1. N O R T H E R NT R U S TC O R P O R A T I O N Steven L. Fradkin Executive Vice President & Chief Financial Officer J.L. Kellogg School of Management, Northwestern University Finance Conference 2006 November 18, 2006 The Role of the CFO What They Dont Tell You in Business School or in the Recruitment Process

2. Agenda

About Northern Trust

• Overview

• Our Businesses

The Role of the Chief Financial Officer

• A personal journey to the Chief Financial Officer role

• The textbook definition of the CFOs responsibilities and how the role is changing

• Myth versus Reality: What they dont tell you in business school or in the recruitment process

3. N O R T H E R NT R U S TC O R P O R A T I O N About Northern Trust Overview 4. The Northern Trust Difference

Unique in our culture, history, share ownership, and organic growth

Unique in our financial strength and stability

Unique in our business focus one business serving two channels

Unique in our product leadership

Unique in our service model and consistent record of delivery

5. Northern Trust Corporation Client-centric and Highly Focused Northern Trust Global Investments Asset Servicing BankingCorporate & InstitutionalServices Serving institutional investors worldwide Personal FinancialServices Serving affluent private clients in U.S. and Europe Integrated Operations & Technology Platform Assets UnderCustody $3.3 Trillion Assets Under Management $667 Billion BankAssets $55 Billion As of September 30, 2006 6. Northern Trust Corporation Client-centric and Highly Focused Northern Trust Global Investments Asset Servicing BankingCorporate & InstitutionalServices Serving institutional investors worldwide Personal FinancialServices Serving affluent private clients in U.S. and Europe Integrated Operations & Technology Platform

Consumer Finance

Retail Banking

ADRs

Investment Banking

Insurance

Venture Capital

Some businesses Northern Trust isNOT IN :

Corporate Trustee

Stock Transfer

Credit Cards

DC Record Keeping

Discount Brokerage

Merchant Card Processing

Some businesses Northern Trust hasEXITED :

Primary Dealer

Corporate Finance

Futures

7. Strategic Evolution

NTGI Traditional Asset Management

NTGI Fully Diversified, Global, Multi-Product Asset Manager

Broad-based Orientation

From

Tightly Focused on Core Businesses

To

Product Orientation Banking & Trust

Client Orientation Asset Administration and Asset Management

PFS Chicago Presence

PFS National Footprint

C&IS Domestic Business

C&IS Global Enterprise

8. Who Are Our Clients? Providing Solutions for Many of the Worlds Leading Organizations One Constant:Our Focus on Our Clients 9. 2006 Results Reflect Excellent Performance Trust, Inv. & Other Servicing Fees Other Non-Interest Income Net Interest Income Total Revenues Non-Interest Expenses Net Income Earnings Per Share Assets Under Custody Global Custody Assets Assets Under Management Year-to-Date 9/30/06 % Growth 2005 to 2006 $1,333 Million $363 Million $588 Million $2.28 Billion $1,442 Million $495 Million $2.23 $3.3 Trillion $1.54 Trillion $667 Billion +15% +20% +10% +15% +13% +13% +13% +16% +30% +10% 10. Outstanding, Long-Term Growth in Client Assets Assets Under Custody ($ Trillions) Assets Under Management ($ Billions) 12/31/95 - 9/30/06 CAGR: 17% S&P 500 CAGR:7% 12/31/95 - 9/30/06 CAGR:19% S&P 500 CAGR:7% Acquired $75 BN Index Assets S&P 500 S&P 500 11. Differentiated Financial Strength Evidenced by Strong Credit Ratings

Northern Trust Corporation is one of onlysevenU.S. Bank Holding Companies to carryStandard & PoorsLong-Term Debt Rating of AA- or better .

• S&P rates approximately 200 bank holding companies

• Other bank holding companies with a rating of AA- or better: Bank of America, Citigroup, HSBC USA, State Street, U.S. Bancorp, and Wells Fargo.

Northern Trust is one of only sixteen U.S. Banks to carryFitch Ratings A/B individual rating or better .

