Alliancebernstein Holding L.p. · NYSE:AB
Alliancebernstein Holding L.p — Alliance Capital Management Holding — Q4 2000 Earnings Presentation
24 slides from Alliancebernstein Holding L.p's earnings presentation, Feb 7, 2001
Slide 1: Fourth Quarter 2000 Review
Exhibit 99.6 ALLIANCE CAPITAL Fourth Quarter 2000 Review Bruce W. Calvert John D. Carifa Lewis A. Sanders CEO President and COO CIO February 2, 2001 Introduction As you know, the SEC has recently adopted Regulation FD. In light of Regulation FD, we will be limited in responding to inquiries from inv
Slide 2: Operating Partnership 4Q Financial Highlights
• Bernstein — 55 31 86 • Net New Business 6 2 (1) 7 • Market Appreciation/(Depreciation) (17) (13) 3 (27) • Dec 2000 AUM $ 163 $ 254 $ 37 $ 454 4 Operating Partnership 4Q Financial Highlights 2000 1999 • Revenues: Base Fee & Other $ 743 $ 483 Performance Fee 50 102 • Expenses 578 416 • Net Operating
Slide 3: Bernstein Acquisition Accretive; Goodwill and Non-Recurring Items Impact
• Base Fee Earnings 0.69 0.67 +3% • Performance Fees 0.07 0.20 - -65% • Non-recurring Items, Net (0.09) — — 7 Bernstein Acquisition Accretive During Fourth Quarter • Added $0.06 to net operating earnings • Added $0.02 to base fee earnings • Revenue and profit met expectations 8 Goodwill and Non-Recu
Slide 4: Retail Business Highlights and Mix
Retail Business Highlights • 2000 revenues exceeded $1.7 billion • Year-end AUM of $163 billion • 2000 net new asset flows $25 billion* • U.S. net flows of $21 billion, up 5% from 1999* • Non-U.S. net flows of $4 billion, down 13% from 1999 • Competitive investment performance • 218 wholesaling forc
Slide 5: Retail AUM Changes and Market Share Trends
• Sept 2000 AUM $ 94 $ 20 $ 45 $ 15 $ 174 • Long-term product net sales 1 1 2 1 5 • Net cash management sales 2 — — — 2 • Unreinvested dividends (1) — — — (1) • Net new business 2 1 2 1 6 • Market depreciation (7) (3) (6) (1) (17) • Dec 2000 AUM $ 89 $ 18 $ 41 $ 15 $ 163 Assets reflect 100% of the a
Slide 6: Retail Investment Performance and 2001 Initiatives
Amounts in $ millions 16 Retail Investment Performance Annualized Performance Percentile Ranking 1 Year 5 Year 1 Year 5 Year U.S. Funds Premier Growth (19.9)% 20.5% 69% 25% (Large Cap Growth) Technology (24.6) 21.4 26 60 (Science and Technology) Growth & Income 13.6 19.5 33 7 (Multi-Cap Core) North
Slide 7: Institutional Money Management Business Highlights
• Continued emphasis on CollegeBoundfund sm for educational savings • Increase e-wholesaling force to 10% of total sales force • Further expansion of non-U.S. mutual fund sales infrastructure 18 Alliance/Bernstein Institutional Money Management Business Highlights • 2000 revenues reached $714 millio
Slide 8: Institutional Separate Account Composite Performance
(Growth Equity) Multi Cap Growth (9.7) 19.7 47 41 (All Cap Growth Equity) Research Managed (3.4) 19.5 11 54 (Growth Equity) Small Cap Growth 17.8 19.5 8 27 (Small Cap Growth) International Large Cap Growth (15.5) 9.7 55 61 (Non-U.S. Equity) Japan Equity (32.4) 4.6 59 25 (Japanese Equity) European Gr
Slide 9: Institutional Key Initiatives and Private Client Highlights
Outlook for 2001: Institutional Money Management Key Initiatives • Capitalize on substantial increase in sales resources • Pursue cross selling opportunities to existing clients • 1,900+ relationships • modest overlap • Launch of Alliance/Bernstein blend services • Greater penetration of internation
Slide 10: Outlook for 2001: Private Client and Research Initiatives
Outlook for 2001: Private Client Key Initiatives • Roll-out Alliance products to Bernstein private clients • Growth • Real Estate • Cash Management • Hedge Funds • Roll-out of next generation investment-planning tools • Plan to open three new offices • Expand number of financial advisors by 15% 26 O
Slide 11: Our Mission; Broad Range of Investment Disciplines
global research and investment-management organization through superior performance across a broad range of investment disciplines for a diverse group of clients 28 A Broad Range of Investment Disciplines 29 A Diverse Group of Clients
Slide 12: Global Platform and Creating Unitholder Value
30 Delivered Through a Global Platform * Includes investment professionals and analysts from joint venture offices. 31 With the Goal of Creating Unitholder Value (Distributions per Unit)
