Annual Report 2007 - Schroders · dividend of CHF 24 million. At the same time it also proposes to allocate CHF 2.3 million (previous year: CHF 1.5 million) to the “General legal

Annual Report 2007Schroder & Co Bank AG

«Our clients rightly expect us to provide the best service. It is our highest priority and tradition.»

Luc Denis, Chairman of the Executive Board

This annual report is also published in German. The German version takes precedence.

Schroder & Co Bank AG | Annual Report 2007 3

Content

Chairman’s Statement

Executive Board’s Statement

Balance Sheet

Off-Balance Sheet Transactions

Profi t and Loss Account

1. Comments on Business Activities

2. Principal Accounting Policies and Valuation Principles

3. Information on the Balance Sheet

3.1 Schedule of collateral for loans and off-balance sheet transactions

3.2 Securities and precious metals trading portfolios

3.3 Participations

3.4 Assets and participations

3.5 Other assets and other liabilities

3.6 Assets pledged or ceded to secure own liabilities and

assets subject to ownership reservation

3.7 Pension plans

3.8 Valuation adjustments, provisions and reserves for general banking risks

3.9 Capital structure and shareholders

3.10 Statement of changes in shareholders’ equity (before profi t distribution)

3.11 Maturity structure of working capital and liabilities

3.12 Amounts due from and due to affi liated companies as well as loans

and exposures to members of the bank’s governing bodies

3.13 Assets and liabilities by domestic and foreign origin

3.14 Assets by countries /country groups

3.15 Assets by currencies

4. Information on Off-Balance Sheet Transactions

4.1 Contingent liabilities

4.2 Confi rmed credits

4.3 Outstanding derivative instruments

Outstanding derivative instruments by counterparties

4.4 Fiduciary transactions

4.5 Funds under management

5. Information on the Profi t and Loss account

5.1 Results from trading operations

5.2 Personnel expenses

5.3 Operating expenses

5.4 Extraordinary income

Report of the Statutory Auditors

Corporate and Social Responsibility

Board and Senior Staff

Main Schroder Branches

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Executive Board and Chairman of the Board of Directors: (from the left) Heinz Scheiwiller, Deputy Chairman; Stephen Mills, Head of Schroder Investment Management (SIM) Switzerland; Philip S. Mallinckrodt, Chairman of the Board of Directors; Luc Denis, Chairman of the Executive Board; Rudolf Stäger, Head of Private Banking Zurich


Chairman’s Statement

2007 proved to be a year of two

halves for most investors. Liberal lend-

ing conditions and excess leverage in

the first half were followed in July/Au-

gust by a rapid change in liquidity and

credit conditions in capital markets,

and a process of de-leveraging and

de-risking that is still continuing.

The European currencies, notably the

euro and the Swiss franc, strength-

ened against the US dollar. However,

sterling relinquished some of its earlier

strength and weakened against both

the euro and the Swiss franc. The

volatility in prices of almost all financial

assets increased considerably.

Government bonds appreciated

in price, but spread-widening has

occurred in corporate debt, mort-

gage-backed securities and structured

credit. Equity markets have fallen,

driven in particular by declines in

financial equities.

Against this backdrop, the big secular

trends in the world economy continue,

with the United States economy

and currency weakened by the twin

deficits and the housing crisis, while

the emerging markets, many of them

the beneficiaries of a high oil price,

continue to enjoy high growth rates.

The process of deleveraging by banks

and leveraged investors is leading

to many assets trading at distressed

prices. Some assets offer attractive

value for long-term unlevered inves-

tors, but we believe that prices may

remain depressed until the process

of the reallocation of these assets into

the hands of long-term investors has

been achieved.

A good year for

Schroder & Co Bank AG

2007 was in all respects a good

business year for Schroder & Co Bank

AG. Net income after tax increased

by 81% to CHF 39.9 million. All of

our business areas – private banking,

institutional investment management

and investment funds – contributed

significantly to this result.

Following this result, the Board of

Directors proposes to the General

Meeting the distribution of a regular

dividend of CHF 24 million.

At the same time it also proposes to

allocate CHF 2.3 million (previous year:

CHF 1.5 million) to the “General legal

reserve” and CHF 13.6 million (previ-

ous year: CHF 4.5 million) to “Other

reserves”. This means that, after

distribution of the dividend, the Bank’s

stated equity stands at CHF 118.4 mil-

lion (previous year: CHF 102.4 million).

On behalf of the Board of Directors,

I would like to thank all our clients

for the trust they have put in us for

so many years. At the same time my

thanks also go to all of our employees

who made our success possible in

the first place with their expertise and

engagement.

Philip Mallinckrodt

Chairman of the Board of Directors

Schroder & Co Bank AG | Annual Report 20076

Switzerland (SPI): – 0.05%

USA (S&P 500): +5.49%

UK (FTSE 100): +7.75%

Brazil (Bovespa): +43.65%

Russia (RTS$): +20.03%

India (BSE Sensex 30): +48.84%

China (Shanghai Comp.): +97.94%

Executive Board’s Statement

At the beginning of 2007, the interna-

tional financial markets were looking

forward to another promising year in

an almost unchanged positive envi-

ronment. Then, in mid-July, the crisis

that had been brewing in the US real

estate market for some time abruptly

came to a head, spilling over into the

global financial system. The result was

a widespread confidence crisis. The

major central banks responded by

pumping billions into the financial sys-

tem daily to maintain its liquidity, but

did not fully achieve the calming effect

they had hoped for. It was not until the

Fed, the US central bank, cut its

discount rate in mid-August that

the measures began to take effect,

and the equity markets recovered

significantly from their previous lows.

A sustained slow-down in global

economic growth had already begun,

especially in the US. Many investors

reacted by shifting their investments

into physical assets and commodities.

The markets reflected this develop-

ment in the global economy. The

most important among them became

extremely volatile, but ended the year

in slightly positive territory. In 2007,

only the emerging economies gener-

ated significant returns. Here are some

examples in local currencies, from

January to December 2007:

“Our independence enables us to deliver the best possible client solutions.”Beat Cassani, Relationship Manager

“High expectations are not fulfilled by being met, but rather by being exceeded.”Yvonne Lampart, Treasury Dealer


Private Banking

In the year under review, we succeed-

ed in expanding our private clients

business at both Geneva and Zurich.

Private clients’ assets under manage-

ment rose from CHF 8.4 billion to CHF

9 billion.

Our commission business posted

even stronger growth, with income up

from CHF 84.3 million to CHF 105.4

million. Net income from interest activi-

ties increased from CHF 12.0 million to

CHF 14.6 million.

In a difficult and turbulent market

environment, our top priority in man-

aging our clients’ assets was to pre-

serve capital and reduce volatility.

