T. Rowe Price Group, Inc. · NASDAQ:TROW
T. Rowe Price — Shareholder Meeting (May 2022)
18 slides from T. Rowe Price's shareholder meeting presentation, May 10, 2022
Slide 1: Annual Meeting of Stockholders
Annual Meeting of Stockholders May 10, 2022 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 Alignment Financial Strength Investment of Interests We maintain substantial Founded in 1937 cash reserves Organization We are a publicly owned company with significant We are focused solely on investment employee ownership 1.55 tr
Slide 4: Several trends continue to drive disruption
Several trends continue to drive disruption Investment Product Distribution Capabilities Delivery Channels Passive market Demand for vehicles Intermediaries share gains beyond mutual funds consolidating buying power Growing demand Increased for ESG customization Increased need for scale
Slide 5: Good progress on our 2021 strategic priorities
Good progress on our 2021 strategic priorities Investments / Product Distribution Corporate Augmented our investments Increased the competitiveness of Continued investment in our talent capabilities through the acquisition our Target Date franchise initiatives; with a focus on DEI and of Oak H
Slide 6: OHA Overview
OHA Overview Capital Under Management by Strategy Category $57b USD Total 100% $16b | 28% Scale and Diversified Experienced Structured OHA managed CLOs experienced in the platform across team of over 300+ Credit Debt & equity in 3rd party CLOs alternative credit strategies and associates with ma
Slide 7: Consistent results and long-term orientation
Consistent results and long-term orientation As of December 31, 2021 $14.00 5 10 20 30 $13.12 years years years years $12.00 Diluted EPS Net revenues 12% 11% 11% 13% $10.00 (GAAP) $8.00 Diluted EPS 23% 16% 15% 17% (GAAP) $6.00 $4.32 Dividends 15% 13% 14% 17% $4.00 Dividend per Share Annualized $2.00
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 69% 79% 74% 68% 66% 59% Top Quartile Second Quartile 3 years 5 years 10 years 3 years 5 years 10 years Past performance
Slide 9: Assets Under Management
Asset Under Management Driven by market returns + alpha + net cash flows Total $1,800 $1,688 $1,600 $1,552 AUM 10-YR CAGR $1,471 $1,400 $1,207 Total AUM 12% Ending AUM ($b) $1,200 $991 $962 $1,000 $747 $763 $811 $692 $800 $577 $600 $489 $400 $200 $0 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Slide 10: Markets drove very strong growth in 2021 and headwinds in Q122
Markets drove very strong growth in 2021 and headwinds in Q122 As of December 31 As of March 31 2021 2020 Change 1Q22¹ 1Q21 Change $1,863 $1,827 2% Net Revenues (m) $7,672 $6,207 24% Adjusted Earnings per Share* $12.75 $9.58 33% $2.62 $3.01 (13%) $4.32 $3.60 20% $1.20 $1.08 11% Regular Dividends per
Slide 11: Balance sheet remains strong
Balance sheet remains strong Balance Sheet Items December 31, December 31, March 31, (At 12/31 unless noted, $m USD) 2016 2021* 2022* Cash and Discretionary Investments $1,906 $2,077 $2,574 Seed Capital Investments $1,264 $1,300 $1,097 Debt $0 $114 $109 Stockholders’ Equity Attributable to T. Rowe P
Slide 12: Regularly return capital to stockholders
Regularly return capital to stockholders Through December 31, 2021 1 Year 5 Years 10 Years ($millions) ($millions) ($millions) Dividends $1,703 $4,540 $7,859 Recurring 1,003 3,840 6,378 Special 700 700 1,481 Share Repurchases 1,136 4,595 6,824 Total $2,839 $9,135 $14,683 Percent of Earnings 92% 84%
Slide 13: Our 2022 Priorities
Our 2022 Priorities Investments / Product Distribution Corporate Achieve excellent investment results Deliver world-class client service Strengthen distribution technology: for clients digital client experience, CRM/ Diversify our business by asset class, marketing tools, and client reportin
Slide 14: Diversity, Equity & Inclusion are critical to our culture
Diversity, Equity & Inclusion are critical to our culture Our long-held reputation for excellence and reliability is made possible by the diversity of backgrounds, perspectives, skills, and experiences of our associates. To bring Grow and Sustain and Shared Diversity, support our enhance our account
Slide 15: Investing in our associates, clients, and communities
Investing in our associates, clients, and communities New Global HQ at London relocation Harbor Point in 2024 to Warwick Court Two modern, Seeking LEED Buildings will Seeking sustainability goals FlexSpace Ecosystem green buildings Platinum status accommodate of BREEAM “Excellent” and occupancy is p
Slide 16: Investing in our communities
Investing in our communities Promoting Empowering Creating a Sustainable Building Financial Social Good Our Associates Headquarters Capability The T. Rowe Price Associates volunteered The new building will Our Money Confident Foundation has granted more than 25,000 hours feature a rain harve
Slide 17: Q&A
Q&A T. ROWE PRICE GROUP, INC.
Slide 18: Reconciliation between GAAP and adjusted (non-GAAP) EPS
Reconciliation between GAAP and adjusted (non-GAAP) EPS 2021 2020 1Q22 1Q21 Diluted Earnings per Common Share, GAAP Basis $13.12 $9.98 $2.41 $3.17 Non-GAAP Adjustments: Consolidated T. Rowe Price investment products (.16) (.27) .13 (.06) Supplemental Savings Plan liability – .06 .01 – Acquisition-re