State Street Corporation · NYSE:STT
State Street — Shareholder Meeting (May 2011)
29 slides from State Street's shareholder meeting presentation, May 18, 2011
Slide 1: Annual Meeting of Shareholders
18 May 2011 Exhibit 99.1 Annual Meeting of Shareholders
Slide 2: Building from Strength
Joseph L. Hooley Chairman, President and Chief Executive Officer Building from Strength
Slide 3: Reminder: forward-looking statements
3 Reminder This presentation contains “forward-looking statements” within the meaning of U.S. securities laws, including statements about industry trends, management’s expectations about our financial performance, market growth, acquisitions and divestitures, new technologies, services and opportuni
Slide 4: Agenda
4 Building from Strength 2010: A Year of Transition Strategic Direction Investing in Communities and Corporate Social Responsibility 2011: Progress Agenda
Slide 5: 2010: A Year of Transition
5 2010: A Year of Transition
Slide 6: 2010: A Year of Transition
6 Building from Strength Repositioned investment portfolio to lay the foundation to restore the dividend and prepare for Basel III ahead of implementation dates 90% of investment portfolio assets rated AAA / AA* Reached settlement with SEC on fixed-income issues Implemented solution to provide clien
Slide 7: Capital Ratios Exceed Regulatory Well Capitalized Requirements
7 Building from Strength State Street Corporation “Well Capitalized” 1 3/31/11 12/31/10 12/31/09 Tier 1 Leverage 5.0% 2 8.7% 8.2% 8.5% Tier 1 Capital 6.0% 19.6% 20.5% 17.7% Tier 1 Common Ratio 3 ---- 17.5% 18.1% 15.6% Total Capital 10.0% 21.6% 22.0% 19.1% Tangible Common Equity 4 ---- 7.4% 7.6% 6.6%
Slide 8: Deepened Client Relationships
8 Building from Strength Growing Momentum in Core Businesses 2000 2010 Top 100 clients 11.4 products 13.2 products Top 1,000 clients 7.1 products 7.9 products Expanded Relationships New Clients Babson Capital Management Charles Schwab Legg Mason Global Asset Management Martin Currie Norges Bank Guot
Slide 9: State Street
STATE STREET.
Slide 10: Expanded Market Share
10 State Street is now: – Leading asset servicer in Italy – No. 2 asset servicer of offshore funds in Luxembourg and Ireland 1 Goal to retain 90% of revenue of ~€293M Additional cross-sell opportunities State Street is now No. 1 in Alternative Asset Servicing globally 2 : – Hedge funds – Private equ
Slide 11: Initiated Ops and IT Transformation Program
11 Building from Strength Market expansion Mergers and acquisitions Geographic expansion Business process excellence Flexible global workforce Global shared services New product development Technology leadership Global solutions Service excellence Time to market New products and services Expect to S
Slide 12: 2010: A Year of Transition
12 Building from Strength $ in millions 12/31/10 1 12/31/09 1 % Change Operating-basis revenue $8,714 $8,138 +7.1% Operating-basis expenses $6,176 $5,667 + 9.0% Operating-basis EPS $3.40 $3.32 +2.4% Operating-basis ROE 10.4% 12.6% -220 bps FOR THE TWELVE MONTHS ENDED Responded effectively to the glo
Slide 13: Strategic Direction
13 Strategic Direction
Slide 14: Secular Trends Support Growth
14 Building from Strength Asset managers increasingly invest beyond their borders Asset management industry globalizing product and distribution strategies Driven by demographics, especially in Europe and Asia Evolution of retirement / savings schemes Growing global trend driven by complexity, cost
Slide 15: Strategic Direction – Globalization
15 Year ended 12/31/00 2 Year ended 12/31/10 % Change Operating-basis revenue $3.45B $8.71B +152% Operating-basis non-US revenue $0.94B $3.18B +238% Employees 3 17,281 28,670 +66% Non-US employees 3 3,463 12,518 +261% Building from Strength 1 Financial data presented on an operating-basis (which is
Slide 16: Strategic Direction – Retirement Savings
16 Building from Strength Non-US Retirement Growth US Retirement Growth $13.6T $16.6T $12.8T $15.6T $20.1T $6.6T $8.1T $7.0T $8.1T $11.3T Almost 50% of expected retirement asset growth (2008 – 2014) will come from Europe Global Retirement Assets are Expected to Grow 32% ($7.7 Trillion) from 2010 thr
Slide 17: Strategic Direction – Outsourcing
17 Building from Strength Leading provider with more than $7 trillion of AUA Market sized at approximately $53 trillion 1 Second largest servicer in the world 2 with about $470 billion 3 of AUA in hedge fund assets Market sized at $1.7 trillion 4 and growing at an estimated 19% CAGR through 2013 5 C
Slide 18: Source: Company reports, Global Custody.net, Institutional Investor Global Custodian Survey. * Data for BNY,
18 Source: Company reports, Global Custody.net, Institutional Investor Global Custodian Survey. * Data for BNY, State Street, & CACEIS reflect AUA as of 12/31/2010; as of 9/30/10 for, BNP Paribas, Societe Generale, & Brown Brothers; as of 6/30/10 for RBC Dexia & HSBC ; all others reflect AUC data: J
Slide 19: Investing in Communities and Corporate Social Responsibility
19 Investing in Communities and Corporate Social Responsibility
Slide 20: Provided Grants Worldwide
Building from Strength Provided 619 Grants Worldwide 20 Investing in Communities and Corporate Social Responsibility
Slide 21: Volunteerism
21 Building from Strength Volunteerism Environmental cleanups Food sorting and service Distance and web-based volunteerism Youth Mentoring Support Pledge-a-thons Boys & Girls Club of Boston Boston Partners in Education Boston Symphony Orchestra Earthwatch Institute Women’s Lunch Place Oxfam Hong Kon
Slide 22: Corporate Responsibility Practices
22 Building from Strength Organization Ranking Newsweek Magazine: Greenest US Companies No. 35 of Top 500 Carbon Disclosure Project First time on S&P 500 Business Leadership Index Dow Jones Sustainability World and North America Indices One of only three U.S. financial services companies listed on b
Slide 23: 2011: Progress
23 2011: Progress
Slide 24: 2011: Progress – Recent Update
24 Building from Strength CAPITAL DEPLOYMENT Announced increase in quarterly dividend to $0.18 per share at a 20% payout ratio Board approved up to $675M in share purchase program for 2011 Fund organic growth Continue to evaluate accretive acquisition opportunities to expand our global footprint, ac
Slide 25: 2011: Progress – Recent Update
25 Building from Strength $ in millions, except per share data Q1 2011 1 Q1 2010 1 Change Operating-basis revenue $2,330 $2,116 +10.1% Operating-basis expenses $1,683 $1,566 +7.5% Operating-basis EPS $0.88 $0.75 +17.3% Operating-basis ROE 9.9% 10.0% -10 bps Positive operating leverage 2 260 bps Q1 2
Slide 26: Strong Annual Share Performance
26 Building from Strength STT +15% S & P Fin. +8% BK 0% NTRS -7% Bank of New York Mellon Corp. Northern Trust Corp. S&P 500 / Financials State Street Corp. Strong Annual Share Performance
Slide 27: Summary: Delivering Long-Term Shareholder Value
27 Building from Strength Successfully Transitioned Through Crisis in 2010 Well-Positioned Against Secular Growth Trends Financial and Capital Strength Executing our Strategic Plan Delivering Long-Term Shareholder Value Summary
Slide 28: STATE STREET,
STATE STREET, ma) STATE STREET
Slide 29: STATE STREET.
STATE STREET. ma) STATE STREEL