As the high level of financial market

turbulence continued, we were

successful in benefiting client port-

folios through careful selection of

both our own products and selected

third-party funds. Alternative invest-

ments grew particularly strongly at the

expense of equity exposures.

Market development in Spain and

Germany was specifically targeted for

expansion via small units in Madrid

and Frankfurt. Although our marketing

activities have an international focus,

we have also successfully grown our

Swiss clients business over recent

years.

Our top priority in business devel-

opment is managing our existing

clients. We also believe there are big

opportunities for growth among entre-

preneurs, who have many and com-

plex needs in terms of both advice and

individual solutions. These heightened

expectations can only be met by

highly trained and experienced rela-

tionship managers.

We believe holistic thinking, combined

with discretion and a long-term

approach is key to our relationships

with our clients.

“We focus not on the successes of today, but on the challenges of tomorrow. As we have done for over 200 years.” Béatrice Hirzel Corte, Head of Institutional Marketing

“Independence and know-how form the basis for individual

strategies of the highest standard.”Philipp Bruderer, Analyst & Fund Manager


Institutional Investment

Management & Fund Sales

The activities of the division (SIM

Switzerland) can be divided into fund

management, institutional sales and

marketing, as well as the distribution

of Schroders’ range of Luxembourg-

domiciled funds. The division again

enjoyed strong results and contributed

substantially to the good performance

of the bank.

Fund Management

Our Swiss-based team of fund

managers and analysts is responsible

for the management of Swiss and

European equity as well as balanced

mandates. Intensive local research,

including an extensive company visit

programme, is augmented by the

global research efforts of the Schroder

Group. We are recognised as a leader

amongst local Swiss managers.

In the management of balanced

mandates, we offer state-of-the-art

solutions to a wide variety of Swiss

institutions.

Institutional Sales and Marketing

We are one of the largest foreign-

owned providers of products and

services for the management of pen-

sion fund and other institutional assets

in Switzerland. We manage country-

specific, regional, global and balanced

mandates on a segregated, unitised or

sub-advisory (white label) basis.

“At Schroders we have local roots and a global network – the perfect foundation for genuine premium services.”Stephan Eckstein, Senior Sales Manager

“At Schroders we feel at home anywhere in the world. That creates a bond with our clients.” Csilla Deri, Portfolio Management Assistant


Distribution of Mutual Funds (Retail)

Our mutual funds business made

further progress during the year. We

provide our broad client-base with the

highest level of service. The strong

performance of many of our mutual

funds, the launch of innovative new

products and the strength of the

Schroder brand underpinned our sales

efforts.

Subsidiaries

To enable us to offer the best possible

solutions to the differing needs of our

international clientele, Schroder & Co

Bank AG maintains proven expertise

in a range of related areas. Our subsi-

diary, Schroder Cayman Bank & Trust

Company Limited, supports our clients

in establishing and managing trusts

and foreign-domiciled corporations.

Schroder Trust AG in Zurich, on the

other hand, mainly acts as a trustee

for trusts formed under Anglo-Saxon

law. Both companies contributed

to our Bank’s success in the past

business year.

“Our client strategies are highly individual. Our processes, however, are standardised.”Nadine Steel, Fund Dealer

“Experienced staff and high-perform-ance IT systems mean we can provide

top-quality processes and services.”Rolf Bachmann, IT Infrastructure Analyst


Service Centre Private Banking

The financial year just ended repre-

sents a significant milestone for the

entire operational area of Schroder &

Co Bank AG. Our Service Centre Pri-

vate Banking commenced operations,

while our high-performance IT system

has enabled us to further standardise

and rationalise our processes, such

as client reporting. As a result, our

services can now be extended to

aditional private banking units within

the Schroder Group.

The Service Centre provides rational-

ised business processes to support

Schroder private banking relationship

managers operating internationally

from London, Guernsey, Zurich and

Geneva.

To offer this kind of consistent back-

up, the Service Centre must combine

expertise in dealing with the interna-

tional financial markets with an under-

standing of the characteristics specific

to each country.

Thanks to this combination of global

know-how in areas such as differ-

ences in tax law, regulatory systems

and market practice, relationship

managers can now benefit from or-

ganisational procedures that are highly

automated and take full account of

local circumstances.

The advantage of this innovative

form of organisation for our clients is

obvious: our relationship managers

can focus completely on managing

portfolios and providing a direct and

personalised advice to their clients.

Consolidating these business proc-

esses at one location also generates

considerable synergies. The substan-

tial cost savings that resulted from the

discontinuation of local back offices,

for example, benefited all the compa-

nies concerned, as well as our clients,

in the financial year just ended.

“We are committed to earning our clients’ trust. Every day.”Pierre-Antoine Carron, Relationship Manager

(with Schroders for 21 years)

“Trust and continuity are the crucial elements in our relations with clients.”Slavica Esnault-Pelterie, Relationship Manager

(with Schroders for 19 years)


The basis of this model is the mainte-

nance of an IT infrastructure specifi-

cally tailored to the requirements of

our banks in London, Guernsey and

Switzerland, as well as securities

transaction settlement, management

of all secur ities holdings, processing

of foreign currency transfers and pay-

ments, and the full range of account-

ing and reporting activities – all within

the Service Centre in Zurich. Our mod-

ern Temenos T24 IT platform provides

integrated management and process-

ing for a number of companies, even

with different reference currencies.

Since the start of operations at the

Service Centre in April last year, the

unit increased its headcount to 72,

thus creating a number of new jobs in

Zurich’s financial centre.

Luc Denis

Chairman of the Executive Board

Heinz Scheiwiller

Deputy Chairman of the Executive Board

“Schroders is not an investment banking house. We concentrate on what we do best: managing assets.”Stefano Scanzoni, Advisory Services

“Schroders stands for state-of-the-art know-how backed by over 200 years

of expertise and tradition.”Andrea Foiada, Head of Human Resources

Executive Board Service Centre Private Banking (from the left):Heinz Scheiwiller, Head of Service Centre; Rolf Fischer, Head of IT Business Applications; Markus Engeler, Head of IT Operations; Pierre-Louis Favre, Head of Finance & Treasury; Christian Schmid, Head of Securities & Cash Operations


