the european equity landscape identifying the opportunities

THE EUROPEAN EQUITY LANDSCAPE – IDENTIFYING THE OPPORTUNITIES

Andrew Clifton

Portfolio Specialist, T. Rowe Price European Equities

June 2013

.

T. Rowe Price Overview

1 The combined assets under management of the T. Rowe Price group of companies in Euros. The T. Rowe Price group of companies includes T. Rowe Price Associates, Inc., T. Rowe Price International Ltd,

T. Rowe Price Hong Kong Limited, T. Rowe Price Singapore Private Ltd., and T. Rowe Price (Canada), Inc.

Assets under management are calculated in U.S. dollars and converted to Euros using an exchange rate determined by an independent third party. | 2 |

As of 31 March 2013 A Strong Firm With Deep Resource

T. Rowe Price’s Global Team of Investment Professionals

Assets under management: €480.8bn1

75 years of dedicated investment management and related services within an independent, highly stable organisation and a culture that puts client interests first

423 investment professionals in 7 offices across the globe

An experienced team of portfolio managers with an average firm tenure of 15 years

Firm led by a 7 person Management Committee with an average tenure of 22 years

Strong balance sheet with no long-term debt

Institutional assets represent over 50% of the firm’s diversified assets under management

191182182

202 237

256285

330 339

385423426

396

0

100

200

300

400

500

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 YTD

2013

Inv

estm

ent

Pro

fess

ion

als

PMs, PM / Analysts, Associate PMs

Analysts, Associate Analysts, Specialty Analysts

Others inc Portfolio Specialists, Traders, Quant Analysts

0

100

200

300

400

500

600

700

MS

CI A

ll Co

un

try W

orld

Ind

ex

T. Rowe Price’s European Equity Capabilities

As of 31 March 2013

1 Assets under management are calculated in U.S. dollars and converted to euros using an exchange rate determined by an independent third party. 2 As of 30 April 2013. Absolute performance may be negative for certain time periods. Access troweprice.com/sicavfunds for the latest performance information. 2012 Morningstar, Inc. All Rights Reserved.

Data as of 31 March 2013 and based on a comparison of the I Class of each T. Rowe Price Funds SICAV sub-fund to their respective Morningstar peer group, filtered by the field ‘Institutional: Yes’. Only

share classes that are categorised as ‘Institutional’ are included in the analysis thereby reducing the data-set to include only comparable share classes within each peer group. This filter should only be used as

an indicative guide. 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 responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results. | 3 |

Dean Tenerelli, Portfolio Manager

21 years of investment experience

Joined T. Rowe Price in 2000

Justin Thomson, Portfolio Manager

21 years of investment experience

Joined T. Rowe Price in 1998

Total firm investment in European equities in excess of €20billion1

• Investing in European equities since 1980

An experienced and coordinated European equity team

A global research platform offering broad and deep European and global coverage

• 20 European research analysts within a global team of 130 investment professionals

Active interaction with other experienced European investors

• Fixed Income colleagues provide additional perspectives (71 Fixed Income analysts worldwide)

Consistent and disciplined investment processes

• Confidence in ability to pursue strong risk-adjusted performance in the long-term

Key Points

T. Rowe Price Funds SICAV –

European Smaller Companies Equity Fund

T. Rowe Price Funds SICAV –

European Equity Fund

SICAV Percentile

Rankings in

Morningstar Fund

Categories (I Share Class)2

Percentile Absolute

20/44 44th

1 yr.

Absolute Percentile

5/32 13th

3 yr.

SICAV Percentile

Rankings in

Morningstar Fund

Categories (I Share Class)2

Percentile Absolute

42/266 16th

1 yr.

Absolute Percentile

14/227 6th

3 yr.

Structural Improvements Have Been Achieved In Europe

Competitiveness adjustment is about two thirds complete

| 4 |

Nominal Unit Labour Costs Indexed (Q1 2000 = 100)

Eurozone Periphery Current Account Balance % of GDP, Rolling 12 Month Period

Source: Eurostat, Haver.

90

100

110

120

130

140

150

Jan-00 Jan-02 Jan-04 Jan-06 Jan-08 Jan-10 Jan-12

Italy SpainIreland GreecePortugal GermanyFrance

-18%

-12%

-6%

0%

6%

Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12

Italy Spain

Ireland Greece

Portugal France

As of 31 May 2013

The Scale Of The Adjustment

| 5 |

Ireland National Residential Property Price Index 2005 = 100

Spain Current Account Balance and Labour Costs

40

60

80

100

120

140

2005 2006 2007 2008 2009 2010 2011 2012 2013

Source: Left hand exhibit Eurostat, Haver, right hand Central Statistics Office Ireland, Haver.

(12,000)

(9,000)

(6,000)

(3,000)

0

3,000

6,000

9,000

12,000

2000 2002 2004 2006 2008 2010 2012

Mo

nth

ly,

Mil

. E

UR

, S

A

80

85

90

95

100

105

110

115

120

SA

/WD

A,

20

05

= 1

00

Spain, Current Account Balance, lhs

Spain, Unit Labor Cost, rhs

As of 31 May 2013

A Robust Global Backdrop

Note: SA = Seasonally Adjusted.

Source: Census Bureau, FHFA, Bureau of Labor Statistics, Haver Analytics, Chinese Elevator Association, KONE Corporation, CLSA. | 6 |

Income Distribution In Mainland China

0

20

40

60

80

100

20

00

20

02

20

04

20

06

20

08

20

10

20

12

E

20

14

E

20

16

E

20

18

E

20

20

E

< US$500 US$500-2,500 US$2,500-5,000

US$5,000-7,500 US$7,500-10,000 > US$10,000

Growth in Chinese Elevator Market

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

450,000

19

92

19

94

19

96

19

98

20

00

20

02

20

04

20

06

20

08

20

10

20

12

China new lift equipment market, units

0

500

1,000

1,500

2,000

2,500

3,000

1992 1994 1997 2000 2003 2006 2009 2012

Th

ou

san

ds

-15

-10

-5

0

5

10

15

Pri

ce C

han

ge,

% y

oy

Occupied Housing Units (yoy, lhs) Housing Starts (SAAR, lhs)

House Price Index (% yoy, rhs)

Housing Statistics

3

5

7

9

11

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

SA

, %

Civilian Unemployment Rate: 16 yr + (SA, %)

Unemployment Rate

As of 31 May 2013

United States – Recovery Is Taking Hold China – What Kind Of Growth?

European Equity Valuations Are Still Attractive, Below Other Regions

| 7 |

Price Earnings Ratio Next 12 Month Cyclically Adjusted Real PER

CAPE, Europe vs. US

Source: Factset, Morgan Stanley.