Slide 13: Outlook from 4Q 2000 Run Rates
Adjusted for two-for-one Unit split in 1998. 32 Outlook from 4Q 2000 Run Rates: Positive Organic Growth • Revenue growth 10-15% • 7-8% blended capital markets growth • $30-40 billion in net new flows • Accelerated growth in institutional research services • Decline in performance fees • Expenses • E
Slide 14: Positioned For Growth; Performance Disclosure
34 Positioned For Growth • Worldwide research and investment capabilities • Unique strengths in growth and value investing • Highly regarded marketing and client service teams • Well-positioned in retail, institutional and private client channels • Continued underlying business strength • Strong fin
Slide 15: Performance Disclosure (con't)
European Growth 1 2,317 ‹1% Enhanced Sector Rotation 28 4,349 1% 36 Performance Disclosure (con't) Alliance Capital Management L.P.—Bernstein Investment Research & Management Unit Prior to October 2, 2000, performance figures relating to the Bernstein value products were calculated by Sanford C. Ber
Slide 16: Presentation Appendix: Investment Considerations and Ownership
International Value (half-hedged, GDP wtd) 64 1,388 ‹1% 37 Alliance Capital 4Q00 Earnings Presentation Appendix Alliance Capital—Investment Considerations Alliance Capital (The Operating Partnership) • Assets Under Management: $ 454 billion • Market Value(1): $ 14.5 billion Alliance Holding (The Pub
Slide 17: Financial Results—Alliance Capital (Operating Partnership)
* AXA Financial ownership includes General Partnership interests. Employee ownership percentage includes restricted unit awards pursuant to 1999 Partners Plan. 3 Financial Results—Alliance Capital (The Operating Partnership) 4th Quarter Full Year 2000 1999(1) % Change 2000 1999(1) % Change Revenues
Slide 18: Financial Results—Alliance Holding
BASE FEE EARNINGS $ 194 $ 130 50 $ 677 $ 433 57 PERFORMANCE FEE EARNINGS 21 39 (48) 37 66 (44) NET OPERATING EARNINGS(2) $ 215 $ 169 27 $ 714 $ 499 43 (1) Amounts assume the Alliance Holding Reorganization occurred on January 1, 1999. (2) Net Operating Earnings: Net income excluding amortization of
Slide 19: Consolidated Balance Sheet
(1) Amounts assume the Alliance Holding Reorganization occurred on January 1, 1999. (2) Net Operating Earnings per Unit: Diluted Net income excluding Alliance Holding's proportionate share of amortization of intangibles and non- recurring items. 5 Alliance Capital (The Operating Partnership) Consoli
Slide 20: Cash Flow Statement
Net cash provided from operating activities 1,283,485 224,083 Cash flows from investing activities: Purchases of investments, net (213,939) (2,073) Additions to furniture, equipment and leasehold improvements, net (75,796) (63,496) Proceeds of restricted cash and securities, net (610,488) — Purchase
Slide 21: Changes in Assets Under Management
8 Changes in Assets Under Management Three Months Ended December 31, 2000 Institutional Money Retail Management Private Client Total Beginning of period $ 173,676 $ 210,483 $ 4,235 $ 388,394 Bernstein Acquisition — 55,006 30,790 85,796 Sales/new accounts 15,987 7,754 964 24,705 Redemptions/terminati
Slide 22: Retail AUM and Net Sales
Market Share of Gross Sales of U.S.-Based Mutual Funds In Key Advisor-Assisted Channels Nonproprietary gross sales domestic long-term funds. Source: ICI 11 Alliance Capital (The Operating Partnership) Retail AUM and Net Sales (in millions) Quarters Full Year AUM Net Sales Net Sales Net Sales Net Sal
Slide 23: Institutional Money Management AUM and Net Sales
Total $ 163,306 $ 7,563 $ 8,111 $ 7,310 $ 27,300 $ 26,951 12 Alliance Capital (The Operating Partnership) Institutional Money Management AUM and Net Sales Quarters Full Year AUM Net Sales Net Sales Net Sales Net Sales Net Sales 12/31/00 4Q 2000 4Q 1999 3Q 2000 2000 1999 Mutual Funds U.S.-Based $ 1,3
Slide 24: Alliance Capital Services Description
Alliance Capital provides diversified investment management and related services globally to a broad range of clients: 1. Retail Services consists of investment management products and services distributed to individual investors through financial intermediaries, such as brokers and financial planne
Alliance Capital Management Holding — Q4 2000 Earnings Presentation on 6ix