Alliancebernstein Holding L.p. · NYSE:AB
Alliancebernstein Holding L.p — Q1 2009 Earnings Presentation
43 slides from Alliancebernstein Holding L.p's earnings presentation, Apr 23, 2009
Slide 1: First Quarter 2009 Earnings Review
Any forecasts in this material may not be realized. Information or opinions should not be construed as investment advice. Gerald M. Lieberman President & Chief Operating Officer Peter S. Kraus Chairman & Chief Executive Officer Robert H. Joseph, Jr. Chief Financial Officer April 22, 2009
Slide 2: 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 factors that could cause actual results to differ
Slide 3: Market Performance - US
*12 months ending March 31, 2009. Market Performance - US
Slide 4: Market Performance - Non-US
*12 months ending March 31, 2009. Source: MSCI (Morgan Stanley Capital International). Market Performance - Non-US
Slide 5: AllianceBernstein Relative Performance: 1Q09
< Relative performance across our suite of investment services was solid < Many services outperformed benchmarks and peer averages by several hundred basis points < Particularly strong performance in Growth equities < Positive performance in Fixed Income and Value equities AllianceBernstein Relative
Slide 6: Changes in Assets Under Management by Channel
Three Months Ended March 31, 2009 $ Billions NOTE: Percentages are calculated using AUM rounded to the nearest million. Changes in Assets Under Management by Channel
Slide 7: Changes in Assets Under Management by Investment Service
Three Months Ended March 31, 2009 $ Billions NOTE: Percentages are calculated using AUM rounded to the nearest million. Changes in Assets Under Management by Investment Service
Slide 8: Institutional Investments Highlights: 1Q09
< Sales of new mandates remain tepid overall for the quarter with a slight increase in March < Terminations primarily driven by performance and concentrated among newer client relationships < Pipeline of won but unfunded mandates down to $4 billion versus $8 billion at 4Q08 < Pursuing opportunities
Slide 9: Retail Highlights: 1Q09
< Net outflows improve significantly versus 4Q08 Ø Sales up and redemptions down sequentially Ø Improvement across all business units, most notably Asia (1) Transfers of certain client accounts were made among distribution channels resulting from changes in how these accounts are serviced by the fir
Slide 10: Private Client Highlights: 1Q09
(1) Transfers of certain client accounts were made among distribution channels resulting from changes in how these accounts are serviced by the firm. NOTE: Percentages are calculated using AUM rounded to the nearest million. Private Client Highlights: 1Q09 < Net outflows decreased modestly with sale
Slide 11: Alternative Investment Services AUM
($ Billions) The information in this display is provided solely for use in connection with this presentation and is not directed towards existing or potential hedge fund investors or investment advisory clients of AllianceBernstein. *Consists of Hedge Fund, Currency and Venture Capital services - -
Slide 12: Institutional Research Services Highlights: 1Q09
< Revenue down 11% Year over Year and sequentially < Revenue in both U.S. and Europe declined due to lower global volume and a lower base in Europe resulting from market depreciation < Best-ever results in European Institutional Investor survey < Six new sector analysts initiated coverage during 1Q;
Slide 13: Expense Reduction Initiatives
< Eliminated or deferred capital expenditures of approximately $150 million since the beginning of 2008 < Reduced headcount by nearly 1,000 staff members, down 17%, versus 3Q08 peak < Reduced our fixed compensation costs, i.e. salaries and fringes, by approximately $100 million on an annualized basi
Slide 14: AllianceBernstein First Quarter 2009 Revenues
NOTE: Percentages are calculated using revenues and expenses rounded to the nearest thousand. AllianceBernstein First Quarter 2009 Revenues
Slide 15: AllianceBernstein First Quarter 2009 Advisory Fees
NOTE: Percentages are calculated using AUM rounded to the nearest million and revenues to the nearest thousand. AllianceBernstein First Quarter 2009 Advisory Fees
Slide 16: AllianceBernstein Staff Levels
Expected 2Q09 Headcount down 17% versus 3Q08 peak and lowest since 2Q06 AllianceBernstein Staff Levels
Slide 17: AllianceBernstein First Quarter 2009 Operating Expenses