• Fitch assigns their individual rating to over 100 banks

12. A Differentiated Price/Earnings Multiple 19.0 18.5 18.4 15.8 14.5 14.5 14.4 1. 2. 3. 4. 5. 6. 7. Northern Trust State Street Mellon Bank of New York PNC Bank Wells Fargo Fifth Third 13.7 13.3 13.2 13.1 13.0 12.7 12.0 8. 9. 10. 11. 12. 13. 14. BB&T Huntington SunTrust JPMorgan Chase KeyCorp US Bancorp National City 12.0 11.8 11.7 11.6 13.8 17.6 15. 16. 17. 18. Comerica Wachovia Citigroup Bank of America As of September 30, 2006 using 2006 Street projected earningsFull Peer Group Trust/Custody Peers NTRS Premium to Trust Peers:8% NTRS Premium to Full Peer Group: 38% 13. NTRS: A High Performance Company Note: Closing stock prices adjusted for splits and dividends.Annual EPS is as reported and adjusted for splits. NTRS STOCK PRICE GE EPS NTRS EPS GE STOCK PRICE $0.69 $35.30 3/31/819/30/06 CAGR = 16.7% $0.94 $58.43 3/31/81 9/30/06 CAGR = 17.6% $1.72 $0.15 CAGR = 10.7% 12/31/81 12/31/05 $2.65 $0.20 CAGR = 11.4% 12/31/81 12/31/05 14. Stock Price Performance 1. Procter & Gamble +5.1% 2. FedEx +5.0% 3. Southwest Airlines +0.9% 4. Berkshire Hathaway +0.8% 5. Microsoft -2.1% 6. Starbucks -3.8% 7. General Electric -4.0% 8. Johnson & Johnson -5.2% 9. Wal-Mart -11.4% 10. Dell -28.9% S&P 500 +3.0% NTRS versusFortunesMost Admired Companies of 2005 FY 2005 Northern Trust +6.7% + 12.8% YTD9/30/06 +8.8% +5.4% +1.5% +8.1% +5.7% +13.5% +3.0% +10.0% +6.5% -23.7% +7.0% 15. For Investors, Employees, The Community and Other ConstituentsConsistently Over Time Unique in Our Financial Strength and Stability Delivering High Performance Results CAGR since 12/31/90: NTRS +1,088% $58.43 NTRS17% $4.92

• 1990 2000 2006

S&P 500 +305% As of 9/30/06: S&P 5009 % KBW50 +694% KBW 5014 % 16. ... And Commitment to Community & Philanthropy

Northern Trust consistently contributes approximately 1.5% of pre-tax profits to charities every year

Ranked as the 9th most generous cash contributor byBusiness Weekin 2005

Employees donated more than 230,000 volunteer hours in 2005

Awarded more than $13 million in cash contributions in 2005 to organizations, supporting causes ranging from literacy to affordable housing

High Performance Results can be Consistent with Companies Contributing to their Communities Named one of Global Finance magazines Worlds Most Socially Responsible Companies Northern Trust Named one of 100 Best Corporate Citizens Northern Trust named one of the "100 Best Companies for Working Mothers"for the 15 thconsecutive year! 17. N O R T H E R NT R U S TC O R P O R A T I O N About Northern Trust Our Businesses 18. The recognized leader in providing sophisticated financial solutions to high net worth families. Target market: Individuals or families with$75+ million in investable assets $1 Million $10 Million $75 Million Delivering high-touch trust, investment management and banking solutions to individuals through 84 offices in 18 states. Target market: Affluent individuals with at least $1 million in investable assets Delivering comprehensive, investment solutions through a multi-manager investment program. Target market: Individuals or families with $10 to $75 million in investable assets Wealth Management Wealth Advisory Private Client Client Investable Assets Personal Financial Services Industry Leader in Serving the Affluent Market 19. Personal Trust Assets (Billions) Source: SNL Financial as of 12/31/05 Personal Financial Services Industry Leading Personal Trust Provider Bank of America 100.8 J.P. Morgan Chase 80.5 Wachovia 59.8 Citigroup 54.6 Mellon 53.8 Wells Fargo 40.0 U.S. Bancorp 39.4 National City 35.0 PNC Financial 28.9 Northern Trust $135.4 Largest Personal Trust Bank in U.S.Source: SNL Financial2. 3. 4.5.6.7.8.9.10. 1. 20. Personal Financial Services Comprehensive Advice-Based Solutions

