43 slides from Alliancebernstein Holding L.p's earnings presentation, Apr 27, 2006
Slide 1: First-Quarter 2006 Review
7B ALLIANCEBERNSTEIN First-Quarter 2006 Review APRIL 26, 2008 ‘Lewis A. Sanders Gerald M. Lieberman (Chairman & Chief Executive Officer President & Chief Operating Officer ‘Any frecat otopiios in this mater! may ot bein Information shuld ot be contre ivi ace,
Slide 2: Introduction and Forward-Looking Statements
Introduction In gt of Regulation FO, management wil be ited in responding to inquires fom investors r analysis in» nompubli forum. Forward-Looking Statements Certain statements in this presentation ate Yxward-loching statements” within the meaning of the Pivte Secures Ligation Reform Act of 1995, ‘S
Slide 3: AllianceBernstein — First Quarter Highlights
AllianceBernstein — First Quarter Highlights ‘Strong equity capital markets, especially global and international Varied investment performance vs. benchmarks Organic growth in all channels and actively managed investment services of $12 billion Market appreciation of $27 billion Institutional Resear
Slide 4: Market Performance - Non-U.S.
Market Performance - Non-U.S. 475% 812 Months* 10 2006 40 2005 MSC! Emerging Markets MSCI EAFE MSCI WORLD ‘12 nrc eh, 206, ‘Srce MSr ga ty Capt reat).
Slide 5: Market Performance - U.S.
Market Performance - U.S. 13.2% 13.3% 5.9% 3.1% 3.0% 1.3% 11.7% 2% 2.1% 12 Months* 102006 40 2005 2.3% Russell 1000 Growth Russell 1000 Value ‘12mg Meh, 208, ‘She Fas Panel Comp aban Bates sn tnd Fors S&P 500 (0.6)% = 0.6% Lehman Aggregate Bond
Slide 6: Performance Summary
Performance Summary Varied investment performance in quarter © Strong performance in Global and International Value, and Mid-Cap, Small-Cap and Emerging Markets Growth equities ©U.S. equity returns positive in SmalkCap and Mid-Cap services Rising interest rates dampened Fixed Income relative returns
Slide 7: Investment Performance: Delivering Results for Clients
Investment Performance: Delivering Results for Clients Net-of-Fee Annualized Performance Premiums Inception Inception Inception Inception Bernstein Value Equties Date = Mar2008 Alliance Growth Equities Date Mar2005 BD US seaege Vato Dee31,73 28 US Growth Dee31,70 2 DUS Diverse Vaue un30j05 Ht US Sma
Slide 8: Changes in Assets Under Management (By Channel, Three Months)
Changes in Assets Under Management By Channel ‘Three Months Ended March 31,2006 institutional Private In $ Millions Investments. Retail Client Total Beginning of Period $358,545 $145,134 $74,873 $578,552 Sales/New accounts 14,172 14,17 3,961 26,310 Redemptions/Terminations 2,342) (7,393) 721) (10,45
Slide 9: Changes In Assets Under Management (By Channel, Twelve Months)
Changes In Assets Under Management By Channel oes Ended March 31, 2006 Institutional Private ali Investments Retail Client Total Beginning of Period $311,310 $157,562 $65,074 $533,946 Sales New accounts 41,046 34,816 11,768 87,630 Redemptions /Temminations (17,194) (28,483) 2.875) (48,552) Cash flow
Slide 10: Changes in Assets Under Management (By Investment Service)
Changes in Assets Under Management By Investment Service Three Months Ended March 31, 2006 Ins Milloce Growth Value Fixed—Index/ Equity Equity” Income" structured Total Beginning of Period $146,140 $238,231 $164,086 $30,095 $678,552 Sales/New accounts 10426 © 10,953 4,706 228 26,310 Redemptions/Term
Slide 11: Changes In Assets Under Management (By Investment Service, Twelve Months)
Changes In Assets Under Management By Investment Service Twelve Months Ended March 31, 2006 In$ Millions Growth Value Fixed Indexi Equity" Equity" Income Structured Total Beginning of Period $118,159 $195,138 $191,885 $28,764 $533,946 Sales/New accounts 31,468 37,288 18,714 160 87,630 Redemptions/Te
