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Form 8-K
NORTHERN TRUST CORP - NTRS
Filed: September 13, 2016 (period: September 13, 2016)
Report of unscheduled material events or corporate changes.
The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user
assumes all risks for any damages or losses arising from any use of this information, except to the extent such damages or losses cannot be
limited or excluded by applicable law. Past financial performance is no guarantee of future results.
Table of Contents
8-K - 8-K
Item 7.01. Regulation FD Disclosure
Item 9.01. Financial Statements and Exhibits
SIGNATURES
EXHIBIT INDEX
EX-99.1 (EXHIBIT 99.1)
Source: NORTHERN TRUST CORP, 8-K, September 13, 2016
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) September 13, 2016
NORTHERN TRUST CORPORATION
(Exact name of registrant as specified in its charter)
Delaware
(State or other jurisdiction of incorporation)
001-36609
36-2723087
(Commission File Number)
(IRS Employer Identification No.)
50 South LaSalle Street, Chicago, Illinois
60603
(Address of principal executive offices)
(Zip Code)
Registrant’s telephone number, including area code (312) 630-6000
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the
registrant under any of the following provisions:




Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Source: NORTHERN TRUST CORP, 8-K, September 13, 2016
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use of this information, except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.
Source: NORTHERN TRUST CORP, 8-K, September 13, 2016
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Item 7.01.
Regulation FD Disclosure
On September 14, 2016 at approximately 9:00 a.m. (EDT) / 8:00 a.m. (CDT), Frederick H. Waddell, Chairman
and Chief Executive Officer of Northern Trust Corporation (the “Corporation”), will speak at the Barclays Global
Financial Services Conference (the “Conference”) in New York. The audio webcast of the presentation will be
available live and for replay for 30 days from the presentation date and can be accessed from the “Investor
Relations” section of the Corporation’s website at www.northerntrust.com/presentations. Attached as Exhibit 99.1
are the slides that Mr. Waddell will present at the Conference.
The information in this Form 8-K, including Exhibit 99.1, is being furnished and shall not be deemed “filed” for
purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise
subject to the liabilities of that section, nor shall it be deemed to be incorporated by reference in any registration
statement or other document filed under the Securities Act of 1933, as amended, or the Exchange Act, except as
otherwise stated in such filing.
Item 9.01.
Financial Statements and Exhibits
(d) Exhibits:
Exhibit 99.1
Conference Slides.
Source: NORTHERN TRUST CORP, 8-K, September 13, 2016
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed
on its behalf by the undersigned hereunto duly authorized.
NORTHERN TRUST CORPORATION
(Registrant)
Date:
September 13, 2016
Source: NORTHERN TRUST CORP, 8-K, September 13, 2016
By:
/s/ Mark M. Bette
Mark M. Bette
Senior Vice President and
Director of Investor Relations
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EXHIBIT INDEX
Number
Description
99.1
Conference Slides
Source: NORTHERN TRUST CORP, 8-K, September 13, 2016
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1 northerntrust.com | © Northern Trus t 2016 Barclay s Global
Financial Services Conference 2016 NORTHE RN T RUST CO RPORATION Frederick H. Waddell Chairman & Chief Executive Officer Sheraton Times Square New York 14 September 2016
Source: NORTHERN TRUST CORP, 8-K, September 13, 2016
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2 northerntrust.com | © Northern Trus t 2016 FO RWARD-LOOKING STATEME NTS T his presentation may include statements which constitu te “forward-lookin g statements” with in the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-loo king statements are identified ty pically by words or phrases such as “believe,” “expect,” “anticipate,” “intend,” “estimate,” “project,” “likely ,” “plan,” “goal,” “target,” “strategy ,” and similar expressions or future or conditional verbs such as “may ,” “will,” “should,” “would,” and “could”. Forward-loo king statements include statements, other than those related to his torical facts, that relate to N orthe rn Trust’s financial resu lts and outloo k, capital adequacy , dividend p olicy , anticipated expense levels, spending related to technology and regulatory initiatives, r is k management policies, contingent liabilities, s trategic initiatives, indus try trends, and expectations regarding the impact of recent legislation. These statements are based on Northern Trust ’s current beliefs and expectations of future events or future results, and invo lve ris ks an d uncertainties that are difficult to predict and subject to change. These statements are also b ased on assumption s about many important factors, includin g the factors discu ssed in Nor thern
Trust’s most recent annual report on Form 10-K and other filings w ith the U.S. Securities and E xchange Commission, all of wh ich are available on Northern Trust ’s webs ite. We caution y ou not to place undue reliance on any forward-lookin g statement as actual results may differ materially from those expressed or implied by forward-looking statements. Northern Trust assumes no o bligat ion to update its forward-loo kin g statements.