Retirement Services

Qualified Plan Services

Defined Benefit Plans

Defined Contribution Plans

IRA Rollovers

Investment Management

Individual 401(k) Plans

Private Passport

Online access to banking, trust, investment management, mutual funds, and brokerage information

Corporate Banking

Working Capital and GeneralCorporate Loans

Secured and Cash Flow Lending

Acquisition Financing

Industrial Development Bonds

Equipment Finance and Leasing

Comprehensive Trust Services

Family Business Services

Real Estate and Farm Management

Minerals Management

Charitable Services

Trust and Estate Settlement Services

Guardianship Services

Brokerage

Full Service Brokerage

Managed Account

10b5-1 Plans

Money Market Instruments

Safekeeping

Financial Consulting

Retirement Planning

Estate Planning

Tax Planning

Asset Allocation

Stock Option Planning

Client

Checking & Deposit Services

Personal Loans

Real EstateDevelopment Loans

Margin Loans

Stock Option Lending

Home Mortgages

Equity Credit Lines

Private Banking

Structured Investment Services

Asset Allocation

Equity Investing

Fixed-Income Investing

Short-TermAsset Management

Indexing

Alternative Investments

Single Stock Strategies

Investment Management 21. Personal Financial Services Extensive Reach in High Growth, Target Market Source: IXI, Claritas. 84 Offices in 18 States Over 50% of millionaire market resides within a 45-minute drive of Northern Trust offices. Illinois (18) Projected Millionaire Household Growth (Within PFS Footprint, Millions)1.5 2.2 2005 2010 Arizona (8) Florida (25) Colorado (1) Nevada (1) Missouri (1) Minnesota (1) Washington (1) Michigan (3) Texas (7) California (11) New York (1) Connecticut (1) Delaware (1) Ohio (1) Georgia (1) Massachusetts (1) Wisconsin (1) 47% Increase 8% CAGR 22. Personal Financial Services Spotlight:Outstanding Growth in Wealth Management

Target Market: Families with $75+ million in investable assets

Industry leading technology

AUC: $124.2 billion

AUM: $24.6 billion

22% ofForbes 400

350 families

Wealth Management Assets Under Custody $ Billions 12/31/95 to 9/30/06 % Change CAGR Wealth Mgmt. AUC +675% +21% S&P 500 +117% +7% As of September 30, 2006 23. Personal Financial Services Growth and Industry Positioning PFS Assets UnderManagement ($ Billions) Dec 1995 Sept 2006 PFS Assets Under Custody ($ Billions) Dec 1995 Sept 2006 Reputation: Outstanding Private Bank Private Banking International Serving 22% of Forbes 400 Wealthiest Families Forbes Fiduciary Culture: Largest Personal Trust Bank in the U.S. SNL Financial Superb Ratings for Trustworthinessand Objectivity Spectrem Research Institutional Scale: Worlds 10 thLargest Asset Manager Pensions & Investments Magazine Top 500 Innovative Technology Users Information Week Exceptional Client Service: Client Satisfaction Rating of 86% 2005 PFS Client Satisfaction Survey 24. Corporate & Institutional Services A Worldwide Leader in the Institutional Marketplace Fund Services

