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: 2015 Annual Meeting of Shareholders
1 Leadership Through Continuous Innovation 2015 Annual Meeting of Shareholders Wednesday, May 20, 2015 Exhibit 99.1
Slide 2: Forward-looking statements
2 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
Slide 3: Agenda
Agenda Financial Results Leadership Through Continuous Innovation Summary 3
Slide 4: Financial Results 2014 & 1Q15
4 Financial Results 2014 & 1Q15
Slide 5: Delivered solid growth in 2014
5 Delivered solid growth in 2014 • Earnings per share (EPS) growth driven by strong fee revenue growth and continued execution of our common stock repurchase program: – Total fee revenue of $8.32B increased 7.4% – Core servicing and management fees of $6.34B increased 6.9% – Asset servicing commitme
Slide 6: Progress in 1Q15 on key priorities
6 Progress in 1Q15 on key priorities: Growing revenue, managing expenses and returning capital to shareholders • EPS growth driven by strong fee revenue growth and continued execution of our common stock repurchase program: – Total fee revenue increased 7% from 1Q14 – Strength in foreign exchange tr
Slide 7: Leadership Through Continuous Innovation
7 Leadership Through Continuous Innovation
Slide 8: A leading global provider of financial services
8 A leading global provider of financial services Focus: Asset servicing and asset management All data as of or for the year-end December 31, 2014, as applicable. AUA: assets under custody and administration; AUM: assets under management. 1 Please see Appendix for footnotes 2-9. This Appendix is ava
Slide 9: Our history reflects our culture of innovation
9 Our history reflects our culture of innovation Innovation in businesses, products and services: Focus for future growth Acquisitions: Laid foundation for growth Multicurrency Horizon Platform SPDR ETF ETF Servicing Fund Admin. Business FX Connect Middle Office Outsourcing LDI Strategies IFS Deutsc
Slide 10: Focused strategy supports long-term financial goals
10 Focused strategy supports long-term financial goals LONG-TERM SHAREHOLDER VALUE BUILDING ON OUR STRONG CORE ACHIEVING A DIGITAL ENTERPRISE INVESTING IN OPPORTUNITIES FOR GROWTH OPTIMIZING CAPITAL Aligning solutions with client needs, continuing to innovate, capturing value and improving efficienc
Slide 11: Building on our strong core
11 Building on our strong core 6,336 5,925 5,407 5,299 4,767 4,100 2009 2010 CAGR 9.1% 2014 2013 2012 2011 Total Core Asset Servicing and Asset Management Fee Revenue ($M) • Strong asset servicing and asset management fee growth: − CAGR of 9.1% from 2009 to 2014 and 6.9% from 2013 to 2014 • In 2014,
Slide 12: Achieving a digital enterprise
12 Achieving a digital enterprise • Further operational efficiencies • Systems resiliency and scalability • Lower unit cost • Enhanced data flexibility • Continued cloud migration • Faster speed to market Business Operations and Information Technology Transformation initiatives have driven wholesale
Slide 13: Investing in opportunities for growth
13 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
Slide 14: Optimizing capital
14 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
Slide 15: Talent and culture are core to State Street
15 Talent and culture are core to State Street • 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 organizations in 2014, an increase of 18% ove
Slide 16: Summary
Summary 16 STATE STREET.
Slide 17: We're recognized for our leadership positions in the industry
17 We’re recognized for our leadership positions in the industry … No. 1 Global Custodian (Weighted rankings) Global Investor 2014 Global Custody Survey Best Securities Financing House in Asia Pacific Asia Asset Management 2014 Best of the Best Awards Best ETF Service Provider in Asia Pacific and Eu
Slide 18: … and delivering shareholder value
18 … and delivering shareholder value 5 Year Total Shareholder Return 1/1/2010 – 12/31/2014 '10 '11 '12 '13 '14 -60% -40% -20% 0% 20% 40% 60% 80% 100% 120% Source: FactSet Prices Bank of New York Mel lon Corporation Northern Trust Corporation S&P 500 / Financia ls - SEC State Street Corporation94% S
Slide 19: Appendix
19 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
Slide 20: Appendix: Footnotes to slide #1
20 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 Magazin
Slide 21: Non-GAAP reconciliation: 2014 vs. 2013 revenue and expenses
21 2014 vs. (Dollars in millions) 2013 Total Revenue: Total revenue, GAAP basis $ 10,295 $ 9,884 4.2 % Tax-equivalent adjustment associated with tax-advantaged investments 288 158 Tax-equivalent adjustment associated with tax-exempt investment securities 173 142 Discount accretion related to former
Slide 22: Non-GAAP reconciliation: income, margin and EPS
22 2014 vs. (Dollars in millions, except per share amounts) 2013 Income Before Income Tax Expense: Income before income tax expense, GAAP basis $ 2,458 $ 2,686 (8.5) % Net pre-tax effect of non-operating adjustments to revenue and expenses 746 343 Income before income tax expense, operating basis $
Slide 23: Non-GAAP reconciliation: Q1 2015 vs. Q1 2014
23 Q1 2015 vs. (Dollars in millions) Q1 2014 Total Revenue: Total revenue, GAAP basis $ 2,605 $ 2,485 4.8 % Tax-equivalent adjustment associated with tax-advantaged investments 53 57 Tax-equivalent adjustment associated with tax-exempt investment securities 44 44 Discount accretion related to former