Alliancebernstein Holding L.p. · NYSE:AB
Alliancebernstein Holding L.p — Alliance Capital Management Holding — Q4 2005 Earnings Presentation
45 slides from Alliancebernstein Holding L.p's earnings presentation, Jan 26, 2006
Slide 1: Fourth-Quarter 2005 Review
2. = AllianceCapital K ww alliancecapital com January 25, 2006 Fourth-Quarter 2005 Review Lewis A. Sanders Gerald M. Lieberman ‘Chairman & Chief Executive Officer President & Chief Operating Officer
Slide 2: Introduction and Forward-Looking Statements
Introduction In gt of Regulation FO, management wil be ited in responding to inquires fom investors r analysis in» nompubli forum. Forward-Looking Statements Certain statements in this presentation ate Yxward-loching statements” within the meaning of the Pivte Secures Ligation Reform Act of 1995, ‘S
Slide 3: Alliance Capital — Fourth Quarter Highlights
Alliance Capital — Fourth Quarter Highlights Strong global equity capital markets ™ Competitive investment performance @ Impressive Growth Equity performance @ Style Blend services achieved strong performance Organic growth in all channels and investment services mincreased market share and revenues
Slide 4: Market Performance - Non-U.S.
Market Performance - Non-U.S. 12 Months* m40 2005 30 2005 MSC! Emerging Markets MSCIEAFE MSCI WORLD ‘x2 arg eng be 31,2005 Setcenser AlfianceCapital A
Slide 5: Market Performance - U.S.
Market Performance - U.S. 7.1% 5.3% 4.0% 3.9 3.0% a 1.3% 112 Months* 40 2005 30 2005 4.9% 2.1% ame 2.4% Russell 1000 Growth Russell 1000 Value ‘2rertnseg Os 3, 2005 ‘Sate Fra tel Crary, etn Baer, sn Stn 8 Fors HE or S&P 500 Lehman Aggregate Bond AlfianceCapital A
Slide 6: Changes in Assets Under Management (Three Months)
Changes in Assets Under Management By Investment Service ‘Three Months Ended December 31, 2005 In $ Millions Value Growth Fixed. Indext Equity" Equity income" Structured Total Beginning of Period $225,985 $196,838 $162,825 $29,818 $555,466 Sales/New accounts 8,647 8,697 4,798 105 22,245 Redemptions/
Slide 7: Changes in Assets Under Management (Twelve Months)
Changes In Assets Under Management By Investment Service ‘Twelve Months Ended December 31, 2005 In $ Millions. Value Growth = Fixed——sIndex/ Equity Equity income" structured Total Beginning of Period $192,599 $123,267 $193,364 $29,534 $538,764 Sales/New accounts, 34,629 27,449 (18,107 483 80,668 Red
Slide 8: Institutional Investment—Fourth Quarter Highlights
Institutional Investment— Fourth Quarter Highlights = Continuing strong net inflows into Global ‘and International services Flows welldiversified geographically (North America, EMEA, Asia Pacific) = Continuing strong flows into Style Blend 2006 Initiatives Build-up of infrastructure in Asia-Pacific
Slide 9: Retail—Fourth Quarter Highlights
Retail— Fourth Quarter Highlights = Non-U.S. net inflows consistently strong Ended December 31, 2005 (In $ Billions) 3months — 12months Improving U.S. fund sales reduced net outflows Beginning AUM Ss 140 $ 164 = Separately Managed Account business Net Flows 1 1 strengthened Dispositions - = Wealth S
Slide 10: Private Client—Fourth Quarter Highlights
Private Client— Fourth Quarter Highlights Net inflows moderated due to seasonal Ended December 31, 2005 factors (In $ Billions) 3months — 12months Financial Advisors up 8% to 263 since Beginning AUM s 3 S$ 68 3005 Net Flows 1 7 = Current expansion plans remain on track © Atlanta and Denver opened in
Slide 11: Institutional Research Services—Fourth Quarter Highlights
Institutional Research Services— Fourth Quarter Highlights m Higher U.S. revenues driven by higher market share and volume © Market share gains result from research quality and success of portfolio and algorithmic trading products © Increased market volumes ‘= Continued industry-wide pricing decline
Slide 12: 7.4% Growth in Assets
7.4% Growth in Assets (1) But... In $ Billions By Client Domicile Get genaes. ceuamanetes $579 Billion at Dec 31, 2005 Equity $414 $539 Billion at Dec 31, 2004 Equity $346 64% By Service AlfianceCapital A
Slide 13: Style Blend Services Up Over 60%
Style Blend Services Up Over 60% $579 Billion at $508 Billion at December 31, 2005 December 31, 2004" Equity Fixed $163, $168 Value Component of Index! Blend Structured sar $30 Growth Component of 42 Component of Blend $43 (Betas seontone 1g OF Encarta roadreane Saves AllianceCapital AX.