Balance Sheetas of 31 December 2007

CHF Notes 31.12.2007 31.12.2006

Assets

Liquid assets 16 724 492 16 869 062

Due from banks 417 611 545 179 646 524

Due from clients 3.1 400 783 060 405 040 765

Mortgages 3.1 — 14 833 500

Securities and precious metal trading portfolios 3.2, 3.6 58 806 000 50 519 220

Participations 3.3 1 100 000 1 100 000

Fixed assets 3.4 482 812 1 010 861

Accrued income and prepaid expenses 20 664 895 16 756 430

Other assets 3.5 11 596 921 6 644 827

Total assets 927 769 725 692 421 189

Total due from Group entities and

significant shareholders 171 232 798 948

Liabilities and shareholders’ equity

Due to banks 453 319 896 257 476 687

Due to clients 241 195 076 245 207 207

Accrued expenses and deferred income 48 291 272 36 081 234

Other liabilities 3.5 16 088 249 8 454 234

Valuation adjustments and provisions 3.8 26 481 945 26 757 891

Reserves for general banking risks 3.8 18 000 000 18 000 000

Share capital 3.9, 3.10 20 000 000 20 000 000

General legal reserve 3.10 21 400 000 19 900 000

Other reserves 3.10 42 900 000 38 400 000

Retained earnings brought forward 143 936 83 491

Net income 39 949 351 22 060 445

Total liabilities and shareholders’ equity 927 769 725 692 421 189

Total due to Group entities and

significant shareholders 14 538 625 12 897 943


Off-Balance Sheet Transactionsas of 31 December 2007

CHF Notes 31.12.2007 31.12.2006

Contingent liabilities 3.1, 4.1 110 074 315 72 344 466

Confirmed credits 3.1, 4.2 1 670 952 —

Irrevocable commitments 3.1 1 090 000 1 032 000

Derivative instruments 4.3

– positive replacement values 10 835 222 6 015 428

– negative replacement values 11 619 929 4 518 591

– notional amounts 1 224 322 342 860 570 950

Fiduciary transactions 4.4

– Fiduciary placements with third parties 4 103 262 091 2 826 662 871

– Fiduciary credits 15 223 204 25 886 679


Profit and Loss Accountfor the period from 1 January to 31 December 2007

CHF Notes 2007 2006

a) Revenues and expenses from ordinary banking activities

Results from interest activities

– Interest and discount income 27 056 793 22 472 475

– Interest expenses (12 505 453) (10 478 595)

– Total 14 551 340 11 993 880

Results from commission and service fee activities

– Commission income on lending activities 1 062 929 854 705

– Commission income on securities and investment transactions 114 064 672 91 979 161

– Commission income on other services 841 221 773 730

– Commission expenses (10 584 284) (9 307 021)

– Total 105 384 538 84 300 575

Results from trading operations 5.1 8 870 572 7 207 046

Other ordinary results

– Other ordinary income 4 214 520 —

– Total 4 214 520 —

Operating expenses

– Personnel expenses 5.2 (49 874 593) (43 962 416)

– Other operating expenses 5.3 (30 982 498) (29 795 198)

– Total (80 857 091) (73 757 614)

Gross profit 52 163 879 29 743 887


CHF Notes 2007 2006

b) Net income

Gross profit 52 163 879 29 743 887

Depreciation and write-offs of non-current assets 3.4 (569 048) (625 987)

Valuation adjustments, provisions and losses (474 507) (419 608)

Results before extraordinary items and taxes 51 120 324 28 698 292

Extraordinary income 5.4 391 523 —

Taxes (11 562 496) (6 637 847)

Net income 39 949 351 22 060 445

c) Allocation of retained earnings

Net income 39 949 351 22 060 445

Retained earnings brought forward 143 936 83 491

Total 40 093 287 22 143 936

Retained earnings at the end of the period 40 093 287 22 143 936

Allocation of retained earnings

– Ordinary dividend (24 000 000) (16 000 000)

– Allocation to general legal reserve (2 300 000) (1 500 000)

– Allocation to other reserves (13 600 000) (4 500 000)

Retained earnings carried forward 193 287 143 936


1. Comments on Business Activities

General

Schroder & Co Bank AG is a wholly-

owned subsidiary of Schroders plc,

London. In addition to the head office

in Zurich the Bank has a branch office

in Geneva.

The business activities of the Bank

are described below. There are no

further business activities that would

significantly impact the Bank’s risk

and income situation.

Fee and commission business

The Bank’s principal line of business

is investment management for both

domestic and foreign clients.

Asset management, trustee, custodian

and credit operations are the main

contributors to commission and ser-

vice fee revenues.

Banking activities

The Bank’s main balance-sheet activ-

ities are the client-lending business

and interbank operations.

Loans to clients are mainly granted on

the basis of Lombard coverage.

Trading activities

Trading comprises mainly trading for

the accounts of clients in interest-

rate products, securities and foreign

exchange, and proprietary trading.

Risk management

Interest rate risk

On- and off-balance-sheet interest

rate risk is monitored and managed

centrally by the market risk committee.

It’s management based on the com-

putation of the impact of potential in-

terest rate changes on the discounted

net value of the shareholders’ equity

and on the projected net income ef-

fect.

Other risks

The Bank’s liquidity is monitored and

ensured in accordance with Swiss

banking legislation and group regula-

tions.

Credit risk is monitored separately

by the banking division. The secur-

ities underlying the loans are valued

at market prices. The lending values

are established based on predefined

directives.

Operational risks are limited through

internal guidelines for organisation and

controls. Internal audit periodically re-

views the internal controls and reports

to the Board of Directors.

Outsourcing

The Bank has an outsourcing agree-

ment with the company Biveroni

Batschelet Partners AG (BBP) for run-

ning the interbank applications SIC,

EuroSIC, Swift and Secom. BBP’s

role is limited to providing electronic

access to the above-mentioned inter-

bank services.

Staff

At the end of the business year the

Bank had 155 full- and 14 part-time

employees, for a total of 169 (or 164

full-time equivalent positions; previous

year: 148.2).


2. Principal Accounting Policies and Valuation Principles

Basis of preparation

The accounts are prepared in

accordance with the Swiss Code of

Obligations, the Swiss Federal Law

Governing Banks and Savings Banks,

including its directives, and the Swiss

Federal Banking Commission’s regula-

tions and directives.

All transactions are recorded in the

Bank’s books at the trade date and

valued from that date for the profit

and loss account. Money market and

foreign exchange transactions are

reported off-balance-sheet until the

settlement date. From the settlement

date, these transactions are included

in the balance sheet.

Business risks are covered by ad-

equate value adjustments and provi-

sions.

Detailed principles

The most important accounting

policies and valuation principles are

shown below.

Liquid assets, receivables from banks

and liabilities

These items are stated in the balance

sheet respectively at their nominal

value or at cost less any individual

valuation adjustments required for im-

paired assets.

Loans

Impaired loans, i.e. loans that are un-

likely to be repaid by the debtor, are

valued individually. A specific provision

is made for the estimated shortfall

against nominal value in capital and

interest. Off-balance sheet exposure,

such as commitments, guarantees or

derivative instruments, are also taken

into consideration for this valuation.

Loans are considered as impaired at

the latest when the contractual pay-

ments for capital and/or interest are

overdue for more than 90 days. Inter-

est accrual is suspended if recovering

interest is so unlikely that an accrual

no longer makes sense.

