T. Rowe Price Group, Inc. · NASDAQ:TROW
T. Rowe Price — Shareholder Meeting (May 2020)
17 slides from T. Rowe Price's shareholder meeting presentation, May 12, 2020
Slide 1: Annual Meeting of Stockholders
Annual Meeting of Stockholders May 12, 2020 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 $1.13 trillion Alignment of Interests in assets under We are a publicly owned company with substantial employee ownersh
Slide 4: Consistent results and long-term orientation
Consistent results and long-term orientation $10.00 $8.70 March 31, 2020 Diluted EPS 5 10 20 30 $8.00 (GAAP) years years years years Net $6.00 revenues 7% 11% 9% 13% $3.04 Diluted $4.00 Dividend EPS 12% 15% 11% 15% per Share (GAAP) $2.00 Dividends 12% 12% 14% 17% $0.00 Annualized 1986 1997 2008 2019
Slide 5: COVID-19–"business as unusual"
COVID-19–“business as unusual” Associates Clients Ensure safety of all associates Staying close to clients through virtual meetings and Migration to 97%+ work from home Web-based content on global markets and personal finance Portions of Technology, Trading, and Operations remain on premises
Slide 6: Industry challenges continue
Industry challenges continue Market Context Impact on Asset Managers Passive investments continue to take share from active Higher bar on investment performance for active managers Aging population Low interest rate Increased prevalence of alternative investments around the globe environment
Slide 7: 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 71% 76% 66% 60% 56% Top 41% 50% 48% quartile 28% Second quartile 3 years 5 years 10 years 3 years 5 years 10 years Past
Slide 8: Consistent AUM growth over time, despite recent pull-back
Consistent AUM growth over time, despite recent pull-back Driven by market returns + alpha + net cash inflows T. Rowe Price Group, Inc. Assets Under Management 2010–April 2020 $1,400 Total Multi-Asset $1,207 AUM 10 YR CAGR $1,200 $1,125 $991 $962 $1,000 Total AUM $811 $747 $763 9% AUM ($b) $800 $692
Slide 9: Diversified organic growth of $13.2b in 2019
Diversified organic growth of $13.2b in 2019 Net flows for 1Q20 were ($6.0) billion Net flows by asset class ($b) Net flows by client geography $9.9 $13.2 EMEA 15% $3.6 ($0.1) APAC Americas ($2.6) $2.4 36% $0 49% U.S. Int'l. U.S. Int'l.Int’l. Fixed Multi- Total Equity Equity Fixed Fixed Income Asset
Slide 10: Solid revenue and earnings growth in 2019
Solid revenue and earnings growth in 2019 Adjusted earnings per share were flat in 1Q20, despite continued revenue growth As of December 31 As of March 31 2019 2018 Change 1Q20 1Q19 Change Net Revenues (m) $5,618 $5,373 5% $1,463 $1,327 10% Adjusted Earnings per Share* $8.07 $7.15 13% $1.87 $1.87 0%
Slide 11: Balance sheet remains strong
Balance sheet remains strong Allows for consistent investment in capabilities through market cycles As of March 31, 2020 Balance Sheet Items 2014 2019* March 31, (At 12/31 unless noted, $m) 2020* Cash and Discretionary Investments $1,506 $3,681 $3,404 Seed Capital Investments $1,282 $1,326 $1,082 Lo
Slide 12: Regularly return capital to stockholders
Regularly return capital to stockholders As of March 31, 2020 1 Year 5 Years 10 Years ($millions) ($millions) ($millions) Recurring $765 $3,146 $5,014 Special - - 781 Total Dividends $765 $3,146 $5,795 Share Repurchases 1,366 4,705 6,102 Total $2,131 $7,851 $11,897 Percent of Earnings 109% 99% 93% D
Slide 13: Good progress on our 2019 strategic priorities
Good progress on our 2019 strategic priorities Maintained strong longer-term relative investment performance Increased investment professional headcount to 664 worldwide, with 32% outside the U.S. Investment 1 Launched six new strategies and 20 new products Capabilities Received exemptive re
Slide 14: Investing in our communities
Investing in our communities Investing for the Long Term Promoting Environmental Sustainability The T. Rowe Price Foundation has granted $132M since its inception We are targeting a 13% reduction In 2019, the Foundation executed in greenhouse gas emissions and $10.8M in grants: $6.1M in a 92%
Slide 15: Our 2020 priorities remain focused on the long term
Our 2020 priorities remain focused on the long term With near-term focus on safe “return to office” plans Deliver excellent investment results Attract and retain talent while further advancing our diversity and inclusion strategy Build/launch new investment strategies and vehicles to meet clie
Slide 16: Annual Meeting of Stockholders
Annual Meeting of Stockholders May 12, 2020 T. ROWE PRICE GROUP, INC.
Slide 17: Reconciliation between GAAP and adjusted (non-GAAP) EPS
Reconciliation between GAAP and adjusted (non-GAAP) EPS 2018 2019 1Q19 1Q20 Diluted Earnings per Common Share, GAAP Basis $7.27 $8.70 $2.09 $1.41 Non-GAAP Adjustments: Consolidated T. Rowe Price investment products .12 (.42) (.16) .36 Supplemental Savings Plan liability (.30) .02 (.07) .01 Other non