Slide 14: Alliance Capital Fourth Quarter Revenues
Alliance Capital Fourth Quarter Revenues In $ Millions Percent Revenues: 42005 = 42004 Change Distribution 7 110 12.1% Institutional Research Services 84 79 58% Other 69 51 35.9% Total “S921 S833, 10.6% AlfianceCapital A
Slide 15: Fourth Quarter Advisory & Transaction Fees
Alliance Capital Fourth Quarter Advisory & Transaction Fees In $ Millions 492005 By Fee Type: Base Fees $ 576 Transaction Charges FY Performance Fees 92 Total By Channel: Institational $ 266 Pavate Cent 225 Retail 180 Total 49.2004 $ 489 26 78 Percent Change 178% 86.5% 18.8% 13.3% 30.7% 93% 2.0% 133
Slide 16: Alliance Capital Fourth Quarter Revenues
Alliance Capital Fourth Quarter Revenues In $ Millions Percent 402005 402004 Change Revenues: Advisory & TransactionFees $ 671 $ 593 13.3% Institutional Research Services 84 79 5.8% Other 69 51 35.9% Total 921 $833, 10.6% 16 MOTE Pecerage ae abusing revert nd eperes tense ae eran AlfianceCapital A
Slide 17: Fourth Quarter Net Distribution Activity
7 Alliance Capital Fourth Quarter Net Distribution Activity In $ Millions Distribution Revenues Distribution Expense: Distribution Plan Payments Amort of Def Sales Comm Net Distribution Revenue/ (Expense) 4Q 2005 $97 29 38 2004 110 Percent Change “12.1% 1m Lower distribution revenues and distributio
Slide 18: Fourth Quarter Other Revenues
Alliance Capital Fourth Quarter Other Revenues In $ Millions ‘Shareholder Servicing Fees Investment Gains & Losses Dividend & Interest, net ther, net Total Other Revenues 1g NOTE Pecertines ne cues ung rvenun nd eperesteundnstotne cet eran 492005 4.2004 $ 24 6 24 15 $ 26 8 2 4 Percent 81.8% NM 35.9%
Slide 19: Fourth Quarter Expenses
Alliance Capital Fourth Quarter Expenses In $ Millions Percent 402005 40.2004 Change Promotion & Servicing 147 181 18.4% General & Administrative 110 114 42% Interest 6 5 22.7% ‘Amortization of Intangibles 5 5 - Total 593 2.9% 1g. NTE Poceone ecto rg roens anderen dot ee ad AlfianceCapital A
Slide 20: Fourth Quarter Compensation & Benefits
Alliance Capital Fourth Quarter Compensation & Benefits In $ Millions 402005 402004 Base Compensation $s 9 $ 84 Incentive Compensation 145 124 Commissions 4 59 Fringes & Other 32 24 Total S341 _S 288 Percent ‘Change 74% 19.4% 26.4% 36.4% 18.7% 2p NOTE: Pecetons we catuteduing eens td eperene tones e
Slide 21: Fourth Quarter Expenses
Alliance Capital Fourth Quarter Expenses aa Percent In $ Millions eT Gace Employee Comp &Benefts $ 341 $ 268 18.7% {due to disposition of CMS assets ‘and lower DSC amortization 1m Private Client and London facilites up, miscellaneous other down Interest 6 5 22.7% Amortization of Intangibles 5 5 z3 T
Slide 22: Fourth Quarter Net Income
2 Alliance Capital Fourth Quarter Net Income In $ Millions Revenues Expenses Income before Taxes Income Taxes Netincome Pre-Tax Margin * “eins neon mo pecerige reverie 33.8% 49 2004 $ 833 Percent Change 10.8% 2.9% 297% 79.5% 27.0% m Higher effective tax rate due to increased earrings innon-U S. subs
Slide 23: Alliance Holding Financial Results
2 Alliance Holding Financial Results In $ Millions (except per unit amounts) 40.2005 40.2004 Alliance Capital: Net Income S$ 290 $ 228 Weighted Average Equity Ownership Interest 31.8% 31.3% Alliance Holding: Equity in Eamings S$ 92 $ 72 Income Taxes Zz 7 Net Income $8 $ 65 Net Income - diluted $8 $
Slide 24: AllianceBernstein
/B ALLIANCEBERNSTEIN
Slide 25: Investment Services
