T. Rowe Price Group, Inc. (NASDAQ:TROW) Q3 2023 Earnings Conference Call October 27, 2023 8:00 AM ET Company Participants Linsley Carruth - Director, Investor Relations Robert Sharps - Chief Executive Officer and President Jen Dardis - Chief Financial Officer and Treasurer Eric Veiel - Head of Global Equity and Chief Investment Officer Conference Call Participants Alexander Blostein - Goldman Sachs Craig Siegenthaler - Bank of America Patrick Davitt - Autonomous Brian Bedell - Deutsche Bank Ken Worthington ...

Part I – Financial Information [Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements.) Presents unaudited condensed consolidated financial statements, including balance sheets, income, and cash flow, detailing key financial changes [Unaudited Condensed Consolidated Financial Statements](index=3&type=section&id=Unaudited%20Condensed%20Consolidated%20Financial%20Statements) Provides core unaudited financial statements, highlighting increases in total assets and stockholders' equity, with stable diluted EPS Condensed Consolidated Balance Sheet Highlights (in millions) | Balance Sheet Item | 6/30/2023 | 12/31/2022 | | :--- | :--- | :--- | | Cash and cash equivalents | $2,249.7 | $1,755.6 | | Investments | $2,718.4 | $2,539.2 | | Total assets | $12,621.4 | $11,643.3 | | Total liabilities | $2,170.3 | $1,956.4 | | Total stockholders' equity | $9,465.9 | $9,030.2 | Condensed Consolidated Statements of Income Highlights (in millions, except per-share) | Income Statement Item | Q2 2023 | Q2 2022 | Six Months 2023 | Six Months 2022 | | :--- | :--- | :--- | :--- | :--- | | Net revenues | $1,610.2 | $1,513.0 | $3,147.8 | $3,376.0 | | Net operating income | $533.5 | $668.6 | $1,017.7 | $1,546.0 | | Net income attributable to T. Rowe Price Group | $476.4 | $339.6 | $897.9 | $907.5 | | Diluted EPS | $2.06 | $1.46 | $3.89 | $3.88 | Condensed Consolidated Statements of Cash Flows Highlights (in millions) | Cash Flow Item (Six months ended) | 6/30/2023 | 6/30/2022 | | :--- | :--- | :--- | | Net cash provided by operating activities | $906.5 | $1,727.0 | | Net cash used in investing activities | ($135.9) | ($25.7) | | Net cash used in financing activities | ($320.0) | ($1,131.0) | | Net change in cash and cash equivalents | $451.5 | $563.0 | [Notes to Unaudited Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) Provides detailed explanations of accounting policies and financial data, covering revenue, investments, goodwill, and contingent consideration liability Investment Advisory Fees by Asset Class (in millions) | Asset Class | Q2 2023 | Q2 2022 | Six Months 2023 | Six Months 2022 | | :--- | :--- | :--- | :--- | :--- | | Equity | $862.3 | $941.0 | $1,696.2 | $2,027.0 | | Fixed income | $100.0 | $109.9 | $202.4 | $216.5 | | Multi-asset | $391.3 | $377.5 | $777.3 | $782.1 | | Alternatives | $77.2 | $68.3 | $146.7 | $133.2 | | **Total** | **$1,430.8** | **$1,496.7** | **$2,822.6** | **$3,158.8** | - The fair value of the contingent consideration liability related to the OHA acquisition decreased to **$23.0 million** at the end of Q2 2023, down from **$95.8 million** at the beginning of the year, due to unrealized gains (reductions in liability) of **$72.8 million**[44](index=44&type=chunk) - As of June 30, 2023, Goodwill remained stable at **$2.64 billion**, while definite-lived intangible assets decreased to **$394.7 million** from **$447.1 million** at year-end 2022 due to amortization[56](index=56&type=chunk) - The company has committed **$481.5 million** to fund OHA products over the next four years[71](index=71&type=chunk) [Management's Discussion and Analysis (MD&A)](index=22&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations.) Management discusses financial condition and operations, covering market trends, AUM changes, investment performance, operating results, and liquidity [Overview and Market Trends](index=22&type=section&id=MD%26A%20Overview%20and%20Market%20Trends) Discusses the AUM-based business model, noting passive investing trends and reviewing Q2 2023 market performance - The general trend to passive investing has been persistent and has negatively impacted the company's new client inflows[82](index=82&type=chunk) Key Index Returns (Q2 and YTD 2023) | Index | Three months ended 6/30/2023 | Six months ended 6/30/2023 | | :--- | :--- | :--- | | S&P 500 Index | 8.7% | 16.9% | | NASDAQ Composite Index | 12.8% | 31.7% | | Bloomberg U.S. Aggregate Bond Index | (0.8)% | 2.1% | [Assets Under Management (AUM)](index=24&type=section&id=Assets%20Under%20Management%20%28AUM%29) AUM increased to **$1.40 trillion** in Q2 2023 due to market appreciation, despite continued net outflows - Ending AUM was **$1,399.4 billion** at June 30, 2023, an increase of **$57.7 billion** from March 31, 2023[92](index=92&type=chunk) AUM Change in Q2 2023 (in billions) | Component | Amount | | :--- | :--- | | Market appreciation | +$77.7 | | Net cash outflows | -$20.0 | | **Total Change** | **+$57.7** | AUM Change by Asset Class - Q2 2023 (in billions) | Asset Class | Beginning AUM (3/31/23) | Net Cash Flows | Net Market Appreciation | Ending AUM (6/30/23) | | :--- | :--- | :--- | :--- | | Equity | $695.1 | ($19.5) | $56.6 | $732.2 | | Fixed income | $170.4 | ($1.9) | $0.8 | $169.3 | | Multi-asset | $431.9 | $1.6 | $19.7 | $453.2 | | Alternatives | $44.3 | ($0.2) | $0.6 | $44.7 | [Investment Performance](index=25&type=section&id=Investment%20Performance) Presents investment performance across various time horizons, showing strong long-term outperformance with mixed shorter-term results % of U.S. Mutual Funds Outperforming Morningstar Median | Period | Equity | Fixed Income | Multi-Asset | All Funds | | :--- | :--- | :--- | :--- | :--- | | 1 year | 57% | 49% | 61% | 56% | | 3 years | 52% | 59% | 56% | 55% | | 5 years | 62% | 68% | 75% | 67% | | 10 years | 78% | 65% | 86% | 75% | % of Composites Outperforming Benchmarks | Period | Equity | Fixed Income | All Composites | | :--- | :--- | :--- | :--- | | 1 year | 42% | 32% | 38% | | 3 years | 32% | 61% | 44% | | 5 years | 49% | 51% | 50% | | 10 years | 71% | 76% | 73% | [Results of Operations](index=27&type=section&id=Results%20of%20Operations) Details financial results, noting a 6.4% YoY net revenue increase driven by capital allocation income, despite higher GAAP operating expenses Q2 2023 vs. Q2 2022 Financial Highlights (in millions) | Metric | Q2 2023 | Q2 2022 | % Change | | :--- | :--- | :--- | :--- | | Net Revenues | $1,610.2 | $1,513.0 | 6.4% | | Investment Advisory Fees | $1,430.8 | $1,496.7 | (4.4)% | | Capital Allocation-based Income | $38.7 | ($126.3) | n/m | | GAAP Operating Expenses | $1,076.7 | $844.4 | 27.5% | | GAAP Net Operating Income | $533.5 | $668.6 | (20.2)% | Operating Expenses Breakdown - Q2 2023 vs Q2 2022 (in millions) | Expense Category | Q2 2023 | Q2 2022 | % Change | | :--- | :--- | :--- | :--- | | Total compensation and related costs | $648.2 | $463.4 | 39.9% | | Technology, occupancy, and facility costs | $154.7 | $134.3 | 15.2% | | Change in fair value of contingent consideration | ($23.2) | ($50.3) | (53.9)% | - The effective tax rate on a U.S. GAAP basis was **24.8%** for Q2 2023, compared to **26.0%** for Q2 2022[149](index=149&type=chunk) [Capital Resources and Liquidity](index=39&type=section&id=Capital%20Resources%20and%20Liquidity) Discusses the company's strong liquidity position, with increased cash and investments, and details capital returns and anticipated expenditures Sources of Liquidity (in millions) | Item | 6/30/2023 | 12/31/2022 | | :--- | :--- | :--- | | Cash and cash equivalents | $2,249.7 | $1,755.6 | | Discretionary investments | $484.8 | $449.7 | | **Total cash and discretionary investments** | **$2,734.5** | **$2,205.3** | - In the first half of 2023, the company expended **$45.2 million** to repurchase **420,000** shares of common stock and paid **$562.4 million** in dividends[166](index=166&type=chunk)[13](index=13&type=chunk) - Anticipated capital expenditures for full-year 2023 are about **$365 million**, with approximately **60%** planned for technology initiatives[167](index=167&type=chunk) [Market Risk and Controls & Procedures](index=44&type=section&id=Item%203%20%26%204) States no material changes to market risk disclosures or internal control over financial reporting, with effective disclosure controls and procedures - There has been no material change in the company's market risks from those provided in the Form 10-K Annual Report for 2022[182](index=182&type=chunk) - Management, including the principal executive and financial officers, concluded that disclosure controls and procedures were effective as of June 30, 2023[183](index=183&type=chunk) - No change occurred during Q2 2023 that has materially affected, or is reasonably likely to materially affect, the company's internal control over financial reporting[184](index=184&type=chunk) Part II – Other Information [Other Information (Items 1-6)](index=44&type=section&id=Other%20Information%20%28Items%201-6%29) Covers other required disclosures, including legal proceedings, risk factors, and detailed share repurchase activity for the quarter - There have been no material changes in risk factors from the Form 10-K Annual Report for 2022[187](index=187&type=chunk) Share Repurchase Activity - Q2 2023 | Month | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | April | — | $— | | May | 193,350 | $105.33 | | June | 214,866 | $108.87 | | **Total** | **408,216** | **$107.20** | - As of June 30, 2023, the maximum number of shares that may yet be purchased under the publicly announced program is **8,354,638**[190](index=190&type=chunk)

T. Rowe Price Group, Inc. (NASDAQ:TROW) Q2 2023 Earnings Conference Call July 28, 2023 8:00 AM ET Company Participants Linsley Carruth - Director of Investor Relations Rob Sharps - Chief Executive Officer and President Jen Dardis - Chief Financial Officer Conference Call Participants Ken Worthington - JPMorgan Finian O'Shea - Wells Fargo Securities Dan Fannon - Jefferies Craig Siegenthaler - Bank of America Glenn Schorr - Evercore Brian Bedell - Deutsche Bank Brennan Hawken - UBS Mike Brown - KBW Patrick Da ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ______________________________________ FORM 10-Q ______________________________________ ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 000-32191 ______________________________________ T. ROWE PRICE G ...