If an outstanding loan is classified as

entirely or partially irrecoverable or

if a renunciation of outstandings is

granted, the outstanding loan is writ-

ten off by debiting the respective loss

provision.

Troubled loans are reclassified as

being of full value when outstanding

amounts of capital and interest are

again paid on time according to the

conditions fixed by contract.

Securities and precious metals

trading portfolio

Actively-traded positions which are

either traded on a recognised stock

exchange or for which a representa-

tive market exists are valued at market

value. Refinancing costs are charged

against trading income. All other trad-

ing positions are valued at the lower of

cost or net realisable value.

Financial Investments

Securities held to generate income

in the medium term are valued at the

lower of cost or net realisable value.

Realised profits or losses from sales

of these securities are included within

“Results from the sale of financial

investments”. Unrealised profits or

losses are included within “Other

ordinary income” or “Other ordinary

expenses”. Debt securities held for

investment are stated at cost, adjusted

for possible premiums or discounts.

Precious metals are valued at market

value.

Participations

Participations are stated at cost, less

any impairment.

Tangible fixed assets

Tangible fixed assets are valued at

cost, less accumulated depreciation.

Depreciation is calculated using the

straight-line method based on useful

life.

The recoverability is reconsidered

each year. Should the useful life

change or the value decrease upon

reconsidering the recoverability, the

remaining book value will be depreci-

ated according to the revised plan, or

an extraordinary depreciation can be

made. In accordance with tax regula-

tions smaller items may be charged

directly to the profit and loss account.

Useful life of the various fixed assets:

Information technology (hardware and

software): 3 years

Cars: 4 years


Foreign currencies

Foreign currency transactions are

translated at the average exchange

rates ruling at the balance sheet date.

Foreign exchange positions in the

balance sheet are translated at the

average exchange rates at the balance

sheet date and taken to the profit and

loss account. Forward foreign ex-

change transactions are valued at the

forward market rates ruling at the bal-

ance sheet date. The valuation result

is taken to the profit and loss account.

The main conversion rates applied are

listed below:

2007 2006

EUR 1.6567 1.6090

GBP 2.2605 2.3925

USD 1.1310 1.2200

JPY 1.0114 1.0250

Valuation adjustments and provisions

Based on the principle of prudence,

the Bank establishes valuation adjust-

ments and provisions within liabilities

for contingent risks. The valuation ad-

justments and provisions may contain

undisclosed reserves.

Taxes

Current tax is generally tax on profit

and recurs on an annual basis. One-

off or transaction taxes are not con-

sidered as current tax.

Current tax on earnings is included

as expense of the period in which the

earnings are recognized. Tax liabilities

are shown under “Accrued expenses

and deferred income”.

Derivative financial instruments

Derivative financial instruments are

used by the Bank for asset and liability

management and for securities and

foreign exchange dealing. They are

used both for proprietary trading and

for trading for the accounts of clients.

Valuation is in accordance with the

purposes for which they were origin-

ally acquired.

1) Derivative trading positions

These derivatives are marked to mar-

ket. Positive and negative replacement

values are included within “Other

assets” or “Other liabilities”. Profits and

losses are included within “Result from

trading operations”.

2) Derivative financial investments

These derivatives are acquired by the

Bank instead of direct investments. In

accordance with the accounting policy

for financial investments, these posi-

tions are valued at the lower of cost

or net realisable value. Any interest in-

come components are included within

“Interest and dividend income from

financial investments”. Realised profits

or losses are included within “Result

from the sale of financial investments”.

3) Derivatives for hedging purposes

Derivative transactions concluded

for hedging purposes are valued and

booked on a basis consistent with the

underlying transactions.

Liabilities to own pension plans

The employees of Schroder & Co

Bank AG benefit from two defined

contribution pension plans. The

“BVG Stiftung” grants a minimum of

the benefits mandatory by law. The

“Vorsorgestiftung” of Schroder & Co

Bank AG grants benefits for that part

of the salary above the limit of the

BVG law. The employer’s contributions

according to the defined contribu-

tion pension plans are included within

“Personnel expenses”.


3. Information on the Balance Sheet

3.1 Schedule of collateral for loans and off-balance sheet transactions

CHF 1000 Type of Collateral

Mortgage Other Without Total collateral collateral collateral

Loans

Due from clients — 387 216 13 567 400 783

Total 31.12.2007 — 387 216 13 567 400 783

31.12.2006 14 834 394 155 10 886 419 875

Off-balance-sheet transactions

Contingent liabilities 8 891 100 232 951 110 074

Confirmed credits — 1 671 — 1 671

Irrevocable commitment to the Swiss

Bankers’ and Securities Dealers’

Deposit Guarantee Association, Basel — — 1 090 1 090

Total 31.12.2007 8 891 101 903 2 041 112 835

31.12.2006 — 72 089 1 287 73 376

Gross Estimated Net Specific amount collateral amount provision proceeds

Impaired loans 31.12.2007 632 — 632 632

31.12.2006 547 — 547 547

3.2 Securities and precious metals trading portfolios

CHF 1000 31.12.2007 31.12.2006

Interest bearing securities and rights

– Exchange traded 58 806 50 519

Total 58 806 50 519

of which qualify as repos as defined in the liquidity rules 58 806 50 519

(Trading positions in derivatives are included under 4.3)


3.3 Participations

CHF 1000 31.12.2007 31.12.2006

Without market value 1 100 1 100

Total 1 100 1 100

Additional information on significant participations

Share Ownership OwnershipCompany Name Business activities Capital proportion proportion

Schroder Trust AG, Zurich Trust and offshore

company administration CHF 100 000 100% 100%

Schroder Cayman Bank Banking services and

and Trust Company Ltd., trust and offshore

Cayman Islands company administration USD 633 714 100% 100%

3.4 Assets and participations

CHF 1000 31.12.2006 31.12.2007

Historical Accumulated Book value Additions Disposals Depreciation Book value cost Depreciation

Total majority participations 1 100 — 1 100 — — — 1 100

Other fixed assets 6 069 (5 058) 1 011 41 — (569) 483

Total 7 169 (5 058) 2 111 41 — (569) 1 583

Fire insurance value of other

fixed assets 14 610

Liabilities: future operational

lease commitments 15 108


3.5 Other assets and other liabilities

CHF 1000 31.12.2007 31.12.2006

Other assets Other liabilities Other assets Other liabilities

Replacement costs of derivative instruments 10 835 11 620 6 015 4 519

Indirect taxes and stock exchange fees 501 3 987 515 3 670

Other assets and liabilities 261 481 115 265

Total 11 597 16 088 6 645 8 454

3.6 Assets pledged or ceded to secure own liabilities and assets subject to ownership reservation

CHF 1000 31.12.2007 31.12.2006

Assets pledged Effective liability Assets pledged Effective liability (Book value) (Book value)

Own securities 58 806 3 866 50 519 4 862

There are no loans nor pension transactions with securities.


