Alliancebernstein Holding L.p. · NYSE:AB

Alliancebernstein Holding L.p — Q1 2025 Earnings Presentation

32 slides from Alliancebernstein Holding L.p's earnings presentation, Apr 24, 2025

  1. Slide 1: First Quarter 2025 Review

    First Quarter 2025 Review April 24, 2025 Seth P. Bernstein, President & Chief Executive Officer Tom Simeone, Chief Financial Officer

  2. 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 fact

  3. Slide 3: Key Business Highlights First Quarter 2025

    Key Business Highlights First Quarter 2025 All Three Channels Grew Organically in 1Q, Generating +$2.7bn Firmwide Active Net Inflows 1 • Active fixed income & alts/MAS inflows totaled $1.0 & $4.2 billion, respectively, driven by muni SMAs & private alts • Active equity outflows –$2.5 billion, reflec

  4. Slide 4: Permanent Capital Flywheel: Strengthening our Partnership with EQH

    Permanent Capital Flywheel: Strengthening our Partnership with EQH EQH’s long-duration capital matched to AB’s differentiated capabilities unlocks combined opportunity Growth Avenues Target for AB Expand private assets 1 Permanent and grow EQH GA Capital Unlock Opportunity Scale insurance solutions

  5. Slide 5: Key Financial Highlights First Quarter 2025

    Key Financial Highlights First Quarter 2025 1Q25 1Q24 4Q24 AUM and Flows End of Period AUM $784.5 $758.7 $792.2 (USD Billions, Except Fee Rate) Average AUM $797.5 $738.9 $801.0 Equitable ("EQH") AUM $132.1 $123.2 $131.5 Private Markets AUM* $75.3 $62.7 $69.7 Gross Sales $36.1 $32.6 $33.6 Net Flows $

  6. Slide 6: Percentage of Assets Outperforming at Quarter-End

    Percentage of Assets Outperforming at Quarter-End Fixed Income One-Year Three-Year Five-Year 91 89 92 81 64 71 68 65 70 57 61 63 60 59 57 1Q:24 2Q:24 3Q:24 4Q:24 1Q:25 1Q:24 2Q:24 3Q:24 4Q:24 1Q:25 1Q:24 2Q:24 3Q:24 4Q:24 1Q:25 Equities One-Year Three-Year Five-Year 68 63 65 63 64 67 65 54 55 52 45

  7. Slide 7: Retail Highlights

    Retail Highlights Sales Tracking Record Annual Pace to Offset Redemptions Management Fees Relatively Stable Given Equity Backdrop USD Billions USD millions Gross Sales Gross Redemptions Net Flows Base Fees Performance Fees $26.6 $26.4 $25.7 $23.8 $23.2 $1 $0 $1 $14 $5.4 $4.2 $2.8 $3 $1.1 $0.9 $365 $

  8. Slide 8: Institutional Highlights

    Institutional Highlights Deployments into Private Alternatives Drive Organic Growth Pipeline AUM Highest in 7 Quarters Reflecting Solid Wins USD Billions Gross Sales Gross Redemptions Net Flows $ Billions Pipeline AUM (EoP) Fee Rate (Bps) $4.6 $16 $4.2 80 $3.3 $3.3 $13.5 $14 $2.0 70 $0.7 $11.5 $12 $

  9. Slide 9: Private Wealth Highlights

    Private Wealth Highlights Solid Advisor Productivity Drives Client Engagement Diversified Revenue Streams, Uncaptured in Base Fee Rate USD Billions USD millions Gross Sales Gross Redemptions Net Flows Base Fees Performance Fees Net Interest Margin $5.5 $5.8 $5.4 $5.2 $17 $4.7 $77 $0.5 $0.3 $0.8 $15

  10. Slide 10: Select Adjusted Financials and Ratios

    Select Adjusted Financials and Ratios Revenues 1Q25 1Q24 Percent ∆ 4Q24 Percent ∆ Base Fees* $782 723 8% $798 (2)% Performance Fees: Private Markets† 20 20 3% 67 (70)% Public Markets 19 7 n.m. 66 (71)% Bernstein Research Services — 96 n.m. — n.m. Investment Gains (11) 3 n.m. 6 n.m. Dividend & Intere

  11. Slide 11: Base Fee Rate Relatively Stable Through Recent Cycle

    Base Fee Rate Relatively Stable Through Recent Cycle Firmwide Base Fee Rate—Last Three Years Basis points, net of distribution costs Supportive 42 • Alts deployments • Rotation from MMKTs to FI 41 • Organic and AUM growth in Equity MFs, Offshore FI 40 39.5bps • Organic and AUM growth in Private Weal

