Alliancebernstein Holding L.p. · NYSE:AB

Alliancebernstein Holding L.p — Alliance Capital Management — Q3 2004 Earnings Presentation

35 slides from Alliancebernstein Holding L.p's earnings presentation, Oct 29, 2004

  1. Slide 1: Third Quarter 2004 Review

    ‘wwrw-alliancecapital.comn AllianceCapital AS October 28, 2004 THIRD QUARTER 2004 REVIEW Lewis A. Sanders Gerald M. Lieberman Chief Executive Officer Chiet Operating Officer ‘There no guarartee that any fercatsor pon inti material be ealce. éomaton shoul nat be corerund as ivesrent ace,

  2. Slide 2: Introduction and Forward-Looking Statements

    Introduction ‘The SEC adopted Regulation FD in October 2000. In light of Regulation FD, Management wil be limited in responding to Inquiries from investors or analysts in a non-public forum such as this one, Forward-Looking Statements Certain statements provided by Aliance Capital and Alliance Holdi

  3. Slide 3: Market Environment

    Market Environment S&P 500 MSCIEAFE Russell 1000 Growth Russell 1000 Value Lehman Aggregate Bond Fetus trou Septenber 30,2004 Annualized Cumulative 3Q04 aYr 3Yr 3Yr 19% 13.9% 40% 12.6% 0.3% 22.1% 9.1% 299% 52% 75% 16% 49% 15% 205% 78% 24.5% 3.2% 3.7% 59% 18.7%

  4. Slide 4: Alliance Capital Investment Performance

    Alliance Capital Investment Performance Overall equity performance was mixed in our Large Cap U.S, Services m= Continued strong performance in Global/international Value Equity and Small Cap Equity services versus benchmarks m Strong absolute Fixed Income performance m Blend Services — International

  5. Slide 5: Alliance Capital Third Quarter Revenues

    Alliance Capital Third Quarter Revenues (de altos. eet ALD 3004 3003 % cho __ Comments Diluted Net Income Per Unit $0.52 $0.00 nim_— impactor 03 seems Regulatory end Legal Reserves Average AUM ($bn) S480, $481 11.396 pect sora Growth Equty tows Revenues Advisory Fees) $408 $480 4.0% ©. Seepage Distr

  6. Slide 6: Alliance Capital Third Quarter Advisory Fees

    Alliance Capital Third Quarter Advisory Fees (de altos. eet ALD 3Q04 3003 % chg Comments Advisory Fees «Higher average AUM party offset Base Fees $469 $436 7.7% Sy annotated Long torn Me tesreaichons Transaction Charges 28 34-265 Lower Private Cla tonal lovesert Manageme radon came Performance Fees

  7. Slide 7: Alliance Capital Third Quarter Expenses & Net Income

    Alliance Capital Third Quarter Expenses & Net Income (estos) 3Q04 3Q03 % chg Comments Employee Comp. & Benefits $261 $200 30.5% + Seepage? Promotion & Servicing 178 188055 “eee General & Administrative 107 85 267 + See page 8 Interest 6 6 06 Amortization of Intangibles 5 5 - 587 4840 18.2 Charge for

  8. Slide 8: Alliance Capital Third Quarter Compensation & Benefits

    Alliance Capital Third Quarter Compensation & Benefits (@e$.itoes) 304 3Q03__% chg Comments Base Compensation $81 $74 9.0% = Mert increases, a change inthe moc of stett end higher severance Incentive Compensation 96 55 752 + pect of 209 charge or WF Commissions 58 50 159 . Pople aientldib eerste bon

  9. Slide 9: Alliance Capital Third Quarter G&A Expenses

    Alliance Capital Third Quarter G&A Expenses (Sains) 30043003 % chg Comments General & Administrative Office & Related $44 $40 11,49 «Higher occupancy casts (#0) and Sererton tease Technology 21 20 03 eee Professional Fees 12 36.2 + SOIC404. tiie! Portfolio Services 9 8 15.4 Minority Interest 7 1 nin

  10. Slide 10: Alliance Holding Financial Results

    Alliance Holding Financial Results (de $itors, eet pend Anouts) 30043003 % chg 2004 _% chg Equity in Earnings $4 $ 6 nim $ 48-18% Income Taxes 6 6 66 6 42 Net Income $42 $ 0 nim $42 45 Diluted Net Income Per Unit $052 $0.00 nim $053 -1.9 Distribution Per Unit $052 $0.57 8.8% $053 -1.9% NOTE: Prcerta

