Alliancebernstein Holding L.p. · NYSE:AB
Alliancebernstein Holding L.p — Q2 2008 Earnings Presentation
42 slides from Alliancebernstein Holding L.p's earnings presentation, Jul 24, 2008
Slide 1: Second Quarter 2008 Earnings Presentation
Gerald M. Lieberman President & Chief Operating Officer Lewis A. Sanders Chairman & Chief Executive Officer Any forecasts in this material may not be realized. Information or opinions should not be construed as investment advice. July 23, 2008
Slide 2: 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 factors that could cause actual results to differ
Slide 3: Market Performance - US
*12 months ending June 30, 2008. Market Performance - US
Slide 4: Market Performance - Non-US
*12 months ending June 30, 2008. Source: MSCI (Morgan Stanley Capital International). Market Performance - Non-US
Slide 5: Relative Investment Performance Summary: 2Q08
< Most Value services lagged benchmarks < Most Growth services outperformed benchmarks < Fixed Income generally outperformed benchmarks < Alternative Investment services provided mixed absolute returns, generally in-line with the major global indices, with pockets of outperformance Relative Investme
Slide 6: Changes in Assets Under Management by Channel (Three Months)
Three Months Ended June 30, 2008 $ Billions NOTE: Percentages are calculated using AUM rounded to the nearest million. Changes in Assets Under Management by Channel
Slide 7: Changes in Assets Under Management by Channel (Twelve Months)
Twelve Months Ended June 30, 2008 $ Billions NOTE: Percentages are calculated using AUM rounded to the nearest million. Changes in Assets Under Management by Channel
Slide 8: Changes in AUM by Investment Service (Three Months)
Three Months Ended June 30, 2008 $ Billions NOTE: Percentages are calculated using AUM rounded to the nearest million. Changes in Assets Under Management by Investment Service
Slide 9: Changes in AUM by Investment Service (Twelve Months)
Twelve Months Ended June 30, 2008 $ Billions NOTE: Percentages are calculated using AUM rounded to the nearest million. Changes in Assets Under Management by Investment Service
Slide 10: Institutional Investments Highlights: 2Q08
< Global and International services accounted for 91% of new sales < Fixed Income represented nearly 30% of gross sales < Pipeline down slightly versus 1Q08 at $15 billion (1) Transfers of certain client accounts were made among distribution channels resulting from changes in how these accounts are
Slide 11: Retail Highlights: 2Q08
< Net outflows driven by: Ø Both US and non-US clients Ø Primarily Equity services < Net outflows slowed versus 1Q08 due to lower redemptions (1) Transfers of certain client accounts were made among distribution channels resulting from changes in how these accounts are serviced by the firm. NOTE: Pe
Slide 12: Private Client Highlights: 2Q08
(1) Transfers of certain client accounts were made among distribution channels resulting from changes in how these accounts are serviced by the firm. NOTE: Percentages are calculated using AUM rounded to the nearest million. Private Client Highlights: 2Q08 < Modest net outflows - - first quarter in
Slide 13: Institutional Research Services Highlights: 2Q08
< Revenue up 7% Y/Y driven by US but down sequentially in both US and Europe, versus an exceptionally robust first quarter < In a leading independent survey of institutional investors covering US and European equities, Bernstein was again ranked #1 on key metrics of research quality, including: Ø gr
Slide 14: Global Asset Mix
Down 10% by Client Domicile by Investment Service $ Billions Total AUM at Jun 30, 2008 $717 Billion Total AUM at Jun 30, 2007 $793 Billion Global Asset Mix
Slide 15: Alternative Investment Services AUM
($ Billions) +35% The information in this display is provided solely for use in connection with this presentation and is not directed towards existing or potential hedge fund investors or investment advisory clients of AllianceBernstein. +50% +35% -1% *Consists of Hedge Funds, Stand-alone Currency a
Slide 16: Second Quarter 2008 Revenues
NOTE: Percentages are calculated using revenues and expenses rounded to the nearest thousand. $ Millions Second Quarter 2008 Revenues
Slide 17: Second Quarter 2008 Advisory Fees
NOTE: Percentages are calculated using AUM rounded to the nearest million and revenues to the nearest thousand. $ Millions Second Quarter 2008 Advisory Fees
Slide 18: Second Quarter 2008 Operating Expenses
NOTE: Percentages are calculated using revenues and expenses rounded to the nearest thousand. $ Millions Second Quarter 2008 Operating Expenses
Slide 19: Second Quarter 2008 Compensation & Benefits
NOTE: Percentages are calculated using expenses rounded to the nearest thousand. $ Millions Second Quarter 2008 Compensation & Benefits
Slide 20: Second Quarter 2008 Net Income
(1) "Operating Margin" = (Operating Income - Non-Controlling Interest in Earnings)/Net Revenues (NOTE: Percentages are calculated using revenues and expenses rounded to the nearest thousand. $ Millions Second Quarter 2008 Net Income
Slide 21: Holding Financial Results
NOTE: Percentages are calculated using income, earnings and expenses rounded to the nearest thousand. Holding Financial Results
Slide 22: AllianceBernstein trademark notice
AllianceBernstein® and the AB AllianceBernstein Logo are trademarks and service marks owned by AllianceBernstein L.P.
