State Street Corporation · NYSE:STT
State Street — Barclays Global Financial Services Conference 2014
28 slides from State Street's conference presentation, Sep 9, 2014
Slide 1: The Way Ahead: Creating Long-Term Shareholder Value
The Way Ahead: Creating Long-Term Shareholder Value Joseph L. Hooley Chairman, President and Chief Executive Officer Michael W. Bell Executive Vice President and Chief Financial Officer Barclays Global Financial Services Conference September 9, 2014
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
3 Agenda Our Company Focused Strategy Financial Performance Summary The Way Ahead
Slide 4: Our Company
Our Company Ef) STATE STREET.
Slide 5: Our Company: A Leading Provider of Financial Services to Institutional Investors
5 Our Company A Leading Provider of Financial Services to Institutional Investors 1As of June 30, 2014.. Developing Client Focused Solutions Through Continuous Innovation Operating globally in more than 100 geographic markets $28.4 trillion of assets under custody and administration (AUC/A)1 $2.5 tr
Slide 6: Focused Strategy
Focused Strategy Es) STATE STREET.
Slide 7: Focused Strategy: Long-Term Shareholder Value
7 1Goals presented on an operating basis, a non-GAAP presentation. Refer to Appendix included with this presentation for explanations of our non-GAAP measures. The Appendix is available on State Street’s website (www.statestreet.com/stockholder) and in State Street’s current report on Form 8-K filed
Slide 8: Focused Strategy – Supported by Strong Growth Drivers
8 Focused Strategy – Supported by Strong Growth Drivers Well-Positioned to Gain Momentum as These Drivers Create Opportunities Globalization Retirement Savings Regulation & Complexity
Slide 9: Focused Strategy – Building on our Strong Core
9 All data as of, or for the quarter ended, June 30, 2014, as appropriate. Focused Strategy – Building on our Strong Core Transitioning to a more integrated sales approach by sector Capturing full value of client relationships Developing innovative new products and services Leveraging technology lea
Slide 10: Focused Strategy – More Than 30 Years of Success in Asia-Pacific
10 All data as of June 30, 2014. 1 In some markets, State Street has multiple operations centers and/or client management offices. 2 Refers to Investment Trust Management funds (a.k.a., the collective funds) in Japan. 3 Source: McKinsey (September 2012). Focused Strategy – We Have More Than 30 Years
Slide 11: Focused Strategy – Strong Industry Leadership Positions for Future Growth
11 US MUTUAL FUNDS1 MIDDLE OFFICE2 US PENSION FUNDS3 Sources: 1 Mutual Funds - State Street Global Business Reporting, Investment Company Institute, June 2014. 2 Middle Office - State Street December 2013, Scrip Issue Global Report, outsourced market only. 3 Pension Fund – State Street Global Busine
Slide 12: Focused Strategy – An Early Mover in Alternatives
12 Focused Strategy – An Early Mover in Alternatives ALTERNATIVE INVESTMENTS MARKET1 STATE STREET ALTERNATIVE INVESTMENT SOLUTIONS2 AUA ($T) ($T) Our Asset Growth at More Than Twice the Rate of the Market 2Q14 8.0 2013 7.7 2012 7.2 2011 6.4 2010 5.9 2009 5.0 2008 4.5 2007 4.8 2006 3.6 2005 2.7 Real
Slide 13: Focused Strategy – An Early Mover in Alternatives
13 Focused Strategy – An Early Mover in Alternatives • Single global front-to-back office platform • Integration of GSAS largely complete; expansion of strong client base and retention of key talent • Established presence in Shanghai; servicing Qualified Domestic Limited Partnerships (QDLPs) • Cross
Slide 14: Focused Strategy – Business Operations and Information Technology
14 Focused Strategy – Business Operations and Information Technology Achieving a Digital Enterprise Process Automation and Standardization Workforce Optimization: Centers of Excellence Leveraging Lower-Cost Locations Integrating Private Cloud Infrastructure Digital Enterprise • Speed and Agility • D
Slide 15: Business Operations and IT Transformation Program Delivering Expected Benefits
15 1The full run-rate effect of the pre-tax expense savings is not expected to be achieved until 2015. Estimated pre-tax expense savings relate only to the Business Operations and Information Technology Transformation program and are based on projected improvement from our total 2010 operating-basis
Slide 16: Investment management fees and AUM
16 All data as of, or for the six months ended, June 30, 2014, unless otherwise noted. 1This AUM includes the assets of SPDR® Gold ETF (approx. $33B as of June 30, 2014), for which State Street Global Markets, LLC, an affiliate of SSgA, serves as the distribution agent. 2 Includes real estate invest
Slide 17: Continuing to Invest in More Innovative and Higher Yielding Products
17 1 Source: BlackRock ETP Landscape, January 2014. Focused Strategy – Continuing to Invest in More Innovative and Higher Yielding Products On Track to Double the Size of U.S. Retail Intermediary Marketing and Distribution Team in 2014 OUR STRATEGY IS FOCUSED TO GROW REVENUE YIELD GLOBAL MARKET SIZE
Slide 18: Established Global Exchange to Meet Emerging Client Needs
18 Focused Strategy - Established Global Exchange to Meet Emerging Client Needs Delivering Solutions to Manage & Integrate Data, Optimize Investment & Trading Strategies and Strengthen Insights, Reporting & Analytics Big Data Electronification of Trading Information & Insights Investment Analytics S
Slide 19: Focused Strategy – Optimizing Capital
19 Focused Strategy – Optimizing Capital INVESTING IN GROWTH RETURNING CAPITAL TO SHAREHOLDERS ● Focus on strategic initiatives – Expanding geographies – New product creation – Advanced technologies ● Optimize capital structure in light of new and emerging rules ● Prioritize return to shareholders t
Slide 20: Financial Performance
Financial Performance Et) STATE STREET.
Slide 21: Financial Performance Highlights
21 1 Results presented on an operating basis, a non-GAAP presentation. Refer to Appendix included with this presentation for explanations of our non-GAAP measures and for reconciliations of our operating-basis financial information. The Appendix is available on State Street’s website (www.statestree
Slide 22: 2014 Outlook
22 ● Despite continued headwinds, our outlook for 2014 is positive: – 3-5% operating-basis1 revenue growth compared to 2013 – Expect to continue return of capital through quarterly common stock dividends and common stock repurchases ● On track to deliver approximately $130 million of incremental pre
Slide 23: Summary
Summary Ef) STATE STREET.
Slide 24: Focused Strategy: Long-Term Shareholder Value
24 1Goals presented on an operating basis, a non-GAAP presentation. Refer to Appendix included with this presentation for explanations of our non-GAAP measures. The Appendix is available on State Street’s website (www.statestreet.com/stockholder) and in State Street’s current report on Form 8-K file
Slide 25: Q&A
Q&A Et) STATE STREET.
Slide 26: Appendix
Appendix STATE STREET. 26
Slide 27: Non-GAAP Measures Explanation
27 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 from peri
Slide 28: Appendix: Reconciliation of Non-GAAP Measures
28 Appendix: Reconciliation of Non-GAAP Measures % Change 2014 vs. (Dollars in millions) 2013 Total Revenue: Total revenue, GAAP basis $ 5,083 $ 4,995 1.8 % Tax-equivalent adjustment associated with tax-advantaged investments 121 68 Tax-equivalent adjustment associated with tax-exempt investment sec
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