T. Rowe Price Group, Inc. · NASDAQ:TROW
T. Rowe Price — Shareholder Meeting (May 2023)
16 slides from T. Rowe Price's shareholder meeting presentation, May 9, 2023
Slide 1: Annual Meeting of Stockholders
Annual Meeting of Stockholders May 9, 2023 A copy of this presentation is available at investors.troweprice.com. Data as of March 31, 2023, unless otherwise noted. All figures are USD, unless otherwise noted. T. ROWE PRICE GROUP, INC.
Slide 2: Forward-looking statements
Forward-looking statements This presentation, and other statements that T. Rowe Price may make, may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act, with respect to T. Rowe Price’s future financial or business performance, strategies, or expectat
Slide 3: A global asset management firm focused on client success
A global asset management firm focused on client success Founded in 1937 Independent Alignment Financial Investment of Interests Strength Organization We are a publicly We maintain substantial in assets under We are focused owned company with cash reserves $1.34 T management¹ solely on investment si
Slide 4: A confluence of secular and transitory factors impacted our results in 2022
A confluence of secular and transitory factors impacted our results in 2022 Secular Factors Transitory Factors “Barbelling” flows to passive, Market declines in equities and bonds alternatives Value/growth rotation Fee pressures and vehicle migration Performance challenges More concentra
Slide 5: We have been investing in areas where we have scaled businesses to support future growth
We have been investing in areas where we have scaled businesses to support future growth $25.9 B fixed income 5-year net flows Investing in our fixed income and multi-asset capabilities target date Sustaining our leadership position in retirement $39.3 B retirement 5-year net flows Acceleratin
Slide 6: Investment performance remains critical to our success
Investment performance remains critical to our success U.S. mutual funds outperforming peers Composites outperforming benchmarks Morningstar median rankings1 Composite net returns2 76% 71% 61% 66% Top 51% 50% Quartile Second Quartile 3 years 5 years 10 years 3 years 5 years 10 years Past performance
Slide 7: Assets Under Management
Assets Under Management $1,688 $1,471 AUM 10-YR CAGR $1,342 Ending AUM ($B) $1,207 $1,275 Total AUM 8% $991 $962 $763 $811 $747 $692 $577 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Mar-2023 Firmwide AUM includes assets managed by T. Rowe Price Associates, Inc. and its investment advisory
Slide 8: Consistent results and long-term orientation
Consistent results and long-term orientation 5 Years 10 Years 20 Years 30 Years Net Revenues 6% 8% 10% 12% Diluted EPS (GAAP) 2% 7% 12% 14% Dividends 16% 13% 14% 17% Annualized Total Stock Return 4% 9% 14% 15% Past performance cannot guarantee future results. Compound annualized growth for periods e
Slide 9: Challenges in 2022 created headwinds for financial performance, but first quarter shows some encouraging signs
Challenges in 2022 created headwinds for financial performance, but first quarter shows some encouraging signs As of December 31 As of March 31 2022 2021 Change 1Q23 1Q22¹ Change Net Revenues (M) $6,488 $7,672 (15%) $1,538 $1,863 (18%) Adjusted Earnings per Share* $8.02 $12.75 (37%) $1.69 $2.62 (36%
Slide 10: Balance sheet remains strong
Balance sheet remains strong Balance Sheet Items December 31, December 31, March 31, (At 12/31 unless noted, $M USD except per share amounts) 2017 2022* 2023* Cash and Discretionary Investments $2,166 $2,205 $2,558 Seed Capital Investments $1,344 $1,120 $1,147 Debt $0 $103 $102 Stockholders’ Equity
Slide 11: Regularly return capital to stockholders
Regularly return capital to stockholders Through December 31, 2022 1 Year 5 Years 10 Years ($millions) ($millions) ($millions) Dividends $1,109 $5,086 $8,108 Recurring 1,109 4,386 6,884 Special - 700 1,224 Share Repurchases 855 4,992 7,554 Total $1,964 $10,078 $15,662 Percent of Earnings 127% 92% 97
Slide 12: We continue to focus on delivering for our clients and investing for long-term growth
We continue to focus on delivering for our clients and investing for long-term growth while managing through dynamic markets Diversify and expand Pursue investment Globalize and grow Deliver world-class our investment excellence our client base client service capabilities Focus on performance, Expan
Slide 13: Adding a private markets platform through acquisition of OHA supports long-term growth
Adding a private markets platform through acquisition of OHA supports long-term growth We achieved our 2022 objectives Strategic rationale and are encouraged by the long-term opportunity with OHA Growing demand for alternative credit Sustaining investment performance for clients OHA has a 30-y
Slide 14: Investing in our communities
Investing in our communities Our approach to supporting community focuses on expanding opportunities for all. We expand opportunities for all by breaking down barriers to advance growth, learning, and uplifting one another in the community. Our efforts come to life through financial support, service
Slide 15: Q&A
Q&A T. ROWE PRICE GROUP, INC.
Slide 16: Reconciliation between GAAP and adjusted (non-GAAP) EPS
Reconciliation between GAAP and adjusted (non-GAAP) EPS 2022 2021 1Q23 1Q22 Diluted Earnings per Common Share, GAAP Basis $6.70 $13.12 $1.83 $2.41 Non-GAAP Adjustments: Consolidated T. Rowe Price investment products .33 (.16) (.07) .13 Supplemental Savings Plan liability .02 – (.01) .01 Acquisition-