0

10

20

30

40

50

1987 1990 1992 1995 1998 2000 2003 2005 2008 2010 2013

Europe

US

Japan

0

10

20

30

1987 1990 1992 1995 1998 2000 2003 2005 2008 2010 2013

Europe

US

Japan

0.4

0.6

0.8

1.0

1.2

1987 1990 1992 1995 1998 2000 2003 2005 2008 2010 2013

Europe vs. US

Average

As of 31 May 2013

European Equity Investment Philosophy

TANGIBLES

• Sustainable and superior profitability across the market cycle

• Durable and superior cash flow profile

• Balance sheet quality

INTANGIBLES

• Management strategy and use of capital

• A rational and growing industry

• Barriers to entry and pricing discipline

VALUATION

• Zero growth discounted cash flow valuation

• Controlling risk at the individual stock level

• Strong sell discipline

| 8 |

High quality companies acquired at attractive valuations – a disciplined and

timeless approach to investing

Identify Quality Businesses in Europe

Valuation Discipline

European Equity Investment Process

| 9 |

Investment Universe

Approximately 2,500 European companies

Initial Screening

• Fundamental analysis by research team

• Quantitative screening for “Quality”

Focus Universe

300-350 quality businesses with sustainable earnings

In-Depth Fundamental Analysis

• Detailed company analysis

• Assess industry dynamics

• Identify good management teams focused on shareholder returns

• Absolute and relative stock valuation

Risk Management and Portfolio Construction

High-conviction portfolio containing

50-80 stocks

EUROPEAN

BROADCASTERS

SPANISH

UTILITIES

GERMAN

TECHNOLOGY

SELECT

FINANCIALS

AIR TRAVEL

CAPITAL GOODS

Europe Is Rich With Opportunities – Some Current Examples

Source: T. Rowe Price. | 10 |

Both domestically and internationally orientated companies, as well as defensive

and those more economically sensitive

LUXURY GOODS

As of 31 May 2013

REAL ESTATE

20 Largest Overweight Positions

The specific securities identified and described above do not represent all of the securities purchased, sold, or recommended for the Fund, and no assumptions should be made that

the securities identified and discussed were or will be profitable. The information shown does not reflect any ETFs that may be held in the portfolio. Numbers may not total due to

rounding. | 11 |

As of 31 March 2013

Market Capitalisations Shown in Euros

T. Rowe Price Funds SICAV — European Equity Fund

Company

% of

Fund

% of

Index Difference

Market Capitalisation

(Millions) Country Industry

Wirecard 2.4% 0.0% 2.4% $3,131 Germany IT Services

Restaurant Group 2.0 0.0 2.0 1,423 United Kingdom Hotels, Restaurants, and Leisure

Gas Natural 1.9 0.1 1.8 17,746 Spain Gas Utilities

Enagas 1.8 0.1 1.7 5,569 Spain Gas Utilities

Bolsas Y Mercados Espanoles 1.6 0.0 1.6 2,057 Spain Diversified Financial Sevices

Fresenius SE & Co KGaA 1.8 0.2 1.6 22,033 Germany Health Care Providers and Services

Bankinter 1.5 0.0 1.5 2,731 Spain Commercial Banks

KBC 1.6 0.1 1.5 13,592 Belgium Commercial Banks

Simcorp 1.5 0.0 1.5 1,209 Denmark Software

Capita 1.6 0.1 1.5 8,957 United Kingdom Professional Services

Mediaset Espana Comunicacion 1.4 0.0 1.4 2,926 Spain Media

Anheuser-Busch InBev 2.4 1.1 1.3 159,399 Belgium Beverages

Rolls-Royce Holdings 1.8 0.4 1.4 32,262 United Kingdom Aerospace and Defense

Liberty Global 1.3 0.0 1.3 18,784 Germany Media

Unibail-Rodamco 1.6 0.3 1.3 22,140 France Real Estate Investment Trusts (REITs)

Autoliv 1.3 0.0 1.3 6,604 Sweden Auto Components

The Swatch Group 1.6 0.3 1.3 30,599 Switzerland Textiles, Apparel, and Luxury Goods

Amadeus IT Holding 1.4 0.1 1.3 12,113 Spain IT Services

Prysmian 1.3 0.1 1.2 4,421 Italy Electrical Equipment

Skandinaviska Enskilda Banken 1.4 0.2 1.2 22,079 Sweden Commercial Banks

Total 33.0% 3.1%

Luxury Goods – Fulfilling Dreams Around The World

| 12 |

The security identified is intended to illustrate our buy discipline and does not represent all of the securities purchased for the SICAV sub-fund. No assumptions should be made

that the security identified and discussed was or will be profitable. To further illustrate our buy discipline, a complete list of purchases of securities in the SICAV sub-fund during

the past year is available upon request, subject to applicable law. A complete list of sales of securities in the SICAV sub-fund during the past year is also available upon request,

subject to applicable law. Tod’s comprised 1.17% of the SICAV as of 31/03/2013

Source: FactSet, MSCI, “The Emerging Middle Class In Developing Countries”, Homi Kharas, OECD Working Paper No 285, 2010. Data as of 31 December 2012.

Middle East &

Africa

8%

Latin America

10%

North America

18%

Europe

36%

Asia Pacific

28% Middle East &

Africa

7%

Latin America

6%North America

7%

Europe

14%Asia Pacific

66%

2009 2030

Global Middle Class Breakdown By Region

Luxury Goods Industry Performance

0.4

0.8

1.2

1.6

2.0

2.4

Dec-06 Oct-07 Jul-08 May-09 Feb-10 Dec-10 Sep-11 Jul-12 Apr-13

0.6

0.8

1.0

1.2

1.4

1.6

Rel

ativ

e P

/E N

12

M,

Dec

-06

= 1Relative Performance Relative Valuation

Rel

ativ

e T

ota

l R

etu

rn, E

UR

, D

ec-0

6 =

1

Enagas Next 12 Months Price Earnings Ratio

Spanish Utilities – Domestic Defensives Can Also Be Attractive

| 13 |

Spanish Utilities Relative To MSCI Europe Index

Enagas Return On Capital Employed

0

5

10

15

20

Oct-02 Feb-04 Jun-05 Oct-06 Jan-08 May-09 Sep-10 Jan-12 Apr-13

PE

R

0

2

4

6

8

10

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Per

cen

t

0.6

0.7

0.8

0.9

1.0

1.1

1.2

1.3

1.4

1.5

1.6


31

Dec

emb

er 2

00

6 =

1

The security identified is intended to illustrate our buy discipline and does not represent all of the securities purchased for the SICAV sub-fund. No assumptions should be made that the security identified and

discussed was or will be profitable. To further illustrate our buy discipline, a complete list of purchases of securities in the SICAV sub-fund during the past year is available upon request, subject to applicable

law. A complete list of sales of securities in the SICAV sub-fund during the past year is also available upon request, subject to applicable law.

Enagas comprised 1.75% of the SICAV as of 31/03/2013. Source: Factset, company data. As of 31 May 2013.

European Banks – Selectively, Some Very Attractive Opportunities

| 14 |

Price to Tangible Book Ratios MSCI Europe Index – Banks

Return on Tangible Equity

0

1

2

3

4

5

Jan-80 Jul-85 Jan-91 Jul-96 Jan-02 Jul-07 Dec-12

US Europe

-10%

0%

10%

20%

30%

19

80

19

83

19

86

19

89

19

92

19

95

19

98

20

01

20

04

20

07

20

10

20

13

e0

20

40

60

80

100

120


To

tal

Ret

urn

, E

UR

, D

ec-0

6 =

10

0

Source: MSCI, Morgan Stanly Research, Bank of America Merrill Lynch, Factset, Barclays, As of 31 May 2013.

