Alliancebernstein Holding L.p. · NYSE:AB
Alliancebernstein Holding L.p — Q4 2009 Earnings Presentation
38 slides from Alliancebernstein Holding L.p's earnings presentation, Feb 12, 2010
Slide 1: Fourth Quarter 2009 Review
Exhibit 99.02 February 11, 2010 Fourth Quarter 2009 Review Peter S. Kraus Chairman & Chief Executive Officer David A. Steyn Chief Operating Officer Robert H. Joseph, Jr. Chief Financial Officer
Slide 2: Cautions Regarding Forward-Looking Statements
Cautions Regarding 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 fac
Slide 3: Relative Performance: Value Equity
Relative Performance: Value Equity Institutional Equity Composites vs. Benchmarks Percent Global International Value US Diversified Value Value 4Q09 1 Year 3 Years 5 Years 10 Years As of December 31, 2009 Performance is preliminary. The information in this table is provided solely for use in connect
Slide 4: Relative Performance: Growth Equity
Relative Performance: Growth Equity Institutional Equity Composites vs. Benchmarks Percent US Large Cap Global Research International Large Cap Growth Growth Growth 4Q09 1 Year 3 Years 5 Years 10 Years As of December 31, 2009 Performance is preliminary. The information in this table is provided sole
Slide 5: Relative Performance: Blend Strategies
Relative Performance: Blend Strategies Institutional Blend Strategies Composites vs. Benchmarks* Percent Global International Emerging Markets Blend Blend Blend 4Q09 1 Year 3 Years 5 Years 10 Years N/A N/A N/A As of December 31, 2009 Performance is preliminary. The information in this table is provi
Slide 6: Relative Performance: Fixed Income
Relative Performance: Fixed Income Institutional Fixed Income Composites vs. Benchmarks* Percent Corporate Strategic Core Global Plus Bonds Plus 4Q09 1 Year 3 Years 5 Years 10 Years N/A N/A As of December 31, 2009 Performance is preliminary. The information in this table is provided solely for use i
Slide 7: Net Flows By Investment Service
Net Flows By Investment Service In US dollars billions Total: ($20.2) ($24.0) ($12.9) ($16.8) (1) (1) (2) (1) Certain client assets were reclassified among investment services to more accurately reflect how these assets are managed by our firm. (2) Includes index, structured, asset allocation servic
Slide 8: Net Flows By Distribution Channel
Net Flows By Distribution Channel In US dollars billions Total: ($20.2) ($24.0) ($12.9) ($16.8) AllianceBernstein.com 4Q09 Earnings Call 8 Presentation
Slide 9: David A. Steyn
AllianceBernstein Fourth Quarter 2009 Review David A. Steyn Chief Operating Officer AllianceBernstein.com 4Q09 Earnings Call 9 Presentation
Slide 10: Private Client Highlights
Private Client Highlights < Gross sales and net flows continued to improve sequentially < Ended 2009 with 292 Financial Advisors and anticipate growing FA staff by high single digits in 2010 < 1Q10 launch of a dynamic approach to managing risk that adjusts clients’ asset allocation in response to fo
Slide 11: Retail Highlights
Retail Highlights < Business momentum continued: = Q409 gross sales were up 33% and net flows improved by $1.5 billion sequentially = Mutual fund flows remained positive, fueled by non-US sales < 67% of mutual funds (asset-weighted) were in top 50% of peer groups for 4Q09; 54% for full year 2009 < 2
Slide 12: Institutions Highlights
Institutions Highlights < 4Q09 net outflows increased 56% sequentially, including cash flows of approximately $5 billion from a non-actively managed account = More interest from sovereign funds in fixed income offerings = Pipeline of won but unfunded mandates increased slightly < 2010 strategic init
Slide 13: Bernstein Research Services Highlights
Bernstein Research Services Highlights < 4Q09 revenue down 8% year-over-year and 1% sequentially; recent investments in new services—European electronic trading, equity derivatives and equity capital markets (“ECM”)—made important contributions < Full year revenue down 8% compared to record 2008 due
Slide 14: Five Quarter Headcount Trend
Five Quarter Headcount Trend 4,997 4,761 4,654 4,544 4,369 AllianceBernstein.com 4Q09 Earnings Call 14 Presentation
Slide 15: Fourth Quarter 2009 Net Income