3.7 Pension plans

CHF 1000 31.12.2007 31.12.2006

The liablities due to own pension plans at the balance

sheet date amounted to: 6 640 3 141

According to the pension fund regulations, the employer pays total contributions and benefits equivalent to 15% of the relevantsalary whereas the employees contribute 5% of that salary.

CHF 1000 31.12.2007 31.12.2006

As per the most recent audited financial statements of the BVG-Stiftung

(mandatory pension plan) and the Vorsorgestiftung (non-mandatory pension plan)

of Schroder & Co Bank AG at 31.12.2007, the employer contribution

reserves at period end were: 2 955 2 904

Schroder & Co Bank AG guaranteed in writing to the bank’s Vorsorgestiftung (i.e., the non-mandatory pension plan) that any losses the planincurs which are not offset by plan gains within a three year period will be compensated by the bank through a corresponding reduction in thebank’s employer contribution reserves. The guarantee did not result in any liability as of the balance sheet date.

Pension plan surpluses at the balance sheet date

CHF 1000 31.12.2007 31.12.2006

Schroder & Co Bank AG BVG Stiftung (mandatory pension plan) 129 128

Schroder & Co Bank AG Vorsorgestiftung (non-mandatory pension plan) 7 1

The surpluses correspond to the excess of the plan assets over the plan liabilities as of the balance sheet date including the employer contribution reserves ceded by the bank. The accounts of the individual plan members were credited with TCH 13 320 out of the unencumbered plan assets.

Contributions to pension funds / pension and related benefits expense

CHF 1000 2007 2006

The bank’s total contributions to both pension plans for the year amounted to: 4 123 3 864

The bank’s total pension and related benefit expenses (including old age and

survivors’ insurance, disability insurance, unemployment insurance and other

mandatory contributions) for the year amounted to: 5 981 5 411


3.8 Valuation adjustments, provisions and reserves for general banking risks

CHF 1000

Balance Specific Change in Recoveries, New provisions Reversals Balance 31.12.2006 usage and definition of overdue interest, charged to credited to 31.12.2007 reversals purpose (re- exchange rate Profit & Loss Profit & Loss classifications) differences statement statement

Loan losses (credit and

country risk) 547 — — — 119 (34) 632

Other provisions 26 211 — — (3) — (358) 25 850

Valuation adjustments

and provisions 26 758 — — (3) 119 (392) 26 482

Reserves for general

banking risks (fully taxed) 18 000 — — — — — 18 000

3.9 Capital structure and shareholders

The share capital amounts to CHF 20 million and is split into 20 000 shares of CHF 1000 nominal value each.

At 31 December 2007 all shares are held directly by Schroder Nederland Finance BV, Amsterdam. That company is ultimately

wholly-owned by Schroders plc, London.

On 8th March 2007 Schroders plc has been notified pursuant to “FSA’s Disclosure and Transparency Rule 5.1.2 R” of the

following interests of 3% or more in the ordinary shares:

Shares Schroders plc Stake

Vincitas Limited 62 861 892 27.81%

Veritas Limited 37 308 464 16.51%

Flavida Limited 62 861 892 27.81%

Fervida Limited 38 278 700 16.94%

Harris Associates L.P. 16 204 595 7.17%

Vincitas Limited and Veritas Limited held their interests as trustees of certain settlements made by members of the Schroder family. The interests of Flavida Limited and Fervida Limited include interests in voting rights in respect of all the shares in which Vincitas Limited and Veritas Limited are interested as trustees.


3.10 Statement of changes in shareholders’ equity (before profit distribution)

CHF 1000

Shareholders’ equity at the beginning of 2007

Share capital 20 000

General legal reserve 19 900

Other reserves 38 400

Reserves for general banking risks 18 000

Retained earnings brought forward 22 144

Total shareholders’ equity at the beginning of 2007 118 444

Movements

Dividend 2006 (16 000)

Deduction from available earnings (6 000)

Allocation to legal reserve 1 500

Allocation to other reserves 4 500

Net income 2007 39 949

Total shareholders’ equity at the end of 2007 142 393

Share capital 20 000

General legal reserve 21 400

Other reserves 42 900

Reserves for general banking risks 18 000

Retained earnings carried forward 40 093


3.11 Maturity structure of working capital and liabilities

CHF 1000 At sight Redeemable Maturities Total upon notice

Up to From From Beyond 3 months 3 to 12 12 months 5 years months to 5 years

Assets

Cash 16 724 — — — — — 16 724

Due from banks 248 814 — 168 797 — — — 417 611

Due from clients 3 589 67 080 255 871 73 924 320 — 400 784

Mortgages — — — — — — —

Securities and precious

metal trading portfolios 58 806 — — — — — 58 806

Total 31.12.2007 327 933 67 080 424 668 73 924 320 — 893 925

31.12.2006 96 097 132 197 319 813 108 543 10 259 — 666 909

Liabilities

Due to banks 182 892 — 195 916 74 512 — — 453 320

Due to clients 218 479 13 486 9 230 — — — 241 195

Total 31.12.2007 401 371 13 486 205 146 74 512 — — 694 515

31.12.2006 233 487 7 162 190 214 71 499 — — 502 362

3.12 Amounts due from and due to affiliated companies as well as loans and exposures to members of the bank’s governing bodies

CHF 1000 31.12.2007 31.12.2006

Due from affiliated companies — 4 752

Due to affiliated companies 3 613 1 047

Loans and exposures to members of the bank’s governing bodies 2 523 1 159

With related parties the bank engages in securities and money market transactions and applies interest rates at conditions applicable to third parties. Members of the Board of Management and of the Board of Directors are granted the conditions and tariffs applicable to staff members of the bank.