  11. Slide 11: Growth in Non-U.S. Assets

    10 Growth in Non-U.S. Assets $438 Billion at September 30, 2003 us. Le By Service Non-US, Non-U. 25% [was > us B es y Client Domicile NonUs. 19% Non-U. ‘008m cangetna byo4 by Gene oe ZONE ‘$487 Billion at September 90, 2004 us, 11%

  12. Slide 12: Assets Under Management by Investment Orientation

    " Assets Under Management by Investment Orientation as of September 30, 2004 SERVICE AUM + Value $172 + Growth 120 + Fixed Income 168 + Index/ Structured _27 TOTAL Value Component of Band Blend ‘Components $44 ‘routh Comporert of Bien

  13. Slide 13: Changes in Assets Under Management by Investment Orientation

    7 Changes in Assets Under Management by Investment Orientation Three Months Ended September 90, 2004 (in$ mitions) Value Growth Fixed Equity Equity Income Passive Total Begining of Period $165,201 $126,185 $160,873 $28,352 $480,614 Long-Term Flows SdesNlew accourts 6582 3570 3218 170 13811 Redemptio

  14. Slide 14: Changes in Assets Under Management by Investment Orientation (Twelve Months)

    Changes In Assets Under Management By Investment Orientation Twelve Months Ended September 30, 2004 (in$ mitions) Value Growth Fixed Equity Equity Income Passive Total Beghningof Period $130,459 $119,594 $162,981 $25,910 $487,764 Long-Term Flows ‘SalestNewacoaunts 270 18617 «1454710814, 946 Redempti

  15. Slide 15: Institutional Investment Management — Third Quarter Highlights

    4 Institutional Investment Management — Third Quarter Highlights a Expansion of Fixed Income mandates with AXA Insurance (in $bilons) ahilisies Beginning AUM @ Strong inflows into Net Long-Term Flows international/Global Value Equity services Appreciation Blend Equity services garner craig uae asset

  16. Slide 16: Retail Asset Management — Third Quarter Highlights

    Retail Asset Management — Third Quarter Highlights m Redemptions continued to slow, however, new sales remained depressed m Wealth Strategies Series gross sales surpassed $1 Billion since ‘September 2003 launch = Continued strength in Regent managed account services driven by continued outperformanc

  17. Slide 17: Private Client Asset Management — Third Quarter Highlights

    16 Private Client Asset Management — Third Quarter Highlights Net asset inflows into Value Equity, Growth Equity and Fixed Income services driven by advisor productivity = Opened Tampa and Boston offices in 3Q; Philadelphia on schedule for 4Q Approved 3 new offices for “05, including Atlanta and San

  18. Slide 18: Changes in Assets Under Management by Channel

    Changes in Assets Under Management by Channel Three Months Ended September 30, 2004 (in$ mitions) Institutional Private Inv Mgmt — Retail Client Total Beginning of Period $271,790 $153,729 $65,098 $480,611 Long-Term Flows SaesiNew accounts, 6973 4,688 1,850 13811 Redemglions/Terminations 6974 (6,648

  19. Slide 19: Changes in Assets Under Management by Channel (Twelve Months)

    Changes In Assets Under Management By Channel Twelve Months Ended September 30, 2004 (in $ millions) Institutional Private InvMgmt Retail Client Total Beginning of Period $205,376 $145,580 $45,808 $497,764 Long Term Flows SalesINew accounts 31,373 23413 8,100 62,946 RederptionsTerrrinations (84%) (2

  20. Slide 20: Institutional Research Services — Third Quarter Highlights

    19 Institutional Research Services — Third Quarter Highlights m= Increased market share more than offset declines in market volume and pricing = Recognized for research excellence in the 2004 institutional investor All-America Research poll ™ Advanced to 9" from 13" in sell-side rankings — best ever

  21. Slide 21: Slide 21

  22. Slide 22: Relative Performance — Institutional Value Equity

    a Relative Performance “ - Institutional Value Equity Institutional Equity Composites vs. Benchmarks ‘Small Emerging Strategic Diversified Relative Mid Cap _— international Market Valuel?) value®) Value) Value) Value) Valuet®) 3008-23 43 24 06 122 +64 yD Ar 08 29 +02 +36 433 wot 18 55 45 4 +139 a 10

