19 slides from T. Rowe Price's conference presentation, Dec 9, 2020
Slide 1: Goldman Sachs U.S. Financial Services Conference
GOLDMAN SACHS U.S. FINANCIAL SERVICES T. Rowe Price Group, Inc. CONFERENCE December 9, 2020 A copy of this presentation is available at investors.troweprice.com. Data as of September 30, 2020, unless otherwise noted.
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 of 1995 with respect to T. Rowe Price’s future financial or business performance, strategies, or e
Slide 3: Our vision is to be a premier global active asset manager
Our vision is to be a premier global active asset manager By executing on important multiyear strategic objectives More global and diversified Strong process orientation and effective asset manager internal controls, while becoming a more adaptive and agile company Global partner for retirement inve
Slide 4: Industry challenges continue
Industry challenges continue Market Context Impact on Asset Managers Passive investments continue to take share from active Aging population Low interest rate Higher bar on investment performance for active managers around the globe environment Increased prevalence of alternatives Continued
Slide 5: Sustaining strong long-term investment performance
Sustaining strong long-term investment performance Performance across asset classes is strong overall versus both active and passive peers and benchmarks. % of U.S. Mutual Funds U.S. Mutual Funds Outperforming Morningstar Composites Outperforming Funds/Composites Outperforming Morningstar Median1,2
Slide 6: Maintaining financial strength through Q3 2020
Maintaining financial strength through Q3 2020 Data are year-to-date through September 30, 2020, unless otherwise noted Q3 Q3 YOY Q3 Q3 YOY 2020 2019 Growth 2020 2019 Growth Adjusted Net Revenue1 $4,481 $4,156 8% Dividends per Share $2.70 $2.28 18% Adjusted Operating Dividend Payout Ratio3 41% 35% 1
Slide 7: Executing a consistent, opportunistic approach to share repurchases
Executing a consistent, opportunistic approach to share repurchases Over the five years ended September 30, 2020 47.1m 10x 10% decline in common shares repurchased at $90.21 average P/E over 3.8% 12-month earnings dividend yield of stock outstanding repurchases2 from 252m to 226m weighted average en
Slide 8: Continuing to advance our strategic priorities
Continuing to advance our strategic priorities Announced the formation of T. Rowe Price Investment Management (TRPIM) and preparing for a Q2 2022 transition, including related hiring and technology development Executed on our product road map with the launch of new strategies, including Multi-As
Slide 9: T. Rowe Price Investment Management (TRPIM)
T. Rowe Price Investment Management (TRPIM) A fully independent investment capability being established with the T. Rowe Price cultural tenets of investment excellence, placing clients first, collaboration, and a long-term time horizon to deliver superior investment client outcomes. U.S. $167B AUM 1
Slide 10: Replicating our core investment capability
Replicating our core investment capability T. Rowe Price Associates T. Rowe Price Investment Mgt. Independent Functions LARGE LARGE Large-Cap Large-Cap Structured Equity Income Core Research Growth Stock based on common criteria: Capital Appreciation Large-Cap Large-Cap Value Value Dividend Large-Ca
Slide 11: 2021 Priorities – Furthering our investment capabilities
2021 Priorities – Furthering our investment capabilities Product Development ETFs Expand our APAC and EMEA product ranges Expand our suite of active ETFs including the with SICAV and OEIC launches, including development and launch of Fixed Income ETFs Responsible Global SRS and a new Continue
Slide 12: 2021 Priorities – Expanding our distribution footprint
2021 Priorities – Expanding our distribution footprint APAC EMEA U.S. Intermediaries and U.S. Direct and Bundled DC Continue to build local Sustain growth momentum Institutional Sustain strong client relationships with with continued focus on UK, Sustain efforts of Broker- satisfaction by continuing
Slide 13: 2021 Priorities – Strengthening our operating platform
2021 Priorities – Strengthening our operating platform Modernizing infrastructure Enhancing client experience Continue modernization road map for key platforms Enhance digital capabilities related to financial and applications, including middle office wellness and retirement income Progress cl
Slide 14: Appendix
Appendix T. ROWE PRICE GROUP, INC. GOLDMAN SACHS U.S. FINANCIAL SERVICES CONFERENCE 2020
Slide 15: Reconciliation between GAAP and adjusted (non-GAAP) figures
Reconciliation between GAAP and adjusted (non-GAAP) figures September 30, 2020 Operating Operating Earnings Net Revenues Expenses Income per Share U.S. GAAP Basis $4,473.8 $2,484.0 $1,989.8 $6.66 Non-GAAP adjustments: Consolidated T. Rowe Price 7.3 (44.0) 117.0 0.02 investment products Supplemental
Slide 16: Reconciliation between GAAP and adjusted (non-GAAP) figures
Reconciliation between GAAP and adjusted (non-GAAP) figures September 30, 2019 Operating Operating Earnings Net Revenues Expenses Income per Share U.S. GAAP Basis $4,149.2 $2,342.5 $1,806.7 $6.47 Non-GAAP adjustments: Consolidated T. Rowe Price 6.3 (4.3) 10.6 (0.30) investment products Supplemental
Slide 17: Free cash flow reconciliation
Free cash flow reconciliation September 30, 2020 YTD 2020 YTD 2019 Cash flow from operating activities $1,916.9 $1,500.7 Non-GAAP adjustments: Consolidated T. Rowe Price investment products 348.1 527.4 Capital Expenditures (155.4) (148.9) Free cash flow $2,109.6 $1,879.2 T. R O W E P R I C E G R O U
Slide 18: Mutual funds transitioning to TRPIM
Mutual funds transitioning to TRPIM T. Rowe Price Capital Appreciation Fund T. Rowe Price Institutional Mid-Cap Equity Growth Fund T. Rowe Price Institutional Small-Cap Stock Fund T. Rowe Price Mid-Cap Growth Fund T. Rowe Price Small-Cap Stock Fund T. Rowe Price Small-Cap Value Fund T.
Slide 19: Important Information
Important Information This material, including any statements, information, data and content contained within it and any materials, information, images, links, graphics or recordings provided in conjunction with this material are being furnished by T. Rowe Price for general informational purposes on