Morgan Stanley · NYSE:MS
Morgan Stanley — Investor Presentation (November 2002)
25 slides from Morgan Stanley's investor presentation, Nov 12, 2002
Slide 1: Morgan Stanley Europe Update
Morgan Stanley Europe Update 12 November 2002 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 information. The pr
Slide 2: Morgan Stanley - European Overview
Morgan Stanley Morgan Stanley - European Overview Morgan Stanley Europe Institutional Individual Investment Consumer Securities Investor Group Management Banking Group Equity Investment Fixed Income Private Institutional Private Equity Consumer Banking Wealth Investment Banking Group Management Mana
Slide 3: Morgan Stanley's European Presence
Morgan Stanley Morgan Stanley’s European Presence UK (1977) France (1990) Germany (1987) Ireland (1998) Italy (1989) Luxembourg (1989) Netherlands (1997) Portugal (2000) Russia (1994) Spain (1993/1999) Sweden (1999) Switzerland (1986) Israel (2001) South Africa (1994) This slide is part of a present
Slide 4: European Revenues
Morgan Stanley European Revenues 1996 and 2001 Global and European Revenues 1996 2001 Europe 12% Europe 18% Global Revenues $12,023MM Global Revenues $21,896MM European Revenues $1,429MM European Revenues $3,986MM Source Morgan Stanley 10-K Filings and Morgan Stanley This slide is part of a presenta
Slide 5: European Market Conditions
Morgan Stanley European Market Conditions Market Conditions 2002 vs. 2001(1) % Change in US$ Volume Equity Underwriting Announced M&A Volume 26% 28% Debt Underwriting Completed M&A Volume 30% 29% Source Thomson Financial Securities Data Note 1. 1 January to 31 October This slide is part of a present
Slide 6: The M&A Cycle: European Announced Transactions
Morgan Stanley The M&A Cycle: European Announced Transactions Dollar Volume(1) $ Bn 1,600 1,497 1,400 1,362 1,200 1,000 777 800 628 600 487 397 400 346 284 177 191 200 160 136 130 121 128 96 0 (2) 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 Source Thomson Financia
Slide 7: European M&A Activity
Morgan Stanley European M&A Activity Transaction Volume by Industry(1) % 100 2 2 6 10 80 34 41 60 22 9 40 15 19 20 17 16 4 3 0 2001 2002 YTD Technology Communications/Media Utilities/Energy Financial Institutions Global Industries (2) Real Estate (3) Other (3) Source Thomson Financial Transaction Vo
Slide 8: European M&A Activity (cont'd)
Morgan Stanley European M&A Activity (cont’d) Mergers and Acquisitions Completed - ‘02 YTD(1) Announced European Transactions - ‘02 YTD(1) $ Bn $ Bn 140 90 85 128 81 80 78 120 74 73 71 109 71 70 100 66 66 65 100 96 60 80 79 80 76 73 50 72 60 40 60 30 40 20 20 10 0 0 M or gan J P M or gan M er r i l
Slide 9: Bond Market Environment
Morgan Stanley Bond Market Environment Debt Issuance by Sector Government Yields $US Bn (%) 7.0 297.2 300 6.5 26.7 6.0 5.5 5.0 250 238.0 4.5 4.0 24.6 217.0 99.2 3.5 10.1 200 63.5 167.5 German 10-year Govt Bond Y ield US 10-year Govt Bond Y ield 76.9 UK 10-year Govt Bond Y ield 13.1 150 41.8 Source B
Slide 10: Corporate Issuance - 1999-2002 YTD
Morgan Stanley Corporate Issuance - 1999-2002 YTD Corporate Issuance(1) Bn 500 484 450 99 385 400 350 310 97 306 300 27 190 63 250 140 157 200 28 130 150 24 20 100 19 167 124 111 50 94 0 1999 2000 2001 2002YTD Euros Sterling USD Others Source Capital Bondware Note 1. As of 7 November 2002 This slide
Slide 11: Corporate Issuance - 2001-2002 YTD
Morgan Stanley Corporate Issuance - 2001-2002 YTD(1) Rating Distribution in Euros Rating Distribution in Sterling Rating Distribution in USD (%) (%) (%) AAA AAA AAA 6% 8% AA AA BBB 14% BBB 7% 30% 28% 9% AA 16% BBB A 56% 30% A A 39% 55% 2001 2001 2001 AAA AAA 19% BBB 17% BBB AAA 30% 27% 27% BBB 45% A
Slide 12: European Securitisation Market
Morgan Stanley European Securitisation Market European ABS Issuance: 1996-2002 YTD $ Bn 200 180 160 140 122 120 100 95 81 80 57 60 45 38 40 28 20 0 (1) 1996 1997 1998 1999 2000 2001 2002 YTD Source Morgan Stanley Research Note 1. As of 31 October 2002 This slide is part of a presentation by Morgan S
Slide 13: European Securitisation Issuance
Morgan Stanley European Securitisation Issuance European ABS Issuance by Asset Class European ABS Issuance by Country % % 2001 2001 Operating Company Credit Cards Consumer Loans European Ireland 5% 1% 3% 5% 2% Aircraft Other NPLs 1% 7% 4% France UK CM BS RM BS 4% 39% 10% 40% Holland 11% Other 17% Au