Fourth Quarter 2009 Net Income In US dollars millions (excluding per Unit amounts) 4Q 4Q Percent FY FY Percent 2009 2008 Change 2009 2008 Change Net Revenues $782 $581 35% $2,907 $3,514 -17% <Slide 15 Operating Expenses 582 509 14% 2,316 2,589 -11% <Slides 16 and 17 Operating Income 200 72 180% 591
Slide 16: Fourth Quarter 2009 Revenues
Fourth Quarter 2009 Revenues In US dollars millions 4Q 4Q Percent Revenues 2009 2008 Change Base Fees $527 $513 3% <Higher Retail offset by lower Private Client and Institutions Performance Fees 16 1 n/m <Higher hedge fund-related fees Distribution 81 64 25% <Higher average mutual fund AUM Bernstein
Slide 17: Fourth Quarter 2009 Operating Expenses
Fourth Quarter 2009 Operating Expenses In US dollars millions 4Q 4Q Percent Expenses 2009 2008 Change Compensation & Benefits $323 $264 22% <Slide 17 Promotion & Servicing 122 107 14% <Higher distribution plan payments General & Administrative 131 132 -1% <Lower technology and occupancy costs offset
Slide 18: Fourth Quarter 2009 Compensation & Benefits
Fourth Quarter 2009 Compensation & Benefits In US dollars millions 4Q 4Q Percent 2009 2008 Change Base Compensation $116 $161 -28% <Lower severance - down $26M to $12M <Lower salaries - down $18M to $103M Incentive Compensation: Cash 58 0 n/m <4Q09 bonus accrual in-line with 1Q09-3Q09 Deferred Compe
Slide 19: Six-Quarter Deferred Compensation Net P&L Trend
Six-Quarter Deferred Compensation Net P&L Trend In US dollars millions 3Q 4Q 1Q 2Q 3Q 4Q 2008 2008 2009 2009 2009 2009 Revenues Investment Gains (Losses) ($123) ($132) ($28) $63 $71 $15 Dividends 1 8 1 2 1 4 Total Revenues ($122) ($124) ($27) $65 $72 $19 Expenses Amortization of Original Awards $46
Slide 20: AllianceBernstein Holding Financial Results
AllianceBernstein Holding Financial Results In US dollars millions (except per Unit amounts) 4Q 4Q Percent FY FY Percent 2009 2008 Change 2009 2008 Change AllianceBernstein Net Income Attributable to AllianceBernstein $192 $92 108% $556 $839 -34% Unitholders Weighted Average Equity Ownership Interes
Slide 21: Q&A
Q&A AllianceBernstein.com 4Q09 Earnings Call 21 Presentation
Slide 22: Appendix
Appendix AllianceBernstein.com 4Q09 Earnings Call 22 Presentation
Slide 23: Relative Performance: Institutional Value Equity
Relative Performance: Institutional Value Equity Institutional Equity Composites vs. Benchmarks Periods Ended December 31, 2009 4Q One Three Five 10 Service 2009 Year Years Years Years Benchmark US Diversified Value (0.2) 1.4 (2.7) (2.0) 0.8 Russell 1000 Value US Strategic Value (1.7) 1.8 (6.7) (2.9
Slide 24: Relative Performance: Institutional Growth Equity
Relative Performance: Institutional Growth Equity Institutional Equity Composites vs. Benchmarks Periods Ended December 31, 2009 4Q One Three Five 10 Service 2009 Year Years Years Years Benchmark Global Research Growth 1.7 2.1 (5.3) (3.0) 0.3 MSCI World (net) US Large Cap Growth (1.8) (0.2) (0.2) 0.
Slide 25: Relative Performance: Institutional Blend Strategies
Relative Performance: Institutional Blend Strategies Institutional Blend Strategies Equity Composites vs. Benchmarks* Periods Ended December 31, 2009 4Q One Five 10 Service 2009 Year Three Years Years Years Benchmark Global Blend Strategies 0.7 4.6 (5.7) (2.4) N/A MSCI World International Blend Stra
Slide 26: Relative Performance: Institutional Fixed Income
Relative Performance: Institutional Fixed Income Institutional Fixed Income Composites vs. Benchmarks* Periods Ended December 31, 2009 4Q One Three Five 10 Service 2009 Year Years Years Years Benchmark Corporate Bonds 0.6 5.0 (0.3) (0.1) 0.2 Custom Corporate Index Strategic Core Plus 1.5 12.4 (0.1)
Slide 27: Absolute Performance: Private Client
Absolute Performance: Private Client Periods Ended December 31, 2009 4Q One Three Five 10 Service 2009 Year Years Years Years Fully Diversified Simulation* 2.9 23.2 (3.7) 1.7 3.1 S&P 500 6.0 26.5 (5.6) 0.4 (0.9) Performance is preliminary. As of December 31, 2009 Investment performance of composites
Slide 28: Relative Performance: Retail Value Equity
Relative Performance: Retail Value Equity Retail Mutual Funds vs. Lipper Averages Periods Ended December 31, 2009 4Q One Three Five 10 Service 2009 Year Years Years Years Lipper Average International Value (0.2) 4.7 (5.6) (2.1) N/A International Large Cap Value Growth & Income(1) 0.2 (2.2) (1.3) (1.
