Alliancebernstein Holding L.p. · NYSE:AB
Alliancebernstein Holding L.p — Q4 2008 Earnings Presentation
42 slides from Alliancebernstein Holding L.p's earnings presentation, Jan 22, 2009
Slide 1: Fourth Quarter 2008 Results Presentation
Gerald M. Lieberman President & Chief Operating Officer Peter S. Kraus Chairman & Chief Executive Officer Any forecasts in this material may not be realized. Information or opinions should not be construed as investment advice. January 21, 2009
Slide 2: Forward-looking statements
Certain statements provided by management in this presentation are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to risks, uncertainties, and other factors that could cause actual results to differ
Slide 3: Market Performance - US
*12 months ending December 31, 2008. Market Performance - US
Slide 4: Market Performance - Non-US
*12 months ending December 31, 2008. Source: MSCI (Morgan Stanley Capital International). Market Performance - Non-US
Slide 5: Global Research Growth & Global Value Historical Performance
Net of client fees Past performance, current valuations and historical analysis are not necessarily indicative of future results. Global Research Growth & Global Value Historical Performance
Slide 6: Changes in Assets Under Management by Channel (Three Months)
Three Months Ended December 31, 2008 $ Billions NOTE: Percentages are calculated using AUM rounded to the nearest million. Changes in Assets Under Management by Channel
Slide 7: Changes in Assets Under Management by Channel (Twelve Months)
Twelve Months Ended December 31, 2008 $ Billions NOTE: Percentages are calculated using AUM rounded to the nearest million. Changes in Assets Under Management by Channel
Slide 8: Changes in AUM by Investment Service
NOTE: Percentages are calculated using AUM rounded to the nearest million. Changes in Assets Under Management by Investment Service
Slide 9: Changes in AUM by Investment Service (Twelve Months)
Twelve Months Ended December 31, 2008 $ Billions NOTE: Percentages are calculated using AUM rounded to the nearest million. Changes in Assets Under Management by Investment Service
Slide 10: Institutional Investments Highlights: 4Q08
< Sales of new mandates remain tepid while terminations increased sequentially by 33% < Pi peline down to $8 billion versus $14 billion at 3Q08 as search activity slowed Ø Over 40% in defined contribution < Achieved a top ranking in surveys by Newsletter on Pensions and Investments in Japan and Pete
Slide 11: Retail Highlights: 4Q08
< Net outflows flat versus 3Q08 Ø Lower gross sales partially offset by lower redemptions < Little impact to date from distributor consolidation < AB Retail Mandate Ø Improve the investment outcomes of individual investors by aligning our research and knowledge with the advice delivery platforms of
Slide 12: Private Client Highlights: 4Q08
(1) Transfers of certain client accounts were made among distribution channels resulting from changes in how these accounts are serviced by the firm. NOTE: Percentages are calculated using AUM rounded to the nearest million. Private Client Highlights: 4Q08 < Net outflows increased vs. 3Q08 < Continu
Slide 13: Alternative Investment Services AUM
($ Billions) +35% The information in this display is provided solely for use in connection with this presentation and is not directed towards existing or potential hedge fund investors or investment advisory clients of AllianceBernstein. +50% +35% *Consists of Hedge Fund, Currency and Venture Capita
Slide 14: Institutional Research Services Highlights: 4Q08
< Full year revenue up 11% Year-over-Year, with growth in the U.S. more than offsetting a modest decline in Europe. < 4Q revenue flat year-over-year, down 5% sequentially, decelerating in the latter half of the quarter as market volumes were down significantly. Institutional Research Services Highli
Slide 15: Year-Over-Year Change in AUM Composition
Equity AUM down 53% Global & Int’l AUM down 47% Equity (1) vs. Fixed Income US vs. Global & Int’l Services (1) Includes Index, Structured and Asset Allocation services ($ Billions) Year-Over-Year Change in AUM Composition
Slide 16: Percentages are calculated using revenues and expenses rounded to the nearest
NOTE: Percentages are calculated using revenues and expenses rounded to the nearest thousand.
