State Street Corporation · NYSE:STT
State Street — Shareholder Meeting (May 2016)
22 slides from State Street's shareholder meeting presentation, May 18, 2016
Slide 1: Managing Through the Short-Term, While Transforming for Long-Term Growth
1 Managing Through the Short-Term, While Transforming for Long-Term Growth 2016 Annual Meeting of Shareholders Wednesday, May 18, 2016 Exhibit 99.1
Slide 2: Forward-looking Statements
2 Forward-looking Statements This presentation contains forward-looking statements as defined by United States securities laws, including statements relating to our goals and expectations regarding our business, financial and capital condition, results of operations, investment portfolio performance
Slide 3: Agenda
3 Agenda Our Company Today Managing Through the Short-Term Transforming for Long-Term Growth Our Impact Questions & Answers
Slide 4: Our Company Today
4 Our Company Today
Slide 5: Leading Positions in High-growth Markets Around the World
5 Leading Positions in High-growth Markets Around the World All data as of or for the period-ended December 31, 2015, as applicable. AUCA: assets under custody and administration; AUM: assets under management. Businesses Client Segments • State Street Global Services • State Street Global Advisors •
Slide 6: Managing Through the Short-Term
6 Managing Through the Short-Term
Slide 7: Numerous Headwinds are Currently Impacting Our Industry and Clients
7 Numerous Headwinds are Currently Impacting Our Industry and Clients We are proactively addressing the current challenges with the goal of emerging from this environment on a stronger footing and with increased relevancy for our clients Weak Global Growth and Volatile Markets • Declining emerging m
Slide 8: Our Near-Term Strategic Priorities are the Building Blocks for our Future Growth
8 Our Near-Term Strategic Priorities are the Building Blocks for our Future Growth … • Become a digital leader in financial services • Drive growth from core franchise • Continuous investment in new products and solutions to drive revenue and differentiation • Increased focus on expense management •
Slide 9: ... and are Helping Us to Deliver Positive Results Despite the Headwinds
9 … and are Helping Us to Deliver Positive Results Despite the Headwinds • Total fee revenue growth of 2.1%: – 5.3% on a constant currency basis • Continued focus on expense control – generated 79bps of positive fee operating leverage2: – Expenses pressured by an increase in regulatory expectations
Slide 10: We Advanced our Priorities in the First Quarter 2016, While Continuing to Deliver Value
10 We Advanced our Priorities in the First Quarter 2016, While Continuing to Deliver Value1 1 Please see Appendix for footnotes 2-4. The Appendix is available on State Street’s website (www.statatestreet.com/stockholder) and in State Street’s current report on Form 8-K filed with the SEC on the date
Slide 11: Transforming for Long-Term Growth
11 Transforming for Long-Term Growth
Slide 12: Our Focused Strategy Supports Our Long-Term Financial Goals and Future Growth
12 Our Focused Strategy Supports Our Long-Term Financial Goals and Future Growth1 Operating-Basis2 Financial Goals: Revenue Growth of 8%-12%, EPS Growth of 10%-15% and ROE of 12%-15% LONG-TERM SHAREHOLDER VALUE 1 Please see Appendix for footnotes 2-5. The Appendix is available on State Street’s webs
Slide 13: Our Impact
13 Our Impact
Slide 14: We are Positively Impacting Our Communities
14 We are Positively Impacting Our Communities Strong Momentum Across Citizenship and Talent 2015 Corporate Partner of the Year 50 leading company for women’s leadership in APEC Best 100 Companies for Hispanics • Our Foundation invested $23M in 2015 with a focus on education and workforce developmen
Slide 15: Boston Wins is a New Model in Venture Philanthropy
15 Boston Wins is a New Model in Venture Philanthropy Strategy • Bring State Street’s financial and human assets together in partnership with five non-profit partners to work in coordination and collectively drive greater impact for Boston youth • Four-year effort to accelerate our impact on educati
Slide 16: We're Delivering Long-Term Shareholder Value
16 We’re Delivering Long-Term Shareholder Value Five-Year Total Shareholder Return 1/1/2011 – 12/31/2015 1/1/2011 12/31/2015 57% State Street Corp 64% S&P Financials 50% Bank of New York 46% Northern Trust Corp Bank of New York Mellon Corporation Northern Trust Corporation S&P 500 / Financials – SEC
Slide 17: Questions & Answers
17 Questions & Answers
Slide 18: Appendix
18 Appendix The foregoing presentation includes financial information presented on a GAAP basis as well as on a non-GAAP, or “operating basis.” Management measures and compares certain financial information on an operating basis, as it believes that this presentation supports meaningful comparisons
Slide 19: Footnotes for slides
19 Footnotes for slides 10 & 12 2 Long-term goals presented on an operating-basis, a non-GAAP presentation, and do not reflect the near term expectations. Refer to Appendix included with this presentation for explanations of our non-GAAP measures. The Appendix is available on State Street’s website
Slide 20: Total Revenue and Fee Revenue Reconciliation
20 % Change (Dollars in millions) 2015 2014 2015 vs. 2014 T o tal R evenue 1 : Total revenue, GAAP basis1 10,360$ 10,274$ 0.8% Adjustment to processing fees and other revenue (see below) 194 288 Adjustment to net interest revenue (see below) 173 173 Adjustment to net interest revenue (see below) (98
Slide 21: Net Interest Revenue and Expenses Reconciliation
21 % Change 2015 2014 2015 vs. 2014 (Dollars in millions) N et Interest R evenue: Net interest revenue, GAAP basis 2,088$ 2,260$ 92.4 % Tax-equivalent adjustment associated with tax-exempt investment securities 173 173 Net interest revenue, fully taxable-equivalent basis 1 2,261 2,433 Discount accre
Slide 22: Diluted EPS and Return on Equity Reconciliation
22 (Dollars in millions) 2 0 15 2014 D ilut ed Earnings per C ommon Share 1 : Diluted earnings per common share, GAAP basis 1 4 .4 7$ 4.53$ -1.3% Severance costs .11 .13 Provisions for legal cont ingencies .76 .34 Expense billing matter .0 3 — Acquisit ion costs .0 3 .09 Restructuring charges, net .