Slide 14: Global High Yield Market Trends
Morgan Stanley Global High Yield Market Trends Global Issues 1996-2002 YTD(1) European Issues 1996-2002 YTD(1) US$ Bn US$ Bn 160 20 18.1 141.7 18 140 2.2 15.6 122.0 16 120 1.7 14.3 14 104.0 1.9 100 2.4 92.3 7.4 12 0.8 80 126.1 10 66.9 7.7 8.0 115.7 8 60 85.9 53.9 49.5 6.3 1.6 84.3 6 1.2 40 10.7 0.5
Slide 15: Equity Secondary Trading Volumes
Morgan Stanley Equity Secondary Trading Volumes European Equity Traded Volumes $ Bn 10,000 9,691 8.0% 8,470 8,000 6,836 6,201 6,000 5,447 4.0% 4,000 2,000 0 0.0% (1) 1998 1999 2000 2001 2002 YTD Total Market Treated Volume Morgan Stanley Traded Volume % Source Data provided directly from exchanges a
Slide 16: Efficiency Gains in Securities Processing
Morgan Stanley Efficiency Gains in Securities Processing Morgan Stanley Institutional Securities Trading Volume and Costs Indexed, Europe 600 500 400 300 200 100 0 1997 1998 1999 2000 2001 2002 YTD Gross Volumes Operations Expenses Cost per Trade Agent Bank/Clearing(1) Source Morgan Stanley Note 1.
Slide 17: European Asset Management
Morgan Stanley European Asset Management The European Market Opportunity 2001 Global Assets Under Management 2001 Asset Ownership by Source $ Trillion $ Trillion 5 30 4 25 25 3 20 2 15 15 1 10 6 0 5 l nd n ga ly x ri a ce nd io lu Ita la 5 r tu an st eg ne la Ire Au er Po Fr R Be i tz & c & & di K S
Slide 18: Morgan Stanley Investment Management
Morgan Stanley Morgan Stanley Investment Management • Morgan Stanley SICAV (Societe d'Investissement a Capital Variable) receives 26 prestigious investment performance awards from Standard & • Largest foreign mutual fund Poor’s in 2002 manager in Italy • 2nd Place European Funds – larger Amsterdam m
Slide 19: European Private Wealth Management
Morgan Stanley European Private Wealth Management Global Net Investible Assets European High Net Worth Individuals(1) € Trillion CAGR ’00-’05E 100 90 88 Nordic 80 6% 12% France 23 17% 70 Italy 16% 60 57 PWM target segments 50 13 Spain 43 9% 40 10% 30 27 20 Germany 30% UK 22% 10 22 5% 17 0 Number of
Slide 20: European Private Wealth Management: Key Market Trends
Morgan Stanley European Private Wealth Management Key Market Trends Four Key trends are crystallizing and changing the factors of success on the market Evolution of the nature of wealth Customer expectations Rules of the game Globalisation Source The Boston Consulting Group, Global Wealth 2001 This
Slide 21: European Credit Cards Business
Morgan Stanley European Credit Cards Business A Large and Highly Competitive Market UK Overall Market Growth Cards MM/Loans £ Bn 70,000 60,000 50,000 40,000 30,000 20,000 10,000 0 93 94 95 96 97 98 99 00 01 19 19 19 19 19 19 19 20 20 Cards Loans Source British Bankers’ Association This slide is part
Slide 22: The Competitive Landscape - Europe
Morgan Stanley The Competitive Landscape - Europe 1997 - 2002 YTD (1) Market Share Announced European M&A European Equity Issues(2) % of US$ Volume % of US$ Volume 40 36.6 35.2 12 9.9 9.4 35 10 30 8.0 7.8 7.6 23.7 23.4 8 25 19.8 20 6 15 4 10 2 5 0 0 Goldman M organ J P M organ M errill Lynch UBS W G
Slide 23: Vision and Values
Morgan Stanley Vision and Values Our Culture is Our Competitive Advantage Connecting people, ideas and capital, we will be the world’s First Choice for achieving financial aspirations 6. Client Centricity 1. Integrity 5. Team Work Core Values 2. Excellence First Choice 4. Respect for Individuals and
Slide 24: Requirements for Success
Morgan Stanley Requirements for Success Importance of Culture “Despite leaner times, Morgan Stanley has been one of the most successful European banks and was the first major tenant at Canary Wharf, helping to build the area’s success.” “After September 11, hotlines and counselling sessions were use
Slide 25: Awards: July 2001 - October 2002
Morgan Stanley Awards: July 2001 - October 2002 Recognised as one of “Europe’s Top 10 Companies to Work For” – Fortune, Europe Edition (March 2002) Ranked 21st in the Sunday Times “100 Best Companies to Work For in the UK” – (March 2002) Best High Grade Research Team – Credit Magazine (May 200
Morgan Stanley — Investor Presentation (November 2002) on 6ix