Investment Services 73 ALLIANCEBERNSTEIN 7B 7B AB 7B ALLIANCE BERNSTEIN ALLIANCEBERNSTEIN | ALLIANCEBERNSTEIN Growth Equities Value Equities Style Blend Fixed Income 7B BERNSTEINRESEARCH 6
Slide 26: Client-Service Units
Client-Service Units 7B ALLIANCEBERNSTEIN 7B 7B B ALLIANCEBERNSTEIN ALLIANCEBERNSTEIN BERNSTEIN tntutional ovement Tavestments <iobat Wealth Management 7B ACMBERNSTEIN 6
Slide 27: Appendix
APPENDIX AlfianceCapital A
Slide 28: Market Environment
Market Environment Market Environment MSCI Emerging Markets MSCI EAFE MSCI World Russell 1000 Growth Russell 1000 Value S&P 500 Lehman Aggregate Bond een Weigh Deventer 3, 2005 Annualized Cumulative 4005 ‘One Year Three Years, Three Years 72 340 37.9 162.1 44 135 237 89.2 34 95 187 67.2 3.0 53 13.2
Slide 29: Relative Performance: Institutional Growth Equity (After Fees)
Relative Performance: Institutional Growth Equity (After Fees)‘") 4005 One Year Three Years Five Years 10 Years Institutional Equity Composites vs. Benchmarks Global Emerging Largecap US. Midcap SmallCap IntlLgCap Research Markets Growin ® Growth® Growth Growth® Growth® Growth Growth ® a7 27 29 20 0
Slide 30: Relative Performance: Institutional Value Equity (After Fees)
0 Relative Performance: Institutional Value Equity (After Fees)() Institutional Equity Composites vs. Benchmarks us. us. Emerging Strategic Diversified International Global Markets Value ® Value ® Value® Value“ ~—_Value ® 4005 03 of 04) 06) 23) One Year 17 0.8) 55 43 69) Three Years 02 0.8) 56 38 92
Slide 31: Relative Performance: Style Blend Services (After Fees)
31 Relative Performance: Style Blend Services (After Fees)(") Blend Equity Composites vs. Benchmarks International Emerging Markets US. Style Global Style Style Style Blend® ‘Blend ® Blend ® Blend” 4005 17 0s 04 (15) One Year 60 65 22 43) Three Years 24 _ (04) 55 Since Inception 1.3 35 22 87 NOTE et
Slide 32: Relative Performance: Institutional Fixed Income (After Fees)
2 Relative Performance: Institutional Fixed Income (After Fees)(1) Institutional Fixed Income Composites vs. Benchmarks Core Core Corp High Strategic Core Plus® Mortgage ® Bonds“ yield® Global Plus” 4005 O41 4) 0 00 03) 0.0 One Year 03 (0.4) (0.9) 02 0.0) 02 Three Years 0.6 03 02 @3) 07 12 Five Year
Slide 33: Absolute Performance: Private Client (After Fees)
Ey Absolute Performance: Private Client (After Fees)‘ Annualized 40.05 Year 3 Year ‘SYear All Balanced Accounts ® 25% 8.1% 13.1% 65% Global Balanced Benchmark 1.9% 5.7% 11.7% 3.5% S&P 500 21% 49% 14.4% 0.6% NOTE The cman bi a oie er ue canon win sree ani receded tg eter ‘ester oar let Absece Capt ()
Slide 34: Relative Performance: Retail Growth Equity (After Fees)
Relative Performance: Retail Growth Equity (After Fees)(") Retail Mutual Funds vs. Lipper Averages Global Large Cap MidCap Research —_—Regent Growth® _Growth® Growth Growth® _Equity® 4005 34 20 32 0.4) 24 ‘One Year 80 28 4) 56 54 Three Years 1.9 20 95 3.0 70 Five Years (0.9), 14 36 _ 33 10 Years 04
Slide 35: Relative Performance: Retail Value Equity (After Fees)
5 Relative Performance: Ret Value Equity (After Fees)() Retail Mutual Funds vs. Lipper Averages Growth & SmallMid Cap intl Value® Income® value — value ® Global Value © 4005 04) 1.0 04 09 One Year 03) (9) (3) 28 Three Years 0.5 02 02 34 Five Years __ a.) as = 10 Years 17 (8) 02 04 NOTE Te erten at o
Slide 36: Relative Performance: Wealth Strategies (After Fees)
