State Street Corporation · NYSE:STT
State Street — Merger or Acquisition (December 2009)
15 slides from State Street's merger presentation, Dec 22, 2009
Slide 1: State Street's Acquisition of Intesa Sanpaolo's Securities Services Business
December 22, 2009 Exhibit 99.1 State Street’s Acquisition of Intesa Sanpaolo’s Securities Services Business
Slide 2: Reminder
Reminder This presentation contains forward-looking statements as defined by United States securities laws, including statements about our agreement to acquire the securities services business of Intesa Sanpaolo, the results and impact of that acquisition, including the estimated impact of the acqui
Slide 3: Agenda
State Street’s Acquisition of Intesa Sanpaolo’s Securities Services Business Intesa Sanpaolo’s Securities Services Business Strategic Rationale and Financial Impact Transaction Summary Capital Impact Expected Timetable Agenda
Slide 4: Transaction Summary
Transaction Summary Purchase Price Description Financing Earnings Impact Capital Impact Transaction IRR Timing Purchase of the Securities Services Business based in Italy and Luxembourg from Intesa Sanpaolo S.p.A. with long-term contract to service all of Intesa’s investment management affiliates in
Slide 5: Intesa Sanpaolo's Securities Services Business
Intesa Sanpaolo’s Securities Services Business €173bn NAV calculation / fund accounting, back office outsourcing, transfer agent activities and performance analysis Fund Administration €343bn Safekeeping, settlement, corporate actions, tax services and proxy voting Custody €22bn €141bn 1H ’09 Avg. C
Slide 6: Strategic Rationale
Strategic Rationale Market Penetration / Geographic Expansion Italian market leadership with immediate visibility and credibility Increased scale and enhanced presence in Luxembourg Attractive margins in both markets In line with objective of sourcing 50% of revenues outside US Financially Attractiv
Slide 7: Expands International Market Position
Strategic Rationale Italy is one of State Street’s key strategic European markets Expect to further expand on Intesa Sanpaolo relationship Estimated increase in 2008 non-US revenue share from 35% to 38%, adjusted for the acquisition Offshore (Ireland & Luxembourg) Range of Services Country Market Pr
Slide 8: Further Enhances State Street's Competitive Position
Strategic Rationale Source: Company filings and websites Note: Figures based on most recently available public information. ISPSS AUC as of 30-Jun-2009. *BK figure represents AUA as AUC is not disclosed; STT AUA as of 30-Sep-09 was $17.9tn. **The orange portion of the chart represents the assets STT
Slide 9: Transaction Generates Attractive Financial Returns
Strategic Rationale State Street intends to use existing resources to finance the acquisition Long-term cost synergies and revenue enhancement opportunities – 2009 ISPSS revenues estimated at €293 million (~$427mm) – Expect to remove €60mm (~$90mm) in costs over 5 years Merger & Integration costs es
Slide 10: Track Record of Successful Acquisitions
Strategic Rationale Transaction allows State Street to further leverage its proven integration expertise as demonstrated in acquisitions of Deutsche Bank’s Global Securities Services and Investors Financial businesses – Revenue retention rates of approximately 90% – Cost synergies delivered on or ab
Slide 11: Balance Sheet and Capital Impact
Balance Sheet and Capital Impact 7.4% 8.0% 5.0% a, b Tier 1 Leverage 16.8% 16.5% 10.0% a Total capital 15.6% 15.3% 6.0% a Tier 1 capital 5.6% Q3 2009A Standalone Estimated State Street Corp 5.5% 4.25% - 4.75% Tangible Common Equity “Well capitalized” /Target Q2 2010E a Minimum “Well Capitalized” as
Slide 12: Expected Timetable
Expected Timetable Substantially Complete in 24 Months Integration April – May 2010 Targeted Closing Timing / Estimated Timing Milestone Agreement Reached December 21, 2009 Regulatory Approvals January – March 2010 Key Dates
Slide 13: STATE STREET.
STATE STREET. | Gey} pom STATE STREET. SS
Slide 14: Appendix
Appendix presentation, is calculated by dividing total consolidated common shareholders’ equity by consolidated total assets, after reducing both amounts by goodwill and other intangible assets net of related deferred taxes. Consolidated total assets reflected in the TCE ratio also exclude cash bala
Slide 15: STATE STREET.
STATE STREET. Bee) STATE STREET.