Morgan Stanley · NYSE:MS
Morgan Stanley — Investor Presentation (March 2005)
14 slides from Morgan Stanley's investor presentation, Mar 15, 2005
Slide 1: Shareholder Presentation
Shareholder Presentation March 15, 2005
Slide 2: Morgan Stanley: An Extraordinary Franchise…
Morgan Stanley: An Extraordinary Franchise… Institutional Securities Investment Management • #1 Global Equity Underwriting • 48% of Funds ranked 4/5 Star by MorningStar • #1 Global IPOs • 71-80% of funds in Lipper top half rankings • #1 Equity Secondary Trading • Van Kampen Fund named to Money 100 •
Slide 3: 2004: A Very Good Year
2004: A Very Good Year • Strong financial performance • Progress against established operating objectives • Stock price, however, underperformed • Momentum in 2005 This slide is part of a presentation by Morgan Stanley and is intended to be viewed as part of that presentation. The presentation is ba
Slide 4: Financial Highlights
Financial Highlights Net Revenues ($Bn) Profit Before Taxes ($Bn) 14% 15% 20.9 23.8 5.8 6.7 19.1 4.7 2002 2003 2004 2002 2003 2004 Diluted EPS ($/Share) Return on Equity (%) 18% 2% 3.45 4.06 16.5% 16.8% 2.69 14.1% 2002 2003 2004 2002 2003 2004 This slide is part of a presentation by Morgan Stanley a
Slide 5: Excellent Performance Through the Cycle
Excellent Performance Through the Cycle ROE Comparison 35% 30% 25% 20% 15% 10% 5% 0% 1998 1999 2000 2001 2002 2003 2004 MWD Institutional Peers Diversified Peers Source: Company filings This slide is part of a presentation by Morgan Stanley and is intended to be viewed as part of that presentation.
Slide 6: Strongest Year Ever in Institutional Securities…
Strongest Year Ever in Institutional Securities… Global Completed M&A Global Equity (%) / Rank (%) / Rank #2 #2 32% 5% #1 #3 #3 #4 28.3 25.4 19.2 10.2 10.7 7.9 2002 2003 2004 2002 2003 2004 Global IPO Global Debt (%) / Rank (%) / Rank #1 #3 110% #5 #2 #6 #5 10.3 6.9 7.4 6.9 5.1 4.9 2002 2003 2004 20
Slide 7: Franchise Momentum
Franchise Momentum Change in Average Market Share Since Merger (%) Global IPO 85 Global M&A 49 Global Equity 44 Global Debt 23 Equity Secondary Trading 20 Source: Thomson, Independent Survey Notes: (1) Compares average annual market share for the period 1989 – 1996 to the average annual market share
Slide 8: Improving Performance and Inflows
Improving Performance and Inflows Net Fund Flows ($Bn) Assets Under Management ($Bn) 19% 28.7 (11.5) 424 (14.7) 337 357 2002 2003 2004 2002 2003 2004 Percentage of Assets Ranked 4/5 Star Percentage of Assets by Morningstar in Lipper Top Half 100% 17% 80% 60% 48 40% 39 41 20% 0% 2002 2003 2004 1-Yr 3
Slide 9: Better Loan Quality and Profit Contribution
Better Loan Quality and Profit Contribution Profit Before Tax ($MM) Delinquency Rates (%) 5.96 5.97 16% 4.55 1,272 2.66 2.82 1,178 2.18 1,093 2002 2003 2004 2002 2003 2004 Over 30 Days Over 90 Days • Sam’s Club Exclusive • Pulse Acquisition • Wal-Mart Discover Card This slide is part of a presentati
Slide 10: Upside in Individual Investor Group
Upside in Individual Investor Group PBT Margin (%) Total Client Assets ($Bn) 7% 602 27 565 11 % 516 8 3 2002 2003 2004 2002 2003 2004 This slide is part of a presentation by Morgan Stanley and is intended to be viewed as part of that presentation. The presentation is based on information generally a
Slide 11: Relative Stock Price Performance
Relative Stock Price Performance Change in Stock Price CY 2004 (%) 2005 to Date (%) BSC 28 UBS 8 AXP 17 LEH 7 BAC 17 MWD 6 LEH 13 GS 6 UBS 13 DB 6 JPM 6 BSC 2 GS 5 MER 1 MER 2 C 0 DB (1) BAC (3) C (1) AXP (4) MWD (4) JPM (7) Source: FactSet This slide is part of a presentation by Morgan Stanley and
Slide 12: Extraordinary Wealth Creation
Extraordinary Wealth Creation IPO Until Merger Merger to Current Morgan Stanley DW/Discover Annualized Return 17% 26% 15% S&P 500 12% 17% 5% Annualized Return Relative Return 1.4x 1.5x 3.1x Source: FactSet This slide is part of a presentation by Morgan Stanley and is intended to be viewed as part of
Slide 13: Extraordinary Relative Wealth Creation: Merger to Date
Extraordinary Relative Wealth Creation: Merger to Date Total Returns (%) LEH 546 BSC 350 MWD 263 C 250 MER 227 UBS 215 AXP 184 BAC 126 DB 92 JPM 58 Source: FactSet This slide is part of a presentation by Morgan Stanley and is intended to be viewed as part of that presentation. The presentation is ba
Slide 14: Financial Services Firm Focused on Growth
Strategy • Financial Services Firm Focused on Growth • Strategic Synergies and Financial Benefits of Business Mix Diversification • Skills Over Capital – Our Competitive Advantage This slide is part of a presentation by Morgan Stanley and is intended to be viewed as part of that presentation. The pr