Slide 29: Relative Performance: Retail Growth Equity
Relative Performance: Retail Growth Equity Retail Mutual Funds vs. Lipper Averages Periods Ended December 31, 2009 4Q One Three Five 10 Service 2009 Year Years Years Years Benchmark or Lipper Average Global Growth 0.3 (1.4) (6.5) (3.9) N/A Global Large Cap Growth U.S. Large Cap Growth(1) 4.3 6.1 5.8
Slide 30: Relative Performance: Retail Fixed Income
Relative Performance: Retail Fixed Income Retail Fixed Income Funds vs. Peer Group Averages Periods Ended December 31, 2009 4Q One Three Five 10 Service 2009 Year Years Years Years Peer Group Average Morningstar Fixed Income Global Global High Yield Portfolio 2.1 19.0 1.6 3.3 0.4 High Yield American
Slide 31: Relative Performance: Wealth Strategies
Relative Performance: Wealth Strategies Retail Mutual Funds vs. Morningstar Averages Periods Ended December 31, 2009 4Q One Three Five 10 Service 2009 Year Years Years Years Morningstar Average Conservative Wealth (0.6) (1.7) (0.5) 0.0 0.5 Conservative Allocation Balanced Wealth - 6.1 (0.5) 0.6 0.7
Slide 32: Fourth Quarter 2009 Advisory Fees
Fourth Quarter 2009 Advisory Fees In US dollars 4Q 4Q Percent 2009 2008 Change Ending AUM (billions) $496 $462 7% <Down $2B sequentially Average AUM (billions) $494 $497 -1% <Up $20B (4%) sequentially By Fee Type (millions): Base Fees $527 $513 3% <Higher Retail offset by lower Private Client and In
Slide 33: Consolidated Balance Sheet
Consolidated Balance Sheet In US dollars millions Assets Dec 31, 2009 Dec 31, 2008 Cash and cash equivalents $614 $553 Cash and securities, segregated 985 2,572 Receivables, net 1,099 1,028 Investments Related to deferred compensation 401 306 Other 374 272 Goodwill, net 2,893 2,893 Intangible assets
Slide 34: Consolidated Statement of Cash Flows
Consolidated Statement of Cash Flows In US dollars millions Twelve Months Ended Dec 31, 2009 Dec 31, 2008 Cash Flows From Operating Activities: Net Income $579 $848 Non-cash items: Amortization of deferred sales commissions 55 79 Amortization of non-cash deferred compensation 73 66 Depreciation and
Slide 35: 12-month AUM Rollforward by Distribution Channel
12-month AUM Rollforward by Distribution Channel In US dollars billions Institutions Retail Private Client Total Beginning of Period $291.4 $101.6 $69.0 $462.0 Sales/New accounts 16.2 23.0 7.5 46.7 Redemptions/Terminations (56.2) (25.8) (8.0) (90.0) Cash flow (17.7) (5.4) (6.1) (29.2) Unreinvested d
Slide 36: 12-month AUM Rollforward by Investment Service
12-month AUM Rollforward by Investment Service In US dollars billions Value Growth Fixed Equity Equity Income(1) Other(1)(2) Total Beginning of Period $172.4 $88.3 $164.0 $37.3 $462.0 Sales/New accounts 8.7 6.4 24.6 7.0 46.7 Redemptions/Terminations (46.3) (22.2) (19.9) (1.6) (90.0) Cash flow (11.8)
Slide 37: AUM by Region
AUM by Region In US dollars billions As of December 31, 2009 Institutions Retail Private Client $300.0 $120.7 $74.8 AllianceBernstein.com 4Q09 Earnings Call 37 Presentation
Slide 38: ALLIANCEBERNSTEIN
/B ALLIANCEBERNSTEIN
AllianceBernstein Holding — Q4 2009 Earnings Presentation on 6ix