Alliancebernstein Holding L.p. · NYSE:AB
Alliancebernstein Holding L.p — Alliance Capital Management L P — Q1 2005 Earnings Presentation
39 slides from Alliancebernstein Holding L.p's earnings presentation, Apr 29, 2005
Slide 1: First-Quarter 2005 Review
a « ‘wwew alliancecapital com AllianceCapital & April 28, 2005 First-Quarter 2005 Review Lewis A. Sanders Gerald M. Lieberman Chairman & Chiet Executive Officer President & Chief Operating Oficer ‘Arfoncae reps te tray ee aoe Woman onde conse here aoe,
Slide 2: Introduction and Forward-Looking Statements
reno ame Ree Introduction ‘The SEC adopted Regulation FO in October 2000. In light of Regulation FO, Management wil be limited in responding to Inquities ftom investors or analysts in a non-public forum such as this one. Forward-Looking Statements Certain statements in this presentation are “forward
Slide 3: Disappointing First Quarter
reno ame Ree Disappointing First Quarter 12 Months* Ak 1 2005:10 k Peer 10.6% er 2% 1.1% 0.1% = ays oa (1p a (4.19% ‘S&P 500 MSCI MSCI Russell 1000 Russell 1000 Lehman EAFE WORLD. Growth Value Aggregate Bond es, MSC ns Son Poet AllianceCapital AX
Slide 4: Alliance Capital Investment Performance
Alliance Capital Investment Performance m Relative returns in the U.S. were lackluster and especially weak in growth-oriented services m Absolute returns were negative in the U.S. in both equities and fixed income mNon-U.S. relative returns were better; many services produced positive returns ™ Stro
Slide 5: Alliance Capital First Quarter Revenues
reno ame Ree Alliance Capital First Quarter Revenues In $ Millions *In$ Billions 19 19 Percent (2005 2004 ‘Change Ending AUMT $534 $486 9.8% pos baer saMatet appreciation and positive nel ase ows tition Investmentbtanagemet and Private lent channels, Revenues Distribution 108 116 (73) Institutional
Slide 6: Alliance Capital First Quarter Advisory and Transaction Fees
Alliance Capital First Quarter Advisory and Transaction Fees In $ Millions 19 2005 By Fee Type: Base Fees $509 Transaction Charges 19 Performance Fees Total By Channel: Institutional $198 Retail 184 Private Client 154 Total $536 NOTE: Feo pea cobAt ng muster aidepeaee MAO te amet EDN Percent Change
Slide 7: Alliance Capital First Quarter Revenues
reno ame Ree Alliance Capital First Quarter Revenues In $ Millions *In$ Billions 19 2005 Ending AUM™ $534 ‘Average AUM™ 9538 Revenues Advisory Fees $536 Institutional Research Svcs 15 Other at Total $750 NOTE Pome bye am oattims Wig mun aWepeseE PUROatOtE wanst NOLEN
Slide 8: Alliance Capital First Quarter Net Distribution Activity
Alliance Capital First Quarter Net Distribution Activity In $ Millions 10 19 Percent 2005 2004 Shange Distribution Revenues $108 $116 (73)% i) Distibulon pense "Revenge oft ont Distibuton Plan Payment bot Distribution Plan Payments a1 97 (68) 2 funchon oo Reta AUN ‘Amort of Def Sales Comm a7 48 (24.
Slide 9: Alliance Capital First Quarter Revenues
Alliance Capital First Quarter Revenues In $ Millions *In$ Billions 19 19 Percent 2005 2004 Shange Ending AUM™ $534 $486 9.8% ‘Average AUM™ $538 $485 10.7% Revenues Advisory Fees $536 $511 49% Distribution 108 116 73) ssLowerpicng and mate sare, | insttatonalResearh Serices 75.798) ler ——_———E a Tot
Slide 10: Alliance Capital First Quarter Other Revenues
0 Alliance Capital First Quarter Other Revenues In $ Millions Shareholder Servicing Fees Investment Gains & Losses Dividend & Interest, net Other, net Total NOTE: Petenter aca Percent (19.3)% (44.7) (82.0)% -xDecreace in number of acsoumte zewlees compercatin plane AllianceCapital AX
Slide 11: Alliance Capital First Quarter Expenses and Net Income
Alliance Capital First Quarter Expenses and Net Income In $ Millions 19 19 Percent 2005 2004 Change Employee Comp. & Benefits $285 $275 3.7% =Primantymestinceases Promotion & Servicing 175 198 (11.3) stower 056 amortization and itibuen plan payments General & Administrative 100 a 9.8 sPiotemionstees
Slide 12: Alliance Capital First Quarter Compensation and Benefits
2 Alliance Capital First Quarter Compensation and Benefits In $ Millions Base Compensation Incentive Compensation Commissions Fringes & Other Total NOTE: Petenter aca 8.1% =Salaryinceaces 8.9 sHlghersecuitment cots AllianceCapital AX