Sector and Industry Diversification

| 15 |

Sector Weights

As of 31 May 2013

T. Rowe Price Funds SICAV — European Equity Fund vs. MSCI Europe Index

Top Five and Bottom Five Relative Industry Weights

-10 -5 0 5 10 15

Media

Gas Utilities

IT Services

Real Estate Investment

Trusts

Commercial Banks

Oil, Gas and Consumerable

Fuels

Insurance

Metals and Mining

Pharmaceuticals

Food Products

-15 -10 -5 0 5 10 15 20 25

Consumer Discretionary

Information Technology

Industrials and

Business Services

Financials

Utilities

Telecommunication

Services

Healthcare

Energy

Materials

Consumer Staples

T. Rowe Price uses the MSCI/S&P Global Industry Classification Standard (GICS) for sector and industry reporting. Each year, MSCI and S&P review

the GICS structure. The last change occurred on 1 July 2010. T. Rowe Price will adhere to all future updates to GICS for prospective reporting.

European Equity Fund MSCI Europe Index Over/Underweighting

Country Diversification, By Domicile

| 16 |

Top Five and Bottom Five Relative Country Weights

-15 0 15 30 45

Spain

Italy

Belgium

Sweden

Greece

Germany

Switzerland

France

Netherlands

United Kingdom

As of 31 May 2013

T. Rowe Price Funds SICAV — European Equity Fund vs. MSCI Europe Index

European Equity Fund MSCI Europe Index Over/Underweighting

BNP

Capita

CC Hellenic

Enagas

Eni

Fraport Gas Natural Gecina

Gjensidige

Intesa

KBC

Liberty G

Nordea

D'Ieteren

Sampo Simcorp

SEB

Sky Deutsch.

Swedbank

Unibail-Rodamco

Wirecard

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Oth

er E

uro

pe

Domestic

European Equity – Geographic Exposures

A3 TV

BankInter

Bolsas y Merc.

Iliad

Land Secs.

M6 TV

Mediaset Espana

Persimmon

Red Electrica

Restaurant Group

Snam

Utilities (esp. Spain)

Financials (esp. Nordic)

Broadcasters (various)

Property (France, UK)

Country Diversification, By Revenue Exposure

Source: T. Rowe Price, company accounts. Data as of 31 May 2013. The specific securities identified and described above do not represent all of the securities purchased, sold, or recommended for the

Fund, and no assumptions should be made that the securities identified and discussed were or will be profitable. The information shown does not reflect any ETFs that may be held in the portfolio. | 17 |

Total Return Performance

One

Month

Three

Months

Year-to-

Date

One

Year

Three

Years

Since

Manager

Inception

6 May 2009

Five

Years

Since

Inception

26 Feb 2007

European Equity Fund Class I1 2.88% 7.80% 14.46% 31.77% 14.49% 15.50% 3.29% 0.58%

MSCI Europe Index2 2.09 5.66 9.73 29.39 10.76 13.32 2.11 -0.13

Value Added (Net of Fees) 0.79 2.14 4.73 2.38 3.73 2.18 1.18 0.71

Periods Ended 31 May 2013

Figures Shown in Euros

1 Fund shares are subject to investment risk, including possible loss of principal amount invested. Figures are shown at NAV and include changes in principal value, reinvested

dividends, and capital gain distributions. Investment return and principal value will vary, and shares may be worth more or less at redemption than at original purchase. Past

performance cannot guarantee future results. For performance calculation purposes, securities are valued with prices taken at the official NAV pricing time. Pricing sources

may vary between the official NAV, the benchmark, and the sub-manager. Performance is shown for the funded classes of the Fund as of the date shown above. For availability

of other classes of shares and their respective fees, expenses, and performance, please refer to the prospectus or contact the fund’s distributor. 2 Returns shown with gross dividends reinvested.

Returns for MSCI Europe Index are calculated in USD and converted to EUR using an exchange rate determined by an independent third party.

Annualised

| 18 |


Calendar Years

26 Feb 2007 –

31 Dec 2007 2008 2009 2010 2011 2012

European Equity Fund Class I1 -3.20% -47.42% 37.33% 15.59% -6.81% 20.32%

MSCI Europe Index2 -1.48 -43.29 32.55 11.75 -7.51 18.09

Value Added (Net of Fees) -1.72 -4.13 4.78 3.84 0.70 2.23

Consistency of Performance

| 19 |

1 Returns shown with gross dividends reinvested. 2 Portfolio manager assumed responsibilities on 6 May 2009, whereas Fund and index returns are as of 30 June 2009.

Each point represents the performance of the Fund and its benchmark for a 1-year annualized period. Points above the diagonal represent outperformance relative to the

benchmark. Points below the diagonal represent relative underperformance.

Figures for the Sub-Fund and Index are shown in gross of fees. Past performance cannot guarantee future results.

Performance is computed in U.S. dollars and converted to euros using an exchange rate determined by an independent third party.


One-Year Rolling Returns — T. Rowe Price Funds SICAV — European Equity Fund vs. MSCI Europe Index1

Calculated Monthly Since Manager Inception2 30 June 2009 to 31 March 2013

-60

-40

-20

0

20

40

60

-60 -40 -20 0 20 40 60E

uro

pe E

qu

ity

Fu

nd

Percent

Fund

Underperformance

MSCI Europe Index1

Fund

O utperformance

FURTHER INFORMATION: EUROPEAN EQUITY FUND

Attribution Analysis – Major Impacts

| 21 |

Three Years Ended 31 March 2013


T. Rowe Price Funds SICAV – European Equity Fund vs. MSCI Europe Index

-2

0

2

4

6

Total Industrials

& Business

Services

Consumer

Discretionary

Information

Technology

Utilities Materials Telecom

Services

Financials Health Care Consumer

Staples

Energy

Val

ue

Ad

ded

- P

erce

nt

Total Value Added

Value Added from

Sector Weight

Value Added from

Stock Selection

By Sector

-2

0

2

4

6

Total Germany France Spain Italy Sweden Denmark Greece Switzerland Ireland Russia

Val

ue

Ad

ded

- P

erce

ntTotal Value Added

Value Added from

Country Weight

Value Added from

Stock Selection

By Country (Top Five and Bottom Five Effects Shown)

Numbers may not add to 100% due to rounding; all numbers are percentages. Analysis represents the equity-only performance of the portfolio as calculated by the Wilshire Atlas attribution model and is exclusive

of cash, trusts, mutual funds, de-listed securities, and other non-equity holdings. Returns will not match official TRP performance because Wilshire uses different pricing and exchange rate sources and does not

capture intra-day trading or fair-value pricing. Performance for each security is obtained in the local currency and, if necessary, is converted using an exchange rate determined by an independent third party.

Source: Wilshire Atlas, MSCI/S&P GICS Sectors; Analysis by T. Rowe Price Associates, Inc.

T. Rowe Price uses the MSCI/S&P Global Industry Classification Standard (GICS) for sector and industry reporting. Each year, MSCI and S&P make changes to the GICS structure. The last change occurred on 1

July 2010.T. Rowe Price will adhere to all future updates to GICS for prospective reporting.

Figures are shown gross of fees. Past performance cannot guarantee future results.

Portfolio Characteristics

1 Three years ended 31 March 2013. Statistics are based on monthly net returns of Class I shares. Past performance cannot guarantee future results. 2 Market capitalisations are calculated in U.S. dollars and converted to euros using an exchange rate determined by an independent third party. 3 Source: IBES.

