KeyCorp · NYSE:KEY
KeyCorp — Investor Day (2022)
18 slides from KeyCorp's investor day presentation, Mar 8, 2022
Slide 1: Key Overview
Key Overview Chris Gorman Chairman and Chief Executive Officer
Slide 2: Forward-looking Statements
Forward-looking Statements This communication contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 including, but not limited to, KeyCorp’s expectations or predictions of future financial or business performance or conditions. Forward-looking
Slide 3: Agenda
Agenda Introduction & Welcome | Chris Gorman 8:30AM Relationship Banker Driven Businesses | Angela Mago & Randy Paine Enterprise Payments and Commercial Primacy | Ken Gavrity Q&A Break Driving Consumer Relationship Growth | Victor Alexander Targeted Scale Execution in Healthcare: Laurel Road | Jamie
Slide 4: Key Takeaways: Focus Propels Growth
Key Takeaways: Focus Propels Growth A new KEY built around targeted scale, driving sustainable growth and returns 1 We have a unique business model focused on targeted scale 2 We have clear strategic opportunities to accelerate growth 3 We are making targeted investments that are driving tangible re
Slide 5: KEY: Then, Now and The Future
KEY: Then, Now and The Future Then: Competitive Disadvantages The New KEY: Competitive Strengths Overweighted to commercial with lack of consumer growth engines ✓ Balanced franchise with strong consumer growth engines Reliant on stable, but slow growth markets ✓ Strong presence in fast-growing marke
Slide 6: Relationship-Focused Business Model - Consumer
Relationship-Focused Business Model - Consumer Key’s Consumer Bank is focused on acquiring and deepening relationships Strong foundation and distribution … with a targeted national digital offering… expands footprint nationally for targeted clients: originations in all 50 states … and strong momentu
Slide 7: Accelerating Consumer Growth
Accelerating Consumer Growth Clear, strategic growth opportunities across consumer franchise Adding Deepening Capitalizing on Leveraging relationship existing client high growth digital and client relationships markets analytics households Record net new >$22Bn consumer 4X household growth in 75%1 i
Slide 8: Unique Business Model - Commercial
Unique Business Model - Commercial We have a differentiated and targeted, full-service platform delivered through a unique, relationship-based approach A differentiated and comprehensive platform… …with a full set of products and capabilities… Trillionaire/ Commercial Derivatives & Regional Loans Pa
Slide 9: Accelerating Commercial Growth
Accelerating Commercial Growth Commercial Compounded Annual Growth Rate (10-YR): Investment Banking and Debt Placement Fees: 15% 80 $937MM Leading full-service commercial and investment bank Commercial and Industrial Loans: 11% 900 serving middle-market clients in targeted verticals 70 700 ▪ Acceler
Slide 10: Targeted Scale Focus: High Growth Sectors
Targeted Scale Focus: High Growth Sectors Healthcare Technology Renewables Affordable 20% 10% 95% ~37 of US GDP and growing of GDP and grew 66% Renewables portion of total Affordable and available at 6% CAGR1 between 2010-20192 global power capacity rental homes for every increase through 20263 100
Slide 11: Investments Driving Tangible Results
Investments Driving Tangible Results Investing in teammates, digital, and analytics support and accelerate growth across the enterprise Teammates Digital & Analytics ▪ Successful acquisition, integration, and retention of talent in areas ▪ Continued expansion of national digital affinity bank: Laure
Slide 12: Delivering on Commitments for All Stakeholders
Delivering on Commitments for All Stakeholders Teammates Clients Together we do work that matters, have We help our clients make better, more opportunities for growth, and our efforts are confident financial decisions recognized and rewarded $11Bn ~17K originated Paycheck Shareholders dedicated Prot
Slide 13: 2021 ESG Highlights
2021 ESG Highlights Committed to helping our clients and communities thrive Published inaugural TCFD Report1 and Extended and expanded National SASB Index2 Community Benefits Plan Enhanced and renamed annual ESG report and Increased diverse representation in senior completed ESG focus assessment lea
Slide 14: Metrics that Matter
Metrics that Matter Key is a growth story with specific, measurable targets Consumer Commercial Laurel Road +20% +25% 250K Growth in relationship Increase in senior bankers Total member households households by 2025 by 2025 by 2025 Positive operating Moderate risk profile: leverage: Cash efficiency
Slide 15: Key is a Compelling Investment
Key is a Compelling Current Valuation1 Investment Price / Earnings 16.0 Unique, distinctive business model and 12.9 strategy positioned for growth 12.0 11.3 8.0 4.0 High quality, diverse revenue streams built for consistent earnings 0.0 Price / Tangible Book Value Positioned to deliver through diffe
Slide 16: Closing Remarks
Closing Remarks Chris Gorman Chairman and Chief Executive Officer
Slide 17: Metrics that Matter
Metrics that Matter Key is a growth story with specific, measurable targets Consumer Commercial Laurel Road +20% +25% 250K Growth in relationship Increase in senior bankers Total member households households by 2025 by 2025 by 2025 Positive operating Moderate risk profile: leverage: Cash efficiency
Slide 18: Takeaways: The New KEY
Takeaways: The New KEY Leading position in targeted, high-growth Unique, digitally-led healthcare focus businesses Balanced, sustainable, relationship-based Strong credit profile revenue streams Accelerating growth with targeted Committed to strong corporate social investments responsibility Positio