Slide 17: Fourth Quarter 2008 Advisory Fees
Fourth Quarter 2008 Advisory Fees
Slide 18: Staff Levels
Headcount down 12% sequentially and 10% versus 4Q07 Staff Levels
Slide 19: Fourth Quarter 2008 Operating Expenses
Fourth Quarter 2008 Operating Expenses
Slide 20: Fourth Quarter 2008 Compensation & Benefits
NOTE: Percentages are calculated using expenses rounded to the nearest thousand. Fourth Quarter 2008 Compensation & Benefits
Slide 21: Fourth Quarter 2008 Net Income
(1) "Operating Margin" = (Operating Income + Non-Controlling Interest in Earnings)/Net Revenues NOTE: Percentages are calculated using revenues and expenses rounded to the nearest thousand. Fourth Quarter 2008 Net Income
Slide 22: Holding Financial Results
(1) Excludes insurance recoveries related to class action claims processing error. NOTE: Percentages are calculated using income, earnings and expenses rounded to the nearest thousand. Holding Financial Results
Slide 23: Peter S. Kraus, Chairman & CEO
Peter S. Kraus Chairman & Chief Executive Officer Any forecasts in this material may not be realized. Information or opinions should not be construed as investment advice. January 21, 2009
Slide 24: Q&A
7B -ALLIANCEBERNSTEIN Q&A
Slide 25: Appendix
7B ALLIANCEBERNSTEIN Appendix
Slide 26: Index returns through December 31, 2008
Annualized Cumulative Index 4Q 08 One Year Three Years Three Years S&P 500 (21.9) (37.0) (8.4) (23.0) Russell 1000 Growth (22.8) (38.4) @.1) (24.9) Russell 1000 Value (22.2) (36.8) (8.3) (22.9) MSCI Emerging Markets (27.6) (53.3) (4.9) (14.0) MSCI EAFE (20.0) (43.4) 7.4) (20.5) MSCI World (21.8) (40
Slide 27: Relative Performance: Institutional Growth Equity
Relative Performance: Institutional Growth Equity (After Fees) (1)
Slide 28: Relative Performance: Institutional Value Equity
Relative Performance: Institutional Value Equity (After Fees) (1)
Slide 29: Relative Performance: Blend Strategies
Relative Performance: Blend Strategies (After Fees) (1)
Slide 30: Relative Performance: Institutional Fixed Income
Relative Performance: Institutional Fixed Income (After Fees) (1)
Slide 31: Absolute Performance: Private Client
Absolute Performance: Private Client (After Fees) (1)
Slide 32: Relative Performance: Retail Growth Equity
Relative Performance: Retail Growth Equity (After Fees) (1)
Slide 33: Relative Performance: Retail Value Equity
Relative Performance: Retail Value Equity (After Fees) (1)
Slide 34: Relative Performance: Retail Fixed Income
Relative Performance: Retail Fixed Income (After Fees) (1)
Slide 35: Relative Performance: Wealth Strategies
Relative Performance: Wealth Strategies (After Fees) (1)
Slide 36: Investment Performance: Delivering Results for Clients
Bernstein Value Equities Inception Date Inception- Dec Alliance Growth Equities Inception Date AllianceBernstein. Past performance is no guarantee of future results. Source: Bloomberg, Citigroup, FTSE, JPMorgan Chase, Lehman Brothers, Merrill Lynch, MSCI, Nomura, Russell Investment Group, Scotia Cap
Slide 37: Consolidated Balance Sheet
In $ Millions Consolidated Balance Sheet
Slide 38: Consolidated Statement of Cash Flows
Consolidated Statement of Cash Flows
Slide 39: 45,00 $13,351 ° | $10,663 10,000 $9,568 $8,452 5,000 $792 = (20,000) (25,000) eae
45,00 $13,351 ° | $10,663 10,000 $9,568 $8,452 5,000 $792 0 = (20,000) (25,000) eae ($23,205) = (5,000) | 4006 1007 207 3007 «4007 ~—ta08 10,000 1,50 (10,000) ($1,500) (64.659) (15,000)
Slide 40: Net Flows by Distribution Channel
Net Flows by Distribution Channel $ Millions
Slide 41: Net Flows by Investment Service
Net Flows by Investment Service $ Millions
Slide 42: AllianceBernstein trademarks
AllianceBernstein® and the AB AllianceBernstein Logo are trademarks and service marks owned by AllianceBernstein L.P.
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