T. Rowe Price Group, Inc. · NASDAQ:TROW
T. Rowe Price — Shareholder Meeting (2019)
18 slides from T. Rowe Price's shareholder meeting presentation, 2019
Slide 1: Annual Meeting
Annual Meeting Bill Stromberg PRESIDENT AND CEO 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 As of March 31, 2019 Independent Investment Organization Founded in 1937 Focused solely on investment management and related services 1.08 trillion USD Alignment of Interests Publicly owned company with substantial employee ownership in
Slide 4: Consistent Results and Long-term Orientation
Consistent Results and Long-term Orientation $8.00 $7.27 March 31, 2019 Diluted EPS 5 10 20 30 (GAAP) years years years years $6.00 Net revenues 8% 11% 9% 13% $4.00 $2.80 Diluted EPS Dividend (GAAP) 13% 18% 13% 16% per Share $2.00 Dividends 13% 11% 15% 18% Annualized $0.00 total stock 7% 16% 12% 18%
Slide 5: Culture is Central to Our Long-term Success
Culture is Central to Our Long-term Success Investment Excellence The heart of everything we do Clients First We succeed if our clients succeed Long-Term Collegiality and Collaboration Leveraging our best ideas creates competitive advantage Success Trust and Mutual Respect Essential for a strong com
Slide 6: Collaborative Global Investment Platform a Competitive Edge
Collaborative Global Investment Platform a Competitive Edge As of March 31, 2019 Investment Professional Headcount 2003–2019 603 Multi-Asset Fixed Income 64 International Equity 121 7 U.S. Equity 430 196 19 418 LONDON/EMEA TOKYO 347 42 14 151 BALTIMORE/U.S. HONG KONG 107 138 6 217 105 SINGAPORE 83 8
Slide 7: Investment Performance is Critical to Our Success
Investment Performance is Critical to Our Success U.S. mutual funds Composites outperforming outperforming active peers benchmarks Morningstar median rankings1 Composite net returns2 79% 82% 74% 79% 68% 67% Top 51% 54% quartile 39% Second quartile 3 years 5 years 10 years 3 years 5 years 10 years Pa
Slide 8: Consistent AUM Growth Over Time
Consistent AUM Growth Over Time Driven by Market Returns + Alpha + Net Cash Inflows T. Rowe Price Group, Inc. Assets Under Management 2009–Q1 2019 $1,200 Total Multi-Asset $1,082 $991 AUM 10 YR CAGR $962 $1,000 $811 Total AUM $747 $763 $800 $692 12% AUM ($b) $577 $600 $482 $490 $391 $293 $319 $400 $
Slide 9: Diversified Organic Growth of $13.2b in 2018
C&h3>4F+$9zqr*8@O Diversified Organic Growth of $13.2b in 2018 Net Flows for Q119 were $5.4 billion Net flows by asset class ($b) Net flows by client geography $11.7 $13.2 EMEA 9% $3.6 ($0.7) ($5.8) $4.4 APAC $0 Americas 29% 62% U.S. Int'l Equity U.S. Int'lInt’l Fixed Multi- Total Equity Fixed Incom
Slide 10: Attractive Revenue and Earnings Growth in 2018
Attractive Revenue and Earnings Growth in 2018 Adjusted Earnings per Share grew 8% in Q119 As of December 31, 2018 As of March 31, 2019 2017 2018 Change 1Q18 1Q19 Change Net Revenues (m) $4,793 $5,373 $1,328 $1,327 0% 11% Adjusted Earnings per Share* $5.43 $7.15 32% $1.74 $1.87 8% Regular Dividends
Slide 11: Balance Sheet Remains Strong
Balance Sheet Remains Strong Allows for Consistent Investment in Capabilities Through Market Cycles As of December 31, 2019. Balance Sheet Items March 31, 2013 2018* (At 12/31 unless noted, $m) 2019* Cash and Discretionary Investments $1,392 $3,022 $3,378 Seed Capital Investments $628 $1,119 $1,116
Slide 12: Regularly Return Capital to Stockholders
Regularly Return Capital to Stockholders As of December 31, 2018 1 Year 5 Years 10 Years ($millions) ($millions) ($millions) Recurring $695 $2,796 $4,394 Special - 524 781 Total Dividends $695 $3,320 $5,175 Share Repurchases 1,099 3,638 4,574 Total $1,794 $6,958 $9,749 Percent of Earnings 98% 99% 90
Slide 13: Industry Challenges Continue
Industry Challenges Continue Passive investments continuing to take share from active Continued downward pressure on management fees Institutional and intermediary clients demanding new vehicle types and fee structures Aging population shifting demand from equities to income-oriented solutio
Slide 14: We Continue to Invest in Product, Distribution & Technology
We Continue to Invest in Product, Distribution & Technology Product Distribution Technology Dynamic Credit strategy Ongoing investments across Developing advanced data launched in January broker-dealer and defined science practice to intelligently contribution channels in U.S. augment our inve
Slide 15: Committed to Our Communities
Committed to Our Communities Investing for the Long Term Building Financial Capability The T. Rowe Price Foundation has granted “Money Confident Kids”: aids in improving $121m since its inception in 1981 financial behaviors In 2018, the Foundation executed $10m in Online games and materials
Slide 16: What You Can Expect From Us
What You Can Expect From Us We Will Strive to: Remain a high-integrity, client-focused firm Consistent, strong Provide excellent investment performance and client service Stay true to our core values financial results Maintain a strong financial position and returns to stockholders Consist
Slide 17: 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
Slide 18: Reconciliation Between GAAP and Adjusted (Non-GAAP) EPS
Reconciliation Between GAAP and Adjusted (Non-GAAP) EPS 2017 2018 1Q18 1Q19 Diluted Earnings per Common Share, GAAP Basis $5.97 $7.27 $1.77 $2.09 Non-GAAP Adjustments: Consolidated T. Rowe Price Investment Products (.24) .12 .01 (.16) Other non-operating income (.46) (.30) (.04) (.07) Non-operating