Alliancebernstein Holding L.p. · NYSE:AB
Alliancebernstein Holding L.p — Alliance Capital Management Holding — Q3 2005 Earnings Presentation
44 slides from Alliancebernstein Holding L.p's earnings presentation, Oct 27, 2005
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Slide 6: Alliance Capital Relative Investment Performance
Alliance Capital Relative Investment Performance Overall, investment returns for our institutional, retail and private clients were excellent, especially in our non-U.S. services Growth Equities continue to outperform mValue retums remain quite good mStyle Blend services continue to deliver excellen
Slide 7: Changes in Assets Under Management
Changes in Assets Under Management By Investment Service ‘Three Months Ended September 30, 2005 In$ Millions Value Growth Fixed -—ndex! Equity Equity Income Structured Total Beginning of Period $202,160 $122,841 $162,231 $28,721 $515,953 ‘SalesiNiew accounts 966s 8433, 5075 113° -23,206 Redemptions/
Slide 8: Changes In Assets Under Management
Changes In Assets Under Management By Investment Service ‘Twelve Months Ended September 30, 2005, In $ Milions. Value Growth Fixed index! Equity” Equity” Income Structured Total Beginning of Period $167,485 $113,403 $181,439 $27,132 $489,459 Sales Mew accounts 33014 23636-25510 574 62734 Redemptions
Slide 9: Institutional Investment Management—Third Quarter Highlights
Institutional Investment Management— Third Quarter Highlights '& Strong net inflows into Global (in Bilions) and International services Beginning AUM 1m Style Blend Equity services as accounted for 25% of new ate mandates Market Appreciation 1& High level of fundings into global Eat services resulte
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Slide 11: Private Client Asset Management—Third Quarter Highlights
Private Client Asset Management— Third Quarter Highlights 1m Net flows accelerated (in Bitions) 1 Financial Advisors up 7% to 255 Beginning AUM since 20 05; 32% YTD Net Flows = Current expansion plans remain ontrack Market Appreciation © Atlanta and Denver to open Ending AUM in 40.05; San Diego to _
Slide 12: Institutional Research Services—Third Quarter Highlights
Institutional Research Services— Third Quarter Highlights m Higher U.S. revenues driven by higher market share and volume; nor-U.S. organic growth continues at a double-digit rate ‘@ Market share gains result of research quality and success of portfolio and algorithmic trading products © Increased m
Slide 13: Diversity in Breadth of Services
Diversity in Breadth of Services Growth $137 Billion Global us. & Int $60 Fixed Income $163 Billion Global & intl US. 33% [SS $555 Billion at Sep 30, 2005 Equity $390 $461 Billion at Sep 30, 2004 (’) Equity $306 Value $226 Billion Global & Intl Index/Structured $29 Billion ® Global & Int Us. Allianc
Slide 14: Growth in Global Assets & Clients
Growth in Global Assets & Clients In$ Bilions By Client Domicile us. $555 Billion at ‘September 30, 2005 se any coum et acts Non.us. Global UP 35% ‘intl uP EO% ‘$461 Billion at ‘September 30, 2004 0 By Service 235 AltianceCapital AY
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Slide 16: Alliance Capital Third Quarter Revenues
Alliance Capital Third Quarter Revenues In Millions “In $ Billions Percent “Ending UME S585 S409 19.5% | Marat appreciation and postive flows across {al channels, party offset by sale of Cash "Average AUR S587 S482, 11489 Management Serces Revenues: Distroution cy 108 -124% Insttutlonal Research Ser
Slide 17: Alliance Capital Third Quarter Advisory and Transaction Fees
Alliance Capital Third Quarter Advisory and Transaction Fees In $ Milions Percent 302005 30.2004 Change By Fee Type: Bose Fees $58 § 470 48% Transaction Charges 4 2 813% Performance Fees 8 4 853% Total er Te wm By Channel: Inston $ 2220 $ ter 227% Retail 189 178 48% Private Chet 159 wo 13.2% Total a
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Slide 19: Alliance Capital Third Quarter Net Distribution Activity
Alliance Capital Third Quarter Net Distribution Activity In $ Milions Percent 32005 32004 Change Distibution Revenues S95 $109 12.4% —mLower distribution revenues and distribution plan payments primarily Distibution Expense: due tothe sale of CMS Distribution Plan Payments 62 1 31.2% Amort of Def Sa
Slide 20: Alliance Capital Third Quarter Revenues
Alliance Capital Third Quarter Revenues In Millions Percent 302005 © 302008 Change Revenues: ‘Advisory and Transaction Fees $ 550 $ 499 10.9% Distribution 95 109 12.4% “Institutional Research Services 8774 16.5% increase inUS volume and market share, party osetby pricing decines| Total S_8it 6 11.7%
Slide 21: Alliance Capital Third Quarter Other Revenues
Alliance Capital Third Quarter Other Revenues In $ Milions Percent 30.2005 30.2004 Change Shareholder Sewing Fess § 24 «§ «28 -14.2%6 Investment Gans & Losses 2 “ NM Dividend Inorest, net 14 2 14.296 other, nat 19 5 Nat Total i 739% ‘medline dus te outsourcing and ‘and decrease in accounts ‘mUnreaiz
Slide 22: Alliance Capital Third Quarter Expenses
Alliance Capital Third Quarter Expenses Percent Change In $ Millions 302005 30.2008 "Employee Comp & Benefits $§ 329 $ 261 258% Promotion and Servicing 144 105 General & Administrative 9s 107 Interest 6 6 ‘Amotization of Intangibles 5 5 Total _S_ 580 $564 a 10 tect cing enone raeet es 28% AltianceCa
