Alliancebernstein Holding L.p. · NYSE:AB

Alliancebernstein Holding L.p — Q3 2009 Earnings Presentation

36 slides from Alliancebernstein Holding L.p's earnings presentation, Oct 30, 2009

  1. Slide 1: Third Quarter 2009 Review

    Third Quarter 2009 Review October 29, 2009 Peter S. Kraus Chairman & Chief Executive Officer David A. Steyn Chief Operating Officer Robert H. Joseph, Jr. Chief Financial Officer

  2. Slide 2: Cautions Regarding Forward-Looking Statements

    3Q09 Earnings Call Presentation 1 AllianceBernstein.com 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 state

  3. Slide 3: Third Quarter 2009 Highlights

    3Q09 Earnings Call Presentation 2 AllianceBernstein.com Third Quarter 2009 Highlights < Performance continues to improve, especially in Fixed Income and Value < AUM increased 11% sequentially, as net outflows slowed by 46% < Operating Margin and Net Income down versus 3Q08, but up sequentially

  4. Slide 4: Relative Performance: Value Equity

    3Q09 Earnings Call Presentation 3 AllianceBernstein.com Relative Performance: Value Equity International Value Global Value US Diversified Value 3Q:2009 Jan-Sep 2009 Year Years Years Years Institutional Equity Composites vs. Benchmarks Percent As of September 30, 2009 Performance is preliminary. The

  5. Slide 5: Relative Performance: Growth Equity

    3Q09 Earnings Call Presentation 4 AllianceBernstein.com Relative Performance: Growth Equity Global Research Growth US Large Cap Growth International Large Cap Growth As of September 30, 2009 Performance is preliminary. The information in this table is provided solely for use in connection with this

  6. Slide 6: Relative Performance: Blend Strategies

    3Q09 Earnings Call Presentation 5 AllianceBernstein.com Relative Performance: Blend Strategies As of September 30, 2009 Performance is preliminary. The information in this table is provided solely for use in connection with this presentation, and is not directed toward existing or potential investme

  7. Slide 7: Relative Performance: Fixed Income

    3Q09 Earnings Call Presentation 6 AllianceBernstein.com Relative Performance: Fixed Income Strategic Core Plus Corporate Bonds Global Plus N/A N/A Institutional Fixed Income Composites vs. Benchmarks Percent As of September 30, 2009 Performance is preliminary. The information in this table is provid

  8. Slide 8: Net Flows By Investment Service

    3Q09 Earnings Call Presentation 7 AllianceBernstein.com Net Flows By Investment Service *Includes Index, Structured and Asset Allocation services. In US dollars (billions) Total Net Flows: ($23.2B) ($20.2B) ($24.0B) ($12.9B)

  9. Slide 9: Net Flows By Distribution Channel

    3Q09 Earnings Call Presentation 8 AllianceBernstein.com Net Flows By Distribution Channel In US dollars (billions)

  10. Slide 10: Private Client Highlights

    3Q09 Earnings Call Presentation 9 AllianceBernstein.com Private Client Highlights < Net outflows improved in 3Q09 vs. 2Q09; based on client interactions, risk aversion continues to decline < Significant new research will be published in 4Q09 and implemented in client accounts in 1H10 = Portfolio ris

  11. Slide 11: Retail Update

    3Q09 Earnings Call Presentation 10 AllianceBernstein.com Retail Update < Net outflows improved in 3Q09 vs. 2Q09 based on improved sales < Mutual fund flows remain positive, with gross sales up 43% = Fixed income dominates new-business asset mix = Mutual fund performance remains strong: 69% of mutual

  12. Slide 12: Institutions Highlights

    3Q09 Earnings Call Presentation 11 AllianceBernstein.com Institutions Highlights < Net outflows improved by 47% in 3Q09 vs. 2Q09 < Gross 3Q09 sales were $5.3 billion, compared with $1.3 billion in 2Q09 = Increased interest from sovereign funds in fixed income offerings = Reopened regional equity ser

  13. Slide 13: Bernstein Research Highlights

    3Q09 Earnings Call Presentation 12 AllianceBernstein.com Bernstein Research Highlights < Revenue down 12% compared to record quarter in 3Q08; down 1% from 2Q09 < Most recent data from independent surveys point to strong Y/Y market share gains in 1H09 across all geographies, particularly Europe < Con

  14. Slide 14: Five Quarter Headcount Trend

    3Q09 Earnings Call Presentation 13 AllianceBernstein.com Five Quarter Headcount Trend 5,663 4,997 4,761 4,654 4,544