38 Relative Performance: Wealth Strategies (After Fees)(”) Retail Mutual Funds vs. Momingstar Averages Wealth Balanced Wealth Preservation ” Weaith Appreciation “! 4005 05 13 20 One Year 13 24 54 Since Inception © 14 15 34 OTE: Te rato ni at ovis sly ten ccrcton whe een ai et recteowma ets pert eset
Slide 37: Relative Performance: Retail Fixed Income (After Fees)
a Relative Performance: Retail Fixed Income (After Fees)(") Retail Fixed Income Funds vs. Lipper Averages ACMGI- ‘Americas Emerging Short American Corporate Govt Market High Duration Income— Bond” Income Debt’ Yiela® Plus offshore 4005 03 23 00 3) 1) 08 ‘One Year 03) 119 (18) 5) 0.2) 49 Three Years
Slide 38: Investment Performance: Delivering Results for Clients
Investment Performance: Delivering Results for Clients Annualized Performance Premiums Inception Inception Inception Incopton- Value Product Dato” Doc 2005 Growth Product Dato” Dec 2005 FE os siege vate ers aaS US Large Cap Growth e798 FE us divested Value Jun 5 Us smat cap Growth Dem Sa Internation
Slide 39: Changes in AUM by Channel (Three Months)
2 Changes in Assets Under Management by Channel ‘Three Months Ended December 31, 2005 In $ Millions, Beginning of Period Sales/New accounts Redemptions/Terminations Cash flow Unreinvested dividends Net long-term inflows Disposition Transfers Market appreciation End of Period % Total (end of period)
Slide 40: Changes in AUM by Channel (Twelve Months)
40 Changes In Assets Under Management by Channel ‘Twelve Months Ended December 31, 2005 In$ Milions: Institutional Private Investment Retail Client Total Beginning of Period $311,268 $163,552 $63,954 $538,764 SalesiNew accounts 30534 30,373 10.761 80,668 Redemptions/Terminations (19.224) (27.531) (2
Slide 41: Consolidated Balance Sheet
a Alliance Capital Consolidated Balance Sheet In § Thousands Assets Cash and investments Cash and securities, segregated Receivables, net Goodwill, net Intangible assets, net Deferred sales commissions, net (Other (incl. furniture & equipment) Total Assets Liabilities and Partners’ Capital Liabiltes
Slide 42: Consolidated Cash Flow
a Alliance Capital Consolidated Cash Flow In $ Thousands, Unaudited Cash Flows From Operating Activities Netincome Non-cash items: ‘Amarizaton and depreciation ‘Arnortzaton of deterred sales commissions ‘Arnortizaton of deferred compensation Depreciation and ether amortization Other, net Changes in
Slide 43: Alliance Capital Investment Management Services
cy Alliance Capital Investment Management Services Alliance Capital provides diversified investment management and related services globally to a broad range of clients 1. Institutional Investment Management services consisting of investment management services to institutional investors, including
Slide 44: Alliance Capital Investment Management Services (continued)
Alliance Capital Investment Management Services (continued) 3. Private Client services consisting of investment management services provided to private clients, including high-net-worth individuals, trusts and estates, charitable foundations, partnerships, private and family corporations and other e
Slide 45: Searchable text section of graphics shown above
Searchable text section of graphics shown above [G RAPHIC] www.alliancecapital.com [LOGO] January 25, 2006 Fourth-Quarter 2005 Review Lewis A. Sanders Gerald M. Lieberman Chairman & Chief Executive Officer President & Chief Operating Officer Any forecasts or opinions in this material may not be real
Alliance Capital Management Holding — Q4 2005 Earnings Presentation on 6ix