Fund Accounting

Investment Operations Outsourcing

Active Collateral Management

Hedge Fund Administration

Private Equity Administration

Property Administration

Asset Servicing

Safekeeping

Settlement

Income Collection

Corporate Actions

Information Services Risk Management Asset Management

Cash

Active

Passive

Securities Lending

Manager of Managers

Foreign Exchange

Transition Management

Commission Recapture

Accounting

Reporting

Valuation

Attribution Analysis

Value at Risk

Cross-Border Pension Pooling

Rates of Return

MultinationalHQ Reporting

Compliance Monitoring

Market Event Analytics

25. Corporate & Institutional Services Positioned Globally for Growth Chicago (Corporate Headquarters) Toronto London New York Positioned to serve clients locally and capitalize on global opportunities Luxembourg Amsterdam Isle of Man Dublin Guernsey Jersey Singapore Beijing Tokyo Bangalore* Hong Kong *Name change announced and to be implemented at a later date Trade Settlement in 90 Markets 15 Locations Worldwide Clients in 40 Countries 26. Top 200 US Pension Plans Top 100 US Corporate Plans Top 100 US Public Funds Top 50 US Endowments Top 50 US Foundations Top 50 US Healthcare Funds Top 25 Taft Hartley Plans UK Local Authority Plans Top 200 UK Pension Plans Source: Pensions and Investments 23 January 2006, 26 December 2005, and 30 May 2005; IPE Top 1000 Supplement, September 2005; and S&P Directory of Tax-Exempt Organizations, 2005. Percent Served by Northern Trust Corporate & Institutional Services Strong Position in Target Institutional Segments 27. Corporate & Institutional Services Spotlight:Outstanding International Growth Global Custody Assets $ Billions 12/31/95 to 9/30/06 % Change CAGR Global Custody Assets+1,710% +31% S&P 500 +117% +7% EAFE +66% +5% 15% 15%15%18%23%26%30%35%38%41% 46%50% % of C&ISTotal AUC 28. % of Northern Trust Corporation Net Income resulting fromInternational Activities Corporate & Institutional Services International: Growing Contribution to the Bottom Line 29. C&IS Assets UnderManagement ($ Billions) C&IS Assets Under Custody ($ Trillions) Industry has rewarded our efforts Corporate & Institutional Services Strong Growth in Client Assets

European Pension Fund Custodian of the Year International Custody And Fund Administration 3rd Consecutive Year(February 2006)

One of Two Custodians to Qualify In Each Region R&M Survey(March 2006)

Custodian of the Year Global Pensions 2006 Awards(January 2006)

Best Global Custodian Billionaires

G lobal Investor Global Custody Survey (May 2006)

Best Sole Custodian

G lobal Investor Global Custody Survey (May 2006)

Best Global Custodian in Asia G lobal Investor Global Custody Survey (May 2006)

30. Northern Trust Global Investments World Class Investment Manager $667 Billion Assets Under Management as of September 30, 2006 $245 Billion (37%) $113 Bn (17%) $301 Billion (45%) $416 Billion (62%) Active $218 Billion (33%) Quantitative $33 Billion (5%) Manager of Managers A Diversified Asset Manager Across Asset Classes Across Client Segments Equities Fixed Income Short Duration $539 Billion Institutional $128 Billion Personal Across Styles Other $8 Billion (1%) 31. Canadian & UK Programs Intl/US Equity Manager of Managers Minority and Emerging Managers Investment Program SolutionsInternational Equities EAFE Index Technology Large Cap Growth Socially Responsible Tax Advantaged Fixed Income and Equity Index FundsCore Fixed Income Municipals Government Short/Intermediate Duration Fixed Income Cash Management Investment Options Northern Trust Global Investments A Continuum of Investment Products Multi-Advisor Funds Hedge Funds Private Equity Small Cap Growth Mid Cap Growth Large Cap Value Exchange Fund Enhanced Index Funds International Fixed Income High Yield Stable Value

Active Investment Management

• Growth & Value Equity

• Short & Long Duration Fixed Income

Quantitative Management

• Index & Enhanced Capabilities

Manager of Managers

• Investment Program Solutions

• Emerging & Minority Programs

• Alternative Investments

PRODUCT BREADTH

Methods of Delivery

• Separate Accounts

• Collective Funds

• Common Funds

• Mutual Funds

Methods of Delivery

• Separate Accounts

• Collective Funds

• Common Funds

• Mutual Funds

32. Industry Has Rewarded Our Efforts Dec 1995 to Sept 2006 CAGR Northern Trust 19% S&P 500 7% $ Billions Assets Under Management Dec 1995 Sept 2006 Northern Trust Global Investments Strong Growth in Assets Under Management

10 thLargest Asset Manager Worldwide Pensions & Investments (May2006)

3rd Largest U.S. InstitutionalIndex Manager P&I (May 2006)

4th Largest ManagerU.S. Institutional Tax-exempt Assets P&I (May 2006)

