STATE STREET CORP - FORM 8-K - EX-99.1 - SLIDES FOR THE PRESENTATION BY MR. HOOLEY - May 19, 2010

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EX-99.2 - RECONCILIATIONS OF CONSOLIDATED REPORTED RESULTS OF OPERATIONS - STATE STREET CORPdex992.htm
Annual Meeting of Shareholders
May 19, 2010
Exhibit 99.1

Well Positioned for the Future
Joseph L. Hooley
Chief Executive Officer

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Reminder
This presentation contains forward-looking statements within the meaning of United States securities laws, including statements about our goals and expectations regarding our business, financial
condition, results of operations and strategies, the financial and market outlook, governmental and regulatory initiatives and developments, the business environment and other matters that do not relate
strictly to historical facts and are based on assumptions by management. Forward-looking statements are often identified by such forward-looking terminology as "plan," "expect," "look," "believe,"
"anticipate," "estimate," "seek," "may," "will," "trend," "target,” “scenario,” and "goal," or similar terms or variations of such terms. These statements are not guarantees of future performance, are
inherently uncertain, are based on current assumptions that are difficult to predict and involve a number of risks and uncertainties. Therefore, actual outcomes and results may differ materially from what
is expressed in those statements, and those statements should not be relied upon as representing our expectations or beliefs as of any date subsequent to May 19, 2010. 
Important factors that may affect future results and outcomes include, but are not limited to: financial market disruptions and the economic recession, whether in the U.S. or internationally, and
monetary and other governmental actions, including regulation, taxes and fees, designed to address or otherwise be responsive to such disruptions and recession, including actions taken in the U.S. and
internationally to address the financial and economic disruptions that began in 2007; increases in the volatility of, or declines in the levels of, our net interest revenue or other revenue influenced by
market factors, changes in the composition of the assets on our consolidated balance sheet and the possibility that we may be required to change the manner in which we fund those assets; the financial
strength and continuing viability of the counterparties with which we or our customers do business and to which we have investment, credit or financial exposure; the liquidity of the U.S. and
international securities markets, particularly the markets for fixed-income securities, and the liquidity requirements of our customers; the credit quality, credit agency ratings, and fair values of the
securities in our investment securities portfolio, a deterioration or downgrade of which could lead to other-than-temporary impairment of the respective securities and the recognition of an impairment
loss in our consolidated statement of income; the maintenance of credit agency ratings for our debt and depository obligations as well as the level of credibility of credit agency ratings; the ability to
complete our announced and pending acquisitions, as well as future acquisitions, divestitures and joint ventures, including the ability to obtain regulatory approvals, the ability to arrange financing as
required, and the ability to satisfy other closing conditions; the risks that acquired businesses will not be integrated successfully, or that the integration will take longer than anticipated, that expected
synergies will not be achieved or unexpected disynergies will be experienced, that customer and deposit retention goals will not be met, that other regulatory or operational challenges will be
experienced and that disruptions from the transaction will harm relationships with customers, employees or regulators; the possibility of our customers incurring substantial losses in investment pools
where we act as agent, and the possibility of general reductions in the valuation of customer assets under our management; our ability to attract deposits and other low-cost, short-term funding; potential
changes to the competitive environment, including changes due to the effects of consolidation and perceptions of State Street as a suitable service provider or counterparty; the level and volatility of
interest rates and the performance and volatility of securities, credit, currency and other markets in the U.S. and internationally; our ability to measure the fair value of the investment securities on our
consolidated balance sheet; the results of litigation, government investigations and similar disputes or proceedings; the enactment of new legislation and changes in governmental regulation and
enforcement that affect us or our customers, and which may increase our costs and expose us to risk related to compliance; current proposals for legislative and regulatory changes that may impose
special taxes or assessments on us, change the activities in which we are permitted to engage or change the standard of liability for certain services that we provide; adverse publicity or other reputational
harm; the performance and demand for the products and services we offer, including the level and timing of withdrawals from our collective investment products; our ability to grow revenue, attract
and/or retain and compensate highly skilled people, control expenses and attract the capital necessary to achieve our business goals and comply with regulatory requirements; our ability to control
operating risks, information technology systems risks and outsourcing risks, and our ability to protect our intellectual property rights, the possibility of errors in the quantitative models we use to manage
our business and the possibility that our controls will fail or be circumvented; changes in accounting standards and practices; and changes in tax legislation and in the interpretation of existing tax laws
by U.S. and non-U.S. tax authorities that impact the amount of taxes due. 
Other important factors that could cause actual results to differ materially from those indicated by any forward-looking statements are set forth in our 2009 Annual Report on Form 10-K and our
subsequent SEC filings. We encourage investors to read these filings, particularly the sections on Risk Factors, for additional information with respect to any forward-looking statements and prior to
making any investment decision. The forward-looking statements contained in this presentation speak only as of the date hereof, May 19, 2010, and we do not undertake efforts to revise those forward-
looking statements to reflect events after that date.

