Morgan Stanley · NYSE:MS
Morgan Stanley — Merger or Acquisition (October 2020)
21 slides from Morgan Stanley's merger presentation, Oct 8, 2020
Slide 1: Advancing Our Strategic Transformation: Morgan Stanley Acquisition of Eaton Vance
Advancing Our Strategic Transformation: Leading Asset Manager Positioned for Growth Morgan Stanley Acquisition of Eaton Vance October 8, 2020
Slide 2: Notice: Important Information about the Transaction
2 Notice Important Information about the Transaction and Where to Find It In connection with the proposed transaction between Morgan Stanley and Eaton Vance Corp. (“Eaton Vance”), Morgan Stanley and Eat on Vance will file relevant materials with the Securities and Exchange Commission (the “SEC”), in
Slide 3: Notice: Forward-Looking Statements
3 Notice Forward - Looking Statements This communication contains “forward - looking statements” within the meaning of the federal securities laws, including Section 27 A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. In this context, f
Slide 4: Strategic Rationale Advances Morgan Stanley's Strategic Transformation
4 Strategic Rationale Advances Morgan Stanley’s Strategic Transformation with Three World - Class Businesses of Scale 1 Right Time and Right Partner : Combining Two Strong Performing Managers 2 Delivers Long - Term Financial Benefits with Low Execution Risk 7 Creates a Leading Asset Manager with Hig
Slide 5: Advances Morgan Stanley's Strategic Transformation
5 Advances Morgan Stanley’s Strategic Transformation 1 2010 – 2014 2015 – 2019 Institutional Securities Wealth and Investment Management 26% 74% 2010 51% 49% 2019 The Evolution… …Towards Balance Sheet Light and More Durable Lower - Risk Sources of Revenue (1) Acquire and Integrate E*TRADE and Eaton
Slide 6: Three World-Class Businesses of Scale
6 Three World - Class Businesses of Scale 1 Institutional Securities Wealth Management Investment Management 11% 14 % 2014 2019 Total ISG Wallet Share (%) (1)(2)(3)(4) 2.0 3.3 2014 Pro Forma Clients Assets ($ Tn ) (6) 0.4 1.2 2014 Pro Forma Assets Under Management ($ Tn ) (9) (7) (10) ~$20Bn Net Rev
Slide 7: Unmatched Reach of Wealth and Investment Management
7 Unmatched Reach of Wealth and Investment Management Drives Balanced Business Mix and Provides Enormous Ballast #1 by Total Net Revenues (1) Top 5 by Client Assets (1) Largest Wealth and Investment Management Platforms… Wealth and Investment Management Net Revenues ($ Bn ) (2) Wealth and Investment
Slide 8: Eaton Vance: High Quality, Fast Growing Asset Manager
8 Eaton Vance : High Quality, Fast Growing Asset Manager Pioneer in Responsible Investing Leader in Custom Separately Managed Accounts Broad - Based Equit y and Fixed Income M anager Strong Presence in Areas Benefitting from Secular Growth Powerful U.S. Retail Distribution (5)(6) High - Quality Inve
Slide 9: Right Time and Right Partner: Combining Two Strong Performing Managers
9 $1.2Tn Pro Forma AUM (3)(4) Private and Public Alpha Solutions Fixed Income & Liquidity Right Time and Right Partner: Combining Two Strong Performing Managers 2 Complementary Platforms in Investment Capabilities 21% 19% (3%) Morgan Stanley IM Eaton Vance Peer Average Long - Term Net Flows (%) (201
Slide 10: Leading Asset Manager with Complementary Platforms in Secular Growth Areas
10 Strong Capability Capability Eaton Vance MSIM Pro Forma Limited Capability Creates a Leading Asset Manager with High Quality Complementary Platforms in Key Secular Growth Areas Concentrated Active Equity x Public Equities Fastest Growing Concentrated Active Equity Platform (2) Real Assets, Privat
Slide 11: Adds Customization and Sustainability Franchises Positioned for Growth
