Northern Trust Corporation · NASDAQ:NTRS
Northern Trust — William Blair & Company 28th Annual Growth Stock Conference (June 2008)
30 slides from Northern Trust's conference presentation, Jun 16, 2008
Slide 1: Northern Trust Corporation
EXHIBIT 99.1 NORTHERN TRUST Service Expertise Integrity CORPORATION Frederick H. Waddell President & Chief Executive Officer June 17, 2008 William Blair & Company 28th Annual Growth Stock Conference © 2008 Northern Trust Corporation
Slide 2: Forward Looking Statement
Forward Looking Statement This presentation may include forward-looking statements such as statements that relate to Northern Trust’s financial goals, dividend policy, expansion and business development plans, anticipated expense levels and projected profit improvements, business prospects and posit
Slide 3: NTRS: Relationship Driven, Client-Centric Business Model
NTRS: Relationship Driven, Client-Centric Business Model Our Clients Pension Funds Government Families Individuals Agencies Large Corporations Family Privately Taft-Hartley Foundations Held Investment Businesses Management Firms Foundations / Family Offices Endowments / Insurance Companies Healthcar
Slide 4: Personal Financial Services
Personal Financial Service Expertise Integrity Services © 2008 Northern Trust Corporation
Slide 5: Extensive Reach in High Growth Affluent Market
Personal Financial Services Extensive Reach in High Growth Affluent Market 85 PFS Offices in 18 States Projected Annual Over 50% of the U.S. millionaire market resides Household Growth Rates within a 45-minute drive of Northern Trust offices. 2007 - 2012 by Household Asset Size Washington (1) 15.5%
Slide 6: Integrated Teams Serving Client Segments
Personal Financial Services Integrated Teams Serving Client Segments Offering clients needs-based solutions. Wealth Management The recognized leader in providing sophisticated financial solutions to the world’s wealthiest Family Advisory families. $200 MM Serving as clients’ family office, providing
Slide 7: Addressing Clients' Complex Financial Goals
Personal Financial Services Addressing Clients’ Complex Financial Goals Integrated approach and comprehensive capabilities. Building and Protecting and Creating a Legacy Managing Wealth Transferring Wealth Grow Assets Protect and Preserve Wealth Reinforce Family Values Proprietary and Third-
Slide 8: Our Focus on the Affluent Market is Unmatched
Personal Financial Services Our Focus on the Affluent Market is Unmatched Private Client Revenues As a Percentage of Total Company Revenues, Full Year 2007 42% 35% 30% 16% 12% 10% 10% 9% 5% Northern Merrill Wilmington Citigroup Bank of Bank of Goldman JP Morgan Wachovia Lynch* Trust America NY Sachs
Slide 9: Largest Personal Trust Provider in the U.S.
Personal Financial Services Largest Personal Trust Provider in the U.S. The Largest Personal Trust Bank in the U.S. Personal Trust Assets ($ Billions) 1. Northern Trust $205.3 2. Bank of America 127.5 3. JPMorgan Chase 84.5 4. Citigroup 69.9 5. Wachovia 61.9 6. Bank of NY Mellon 50.7 7. U.S. Bancorp
Slide 10: Significant Success in Growing Client Assets
Personal Financial Services Significant Success in Growing Client Assets PFS PFS Assets Under Management Assets Under Custody ($ Billions) ($ Billions) $148 $332 $135 $282 $117 $110 $226 $104 $209 $98 $185 $92 $94 $88 $163 $160 $148 $151 $73 $121 $96 $59 1997 1998 1999 2000 2001 2002 2003 2004 2005
Slide 11: Corporate & Institutional Services
Corporate & Service Expertise Integrity Institutional Services © 2008 Northern Trust Corporation
Slide 12: Market Opportunities Continue to Grow
Corporate & Institutional Services Market Opportunities Continue to Grow Total Market: $161 Trillion(1) Total Assets Under Custody Worldwide: $90 Trillion(2) Europe, North America Middle East & Africa Asia Pacific $60 Trillion $60 Trillion $41 Trillion Canada U.K. $4 Trillion $10 Trillion Japan West
Slide 13: Strategically Positioned to Succeed in Three Dynamic Regions
Corporate & Institutional Services Strategically Positioned to Succeed in Three Dynamic Regions Europe, North America Middle East & Africa Asia Pacific Chicago London Amsterdam Dublin Limerick Beijing Guernsey Luxembourg Tokyo Jersey Toronto Hong Kong Bangalore Abu Dhabi Singapore Melbourne 13 Servi
Slide 14: Actively Pursuing Mandates Across Multiple Markets
Corporate & Institutional Services Actively Pursuing Mandates Across Multiple Markets Finland Switzerland Germany UAE Canada Norway United Kingdom Sweden Luxembourg China Ireland Thailand Guernsey U.S.A. and Jersey South Korea Netherlands Macau Cayman Islands Taiwan Philippines Puerto Rico Malaysia
Slide 15: Asset Servicing Solutions
Corporate & Institutional Services Asset Servicing Solutions Full array of capabilities to meet the needs of sophisticated institutional investors. Active Manager of managers Asset Quantitative Hedge funds Management Investment outsourcing Private equity Liability driven investing Tr