  15. Slide 15: Third Quarter 2009 Net Income

    3Q09 Earnings Call Presentation 14 AllianceBernstein.com 3Q 2009 3Q 2008 Percent Change Net Revenues $806 $841 -4% Operating Expenses 583 590 -1% Operating Income 223 251 -11% Non-Operating Income 17 5 243% < One-time $10M contingent payment from 2005 sale of cash management business Income Before I

  16. Slide 16: Third Quarter 2009 Revenues

    3Q09 Earnings Call Presentation 15 AllianceBernstein.com Revenues 3Q 2009 3Q 2008 Percent Change Advisory Fees $484 $713 -32% < Lower AUM and adverse mix shift Distribution 74 97 -24% < Lower average mutual fund AUM Institutional Research Services 109 125 -12% < Market share gains offset by lower le

  17. Slide 17: Third Quarter 2009 Operating Expenses

    3Q09 Earnings Call Presentation 16 AllianceBernstein.com 3Q 2009 3Q 2008 Percent Change Expenses Compensation & Benefits $336 $329 2% < Slide 17 Promotion & Servicing 111 140 -21% < Lower distribution plan costs General & Administrative 130 114 14% < $35M insurance reimbursement recognized in 3Q08 <

  18. Slide 18: Third Quarter 2009 Compensation & Benefits

    3Q09 Earnings Call Presentation 17 AllianceBernstein.com 3Q 2009 3Q 2008 Percent Change Base Compensation $112 $133 -16% < 18% decline in salaries, partially offset by $3M increase in severance Incentive Compensation Cash 56 55 1% < 3Q08 lower than 1H08 run rate due to YTD bonus accrual reduction De

  19. Slide 19: Six-Quarter Deferred Compensation Net P&L Trend

    3Q09 Earnings Call Presentation 18 AllianceBernstein.com 2Q 2008 3Q 2008 4Q 2008 1Q 2009 2Q 2009 3Q 2009 Revenues Investment Gains (Losses) ($12) ($123) ($131) ($28) $63 $71 Dividends 1 1 7 1 2 1 Total Revenues ($11) ($122) ($124) ($27) $65 $72 Expenses Amortization of Original Awards $46 $46 $59 $4

  20. Slide 20: Third Quarter 2009 Review

    3Q09 Earnings Call Presentation 19 AllianceBernstein.com Third Quarter 2009 Review Peter S. Kraus Chairman & Chief Executive Officer

  21. Slide 21: Q & A

    3Q09 Earnings Call Presentation 20 AllianceBernstein.com Q & A

  22. Slide 22: Appendix

    3Q09 Earnings Call Presentation 21 AllianceBernstein.com Appendix

  23. Slide 23: Relative Performance: Institutional Value Equity

    3Q09 Earnings Call Presentation 22 AllianceBernstein.com Periods Ended September 30, 2009 Service 3Q 2009 Jan-Sep 2009 One Year Three Years Five Years 10 Years Benchmark US Diversified Value - 1.6 1.6 (2.7) (2.1) 0.4 Russell 1000 Value US Strategic Value 3.2 3.7 (0.2) (5.9) (2.6) 2.7 S&P 500 US Stra

  24. Slide 24: Relative Performance: Institutional Growth Equity

    3Q09 Earnings Call Presentation 23 AllianceBernstein.com Periods Ended September 30, 2009 Service 3Q 2009 Jan-Sep 2009 One Year Three Years Five Years 10 Years Benchmark Global Research Growth (1.0) (0.1) (7.0) (5.7) (3.5) 1.0 MSCI World (net) US Large Cap Growth 2.8 1.9 3.4 - 0.7 0.4 Russell 1000 G

  25. Slide 25: Relative Performance: Institutional Blend Strategies

    3Q09 Earnings Call Presentation 24 AllianceBernstein.com Periods Ended September 30, 2009 Service 3Q 2009 Jan-Sep 2009 One Year Three Years Five Years 10 Years Benchmark Global Blend Strategies 1.9 3.5 (4.1) (5.6) (2.6) N/A MSCI World International Blend Strategies 0.1 0.8 (5.6) (3.7) (2.5) N/A MSCI

  26. Slide 26: Relative Performance: Institutional Fixed Income

    3Q09 Earnings Call Presentation 25 AllianceBernstein.com Periods Ended September 30, 2009 Service 3Q 2009 Jan-Sep 2009 One Year Three Years Five Years 10 Years Benchmark Corporate Bonds 1.2 4.2 (0.1) (0.4) (0.2) 0.2 Custom Corporate Index Strategic Core Plus 3.8 10.6 4.4 (0.5) (0.1) N/A Custom Index

