Alliancebernstein Holding L.p. · NYSE:AB
Alliancebernstein Holding L.p — Alliance Capital Management — Q2 2004 Earnings Presentation
30 slides from Alliancebernstein Holding L.p's earnings presentation, Jul 28, 2004
Slide 1: Alliance Capital and Alliance Holding Second Quarter 2004 Review
Alliance Capital and Alliance Holding Second Quarter 2004 Review Lewis A. Sanders Gerald M. Lieberman Chief Executive Officer Chief Operating Officer duly 27, 2004
Slide 2: Introduction and Forward-Looking Statements
Introduction The SEC adopted Reguiation FD in October 2000. In light of Regulation FD, Management will be limited in responding to inquiries fram investors or analysts in a non-public forum. You are encouraged to ask all questions of a material nature on this conference call Forward-Looking Statemen
Slide 3: Market Environment
Market Environment S&P 500 Russell 1000 Growth Russell 1000 Value MSCI EAFE Lehman Aggregate Bond Fetus trough ne 30, 2004 2004 17% 19% 09% 09% 24% 4Yr 19.1% 173% 21.1% 24.0% 03% Annualized 3Yr 07% 37% 3.0% 09% 64% Cumulative 21% 10.8% 9.2% 39% 20.3%
Slide 4: Relative Investment Performance
7 Relative Investment Performance « Performance of many services for second quarter and first half of 2004 are at or above benchmarks = Outstanding second quarter relative performance in International Growth, Emerging Markets Value, and Regent
Slide 5: Alliance Capital Second Quarter Revenues
Alliance Capital Second Quarter Revenues (Fons, eer AL) 2004 2003 %chg___Comments Average AUM ($bn) $477 $410 16.3% * Market appreciation Revenues Base Fee) $504 $432 16.5 = Higher average AUM, party offset by Retal Long-Term WF fee reductions Performance Fee 7 1-357 Distribution 112 1093.0 Institut
Slide 6: Alliance Capital Second Quarter Expenses & Net Income
Alliance Capital Second Quarter Expenses & Net Income (eS ations) 2004 Employee Comp. & Benefits $262 Promotion & Servicing 184 General & Administrative 114 Interest 6 Amortization of Intangibles = _5. S71 Income Before Taxes 166 Income Taxes —10 Net Income $156 NOTE: Perertageraecabulted uring uncd
Slide 7: Alliance Capital Second Quarter Compensation & Benefits
f Alliance Capital Second Quarter Compensation & Benefits de Satins) 2Q04 2Q03 % chg Comments Base Compensation $77 $74 astggg = Annilalimanilincresses Incentive Compensation 104 92 10.0 + Higher operating earings Commissions 58 40 454 + Higher Private Client Fringes & Other 2% _2M 238 Total $262 $2
Slide 8: FIN Impact
# FIN 46 IMPACT (de Sills, uraded) Pre FIN 46 FIN 46 Effect J Consolidated Revenues Base Fee $503 $1 $504 Performance Fee 7 : 7 Distribution 112 : 112 Other 105 8 tla, Tar 10 _ 737 Expenses Employee Comp & Benefits 261 1 262 General and Administrative 106 9 114 Other _195, : 561 10 Income Before Tax
Slide 9: Alliance Holding Financial Results
Alliance Holding Financial Results Ce ans Sept perunt Aart) Ecl 2003 % chg 1904 % chg Equity in Earnings $48 $45 7.7% $52 6.9% Income Taxes 6 5 19.0 6 67 Net Income $42 $40 62 $4686 Net Income Per Unit $0.53 $0.51 3.9 $058 8.6 Distribution Per Unit $0.53 $0.51 3.9% $0.14 278.6% « Cash distributions
Slide 10: Three Months Ended June 30, 2004
Three Months Ended June 30, 2004 (in $ millions) Value Growth Fixed Equity Equity Income Beginning of Period $159,684 $128,281 $167,722 427,931 $483,618 Long-Term Flows SeleciNew aocounts 6,649 4,805 6,302 438 19,194 RedemptionsiTerminations (1,895) 6,010) (4,716) (333) (12,014) Cash flow (49) (3,09
