T. Rowe Price Group, Inc. · NASDAQ:TROW

T. Rowe Price — Shareholder Meeting (April 2018)

21 slides from T. Rowe Price's shareholder meeting presentation, Apr 26, 2018

  1. Slide 1: T. Rowe Price Group Update - Annual Meeting

    T. Rowe Price Group Update ANNUAL MEETING Bill Stromberg, President and CEO April 26, 2018

  2. Slide 2: Forward-Looking Information

    Forward-Looking Information 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,

  3. 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  Focused solely on investment management and related services $1,014 billion in assets under Alignment of Interests management¹  Publicly owned company with substantial employee ownership

  4. Slide 4: Culture is Central to Our Long-Term Success

    Culture is Central to Our Long-Term Success Performance-Driven and Collaborative Investment Excellence  The heart of everything we do Clients First  We succeed if our clients succeed  Leveraging our best ideas creates Collegiality and Collaboration competitive advantage Trust and Mutual Respect 

  5. Slide 5: Attractive and Consistent Financial Results Over Time

    Attractive and Consistent Financial Results Over Time Long-Term Orientation $7.00 Average annualized growth GAAP EPS Dividend per Share As of December 31, 2017 $6.00 5 10 20 30 Years Years Years Years $5.00 $4.00 Revenues 10% 8% 10% 13% $3.00 GAAP EPS 13% 10% 13% 15% $2.00 Dividends 11% 12% 15% 19%

  6. Slide 6: Collaborative Global Investment Platform a Competitive Edge

    Collaborative Global Investment Platform a Competitive Edge Attracting and Retaining Investment Talent through All Market Cycles Investment Professionals 2002–Q12018 571 113 LONDON / EMEA 58 426 401 7 35 BALTIMORE / U.S. TOKYO 17 187 HONG KONG 316 146 12 98 127 7 SINGAPORE 202 106 80 69 35 137 157 1

  7. Slide 7: Consistently Strong Investment Performance

    Consistently Strong Investment Performance Results Through March 31, 2018 Retail Mutual Funds Outperforming Peers Retail Mutual Funds Outperforming Benchmarks Morningstar Rankings Mutual Fund Net (NAV) Returns Primary Share Class Only Primary Share Class Only 87% 88% 87% 70% 63% 63% Top Quartile 53%

  8. Slide 8: Consistent Growth in AUM

    Consistent Growth in AUM Driven by Market Returns + Alpha + Net Cash Inflows T. ROWE PRICE GROUP, INC. Assets Under Management 2008–Q1 2018 $1,100 AUM 10 YR CAGR $1,014 Total AUM 14% $991 $1,000 Multi-Asset 21% $900 $811 $800 AUM ($Billions) $747 $763 $692 $700 $600 $577 Total $482 $490 $500 $400 $3

  9. Slide 9: Changing Industry Realities

    Changing Industry Realities  Aging population shifting demand from equities to income-oriented solutions  Intermediaries desiring new vehicle types and fee structures  Fastest growth occurring outside the U.S.  Digital technology reshaping client engagement  Regulatory change accelerating acros

  10. Slide 10: Building Capabilities Across Products and Vehicles

    Building Capabilities Across Products and Vehicles New Investment Strategies New Vehicles  Total Return: Multi-Strategy Total Return,  Retail Separately Managed Accounts Dynamic Global Bond, Managed Volatility  Model Portfolios  Retirement Income: Retirement Income 2020  ActivePlus Portfolios (

  11. Slide 11: Developing New Skills and Expanding Distribution Reach

    Developing New Skills and Expanding Distribution Reach New Investment Capabilities Distribution Enhancements  Global Derivatives Team  Investing to strengthen services to U.S. Registered Investment Advisors and  Intelligent Augmentation Team wire houses – Use big data and machine learning to  Ag

  12. Slide 12: T. Rowe Price Organic Growth Recovered Nicely in 2017

    T. Rowe Price Organic Growth Recovered Nicely in 2017 Flows Well Diversified Across Asset Classes and Geographic Regions As of December 31, 2017 % of prior year’s AUM 15% 10% 5% 0% -5% 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Actual Flows ($B) 33.8 17.1 22.7 30.3 14.1 17.2 (12.0) 3.7 1

  13. Slide 13: Attractive Revenue and Earnings Growth in 2017 and Q1 2018

    Attractive Revenue and Earnings Growth in 2017 and Q1 2018 As of December 31, 2017 As of March 31, 2018 2016 2017 Change Q1 2017 Q1 2018 Change Net Revenues ($millions) $4,223 $4,793 14% $1,133 $1,328 17% Adjusted Earnings per Share* $4.49 $5.43 21% $1.18 $1.74 48% Regular Dividends per Share $2.16

  14. Slide 14: Balance Sheet Remains Strong

    Balance Sheet Remains Strong Allows for Consistent Investment in Capabilities Through Market Cycles Balance Sheet Items Q1 2018* (At 12/31 unless noted, $millions) 2012 2017* Cash and Discretionary Investments $1,392 $2,683 $3,015 Seed Capital Investments $628 $1,189 $1,125 Long-Term Debt $0 $0 $0 S

  15. Slide 15: Regularly Return Capital to Stockholders

    Regularly Return Capital to Stockholders As of December 31, 2017 1 Year 5 Years 10 Years ($millions) ($millions) ($millions) Dividends $563 $3,022 $4,729 Recurring 563 2,498 3,948 Special — 524 781 Share Repurchases 458 2,553 4,085 TOTAL $1,021 $5,575 $8,814 Percent of Earnings1 68% 90% 93% Data are

  16. Slide 16: Committed to Our Communities

    Committed to Our Communities Investing for the Long Term Building Financial Capability  T. Rowe Price Foundation founded 1981  “Money Confident Kids”: aids in  Since 1981, TRP has funded $135M and improving financial behaviors the Foundation has granted $111M  Online games and materials target k

  17. Slide 17: What You Can Expect From Us

    What You Can Expect From Us WE WILL STRIVE TO:  Remain a high-integrity, client-focused firm  Provide excellent investment performance and client service  Stay true to our core values  Maintain a strong financial position  Consistently reinvest to strengthen and broaden our capabilities  Deliv

  18. Slide 18: Morningstar Disclaimer

    ©2018 Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsi

  19. Slide 19: Thank You

    T.RowePrice* INVEST WITH CONFIDENCE THANK YOU casiLwvsu

  20. Slide 20: Appendix

    oTrITTiTffTfl ttt CCCOEE eee PEEP TTTT TT tT TT CCE COCO PEEP APPET WAS oe COE CCE EEL LLL PETTY eee COPE Eee eee COOOL TTT TTT rt treet TEEPE COE Sec

  21. Slide 21: Reconciliation Between GAAP and Adjusted (Non-GAAP) EPS

    Reconciliation Between GAAP and Adjusted (Non-GAAP) EPS 2016 2017 1Q17 1Q18 Diluted Earnings per Common Share, GAAP Basis $4.75 $5.97 $1.54 $1.77 Non-GAAP Adjustments: Consolidated Sponsored Investment Portfolios (.16) (.24) (.08) .01 Non-operating income, excluding impacts of consolidated T. Rowe P

T. Rowe Price Group — Shareholder Meeting (April 2018) on 6ix