Alliancebernstein Holding L.p. · NYSE:AB
Alliancebernstein Holding L.p — Q3 2008 Earnings Presentation
40 slides from Alliancebernstein Holding L.p's earnings presentation, Oct 23, 2008
Slide 1: Gerald M. Lieberman and Lewis A. Sanders, October 22, 2008
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. October 22, 2008
Slide 2: Cautions regarding Forward-Looking Statements
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 statements are subject to risks, uncertainties, and other fac
Slide 3: Market Performance - US
*12 months ending September 30, 2008. Market Performance - US
Slide 4: Market Performance - Non-US
Market Performance - Non-US 30 2008 @2Q 2008 @ 12 Months* {0.9)% (2.3)% (15.3)% (20.6)% (26.0)% (27.0y% (30.5)% (33.2)% MSCI WORLD MSCI EAFE MSCI Emerging Markets 12 months encing September 30, 2008 Source: MSC] (Morgan Stanley Capital International).
Slide 5: Changes in Assets Under Management by Channel
Changes in Assets Under Management by Channel Three Months Ended September 30, 2008 $ Billions Institutional Private Investments Retail Client Total Beginning of Period $ 461.0 $ 156.7 $ 98.9 $ 716.6 Sales/New accounts 48 49g 27 124 Redemptions/Terminations (9.4) (11.3) (1.6) (22.3) Cash flow (0.6)
Slide 6: Note on AUM percentages
NOTE: Percentages are calculated using AUM rounded to the nearest million.
Slide 7: Changes in Assets Under Management by Investment Service
Changes in Assets Under Management by Investment Service Three Months Ended September 30, 2008 $ Billions Value Growth Fixed Equity Equity Income Other? Total Beginning of Period $ 3261 $ 1688 $ 1995 §$ 22.2 $ 716.6 Sales/Newaccounts 54 37 3.2 01 124 Redemptions/Terminations (14.0) (4.7) (3.5) (0.1)
Slide 8: Changes in Assets Under Management by Investment Service
Changes in Assets Under Management by Investment Service
Slide 9: Institutional Investments Highlights: 3Q08
(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. Institutional Investments Highlights: 3Q08
Slide 10: Retail Highlights: 3Q08
(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. Retail Highlights: 3Q08
Slide 11: Private Client Highlights: 3Q08
(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: 3Q08
Slide 12: Alternative Investment Services AUM
Alternative Investment Services AUM* * Consists of Hedge Fund, Currency and Venture Capital services
Slide 13: Institutional Research Services Highlights: 3Q08
Institutional Research Services Highlights: 3Q08 m Revenue of $125 million up 21% vs. 3Q07 and 13% sequentially » Strongest quarter on record mostly driven by US >» Increased volumes and market share m Best ever results in Institutional Investor's recently released All-America poll: » Ranked #6 over
Slide 14: Third Quarter 2008 Revenues
Third Quarter 2008 Revenues NOTE: Percentages are calculated using revenues and expenses rounded to the nearest thousand.
Slide 15: Third Quarter 2008 Advisory Fees
Third Quarter 2008 Advisory Fees NOTE: Percentages are calculated using AUM rounded to the nearest million and revenues to the nearest thousand.
Slide 16: Third Quarter 2008 Operating Expenses
Third Quarter 2008 Operating Expenses NOTE: Percentages are calculated using revenues and expenses rounded to the nearest thousand.
Slide 17: Third Quarter 2008 Compensation & Benefits
NOTE: Percentages are calculated using expenses rounded to the nearest thousand. Third Quarter 2008 Compensation & Benefits
Slide 18: Third Quarter 2008 Net Income
Third 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.