Slide 13: Alliance Holding Financial Results
Alliance Holding Financial Results in $ Millions (except per unit amounts) Alliance Capital: Netincome Alliance Holding interest inAlliance Capital Alliance Holding: Equity in Eamings Income Taxes Net income ‘Additional Equity in Earnings Income - Diluted Diluted Net income Per Unit Distributions Pe
Slide 14: Growth in Non-U.S. Assets
Growth in Non-U.S. Assets reno ame Ree $486 Billion at March 31, 2004 Sd By Service Non-US. Non-US By Client Domicile Non-U.S pee a congorend byob tot TONE us. 68% us. 14% $534 Billion at March 31, 2005 Non-US, 26%
Slide 15: Assets Under Management by Investment Orientation
5 Assets Under Management by Investment Orientation as of March 31, 2005, Ser AUM wm Value Equity $195 ‘Fixed Income 192 1 Growth Equity 118 Index/ Structured _29 TOTAL $534, Value Component of Blend Growth Components — component ot ot Blend Ly Growth Equity $91 Fixed Income $192 Index Structured Al
Slide 16: Changes in Assets Under Management
6 Changes in Assets Under Management By Investment Orientation Three Months Ended March 31, 2005, In $ Millions Growth Value Fixed Indext Equity Equity Income Structured =Total Beginning of Period $123,267 $192,599 $193,064 $29,504 ($598,764 Sales/New accounts 6.407 8,294 4,099 548 19,348 Redemption
Slide 17: Changes In Assets Under Management
7 Changes In Assets Under Management By Investment Orientation ‘Twelve Months Ended March 31, 2005 In $ Millions Growth Value Fixed Indext Equity Equity Income — Structured Total Beginning of Period $122,303 $155,187 $180,871 $27,995 $486,356 Sales New accounts 19,335 28,175 24,234 1,231 72,975 Rede
Slide 18: Institutional Investment Management—First Quarter Highlights
Institutional Investment Management— First Quarter Highlights = Continued strong net asset inflows into Global Value, Growth and Style Blends — offset by outfiows in US. Equity Services 1 Strong unfunded pipeline in all markets - U.S., Europe and Asia Pacific m Over 70% of new mandates are for non-U
Slide 19: Retail Asset Management—First Quarter Highlights
Retail Asset Management— First Quarter Highlights Slightly negative total net asset flows * Over 50% of net outflows from closing of funds no longer deemed strategic m1 Market share of U.S. retail funds remains depressed = Growth in separately managed accounts remained strong m= Positive net flaws c
Slide 20: Private Client Asset Management—First Quarter Highlights
Private Client Asset Management— First Quarter Highlights m Strong net inflows for quarter and twelve months: m Financial advisor productivity (2 years +) continues to improve = Footprint expansion on plan @ Financial Advisors increased 14% to 220 © 3new offices to open in 2005 > Atlanta, Denver and
Slide 21: Institutional Research Services—First Quarter Highlights
Institutional Research Services— First Quarter Highlights ® Lower US. revenues © Decrease in pricing and market share, partially offset by higher market volume = Expanded European research team @ Added 7 new analysts m 2new US. research launches AllianceCapital AX
Slide 22: AllianceCapital A\
AllianceCapital A\
Slide 23: Market Environment
Market Environment SSP 500 MSCI EAFE MSCI World MSC! Emerging Markets Russell 1000 Growth Russell 1000 Value Lehman Aggregate Bond Fein soi 3,05 2005: (2.1)% (0.2) (11) 19 (1) on (0.5) ‘One Year 6.7% 15.4 10.6 17.0 12 13.2 14 Annualized Three Years 2.7% 16 64 Cumulative Three 8.5% 39.1 20.6 698 (24)
Slide 24: Relative Performance: Institutional Value Equity (After Fees)
Relative Performance: Institutional Value Equity (After Fees)\") Institutional Equity Composites vs. Benchmarks Us. E Bernstein Strategic Diversified International Global Value?) Valuel?) Valuel*) Value) 200510 @H)% oo% 1.6% 1.5% onevear G9) 63 +63 +47 a7 Three Years (1.2) +02 +88 +54 4133 Five Year
Slide 25: Relative Performance: Institutional Growth Equity (After Fees)
Relative Performance: Institutional Growth Equity (After Fees)!") Institutional Equity Composites vs. Benchmarks Global Emerging LargeCap U.S. Mid Cap SmallCap IntlLg Cap Research Markets Growth?) —Growth®) Growth Growth) Growth®) —Growth®) Growth’! 200510 24% 27% aoa% 0.4% 05% (05)% 03% onevear (1.
