State Street Corporation · NYSE:STT
State Street — Shareholder Meeting (May 2012)
31 slides from State Street's shareholder meeting presentation, May 16, 2012
Slide 1: Annual Meeting of Shareholders
16 May 2012 Annual Meeting of Shareholders Exhibit 99.1
Slide 2: Building from Strength
Joseph L. Hooley Chairman, President and Chief Executive Officer Building from Strength
Slide 3: Reminder: Forward-Looking Statements
Building from Strength Reminder 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 performa
Slide 4: Agenda
4 Building from Strength Agenda 2011: A Year of Focus Strategic Direction Investing in Communities and Corporate Responsibility 2012: Progress
Slide 5: 2011: A Year of Focus
ma STATE STREET 2011: A Year of Focus
Slide 6: 2011: A Year of Focus
6 Building from Strength 2011: A Year of Focus Deepened Client Relationships and Expanded Market Share • Added $1.4TN in assets to be serviced and $39BN1 in net new long- term assets to be managed • Advanced State Street’s market share in Europe and with key client segments through strategic acquisi
Slide 7: 2011: Deepened Client Relationships
7 Building from Strength 2011: A Year of Focus Average Number of Products Used Average Length of Relationship Top 100 Clients 14.2 Products 20.3 Years Top 1,000 Clients 8.5 Products 11.4 Years Expanded Relationships New Clients Investment Servicing • Alliance Bernstein • Lloyds Banking Group • Manul
Slide 8: Deepened Client Relationships: Industry Recognition
8 Building from Strength 2011: A Year of Focus DEEPENED CLIENT RELATIONSHIPS ‒ INDUSTRY RECOGNITION
Slide 9: Expanded Market Share: Assets Under Administration
9 Building from Strength 2011: A Year of Focus EXPANDED MARKET SHARE Outsourced Assets, $TN Alternative Assets Under Administration as of 6/30/11 25.8 21.8 16.9 12.5 8.1 7.5 5.3 4.9 4.3 0 4 8 12 16 20 24 28 B N Y ST T J P M C it i H S B C B N P P S o cGe n C A C E IS N T R S AUA / AUC, $TN Custody A
Slide 10: Expanded Market Share: Assets Under Management
10 Building from Strength 2011: A Year of Focus EXPANDED MARKET SHARE AUM, $BN Global Assets Managed as of 12/31/11 $BN Global Securities Lending Q4 2011 Average Assets on Loan Global ETF Assets Managed as of 12/31/11 Source: Company reports/websites; Strategic Insight for Vanguard. *Fidelity as of
Slide 11: Increased Return to Shareholders
11 Building from Strength 2011: A Year of Focus INCREASED RETURN TO SHAREHOLDERS State Street Corporation “Well Capitalized”2 12/31/11 Actual under Basel I 12/31/11 Adjusted to Reflect Basel III Proposal3 Tier 1 Capital 6.0% 18.8% 13.3% Tier 1 Common Ratio4 ‒‒ 16.8% 12.1% Tier 1 Leverage 5.0%5 7.3%
Slide 12: Performance for the Twelve Months Ended
12 Building from Strength 2011: A Year of Focus PERFORMANCE FOR THE TWELVE MONTHS ENDED1 1 Financial results presented on an operating or non-GAAP basis (which is adjusted to exclude, among other things, discount accretion). For a description of GAAP- and operating-basis results and related reconcil
Slide 13: Outperforming Peers
13 Building from Strength 2011: A Year of Focus OUTPERFORMING PEERS1 1 Tier 1 common and Tier 1 common (under Basel III) data stated as of 12/31/11. Each company’s operating/adjusted (non-GAAP) presentation may be calculated differently and therefore may not be comparable to other companies’ operati
Slide 14: Strategic Direction
pay STATE STREET Strategic Direction
Slide 15: Strategic Direction: Goals and Long-Term Trends
15 Building from Strength Strategic Direction 1 Measured from 2010 Double Non-US Revenues Over Five Years1 Drive Innovation Accelerate Global Market-Share Growth Organically and Through Acquisitions Leverage Capital Strength GOALS LONG-TERM TRENDS Consolidation Globalization Retirement Savings Compl
Slide 16: Globalization
16 Building from Strength Strategic Direction GLOBALIZATION Year Ended 12/31/012 Year Ended 12/31/11 % Change Revenue3 $3.8BN $9.5BN 150% Non-US Revenue3 $1.0BN $3.9BN 290% Employees4 18,840 29,740 58% Non-US Employees4 4,200 13,350 218% 1 Based on AUA; Company data as of 12/31/11. 2 Data exclude th