Slide 12: Institutional Investments—First Quarter Highlights
Institutional Investments— First Quarter Highlights = Continuing strong net inflows into Ended March 31, 2006 Global and International services (n$ Billions) Smonths 12 months Beginning AUM ¢ Se FSH © Flows well-diversified geographically (North Net Flows 5 22 America, EMEA, Asia esi Pacific) Dispos
Slide 13: Retail—First Quarter Highlights
Retail— First Quarter Highlights & Positive net flows for third consecutive quarter = Record Luxembourg fund sales = Positive net inflows into U.S. funds-first quarter since 10 02 = Separately Managed Account business continued to strengthen = Wealth Strategies services reached nearly $6 billion in
Slide 14: Private Client—First Quarter Highlights
Private Client— First Quarter Highlights & Strong net inflows Ended March 31, 2006 (in $ Billions) months 12months = Current U.K. expansion plans remain — on track for second half of 2006 Beginning AUM $s 7% $ 65 = Financial Advisors up 23% to 270 Net Flows e 7 from 1005 Transfers 1 1 Market Appreci
Slide 15: Institutional Research Services—First Quarter Highlights
Institutional Research Services— First Quarter Highlights = Double-digit (26%) organic revenue growth in both the US. and UK. offices driven by higher market share and volume, despite continued industry-wide pricing decines © Record market share resulting from research quality and success of algorit
Slide 16: Growth in Global Assets
Growth in Global Assets In $ Billions By Client Domicile $618 Billion at March 31, 2006 $534 Billion at March 31, 2005 Equity $342 6a% By Service
Slide 17: A Balanced Mix: Style Blend Assets Growing in Importance
A Balanced Mix: Style Blend Assets Growing in Importance Assets Under Management by Style Blend () Investment Service $100 billion $618 billion Domestic Fixed Value — Income Equities $36 $164 $213 Index! (51 el Structured Growth Equities Value ‘Component $50 Style Blend Growth Components ( Component
Slide 18: AllianceBernstein First Quarter Revenues
AllianceBernstein First Quarter Revenues In $ Millions Peiene 102006 492005 Change Revenues: Distribution 103 108 46% Institutional Research Services 96 94 1.9% Other 74 3 NM Total 399 750 19.8% NOTE: Prcertops we cattery event eperestened oe rere ad
Slide 19: AllianceBernstein Transaction Fees
AllianceBernstein Transaction Fees In $ Millions Percent 40.2006 492005 Change Advisory Fees Prior period presentation $ 67 $ 536 Reclassification to IRS 1) (19) -96.2% As reported $62 «$517 21.1% Institutional Research Services Prior period presentation $ 95 s 75 26.4% Reclassification from Advisor
Slide 20: AllianceBernstein First Quarter Advisory Fees
AllianceBernstein First Quarter Advisory Fees In $ Millior in $ Millions a 10.2006 192005 Change By Fee Type Base Fees $ 614 $ 509 205% m Higher AUM Performance Fees 12 8 63.1% Total 626 517. 21.1% By Channel: Institutional S$ 25 $ 194 37.0% m Higher average AUM Retail 186 182 2.2% wm Higher average
Slide 21: AllianceBernstein First Quarter Revenues
AllianceBernstein First Quarter Revenues In $ Millions Percent 102006 192005 Change Revenues: Advisory Fees $ 626 $ 517 21.1% Institutional Research Services 96 94 19% Other 74 34 NM Total 899 750 19.8% NOTE: Frcertapes re cattesney revere and eperes ended tothe ere and
Slide 22: AllianceBernstein First Quarter Net Distribution Activity
AllianceBernstein First Quarter Net Distribution Activity In $ Millions 1 2006 102005 Change Distribution Revenues, $103 $108 += 4.6% )_m Lower distribution revenues and distribution plan payments Distribution Expense: due to CMS disposition Distribution Pian Payments n 91 22.3% ‘Amott of Def Sales
