Morgan Stanley European Banks and

Financials conference

Schroders plc

Vice Chairman

Massimo Tosato

2 April 2008

trusted heritage

advanced thinking

1

Asset management – a changing landscape

– Growth of individual and ‘instividual’ savings

– Decumulating investors outgrowing accumulating investors

Channels

0

10

20

30

40

2000 2020 2040

Accumulating (40- 59)

Decumulating (60+)

Demographic development

Percentage of population, Europe

Source: Mckinsey

2

Asset management – a changing landscape

– Increasing demand for investment solutions

– Outcome oriented products

– The rise of alternatives

– The rise of Asia and other emerging markets

– Sovereign Wealth Funds

Markets

Products

– Growth opportunities beyond domestic client base

– Change in distribution dynamics

Business model

3

Increasing demand for investment solutions Retail: high growth of outcome-orientated funds

Pre-retirement

Investment solutions and outcome orientated products

Post-retirement

Income, absolute return, capital preservation

Principal

protected

Inflation

indexed

Tax

managed

Target-date

life cycle

Risk-based

life cycle

US Market, 2006 ($mn)*

23

65

33

65

11

CAGR% 04-06

Source: Mckinsey

4

Schroders Alternative clients conference

March 2008

• 86% increased their weighting in

alternatives in 2007

• 66% plan to increase their alternatives

weighting in 2008

PwC/EIU survey – ‘Transparency vs

Returns’* March 2008

• Higher alternative allocations expected

• Growing focus on governance, quality &

scope of reporting

The rise of alternatives

35

35

41

40

33

Commodities

Infrastructure

Property

Private equity

Hedge funds

Investors expecting to increase their allocation in alternatives over the next 3 years*

5

Product convergence Global product development continuum

Above Average Growth

Below average growth

Revenue margin

Active equities

Active bonds

Money market

Index funds

ETF

Market tracking

‘Traditional’ products

Real Estate

Quantitative

Hedge funds

Private Equity

Innovative products Structured products

Source: Putnam Lovell, TABB Group estimate

6

Value chain convergence

End client Distribution Manufacturing

Packaging/design

Future battleground or partnership?

Strategic advice, insurance, risk management, provision of beta, etc.

Schroders: a Company in motion

8

2007 funds under management: Investment by client domicile

China joint venture funds under management are not reported within Group funds under management

£3.8bn China joint venture

North

America

£13.8bn

South

America

£3.4bn

Continental

Europe

£29.8bn

UK

£52.7bn

Asia

Pacific

£36.0bn

Middle

East

£3.4bn

• £139.1 billion total funds under management

• Income diversified by channel: 51% retail, 37% institutional and 12% PB

• Income diversified by geography:

70% of total income outside the UK

37 offices in 28 countries

Investment operations in 16 locations

4 in Americas

5 in Europe

7 in Asia

Strength of international business A Company in motion

9

8.8

2.3

2.2

1.7

0.9

property emerging market debt

funds of hedge funds commodities

private equity funds of funds

Increasing capabilities in alternatives A Company in motion

Alternative FUM £15.9bn – December 2007 • Property

• Hedge funds of funds

• Commodities & Agriculture

• Private Equity

• Multi-manager

10

Schroders A Company in motion

Record results in 2007

• Strength of international business

• Diversity of product range

• Focus on high margin products

• Growth in Retail

• Repositioning in Institutional

• Transformed profitability in Private Banking

392.5

230.3

290.0

0

200

400

600

800

1000

1200

2005 2006 2007

0

100

200

300

400

Income (lhs)

£mn

PBT (£mn) Costs (lhs)

11

Forward-Looking Statements

These presentation slides contain certain forward-looking statements and forecasts

with respect to the financial condition and results of the 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. Nothing in this presentation should be construed as a profit forecast