Slide 23: Alliance Capital Third Quarter Compensation and Benefits
Alliance Capital Third Quarter Compensation and Benefits In $ Milions 302005 30.2004 Change Base Compensaton «$= BT «$80. 823% Ment incroases and addtional headcount Incentive Compensation 139 87 438% Higher operating eamings and amorbzaton of dotered compensation plans Commissions 13 58 264% Now bu
Slide 24: Alliance Capital Third Quarter Expenses
Alliance Capital Third Quarter Expenses In $ Milions Percent 302005 30200 Change Employee Comp & Benefits $ 328 § 261 258% ‘Lower astbuton plan payments | "Promotion and Servicing 1440485) 24.8% mainy due w sale of CMS ‘and ower DSC amortization | General & Administrative = 86107 10.5% ML owertogd c
Slide 25: Alliance Capital Third Quarter Net Income
* Alliance Capital Third Quarter Net Income In $ Milions Percent 302005 32004 Change Revenues $e § m6 117% Expenses 580 584 28% Income betore Taxes 231 16242886 Income Taxes 19 NM) miigeremenerate ae ereases exrirgs ren. caput siesaes. gan onsale otras Netincome s 22 $163 388% Pre-Tax Margin * 205%
Slide 26: Alliance Holding Financial Results
Alliance Holding Financial Results In § Millions (except per unit amounts) 32005 30.2004 Alliance Capital: Net Income $22 $153 Weighted Average Equity ‘Ownership Interest 31.7% 31.2% Alliance Holding: Equity in Eamings s 67 $s 48 Income Taxes 6 6 Net income - Diluted so os 42 Diluted Net Income Per
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Slide 29: Relative Performance: Institutional Value Equity (After Fees)
Relative Performance: Institutional Value Equity (After Fees)(") 2 Institutional Equity Composites vs. Benchmarks us. us. Emerging Strategic Diversified International Global Markets Value ® Value? Value =~ value Value 30.05 18 02 34 29 02 One Year 49 ) 60 64 84 Three Yeas 48 3) 68 84 os Five Yeas 12
Slide 30: Relative Performance: Institutional Growth Equity (After Fees)
Relative Performance: Institutional Growth Equity (After Fees)(") Institutional Equity Composites vs. Benchmarks Global Emerging LargeCap US. Midcap SmallCap _IntiLgCap Research Markets Growth rowth® Growth” Growh® Growth” crowth® Growth ® 3005 5A 22 20 4) o7 44 oa One Year 78 a4 @1) as) 00 84 34 Th
Slide 31: Relative Performance: Institutional Fixed Income (After Fees)
a Relative Performance: Institutional Fixed Income (After Fees)\) Institutional Fixed income Composites vs. Benchmarks Core Core Corp —dHligh Strategic Core Plus® Mortgage” Bonds" yield® Global Plus” 30.05 03 09 00 = @2) os os One Year 08 02) on on 10 os Three Years 0.9 os 09 =) 18 Five Years 0.1) 4
Slide 32: Relative Performance: Retail Value Equity (After Fees)
2 Relative Performance: Retail Value Equity (After Fees)‘”) Retail Mutual Funds vs. Lipper Averages Growth & SmallMid cap Intl Global Vatue® income®™ Value —Value™ Value Balanced” 30.05 04) 9) a8) 19 One Year 0.3 5) 25 07 Three Years 1.3 on 14 49 Five Yeas 18) = = 10 Years 47 44 04 24 os os) 20 34 2
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Slide 34: Relative Performance: Retail Fixed Income (After Fees)
Relative Performance: Retail Fixed Income (After Fees)(") Retail Fixed Income Funds vs. Lipper Averages ACMI. ‘Americas Emerging Short American Corporate Govt Market High Duration Income- Bond” Income” Debt Yield = Blus® offshore” 30.05 3) 28 oA) ©) 19 ‘One Year 13 55 23) (0.2) (0.2) 48 Tiwee Years
Slide 35: Absolute Performance: Private Client (After Fees)
% Absolute Performance: Private Client (After Fees)()) Annualized 30.05 Tear ‘3Year 5 Year All Balanced Accounts 5.0% 13.1% 14.3% 74% Global Balanced Benchmark 3.5% 10.9% 12.8% 2.8% AltianceCapital AY
Slide 36: Relative Performance: Style Blend Services (After Fees)
% Relative Performance: Style Blend Services (After Fees)" Blend Equity Composites vs. Benchmarks International Emerging Markets us. style style Style Global Style Blend” Blend ® Blend” “Blend ® 3005 29 14 00 39 One Year 42 09 17 64 Three Years 14 13 88 _ Since Inception 0.9 22 64 36 AltianceCapital
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Slide 38: Changes in Assets Under Management by Channel
Changes in Assets Under Management by Channel “Three Months Ended September 30, 2005 In Millions Beginning of Period SalesiNew accounts Redemptions/Terminations Cash flow Unreinvested dividends Net inflows Market appreciation End of Period % Total (end of period) 1% Change from beg of period Institu
Slide 39: Changes In Assets Under Management by Channel
Changes In Assets Under Management by Channel ‘Twelve Months Ended September 30, 2005, In $ Milions. Institutional Investment Private ‘Management Retail lent Total Beginning of Period $277,539 $152,855 $59,065 $499,459 SalesiNew accounts 44,175 28,451 40,108 82,734 Redemptions/Terminations (21,045)
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Slide 42: Alliance Capital Investment Management Services
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 una
Slide 43: 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
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Link to searchable text of slide shown above Searchable text section of graphics shown above [LOGO] www.alliancecapital.com October 26, 2005 Third-Quarter 2005 Review Lewis A. Sanders Gerald M. Lieberman Chairman & Chief Executive Officer President & Chief Operating Officer Any forecasts or opinions
Alliance Capital Management Holding — Q3 2005 Earnings Presentation on 6ix