Alliancebernstein Holding L.p. · NYSE:AB
Alliancebernstein Holding L.p — Alliance Capital Management — Q1 2004 Earnings Presentation
35 slides from Alliancebernstein Holding L.p's earnings presentation, Apr 29, 2004
Slide 1: Alliance Capital and Alliance Holding First Quarter 2004 Review
§ Alliance Capital and Alliance Holding First Quarter 2004 Review Lewis A. Sanders Gerald M. Lieberman Chief Executive Officer Chief Operating Officer April 29, 2004
Slide 2: Introduction and Forward-Looking Statements
Introduction ‘The SEC adopted Regulation FD in October 2000, In light of Regulation FD, Management will be limited in responding to inquires tram investors or analysts in a non-public forum. You are encouraged to ask all questions of a material nature on this conferesice call, Forward-Looking Statem
Slide 3: Market Environment
Market Environment eee tees ree a a ee ee ee” eee sacar Sh OO (Ce tn tough, 2008
Slide 4: Relative Investment Performance
} Relative Investment Performance = Overall investment performance was satisfactory in both Equities and Fixed Income = Returns were especially strong in Mid-Cap Growth, Multi-Cap Growth and Global Growth services and in our Regent-branded managed account
Slide 5: First Quarter Revenues
First Quarter Revenues Ge raters oe Ang 1004 1Q03 chg ‘Average AUM ($n) $483 $384 (257% Revenues Base Fee) $507 $408 243 Performance Fee 4 4-108 Distribution 116 100 163 Institutional Research Sves. 80 5837.2 Other 38 _33 172 Total STH $603 «23.6% (ets tanto ces we cy ne
Slide 6: First Quarter Revenues — by Distribution Channel
First Quarter Revenues — by Distribution Channel (Sons) Retail Institutional Inv. Mgmt Private Client Institutional Research Svcs. Other Total 10 $326 185 140 80 4 145, 10003 $295 144 97 58 $603 6 chg 10.4% 204 446 37.2 or4 23.6% Comments + Higher bace advicory ang ‘isibubon fees tram higher average
Slide 7: First Quarter Expenses & Net Income
First Quarter Expenses & Net Income Ge Ftons) Employee Comp & Benefits Promotion & Servicing General & Administrative Interest ‘Amortization of Intangibles Income Before Taxes Income Taxes Net Income 100. $275 190 1 ln wt 568. Ls 1903 Comments See page 8 Higher tral payments and lower DSC amortizati
Slide 8: First Quarter Compensation & Benefits
First Quarter Compensation & Benefits eos tos) 1004 1003 Base Compensation $76 $73 4.19% wontincresces Incentive Compensation 114 a1 ES Sabeaeroneraiisairingy’ + Higher Set-Side trading Commissions 59 43 (350 ae AES Hi Instuional Ses Fringes & Other 26 21234 Total $275 $218 26.0%
Slide 9: Impact of 2003 Charges on Alliance Holding Distributions
Impact of 2003 Charges on Alliance Holding Distributions (Sos, ep peru amurts) Alliance Capital (Operating Partnership) Income Before Impact of Mutual Fund Matters & Legal Proceedings $185 $192 _g188 | _ $525, Mutual Fund Matters & Legal Proceedings (190) (140) - (330) Incentive Compensation at 2 S
Slide 10: Alliance Holding Financial Results
Alliance Holding Financial Results (noes, sept pertnt outs) Equity in Earnings Income Taxes Net income Net Income Per Unit Distribution Per Unit 1904 952
Slide 11: Retail Asset Management - First Quarter
Retail Asset Management - First Quarter = Cash flow and market share remain depressed fa$ atone) = Managementteam strengthened ——_segming Aum ee te + Strategy to rebuild brand equity Net Lon Tem Foe o ® underway Cash Mananenest, Net 2 _s » Enhance value proposition Ni Hon oles 4 ® Appresatn 4 2 » Im
Slide 12: Institutional Asset Management - First Quarter Highlights
Institutional Asset Management - First Quarter Highlights + Unusually weak cash flows > Continued high rate of attrition in U.S, Growth > Broad slowdown in new business + Competitive position strong in U.S. Value, Global Value, Global Growth, and Global Fixed Income 2 ta siions) Net Long-Term Flowe