Statistics are investment-weighted median unless otherwise noted.

As of 31 March 2013

Market Capitalizations Shown in Euros

| 22 |


European Equity Fund MSCI Europe Index

Number of Holdings 74 424

Return on Equity (Current Fiscal Year) 14.0% 14.4%

Beta1 1.05 1.00

Investment Weighted Average Market Capitalisation (Millions)2 €31,293 €56,832

Price to Earnings (Current Fiscal Year) 14.2X 13.2X

Projected Earnings Growth Rate (Current Fiscal Year)3 9.4% 7.6%

Price to Book Ratio 2.5X 2.1X

Expected Investment Parameters

1 The expected parameters are relative to the MSCI Europe Index and represent anticipated ranges of exposures at the time of purchase. Market fluctuations may cause actual

exposure to fall outside these ranges. | 23 |

T. Rowe Price Funds SICAV – European Equity Fund1

As of 31 March 2013

Benchmark: MSCI Europe Index

Country Ranges: Typically +/- 10% relative to benchmark

Broad Sector Ranges: Typically +/- 10% relative to benchmark

Stock Positions: Typical position size range: 0.5% to 4.0%

Cash Target Range: Fully invested (typically <5%)

Turnover Range: 60% to 100%

Expected Tracking Error: Typically 3.0% to 6.0%

Performance Target (Before Fees): 250 bps or greater


| 24 |





of other classes of shares and their respective fees, expenses, and performance, please refer to the prospectus or contact the fund’s distributor. 2 Returns shown with gross dividends reinvested.

Returns for MSCI Europe Index are calculated in USD and converted to EUR using an exchange rate determined by an independent third party.




Calendar Years

2 May 2007 –

31 Dec 2007 2008 2009 2010 2011 2012

European Equity Fund Class A1 -5.10% -47.84% 35.96% 14.71% -7.64% 19.35%

MSCI Europe Index2 -4.08 -43.29 32.55 11.75 -7.51 18.09

Value Added (Net of Fees) -1.02 -4.55 3.41 2.96 -0.13 1.26

One

Month

Three

Months

Year-to-

Date

One

Year

Three

Years

Since

Manager

Inception

6 May 2009

Five

Years

Since

Inception

2 May 2007

European Equity Fund Class A1 2.86% 7.54% 13.98% 30.73% 13.52% 14.51% 2.41% -0.50%

MSCI Europe Index2 2.09 5.66 9.73 29.39 10.76 13.32 2.11 -0.57

Value Added (Net of Fees) 0.77 1.88 4.25 1.34 2.76 1.19 0.30 0.07

Annualised

Fee Schedules

The fee schedule represents only the management fee of the SICAV sub-fund and excludes custodial and administrative fees. A full list of the currently issued Share Classes

including Distributing, Hedged and Accumulating Categories may be obtained, free of charge and upon request, from the registered office of the Company. 1 In euros.

Sales Charge

(up to)

Minimum Initial Investment

and Holding Amount1

Minimum Subsequent

Investment1

Investment

Management Fee

Class I N/A €2,500,000 €100,000 65 basis points

Class A

(Category A & Ad) 5.00% €15,000 €1,000 150 basis points

As of 31 March 2013

| 25 |



| 26 |

1 Portfolio manager assumed responsibilities on 10 October 2005, whereas composite and index returns are as of 31 October 2005. 2 Net of fees performance reflects the deduction of the highest applicable management fee (Model Net Fee) that would be charged based on the fee schedule appropriate to you for

this mandate, without the benefit of breakpoints. Please be advised that the composite may include other investment products that are subject to management fees that are

inapplicable to you but are in excess of the Model Net Fee. Therefore, the actual performance of all the portfolios in the composite on a net fee basis will be different and may be

lower than the Model Net Fee performance. However, such Model Net Fee performance is intended to provide the most appropriate example of the impact management fees

would have by applying management fees relevant to you to the gross performance of the composite. Past performance cannot guarantee future results.

Supplemental information. See “GIPS® Disclosure” for additional performance information. 3 Returns shown with gross dividends reinvested. 4 The Value Added is shown as Europe Equity Composite (Gross of Fees) minus MSCI Europe Index.

Valuations and performance are computed in U.S. dollars and converted to euros. When converting U.S. dollar composite returns, benchmarks, dispersion, and asset data, the

same exchange rate source is used consistently. Total returns in non-U.S. dollar currencies are calculated by adjusting U.S. dollar performance by the percent change in the U.S.

dollar/foreign currency exchange rate (as determined by an independent third party) for the time periods selected.

MSCI index returns are shown with gross dividends reinvested.

Periods Ended 31 March 2013


Annualised

Three

Months

One

Year

Three

Years

Five

Years

Since Manager

Inception

31 Oct 20051

Ten

Years

Europe Equity Composite (Gross of Fees) 7.58% 18.04% 11.29% 6.28% 6.13% 10.19%

Europe Equity Composite (Net of Fees)2 7.45 17.46 10.74 5.75 5.60 9.64

MSCI Europe Index3 5.58 15.42 7.33 2.80 3.43 8.55

Value Added (Gross of Fees)4 2.00 2.62 3.96 3.48 2.70 1.64

Europe Equity Composite

Fee Schedule

| 27 | 1 A transitional credit is applied to the fee schedule as assets approach or fall below the breakpoint.

As of 31 March 2013



First €40 million 50 basis points

Next €40 million 45 basis points

When assets exceed €80 million 40 basis points on all assets1

When assets exceed €160 million 35 basis points on all assets1

Minimum separate account size €40 million

The Europe Equity Composite seeks long-term capital appreciation

primarily through investment in established companies, in developed

European markets, with faster earnings growth and reasonable valuation

levels relative to market/sector averages. The strategy generally includes

0-10% exposure to emerging markets stocks as defined by inclusion in

the European segment of the MSCI Emerging Markets (Free) Index.

(Created June 2006) (Formerly known as the Europe Equity Composite)

GIPS® Disclosure

| 28 |

1 Reflects deduction of highest applicable fee schedule without benefit of breakpoints. Investment return and principal value will vary. Past performance cannot guarantee future

results. See below for further information related to net of fee calculations.

T. Rowe Price (“TRP”) has prepared and presented this report in compliance with the Global Investment Performance Standards (GIPS®). TRP has been independently verified

for the 10-year period ended June 30, 2012 by KPMG LLP. The verification report is available upon request. Verification assesses whether (1) the firm has complied with all the

composite construction requirements of the GIPS standards on a firm-wide basis and (2) the firm's policies and procedures are designed to calculate and present performance in

compliance with the GIPS standards. Verification does not ensure the accuracy of any specific composite presentation.

TRP is a U.S. investment management firm with various investment advisers registered with the U.S. Securities and Exchange Commission, the U.K. Financial Services

Authority, and other regulatory bodies in various countries and holds itself out as such to potential clients for GIPS purposes. TRP further defines itself under GIPS as a

discretionary investment manager providing services primarily to institutional clients with regard to various mandates, which include U.S., international, and global strategies but

excluding the services of the Private Asset Management group. The minimum asset level for equity portfolios to be included in composites is $5 million and prior to January 2002

the minimum was $1 million. The minimum asset level for fixed income and asset allocation portfolios to be included in composites is $10 million; prior to October 2004 the

minimum was $5 million; and prior to January 2002 the minimum was $1 million. Valuations and performance are computed in U.S. dollars and converted to Euro. When

converting U.S. dollar composite returns, benchmarks, dispersion and asset data, the same exchange rate source is used consistently. Total returns in non-U.S. dollar currencies

are calculated by adjusting U.S. dollar performance by the percent change in the U.S. dollar/foreign currency exchange rate (as determined by an independent third party) for the

time periods selected.