Source: NORTHERN TRUST CORP, 8-K, September 13, 2016
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3 northerntrust.com | © Northern Trus t 2016 CLIENT- CENTRI C, FO CU SED BU SINE SS MODEL Pension s Sovereign entities Fund managers Foundat ions & endowments Insurance companies Individ uals Families Family offices Foundations E ndowments Privately held businesses Institutional Clien ts Personal Clients As of and for the three months ended Ju ne 30, 201 6 Asset Management $906 billion A ssets Un der Management Asset Servicing $8.1 trillion Assets Under Cu stody /Adminis tration Ban kin g $115 billion Average Balance Sheet As sets Attributes of A ttractive Lines of Bus inesses for Northern T rust: • Large and growing mar kets • Mu lti-prod uct • Stable, low-ris k • Recurring, fee-based • Relation ship or iented
Source: NORTHERN TRUST CORP, 8-K, September 13, 2016
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use of this information, except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.
4 northerntrust.com | © Northern Trus t 2016 WEALTH MANAGE MENT A full array of goals driven wealth management solutions for indiv iduals, families and private businesses. Investment Management • Goals Driven Inves ting • Bro kerage services Wealth Plannin g • Financial plann ing • Family education and governance • Tax and wealth transfer strategies • Philan thropy • Busines s owner services Trus t & Estate Services • Wealth transfer planning • Custom trust so lutions • Tru st adminis tration • Es tate settlement services • Guardiansh ip services Ban kin g • Private ban king • Bus iness ban king
Source: NORTHERN TRUST CORP, 8-K, September 13, 2016
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The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any
use of this information, except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.
5 northerntrust.com | © Northern Trus t 2016 CO RPORATE & INSTITUTIONAL SE RVICE S Delivering as set servicing and as set management solution s to institutional clien ts globally . GLOBAL DI STRI BUTION TECHNO LOGY AND EXPERTI SE CLIENT EMPHASI S SOLUTION SET CU STOMIZ ED OFFERING No t-for-Profit Pensions So vereign Entities Financial Ins titu tion s Insurance Fiduciary Managers Alternative Managers Investment Managers Asset Management Asset Servicing Capital Mar ket Data Fu nd Liq uidity Regulatory Retirement
Source: NORTHERN TRUST CORP, 8-K, September 13, 2016
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The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any
use of this information, except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.
6 northerntrust.com | © Northern Trus t 2016 Asset Classes E quities $456 Billio n (50%) Fixed Income $156 Billio n (17%) Sh ort Duration $273 Billion (3 0%) Other $21 Billion (3%) Client Segments $67 2 Billion C&IS $234 Billion Wealth Management Sty les $46 Billion (5%) $ 413 Billion (46%) Active $ 427 Billion (47%) Index Mu lti- Manager Other $20 Billio n (2%) ASSET MANAG EMENT To tal assets under management of $906 billion across client segments, asset c lasses and investment sty les. Client-focused, d iversified asset management solutio ns. As of June 30, 2 016
Source: NORTHERN TRUST CORP, 8-K, September 13, 2016
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7 northerntrust.com | © Northern Trus t 2016 TRAN SFORMING TECHNOLOGY TO ENABL E BU SINESS G ROWTH How We Deliver Projects • Agile • Digital H ow We Build Software • Continuou s Integration • Clo ud • Services • User Experience Platform How We Manage Our Data • Smart “Big Data” • Data Deliveries • Governance How We Run Infrastructure • Cloud • Driv ing Un it Costs How We Manage Our Application Portfolio • Clien t Value • Optimization How We Innovate • Innovation Center • Silicon Valley • Bloc kchain • Rob otics How We Secure Our Environment • Prevent • Detect • Respond
Source: NORTHERN TRUST CORP, 8-K, September 13, 2016
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The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any
use of this information, except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.
8 northerntrust.com | © Northern Trus t 2016 FO CUSED ON ATT RACTIVE MARKET S The personal and ins titu tional mar kets are large and growing. North America Private Financial Wealth $U S Trillio n $ 60 $76 201 5 2020 E CAG R: 7. 8% 7.4% Sources: BCG Global Wealth 201 6, Cerulli As sociates Global Mar kets 20 16, The City UK, eVestment, PWC, ET FGI, Ernst & Young an d internal estimates Global Ins titu tional A ssets $U S Trillio n $38 $ 31 $29 $17 $7 $3 $16 1 $50 $ 40 $35 $20 $10 $6 201 5 2019E Total $ 125 Retirement Funds Mutual/ Collective Fund s Insurance Assets Sovereign Wealth Fun ds Alternatives ET Fs CAG R: 6.5% 5.8% 1.3% Wealth H oldings > $10 0M Wealth Ho ldin gs $20-$1 00M Wealth H oldings $1-$ 20M Wealth H oldin gs < $1 M
Source: NORTHERN TRUST CORP, 8-K, September 13, 2016
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The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any
use of this information, except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.
9 northerntrust.com | © Northern Trus t 2016 POSITIONED FO R CONTINUED SU CCESS Favorable secular trends align well with Northern Trust ’s busines s model. Secular Trends
Source: NORTHERN TRUST CORP, 8-K, September 13, 2016
Global wealth creation and increasing complexity
G lobalizatio n and cross-border investing
Bac k and middle office outsourcing for investment managers
Increased regulation facing clients
Evolving investor preferences
Passive management
Engineered equity
Alternatives
Accelerating demand for solution s-based technology
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The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any
use of this information, except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.