Slide 13: Private Client Asset Management - First Quarter Highlights
Private Client Asset Management - First Quarter Highlights + Organic growth rate accelerated 5 tors) + Financial Advisor field force rose egireing ALM $51 0 by 15to 190 Net Loe-Tem Fone 2 5 ease © + New offices in Tampa and sai : —* Boston on track for third quarter. ln sige 8 — rote 18 1m «= Ultra-
Slide 14: Assets Under Management by Channel
Assets Under Management by Channel ‘Three Months Ended March 31, 2004 (nitions) Institutional Iny Mgmt Retail Dec. 31, 2003 AUM $270 $184 361 $475 Net Long-Term Flows (6) (1) 2 (6) ‘Cash Management, Net : 2 Net New Business/(Outflows) (8) 1 s) @ Appreciation 1 4 1 12 March 31, 2004 AUM $274 $159 $54
Slide 15: Assets Under Management by Channel
Assets Under Management by Channel ‘Twelve Months Ended March 91,2004 in batons) Institutional Private inv Mgmt ail Client _ I Total March 31, 2003 AUM $212 $13 $40 $386 Net Long-Term Flows : ” 5 3 ‘Cash Management, Net - @ (6) Net New Business/(Outflows) —- @ 5 - Transfers 1 é a) z Appreciation 58
Slide 16: Assets Under Management by Investment Orientation
Assets Under Management by Investment Orient: ‘Three Months Ended March 91, 2004 an batons) Dec. 31, 2003 AUM Net Long-Term Flows Cash Management, Net Net New Business/(utflows) Appreciation March 31, 2004 AUM % Charge seTota! te Tae ay ota ae va Growth Fixed EB. Equity Equity Income _ Passive fl To
Slide 17: Assets Under Management by Investment Orientation
Assets Under Management by Investment Orient: ‘Twelve Months Ended March 31,2004 dns patons) Value Growth Fixed Eqi Equity Income Passive fl Total March 31, 2003 AUM sor $104 S183 $22 $386 Net Long-Term Flows 20 (12) (4) (2) 3 Cash Management, Net - : (6) 2 @ Net New Business/(utfiows) 20 12) ® @ .
Slide 18: Institutional Research Services - First Quarter Highlights
# Institutional Research Services - First Quarter Highlights = Strong revenue growth and market share gain = Continued growth in OTC and program trading platforms « Research quality leads industry » #1 best industry knowledge » #1 most creative ideas » #1 client services > #1 most trusted = Sales qu
Slide 19: Slide 19
Slide 20: Relative Performance — Institutional Value Equity
Relative Performance “) — Institutional Value Equity Institutional Equity Composites vs. Benchmarks Small- Emerging Strategic Diversified Relative pid Cap_—_—international Market Value?) Value) Value?) = Valuel") Value) _Value() YD 403 408 402 a3 12 $2 tyr 40.4 103 08 43 Aa 06 oy 28 +36 14 #92 68 46
Slide 21: Relative Performance — Institutional Growth Equity
Relative Performance “) — Institutional Growth Equity Institutional Equity Composites vs. Benchmarks Emerging Large Cap Multicap = Mid Cap SmallCap IntlLg Cap Market Growth® Growth) Growth®) Growth’) Growth) Growth?) YD 402 68 184 05 19 “9 yr 60 14 4269 Ag 28 89 ayr 2? 6 16.0 Ho 424 28 Byr 03 04 479
Slide 22: Relative Performance — Institutional Fixed Income
Relative Performance ‘ — Institutional Fixed Income Institutional Fixed Income Composites vs. Benchmarks Core Corp High Emerging Core Plus®) Mortgage) _Bends _Yield)___Global®) Market” yD 4 402 4 238 oo 404 tyr #08 Ho 02 43 "4 +60 yr 08 408 404 er 404 482 sr 08 403 105 42 23 +68 toyr 40.3 : 404 +08
Slide 23: Relative Performance — Retail Value Equity
Relative Performance — Retail Value Equity Retail Mutual Funds vs. Lipper Averages ‘Small Value Growth& Cap nth Global (Lq.Cap}") Income) Value®) —Valuel*) «= Value’) Balanced) YD #10 19 402 02 08 Ho ‘yr 3 wT 48.0 478 09 44 ay 48.0 08 Al Hor +4 422 ’yr M5 : : : 487 ‘10yr 425 : : : 20 OTE: The omalon
Slide 24: Relative Performance — Retail Growth Equity