  23. Slide 23: Relative Performance — Institutional Blend Equity

    Relative Performance(") — Institutional Blend Equity Institutional Composites vs. Benchmarks Emerging Us. Global US. Style Int Style Global Style marketatre Structured seructured Blend®) Blend®) Blend) Blend Equity’) Equity?) 3004 10 +09 4 var 08 09 vi 03 oo “7 28 08 08 on 47 19 2 +19 18 10 an = 04

  24. Slide 24: 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?) 3008 +04 45 4a 125 4 00 vp 406 48 10 4 “7 126 wo 40 +50 +34 +59 15 +05 28 +36 +37

  25. Slide 25: Relative Performance — Institutional Fixed Income

    4 Relative Performance “) — Institutional Fixed Income Institutional Fixed income Composites vs. Benchmarks Core Corp High Emerging Core Plus?) Mortgage) Bonds) —_Yield®) Global) Market”) 3008-02 +03 02 05 on on yD ot +04 +03 24 04 a yw 08 +04 +08 28 +02 +07 a 02 +09 405 34 +04 +73 oe 02 +04 +08 20

  26. Slide 26: Relative Performance — Retail Value Equity

    Relative Performance (") — Retail Value Equity Retail Mutual Funds vs. Lipper Averages Small Value Growth & Cap Intl Global (Lg Capy®) income®) value) —Value*)~=—Value®) Balanced”) 300s +08 on +02 +52 +09 +12 vo +44 +02 +06 +38 18 #24 tyr 10 12 +39 432 125 a3 od +30 42 43 +74 +08 24 on “4 +44 10 +24

  27. Slide 27: 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 Cap}) (Multi Cap)®) Growth) Growth’) Research®): Corel?) 3008 05 23 38 wa +08 +07 yp +08 +33 105 29 03 +12 tr 08 +34 +63 +78 43 “104 4a +1

  28. Slide 28: Relative Performance — Retail Fixed Income

    Relative Performance (') — Retail Fixed Income Retail Fixed Income Funds vs. Lipper Averages Bernstein _ ACMGI- Corporate Americas Gov't Emerging High Short American Bond?) Income?) Market Debt®) Yield!“ Duration Plus‘) Income - 0S") 300s +43 8 oa 10 00 w24 yD #47 10 05 Az 09 +10 co +33 aa 108 2a +0

  29. Slide 29: Absolute Performance — Private Client

    Absolute Performance (") — Private Client YTD 3Q04 1 Yr 3Yr S¥r All Balanced Accounts +24 +07 +108 +67 +51 Global Balanced Benchmark® +23 +06 +109 +6.0 42.1 NOTE: The nomaton eae i proved ste or use in connection wht resertion ands ot reaedtouaels ein o pte Invaier aorta cate ance Ca i us lass (0 es

  30. Slide 30: Annualized Fee Base

    Annualized Fee Base By Channel and Investment Orientation 9730/04 vs. 9130/03 ingries 51,940 mm $4,794 mm $773 gigas gr30y03 gr3q4 913003 Institutional = Investment Management (1) Aeusloed Foe Sas eve as pofodend aitivescotratua anruave aes; Soe a change Ahtar fe a rane 91304 = 913003 Private Client

  31. Slide 31: Trends in Headcount

    Trends in Headcount 4550 4450 4,350 4250 4,50 4,950 3,950

  32. Slide 32: FIN Impact

    FIN 46 IMPACT (de Smtions, sauated) Pre FIN 46 FIN 46 Effect Consolidated Revenues Base Fee $493 Et $494 Performance Fee 4 2 4 Distribution 109 : 109 Other _105 _* te m™ 8 _n9 Expenses Employee Comp & Benefits 260 1 261 General and Administrative 100 7 107 Other 189 _ = _ 189 _849 _887 Income Before

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    Link to searchable text of slide shown abov e Searchable text section of graphics shown above [ GRA PHIC] [LOGO] www.alliancecapital.com October 28, 2004 THIRD QUARTER 2004 REVIEW Lewis A. Sanders Gerald M. Lieberman Chief Executive Officer Chief Operating Officer There is no guarantee that any fore

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