Slide 16: Strong Presence in Target Institutional Segments
Corporate & Institutional Services Strong Presence in Target Institutional Segments Pension Plans Public Funds / Taft-Hartley Northern Northern Of the Top Serves Of the Top Serves 100 U.S. Corporate Plans 40% 25 Taft-Hartley Funds 40% 200 U.S. Funds 40% 100 U.S. Public Funds 37% 200 U.K. Funds 29% U
Slide 17: Significant Success in Growing Client Assets
Corporate & Institutional Services Significant Success in Growing Client Assets C&IS C&IS Assets Under Custody Global Custody Assets ($ Trillions) ($ Trillions) $3.8 $2.1 $3.3 $1.7 $2.7 $2.3 $1.2 $1.9 $1.0 $1.5 $1.5 $0.7 $1.4 $1.3 $1.1 $0.5 $0.5 $1.0 $0.4 $0.3 $0.1 $0.2 1997 1998 1999 2000 2001 2002
Slide 18: Northern Trust Global Investments
Service Expertise Integrity Northern Trust Global Investments © 2008 Northern Trust Corporation
Slide 19: Top Tier Investment Manager
Northern Trust Global Investments Top Tier Investment Manager Rankings Markets 8th Largest Manager Worldwide Institutional Assets Served 5th Largest Manager U.S. Institutional Tax-Exempt Assets 4th Largest Manager Defined Benefit Assets 3rd Largest Manager Multi-Manager - U.S. Institutional
Slide 20: A World Class Investment Manager
Northern Trust Global Investments A World Class Investment Manager Assets Under Management: $778.6 Billion (As of March 31, 2008) Diversified Across… …Asset Classes …Client Segments …Investment Styles Active Short $274Equities Billion Personal Personal $457 Billion Duration (36%) $283 Billion $146 B
Slide 21: A Full Array of Proprietary and External Investment Solutions
Northern Trust Global Investments A Full Array of Proprietary and External Investment Solutions Proprietary Proprietary Manager of Northern Trust is the only asset Active Strategies Quantitative Strategies Manager Strategies management firm that operates – Equities with scale – across active, passiv
Slide 22: Positioned for Global Growth
Northern Trust Global Investments Positioned for Global Growth Extensive presence through worldwide Northern Trust Offices client base and distribution relationships. Institutional Distribution Agreements United States New York Canada Ireland United Nordics Netherlands China Japan Taiwan Hong Singap
Slide 23: Significant Success in Growing Client Assets
Northern Trust Global Investments Significant Success in Growing Client Assets Assets Under Management ($ Billions) $779 $757 12/31/97 to 3/31/08 CAGR $697 Northern Trust 14% S&P 500 3% $618 $572 $479 Acquired $75 of Index Assets $326 $320 $292 $303 $233 $197 1997 1998 1999 2000 2001 2002 2003 2004
Slide 24: Current Topics of Interest
Service Expertise Integrity Current Topics of Interest © 2008 Northern Trust Corporation
Slide 25: Current Environment
Current Environment The environment beginning in the summer of 2007 and continuing today has been characterized by uncertainty, complexity and volatility. UNCERTAINTY “Until the housing market, and particularly house prices, shows clearer signs of stabilization, growth risks will remain to the dow
Slide 26: Strong Performance in 2007, Despite Tumultuous Environment
Strong Performance in 2007, Despite Tumultuous Environment Northern No securities or leveraged loan write-downs Trust: Credit quality improved: nonperforming assets decreased and reserve ratios improved Operating EPS: Completed 12th consecutive quarter of double-digit, year-over-year growth
Slide 27: Strong Performance Continued in First Quarter 2008
Strong Performance Continued in First Quarter 2008 Tumultuous environment continued in First Quarter 2008 3/31/08 vs 3/31/07: S&P 500 -6.9%; EAFE -16.9% Northern Record operating net income, up 24% vs First Quarter 2007 Trust: Record total revenues, up 19% vs First Quarter 2007 6% growth i
Slide 28: Differentiated Business Model
Differentiated Business Model Revenue Stream – Dominated by Fee Income 74% of Total Revenues derived from Non-Interest Income in 2007. Top 20 Bank average equaled 48%. Loan Portfolio – High Quality Nonperforming assets represented only 0.13% of total outstanding loans as of March 31, 2008. Top 2
Slide 29: Showcasing and Strengthening Our Premiere Brand
Showcasing and Strengthening Our Premiere Brand Client Communications Sponsorships & Events Client Segmentation Alternative Communications Advertising Worldwide Crises Funding Products Philanthropy Regional Messages 29 Service Expertise Integrity
Slide 30: Northern Trust Corporation
NORTHERN TRUST Service Expertise Integrity CORPORATION Frederick H. Waddell President & Chief Executive Officer June 17, 2008 William Blair & Company 28th Annual Growth Stock Conference © 2008 Northern Trust Corporation
Northern Trust — William Blair & Company 28th Annual Growth Stock Conference (June 2008) on 6ix