Slide 11: Twelve Months Ended June 30, 2004
Orientation ‘Twelve Months Ended June 30, 2004 (in $ mitions) Value Growth Fixed Equity Equity Income Beainnina of Period $118,969 $114,963, $168,385, $23,885 $426,203 Long-Term Flows SalesiNew accounts mead te4i8 tags 1,489 67,239 RederptionsTerminatians (9,590) (25,119) (21,786) (841) (87,336) Cas
Slide 12: Institutional Asset Management - Second Quarter Highlights
Institutional Asset Management - Second Quarter Highlights = Inflows into global value, global growth and style blend services more than offset outflows from USS. growth equity and fixed income services « Funded new account wins totaled $10 billion in 2Q up from $5 billion in1Q = More than 80% of ne
Slide 13: Private Client Asset Management - Second Quarter Highlights
Private Client Asset Management - Second Quarter Highlights = Organic growth continues to be Ended une 30, 2004 driven by increased advisor productivity (8 titions) begining ALUM ou ou = Tampa and Boston offices to open Net Long-Term Fone 1 5 in 3Q; Philadelphia in 4a Appedston 7 Ending AUM os es %
Slide 14: Retail Asset Management - Second Quarter Highlights
Retail Asset Management - Second Quarter Highlights = Redemptions in long-term funds Ended une 30, 2004 slowed as did new sales; net outflows continued in growth and — érsatios) fixed income, partially offset by Beginning AUM $158 $147 net inflows into value equities Net Long-Tem Flome o © « Fixed I
Slide 15: Changes in Assets Under Management by Channel
Changes in Assets Under Management by Channel Three Months Ended June 30, 2004 (in $ mitions) Beginning of Period Long-Term Flows SalesiNew accounts Redemptions/Terminations Cash flow Unreinv ested dividends Net new long-term inflows/(outflows) Net cash management, sales Market depreciation End of P
Slide 16: Changes in Assets Under Management by Channel
Changes in Assets Under Management by Channel (in $ mitions) Twelve Months Ended June 30, 2004 Institutional Private Inv Mgmt Client f Total Beginning of Period $234574 © $147,037 $44,592 $426,203. Long-Term Flows SalesiNew accounts 33997 25 093 8159 87 239 Redemptions/Terminations 5785) 8.231) 2320
Slide 17: Institutional Research Services - Second Quarter Highlights
Institutional Research Services - Second Quarter Highlights « Increased market share more than offset decline in market volume = Continuing strong growth in Pan European research business » Earned high marks for quality research in two leading European surveys » In one survey, Bernstein ranked —# 1
Slide 18: Slide 18
Slide 19: Relative Performance - Institutional Value Equity
Relative Performance “) — Institutional Value Equity Institutional Equity Composites vs. Benchmarks Small Emerging Strategic Diversified Relative Mid Cap _—International_~—- Market Value) Value?) Value’) Value) Yaluel®) Yaluet®) 2004 +04 03 06 420 12 424 YD +06 +05 04 +09 15 24 tw 43 412 19 18 18 +8
Slide 20: Relative Performance - Institutional Growth Equity
Relative Performance “) — Institutional Growth Equity Institutional Equity Composites vs. Benchmarks Emerging Large Cap MultiCap = Mid Cap = SmallCap_—IntiLgCap Market Growth® _Growth®) Growth Growth®) Growth) Growth”) 200400 02 16 08 424 +06 YD +03 +67 13.6 4 +07 424 1" as 493 +139 13 +03 18 a 20 4