Financial Data and Key Metrics Changes - Adjusted earnings per share for Q1 2023 was $1.69, down from $1.74 in Q4 2022 and $2.62 in Q1 2022 [15] - Adjusted operating income increased by 3.7% to $528 million compared to Q4 2022, primarily due to a decline in expenses [15] - Assets under management (AUM) ended the quarter at $1.3 trillion, an increase of $67 billion from December 31, 2022, driven by improving markets [16] Business Line Data and Key Metrics Changes - Net outflows for the first quarter were $16.1 billion, primarily from large-cap growth equity strategies, particularly in the US defined contribution investment only and broker-dealer channels [9] - Positive net inflows included $7.5 billion into the target date franchise and over $250 million in various strategies such as global multi-sector bond and US dividend growth [10][17] - The effective fee rate was 42.7 basis points, reflecting a slight uptick from Q4 2022, with ongoing modest downward fee pressure expected [18] Market Data and Key Metrics Changes - The annual headline inflation rate in the US fell from 6.4% to 5% during the quarter, while the Eurozone saw a decrease from 9.2% to 6.9% [6] - The NASDAQ Composite Index increased nearly 17%, and technology shares within the S&P 500 Index returned nearly 22% during the first quarter [6] Company Strategy and Development Direction - The company is focused on long-term growth initiatives, including enhancing its US intermediary wealth channel and expanding its product offerings [11][12] - Strategic initiatives include enhancing digital experiences for individual investors and expanding private markets and alternative capabilities through acquisitions like OHA [13][14] - The firm aims to return to positive organic growth over time through improved market conditions and sustained investment performance [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term value of active investment management despite current market uncertainties and pressures on net flows [4][5] - The firm is committed to maintaining financial discipline and prioritizing investments in strategic initiatives to navigate market volatility [23] - Management acknowledged the competitive landscape and the need to adapt to changing market conditions while focusing on core strengths [11] Other Important Information - The company has been recognized as a top-tier provider to several large intermediary firms, enhancing its distribution capabilities [12] - The acquisition of Retiree, Inc. aims to improve retirement income planning capabilities across various channels [13] Q&A Session Summary Question: Progress on the OHA transaction - Management characterized the first year with OHA as successful, focusing on distribution synergies and product launches [24][25] Question: Collaboration between OHA and T. Rowe Price fixed income teams - Management stated that investment teams remain largely separate to minimize disruption, while exploring ways to leverage ideas across platforms [27][28] Question: Impact of last year's performance issues on target date flows - Management noted that long-term performance is more critical in target date strategies, and they remain engaged with plan sponsors [32][34] Question: Breakdown of expense growth - Management indicated that about a third of expenses are market-driven, with ongoing investments in strategic initiatives [37][39] Question: Outlook for non-US business growth - Management expressed optimism about growth in core markets like Japan and Australia, despite short-term lumpiness in flows [45][47] Question: Urgency to drive better growth versus M&A - Management acknowledged share loss in certain equity franchises but emphasized a long-term focus on organic growth and strategic acquisitions [49][51] Question: Product and vehicle expansion - Management highlighted ongoing momentum in ETFs and the introduction of new strategies to meet demand [54][56] Question: Employee retention post-OHA integration - Management reported strong employee retention at OHA, with no significant attrition among senior associates [59] Question: Long-term perspective on the 401(k) business - Management noted that while the unbundling trend is significant, T. Rowe Price maintains a strong value proposition in the core market [62][64]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Maryland 52-2264646 State of incorporation IRS Employer Identification No. 100 East Pratt Street, Baltimore, Maryland 21202 Address, including zip code, of principal executive offices FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2022 Com ...

OR UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ______________________________________ FORM 10-Q ______________________________________ ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2022 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 000-32191 ______________________________________ T. ROWE PRI ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ______________________________________ FORM 10-Q ______________________________________ ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 000-32191 ______________________________________ T. ROWE PRICE GR ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ______________________________________ FORM 10-Q ______________________________________ ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 000-32191 T. ROWE PRICE GROUP, INC. (Exact name of registrant as ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2021 Commission file number 000-32191 T. ROWE PRICE GROUP, INC. (Exact name of registrant as specified in its charter) Maryland 52-2264646 State of incorporation IRS Employer Identification No ...