3.13 Assets and liabilities by domestic and foreign origin

CHF 1000 31.12.2007 31.12.2006

Domestic Foreign Domestic Foreign

Assets

Cash 16 724 — 16 869 —

Due from banks 74 947 342 664 23 780 155 867

Due from clients 127 528 273 257 113 395 291 645

Mortgages — — — 14 834

Securities and precious metal trading portfolios 58 806 — 50 519 —

Participations 100 1 000 100 1 000

Fixed assets 483 — 1 011 —

Accrued income and prepaid expenses 18 680 1 984 15 184 1 572

Other assets 2 837 8 760 4 215 2 430

Total 300 105 627 665 225 073 467 348


Due to banks 19 925 433 395 32 473 225 004

Due to clients 91 244 149 951 79 371 165 837

Accrued expenses and deferred income 46 135 2 156 34 543 1 538

Other liabilities 7 242 8 847 5 250 3 204

Valuation adjustments and provisions 26 482 — 26 758 —

Reserves for general banking risks 18 000 — 18 000 —

Share capital 20 000 — 20 000 —

General legal reserve 21 400 — 19 900 —

Other reserves 42 900 — 38 400 —

Retained earnings brought forward 144 — 83 —

Net income 39 949 — 22 060 —

Total 333 421 594 349 296 838 395 583


3.14 Assets by countries / country groups

CHF 1000 31.12.2007 31.12.2006

Total in % Total in %

Assets

Europe

– Germany 22 329 2.4 39 032 5.6

– United Kingdom 229 155 24.7 50 059 7.2

– Switzerland 300 104 32.4 225 073 32.5

– Rest of Europe 137 098 14.8 172 200 24.9

Total Europe 688 686 74.3 486 364 70.2

North America 50 529 5.4 29 183 4.2

Asia 10 211 1.1 17 777 2.6

Other countries 178 344 19.2 159 097 23.0

Total 927 770 100.0 692 421 100.0


3.15 Assets by currencies

CHF 1000 31.12.2007

Currencies CHF EUR USD Precious Other Total metals

Assets

Cash 14 579 1 761 136 — 249 16 725

Due from banks 104 940 232 754 40 948 20 267 18 704 417 613

Due from clients 85 875 154 494 129 814 — 30 598 400 781

Mortgages — — — — — —

Securities and precious

metal trading portfolios 58 806 — — — — 58 806

Participations 1 100 — — — — 1 100

Fixed assets 483 — — — — 483

Accrued income and prepaid expenses 17 670 1057 1060 — 878 20 665

Other assets 11 463 58 73 — 3 11 597

Total balance sheet assets 294 916 390 124 172 031 20 267 50 432 927 770

Assets deriving from FX spot,

FX forward and FX option transactions 196 452 381 808 501 131 — 144 931 1 224 322

Total assets 491 368 771 932 673 162 20 267 195 363 2 152 092


Due to banks 37 021 284 300 114 259 — 17 739 453 319

Due to clients 59 927 61 831 79 514 20 267 19 656 241 195

Accrued expenses and deferred income 45 846 1 180 1 168 — 98 48 292

Other liabilities 15 932 22 7 — 128 16 089

Valuation adjustments and provisions 26 482 — — — — 26 482

Reserves for general banking risks 18 000 — — — — 18 000

Share capital 20 000 — — — — 20 000

General legal reserve 21 400 — — — — 21 400

Other reserves 42 900 — — — — 42 900

Retained earnings brought forward 144 — — — — 144

Net income 39 949 — — — — 39 949

Total balance sheet liabilities 327 601 347 333 194 948 20 267 37 621 927 770

Liabilities deriving from FX spot,

FX forward and FX option transactions 166 569 424 317 478 094 — 155 984 1 224 964

Total liabilities 494 170 771 650 673 042 20 267 193 605 2 152 734

Net position by currency (2 802) 282 120 — 1 758 (642)


4. Information on Off-Balance Sheet Transactions

4.1 Contingent liabilities

CHF 1000 31.12.2007 31.12.2006

Credit guarantees 78 985 63 841

Irrevocable commitments 31 089 8 503

Total 110 074 72 344

4.2 Confirmed credits

CHF 1000 31.12.2007 31.12.2006

Obligations under deferred payments 1 671 —

4.3 Outstanding derivative instruments

CHF 1000

Positive Negative Contract replacement replacement volume values values

Foreign exchange

Forward contracts 10 835 11 620 1 224 322

Options (OTC) — — —

Total 31.12.2007 10 835 11 620 1 224 322

Total 31.12.2006 6 015 4 519 860 571

The above outstanding derivative instruments are held for trading purposes.There are not any netting agreements in place.

Outstanding derivative instruments by counterparties

CHF 1000 31.12.2007 31.12.2006

Positive Negative Contract Positive Negative Contract replacement replacement volume replacement replacement volume values values values values

Banks 3 623 2 841 320 030 3 072 1 236 322 925

Non banks 7 212 8 779 904 292 2 943 3 283 537 646

Total 10 835 11 620 1 224 322 6 015 4 519 860 571


4.4 Fiduciary transactions

CHF 1000 31.12.2007 31.12.2006

Fiduciary deposits

Fiduciary deposits in CHF 93 539 68 230

Fiduciary deposits in European currencies 3 163 616 1 961 002

Fiduciary deposits in USD 827 133 786 177

Fiduciary deposits in other currencies 18 974 11 254

Total 4 103 262 2 826 663

Fiduciary credits

Fiduciary credits in CHF 600 600

Fiduciary credits in European currencies 2 635 6 255

Fiduciary credits in USD 11 988 19 032

Total 15 223 25 887

All fiduciary deposits at year-end were concluded with banks outside of the Schroder Group.

4.5 Funds under management

CHF 1000 31.12.2007 31.12.2006

Assets in own managed investment funds 1 536 023 1 920 816

Assets under discretionary management 4 201 084 3 846 806

Assets subject to other management 8 439 403 7 988 907

Total funds under management (including double counting) 14 176 510 13 756 529

of which double counting 93 326 103 736

Total funds under management (excluding double counting) 14 083 184 13 652 793

of which Private Banking 9 087 155 8 370 325

of which Institutional Business 4 996 029 5 282 468

Net inflow/outflow of assets:

– Private Banking 420 052 586 516

– Institutional Business (604 395) (739 709)

Total net inflow/outflow of assets (184 343) (153 193)

– of which group-internal transfers (Institutional Business) — (790 313)

The bank does not hold any custody-only assets. Debit interest on current account overdrafts is treated as negative performance, while interest charged on Lombard loans is a cash outflow. The bank calculates performance according to the direct method.

The institutional funds under management reported above exclude Swiss institutional and wholesale clients managed by other Schroder Group entities and not under custody at Schroder & Co Bank AG.


5. Information on the Profit and Loss account

5.1 Results from trading operations

CHF 1000 2007 2006

Securities (9) (320)

Foreign exchange 8 880 7 527

Total 8 871 7 207

5.2 Personnel expenses

CHF 1000 2007 2006

Authorities, meeting compensations and fixed compensations 210 150

Salaries and extras 41 070 36 642

Social security contributions 1 613 1 547

Pension plan contributions 4 368 3 864

Other personnel expenses 2 614 1 759

Total 49 875 43 962

5.3 Operating expenses

CHF 1000 2007 2006

Occupancy expenses 6 381 5 263

Expenses for EDP, machinery, fixtures and fittings,

vehicles and other equipment 5 658 9 765

Other operating expenses including:

Telephone, telex, postage, electronic information systems,

legal and other consulting fees, stationery and printing,

courier services, property insurance, travel and entertainment,

publication and advertising, audit, other costs 18 943 14 767

Total 30 982 29 795

5.4 Extraordinary income

The extraordinary income in 2007 arose from the reversal of legal proceeding provisions no longer required.


