Schroders2011 Half-Year Results

Michael DobsonChief Executive

4 August 2011

trusted heritageadvanced thinking

1

H1 2011: Summary

– 77% of funds outperforming over 3 years

– Net new business £5.1bn (H1 2010: £16.1bn)– Assets under management £204.8bn (31 Dec 2010:

£196.7bn)

– 73% of new business outside UK

– Added 96 people across Investment, Distribution, Private Banking, Infrastructure

– Profit before tax £215.7m (H1 2010: £188.2m)– Earnings per share 60.7p (H1 2010: 49.4p)– Interim dividend 13.0p per share (interim dividend 2010:

11.0p)

• Focus on investment performance

• Broad product rangeProven Distribution capability

• Global franchise

• Investment in organic growth

• Strong financials

2

H1 2011: Gross sales

£bn

Equities Fixed Income Multi-Asset Alternatives Private Banking

0

10

20

30

40

50

H1 2008 H2 2008 H1 2009 H2 2009 H1 2010 H2 2010 H1 2011

26.0

15.6

19.9

34.2

41.236.7

33.1

H1 2011: Net inflows

3

-10

-5

0

5

10

15

20

H1 2008 H2 2008 H1 2009 H2 2009 H1 2010 H2 2010 H1 2011

£bn

Equities Fixed Income Multi-Asset Alternatives Private Banking

13.3

16.1

11.0

1.7

5.1

-8.5

-1.1

Regional diversification: gross sales73% of gross sales outside UK

4

NorthAmerica£2.0bn

South America£0.6bn

ContinentalEurope£12.7bn

UK£8.8bn

Asia Pacific £8.1bn

MiddleEast

£0.9bn

5

NorthAmerica£22.0bn

South America£6.2bn

ContinentalEurope£47.1bn

UK£72.2bn

Asia Pacific £52.1bn

MiddleEast

£5.2bn

Regional diversification: assets under management67% of revenues outside UK

6

Institutional Assets under management: £112.7bn (31 Dec 2010: £106.4bn)

£bn

• Strong results in UK and Europe

• All regions positive

• Good pipeline of unfunded wins

• Institutional revenues doubled in 2 years

16.315.1

13.1

-7.2 -6.4 -6.5-8.1 -8.5

12.1

6.4

-0.8

5.7

9.8

7.0

4.6

-10

-5

0

5

10

15

20

H1 2009 H2 2009 H1 2010 H2 2010 H1 2011

Gross inflows Gross outflows Net flows

7

Intermediary Assets under management: £75.4bn (31 Dec 2010: £74.1bn)

£bn

• Gross sales close to H2 2010 level

• Net result impacted by move away from risk assets in Europe

• Closure of funds for capacity reasons

• Well positioned for recovery in demand

10.7

21.118.2 17.7

-8.2-11.2

-15.3-17.3

18.4

-16.0

2.5

7.25.1

2.90.4

-20

-15

-10

-5

0

5

10

15

20

25

H1 2009 H2 2009 H1 2010 H2 2010 H1 2011

Gross inflows Gross outflows Net flows

8

Private BankingAssets under management: £16.7bn (31 Dec 2010: £16.2bn)

• Successful transition of new clients won in 2010

• Management fee revenues up 25 per cent

• Net new business in 2011 impacted by market uncertainty

• No provisions for doubtful debts

• Profit up 86 per cent

Schroders

Kevin ParryChief Financial Officer

4 August 2011

2011 Half-Year Results

10

Key figures

Profit before tax (£m)188.2

215.7

173.3*

76.9*

H1 2008 H1 2009 H1 2010 H1 2011

Total costs: net revenue ratio (%)

6865

69*

81*

H1 2008 H1 2009 H1 2010 H1 2011

Earnings per share (pence)49.4

60.7

46.5*

20.3*

H1 2008 H1 2009 H1 2010 H1 2011

10 10 1113

H1 2008 H1 2009 H1 2010 H1 2011

* Before exceptional items of 2009: £40.6m; 2008: £37.6m relating to cost reductions and losses on financial assets.