Gross performance returns are presented before management and all other fees, where applicable, but after trading expenses. Net of fees performance reflects the deduction of the

highest applicable management fee that would be charged based on the fee schedule appropriate to you for this mandate, without the benefit of breakpoints. Gross and net

performance returns are net of nonreclaimable withholding taxes on dividends, interest income, and capital gains. Policies for valuing portfolios, calculating performance, and

preparing compliant presentations are available upon request. Dispersion is measured by the standard deviation across asset-weighted portfolio returns represented within a

composite for the full year. Dispersion is not calculated for the composites in which there are five or fewer portfolios. Some portfolios may trade futures, options, and other

potentially high-risk derivatives which generally represent less than 10% of a portfolio.

Benchmarks are taken from published sources and may have different calculation methodologies, pricing times, and foreign exchange sources from the composite.

Composite policy requires the temporary removal of any portfolio incurring a client initiated significant cash inflow or outflow greater than or equal to 15% of portfolio assets.

The temporary removal of such an account occurs at the beginning of the measurement period in which the significant cash flow occurs and the account re-enters the composite

on the last day of the current month after the cash flow. Additional information regarding the treatment of significant cash flows is available upon request.

The firm's list of composite descriptions and/or a presentation that adheres to the GIPS® standards are available upon request.

Periods Ended 31 March 2013



2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 YTD 2013

Gross Annual Returns (%) 14.85 9.03 26.86 18.87 5.05 -39.78 31.6 17.51 -5.34 22.42 7.58

Net Annual Returns (%)1 14.28 8.49 26.24 18.29 4.53 -40.09 30.96 16.94 -5.81 21.82 7.45

MSCI Europe Index (%) 15.76 12.65 26.68 20.18 3.17 -43.29 32.55 11.75 -7.51 18.09 5.58

Composite 3-Yr St. Dev. 20.2 17.65 11.32 8.45 9.7 16.46 19.48 20.9 17.4 14.03 13.17

MSCI Europe Index 3-Yr St. Dev. 20.11 17.85 11.31 7.37 8.73 16.22 20.22 20.85 16.98 13 12.30

Composite Dispersion N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A

Comp. Assets (Millions) 959.2 903.3 688.2 766.7 786.1 407.6 506.1 550 502 688.1 757.5

# of Accts. in Comp. 2 2 1 1 1 1 2 2 2 2 2

Total Firm Assets (Billions) 149.1 172.7 228 253.1 271.9 198.3 275.4 361.5 379.8 439.8 483.4

FURTHER INFORMATION: EUROPEAN SMALLER COMPANIES EQUITY FUND

Sector and Industry Diversification

| 30 |

Sector Weights

As of 31 May 2013

T. Rowe Price Funds SICAV — European Smaller Companies Equity Fund vs. S&P Pan Europe SmallCap Index

Top Five and Bottom Five Relative Industry Weights

-5 0 5 10 15-10 0 10 20 30

T. Rowe Price uses the MSCI/S&P Global Industry Classification Standard (GICS) for sector and industry reporting. Each year, MSCI and S&P make changes to

the GICS structure. The last change occurred on 1 July 2010. T. Rowe Price will adhere to all future updates to GICS for prospective reporting.

European Smaller Companies Equity Fund S&P Pan Europe SmallCap Index Over/Underweighting

Information

Technology

Health Care

Consumer

Discretionary

Telecommunication

Services

Energy

Utilities

Consumer Staples

Materials

Industrials and

Business Services

Financials

Capital Markets

Software

Specialty Retail

IT Services

Professional Services

Commercial Banks

Real Estate Investment

Trusts (REITs)

Food Products

Real Estate Management

and Development

Insurance

Country Diversification

| 31 |

Top Five and Bottom Five Relative Country Weights

-10 0 10 20 30 40

Germany

United Kingdom

Spain

Ireland

Norway

Netherlands

Denmark

Sweden

France

Switzerland

As of 31 May 2013

T. Rowe Price Funds SICAV — European Smaller Companies Equity Fund vs. S&P Pan Europe SmallCap Index

European Smaller Companies Equity Fund S&P Pan Europe SmallCap Index Over/Underweighting

Attribution Analysis – Major Impacts

| 32 |

Since Inception (26 November 2008) to 31 March 2013


T. Rowe Price Funds SICAV – European Smaller Companies Equity Fund vs. S&P Pan Europe SmallCap Index

-1

0

1

2

3

4

5

6

7

8

9

Total Financials Health Care Industrials

& Business

Services

Information

Technology

Telecom

Services

Utilities Energy Consumer

Discretionary

Consumer

Staples

Materials

Val

ue

Ad

ded

- P

erce

nt

Total Value Added

Value Added from

Sector Weight

Value Added from

Stock Selection

By Sector

-1

0

1

2

3

4

5

6

7

8

9

Total Germany Spain Switzerland Italy France Ukraine Austria Denmark Sweden United

Kingdom

Val

ue

Ad

ded

- P

erce

ntTotal Value Added

Value Added from

Country Weight

Value Added from

Stock Selection

By Country (Top Five and Bottom Five by Total Value Added)

Numbers may not add to 100% due to rounding; all numbers are percentages. Analysis represents the equity-only performance of the portfolio as calculated by the Wilshire Atlas attribution model and is exclusive

of cash, trusts, mutual funds, de-listed securities, and other non-equity holdings. Returns will not match official TRP performance because Wilshire uses different pricing and exchange rate sources and does not

capture intra-day trading or fair-value pricing. Performance for each security is obtained in the local currency and, if necessary, is converted using an exchange rate determined by an independent third party.

Source: Wilshire Atlas, MSCI/S&P GICS Sectors; Analysis by T. Rowe Price Associates, Inc.

T. Rowe Price uses the MSCI/S&P Global Industry Classification Standard (GICS) for sector and industry reporting. Each year, MSCI and S&P make changes to the GICS structure. The last change occurred on 1

July 2010.T. Rowe Price will adhere to all future updates to GICS for prospective reporting.

Figures are shown gross of fees. Past performance cannot guarantee future results.

Portfolio Characteristics

1 Market capitalisations are calculated in U.S. dollars and converted to euros using an exchange rate determined by an independent third party. 2 Source: IBES.

Statistics are investment-weighted median unless otherwise noted.