Winner: U.S. Equity (Passive)Global Investor Magazine -Awards for Investment Excellence(April 2006)

Winner: Multi-ManagerGlobal Investor Magazine - Awards for Investment Excellence(April 2006)

Rated #1 Global Securities Lender International Securities Finance (September 2006)

33. Northern Trust Corporation Well Positioned for Growth

Rich History

• 117 Year HeritageUndiluted by Mergers & Acquisitions

Focused Strategy on Growth Businesses

• Exclusively Focused on the Management and Administration of Client Assets

Conservative Culture

• One of only 7 independent U.S. Bank Holding Companies Rated AA- or better by S&P

Seasoned Management Team Northern Trust Industry

• Bill Osborn - Chairman & CEO36 Years 36 Years

• Rick Waddell - President & COO 31 Years 31 Years

• Sherry Barrat - President PFS 16 Years 36 Years

• Steve Fradkin - EVP & Chief Financial Officer 21 Years 21 Years

• Tim Moen - EVP Human Resources 5 Years 31 Years

• Bill Morrison - President PFS 10 Years 33 Years

• Steve Potter EVP C&IS International 24 Years 24 Years

• Jana Schreuder - President WWOT 26 Years 26 Years

• Tim Theriault - President C&IS 24 Years 28 Years

• Terry Toth - President NTGI 19 Years 24 Years

• Kelly Welsh - EVP & General Counsel 6 Years 28 Years

34. N O R T H E R NT R U S TC O R P O R A T I O N The Role of the Chief Financial Officer 35. A Personal Journey to the Chief Financial Officer Role CFO 19851990 199520002005 2006 Compliance Group International Sales Expatriate Assignment in London Global Sales Head General Manager for International Business Financial Management NTRS Stock Price EOP $2.35$4.92 $14.00$81.56$51.82$58.43* *As of September 30, 2006 36. The Role of the CFO

Job Description:

• Responsible for all financial aspects of company operations

• Provide leadership and coordination in the administrative, business planning, accounting and budgeting efforts of the company

Primary Responsibilities :

• Coordinate the preparation of financial statements, financial reports and special analyses

• Develop and implement finance, accounting, billing and auditing procedures

• Establish and maintain appropriate internal controls

• Ensure compliance with local, state and federal reporting requirements

• Develop and direct implementation of strategic and operational plans

• Analyze cash flow, cost controls and expenses to guide management

• Serve on planning and policy making committees

• And much, much more

Source: hrvillage.com Textbook Definition 37. The Role of the CFO Source: Deloitte CFO Center The Changing Role of Corporate Finance:From Steward to Strategist Steward Strategist Finance Management Stakeholder Management Record & Report Analysis & Interpretation Risk Management Capital Optimization Policy Enforcement Planning 38. The Role of the CFO Myth versus Reality Experience, judgment, ethics, low ego, adaptability and fortitude are all important ingredients of an effective CFO. Myth Reality

The executive suite or C Suite

is not always sweet.

The CFO role is a financial job.

It is a management job with oversight responsibility for financial functions

People generally fall in line with and work together to achieve financial goals.

Driving company performance drives people crazy. Not the right job if the goal is to win a popularity contest.

All corporate functions share in the blame when things are not going well.

When things are not going well, they are called financial problems.

Public company quarterly earnings conference calls are effortlessly executed.

Fencing on a tightrope, 500 feet in the air, with no safety net below.

Rising to the CFO spot means you figured it all, or most of it, out.

Counterintuitive career findings: Rising to the CFO spot enhances jobin security.

The CFO works with a select group of senior managers.

The CFO works with directors, investors, management, regulators, auditors, employees, vendors, communities and interest groups, to name a few.Communication and management is key.

39. Conclusion

It is not the strongest of the species that survives, nor the most intelligent that survives.

It is the one that is the most adaptable to change.

-Charles Darwin 40. N O R T H E R NT R U S TC O R P O R A T I O N Steven L. Fradkin Executive Vice President & Chief Financial Officer J.L. Kellogg School of Management, Northwestern University Finance Conference 2006 November 18, 2006 The Role of the CFO What They Dont Tell You in Business School or in the Recruitment Process