  12. Slide 12: Large Portion of Recurring Performance-Related Fees, Driven by Privates

    Large Portion of Recurring Performance-Related Fees, Driven by Privates Annual Performance Fees—Private and Public Markets USD Millions • We now expect total FY25 performance fees of $90–$105 $227 million across private and public strategies • Our Private Markets platform, has accounted for ~2/3 of

  13. Slide 13: 33% Margin Target For 2025 Contingent on Flat AUM Levels

    33% Margin Target For 2025 Contingent on Flat AUM Levels Adjusted Operating Margin Path and FY25 Outlook Assumes average FY25 AUM levels same as 4Q24 +140bps 33.7% 33% YTD Margin Forecast FY25 Expansion Adjusted Margin As of 3/31/2025 Source: AB 1Q25 Earnings Review 13

  14. Slide 14: AB's Unique Value Proposition

    AB’s Unique Value Proposition Integrated asset and wealth manager with differentiated capabilities, partnerships and structure Differentiated Distribution Platform, with Proprietary-Plus Private Wealth Channel 1 Advantageous competitive positions in growing markets: APAC, US HNW, Global Insurance Di

  15. Slide 15: Appendix

    Appendix 1Q25 Earnings Review 15

  16. Slide 16: Retail Mutual Funds Relative Performance vs. Morningstar Averages

    Retail Mutual Funds Relative Performance vs. Morningstar Averages 1 Year 3 Year 5 Year 10 Year Relative Relative Relative Relative Retail Service (%) Percentile (%) Percentile (%) Percentile (%) Percentile Equity Large Cap Growth (3.6) 86 0.4 50 (0.4) 57 1.4 20 Concentrated Growth (6.2) 93 (4.5) 93

  17. Slide 17: Retail Mutual Funds Relative Performance vs. Morningstar Averages

    Retail Mutual Funds Relative Performance vs. Morningstar Averages 1 Year 3 Year 5 Year 10 Year Service Relative (%) Percentile Relative (%) Percentile Relative (%) Percentile Relative (%) Percentile Fixed Income American Income 0.5 48 (0.4) 56 (0.2) 55 0.2 40 European Income (0.8) 72 (0.3) 59 0.9 30

  18. Slide 18: Institutional Composite Relative Performance vs. Benchmarks

    Institutional Composite Relative Performance vs. Benchmarks Service 1 Year 3 Year 5 Year 10 Year Equity US Small Cap Growth (2.2) (2.4) (0.9) 3.3 Concentrated Global Growth (8.5) (6.7) (5.8) (0.9) Global Core (0.8) (0.9) (2.2) 0.2 International Strategic Core 8.3 2.0 0.1 1.9 Sustainable Global Thema

  19. Slide 19: Assets Under Management: 1Q25

    Assets Under Management: 1Q25 (US $ Billions) March 31, 2025 December 31, 2024 Institutions Private Wealth Retail Total Total Equity Actively Managed $47 $52 $150 $249 $263 Passive (1) 24 6 35 66 68 Total Equity 71 58 186 315 331 Fixed Income Taxable 118 20 74 212 210 Tax-Exempt 2 30 46 78 76 Passiv

  20. Slide 20: Three Months Ended 3/31/25: AUM Roll-Forward by Distribution Channel

    Three Months Ended 3/31/25: AUM Roll-Forward by Distribution Channel In US $ Billions Beginning Sales/New Redemptions/ Net Cash Net Investment Net End Investment Service: of Period Accounts Terminations Flows Flows Transfers Performance Change of Period Institutions US $160.5 $3.6 $(0.7) $(0.2) $2.7

  21. Slide 21: Three Months Ended 3/31/25: AUM Roll-Forward by Investment Service

    Three Months Ended 3/31/25: AUM Roll-Forward by Investment Service In US $ Billions Beginning Sales/New Redemptions/ Net Cash Net Investment Net End Investment Service: of Period Accounts Terminations Flows Flows Performance Change of Period Equity Active US $186.3 $10.3 $(9.9) $(0.7) $(0.3) $(12.7)

  22. Slide 22: Three Months Ended 3/31/25: Active vs. Passive Net Flows

    Three Months Ended 3/31/25: Active vs. Passive Net Flows Actively Passively Managed Managed (1) Total Equity $(2.5) $0.2 $(2.3) Fixed Income 1.0 (0.5) 0.5 Alternatives/MAS (2) 4.2 — 4.2 Total $2.7 $(0.3) $2.4 (1) Includes index and enhanced index services. (2) Includes certain multi-asset solutions