As of 31 March 2013

Market Capitalizations Shown in Euros

| 33 |

T. Rowe Price Funds SICAV — European Smaller Companies Equity Fund

European Smaller

Companies Equity

Fund

S&P Pan Europe

SmallCap Index

Number of Holdings 93 1,310

Investment Weighted Median Market Capitalisation (Millions)1 €1,686 €2,424

Investment Weighted Average Market Capitalisation (Millions)1 €2,349 €2,979

Price to Earnings (Current Fiscal Year) 16.4X 14.4X

Projected Earnings Growth Rate (12 Months Forward)2 12.5% 9.1%

Price to Book Ratio 3.0X 2.0X

Return on Equity (Current Fiscal Year) 18.7 14.1

Expected Investment Parameters

1 The expected parameters are relative to the S&P Pan Europe SmallCap Index and represent anticipated ranges of exposures at the time of purchase. Market fluctuations may cause

actual exposure to fall outside these ranges. | 34 |

T. Rowe Price Funds SICAV – European Smaller Companies Equity Fund1

As of 31 March 2013

Benchmark: S&P Pan Europe SmallCap Index

Country Ranges: Unconstrained within Europe

Emerging Europe Exposure: Maximum 10%

Broad Sector Ranges: Unconstrained

Stock Positions: Typical position size range: 0.2% to 5.0%

Cash Target Range: Maximum 10%

Expected Tracking Error: Typical range 350-700 bps

Number of Holdings: Generally from 75-125


| 35 |

One

Month

Three

Months

Year-to-

Date

One

Year

Two

Years

Three

Years

Since

Inception

26 Nov

2008

European Smaller Companies Equity Fund – SICAV

Class I1 3.37% 4.29% 10.79% 28.56% 10.90% 16.05% 24.64%

S&P Pan Europe SmallCap Index 3.45 5.30 12.31 31.63 6.86 12.77 19.59

Value Added2 -0.08 -1.01 -1.52 -3.07 4.04 3.28 5.05



Annualised

T. Rowe Price Funds SICAV — European Smaller Companies Equity Fund1

Calendar Years

20084 2009 2010 2011 2012

European Smaller Companies Equity Fund – SICAV Class I1 -0.10% 65.77% 27.66% -14.19% 34.40%

S&P Pan Europe SmallCap Index -0.24 48.08 27.57 -15.59 25.43

Value Added2 0.14 17.69 0.09 1.40 8.97

1 Fund shares are subject to investment risk, including possible loss of principal amount invested. Figures are shown at NAV and include changes in principal value, reinvested dividends, and capital gain

distributions. Investment return and principal value will vary, and shares may be worth more or less at redemption than at original purchase. Past performance cannot guarantee future results. For

performance calculation purposes, securities are valued with prices taken at the official NAV pricing time. Pricing sources may vary between the official NAV, the benchmark, and the sub-manager.

Performance is shown for the funded classes of the Fund as of the date shown above. For availability of other classes of shares and their respective fees, expenses, and performance, please refer to the

prospectus or contact the fund’s distributor. 2 The Value Added is shown as T. Rowe Price Funds SICAV – European Smaller Companies Equity Fund Class I minus S&P Pan Europe SmallCap Index








of other classes of shares and their respective fees, expenses, and performance, please refer to the prospectus or contact the fund’s distributor. 2 The Value Added is shown as T. Rowe Price Funds SICAV – European Smaller Companies Equity Fund Class A minus S&P Pan Europe SmallCap Index.

| 36 |

T. Rowe Price Funds SICAV — European Smaller Companies Equity Fund1

One

Month

Three

Months

Year-to-

Date

One

Year

Two

Years

Three

Years

Since

Inception

26 Nov

2008

European Smaller Companies Equity Fund – SICAV

Class A1 3.31% 4.05 10.39% 27.43% 9.90% 14.98% 23.51%

S&P Pan Europe SmallCap Index 3.45 5.30 12.31 31.63 6.86 12.77 19.59

Value Added2 -0.14 -1.74 -1.92 -4.20 3.04 2.21 3.92

Annualised

Calendar Years

20084 2009 2010 2011 2012

European Smaller Companies Equity Fund – SICAV Class A1 -0.20% 64.23% 26.54% -15.00% 33.18%

S&P Pan Europe SmallCap Index -0.24 48.08 27.57 -15.59 25.43

Value Added3 0.04 16.15 -1.03 0.59 7.75

Fee Schedules

The fee schedule represents only the management fee of the SICAV sub-fund and excludes custodial and administrative fees. A full list of the currently issued Share Classes

including Distributing, Hedged and Accumulating Categories may be obtained, free of charge and upon request,from the registered office of the Company. 1 In euros.

As of 31 March 2013

| 37 |

Sales Charge

(up to)

Minimum Initial Investment

and Holding Amount1

Minimum Subsequent

Investment1

Investment

Management Fee

Class I N/A €2,500,000 €100,000 95 basis points

Class A

(Category A & Ad) 5.00% €15,000 €1,000 180 basis points

T. Rowe Price Funds SICAV — European Smaller Companies Equity Fund

APPENDIX

Andrew Clifton

| 39 |

Andrew Clifton, European Equities Portfolio Specialist

Andrew Clifton is a portfolio specialist in the Equity Division at T. Rowe Price

responsible for European Equity strategies. Mr. Clifton is a vice president of

T. Rowe Price International Ltd.

Mr. Clifton has over 23 years of investment experience. Prior to joining the firm

in 2010, he was an executive director at UBS Global Asset Management.

Mr. Clifton earned a B.Sc. in economics from the London School of Economics

and a M.Sc. in econometrics from the University of Southampton.

Equity Research Team

1 Also has portfolio management responsibilities. 2 8 sector portfolio managers, 91 research analysts, 23 associate research analysts, 5 quantitative analysts, and 3 specialty analysts as of 31 March 2013. Highlighted names reflect

analysts with European research responsibilities. | 40 |

130 Equity Research Professionals worldwide.2

As of 31 March 2013

HEALTHCARE

Ziad Bakri, CFA, MD BAL U.S. Biotech

Simon Cheng, CFA HKG Asia Ex-Japan HC Services

Melissa Gallagher, Ph.D. LON O.U.S. Pharma

Paul O’Sullivan SYD Hospital Supply, Pharma, HC Services

Taymour R. Tamaddon, CFA1 BAL Medical Supply, Life Sciences and Specialty Pharmaceuticals

Jean-Pierre Thibaud, CFA LON LatAm HC

Rouven Wool-Lewis, Ph.D. BAL HC Services

John Xie HKG Asia HC Services (ex Pharma)

BUSINESS SERVICES

Andrew Fones BAL IT Consulting, Staffing, Education

Clark R. Shields BAL Transaction Processors, Financial Services Related, Other

BAL Baltimore

BA Buenos Aires

LON London

SYD Sydney

SGP Singapore

HKG Hong Kong

TOK Tokyo

FINANCIAL SERVICES

Malik Asif LON Africa & Middle East Banks

Hari Balkrishna LON Canada, Scandinavian, UK Banks

Jon Friar BAL Regional Banks

Christopher T. Fortune, CFA BAL Banks (Smaller)/Thrifts

Tetsuji Inoue TOK Japan Real Estate & Non-Bank Financials

Nina Jones, CPA BAL Real Estate

Yoichiro Kai, CMA SGP Japan Banks and Insurance, Greater China Banks

Aden Lau SGP Asia Ex-Japan Non-Bank Financials, Infrastructure Finance

David M. Lee, CFA1 BAL Real Estate

Ian C. McDonald, CFA BAL Canadian Ins Companies; Financial Exchanges, Life Ins

Jihong Min SGP South East Asia and Korea Banking

Eric C. Moffett HKG Asia Ex-Japan Real Estate

Sridhar Nishtala SGP Asia Ex-Japan Ins

Paul O’Sullivan SYD Major & Regional Banks, Asset Managers, P&C & Speciality Ins, Speciality Finance

