• Private Equity
• Property
• Hedge funds
• Structured Investments

8
Summary of opening capital position
mn
1,370 555 55 (100) (900) 980

• Net assets of Group as at 1 January 2000
• Profit on sale of Investment Banking
• Profit on sale of Schroder Leasing
• Transaction and reorganisation costs
• Distribution via scheme of arrangement
• Opening Capital

9
1999 performance of retained activities

• Asset management segmental result
• Sale of Australian property business
• Underlying profit
• Deductions Group costs
• Profits on businesses sold
• Addition Interest on new cash capital
• Private Equity - investments
• - associates

1999 mn
1998 mn
187
147
(25)
-
162
147
10
The Future

• Leading, independent fund manager
• Global presence
• Specialist excellence
• Pre-eminent brand

11
Average funds under management / Revenues
Year end funds under management up 20 to 142.6bn
1998 bn
1999 bn

• Funds under management (average)
• UK
• Continental Europe
• Asia Pacific
• Americas
• Revenue
• UK
• Continental Europe
• Asia Pacific
• Americas
• Total revenue up 10 (underlying revenue up 16)

77.9 4.5 11.3 20.5 114.2
84.6 6.2 15.8 24.5 131.1
Up 15
mn
mn
295.4 22.7 51.3 77.7 447.1
310.1 30.9 61.3 89.0 491.3
Up 10
12
Key statistics

• Total revenue on funds under management 0.37
• Underlying revenue on funds under
  management 0.33
• Costs on funds under management 0.25
• Pre-tax margin on revenue 33

13
Funds under management
142.6 billion assets under management
14
Funds under management - at year end
1998 bn
1999 bn
By asset type Equities Bonds Cash Prop
erty/Ventures By geographical investment of
assets UK Continental Europe Asia
Pacific Americas
88.8 17.9 7.3 4.8 118.8
116.8 16.9 4.3 4.6 142.6



61.4 23.3 21.3 12.8 118.8
64.0 23.3 37.8 17.5 142.6
15
Movements in Funds - by client domicile
Total
bn
Overseas
UK
31 Dec 1998 Market movements Disposal Net
client gains / (losses) 31 Dec 1999
118.8 27.3 (1.3) (2.2) 142.6
38.7 11.7 (1.3) 5.2 54.3
80.1 15.6 - (7.4) 88.3
16
Improving performance

• Integrated global decision-taking
• Single research platform
• New team heads in Europe, Asia Pacific
• Separated fund management and client service
• Performance culture

17
Institutional business

• Leverage global capabilities
• Emphasise and expand specialist product range
• Launch full DC service in UK
• Build on rapid growth in Europe and Asia

18
Retail business

• New product programme
• Major drive in Continental Europe
• Branding exercise underway
• Internet interface under construction

19
Private banking

• Application for UK banking licence in process
• Full service planned
• Targeting Europe and Latin America
• Client focus differentiation

20
Alternative Investments

• Schroder Ventures
• Leading European Private Equity firm
• European fund II launch
• Property
• SEPUT - leading UK property unit trust at 1bn
• Hedge Funds
• Structured Investments

21
Technology

• Buying and building leading edge systems
• Web-enabling client communications
• Launching e-Incubator for business-to-business
  financial services

22
The Way Ahead

• Performance
• Product
• Service

23
Schroders - Global Asset Managers
Stockholm
Copenhagen
London
Amsterdam
Montreal
Channel Islands
Frankfurt
Paris
Zurich
Toronto
Luxembourg
Geneva
Boston
Milan
Seoul
New York
Madrid
Tokyo
Miami
Shanghai
Bermuda
Taipei
Bombay
Hong Kong
Cayman Islands
Mexico City
Bangkok
Singapore
Jakarta
São Paulo
Sydney
Buenos Aires
Cape Town