Slide 17: Retirement Savings
17 2005 2007 2008 2011E 2015E APAC Europe Latin America Other Building from Strength Strategic Direction RETIREMENT SAVINGS 2005 2007 2008 2011E 2015E DB DC IRA $13.2T $16.0T $12.4T $16.0T $20.7T 10.1% CAGR 7.6% CAGR $6.6T $8.5T $7.4T $9.8T $13.6T 13.5% CAGR 9.1% CAGR Almost 50% of non-US retirement
Slide 18: Complexity
18 Building from Strength Strategic Direction COMPLEXITY Hedge Fund Servicing • Largest servicer in the world1 in a market sized at $2.0TN2 and growing at an estimated 12% CAGR from 2010 through 20143 Investment Manager Operations Outsourcing • No.1 provider4 in a market of about $65TN5 Investment M
Slide 19: Consolidation: Top Custodians by AUA/AUC
19 Building from Strength Strategic Direction CONSOLIDATION: TOP 20 CUSTODIANS BY AUA / AUC1 ($TN) 25.8 21.8 16.9 12.5 8.1 7.5 5.3 4.9 4.3 3.9 3.2 3.1 2.7 2.5 1.1 0.9 0.7 0.7 0.7 0.4 BN Y Mello n S T A TE STRE E T J P Morga n Cit i HSBC S S BN P Pa riba s Societe G eneral e C A CEI S Nort h ern T ru
Slide 20: Investing in Communities and Corporate Responsibility
20 Investing in Communities and Corporate Responsibility
Slide 21: Investing in Communities: Highlights
21 Building from Strength Investing in Communities and Corporate Responsibility Highlights • $20.6MN in Foundation grants to organizations globally • Invested nearly $1MN in MA in Adult Job Readiness and Employment Programs with focus on those providing career track training for specific industries
Slide 22: Investing in Communities and Corporate Responsibility
22 Building from Strength Investing in Communities and Corporate Responsibility www.statestreet.com/better
Slide 23: Corporate Responsibility: Industry Recognition
23 Building from Strength Investing in Communities and Corporate Responsibility – Industry Recognition Organization Ranking Carbon Disclosure Project Listed on the S&P 500 Business Leadership Index Dow Jones Sustainability World and North America Indices One of only four U.S. financial services comp
Slide 24: 2012: Progress
me) STATE STREET 2012: Progress
Slide 25: Q1 2012 Performance
25 Building from Strength 2012: Progress – Recent Update Q1 2012 PERFORMANCE Revenue Growth • Achieved solid growth in fee and total revenue • Momentum in new business wins continued Expense Management • Business Operations and IT Transformation program on track • Expenses impacted by seasonality in
Slide 26: Results of Federal Reserve's 2012 CCAR Stress Test
26 Building from Strength 2012: Progress – Recent Update RESULTS OF FEDERAL RESERVE’S 2012 CCAR STRESS TEST* Projected Minimum Tier 1 Common Capital Ratio Under Hypothetical Supervisory Stress Scenario as Conducted by the Federal Reserve Board of Governors 15.1% 13.3% 12.4% 7.7% 7.7% 7.3% 7.2% 6.6%
Slide 27: Increased Capital Return to Shareholders
27 Building from Strength 2012: Progress – Recent Update INCREASED CAPITAL RETURN TO SHAREHOLDERS Dividend Payout • Increased quarterly common stock dividend to $0.24 per share Share Repurchase Program • Board approved a common-stock purchase program of up to $1.8BN through March 31, 2013 Business I
Slide 28: Outperformed Peers: 1-Year Total Return
28 Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar -50% -40% -30% -20% -10% 0% 10% 1-Year Total Return: 3/31/2011 - 3/31/2012 Building from Strength 2012: Progress – Outperformed Peers State Street Corporation S & P Financial Index Northern Trust Corp. Bank of New York Mellon STT 3.2% S & P Fin. -1.
Slide 29: Summary: Delivering Long-Term Shareholder Value
29 Building from Strength Summary Delivering Long-Term Shareholder Value Navigating Environmental Challenges Well-Positioned Against Secular Growth Trends Financial and Capital Strength Executing our Strategic Plan
Slide 30: me) STATE STREET.
me) STATE STREET.
Slide 31: me) STATE STREET.
me) STATE STREET.