Slide 23: AllianceBernstein First Quarter Revenues
AllianceBernstein First Quarter Revenues In $ Millions Percent Revenues: 1 2006 192005 Change Advisory Fees $ 62 $ 517 21.4% Distribution 103 108 48% reclass from Advisory Fees TT 0 re gee ooh sive: held for deferred compensation Total 899 750 19.8% NOTE Prcerops we catked seg everun deers tetas e r
Slide 24: AllianceBernstein First Quarter Expenses
AllianceBernstein First Quarter Expenses In $ Millions Percent 192006 1.2005 Change Promotion & Servicing 146 175 16.5% General & Administrative 127 100 26.8% Interest 7 6 18.5% Amortization of Intangibles 5 5 <i Total 656 Ea) 14.8% ‘hiancebeneisn |
Slide 25: AllianceBernstein First Quarter Compensation & Benefits
AllianceBernstein First Quarter Compensation & Benefits In $ Millions 12006 Base Compensation $ 90 Incentive Compensation 187 Commissions 88 Fringes & Other 36 Total “337 $285 Percent Change 97% 36.8% mbhigher operating earings 41.7% mNew business across all channels 34.8% mlncreased headcount 29.9%
Slide 26: AllianceBernstein First Quarter Expenses
AllianceBernstein First Quarter Expenses In $ Millions Ysrcent 1Q 2006 1@ 2005 Change Employee Comp & Benefits $ 371 S$ 285 29.9% [ESE 75NNG| w Lower istibon pan payers due to disposition of CMS assets and lower DSC amortization (General @Admintaive 2710028846 mHgreregsand occupancy expenses Interes
Slide 27: AllianceBernstein First Quarter Net Income
AllianceBernstein First Quarter Net Income In $ Millions Percent 19 2006 12005 Change Revenues s 899 $750 19.8% Expenses 656 874 14.8% Income before Taxes 243 179 36.1% Income Taxes 15 10 83.1% w Higher effective tax rate due to increased ‘vamings innon-US. subsidiaries Net income 228 169 35.1% Pre-
Slide 28: AllianceBernstein Holding Financial Results
AllianceBernstein Holding Financial Results In $ Millions (except per unit amounts) percent 1Q 2006 12005 Change AllianceBernstein: Net Income $ 228 $ 169 35.1% Weighted Average Equity ‘Ownership Interest 32.1% 31.5% AllianceBernstein Holding: Equity in Earnings $s 73 $ 53 38.0% Income Taxes 7 6 22.
Slide 29: AllianceBernstein Global Service Profile
AllianceBernstein Global Service Profile Client Service * Portaio Solutions Quantitative Research * Geographic Research Footprint vate Cent Inston Reta ‘Weath Manag ‘Group Sie tends [tera investments | ves |[ae |[ ee |[ ee [ce | | |[ see |[ — | eee | Rebananeenooe a “are || sez || cage || ce |[ EE |
Slide 30: Appendix
B ALLIANCEBERNSTEIN Appendix
Slide 31: Market Environment
Market Environment Annualized Cumulative 10.06 One Year Three Years ‘Three Years MSCI Emerging Markets 120 475 46.2 2124 MSCI EAFE 94 244 att 1255 MSCI World 66 18.0 234 77 Russell 1000 Growth 34 13.2 148 513 Russell 1000 Value 59 13.3 218 806 S&P 500 42 7 17.2 6i4 Lehman Aggregate Bond 08) 23 29 90
Slide 32: Relative Performance: Institutional Growth Equity (After Fees)
Relative Performance: Institutional Growth Equity (After Fees)(") Institutional Equity Composites vs. Benchmarks Largecap U.S. Growth® Growth ® 1006 9) 3.0) One Year = 12.3 74 Three Years 1.9 53 Five Years O41 32 10 Years 24 26 Mid Cap ‘Small Cap Growth Growth © 56 15 15.2 44 68 1.2 35 15 5.2 Intl L
Slide 33: Relative Performance: Institutional Value Equity (After Fees)
Relative Performance: Institutional Value Equity (After Fees)'") us. Strategic Value @ 1006 (18) ‘One Year 08 Three Years (1.1) Five Years 12 10 Years 4) Institutional Equity Composites vs. Benchmarks us. Diversified Value ® (04) 0.2) 7) 19 International Value © 32 78 59 7A Global Value “ 28 56 50 6
