State Street Corporation · NYSE:STT
State Street — Merrill Lynch Banking and Financial Services Investor Conference 2006
16 slides from State Street's conference presentation, Nov 14, 2006
Slide 1: Fueling the Growth Engine
FUELING-THE GROWTH ENGINE? Ronald £. Logue Chairman and Chief Executive Officer Merrill Lynch Banking and Financial Services Investor Conference 14 November 2006 STATE STREET.
Slide 2: Forward-looking statements disclaimer
This presentation includes discussion of State Street Corporation’s financial and business goals and strategies, which may be perceived as “forward-looking statements” as defined by federal securities laws. Actual results could differ materially, and there can be no assurance that goals will be achi
Slide 3: Agenda
Agenda Fueling the Growth Engine Continuing the Evolution Performing Against Goals Innovating for Growth Driving Performance
Slide 4: Continuing the Evolution
Slide 5: Continuing the Evolution
Commercial Bank 1974-1984 Redefined strategic focus to emphasize the servicing of financial assets Responded to regulatory changes and growing customer IT needs State Street Plan published with long-term vision Invested in technology and IT talent Established sales culture Institutionalized philanth
Slide 6: Performing Against Goals
D xan AGAINST GOALS 1 Fueling the Growth Engine
Slide 7: Performing Against Goals: Three Months Ended
Fueling the Growth Engine $ in millions except EPS. GAAP results from continuing operations including tax-equivalent net interest revenue. 9.1% $1,397 $1,524 Operating Revenue: 8%-12% Year-over-Year Operating Leverage 10.7% $0.75 $0.83 Operating EPS: 10%-15% 100 BPS % Change 9/30/05 9/30/06 Goals 50
Slide 8: Performing Against Goals: Nine Months Ended
Fueling the Growth Engine $ in millions, except EPS. GAAP results from continuing operations including tax-equivalent net interest revenue. 9 months ended 9/30/2006 excludes impact of tax charges in 2Q. 15.5% $4,088 $4,722 Operating Revenue: 8%-12% Operating Leverage 25% $2.08 $2.60 Operating EPS: 1
Slide 9: Performing Against Goals – Accomplishing Objectives
Fueling the Growth Engine Performing Against Goals – Accomplishing Objectives Represented 24% of total company’s pretax profit YTD, up from 20% at 9/30/2005 Pretax profit margin YTD increased to 36% from 31% at 9/30/2005 Make SSgA Larger Contributor to NIBT Net interest margin expanded to 1.22% from
Slide 10: Innovating for Growth
Slide 11: Leading Innovation – Major Milestones
This Is State Street Leading Innovation – Major Milestones Citistreet IM Operations Outsourcing Acquisition: Deutsche Bank’s GSS business Fund Connect Performance Analytics Workstation Products / Services Businesses INNOVATION mystatestreet.com First China ETF State Street China Technology Center SP
Slide 12: Innovating for Growth – Pioneered Investment Manager Operations Outsourcing
MARKET OPPORTUNITY Fueling the Growth Engine Top 500 investment managers worldwide manage $53.6T in assets, over $42T concentrated with the top 100 managers* OUR POSITION Largest fully global provider servicing $3.4T assets Servicing 11 customers in 14 countries Annualized cross sell revenue = $75 m
Slide 13: Innovating for Growth – Created Capacity in Hedge Funds
Fueling the Growth Engine *Grail Partners November 2005, State Street **KBW, 4/2006 OUR POSITION Purchased IFS in 2002; today 5th largest servicer of hedge funds** AUA $176B in 475 Funds Ranked No.1 Hedge Fund Administrator Global Custodian Established manager with a global customer base $4B AUM GLO
Slide 14: Innovating for Growth – Invented Exchange Traded Funds in 1993
Fueling the Growth Engine * Morgan Stanley 9/06 **Sources: State Street Global Advisors, 2006; Financial Research Corporation, 2005 $484B in assets worldwide* Expected to grow at 30% per year through 2008** Hedge funds and other institutional investors adopting ETFs as an investment option** Global
Slide 15: Driving Performance – Key Factors
Fueling the Growth Engine State Street Consistency Innovation Growth Leadership Perform consistently through economic cycles Achieve financial objectives for revenue, EPS, & ROE Deliver a value to customers they can’t get anywhere else Continue to pioneer new products and services Driving Performanc
Slide 16: Driving Performance – Key Factors
Fueling the Growth Engine Consistency Innovation Growth Leadership S HAREHOLDER V ALUE Driving Performance – Key Factors
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