Morgan Stanley · NYSE:MS
Morgan Stanley — Investor Presentation (October 2001)
28 slides from Morgan Stanley's investor presentation, Oct 8, 2001
Slide 1: Morgan Stanley International European Overview
Morgan Stanley International European Overview October 8, 2001 This slide is part of a presentation by Morgan Stanley and is intended to be viewed as part of that presentation. The presentation is based on information generally available to the public and does not contain any material, non-public in
Slide 2: Notice
Morgan Stanley European Overview NOTICE This presentation by Morgan Stanley is based on information generally available to the public and does not contain any material, non-public information. The presentation has been prepared solely for informational purposes and is neither an offer to sell nor th
Slide 3: Our Business in Europe
Morgan Stanley European Overview Our Business in Europe Full Line of Financial Services Morgan Stanley International Asset Consumer Securities Private Clients Management Banking Group Investment Fixed Asset Private Banking Equity Income PWM Management Equity Group This slide is part of a presentatio
Slide 4: European Presence
Morgan Stanley European Overview European Presence UK (1977) Spain (1993/1999) Switzerland (1986) Germany (1987) France (1990) Ireland (1998) Italy (1989) Netherlands (1997) Russia (1994) Luxembourg (1989) Sweden (1999) South Africa (1994) This slide is part of a presentation by Morgan Stanley and i
Slide 5: Revenues and PBT
Morgan Stanley European Overview Revenues and PBT US$ MM 5,000 5,054 4,000 3,000 3,848 2,867 2,000 1,757 1,000 1,429 1,646 1,364 1,146 328 399 0 1996 1997 1998 1999 2000 P.B.T. Revenues Source Morgan Stanley Annual Reports This slide is part of a presentation by Morgan Stanley and is intended to be
Slide 6: The Competitive Landscape - Europe
Morgan Stanley European Overview The Competitive Landscape - Europe January 1,1998 to September 30, 2001 Completed European M&A European Equity Offerings Market Share % Market Share % 50 16 14.3 39.3 12.6 40 35.4 10.8 12 10.4 30 24.4 23.2 8 20 4 10 0 0 GS MS ML JPMC GS MS UBSW ML Source Thomson Fina
Slide 7: Leadership and Creativity: Awards 2000 - 2001
Morgan Stanley European Overview Leadership and Creativity: Awards 2000 - 2001 • Bond House of the Year - IFR • Best Investment Bank for Securitisation - Structured Finance International • Asset Backed Trading House of the Year - Structured Finance International • Energy and Commodity Derivatives Ho
Slide 8: Near-term Pressure
Morgan Stanley European Overview Near-term Pressure Industry Data for 2000 YTD -v- 2001 YTD (1) European Securities Industry UK Asset Management Industry M&A Volume AUM 54.3% 7.0% Equity UW 57.9% Debt UW 21.1% Notes 1. As of October 5, 2000 and 2001 for Securities data; as at June 30, 2000 and 2001
Slide 9: European Markets
Morgan Stanley European Overview European Markets New Markets - 2000 Bond Trading Equity Trading National MTS (France, Portugal, Belgium) BBT - Europe Derivatives Commodities/Foreign Exchange This slide is part of a presentation by Morgan Stanley and is intended to be viewed as part of that presenta
Slide 10: European M&A
Morgan Stanley European Overview European M&A Announced Deals US$ Bn 1,600 1,521 1,393 1,400 1,200 1,000 818 800 556 600 537 380 400 200 0 1996 1997 1998 1999 2000 Q1-3 2001 Friendly Neutral Hostile Source Thomson Financial Securities Data This slide is part of a presentation by Morgan Stanley and i
Slide 11: European Financial Services Industry Consolidation
Morgan Stanley European Overview European Financial Services European Industry Consolidation 2000 - 2001(1) / / / / / / / / / / DONALDSON, / LUFKIN & JENNETTE / / / / / / 2,421 deals totalling $392 billion Source Thomson Financial Securities Data Note (1) As of October 5, 2001 This slide is part of
Slide 12: Equity Markets Growth
Morgan Stanley European Overview Equity Markets Growth New Equity Issuance Volumes US$ Bn 145 140 127 120 102 98 100 80 66 62 60 46 40 20 0 1995 1996 1997 1998 1999 2000 Q1-3 2001 UK Germany France Italy Spain Source Thomson Financial Securities Data Note (1) New issues includes all issues priced/is
Slide 13: Securities Trading Growth
Morgan Stanley European Overview Securities Trading Growth Average Combined Daily Turnover for LSE, Deutsche Börse, Euronext and Milan Stock Exchange US$ Bn 30 30 25 25 CAGR 3-year 21.3% 22 20 5-year 20.1% 15 14 14 10 10 8 5 0 1995 1996 1997 1998 1999 2000 H1 2001 UK Germany France Italy Source Lond
Slide 14: Market Capitalisation
Morgan Stanley European Overview Market Capitalisation As a % of GDP Year-end 2000, % 150 125 100 75 141 50 86 76 67 25 0 US GDP EMU Germany France Source MSCI, IMF This slide is part of a presentation by Morgan Stanley and is intended to be viewed as part of that presentation. The presentation is b
Slide 15: Debt Markets Growth