Viral Patel SYD Australian REITS

Frederick Rizzo, CFA LON European Banks

Matt Snowling, CFA BAL Financial Services Companies

Gabriel Solomon BAL Multi-line, P&C Ins

Mitchell Todd, CA LON Europe Ins/Financials

Eric L. Veiel, CFA1 BAL Asset Managers, Investment Banks, Money Center Banks

Marta Yago LON European Real Estate, Asset Managers and Brokerage Firms, Rating Agencies

TECHNOLOGY

Kennard W. Allen1 BAL Hardware, Software

Rhett K. Hunter BAL Smid-Cap Generalist

Jai Kapadia HKG Asia Ex-Japan Tech Materials

Shalin Mody, CFA BAL Smid-Cap Telecom Equipment, Semiconductors

Tobias Mueller LON Europe Semiconductors, Software

Hiroaki Owaki, CFA TOK Japan Generalist

Adam Poussard, CFA BAL Semiconductor Capital Equipment

Joshua K. Spencer, CFA1 BAL Semiconductors & Equipment

Thomas H. Watson, CFA BAL Software

Justin P. White, CFA BAL Storage, Network Equipment

Nalin Yogasundram BAL Alt Energy

Alison Yip HKG Asia Ex-Japan Generalist

MEDIA/TELECOM

Archibald Ciganer, CFA TOK Japan Media, Telecom Services

Jim Friedland BAL Media Companies

Paul D. Greene BAL Adv, Diversified Media, Radio, TV

Randal Jenneke1 SYD Australia Media

Ryan Martyn SYD Australia/New Zealand Telecom

Daniel Martino, CFA1 BAL Telecom Services & Cable

Corey Shull, CFA BAL Media, Internet

Justin P. White, CFA BAL Internet Infrastructure, Cable,

Christopher Whitehouse LON Europe Media, Telecom Services

Wenli Zheng HKG Asia Telecom, Internet

CONSUMER/RETAIL

Paulina Amieva LON Latin America & South Africa Retail

Francisco M. Alonso BAL Soft Goods, Hard Goods, Discount Stores, Textiles, Apparel

Ira W. Carnahan, CFA BAL Soft Goods, Toys, Nutrition, Diet and Direct Sellers, Outdoor Equipment

Archibald Ciganer, CFA TOK Japan Consumer

Jessie Ding HKG Consumer Discretionary

Barry Henderson BAL Hard Goods, Discount Stores, Gaming

Randal Jenneke1 SYD Australia Gaming

Michael Lasota BAL Cruise Lines, Commercial Brokers, Lodging

Ian C. McDonald, CFA BAL Housing

Sridhar Nishtala SGP Retail, Consumer Products, Leisure

Paul O’Sullivan SYD Apparel & Footwear, Specialty Retail

Viral Patel SYD Australia Food & Beverage Retailers

Robert T. Quinn, Jr. BAL Food, Beverage, Tobacco, Personal Care, Cosmetics, Conglomerates (Multi-Cap)

Sebastian Schrott LON European Retail and Luxury Goods

Amit Seth BAL Branded Apparel, Footwear

Vivian Si BAL Soft Goods, Textiles, Apparel

Jonty Starbuck, CFA LON Europe Food, Beverage, Tobacco, Personal Care, Gaming, Lodging

Ashley R. Woodruff, CFA BAL Restaurants, Supermarkets

INDUSTRIALS

Paulina Amieva LON Latin America Airlines

Hari Balkrishna LON Europe Autos

Sheena Barbosa,CFA SGP Asia Ex-Japan Infrastructure

Peter J. Bates, CFA BAL Env Services, Ind Manufacturing, Agriculture Equipment, Capital Goods, Mega Conglomerates

Jonathan Chou, CFA BAL Auto Manufacturers, Distributors, Rental Cars

Archibald Ciganer, CFA TOK Japan Transport

Andrew Davis BAL Airlines, Railroads, Trucking

Eric DeVilbiss, CFA BAL Agriculture

Jin Jeong, CPA LON Europe Capital Goods, Auto

Jai Kapadia HKG Asia Ex-Japan Conglomerates

Ryan Martyn SYD Australia Building Materials

Susanta Mazumdar1 SGP Asia Ex-Japan Infrastructure

Sridhar Nishtala SGP Airlines

Curt J. Organt, CFA BAL Smid-Cap Generalist, Distribution

Austin M. Powell, CFA TOK Japan Ind Manufacturing

Vivek Rajeswaran BAL Waste Management

David L. Rowlett, CFA BAL Aerospace and Defense

Jeneiv Shah, CFA LON Eastern Europe Autos, Transport, Airlines

John C. A. Sherman LON Aerospace and Defense, Transport, Logistics

Clark R. Shields BAL Air Freight, Logistics

Eunbin Song, CFA SGP Steel, Shipbuilding, E&C, Asia Ex-Japan Power Equipment

Jean-Pierre Thibaud, CFA LON Transportation Infrastructure

John Xie HKG Asia Transport

Christopher Yip, CFA HKG Asia Ex-Japan Ind Manufacturing

NATURAL RESOURCES

Haider Ali SGP Asia Ex-Japan Oil and Gas, Mining, Non-ferrous Metals

Malik Asif LON Middle East Petrochemicals

Sheena Barbosa, CFA SGP Asia Ex-Japan Utilities

Ryan N. Burgess, CFA BAL Chemicals, Utilities

Archibald Ciganer, CFA TOK Japan Utilities

Shawn T. Driscoll BAL E&P, Coal, E&C

Ryan S. Hedrick, CFA BAL Coal

Shinwoo Kim BAL Energy Services

Jeremy Kokemor, CFA BAL Smid-Cap Metals

Steven D. Krichbaum, CFA1 BAL Small-Cap Utilities

Ben Landy BAL E&C Fertilizer, Ind Gases

Ryan Martyn SYD Australia Energy, Chemicals, E&P

Susanta Mazumdar1 SGP Asia Ex-Japan Utilities, Energy

Heather K. McPherson1 BAL Paper, Forest Products

Timothy E. Parker, CFA1 BAL Energy Service, E&P, Global Energy Majors

Craig Pennington, CFA LON Global Energy Majors, E&P, Refining

Rick de los Reyes1 BAL Metals & Mining

Ami Shah LON Europe Utilities

Jeneiv Shah, CFA LON Eastern Europe Mid-Cap Oils

Thomas Shelmerdine SYD Australia Metals & Mining

John C. A. Sherman LON Chemicals

John Williams, CFA BAL Energy

REGIONAL GENERALISTS

Ulle Adamson, CFA LON EMEA

Martin Baylac BA Latin America

José Costa Buck1 BA Latin America

Simon Cheng, CFA HKG Greater China Small-Cap

Luis Fananas LON Europe Small-Cap

Vishnu Gopal HKG Asia Ex-Japan Small-Cap

Ben Griffiths, CFA LON Europe Small-Cap

Leigh Innes, CFA1 LON EMEA Generalist

Tetsuji Inoue TOK Japan Smid-Cap

Jai Kapadia HKG India Small-Cap

Mark Lawrence, CFA LON Middle East and Africa

Oxana Lyalina LON EMEA

Francisco Sersale BA Latin America

Miki Takeyama, CMA TOK Japan Smid-Cap

Sin Dee Tan, CFA LON Europe Small-Cap

Verena Wachnitz, CFA BA Latin America

Hiroshi Watanabe, CFA TOK Japan Smid-Cap

HEAD OF EQUITY DIRECTORS OF EQUITY RESEARCH ASSOCIATE DIRECTORS OF

EQUITY RESEARCH

William J. Stromberg, CFA BAL

Kamran Baig LON EMEA and Latin America

Anna M. Dopkin, CFA BAL North America

Charles G. Pepin BAL North America

Jason B. Polun, CFA BAL North America

Kes Visuvalingam, CFA SGP Asia

Viral Patel SYD Australia

Eric C. Moffett HKG Asia

European Equity Research Resources

As of 31 March 2013

| 41 |

Equity Analysts

Responsibility Location

Joined

T. Rowe

Price

Years of

Investment

Experience

Years of

Investment with

T. Rowe Price Education

Consumer Retail Sebastian Schrott Retail and Luxury Goods London 10/2007 5 5 M.B.A., Stanford University