Slide 34: Relative Performance: Institutional Fixed Income (After Fees)
Relative Performance: Institutional Fixed Income (After Fees)!") Institutional Fixed Income Composites vs. Benchmarks Core 1006 04 One Year 06 Three Years 0.7 Five Years 00 10 Years ot NOTE Metter neta roe sty fr use carat Win th precerten eek eto engepeter ()vesnard pertrmnce of conser peered te ve
Slide 35: Relative Performance: Style Blend Services (After Fees)
Relative Performance: Style Blend Services (After Fees)") Blend Equity Composites vs. Benchmarks International Emerging Markets US. Style Global Style Style Style Blend ® Biend® Blend ® Blend “ 1006 (1.8) 42 12 os ‘One Year 63 82 40 (2.3) Three Years 09 = (0.1) 56 ‘Since Inception 08 38 23 56 NOTE T
Slide 36: Absolute Performance: Private Client (After Fees)
Absolute Performance: Private Client (After Fees)”) Annualized 1006 1Year 3Year 5 Year Fully Diversified Simulation ® 43 164 163 8.0 ‘S&P 500 42 WNT 17.2 40 OTE Te tomatin stot oie sty fr te concen wn a resend el rece tnd tinge eth ‘eset say ceo ABancxursen (1) ern patrons cgones pert ter vest marae
Slide 37: Relative Performance: Retail Growth Equity (After Fees)
Relative Performance: Retail Growth Equity (After Fees)") Retail Mutual Funds vs. Lipper Averages Global Large Cap MidCap Research —Regent Growth® _Growth® Growth Growth® _Equity® 1008 26) 42) 37 02 o4 One Year 83 03 136 49 103 Three Years 1.2 00 86 32 66 Five Years (1.8) 05 44 _ 37 10 Years 0.1) (1
Slide 38: Relative Performance: Retail Value Equity (After Fees)
Relative Performance: Retail Value Equity (After Fees)’ Retail Mutual Funds vs. Lipper Averages Growth & SmalliMidCap Intl! Global Value® income® value“ value Value ®) 1006 os 09) 04 29 16 One Year 04 (24) 0.4) 52 12 Three Years 0.6 at) 13 38 02 Five Years __ a7 32 55 05 10 Years 17 NOTE: Temata rov
Slide 39: Relative Performance: Retail Fixed Income (After Fees)
Relative Performance: Retail Fixed Income (After Fees)\") Retail Fixed Income Funds vs, Peer Group Averages ACMGI- Global Emerging Global American Short. American Corporate Gov't Market High Income Duration _Income- _ Intermediate Bond Income Debt —Yield®~——Portfol Plus Offshore — Duration ® 10.06 (
Slide 40: Relative Performance: Wealth Strategies (After Fees)
Relative Performance: Wealth Strategies (After Fees)\') Retail Mutual Funds vs. Morningstar Averages Wealth Balanced Wealth Preservation Wealth Appreciation 1006 06 12 26 ‘One Year 28 55 10.0 ‘Since Inception © 14 19 42 NOTE Teermtin state owes fer ute nena Wn presen srk eterna (O) vested pertrmoce
Slide 41: Consolidated Balance Sheet
AllianceBernstein Consolidated Balance Sheet In $ Thousands, Unaudited Cash and securities, segregated Receivables, net Goodwill, net Intangible assets, net Deferred sales commissions, net (Other (incl. furniture & equipment) Total Assets Liabilities and Partners Capital Liabilites: Payables Account
Slide 42: Consolidated Cash Flow
AllianceBernstein Consolidated Cash Flow In $ Thousands, Unaudited ‘Cash Flows From Operating Activities: Netincorne Non-cash tes: ‘Amortization and depreciation Amardzation of deferred sles comnmissions ‘Amartzation of deferred compensation Depreciation and other amortization nner, net ‘Changes in
Slide 43: Searchable text section of graphics shown above
Searchable text section of graphics shown above [LOGO] First-Quarter 2006 Review APRIL 26, 2006 Lewis A. Sanders Gerald M. Lieberman Chairman & Chief Executive Officer President & Chief Operating Officer Any forecasts or opinions in this material may not be realized. Information should not be constr