Brand Matters: Managing Market Perception of a Transformed Company

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Brand Matters Managing Market Perception of a
Transformed Company
Gerald L. Hassell President March 28, 2006
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Marking an Era of Transformation and Growth

• Transformation from a traditional commercial bank
  to a broad-based global financial services
  company
• Radically expanded capabilities via acquisitions
  and product innovation
• 89 acquisitions
• Investments in technology and people increased
  penetration of global markets
• Broadened our client base on a global basis
• Solidified and extended our industry leadership
  positions

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Shifting the Earnings Contribution
1995
2005
Includes Securities Services, Global Payments,
Asset Management and Private Client Services
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Framing an Era of Transformation and Growth

• Today
• A global enterprise in 33 countries
• Servicing securities in 101 markets
• Operations centers in NY, London, Brussels,
  Dublin, Singapore
• 23,450 staff (23 non-U.S.)
• 25 revenues outside U.S.
• 72 non-interest income (05)
• 24.4B market capitalization (12/31/05)
• 10.9T assets under custody

• 1995
• A U.S.-focused business
• Servicing securities in 50 markets
• Operations centers in NY, London
• 15,000 staff (4 non-U.S.)
• 12 revenues from outside U.S.
• 45 non-interest income
• 9.6B market capitalization
• 2.3T assets under custody

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The Bank of New Yorks Global Presence
Edinburgh
Liverpool
London
Moscow
Frankfurt
Dublin
Montreal
Luxembourg
Brussels
Paris
Tokyo
Istanbul
New York Headquarters
Milan
Madrid
Beijing
Beirut
Seoul
Cairo
Mexico City
Abu Dhabi
Shanghai
Hong Kong
Taipei
Grand Cayman
Mumbai
Manila
Bangkok
Singapore
Kuala Lumpur
Jakarta
Sao Paulo
Subsidiary
Johannesburg
Buenos Aires
Branch
Melbourne
Representative Office
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Market Leadership in Securities Servicing
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Scale of Core Servicing Businesses

• Clear and settle 1.4 trillion in trades daily
• Clear more than half of all U.S. Government
  securities
• Move more than 1 trillion daily
• Trustee for 3 trillion in debt

• Service over 1.1 trillion daily in tri-party
  balances
• Over 150 billion in assets under management
• Handle nearly two-thirds of all sponsored
  depositary receipt programs

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Communications Audit

• Pre-existing Brand Architecture

Parent
Securities Servicing and Global Payments Services
Capabilities
Productand Service Offerings
Investor Services Trustee and depositary Global
fund servicing Fund accounting and
administration Trustee custody and fund
administration Outsourcing
Issuer Services Depositary receipts Corporate
trust services Stock transfer services ETF
Services
Brokerage Clearing Services Pre-trade
analysis Trade execution Trade clearing Post-trans
action reporting Global Liquidity
Services Outsourcing
Global Payment Services Funds transfer Cash
management Trade services - Letters of credit -
Documentary collections - Reimbursements -
Automated inquiry and reporting Deposit and
disbursement services
CommunicativeBrands
BNY Plan Services
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Communications Audit
Pre-existing Brand Architecture
Parent
Retail Banking
Global Markets
Corporate Banking Services
Asset Management Private Client Services
Capabilities
Productand Service Offerings
Retail Small Business Investment Centers
Financial companies services Special industries
banking U.S. commercial banking Regional
commercial banking International banking Leasing
and credit
Foreign exchange Interest-rate and currency
derivatives Strategy and research Currency
overlay
Portfolio management Wealth management and
advisory services Family wealth management
CommunicativeBrands
Greenwich Advisors Beacon Fiduciary Advisors
Investment Advisory Services
BNY Overlay Associates
Gannett Welsh Kotler Estabrook Capital
Management
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Communications Audit
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Key Branding Opportunities
Today

• Our clients know and like us, but do not know of
  the range of products / solutions we can offer
  them.
• Our prospects are generally aware of the Company,
  but do not understand the value we can deliver
  for them nor the high level of service that we
  are providing our clients.
• We have an opportunity to present the marketplace
  with a consistent alignment of messages, look and
  tone that will increase the efficiency of our
  communications.

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Brand Strategy Project Background

• Project Objectives
• To develop a long-term brand strategy that helps
  our transformed organization
• Become better recognized and better understood
• Build preference for the Company among key
  constituencies
• Establish appropriate control mechanisms for
  managing its brand

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Scope of Branding Project

• Established strategic brand framework
• Vision, values, positioning, image attributes
• Simplified and aligned brand architecture with
  core competencies
• Developed new corporate signature and visual
  identification system to convey new brand
  positioning and brand image attributes
• Marketing communications
• Stationery
• Signage
• Presentations
• Trade show/conference presence
• Created new advertising campaign to announce our
  brand message
• Established controls to manage the brand

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Our Vision

• We strive to be the acknowledged global leader
  and preferred partner in helping our clients
  succeed in the worlds rapidly evolving
  financial markets.

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Supported By Our Brand Promise
Our Values
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Differentiated By Our Brand Promise
Our Five Key Attributes

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Defined by Our Core Competencies
Individual and RegionalBanking Services
Treasury Management Services
Investment Management Services
Securities Servicing
Execution Services Independent Research Clearing
Financial Advisor Services Custody
Services Global Fund Services Securities Lending
Collateral Management Services Corporate Trust
Services Depositary Receipts Transfer Agency
Services
Global Payment Services Capital Markets Global
Markets Global Trade Services Liquidity Services
Institutional Asset Management
Services Personal Asset Management Services
Private Banking Business Banking Personal Banking
Client Management
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History of The Bank of New York
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The Street - Current Imagery
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Creative Exploration A Blend of Our Heritage
With a View to the Future
Current Images
New Images
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Currency / Pattern Studies Our Heritage and
Aspirational Image Attributes
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New Corporate Signature
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Visual System
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Visual System
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Web Site
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Annual Report
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Print Advertising
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Ongoing Brand Management

• Educate
• Trained sales staff, product professionals and
  employee base on our new marketing messaging
  platform and communications tools
• Guide
• Developed collateral guidelines and provided
  access to web-based brand center with help desk
• Communicate
• Restructured marketing communications platform
  and go-to-market strategy
• Audit
• Develop brand audit process with compliance in
  order to ensure consistency of messaging

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Summary

• Why Reposition Our Brand?
• Formally establish and reinforce our values,
  especially now
• Reflect the transformation of our company
• Simplify our brand architecture to differentiate
  ourselves in a highly competitive marketplace
• Clearly explain the Companys complex products
  and services
• Deliver our messages to employees, clients,
  prospects, and the financial community
  consistently

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Final Thoughts

• Rapid pace of business change has made branding
  more critical that ever
• Launching a brand is only a start
• A brand is the sum of all the experiences that a
  client or prospect has with our company
• Need to deliver on our brand promise each and
  every day

Consistency is the key to powerful branding
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