NOTE: Percentages are calculated using revenues and expenses rounded to the nearest thousand. AllianceBernstein First Quarter 2009 Operating Expenses
Slide 18: AllianceBernstein First Quarter 2009 Compensation & Benefits
NOTE: Percentages are calculated using expenses rounded to the nearest thousand. AllianceBernstein First Quarter 2009 Compensation & Benefits
Slide 19: Five-Quarter Deferred Compensation Net P&L Trend
$ Millions Five-Quarter Deferred Compensation Net P&L Trend
Slide 20: AllianceBernstein First Quarter 2009 Net Income
(1) "Operating Margin" = (Operating Income + Net Loss Attributable to Non-Controlling Interests)/Net Revenues NOTE: Percentages are calculated using revenues and expenses rounded to the nearest thousand. AllianceBernstein First Quarter 2009 Net Income
Slide 21: AllianceBernstein Holding Financial Results
NOTE: Percentages are calculated using income, earnings and expenses rounded to the nearest thousand. AllianceBernstein Holding Financial Results
Slide 22: Peter S. Kraus, Chairman & Chief Executive Officer
Peter S. Kraus Chairman & Chief Executive Officer Any forecasts in this material may not be realized. Information or opinions should not be construed as investment advice. April 22, 2009
Slide 23: ALLIANCEBERNSTEIN
7B ALLIANCEBERNSTEIN
Slide 24: ALLIANCEBERNSTEIN
7B ALLIANCEBERNSTEIN
Slide 25: Index Returns
Index S&P 500 Russell 1000 Growth Russell 1000 Value MSCI Emerging Markets MSCI EAFE MSCI World Barclays Aggregate Bond Retums in % through March 31, 2009. 1Q 09 (11.0) (4.1) (16.8) 0.9 (13.9) (11.9) 0.1 One Year (38.1) (34.3) (42.4) (47.1) (46.5) (42.6) 3.1 Annualized Three Years (13.1) (11.3) (15.
Slide 26: Relative Performance: Institutional Growth Equity (After Fees)
Relative Performance: Institutional Growth Equity (After Fees) (1)
Slide 27: Relative Performance: Institutional Value Equity (After Fees)
Relative Performance: Institutional Value Equity (After Fees) (1)
Slide 28: Relative Performance: Blend Strategies (After Fees)
Relative Performance: Blend Strategies (After Fees) (1)
Slide 29: Relative Performance: Institutional Fixed Income (After Fees)
Relative Performance: Institutional Fixed Income (After Fees) (1)
Slide 30: Absolute Performance: Private Client (After Fees)
Absolute Performance: Private Client (After Fees) (1)
Slide 31: Relative Performance: Retail Growth Equity (After Fees)
Relative Performance: Retail Growth Equity (After Fees) (1)
Slide 32: Relative Performance: Retail Value Equity (After Fees)
Relative Performance: Retail Value Equity (After Fees) (1)
Slide 33: Relative Performance: Retail Fixed Income (After Fees)
Relative Performance: Retail Fixed Income (After Fees) (1)
Slide 34: Relative Performance: Wealth Strategies (After Fees)
Relative Performance: Wealth Strategies (After Fees) (1)
Slide 35: Investment Performance: Delivering Results for Clients
Bernstein Value Equities Inception Date Inception- Mar2009 Alliance Growth Equities Inception Date AllianceBernstein. Past performance is no guarantee of future results. Source: Bloomberg, Citigroup, FTSE, JPMorgan Chase, Lehman Brothers, Merrill Lynch, MSCI, Nomura, Russell Investment Group, Scotia
Slide 36: AllianceBernstein Consolidated Balance Sheet
AllianceBernstein Consolidated Balance Sheet
Slide 37: AllianceBernstein Consolidated Statement of Cash Flows
AllianceBernstein Consolidated Statement of Cash Flows
Slide 38: Changes in Assets Under Management by Channel
Twelve Months Ended March 31, 2009 $ Billions NOTE: Percentages are calculated using AUM rounded to the nearest million. Changes in Assets Under Management by Channel
Slide 39: Changes in Assets Under Management by Investment Service
Twelve Months Ended March 31, 2009 $ Billions NOTE: Percentages are calculated using AUM rounded to the nearest million. Changes in Assets Under Management by Investment Service
Slide 40: AllianceBernstein Total Net Flows
AllianceBernstein Total Net Flows $ Millions
Slide 41: AllianceBernstein Net Flows by Distribution Channel
AllianceBernstein Net Flows by Distribution Channel $ Millions
Slide 42: AllianceBernstein Net Flows by Investment Service
AllianceBernstein Net Flows by Investment Service $ Millions
Slide 43: Trademark notice
AllianceBernstein® and the AB AllianceBernstein Logo are trademarks and service marks owned by AllianceBernstein L.P.
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