  27. Slide 27: Absolute Performance: Private Client

    3Q09 Earnings Call Presentation 26 AllianceBernstein.com Periods Ended September 30, 2009 Service 3Q 2009 Jan-Sep 2009 One Year Three Years Five Years 10 Years Fully Diversified Simulation 12.7 19.8 1.4 (2.9) 2.7 3.5 S&P 500 15.6 19.3 (6.9) (5.4) 1.0 (0.2) Absolute Performance: Private Client Perfor

  28. Slide 28: Relative Performance: Retail Value Equity

    3Q09 Earnings Call Presentation 27 AllianceBernstein.com Periods Ended September 30, 2009 Service 3Q 2009 Jan-Sep 2009 One Year Three Years Five Years 10 Years Lipper Average International Value 3.3 4.7 (6.1) (2.3) N/A International Large Cap Value Growth & Income (1) (5.3) (2.2) 0.3 (1.3) (1.6) (0.

  29. Slide 29: Relative Performance: Retail Growth Equity

    3Q09 Earnings Call Presentation 28 AllianceBernstein.com Periods Ended September 30, 2009 Service 3Q 2009 Jan-Sep 2009 One Year Three Years Five Years 10 Years Benchmark or Lipper Average Global Growth 1.7 (1.3) (7.3) (3.9) N/A Global Large Cap Growth U.S. Large Cap Growth (1) 2.4 (0.1) 17.9 4.1 2.8

  30. Slide 30: Relative Performance: Retail Fixed Income

    3Q09 Earnings Call Presentation 29 AllianceBernstein.com Periods Ended September 30, 2009 Service 3Q 2009 Jan-Sep 2009 One Year Three Years Five Years 10 Years Peer Group Average Global High Yield Portfolio 4.2 15.8 6.2 3.0 0.5 Morningstar Fixed Income Global High Yield American Income Portfolio 4.7

  31. Slide 31: Relative Performance: Wealth Strategies

    3Q09 Earnings Call Presentation 30 AllianceBernstein.com Periods Ended September 30, 2009 Service 3Q 2009 Jan-Sep 2009 One Year Three Years Five Years 10 Years Morningstar Average Wealth Preservation 0.4 (0.8) (0.3) 0.1 N/A Conservative Allocation Balanced Wealth 3.9 5.9 3.0 (0.2) 0.8 N/A Moderate A

  32. Slide 32: Third Quarter 2009 Advisory Fees

    3Q09 Earnings Call Presentation 31 AllianceBernstein.com 3Q 2009 3Q 2008 Percent Change Ending AUM ($ Billions) $498 $590 -16% < Up $51B (11%) sequentially Average AUM ($ Billions) $474 $669 -29% < Up $37B (8%) sequentially By Fee Type ($ Millions): Base Fees $484 $713 -32% < Lower AUM and adverse m

  33. Slide 33: AllianceBernstein Holding Financial Results

    3Q09 Earnings Call Presentation 32 AllianceBernstein.com 3Q 2009 3Q 2008 Percent Change AllianceBernstein Net Income Attributable to AllianceBernstein $199 $220 -9% Weighted Average Equity Ownership Interest 34.5% 33.2% AllianceBernstein Holding Equity in Net Income Attributable to AllianceBernstein

  34. Slide 34: Consolidated Balance Sheet

    3Q09 Earnings Call Presentation 33 AllianceBernstein.com Assets Sept 30, 2009 Dec 31, 2008 Cash and cash equivalents $571.0 $552.6 Cash and securities, segregated 1,274.3 2,572.6 Receivables, net 1,202.3 1,027.8 Investments: Related to Deferred Compensation 497.3 305.8 Other 307.8 272.0 Goodwill, ne

  35. Slide 35: Consolidated Statement of Cash Flows

    3Q09 Earnings Call Presentation 34 AllianceBernstein.com Nine Months Ended Sep 30, 2009 Sep 30, 2008 Cash Flows From Operating Activities: Net Income $387.6 $778.9 Non-cash items: Amortization of deferred sales commissions 42.1 61.9 Amortization of non-cash deferred compensation 51.8 47.3 Depreciati

  36. Slide 36: ALLIANCEBERNSTEIN

    7B ALLIANCEBERNSTEIN

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