11 Morgan Stanley Workplace Example: Significant Opportunities Through Workplace Corporate and Participant Relationships 195 311 2016 3Q 2020 Adds Customization and Sustainability Franchises Positioned for Growth Strong Asset Growth with Multiple Acceleration Opportunities via Morgan Stanley 4 Leade
Slide 12: Delivers Quality Scale and Fills Gaps in Fixed Income Business
12 Delivers Quality Scale and Fills Gaps in Value - Add Fixed Income Business 5 ~$57Bn in Municipal Income Assets 7 th Largest Global Liquidity Fund Manager ~350 ~100 ~450 Eaton Vance (1) Morgan Stanley Investment Management (2)(3) Pro Forma Fixed Income and Liquidity Assets Under Management ($ Bn )
Slide 13: Enhances Client Reach Combining U.S. Wealth and International Distribution
13 Enhances Client Reach by Combining Leading U.S. Wealth and International Distribution Franchises 6 ~65% ~35% Gross Sales (2) ~95% ~5% North America International Morgan Stanley Investment Management Eaton Vance Strong International Distribution and Extensive Global Reach with Morgan Stanley Prese
Slide 14: Delivers Long-Term Financial Benefits with Low Execution Risk
14 Delivers Long - Term Financial Benefits with Low Execution Risk 7 ROTCE / TBVPS (5) • ROTCE accretion of ~100bps offsets dilution to tangible book value per share EPS (4) • Breakeven to EPS immediately and marginally accretive thereafter with fully phased in cost synergies • Cost savings of $150M
Slide 15: Strategic Rationale Advances Morgan Stanley's Strategic Transformation
15 Strategic Rationale Advances Morgan Stanley’s Strategic Transformation with Three World - Class Businesses of Scale 1 Right Time and Right Partner : Combining Two Strong Performing Managers 2 Delivers Long - Term Financial Benefits with Low Execution Risk 7 Creates a Leading Asset Manager with Hi
Slide 16: Notes referring to Slide 5
16 These notes refer to the financial metrics and/or defined term presented on Slide 5 1. Balance Sheet Light, as it relates to the Morgan Stanley’s Wealth Management segment, refers to a lower Risk Weighted Assets (‘RWAs’) intensity. Durable sources of revenues represent revenues associated with fe
Slide 17: Notes referring to Slide 6
17 These notes refer to the financial metrics and/or defined term presented on Slide 6 9. Assets Under Management (AUM) represents Morgan Stanley’s Investment Management AUM on the Firm’s 2020 2Q Form 10 - Q. 10. Pro Forma Assets Under Management represents the addition of Morgan Stanley’s Investmen
Slide 18: Notes referring to Slides 8 and 9
18 These notes refer to the financial metrics and/or defined term presented on Slide 8 5. Provider of Individual Separate Accounts Ranking based on Cerulli Lodestar’s Separate Managed Account Industry Manager Leaderboard as of June 30, 2020. 6. Penetration represents a measure of advisors included i
Slide 19: Notes referring to Slides 10 and 11
19 These notes refer to the financial metrics and/or defined term presented on Slide 10 3. Fixed Income and Liquidity Scaled Platform for Morgan Stanley includes strategies reported under the "Fixed income" and "Liquidity" categories as of June 30, 2020 in th e Firm’s 2020 2Q Form 10 - Q. For Eaton
Slide 20: Notes referring to Slides 13 and 14
20 These notes refer to the financial metrics and/or defined term presented on Slide 13 1. Provider of Individual Separate Accounts Ranking based on Cerulli Lodestar’s Separate Managed Account Industry Manager Leaderboard as of June 30, 2020. 2. Gross Sales represents gross sales from long - term as
Slide 21: Advancing Our Strategic Transformation: Morgan Stanley Acquisition of Eaton Vance
Advancing Our Strategic Transformation: Leading Asset Manager Positioned for Growth Morgan Stanley Acquisition of Eaton Vance October 8, 2020