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Well Positioned for the Future
Agenda
Strong Foundation
Strategic Direction
Investing in Strong Governance, Communities and CSR
Summary

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Strong Foundation

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Well Positioned for the Future
Strong Foundation
STRENGTHENED CAPITAL
•
Passed Federal Reserve stress test by a wide margin
•
Raised $2.3B in equity capital
•
Among the first to repay TARP and common stock warrant
•
Executed TCE Improvement Plan
REDUCED COSTS
ENHANCED RISK
MANAGEMENT
•
Multi-year strategic plan in place
•
Broad-based organizational focus
DEEP CLIENT
RELATIONSHIPS
•
Added $1.1T in assets to be serviced
•
Added $248B net new asset management business
•
Launched new products and services
2009 Actions Will Have a Multi-Year Effect
•
Controlled headcount
•
Reduced 2009 performance-based cash incentive compensation
•
Streamlined operations

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Well Positioned for the Future
Strong Foundation —
Client Wins in 2009 Include
Investment Servicing
Investment Management
•
Charles Schwab
•
Morgan Stanley
•
Legg Mason
•
John Hancock
•
Caxton Associates
•
Canadian Western Trust
•
China Insurance Guaranteed Trust
•
Vanguard  UK funds
•
Calamos  Investments
•
Genworth Financial
•
Arizona Public Safety Personnel
Retirement System
•
Three funds from the State of Ohio
•
Fonchim Funds
•
Kingfisher Pension Scheme and
Retirement Trust
•
Neuberger Berman Group, LLC
•
AP Fonden 1
•
Flintshire County Council
Growing Momentum in Core Businesses

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Well Positioned for the Future
Strong Foundation —
Client Service / Industry Accolades
No. 1 in Fund Accounting
and Administration
R & M
2009 Fund Accounting and
Administration Survey
No. 1 in Flow Research
Euromoney
2009 FX Survey
Top Rated in Pre-Trade,
Post-Trade, Organization
& Support
Plansponsor
2009 Transition Management
Survey
No. 1 Global Custodian
for Clients with $10B+
in Assets
Global Custodian
2009 Global Custody Survey
No. 1 Global Mutual
Fund Administrator
Global Custodian
2009 Mutual Fund
Administration Survey
Most Recognized
ETF Brand
exchangetradedfunds.com
2009 Global ETF Awards
Global Private Equity Fund
Administrator of the Year
International Custody and
Fund Administration
2009
Global Awards
Global Securities Lender
of the Year
International Custody and
Fund Administration
2009
Global Awards
Currency Manager of the
Year
2009 European Pensions Awards

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Well Positioned for the Future
Strong Foundation —
Performance in 2009
PERFORMANCE
FOR
12
MONTHS
ENDED
$ in millions, except per share data
12/31/09
12/31/08
% Change
Operating-basis revenue
$8,759
$10,477
(16.40)%
Operating-basis expenses
$5,667
$6,780
(16.42)%
Operating-basis EPS
$4.11
$5.61
(26.7)%
Operating-basis ROE
15.6%
19.3%
1
Calibrated Expenses with Revenue in a Challenging Market
1
Operating-basis revenue, EPS and ROE for 2009 reflect the effect of discount accretion.  Results for both periods are presented on an operating-basis, which presents revenue from
non-taxable sources on a fully taxable-equivalent basis and excludes the effect of revenue and expenses outside of the normal course of our business. Please see a further description
and reconciling tables on State Street’s website.