Slide 23: Q&A
7B ALLIANCEBERNSTEIN Q&A
Slide 24: Appendix
7B ALLIANCEBERNSTEIN Appendix
Slide 25: Index Performance
Index S&P 500 Russell 1000 Growth Russell 1000 Value MSCI Emerging Markets MSCI EAFE MSCI World Lehman Aggregate Bond Annualized Cumulative 2Q 08 One Year Three Years Three Years (2.7) (13.1) 44 13.8 12 (6.0) 5.9 18.8 (5.3) (18.8) 35 11.0 (0.9) 46 27.1 105.5 (2.3) (10.6) 12.8 43.7 (1.7) (10.7) 8.9 2
Slide 26: Relative Performance: Institutional Growth Equity (After Fees)
Relative Performance: Institutional Growth Equity (After Fees) (1)
Slide 27: Relative Performance: Institutional Value Equity (After Fees)
Relative Performance: Institutional Value Equity (After Fees) (1)
Slide 28: Relative Performance: Blend Strategies (After Fees)
Relative Performance: Blend Strategies (After Fees) (1)
Slide 29: Relative Performance: Institutional Fixed Income (After Fees)
Relative Performance: Institutional Fixed Income (After Fees) (1)
Slide 30: Absolute Performance: Private Client (After Fees)
Absolute Performance: Private Client (After Fees) (1)
Slide 31: Relative Performance: Retail Growth Equity (After Fees)
Relative Performance: Retail Growth Equity (After Fees) (1)
Slide 32: Relative Performance: Retail Value Equity (After Fees)
Relative Performance: Retail Value Equity (After Fees) (1)
Slide 33: Relative Performance: Retail Fixed Income (After Fees)
Relative Performance: Retail Fixed Income (After Fees) (1)
Slide 34: Relative Performance: Wealth Strategies (After Fees)
Relative Performance: Wealth Strategies (After Fees) (1)
Slide 35: Investment Performance: Delivering Results for Clients
Bernstein Value Equities Inception Date Inception- Jun Alliance Growth Equities Inception Date AllianceBernstein. Past performance is no guarantee of future results. Source: Bloomberg, Citigroup, FTSE, JPMorgan Chase, Lehman Brothers, Merrill Lynch, MSCI, Nomura, Russell Investment Group, Scotia Cap
Slide 36: Balance Sheet
In $ Million 6/30/08 12/31/07 Assets Cash and cash equivalents $ 681.4 $ 576.4 Cash and securities, segregated 1,799.6 2,370.0 Receivables, net 1,408.2 1,633.6 Investments: Related to Deferred Compensation 646.1 547.5 Other 310.3 367.6 Goodwill, net 2,893.0 2,893.0 Intangible assets, net 253.8 264.2
Slide 37: Consolidated Statement of Cash Flows
In $ Millions Consolidated Statement of Cash Flows
Slide 38: Headcount Growth
Headcount up 8.8% versus 2Q07 and 0.9% sequentially Headcount Growth
Slide 39: Net Flows
16,000 14,000 12,000 $10,663 10,000 + $8,303 ieee $8,452 8,000 6,000 4,000 2,000 $792 0 —_ $13,351 (2,000) 3Q06 4Q06 1007 2Q07 3Q07 4Q07 Cod (4,000) ($1,500) (6,000) ($4,659)
Slide 40: Net Flows by Distribution Channel
Net Flows by Distribution Channel $ Millions
Slide 41: Net Flows by Investment Service
Net Flows by Investment Service $ Millions
Slide 42: AllianceBernstein trademark notice
AllianceBernstein® and the AB AllianceBernstein Logo are trademarks and service marks owned by AllianceBernstein L.P.
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