State Street Corporation · NYSE:STT
State Street — Investor Day (November 2004)
15 slides from State Street's investor day presentation, Nov 2, 2004
Slide 1: Building On Our Strengths
TATE STREE re) ING =
Slide 2: Chief Executive Officer
= CHIEF EXECUTIVE OFFICER
Slide 3: Link to searchable text of slide shown above
Link to searchable text of slide shown above
Slide 4: Agenda
AGENDA Who We Are and What Are Our Goals Ron Logue Financial Update and Outlook Ed Resch Strategies For Growth Jay Hooley Q&A
Slide 5: Who We Are
WHO WE ARE > Our Annual Financial Goals A Consistent Earner Operating EPS growth of 10%-15% A Top-line Revenue Generator Operating revenue growth of 8%-12% A Prudent Allocator of Capital Operating ROE of 14%-17% STATE STREET.
Slide 6: How Will We Reach These Goals?
HOW WILL WE REACH THESE GOALS ? Generate positive operating leverage Deliver a consistent high level of service Sell on value, not price Bring product to market faster than others Actively manage the balance sheet Target 50% of revenue from outside of the U.S. STATE STREET.
Slide 7: Achieving Our Goals: Operating EPS Growth Model
ACHIEVING OUR GOALS > Operating EPS Growth Model Impact on operating EPS growth: Operating revenue growth 8%-12% + Positive operating leverage + Capital management ~1% = Diluted EPS growth 10%-15% Operating results as defined in State Street Corporation SEC flings. STATE STREET.
Slide 8: Achieving Our Goals: Operating Revenue Growth Model
ACHIEVING OUR GOALS > Operating Revenue Growth Model Market growth* 1%-2% New customers 2%-3% Additional sales to existing customers 4%-5% Acquisitions and large customer deals 1%-2% “Asoumes 7% average annual growth in global equities. STATE STREET.
Slide 9: Achieving Our Goals: Operating ROE 14%-17%
ACHIEVING OUR GOALS > Operating ROE: 14%-17% + Improve earnings growth « Support a consistent dividend program « Repurchase shares * Maintain credit rating « Meet regulatory requirements, including Basel II STATE STREET.
Slide 10: Revenue Generation Leads to Operating EPS Growth
REVENUE GENERATION LEADS TO OPERATING EPS GROWTH 1990-2000 2000-2003 (10-year CAGR) (3-year CAGR) Growth of Assets Under Custody 21.9% 15.3% Growth of Assets Under Management 26.9% 15.9% Growth of S&P in Market Capitalization 18.3% (4.3)% Operating Revenue* 15.9%" 8.4% S&P 500 Operating Revenue 5.7%
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Slide 12: State Street Operating Strengths
STATE STREET OPERATING STRENGTHS > Long-standing « High value placed on revenue generation « Innovative culture + Commitment to our business « Strong global franchise > New * More disciplined expense management « More focused strategy for allocating resources STATE STREET.
Slide 13: Growing in a Slow Growth Environment
GROWING IN A SLOW GROWTH ENVIRONMENT 3-year CAGR 8.4% Revenues from $3.48 (2000) to $4.4B (2003) 2000 2003 20% 7% a i isFees 0 Management Fees I Sec Lending FX BH Brokerage 6% I Proc & Other 11% NR 9% All data reflects operating revenues as defined in State Street Corporation's SEC flings. STATE STR
Slide 14: Total Revenue Growth
TOTAL REVENUE GROWTH > U.S. and Non-U.S. Millions 2000-2004: 4-year CAGR Total Corporation: 9.5% $6,000 = NomU.S. eases $5,000 US. Non-U.S.: 16.8% $4,000 ver es soono| fo $2,000 $1,000 $0 2000 2001 2002 2003 2004* Operating results as defined in State Street Corporation SEC flings. 2004 annualized 9
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Searchable text section of graphics shown above STA TE STREET INVESTOR AND ANALYST MEETING NOVEMBER 2, 2004 [LOGO] DEL IVERING PROFITABLE GROWTH RONALD E. LOGUE CHAIRMAN AND CHIEF EXECUTIVE OFFICER REM INDER This presentation includes discussion of State Street Corporation’s financial and business g