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Strategic Direction

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Well Positioned for the Future
Strategic Direction —
Secular Trends Support Growth Prospects
GLOBALIZATION
•
Asset managers increasingly invest beyond their borders
•
Asset management industry globalizing product and
distribution strategies
RETIREMENT SAVINGS
•
Driven by demographics, especially in Europe and Asia
•
Evolution of retirement/savings schemes
OUTSOURCING
•
Growing global trend driven by complexity, cost and
risk management
•
Expanding into middle and front office
CONSOLIDATION
•
Need to continually invest
•
Non-core activity for universal banks
•
Scale and distribution capabilities a requirement

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Well Positioned for the Future
Strategic Direction
•
Double non-US revenues over the next five years
•
Drive industry innovation by maintaining technology investment at
20%-25% of operating expenses
•
Accelerate global market share growth in core businesses
organically and through acquisition
•
Achieve positive operating leverage on an annual basis
•
Enhance risk management capabilities across the organization
GOALS

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Well Positioned for the Future
Strategic Direction —
2010 Key Acquisitions
•
Expands European footprint; establishes Italian market leadership. 
Highlights include:
–
Adds €369B in custody, fund administration, depository bank and
Banca
Corrispondente
for
€1.28B
–
Adds about €293M in annualized revenue
–
Goal is to retain about 90% of revenue and remove €60M in cost
over 5 years
•
Makes State Street No.1 administrator globally of Alternative
Investments
²
•
Enhances European market presence
•
Establishes presence in real estate asset administration
•
Acquired about $170B in alternative investment assets (AIS) to be
serviced and expect to add about $100M in annualized revenue
MOURANT
INTERNATIONAL
FINANCE
ADMINISTRATION
1
Closed 5/17/10
2
HFM Week, April 2010; ICFA Alternative Fund Administration Survey, April / May 2010
3
Results presented on an operating basis, which presents revenue from non-taxable sources on a fully taxable-equivalent basis and excludes the effect of revenue and
expenses outside of the normal course of our business.
Acquisitions Expected to be Modestly Accretive                 
to 2010
Operating-basis
EPS
³
INTESA
SANPAOLO’S
SECURITIES
SERVICES
BUSINESS
1

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Well Positioned for the Future
Strategic Direction —
Growth Drivers in Investment Servicing
•
Flight to quality and safety
•
Cost pressures on asset managers and asset owners
•
Heightened regulatory environment
•
Growing need for transparency, risk management and
compliance
KEY CLIENT DRIVERS
•
Investment Operations Outsourcing
–
No.1 in world: $7.1 trillion in middle-office assets under
administration
as
of
12/31/09
–
Industry-leading solution for major global investment
managers
•
Enhanced collateral management, risk services and
derivative processing
•
Alternative investment servicing
•
Electronic trading
GROWTH OPPORTUNITIES
1
Scrip Issue Global Report (3/10)
1

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Well Positioned for the Future
Strategic Direction —
Growth Drivers in Investment Management
•
Need for a trusted, strategic partner
•
Focus on retirement funding levels
•
Institutions moving toward solution-based investments
KEY CLIENT DRIVERS
•
Defined Contribution
–
Building on strong DB and recordkeeping relationships
–
Move towards passive and plan simplification
•
Cash Investment Management
–
Leading manager with $499 billion in AUM as of 3/31/10
–
Diverse product set creates opportunities in global
markets
•
ETFs: $205 billion as of 3/31/10
–
Strong SPDR brand awareness
–
No. 2
provider
in
the
world
•
Liability-driven Investments
–
Leading provider of LDI solutions
GROWTH OPPORTUNITIES
1
Source: Pensions and Investments Magazine (5/09)
1