Relative Performance — Retail Growth Equity Retail Mutual Funds vs. Lipper Averages Premier Global | Regent Growth Growth Mid Cap SmallCap Growth Lg: Cap (Lg Capy") (Mukicapy® Growtn®) Growth — Research®)!_coret”™ ae ee ee ee ee ee er ee eT) ona 4 a8 24 a} 480 ae a a a a a se NOTE: The malon nthe po
Slide 25: Relative Performance — Retail Fixed Income
Relative Performance — Retail Fixed Income Retail Fixed Income Funds vs. Lipper Averages Bernstein ACMGI- Corporate Americas Govt Emerging High Short American Bond") Income!) Market Debt?) Yield“ Duration Plus‘) Income - 08°) yr +04 424 407 24 404 +07 yr 484 +04 +60 44 403 +18 oy 88 on 3 45 408 +95
Slide 26: All Balanced Accounts Performance
YTD 1Yr 3¥r 8 Yr All Balanced Accounts”? 23 274 60 57 Global Balanced Benchmark® 24 26.4 39 22 DAL e esate ee ous we cant of ty a ed pum any pcre ws) Coton Orca NOTE Re namin sh erie tyr ce come hie rece, andi reeds i eter 2s
Slide 27: Changes in Assets Under Management by Channel
Changes in Assets Under Management by Channel ‘Three Months Ended March 31, 2004 nS mitens) Institutional Investment Private Management __ Retail Client Total Beginning of Period $200,405 $153,704 954,550 $474,700 SalesNew accounts 404 6.782 2308 13,692 RedemgtionsTermnations 03149 9 8779 Net cach m
Slide 28: Changes in Assets Under Management by Channel
Changes in Assets Under Management by Channel Gn mitens) Beginning of Period SalesiNew accounts RedemptionsiTerminations Net cash management sales Cash fow Unreinvested dvidends Net new business:(Outflows) ‘Transfers Market appreciation End of Period ‘Twelve Months Ended March 31, 2004 2 Prva Raat _
Slide 29: Changes in Assets Under Management by Investment Orientation
Orientation Changes in Assets Under Management by Investment nS mitens) Beginning of Period SalesNew accounts Redemetions‘Termnations Not cash management sales Cash flow Unteivestes aiisends ‘Not now business.{Outtlowes) Transfers Market appreciation End Of Period ‘Three Months Ended March 31, 2004
Slide 30: Changes in Assets Under Management by Investment Orientation
Changes in Assets Under Management by Investment Orientation ‘Twelve Months Ended March 31,2004 nS mitons) vaue Growth q Equity __Equity __income __Passive_ __Total__ Beginning of Period $0723 $103,663 S1e3St1 Sh $306,208 SalesiNew accounts 29,250 17461 arose 1,275 65079 RedergtionsTermmations (ees)
Slide 31: Annualized Fee Base
Annualized Fee Base hanna and restont entaton 391104 vs, 39109 (nena, $1,999 mm $1,547 mm S773 $096 $095 $524 S471 apts a31m3 avin 3931/03 apis 331103, Insteutonal i Retail Private Chet Management
Slide 32: Trends in Headcount
Trends in Headcount
Slide 33: Alliance Capital (The Operating Partnership) Consolidated Balance Sheet
Alliance Capital (The Operating Partnership) Consolidated Balance Sheet (én$ thousands, Unauetocd soins ooets Cosh andiewestm ents 3 624729 Caan and secures, segregated 1.285801 FRecnvsbles, net 220075 Good, net 2575857 Intage assets, net 06,725 Deterred sales commissions, net 357216 other ‘e0/468 T
Slide 34: Alliance Capital (The Operating Partnership) Consolidated Cash Flow
Alliance Capital (The Operating Partnership) Consolidated Cash Flow (én$ tnouseneis, Unauetiecd —epcTteee Moctns ted _—_ Cash Flav From Chertina et ves Netincme 5 tea gto “imotzstono! em 2010 Jamoesten of served eompareston 220 Bs Othe epreciton ard smortston fe wees tne et ea cs Charge masses a abi
Slide 35: Searchable text section of graphics
Searchable text section of graphics shown above [ GRA PHIC] Alliance Capital and Alliance Holding First Quarter 2004 Review Lewis A. Sanders Gerald M. Lieberman Chief Executive Officer Chief Operating Officer April 29, 2004 [LOGO] [ GRA PHIC] Introduction The SEC adopted Regulation FD in October 200
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