Report of the Statutory Auditors

Report of the statutory auditors to the general meeting of

Schroder & Co Bank AG, Zurich

As statutory auditors, we have audited the accounting records and the financial

statements (balance sheet, income statement and notes) of Schroder & Co

Bank AG for the year ended 31 December 2007.

These financial statements are the responsibility of the Board of Directors.

Our responsibility is to express an opinion on these financial statements based

on our audit. We confirm that we meet the legal require ments concerning

professional qualification and independence.

Our audit was conducted in accordance with Swiss Auditing Standards, which

require that an audit be planned and performed to obtain reasonable assurance

about whether the financial statements are free from material misstatement.

We have examined on a test basis evidence supporting the amounts and disclo-

sures in the financial statements. We have also assessed the accounting princi-

ples used, significant estimates made and the overall financial statement pres-

entation. We believe that our audit provides a reasonable basis for our opinion.

In our opinion, the accounting records and financial statements and the pro-

posed appropriation of available earnings comply with Swiss law and the com-

pany’s articles of incorporation.

We recommend that the financial statements sub mitted to you be approved.

PricewaterhouseCoopers AG

Rolf Birrer, Auditor in charge

Roman Berlinger

Zurich, 26. February 2008


Corporate and Social Responsibility

The Board of Directors, manage-

ment and staff of Schroder & Co

Bank AG recognise the importance

of corporate and social responsibil-

ity to investors, the community at

large and those in whom it invests.

Charitable Donations

Social responsibility plays a very im-

portant role in the Bank’s business

activities. The Executive Board itself,

together with an internal Charity Com-

mittee, undertakes the task of decid-

ing on charitable donations by the

Bank. In addition, voluntary donations

by staff members to local charities are

matched one-to-one by the Bank.

As in previous years, we made con-

tributions to several local charities.

Employees and the Bank together

donated most of the funds required for

a “Seehalde” charity holiday camp for

people with multiple disabilities. Along

with many others, we donated to

“Castagna”, a support centre for sexu-

ally abused children and adolescents,

the Children’s Fund, “Sternschnuppe”

and “Tixi Taxi”, a local organisation

which provides transport for handi-

capped people.

Schroder & Co Bank AG has been

a main sponsor of Special Olympics

Switzerland, a charitable foundation

which organises and supports sports

activities for handicapped people for

several years. The Bank is represented

on the foundation’s board by Stephen

Mills, a Member of the Executive

Board of the Bank.

More about the above-mentioned

organisations can be found at:

† www.seehalde.ch

† www.castagna-zh.ch

† www.sternschnuppe.ch

† www.tixi.ch

† www.specialolympics.ch


We nurture talent

Since 2005 Schroder & Co Bank AG

has been sponsoring “Team Schrod-

ers”, a programme to support Swiss

youngsters who are talented in sports.

Through this programme, talented

youngsters are selected by a jury of

sports personalities (former or cur-

rent Olympic gold medallists or world

champions). Each jury member also

acts as a mentor to the youngster se-

lected in his or her respective sport.

Schroder & Co Bank AG supports

each youngster with CHF 10 000, and

the most successful amongst them

during the year wins a bonus of the

same amount. The jury members and

nominees for 2008 are:

More about “Team Schroders”

† www.team-schroders.ch

Sport Jury & Mentor Team Schroders 2007 Team Schroders 2008

Skiing Bernhard Russi (Jury-Präsident) Gabriel Anthamatten (1991) Reto Schmidiger (1992)

Orienteering Simone Niggli-Luder Matthias Kyburz (1990) Florian Howald (1991)

Fencing Marcel Fischer Antoine Varrenne (1990) Lara Imhof (1991)

Mountain biking Thomas Frischknecht Vivienne Meyer (1990) Michelle Hediger (1991)

Photos: Laurent Bleuze, Special Olympics Switzerland


Board and Senior Staff

Board of Directors

Philip S. Mallinckrodt,

Chairman

Jonathan Asquith,

Deputy Chairman

Dr. François R. Bochud

Dr. Martin K. Eckert

Jean-Claude Marchand

Jean-Charles Roguet

George W. Mallinckrodt,

KBE, Honorary Chairman

Executive Board

Luc Denis,

Chairman of the Executive Board,

Head of Private Banking

Heinz Scheiwiller,

Deputy Chairman of the Executive Board,

Head of Service Centre Private Banking

Stephen J. Mills,

Member, Head of Schroder Investment

Management (SIM) Switzerland

Rudolf Stäger,

Member, Head of Private Banking Zurich

Senior Management

Otto J. Amberg,

Alexis André,

Beat Bochsler,

Norbert Brestel,

Pierre-Antoine Carron,

Beat Cassani,

Ann Daverio,

Jean-Fabrice della Volpe,

Reto Dietrich,

Stephan Eckstein,

Markus Engeler,

Slavica J. Barovic Esnault-Pelterie,

Pierre-Louis Favre,

Rolf Fischer,

Stefan Frischknecht,

Karl Gallmann,

Enrique Gil,

Roland Heule,

Gregor Hirt,

Béatrice Hirzel Corte,

Jean-Jacques Hunziker,

Jürg Klingler,

Bernhard H. Leibkutsch,

Daniel Lenz,

Samuel Moulin,

Werner Niedermann,

Stephan Ochsner,

Andreas Pletscher,

Christoph Portmann,

Dr. Alois Rimle,

Christian Schmid,

Ulysse-Oliver Traub,

Urs Winiger,

Antonio Winspeare Guiccardi,

Stephan Zumsteg

External Auditors

PricewaterhouseCoopers AG,

Zurich


Main Schroder Branches

GROUP’S HEAD OFFICE

United KingdomSchroders plc31 Gresham Street, London EC2V 7QATel + 44 207 658 60 00www.schroders.com

Schroder Investment Management Limited31 Gresham Street, London EC2V 7QATel + 44 207 658 60 00

Schroder & Co. Limited100 Wood Street, London EC2V 7ERTel + 44 207 658 60 00

Schroder Investments Limited 33 Gutter Lane, London EC2V 8ASTel + 44 207 658 60 00

EUROPE

AustriaSchroders Investment Management GmbHRepräsentanzAm Stadtpark 1, 1030 WienTel + 43 (0)1 990 63 84

Channel IslandsSchroder Investment Management (Guernsey) LimitedTrafalgar Court, Les Banques, St. Peter Port, Guernsey, GY1 3QLTel + 44 (0)1481 71 06 51