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Well Positioned for the Future
Strategic Direction —
Positioned for Growth
•
Well positioned against secular
growth trends
•
Trusted relationships with the
world’s top financial institutions
•
Leading geographic and product
market position
•
Proven track record executing
accretive acquisitions
•
Talented global workforce
Long-term
Financial
Goals
•
Operating-basis EPS growth
10%–15%
•
Operating-basis revenue growth
8%–12%
•
Operating-basis ROE growth
14%-17%
1
Results presented on an operating basis, which presents revenue from non-taxable sources on a fully taxable-equivalent basis and excludes the effect of revenue and expenses
outside of the normal course of our business. Please see a further description on State Street’s website.
1

17
Well Positioned for the Future
Strategic Direction —
Expectations for 2010
•
Continued strength in servicing and asset management
fee revenue
•
Industry-wide factors constrain market-driven revenue
(securities finance, trading, and net interest revenue)
•
Solid growth in revenue in 2010 compared to 2009
•
Strong capital position
•
Effective cost controls in place
•
Average diluted shares outstanding to increase in 2010
compared to 2009
•
Operating-basis earnings per share
1
to be slightly
above 2009 level of $3.32
A YEAR OF TRANSITION
1
Operating-basis earnings per share exclude the effect of discount accretion. Results for 2009 and 2010 are presented on an operating basis, which presents revenue from non-
taxable sources on a fully taxable-equivalent basis and excludes the effect of revenue and expenses outside of the normal course of our business. Please see a further description on
State Street’s website.

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Investing in Strong Governance,
Communities and CSR

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Well Positioned for the Future
Investing in Strong Governance, Communities and CSR
1
Compared to Diversified Financial Group (GICS code 4020) of 46 companies
2
As of 3/01/10
2004
2005
2006
2007
2008
2009
2010
RiskMetrics
(Formerly ISS)
1
(relative percentage)
73.4%
77.8%
86.0%
89.2%
87.6%
97.2%
93.8%
2
Governance Metrics
International
(Scale of 1–10)
6.5
8.0
7.5
9.0
9.5
9.5
8.0
Ratings Reflect Strong Governance Policies

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Well Positioned for the Future
Investing in Strong Governance, Communities and CSR
The State Street Foundation provided 528 grants worldwide including:
•
North America
–
Teach for America
–
Year Up
–
Boys Club of Greater KC
–
Vital Link
•
Europe/Middle East/Africa
–
IT Fitness Project
–
National College of Ireland Foundation
–
Polish Environmental Partnership
•
Asia Pacific
–
Hangzhou Charity Federation
–
Peer Support Foundation Limited
–
SGBS Trust
PHILANTHROPY

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Well Positioned for the Future
Investing in Strong Governance, Communities and CSR
State Street employees and Alumni dedicated over 72,000 hours
including:
•
Earth Day
•
Food sorting and service
•
Skills-based volunteering & financial literacy
•
Community Mentoring
•
Support Drives / Fundraisers
Executives active with many non-profit organizations including:
•
Asian-American Civic Association
•
Boston Partners in Education
•
Career Collaborative
•
Committee to Encourage Corporate Philanthropy
•
Oxfam Hong Kong
•
Women’s Lunch Place
•
Urban League of Eastern Massachusetts
VOLUNTEERISM

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Well Positioned for the Future
Investing in Strong Governance, Communities and CSR
CORPORATE
SOCIAL
RESPONSIBILITY
PRACTICES
Organization
Ranking
Newsweek
Magazine:
Greenest
US
Companies
No. 1 in financial services and No. 6 overall
Global 100 Most Sustainable Organizations
Highest-ranked financial services firm in 2009
Dow Jones Sustainability World and
North America Indices
One of only two U.S. financial services companies listed
CRO
Magazine’s 100 Best Corporate Citizens
One of only three financial services companies listed
Annual CSR Report One of the Only Independently Verified Reports
Among US-based Financial Services Firms
•
Strong governance infrastructure in place
•
Recent accolades include:

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Summary

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Well Positioned for the Future
Summary
Strong Capital
Industry-Leading Talent
Deep
Client Relationships and Global Reach
Strong Governance
Well Positioned Against Growth Trends
Committed to Delivering Long-term Shareholder Value

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