Slide 21: Relative Performance - Institutional Fixed Income
Relative Performance “) — Institutional Fixed Income Institutional Fixed Income Composites vs. Benchmarks Core Corp High Emerging Core Plus®) Mortgage) _Bonds __Yield®) Global®) Market”) 2004 +04 04 +01 08 +02 08 yD +04 +02 +01 16 +01 o4 a 07 +05 +01 22 +03 +7 a 03 +09 +04 3.0 +01 +67 oy 02 +03 405
Slide 22: Relative Performance - Retail Value Equity
Relative Performance — Retail Value Equity Retail Mutual Funds vs. Lipper Averages Small Value Growth & Cap Intl Global (Lg Cap){") Income?) Value) ~=— Value’ Value) Balanced) 2004 05 AS +03 aa M5 4 vip +06 +03 +04 AS +08 +09 we 19 +02 +46 36 33 43 ay 44 18 +66 +59 16 42.2 on 40.9 - - 433 100 42.6 :
Slide 23: Relative Performance - Retail Growth Equity
Relative Performance — Retail Growth Equity Retail Mutual Funds vs. Lipper Averages Premier Global | Regent Growth Growth MidCap SmallCap Growth! Lg- Cap (Lg Capj") (Multi Capj®) Growth) Growth —_Researchi®) |_ Core!) 2008 12 +06 10 04 7 | 423 YTD 4 462 +48 +05 460 | 466 oo 405 +80 +178 +44 4-123 an
Slide 24: Relative Performance - Retail Fixed Income
Relative Performance — Retail Fixed Income Retail Fixed Income Funds vs. Lipper Averages Bernstein ACMGI- Corporate Americas Govt Emerging High Short American Bondi) Income) Market Debt?) Yield!” Duration Plus‘) Income - OS!®) 2008 +04 25 05 03 04 Ad yD +04 06 +01 07 oo +03 1 43.0 38 47 “AA +03 2A o
Slide 25: Performance - Private Client
7 Performance — Private Client YTD 204 dr 3Yr 5Yr All Balanced Accounts +17 -05 +134 +46 +38 Global Balanced Benchmark? +18 04 +134 +28 +15 NOTE: The information nthe table i provided solely for ue in connaction with this presertaton ands not dese towards exiting orptertial snvasenet area het fance
Slide 26: Annualized Fee Base
Annualized Fee Base By Channel and Investment Orientation 6/30/04 vs. 6/30/03 $1,928 mm = $1,735 mm (in $ mitions) e004 = 6/30/03 erso4 = 6/3003 esos = @/30/03 Institutional Retail hist Private Client Management Growth myaiue Bed Income OP aseve 20
Slide 27: Trends in Headcount
Trends in Headcount 4,550 4,450 4,350 4,250 4,150 pce a 4,050 1 se “ane ies 48s os 3,950 [+2002 —— 2003 —=— 2004 ar
Slide 28: Alliance Capital (The Operating Partnership) Consolidated Balance Sheet
' Alliance Capital (The Operating Partnership) Consolidated Balance Sheet (in $ thousands, Unauetited) scone sre Ascote Cash and investments $1,228.08 $924,723 Cash and securities segregated 1108.15, 41285 804 Receivables, net 22136 200,075 Goodwil net| 2are6or 2B7e.687 Intangible assets, net 336.57
Slide 29: Alliance Capital (The Operating Partnership) Consolidated Cash Flow
Alliance Capital (The Operating Partnership) Consolidated Cash Flow (in $ thousands, Unauetited) scogme econ Cash Flows From Operating Actives: Net income 8 saz 8 207.19 Non-oach tems: ‘Amortization and depreciation: "Amertzation of deferred sales commies ions e219 ee ‘Amertizaton of deferred comper
Slide 30: Searchable text section of graphics
Searchable text section of graphics shown above [ GRA PHIC] Alliance Capital and Alliance Holding Second Quarter 2004 Review Lewis A. Sanders Gerald M. Lieberman Chief Executive Officer Chief Operating Officer July 27, 2004 [LOGO] [ GRA PHIC] Introduction The SEC adopted Regulation FD in October 200
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