Slide 26: Relative Performance: Institutional Fixed Income (After Fees)
Relative Performance: Institutional Fixed Income (After Fees)(") Institutional Fixed Income Composites vs. Benchmarks Core Corp High Emerging Core Plus® Mortgage Bonds Yield®)——Globaf®) Markets”) 200510 40.2% one 00% 00% 10.1% 00% onevear +04 2 108 a3) 40 4. ‘Three Years: (0.41) +07 +07 G4) +05 +27
Slide 27: Relative Performance: Retail Value Equity (After Fees)
Relative Performance: Retail Value Equity (After Fees)(") Retail Mutual Funds vs. Lipper Averages ‘Small Large Cap Growth & Cap Intl Global Valuel®) Income?) Value Valuel®) = Value!) Balanced”) 2005:10 40.2% 0n% 05% 10.9% +0.2% 10.7% One Year +04 5) 9) +43 4 19 Three Years +26 an 16 +45 oD +24 Five
Slide 28: Relative Performance: Retail Growth Equity (After Fees)
Relative Performance: Retail Growth Equity (After Fees)\") Retail Mutual Funds vs. Lipper Averages Global LargeCap Growth tid Cap SmallCap—_Growth Growth® — MultiCap®) Growth Growth! —_ Research®) 200510 2.1) % 25% oa% any 1.0% Onevear (1.2) an 8) 05, “4 02) Three Years (2.5) +03 +40 04) - 43 Five Y
Slide 29: Relative Performance: Retail Fixed Income (After Fees)
Relative Performance: Retail Fixed Income (After Fees)\") Retail Fixed Income Funds vs. Lipper Averages Americas Emerging Corporate Gov't. Market High Bond?) Income®) Debt” Yield) 2005:10 106% © -+0.2% 03% +0.2% Onever +35 6a) @2 a0) Tnreeveas +13 “o +34 a2 Five Years +011 +08 43 aa tovers 17 164 +2
Slide 30: Absolute Performance: Private Client (After Fees)
Absolute Performance: Private Client (After Fees)(") Annualized 1.005, AYear 3Year SYear All Balanced Accounts® 2.0)% 45.3% 45.9% 46.1% Global Balanced Benchmark (1.2) +58 +66 +1.0 le omen comW ote MCCNCN WR NEGA, NE Wotan man eg cépom Anas ex TaGWonyCN OFA cpt Qmemetputmace ccamprts tpasersdmmrhmrm
Slide 31: Changes in Assets Under Management by Channel
Changes in Assets Under Management by Channel ‘Three Months Ended March 31, 2005, in $ Millions Institutional Private Inv Mamt Retail Client Total Beginning of Period $911,258 $169,552 $69,954 $598,764 Sales/New accounts 9,660 6,734 2,984 19,348 Redemptions/Terminations (4372) (6.441) (696) (11.403)
Slide 32: Changes In Assets Under Management by Channel
Changes In Assets Under Management by Channel ‘Twelve Months Ended March 31, 2005 In $ Millions Beginning of Period Sales/New accounts Redemptions/Terminations Cash flow Unreinvested dividends Net long-term inflows (outflows) Net cash management Market appreciation End of Period 9% Total (end of per
Slide 33: First Quarter Revenues by Distribution Channel
First Quarter Revenues by Distribution Channel Institutional Investment Management Retail Private Client Institutional Research Services Other Total Percent AllianceCapital AX
Slide 34: Trends in Headcount
reno ame Ree Trends in Headcount 4550 4,450 4,350 4,250 4.150 4,050 3,950 4406 4,446 4408 4.4034 394 401 28 2002 9531 003 6130 7131 301 204 930 1031 1473012731 2005 AllianceCapital AX
Slide 35: Consolidated Balance Sheet
a Alliance Capital Consolidated Balance Sheet (Qn $ thousands) March 31,2005 = December 31, 2004. ee Unaudited) Cash and investments $1,242,297 $1,253,690 Cash and securities, segregated 1,690,316 1,489,041 Receivables, net 2,359,545 2,194,226 Goodwill, net 2.876657 2,876,657 intangible assets, net
Slide 36: Consolidated Cash Flow
Alliance Capital Consolidated Cash Flow (in $ thousands, Unaudited) Cash Flows From Operating Activities: Net income Non-cagh teme: Amortization of deterred sales cammscions ‘amortization of deterred compensation Other deprecation and amortization ther, net Changes in assets and lisbities Net cash p
Slide 37: Alliance Capital Investment Management Services
reno ame Ree Alliance Capital Investment Management Services Alliance Capital provides diversified investment management and related services globally to a broad range of clients: 1. Institutional Investment Management Services consists of investment management services to unaffiliated parties such
Slide 38: Alliance Capital Investment Management Services (continued)
Alliance Capital Investment Management Services (continued) 3.Private Client Services consists of investment management services provided to high net worth individuals, trusts and estates, charitable foundations, partnerships, private and family corporations and other entities by means of: @ separat
Slide 39: Searchable text section of graphics shown above
Searchable text section of graphics shown above [ GRA PHIC] [LOGO] www.alliancecapital.com April 28, 2005 First-Quarter 2005 Review Lewis A. Sanders Gerald M. Lieberman Chairman & Chief Executive Officer President & Chief Operating Officer Any forecasts or opinions in this material may not be realiz
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