  23. Slide 23: Assets Under Management By Region

    Assets Under Management By Region Institutional Geographic Breakdown Retail Geographic Breakdown Japan Other Other APAC ex 3% 3% 2% Japan 6% EMEA 9% EMEA Japan 11% 12% APAC ex Japan US US 18% 59% 77% $324.1B $324.1B As of March 31, 2025 By Client Domicile Percentages may not add up to 100% due to ro

  24. Slide 24: First Quarter 2025 GAAP Income Statement

    First Quarter 2025 GAAP Income Statement Income Statement (in US $ Millions) 1Q25 1Q24 %∆ 4Q24 %∆ Base Fees $818 $754 8% $829 (1)% Performance Fees 37 30 24 % 169 (78)% Bernstein Research Services 0 96 (100)% 0 —% Distribution Revenues 199 166 20 % 199 —% Dividends & Interest 34 45 (23)% 38 (9)% Inv

  25. Slide 25: First Quarter 2025 GAAP Income Statement

    First Quarter 2025 GAAP Income Statement In US $ Millions (except EPU) 1Q25 1Q24 %∆ 4Q24 %∆ Net Revenues $1,080 $1,104 (2)% $1,258 (14)% Operating Expenses 844 862 (2)% 940 (10)% Operating Income 236 242 (2)% 318 (26)% Net Income Attributable to AB Unitholders 221 218 1% 300 (26)% AB Holding GAAP Ne

  26. Slide 26: First Quarter 2025 AB Holding Financial Results

    First Quarter 2025 AB Holding Financial Results In US $ Millions (excluding per Unit amounts) 1Q25 1Q24 %∆ 4Q24 %∆ AB Net Income Attributable to AllianceBernstein $221 $218 1% $300 (26)% Weighted Average Equity Ownership Interest 37.5 % 39.6 % 38.9 % AB Holding Equity in Net Income Attributable to A

  27. Slide 27: First Quarter 2025 Adjusted Advisory Fees

    First Quarter 2025 Adjusted Advisory Fees 1Q25 1Q24 %∆ 4Q24 %∆ Ending AUM ($ Billions) $785 $759 3% $792 (1)% Average AUM ($ Billions) $798 $739 8% $801 —% By Fee Type ($ Millions): Adjusted Base Fees $782 $723 8% $798 (2)% Adjusted Performance Fees 39 27 47 % 133 (70)% Total $821 $750 9% $931 (12)%

  28. Slide 28: First Quarter 2025 GAAP to Non-GAAP Reconciliation

    First Quarter 2025 GAAP to Non-GAAP Reconciliation In US $ Thousands Adjustments Distribution Pass Deferred Pension NCI/ Acquisition- Equity Related Through Comp. Obligation Consol Related Method Interest GAAP Payments Adjustments Inv. Settlement VIE Expenses Investment Expense Non-GAAP (A) (B) (C)

  29. Slide 29: Fourth Quarter 2024 GAAP to Non-GAAP Reconciliation

    Fourth Quarter 2024 GAAP to Non-GAAP Reconciliation In US $ Thousands Adjustments Distribution Pass Deferred Pension NCI/ Real Estate Acquisition- Equity Related Through Comp. Obligation Consol Credits Related Method Interest GAAP Payments Adjustments Inv. Settlement VIE (Charges) Expenses Investmen

  30. Slide 30: First Quarter 2024 GAAP to Non-GAAP Reconciliation

    First Quarter 2024 GAAP to Non-GAAP Reconciliation Adjustments Distribution Pass Deferred NCI/ Real Est. Acq Related Through Comp. Consol Credits Related Interest GAAP Payments Adj. Inv. VIE (Charges) Expenses Expense Non-GAAP (A) (B) (C) (E) (F) (G) (I) Investment advisory and services fees $ 784,4

  31. Slide 31: AB Adjusted Financial Results Reconciliation

    AB Adjusted Financial Results Reconciliation Notes to Consolidated Statements of Income and Supplemental Information (Unaudited) A. We exclude all of the company’s distribution revenues, which are recorded as a separate line item on the consolidated statement of income, as well as a portion of inves

  32. Slide 32: Trademark notice

    The [A/B] logo and AllianceBernstein® are registered trademarks used by permission of the owner, AllianceBernstein L.P. ©2025 AllianceBernstein L.P.

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