State Street Corporation · NYSE:STT
State Street — Investor Day (November 2004)
20 slides from State Street's investor day presentation, Nov 2, 2004
Slide 1: Strategies for Growth
Slide 2: Agenda
AGENDA + Business Drivers * State Street's Reputation + Global Growth Opportunities Europe Japan Integrated Outsourcing Solutions Enhanced Equity Execution Hedge Fund Services
Slide 3: Business Drivers Continue to Be Strong
BUSINESS DRIVERS CONTINUE TO BE STRONG + Aging populations + Privatization of retirement assets * Industry consolidation + Globalization of assets + New regulatory requirements « Increased outsourcing STATE STREET.
Slide 4: Our Reputation as the Best
OUR REPUTATION AS THE BEST > Recognition in 2004 Custodian of the Year, Best ETF Provider of the Year, Best Passive Manager of the Year, Global Pensions Best at Investor Services in North America, Euromoney Best Custodian, No.1 Manager of Institutionally Sourced Assets in Asia, Asia Asset Management
Slide 5: Integrated Outsourcing Solutions
> CING SOLUTIONS
Slide 6: European Growth Opportunity
EUROPEAN GROWTH OPPORTUNITY Major European Collective and Pension Markets: $9.3 Trillion 2004-2008 Projected | * Collective Funds: 10% Growth for Key Markets | - Pension Funds: 6% Collectives: $5.1 Trillion Pensions: $4.2 Trillion France Germany Bi ity Poo ues I Offshore (relandiLux) Switzerland mu
Slide 7: Europe: Our Positioning in Key Markets
EUROPE > Our Positioning in Key Markets Wreland.ux UK Germany _ Netherlands taly France Switzerland (Offshore) Total COLLECTIVE AND PENSION ASSETS [womer] $2161 91201 s789«=Ssse7e = «9000=SgTT#=—=«g1509—9130 STATE STREET wor] 18985811 36 at im Ge [ame] 9958 = suds tess“ gS 878,082 Fone] ewe] si04 =
Slide 8: European Highlights
EUROPEAN HIGHLIGHTS + 150 new servicing mandates year to date in Europe representing a full range of services for $203.9B in assets + Expanded relationships with 87 customers acquired from DeAM 40 new servicing mandates year to date Germany | + New mancates represent a full range of services for $13
Slide 9: Japan Market Growth Opportunity
JAPAN MARKET GROWTH OPPORTUNITY > 2004 Total Market Assets: $6.9 Trillion $400B cae) = Japan Post $521B = Insurance ss = Public Funds $640B = Mutual Aid Assoc @ Corp Funds = Invest Trust Funds a1 7008 Sources: Kampoivucho, GPIF, Local Government Officials & Associations Investment Trust Association,
Slide 10: Japan: Our Positioning in the Japanese Marketplace
JAPAN > Our Positioning in the Japanese Marketplace + Largest non-domestic trust bank + Second largest non-domesti€ asset manager Current | ° Staff of 378 Position | - Assets Under Custody: $1308 + Assets Under Trust: $70B + Assets Under Management: $458 + 15new servicing mandates year to date repre
Slide 11: Integrated Outsourcing Solutions: The Strategy
INTEGRATED OUTSOURCING SOLUTIONS > The Strategy * Focus on expanding institutional and global markets * Controlled growth through selective customer partnerships * Deliver a global front-middle-back office solution on a common platform + Aggressively develop cross-sell opportunities + Evolve busines
Slide 12: Enterprise Solution Strategy
ENTERPRISE SOLUTION STRATEGY Middle Office Core Services <> | Giient Performance | | Reportin Record attribution | | Reporting Keeping Post trade NI Data Siew] /_ | aterment farehiuse| Workflow” Processing” Compliance | __\ Lv Prestrade |—_/ Market Data —\. Reconciliation! ‘Compliance Management Ni
Slide 13: Proven Success
PROVEN SUCCESS Installed Customers Countries Services saoo|| BIMCO! US, UK, Germany, Wile ofice, Fund Admin, custoay, faltsne | dapan musta Partin ee eee idle One, Accounting, ied Sop Ue Custody, Sec. Lending, FX a02|| Seligman | us Mile Orice, accounting, Custody $967.98 aeee Seeuoa) ou Mile orice
Slide 14: Financial Expectations
FINANCIAL EXPECTATIONS * 12-24 month implementation/investment horizon per transaction + Lead time for achieving target profitability declines after 2006 as platform matures + Deal experience suggests considerable cross sell leverage post transition — Trading flows — Additional services — Global exp
Slide 15: Enhanced Equity Execution: The Current Environment for Equities
ENHANCED EQUITY EXECUTION > The Current Environment for Equities Trading Is Challenging the Status-quo « Growth in cross-border investing * Regulatory challenges to soft-dollars and bundling « Separation of broker research from investment banking « Rapidly changing market structures around the world
Slide 16: Positioned to Leverage Market Structure Changes
POSITIONED TO LEVERAGE MARKET STRUCTURE CHANGES Equity Trading Volumes aig CAGR: 17.2% Our unique liquidity proposition Indexed 65 combined with fact-based en 00 investment research is fueling 50 equity trading growth. 1999 2000 2001 2002 2003 2004" Assets Transitioned State Street's leading positio
Slide 17: The Hedge Fund Industry Today
THE HEDGE FUND INDUSTRY TODAY Total Market: $4 Trillion Hedge Fund Assets by Region 56% of hedge fund capital is from institutions and funds of “Offshore” funds, with 44% sourced Cores from HNW individuals and family offices” Europe: 18% 20% of hedge funds are funds of hedge funds**, accounting for
Slide 18: Providing Multi-Dimensional Opportunities
Providing Multi-Dimensional Opportunities STATE STREET INTERNATIONAL STATE STREET GLOBAL MARKETS FUND SERVICES: GLOBAL ADVISORS (IFS) (SSgA) Research Front, Back and Middle Office Funds of Hedge Funds Operations Outsourcing Single M: Equity Trading Risk Management Hedge Funds Performance Analytics C
Slide 19: Hedge Fund Servicing: Our Current Position
HEDGE FUND SERVICING > Our Current Position International Fund Services (IFS) wer IFS Assets mm Total Market Assets -e-Percent of Math $1 200 $1,000 $800 $600 $400 $200 Assets in Billions ket Share $1000" State Street Percent of Market Share sa Jul. 02 Dec.02 Jun.03 Dee. 08 Acquisition 0% *Source: V
Slide 20: Searchable text section of graphics shown above
Searchable text section of graphics shown above STR ATEGIES FOR GROWTH JAY HOOLEY EXECUTIVE VICE PRESIDENT [LOGO] AGE NDA • Business Drivers • State Street’s Reputation • Global Growth Opportunities • Europe • Japan • Integrated Outsourcing Solutions • Enhanced Equity Execution • Hedge Fund Services