Jonty Starbuck, CFA Beverage, Tobacco London 8/2004 12 8 Ph.D., Bristol University

Financial Services

Fred Rizzo, CFA Banks London 11/2007 11 5 M.B.A., DePaul University

Mitchell Todd Insurance London 10/2007 12 5 M.A., University of Aberdeen

Marta Yago Real Estate London 12/2007 5 5 M.B.A., Columbia Business School

Hari Balkrishna Banks London 9/2010 5 2 M.B.A., Harvard Business School

Health Care Melissa Gallagher Pharmaceuticals London 7/2008 8 4 Ph.D., Cambridge University

John Sherman Chemicals, Defence, Medtech, Transport London 6/1999 16 13 M.B.A., Stanford University

Industrials

Heather McPherson Paper Forest Products Baltimore 8/2002 12 10 M.B.A., Duke University

Rick de los Reyes Metals and Mining Baltimore 9/2006 13 6 M.B.A., Harvard Business School

Jin Jeong, CPA Cap Goods, Auto London 10/2009 8 3 M.B.A., Harvard Business School

Craig Pennington, CFA Oil and Gas London 5/2010 18 2 M.A., Oxford University

Ami Shah Utilities London 9/2010 2 2 M.B.A., London Business School

Media/Telecom Christopher Whitehouse Media, Telecom Services London 7/2005 15 7 M.A., Oxford University

Technology Tobias Mueller Technology London 9/2011 6 1 M.B.A., University of Chicago

Small-Cap

Generalist

Ben Griffiths, CFA London 9/2006 13 6 M.A. Oxford University

Sin Dee Tan, CFA London 9/2008 4 4 M.B.A., London Business School

Luis Fananas London 9/2012 14 <1 B.Ec., University of Madrid

Emerging Markets

Generalist

Ulle Adamson, CFA London 11/2002 10 10 M.A. Sussex University

Jeniev Shah, CFA London 5/2010 4 2 B.S., University of Warwick

Within a global platform of 130 equity research professionals

Indications Of Structural Reforms

ITALY PORTUGAL

Pension system: good progress - contribution-based, life expectancy adjusted Pension system: good progress – retirement age raised

Labour market: work in progress – reforms introduced for dismissal rules,

unemployment benefits & participation; productivity proposals

Labour market: good progress – collective bargaining reduced, employment

protection reduced, productivity initiatives; benefits reduced

Product & services market: select reforms in energy, closed professions Products & services market: work in progress – efforts to increase competition

in network industries (energy, transport, post, telecoms, etc)

Business: works in progress – faster payment terms by public sector, reduction

in red tape

Business: work in progress – costs of licensing and permits eased, EU

competition law more integrated

Fiscal structures: work in progress – public spending efficiencies, tax evasion

measures, property tax

Fiscal structures: good progress – budgetary framework & forecasting

strengthened; health care reform

SPAIN IRELAND

Pension system: work in progress – retirement age adjustments Pension system: work in progress – retirement age adjustments, indexation

changes

Financial sector: good progress – consolidation of savings banks,

recapitalisation of the sector, accelerate clearing up of balance sheets

Financial sector: good progress – balance sheets cleared up via NAMA,

recapitalisation & restructuring of remaining banks, enhanced supervision

Labour market: good progress – employment protection reduced, more

flexible contracts, collective bargaining reduced, improved training

Labour market: good progress – unemployment system reformed, measures to

reduce sector-wide wage agreements

Product & services market: work in progress – improved coordination &

reduced regulations on national, cross sector basis

Product & services market: good progress – competition law strengthened,

enhanced regulation of closed professions

| 42 | Source: T. Rowe Price, Credit Suisse.

As of 31 May 2013

Important Information

This document has been issued by T. Rowe Price International Ltd, 60 Queen Victoria Street, London EC4N 4TZ, which is authorised and regulated by the UK Financial Conduct Authority (the “FCA”). This

material is not intended for use by Retail Clients, as defined by the FCA.

Issued in the Dubai International Financial Centre by TRPIL. This material is communicated on behalf of TRPIL by the TRPIL Representative Office which is regulated by the Dubai Financial Services Authority

("DFSA") as a Representative Office. This material is not intended for use by Retail Clients, as defined by the DFSA. Retail Clients should not act upon information contained within this material.

When issued in Hong Kong, this material is intended for use by professional investors only. Issued in Hong Kong by T. Rowe Price Hong Kong Limited (“TRPHK”), 21/F, Jardine House, 1 Connaught Place,

Central, Hong Kong, a Hong Kong limited company regulated by the Securities & Futures Commission. This material is intended for use by professional investors only and may not be redistributed without the

prior approval of TRPHK.

Representative in Switzerland is First Independent Fund Services Ltd, Klausstrasse 33, CH-8008 Zurich. Paying Agent in Switzerland is JPMorgan Chase Bank National Association, Columbus, Zurich Branch,

Dreikönigstrasse 21, CH-8002 Zurich.

Copies of the Articles, the prospectus, the Key Investor Information Documents (KIIDs) and the annual and semi-annual reports of the Company may be obtained free of charge from the Representative.

The European Equity Fund and European Smaller Companies Fund are sub-funds of the T. Rowe Price Funds SICAV, a Luxembourg domiciled société d’investissement à capitale variable (SICAV) which

qualifies as an undertaking for collective investment in transferable securities (UCITS). Applications for shares of the funds can only be made on the basis of the current prospectus of the T. Rowe Price Funds

SICAV together with the latest audited annual report (and, if published, subsequent semi-annual report). Please read the prospectus carefully prior to investing. It is the responsibility of any persons in possession

of this document and any persons wishing to make applications for shares pursuant to the prospectus to inform themselves of, and to observe, all applicable laws and regulations of any relevant jurisdictions. In

certain jurisdictions, shares may not be available, publicly and/or otherwise, for purchase and the distribution of this document may be restricted.

The T. Rowe Price Funds SICAV is currently registered for distribution only in Austria, Denmark, Estonia, Finland, Germany, Ireland, Italy (Institutional only), Latvia, Lithuania, Luxembourg, the Netherlands,

Norway, Spain, Sweden, Switzerland, and the United Kingdom.

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(05/2013)

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the european equity landscape identifying the opportunities

Economy & Finance