Schroders (C.I.) LimitedRegency Court Glategny EsplanadeSt. Peter Port, Guernsey, GY1 3UFTel + 44 (0)1481 70 37 00

Schroders (C.I.) Limited2–6 Church Street, St. HelierJersey, JE4 9WBTel + 44 (0)1534 75 66 00

DenmarkSchroder Investment Management Fondsmæglerselskabet A/SStore Strandstræde 211255 KøbenhavnTel + 45 33 15 18 22

GermanySchroder Investment Management GmbHMainzer Landstrasse 1660325 Frankfurt am MainTel + 49 (0)69 97 57 17 0

Schroder & Co LimitedMainzer Landstrasse 1660325 Frankfurt am MainTel + 49 (0)69 97 57 17 120

Schroder Property Investment Management GmbH (SPrIM)Wilhelmstrasse 765185 WiesbadenTel +49 (0)611 20 50 61 21

FranceSchroder Investment Management Limited8 –10 rue Lamennais, 75008 ParisTel + 33 (0)1 53 85 85 85

ItalySchroders Italy SIM S.p.A.Via della Spiga 30, 20121 MilanoTel + 39 02 76 37 71

Schroders Italy SIM S.p.A. Piazzetta Bettiol 15, 35137 PadovaTel + 39 049 876 57 76

Schroders Italy SIM S.p.A.Via del Babuino 169, 00187 RomaTel + 39 06 321 83 68

LuxembourgSchroder Investment Management (Luxembourg) S.A.5 rue Höhenhof, 1736 SenningerbergTel + 352 341 342 202

NetherlandsSchroder Investment ManagementBenelux N.V.Waldeck Pyrmontlaan 131075 BT AmsterdamTel + 31 (0)20 305 28 40

PortugalSchroder Investment Management LimitedAvenida da Liberdade 180-EEdifi cio Tivoli Forum, 1250-146 LisboaTel + 351 21 330 89 00

SwedenSchroder Investment Management Fondsmæglersgelskab A/SSveavägen 9, 11157 StockholmTel + 46 (0)8 678 40 10

SwitzerlandSchroder & Co Bank AG Central 2, 8001 ZürichTel + 41 (0)44 250 11 11

Schroder & Co Bank AGService Centre Private BankingPfi ngstweidstrasse 608005 ZürichTel +41 (0)44 250 11 11

Schroder & Co Banque SA8, rue d’ltalie, 1204 GenèveTel + 41 (0)22 818 41 11

SpainSchroder Investment Management LimitedCalle Pinar 7, 28006 MadridTel + 34 91 590 95 41

Schroders & CoCalle Pinar 7, 28006 MadridTel +34 91 590 95 31


AMERICAS

ArgentinaSchroder Investment Management S.A.Ing. Enrique Butty 220C1001AFB - Buenos AiresTel +54 11 43 17 13 00

BermudaSchroders (Bermuda) Limited131 Front Street, Hamilton HM 12Tel +1 441 292 49 95

BrazilSchroder Investment ManagementBrasil S.A.Rua Joaquim Floriano, 72São Paulo, SP, Brazil 04534-000Tel +55 11 30 54 51 55

Cayman IslandsSchroder Cayman Bank and Trust Company LimitedPO Box 1040 GT, Harbour CentreGrand Cayman, British West IndiesTel +1 345 949 28 49

MexicoSchroder Investment Management, S.A. de C.V.Avenida Paseo de Las Palmas 425Col. Lomas de ChapultepecMéxico, D.F., 11000Tel +52 55 11 00 10 30

USASchroder Investment Management North America Inc.875 Third AvenueNew York, NY 10022-6225Tel +1 212 641 38 30

Schroder Investment Management The Curtis CentreIndependence Square WestPhiladelphia, PA 19106Tel +1 215 861 09 97

ASIA / PACIFIC

AustraliaSchroder Investment ManagementAustralia Limited123 Pitt Street, Sydney, NSW 2000Tel +61 (0)2 92 10 92 00

ChinaSchroders plc 7 Finance StreetXicheng District, Beijing 100034Tel +86 10 66 55 53 88

Schroders plc 1000 Lujiazui, Ring RoadPudong, Shanghai 200120Tel +86 21 68 41 19 88

Schroder Investment Management (Hong Kong) LtdTwo Pacifi c Place, 88 QueenswayHong Kong SARTel +852 25 21 16 33

IndonesiaPT Schroder Investment Management IndonesiaJakarta Stock Exchange BuildingJl. Jend. Sudirman Kav. 52–53,Jakarta 12190Tel +62 21 515 01 01

JapanSchroder Investment Management (Japan) LimitedPacifi c Century Place Marunouchi1-11-1 Marunouchi, Chiyoda-ku, Tokyo 100-6224Tel +81 (0)3 52 93 15 00

KoreaSchroders Korea LimitedSeoul Finance Centre, 84 Taepyungro 1ga Chung-gu, Seoul 100-768Tel +82 2 37 83 05 00

SingaporeSchroder Investment Management (Singapore) Limited65 Chulia Street, #47-01, OCBC CentreSingapore 049513Tel +65 65 35 34 11

Schroder & Co. (Asia) Limited11 Beach Road #06-01Singapore 189675Tel +65 65 07 01 23

TaiwanSchroder Investment Consulting Company Limited 2F, Suite B1, 108, Sec.5, Hsin-Yi Road,Hsin-Yi District, Taipei 11047, Taiwan, R.O.CTel +886 2 27 22 18 68

MIDDLE EAST

DubaiSchroder Investment Management LimitedDubai International Financial CentreP.O. Box 506612DubaiTel +971 50 653 82 75

Head Office

Schroder & Co Bank AG

Central 2, 8001 Zürich

Postfach 1820, 8021 Zürich

Service Centre Private Banking

Pfingstweidstrasse 60, 8005 Zürich

Postfach 2222, 8031 Zürich

Tel +41 (0)44 250 11 11

Fax +41 (0)44 250 13 12

www.schroders.ch

[email protected]

Branch Office

Schroder & Co Banque SA

8, rue d’Italie, 1204 Genève

Case postale 3655, 1211 Genève 3

Tel +41 (0)22 818 41 11

Fax +41 (0)22 818 41 12

Subsidiary Companies

Schroder Cayman Bank and

Trust Company Limited

P.O. Box 1040, Harbour Centre

Grand Cayman, B.W.I.

Tel +1 345 949 28 49

Fax +1 345 949 54 09

Schroder Trust AG

Central 2, 8001 Zürich

Tel +41 (0)44 250 14 00

Fax +41 (0)44 250 12 66

Documents

Annual Report 2007 - Schroders · dividend of CHF 24 million. At the same time it also proposes to allocate CHF 2.3 million (previous year: CHF 1.5 million) to the “General legal