Eaton Vance — Merger or Acquisition (January 2021)
18 slides from Eaton Vance's merger presentation, Jan 21, 2021
Slide 1: Morgan Stanley at an Inflection Point: The Next Decade of Growth
Morgan Stanley at an Inflection Point: The Next Decade of Growth James P. Gorman, Chairman and Chief Executive Officer January 20, 2021
Slide 2: Notice
Notice 2 This presentation by Morgan Stanley is copyrighted and proprietary, and all rights are reserved . Any recording, rebroadcast or other use of this presentation, in whole or in part, without the prior written consent of Morgan Stanley is strictly prohibited . The presentation has been prepare
Slide 3: Enhance Workplace, Service Full Spectrum of Wealth, Create Leading Asset Manager
3 (2019) Enhance Workplace Offering (2020) Service Full Spectrum of Wealth (Expected to close 2Q 2021) Create Leading Asset Manager Opportunistic Acquisitions Accelerate Growth The End Notes are an integral part of this Presentation. See slides 11 - 16 at the back of this presentation for informatio
Slide 4: Three Connected World-Class Businesses of Scale
Three Connected World - Class Businesses of Scale… 4 20% 35% 2014 2020 Pre - Tax Margin (%) (1) 2.0 4.0 2014 2020 Clients Assets ($ Tn ) 0.4 1.4 2014 Pro Forma Assets Under Management ($ Tn ) (2)(3) Institutional Securities Wealth Management Investment Management $26Bn 2020 Net Revenues $19Bn 2020 N
Slide 5: Continue to Gain Share
…Continue to Gain Share 5 1 Increase Share of Profits Across Competitors in WM Revenue Capture Across ISG Industry Leading Organic Growth in IM 25% 21% (1%) Morgan Stanley Eaton Vance Peer Average Morgan Stanley ISG Wallet Share (%) (1)(2)(3) Long - Term Net Flows (%) (5)(6) ( 2017 – 3Q 2020) Pre -
Slide 6: Investment Management: Premier Global Asset Manager Delivers Value to Clients
Investment Management: Premier Global Asset Manager Delivers Value to Clients 6 2 $1.4Tn Pro Forma AUM (1)(2) Private and Public Alpha Solutions Fixed Income & Liquidity ~65% ~35% MSIM Gross Sales (3) ~95% ~5% Eaton Vance Gross Sales (3) North America International Leadership in Customization, Susta
Slide 7: Unmatched Reach of Wealth and Investment Management Creates Growth and High Returns
Unmatched Reach of Wealth and Investment Management Creates Growth and High Returns 7 3 Top 5 Franchise Providing Leading Advice to our Clients $5Tn+ of Client Assets Wealth Management and Investment Management Client Assets ($ Tn ) (1) 2.4 5.4 2014 Pro Forma 8.7 6.7 6.2 5.4 3.7 3.7 3.5 3.5 3.2 2.7
Slide 8: Realize Acquisition Synergies from E*TRADE and Eaton Vance
8 Realize Acquisition Synergies from E*TRADE and Eaton Vance 3 Funding Synergies (2) Cost Synergies (1) $150MM from E*TRADE at announcement Increased to $250MM $400MM from E*TRADE $150MM from Eaton Vance $550MM in Total Cost Synergies Cost and Funding Synergies Revenue Opportunities E*TRADE Eaton Va
Slide 9: Demonstrate Operating Leverage and Increase Profitability
Demonstrate Operating Leverage and Increase Profitability 9 4 79% 74% 72% 70% 2014 2016 2018 2020 Firm Expense Efficiency Ratio (%) (1) 7.2 8.8 11.2 14.6 2014 2016 2018 2020 Pre - Tax Profit ($ Bn) (2) Enhances Profit Expansion Improvement in Efficiency Ratio Integration - Related Expenses The End
Slide 10: Execute on the Next Phase of Shareholder Value
Execute on the Next Phase of Shareholder Value 2 - Year Objectives (1) 10 WM Pre - Tax Margin (2) Firm Efficiency Ratio (3) ROTCE (4) Longer - Term Aspirations (1) 26 – 30% 69 – 72% 14 ‒ 16% 30%+ <70% 17%+ The End Notes are an integral part of this Presentation. See slides 11 - 16 at the back of thi
Slide 11: End Notes
End Notes 11 The Firm’s financial presentations, earnings releases, earnings conference calls, and other communications may include certain metrics, including non - GAAP financial measures, which we believe to be useful to us, investors, analysts and other stakeholders by providing further transpare
Slide 12: End Notes
End Notes 12 These notes refer to the financial metrics and/or defined term presented on Slide 4 1. Pre - Tax Margin for 2014 is adjusted to exclude the aggregation of the positive DVA adjustment and the negative Credit Crisis Litigation and Discretionary Incentive Compensation Actions adjustments,
Slide 13: End Notes
End Notes 13 These notes refer to the financial metrics and/or defined term presented on Slide 5 5. Long - Term Net Flows represents cumulative long - term net flows over 15 quarters from calendar 1Q 2017 to 3Q 2020 as a percentage of beginning Assets Under Management for 2017 (as of calendar 4Q 201
Slide 14: End Notes
End Notes 14 These notes refer to the financial metrics and/or defined term presented on Slide 6 1. Pro Forma Assets Under Management represents the addition of Morgan Stanley’s Investment Management and Eaton Vance’s assets under management. Morgan Stanley’s Investment Management assets under manag
Slide 15: End Notes
End Notes 15 These notes refer to the financial metrics and/or defined term presented on Slide 7 1. Wealth Management and Investment Management Client Assets represents Wealth Management client assets and Investment Management assets under management based on the 2014 Form 10 - K and the Morgan Stan
Slide 16: End Notes
End Notes 16 These notes refer to the financial metrics and/or defined term presented on Slide 10 1. Firm’s 2 - Year Objectives and Longer - Term A spirations include Eaton Vance. The Eaton Vance acquisition is still pending and subject to customary closing conditions. 2. Pre - Tax Margin represents
Slide 17: Important Information about the Proposed Transaction with Eaton Vance and Where to Find It
Notice 17 Important Information about the Proposed Transaction with Eaton Vance and Where to Find It In connection with the proposed transaction between Morgan Stanley and Eaton Vance Corp . (“Eaton Vance”), Morgan Stanley and Eaton Vance will file relevant materials with the Securities and Exchange
Slide 18: Forward-Looking Statements
Notice 18 Forward - Looking Statements This presentation contains “forward - looking statements” within the meaning of the federal securities laws, including Section 27 A of the Securities Act of 1933 , as amended, and Section 21 E of the Securities Exchange Act of 1934 , as amended . In this contex