Morgan Stanley European Overview Debt Markets Growth International Corporate Transactions >€750 MM 12 Months Moving Average by Value 20,000 Deutsche Telekom EMU Launch 15,000 10,000 5,000 0 1996 1997 1998 1999 2000 2001 Source Capital Data Bondware This slide is part of a presentation by Morgan Stan
Slide 16: Debt Markets Growth
Morgan Stanley European Overview Debt Markets Growth Outstanding Bonds by Rating Eurozone 1999 Eurozone 2001 US 2001 BBB/A BBB/A BBB/A 9% 23% 78% AA/AAA AA/AAA AA/AAA 77% 22% 91% Source Capital Data Bondware This slide is part of a presentation by Morgan Stanley and is intended to be viewed as part
Slide 17: Debt Markets Growth
Morgan Stanley European Overview Debt Markets Growth European Environment Debt Markets Growth GDP € Bonds € MM 10,000 10,000 8,000 8,000 6,111 6,000 6,000 9,732 9,349 3,823 4,000 4,111 4,000 971 2,000 2,000 2,852 2,000 0 0 US GDP EU GDP US Bonds EU Bonds Government Bonds Non-Government Bonds This sl
Slide 18: Asset Management: Overview by Country
Morgan Stanley European Overview Asset Management Overview by Country Total Assets, 2000 $Bn 3000 2976 2877 2750 2500 2250 2000 1750 1500 1250 1020 977 1000 800 750 500 320 250 193 183 0 UK Germany France Italy Netherlands Scandinavia Switzerland Spain Source: Morgan Stanley Equity Research Estimate
Slide 19: Asset Management: High Net Worth Individual Wealth
Morgan Stanley European Overview Asset Management High Net Worth Individual Wealth By Region Individual Wealth of High Net Worth Individuals US$ Trillion 40 40 1 1 2 35 5 30 28 26 1 1 7 1 25 1 1 1 22 4 1 3 1 20 1 3 5 11 5 15 4 7 7 10 6 13 5 8 9 7 0 1998 1999 2000 2005E North America Europe Asia Lati
Slide 20: Asset Management: Projected Retirement Funding Gaps
Morgan Stanley European Overview Asset Management Projected Retirement Funding Gaps 1998E to 2002E % 100 93 96 80 60 42 38 40 20 0 0 -9 -13 US UK Italy France-2 Germany Spain -20 -16 -22 -40 -30 -32 -60 -80 -75 -77 -100 -109 -120 -114 -115 -127 -140 1998E retirement shortfall after 1st, 2002E retire
Slide 21: Asset Management: Outlook for Key Products
Morgan Stanley European Overview Asset Management Outlook for Key Products Annual New Flows into European Equity by Investment Vehicle by Year % 900 890 850 800 750 700 676 650 600 550 500 481 454 450 400 350 317 289 300 248 250 220 204 201 200 153 150 131 135 132 87 86 92 100 77 70 60 50 0 Mutual F
Slide 22: Asset Management: Market Overview
Morgan Stanley European Overview Asset Management Market Overview Retail Distribution % 100% 5 2 1 1 1 7 3 11 10 5 10 14 6 13 33 80% 11 13 12 60% 50 88 90 91 86 40% 75 34 70 2 20% 31 25 0% UK Retail France Netherlands Switzerland Retail Retail Retail Banks Brokers Insurance Agents True Direct Other
Slide 23: European Household Assets by Products
Morgan Stanley European Overview European Household Assets by Products Personal Financial Assets 1999 % 100 2 10 90 21 29 31 16 35 80 70 3 16 60 23 37 50 52 40 46 25 30 56 20 37 26 10 21 16 0 UK Germany France US (1) Japan Total Asset Value (€ Trillion) 4.5 3.2 3.0 18.1 12.2 Financial Assets per Cap
Slide 24: International Private Client Group
Morgan Stanley European Overview International Private Client Group Morgan Stanley European Capabilities Asset Management • Mutual Funds • Sub-Advisory AB Asesores • Spain • Portugal Quilter • United Kingdom PWM • London, Geneva, Madrid, Milan, Zurich, Amsterdam • Investment Group This slide is part
Slide 25: International Private Client Group
Morgan Stanley European Overview International Private Client Group United Kingdom Spain December 2000 - Morgan Stanley 1998 - Morgan Stanley acquired acquires Quilter Holding Limited largest independent brokerage house in Spain • Private client and middle-market • Over 375 Financial Advisers In 45
Slide 26: The European Opportunity
Morgan Stanley European Overview The European Opportunity Secular Fundamentals Remain • Equification • “Debtification” Europe is one of the Firm’s • Restructuring great global opportunities • Pension Reform • Fiscal Reform This slide is part of a presentation by Morgan Stanley and is intended to be
Slide 27: Implications for Morgan Stanley Europe
Morgan Stanley European Overview Implications for Morgan Stanley Europe Clients • Increased focus on strategic clients Results • Increased focus on financial results Investment • Continued investment in strategic Obsessive areas client focus Focus will be key • Focus on productivity, efficiency and
Slide 28: Requirements for Success
Morgan Stanley European Overview Requirements for Success What are the Requirements for Success? • Intellectual capital • Scale • Obsessive client service • Visionary management • Global infrastructure • Risk management Morgan Stanley is Well-positioned • Manufacturer and Distributor • Leading brand
Morgan Stanley — Investor Presentation (October 2001) on 6ix