T. Rowe Price Group, Inc. · NASDAQ:TROW
T. Rowe Price — Shareholder Meeting (May 2021)
17 slides from T. Rowe Price's shareholder meeting presentation, May 11, 2021
Slide 1: Annual Meeting of Stockholders
Annual Meeting of Stockholders May 11, 2021 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 Independent Investment Organization Founded in 1937 We are focused solely on investment management and related services Alignment of Interests 1.52 trillion USD We are a publicly owned company with substantial employee ownership in assets
Slide 4: Diversity, equity, and inclusion - strategic enablers for our business
Diversity, equity, and inclusion - strategic enablers for our business 2020-21 Progress 29% of our U.S. associates are ethnically diverse Onboarded new Global Head of DEI and expanded the team under his leadership Executed strategy to improve representation of under-represented minorities and wo
Slide 5: Consistent results and long-term orientation
Consistent results and long-term orientation As of December 31 $12.00 5 10 20 30 years years years years $10.00 $9.98 Diluted Net revenues 8% 10% 9% 13% EPS $8.00 (GAAP) Diluted EPS 17% 15% 12% 17% $6.00 (GAAP) $4.00 $3.60 Dividends 12% 13% 14% 16% Dividend $2.00 per Share Annualized total stock 19%
Slide 6: Several trends continue to drive disruption
Several trends continue to drive disruption Investment Distribution Product Delivery Capabilities Channels Target Date Passive and pricing Consolidating buying competition pressure power and pressure from intermediaries Growing demand Personalization - for ESG segment of one Increased ne
Slide 7: Good progress on our 2020 strategic priorities
Good progress on our 2020 strategic priorities Investments Distribution Corporate Strong investment results Net flows of $5.6 billion; Revenue grew 11% and continued momentum in EPS increased 19%* Announced plans to EMEA and APAC helped launch TRPIM in Q2 2022 Raised dividend 18% and diver
Slide 8: Investment performance remains critical to our success
Investment performance remains critical to our success U.S. mutual funds Composites outperforming outperforming peers benchmarks Morningstar median rankings1 Composite net returns2 73% 78% 76% 76% 70% 63% Top Quartile Second Quartile 3 years 5 years 10 years 3 years 5 years 10 years Past performance
Slide 9: Consistent AUM growth over time, particularly in Multi-Asset
Consistent AUM growth over time, particularly in Multi-Asset Driven by market returns + alpha + net cash inflows $1,600 Total Multi-Asset $1,471 $1,518 $1,400 AUM 10-YR CAGR $1,207 $1,200 Total AUM Ending AUM ($b) $991 $962 $1,000 $800 $692 $747 $763 $811 12% $577 $600 $490 $428 $406 $360 $293 $286
Slide 10: Continued solid revenue, earnings and dividend growth in 2020
Continued solid revenue, earnings and dividend growth in 2020 Adjusted earnings per share increased significantly in 1Q21 As of December 31 As of March 31 2020 2019 Change 1Q21 1Q20 Change Net Revenues (m) $6,207 $5,618 11% $1,827 $1,463 25% Adjusted Earnings per Share* $9.58 $8.07 19% $3.01 $1.87 6
Slide 11: Balance sheet remains strong
Balance sheet remains strong December 31, December 31, March 31, Balance Sheet Items 2015 2020* 2021* $4,247 Cash and Discretionary Investments $1,172 $4,849 $1,219 Seed Capital Investments $834 $1,244 $0 Long-Term Debt $0 $0 $7,707 Stockholders’ Equity $4,762 $8,008 $23.98 Cash & Investments per Ou
Slide 12: Regularly return capital to stockholders
Regularly return capital to stockholders As of December 31, 2020 1 Year 5 Years 10 Years ($millions) ($millions) ($millions) Recurring $846 $3,378 $5,693 Special - - 781 Total Dividends $846 $3,378 $6,474 Share Repurchases 1,192 4,136 6,168 Total $2,038 $7,514 $12,642 Percent of Earnings 86% 83% 89%
Slide 13: New Global HQ at Harbor Point in 2024
New Global HQ ~450K SF Two-Building Campus at Harbor Point in 2024 Two modern, green buildings 15-year lease Current downtown associate base ~1700 Key project phases 2021: Planning & Design; 2022 – 2024: Construction; 1H 2024: Moves An investment in our associates, our clients, and our communi
Slide 14: Investing in a Sustainable Future
Investing in a Sustainable Future Promoting Social Empowering Our Aligning with Global Building Financial Good Associates Frameworks Capability T. Rowe Price has Associates volunteered Assessed by Sustainalytics Our Money Confident donated $177M to the 26,000 hours in 2020 to be at low risk
Slide 15: Our 2021 priorities
Our 2021 priorities Investments Distribution Corporate Advance TRPIM preparations Deliver 1-3% organic growth Deliver on expanded DEI goals ahead of Q2 2022 formation Enhance target date Expand M&A evaluation Launch initial Fixed Income ETF competitiveness capabilities lineup Work to e
Slide 16: Reconciliation between GAAP and adjusted (non-GAAP) EPS
Reconciliation between GAAP and adjusted (non-GAAP) EPS 2020 2019 1Q21 1Q20 Diluted Earnings per Common Share, GAAP Basis $9.98 $8.70 $3.17 $1.41 Non-GAAP Adjustments: Consolidated T. Rowe Price investment products (.27) (.42) (.06) .36 Supplemental Savings Plan liability .06 .02 – .01 Other non-ope
Slide 17: Q&A
Q&A T. ROWE PRICE GROUP, INC.