State Street Corporation · NYSE:STT
State Street — Credit Suisse 21st Annual Financial Services Forum (February 2020)
14 slides from State Street's conference presentation, Feb 27, 2020
Slide 1: Credit Suisse 21st Annual Financial Services Forum
February 27, 2020 Credit Suisse 21st Annual Financial Services Forum 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: State Street Operations & Technology
State Street Operations & Technology Driving productivity gains and enhanced client service via technology automation and operational efficiency Operations & Technology (O&T) highlights Operations: Delivering client solutions across 26 countries and more than 100 markets worldwide with a focus on se
Slide 4: Improving our cost base
Improving our cost base Advancing our strategic priorities and supporting our vision A Expenses ex-notables ($B) 2019 actions & 2020 focus areas ~(1)% $8.6 $8.7 ~$8.6 Information Technology (IT) $8.0 • Reassessment of technology cost structure +10% 2.0 +11% 2.3 0-(2)% ~2.2-2.3 IT 1.8 completed late-
Slide 5: Operations & Technology 2019 scorecard
Operations & Technology 2019 scorecard Realized targeted goals and outcomes through technological, organizational, client and process simplification Actions and outcomes Other 2019 milestones Infrastructure Technological simplification: Rationalized 14% of Moved 88% of funds to new standard optimiza
Slide 6: Technology 2020 focus areas
Technology Technology 2020 focus areas Operations Simplification plan for expected gross savings of $150–200M A 2020 KPIs Infrastructure optimization Implement cloud strategy to deliver enhanced security and enable faster Continue to migrate and have 30-35% of total time-to-market for client solutio
Slide 7: Operations 2020 focus areas
Technology Operations 2020 focus areas Operations Operations-led, technology-enabled simplification plan for expected gross savings of $125–150M A 2020 KPIs Increased service quality Improve client experience and delivery across key clients and Improve client satisfaction evidenced by higher segment
Slide 8: Fireside Chat Q&A
Fireside Chat Q&A Lou Maiuri Eric Aboaf Susan Katzke 8
Slide 9: Appendix
Appendix STATE STREET |9
Slide 10: Technology 2020E costs walk-forward
Technology Technology 2020E costs walk-forward Operations Bending the cost curve from +10% to a flat-to-down 2% net reduction Estimated total Technology spend (Non-GAAP, $B) A Flat to (2)% +10% ~$150M ~$250M $2.3 ~$2.2-2.3 ~$(30)M $2.0 ~$(150-200)M 2018A Incremental Technology 2019A Incremental Tech
Slide 11: Operations 2020E costs walk-forward
Technology Operations 2020E costs walk-forward Operations Continuing to invest in speed and quality of our delivery while improving productivity Estimated total Operations spend A (Non-GAAP, $B) (7)% ~$100M $2.2 (2-4)% ~$75M $2.0 ~$1.9-2.0 ~$(250)M ~$(125-150)M 2018A Incremental Optimization 2019A I
Slide 12: Non-GAAP measures
Non-GAAP measures In addition to presenting State Street's financial results in conformity with U.S. generally accepted accounting principles, or GAAP, management also presents certain financial information on a basis that excludes or adjusts one or more items from GAAP. This latter basis is a non-G
Slide 13: Reconciliation of expenses ex-notable items and CRD
Reconciliation of expenses ex-notable items and CRD Quarterly reconciliation6 (Dollars in millions) 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 Total expenses, GAAP basis 2,268 2,170 2,091 2,486 2,293 2,154 2,180 2,407 Less: Notable expense items: Repositioning charges: Compensation and employee benefit
Slide 14: Forward-looking statements
Forward-looking statements This presentation (and the presentation 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 o
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