Dividend per share (pence)

11

Profit before taxRevenue growth flows through to the bottom line

£m

Net Revenue

PBT H1 2010 £188m

£216m

£56m

12

Significant increase in net revenue

£m

Net New Business £46m

Markets and FX £36m

Net Revenue H1 2010 £537m

Net Revenue H1 2011 £593m

Performance Fees £17m Group Revenue

£9m

13

Profit before taxRevenue growth flows through to the bottom line

£m

Associates

Net Revenue £56m

Other Costs £9m

Net FinanceIncome

£4m

PBT H1 2010 £188m

PBT H1 2011 £216m

Compensation Costs £15m

Joint Ventures and Associates

£8m

14

Institutional net revenues

Breakdown of £39m net revenue increase on H1-10 (excluding performance fees)

£m

15

Intermediary net revenues

Breakdown of £36m net revenue increase on H1-10 (excluding performance fees)

£m

272285

308

6

1

272

291

309

H1 2010 H2 2010 H1 2011

Intermediary Performance fees

Asset Management Combined

16

Institutional and Intermediary net revenues£m

60bps 58bps 57bps

64bps 63bps

58bps

H1 2010 H2 2010 H1 2011

Management Fees – Institutional Management Fees – Intermediary Performance Fees

30.5 34.2 38.1

11.811.6

12.77.67.6

7.249.953.4

58.0

H1 2010 H2 2010 H1 2011Management fees Transaction fees

Net banking interest income

17

Private Banking segment£m – Net Revenue

24.830.7 27.4

4.7

2.8

13.8

16.4

18.3

43.3

49.9

45.7

H1 2010 H2 2010 H12011

Compensation costs Doubtful debt provisionOther costs

£m – Costs

18

£m H1 2010

H2 2010

H1 2011

H1 2011

VS H2 2010

Staff costs 242.4 263.1 257.8 (5.3)

Other costs 111.0 140.0 123.4 (16.6)

Depreciation and amortisation 10.3 7.2 7.2 -

Total 363.7 410.3 388.4 (21.9)

Compensation cost: operating revenue ratio 46% 44% 44% (2%)

Total cost: total net revenue ratio 68% 66% 65% (1%)

Operating expenses

• Lower legal and regulatory costs following increase in H2 2010

• Absence of loan provisions in Private Bank

• Effective procurement

• Small increase in other costs

19

H1 2010 H1 2011 % Change£m

Profit before tax 188.2 215.7 14.6

Tax (47.5) (50.0) 5.3

Effective tax rate(%) 25% 23% -

Profit after tax 140.7 165.7 18

Basic earnings per share 49.4p 60.7p 23

Dividend 11.0p 13.0p 18

Tax charge and earnings per shareBenefit of higher profitability

20

Movement in Group Capital

PAT £166m

FX £15m

Pensions and Other

£7m

Share Awards

£31m

Group Capital H2 2010

£1,800m

Group Capital H1 2011

£1,845m

Share Purchases

£101m Dividends £73m

21

30%

25%3%7%

10%

9%

12%4%

Cash and cash equivalents Seed capital: alpha exposuresLong fixed income Long global macroLong only EMD absolute return Long only multi-asset absolute returnLegacy private equity Other

Group capital allocation

Investment capital breakdown (%)

£m H1 2010

H2 2010

H1 2011

Asset Management & Private Banking operational capital

736 864 850

Investment capital* 721 774 807

Other (intangibles etc.) 141 162 188

Statutory Group capital 1,598 1,800 1,845

* Not included in AUM

Outlook

Michael DobsonChief Executive

23

Outlook

• Market concerns holding back Intermediary and Private Banking demand

• Opportunities in Institutional

• Continued investment in talent and infrastructure

24

25

Forward-Looking Statements

These presentation slides may contain 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. 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.