Slide 19: Holding Financial Results
(1) Excludes insurance recoveries related to class action claims processing error. NOTE: Percentages are calculated using income, earnings and expenses rounded to the nearest thousand. Holding Financial Results
Slide 20: Lewis A. Sanders, Chairman & Chief Executive 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. October 22, 2008
Slide 21: Q&A
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Slide 22: Appendix
7B ALLIANCEBERNSTEIN Appendix ise only ‘AlianceBemstein | 22
Slide 23: Index Returns through September 30, 2008
S&P 500 Russell 1000 Growth Russell 1000 Value MSCI Emerging Markets MSCI EAFE MSCI World Lehman Aggregate Bond Retums in % through September 30, 2008. Annualized Cumulative 3Q 08 One Year Three Years Three Years (8.4) (22.0) 0.2 0.7 (12.3) (20.9) 0.0 0.1 (6.1) (23.6) 0.1 0.3 (27.0) (33.2) 8.4 27.3
Slide 24: Relative Performance: Institutional Growth Equity (After Fees)
Relative Performance: Institutional Growth Equity (After Fees) (1)
Slide 25: Relative Performance: Institutional Value Equity (After Fees)
Relative Performance: Institutional Value Equity (After Fees) (1)
Slide 26: Relative Performance: Blend Strategies (After Fees)
Relative Performance: Blend Strategies (After Fees) (1)
Slide 27: Relative Performance: Institutional Fixed Income (After Fees)
Relative Performance: Institutional Fixed Income (After Fees) (1)
Slide 28: Absolute Performance: Private Client (After Fees)
Absolute Performance: Private Client (After Fees) (1)
Slide 29: Relative Performance: Retail Growth Equity (After Fees)
Relative Performance: Retail Growth Equity (After Fees) (1)
Slide 30: Relative Performance: Retail Value Equity (After Fees)
Relative Performance: Retail Value Equity (After Fees) (1)
Slide 31: Relative Performance: Retail Fixed Income (After Fees)
Relative Performance: Retail Fixed Income (After Fees) (1)
Slide 32: Relative Performance: Wealth Strategies (After Fees)
Relative Performance: Wealth Strategies (After Fees) (1)
Slide 33: Investment Performance: Delivering Results for Clients
Investment Performance: Delivering Results for Clients Net-of-Fee Annualized Relative Performance Premiums Inception _Inception- Inception _Inception— Bemstein Value Equities Date Sep 2008 Alliance Growth Equities Date Sep 2008 = US. Smalimid Cap Value 31-Dec-00 445% BUS Growth 31-Dec70 + 35% [oJ Ja
Slide 34: AllianceBernstein Consolidated Balance Sheet
AllianceBernstein Consolidated Balance Sheet In $ Million Assets Cash and cash equivalents Cash and securities, segregated Receivables, net Investments: Related to Deferred Compensation Other Goodwill, net Intangible assets, net Deferred sales commissions, net Other (incl. furniture & equipment, net
Slide 35: Consolidated Statement of Cash Flows
Consolidated Statement of Cash Flows
Slide 36: Total Headcount
6,000 5,000 4,000 3,000 2003 2004 2005 2006 2007 1908 2908 3a08 | @ Total Headcount 4,060 4,100 4,312 4,914 5,580 5,585 5,635 5,660 | Headcount up 4.2% versus 3Q07
Slide 37: Net Flows ($ Millions)
$ Millions 15,000 10,000 (5,000) (10,000) (15,000) $13,351 $10,663 puna $8,452 $792 = | 4Q06 1Q07 2Q07 3Q07 4Q07 1008 ($1,500) ($4,659) ($14,840) Proprietary - For AlianceBlernstein LP. use only AllianceBemstein | 37
Slide 38: Net Flows by Distribution Channel
Net Flows by Distribution Channel
Slide 39: Net Flows by Investment Service
$ Millions 15,000 10,000 5,000 ° 4Q0 7 200 Ee) = (6,000) (10,000) g Value @ Growth Fixed Other(1) (1) Inctudes index, Structured and Asset Allocation services. a ue 208 Rev Proprietary - For AlianceBereten LP use only ‘AlanceBersisin | 38
Slide 40: AllianceBernstein trademarks
AllianceBernstein® and the AB AllianceBernstein Logo are trademarks and service marks owned by AllianceBernstein L.P.
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