10 northerntrust.com | © Northern Trust 201 6 9.3% 9. 5% 10.0% 1 1.5% 11.4% FY 2 012 FY 2013 FY 2 014 FY 2015 1Q 2016 2Q 2016 I MPROVING PRO FITABILITY AND RETURN S 1 A djusted 2Q16 results excludes $ 14.0 million net pre -tax gain on non-recurring items as highlighted in our second q uarter earnings release. 2 Pre-tax margin stated on an FTE basis is a n on-GAAP financial measure. A reconciliation to reported results prepared in accordance with U.S. GAAP is included in the Append ix on page 15. Return on E quity 26.2% 3 0.3% 120% 119% Pre-tax Margin2 Noninterest Expense as a % of Trust & Investment Fees 12.2% ROE was 1 2.2% in 2Q 2016, or 11.7% on an adjusted basis, 1 both w ithin our 10%–1 5% target range Pre-tax margin was 30.3% in 2Q 2016, or 31.6% on an adjusted basis1 Ratio of expenses to tru st & inves tment fees was 119% in 2Q 2 016, or 10 8% on an adjusted ba sis1
Source: NORTHERN TRUST CORP, 8-K, September 13, 2016
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The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any
use of this information, except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.
11 northerntrust.com | © Northern Trust 201 6 A RE COGNIZED MARKET LEADER T ECHNOLOGY Top Wealth Management Mob ile Application — Brand New Med ia, 2015 Best Cloud Initiative-American Financial Technology Award — Waters Magazine, 2 015 WEALTH MANAGEMENT Best Pr ivate Ban k for Succession Plannin g — Financial T imes Group, 2015 One of the World ’s Bes t Private Ban ks — Global Finance, 2015 Bes t Asset Management Firm Serving Family Offices and Private Banks — Family Wealth Report Award, 2 015 CO RPORATE & INSTITUTIONAL SE RVICE S Best Glo bal Cus todian for Asset Owners — As ianInvestor, Asset Management Awards, 2016 Fund Admin istrator of the Year, Europe — G lobal Investor/ISF 30th Anniversary Awards, 2016 ASSET MANAGEMENT 13th Largest Manager – Worldwide As sets — Pensions & Investments, 20 15 Largest Mo ney Managers Report Best Smart Beta Strategies — As ia Asset Management, 2015 Best New Fixed Income Product – SKO R — ETF.com, 201 4 Ran ked among Top 100 Companies for Excellence in Information Technology — CIO, 2 016 Best Custo dy Specialist - Ins titu tional — The As set - Triple A As set Servicing, Investor and Fund Management Awards, 2016 (8th consecutive y ear)
Source: NORTHERN TRUST CORP, 8-K, September 13, 2016
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12 northerntrust.com | © Northern Trust 201 6 CON SIST ENTLY STRONG AND FO CUSED +8% Wealth Management Fees +12% Corporate & Institutional Services Fees + 9% AUM +12% AU C 2011 – 1H201 6 CAG Rs 1H2 016 fees are annualized LONG-TE RM SUCCE SS TH ROUGH A FO CUSED STRATEGY • Mar ket Leader in Focused Bu sinesses • A History of Organic Growth • Distinctive Financial Strength • Proven Record of Manag ing for Long-Term Growth and Profitability
Source: NORTHERN TRUST CORP, 8-K, September 13, 2016
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13 northerntrust.com | © Northern Trust 201 6
Source: NORTHERN TRUST CORP, 8-K, September 13, 2016
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14 northerntrust.com | © Northern Trust 201 6 A ppendix
Source: NORTHERN TRUST CORP, 8-K, September 13, 2016
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The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any
use of this information, except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.
15 northerntrust.com | © Northern Trust 201 6 The following table presents a reconciliatio n of pre-tax income, total revenue and pre-tax margin prepared in accordance with GAAP to such measures on a fully taxable equivalent (FTE) basis, wh ich are non-GAAP financial measures. Management believes this presentatio n provides a clearer indication of these financial measures for comparative purposes. T hree Months Ended June 30, 2 016 March 31, 2016 J une 30, 201 5 ($ In M illions) Repor ted FTE A dj. FTE Reported FTE Adj. FTE Reported FT E Adj. FTE Pre-tax Income $ 394.7 $ 6.9 $ 401.6 $ 359.2 $ 6.2 $ 36 5.4 $ 41 1.4 $ 6. 4 $ 417 .8 Total Revenue $ 1,3 16.7 $ 6 .9 $ 1,3 23.6 $ 1,190.0 $ 6.2 $ 1,196.2 $ 1,25 5.9 $ 6. 4 $ 1,26 2.3 Pre-tax Margin 30.0 % 30.3 % 30 .2 % 30.6 % 32.8 % 3 3.1 % RECON CILIATION OF NON-GAAP FINAN CIAL MEA SURE S
Source: NORTHERN TRUST CORP, 8-K, September 13, 2016
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Source: NORTHERN TRUST CORP, 8-K, September 13, 2016
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The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any
use of this information, except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.