State Street Corporation · NYSE:STT
State Street — Shareholder Meeting (May 2015)
23 slides from State Street's shareholder meeting presentation, May 20, 2015
Slide 1: Leadership Through Continuous Innovation
Leadership Through Continuous Innovation 2015 Annual Meeting of Shareholders Wednesday, May 20, 2015 1
Slide 2: Forward-looking statements
Forward-looking statements This presentation contains forward-looking statements as defined by United States securities laws, including statements relating to our goals and expectations regarding our business, financial and capital condition, results of operations, investment portfolio performance a
Slide 3: Agenda
Agenda Financial Results Leadership Through Continuous Innovation Summary 3
Slide 4: Financial Results 2014 & 1Q15
Financial Results 2014 & 1Q15 4
Slide 5: Delivered solid growth in 2014
Delivered solid growth in 2014 2014 Operating-Basis1 Results 2014 Operating- • Earnings per share (EPS) growth driven by strong fee revenue growth and continued Basis1 Highlights: execution of our common stock repurchase program: – Total fee revenue of $8.32B increased 7.4% Revenue 5.9% – Core ser
Slide 6: Progress in 1Q15 on key priorities
Progress in 1Q15 on key priorities: Growing revenue, managing expenses and returning capital to shareholders Operating-Basis1 Results 1Q15 Operating- • EPS growth driven by strong fee revenue growth and continued execution of our Basis1 Highlights: common stock repurchase program: – Total fee revenu
Slide 7: Leadership Through Continuous Innovation
Leadership Through Continuous Innovation 7
Slide 8: A leading global provider of financial services
A leading global provider of financial services Focus: Asset servicing and asset management Europe, Middle Global: Americas: East & Africa: Asia Pacific: Revenue: $10.3B AUA: $28.2T Revenue: $5,945M Revenue: $3,472M Revenue: $878M AUM: $2.45T AUA: $21.22T AUA: $5.63T AUA: $1.34T AUM: $1,568B AUM: $5
Slide 9: Our history reflects our culture of innovation
Our history reflects our culture of innovation Innovation in businesses, products and services: Focus for future growth SPDR ETF Global Location Strategy, Enhanced StreetFX Custody, ETF Servicing Multicurrency Horizon Platform Middle Office ITOT Fund Outsourcing FX Connect Total ETF Admin. Business
Slide 10: Focused strategy supports long-term financial goals
Focused strategy supports long-term financial goals LONG-TERM SHAREHOLDER VALUE Operating-Basis1 Financial Goals: Revenue Growth of 8%-12%, EPS Growth of 10%-15% and ROE of 12%-15% BUILDING ON OUR ACHIEVING A INVESTING IN OPTIMIZING STRONG CORE DIGITAL ENTERPRISE OPPORTUNITIES CAPITAL FOR GROWTH Ali
Slide 11: Building on our strong core
Building on our strong core Total Core Asset Servicing and Asset Management Fee Revenue ($M) • Strong asset servicing and asset management fee growth: − CAGR of 9.1% from 2009 to 2014 and 6.9% from CAGR 6,336 2013 to 2014 9.1% 5,925 • In 2014, won $1.1T in new asset servicing commitments and $28B in
Slide 12: Achieving a digital enterprise
Achieving a digital enterprise Process Automation and Standardization Business Operations Digital and Information Workforce Optimization: Enterprise Centers of Excellence Technology Transformation initiatives have driven Leveraging Lower- • Further operational efficiencies wholesale change Cost Loca
Slide 13: Investing in opportunities for growth
Investing in opportunities for growth • Globalizing alternative investment servicing capabilities • Developed market leading ETF servicing platform • Established Global Exchange: – Investable models – Risk management platform – Liquidity stress testing • Investing in Enhanced Custody • Investing in
Slide 14: Optimizing capital
Optimizing capital • Investing for the future • Optimizing capital structure in light of new and emerging rules • Prioritizing return to shareholders through common stock repurchases and dividends • Targeting common stock dividends to be 20%-25% of operating-basis1 income 1 Target presented on an op
Slide 15: Talent and culture are core to State Street
Talent and culture are core to State Street We are positively impacting our communities • Our Foundation invested US$18.8M in 2014 in 32 communities in which we operate, with a focus on education and workforce development • A record of over 106,000 hours of service were contributed to community orga
Slide 16: Summary
Summary 16 STATE STREET.
Slide 17: We're recognized for our leadership positions in the industry
We’re recognized for our leadership positions in the industry … No. 1 Global Custodian Best Securities Financing Best ETF Service Provider in (Weighted rankings) House in Asia Pacific Asia Pacific and Europe Global Investor Asia Asset Management exchangetradedfunds.com 2014 Global Custody Survey 201
Slide 18: ... and delivering shareholder value
… and delivering shareholder value 5 Year Total Shareholder Return 1/1/2010 – 12/31/2014 120% 100% 94% State Street Corp 87% S&P Financials 80% 60% 59% Bank of New York 40% 44% Northern Trust Corp 20% 0% -20% Ba nk of New York Mel l on Corpora tion Northern Trus t Corpora tion -40% S&P 500 / Fi na n
Slide 19: Appendix
Appendix The foregoing presentation includes financial information presented on a GAAP basis as well as on a non-GAAP, or “operating basis.” Management measures and compares certain financial information on an operating basis, as it believes that this presentation supports meaningful comparisons fro
Slide 20: Appendix: Footnotes to slide 8
Appendix: Footnotes to slide 8 2 #1 Mutual Fund Accounting, Mutual Fund Service Guide, 2014 3 #1 Offshore Fund Servicing, Monterey Insight, Ireland Fund Report, 2014 4 #1 Global Alternative Asset Servicing, Evestment Administrator Survey, June 2014 5 #1 Securities Finance, Global Investor Magazine S
Slide 21: Reconciliations of Operating-Basis (Non-GAAP) Financial Information
STATE STREET CORPORATION RECONCILIATIONS OF OPERATING-BASIS (NON-GAAP) FINANCIAL INFORMATION In addition to presenting State Street’s financial results in conformity with U.S. generally accepted accounting principles, referred to as GAAP, management also presents results on a non-GAAP, or "operating
Slide 22: Reconciliations of Operating-Basis (Non-GAAP) Financial Information
STATE STREET CORPORATION RECONCILIATIONS OF OPERATING-BASIS (NON-GAAP) FINANCIAL INFORMATION In addition to presenting State Street’s financial results in conformity with U.S. generally accepted accounting principles, referred to as GAAP, management also presents results on a non-GAAP, or "operating
Slide 23: Reconciliations of Operating-Basis (Non-GAAP) Financial Information
STATE STREET CORPORATION RECONCILIATIONS OF OPERATING-BASIS (NON-GAAP) FINANCIAL INFORMATION In addition to presenting State Street’s financial results in conformity with U.S. generally accepted accounting principles, referred to as GAAP, management also presents results on a non-GAAP, or "operating