State Street Corporation · NYSE:STT
State Street — Citi's 2020 Financial Technology Conference
13 slides from State Street's conference presentation, Nov 18, 2020
Slide 1: Citi's 2020 Financial Technology Conference
November 18, 2020 Citi’s 2020 Financial Technology Conference Lou Maiuri Chief Operating Officer 1
Slide 2: Preface and forward-looking statements
Preface and forward-looking statements This presentation contains forward-looking statements as defined by United States securities laws. These statements are not guarantees of future performance, are inherently uncertain, are based on assumptions that are difficult to predict and have a number of r
Slide 3: The State Street Alpha front-to-back roadmap
The State Street Alpha front-to-back roadmap SM CRD and Alpha: An evolving business model driving core growth across State Street 2018-2020 achievements 2021-2022 roadmap Acquired Charles River Development (CRD) in the Accelerate SaaS conversion rate, resulting in more beginning of 4Q18 predictable
Slide 4: CRD performance
CRD performance Quarterly performanceA Yearly performanceA +16% +8% +11-12% -32% $401M $145M $372M $126M 137 63 $100M $99M 178 57 65-70% of $85M expected total On-premises 28 20 71 B 20 revenue, (on-prem) 26 22 reflecting mix Professional 19 56 17 19 shift towards services 20% software- YoY 52% 193
Slide 5: Measuring CRD's performance
Measuring CRD’s performance Growth and durability of the CRD franchise demonstrated through key performance metrics Annual recurring revenue (ARR)A Uninstalled revenue backlogB +14% +11% CAGR Growth ARR is the annualized amount of $213M Uninstalled revenue to be $82M $92M most software-enabled reven
Slide 6: State Street's differentiated business model
State Street’s differentiated business model The Alpha front-to-back platform will be the next enablement for State Street growth STATE STREET CORE SERVICES Investment Decision Trading and Middle-Office Back-Office Making Compliance Services Services A leading front-to-back investment management Fro
Slide 7: The State Street Alpha front-to-back proposition
The State Street Alpha front-to-back proposition Illustrative case study: Targeted annual technology and operations savings of ~10-15% for clients over timeA Alpha platform expected to lower clients’ operational expenses… Adopting the Alpha platform positions clients to deliver operational solutions
Slide 8: Driving State Street revenue through Alpha
Driving State Street revenue through Alpha Illustrative case studies: Deepening client relationships to drive core revenue growthA Global Asset Manager #1 Global Asset Manager #2 Global Asset Owner Official Institution Alpha Global transformation Unified global model Consolidated platform Front-to-b
Slide 9: Summary
Summary CRD and Alpha are critical enablers of State Street’s strategy and core revenue growth plan • Expect low double-digit average CRD revenue growth over the 2021-2022 roadmap time periodB CRD – Software-enabled revenue to grow ~20% revenueA – Continue to grow CRD wealth management sales from pr
Slide 10: Fireside Chat Q&A
Fireside Chat Q&A Lou Maiuri Eric Aboaf Keith Horowitz 10
Slide 11: Appendix
A ppendix STAT T E STREET | 11
Slide 12: Endnotes and Definitions
Endnotes and Definitions Endnotes 1. Quarterly and yearly CRD financial results presented on a standalone basis. Revenue line items may not sum to total due to rounding. CRD revenue in 3Q19, 4Q19, 1Q20, 2Q20, and 3Q20 included revenue associated with affiliates, including SSGA, of $4M, $5M, $5M, $7M
Slide 13: Forward-looking statements
Forward-looking statements This presentation (and the conference to which it relates) contains forward-looking statements within the meaning of United States securities laws, including statements about our goals and expectations regarding our business, financial and capital condition, results of ope
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