Morgan Stanley · NYSE:MS
Morgan Stanley — Investor Presentation (September 2005)
17 slides from Morgan Stanley's investor presentation, Sep 23, 2005
Slide 1: Asia Overview
Asia Overview September 23, 2005
Slide 2: Notice
Notice The information provided herein may include certain non-GAAP financial measures. The reconciliation of such measures to the comparable GAAP figures are included in the Company’s Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on 8-K, including any amendments th
Slide 3: Morgan Stanley in Asia
Morgan Stanley in Asia Number of Regional Offices Asia Pacific: 11 Tokyo Beijing Osaka Japan: 2 Seoul Shanghai Delhi Taipei Joint Ventures Hong Kong China - China International Mumbai Capital Corporation Ltd. Bangkok India - JM Morgan Stanley Singapore Sydney Melbourne This slide is part of a presen
Slide 4: Our Asian Business
Our Asian Business Full Line of Financial Services Morgan Stanley Individual Investment Institutional Investor Management Securities Group Private Equity Fixed Investment Private Wealth Equity Research Income Banking Equity Mgmt Global Capital Markets Mergers, Securitized Banking Real Estate Product
Slide 5: 2005YTD Notable Transactions
2005YTD Notable Transactions M&A • Mitsubishi Tokyo Financial Group (Japan) $41.4Bn merger with UFJ Holdings (Japan) • Astellas Pharma (Japan) $7.1Bn merger with Fujisawa Pharmaceutical (Japan) • Bank of America (U.S.) $2.5Bn and Temasek (Singapore) $1.4Bn strategic investment in China Construction
Slide 6: Morgan Stanley's Market Position
Morgan Stanley’s Market Position Asia Pacific Market Share 2005YTD Euromoney 2005 Best M&A House in Asia (incl. Japan) Morgan Stanley Best M&A House in China, Japan & Share Rank South Korea M&A (1) 14% 4 The Asset’s Triple A Awards 2004 Best Investment Bank Equity & Equity-Linked (2) 5% 6 Best M&A H
Slide 7: Asian Net Revenue Trends
Asian Net Revenue Trends Morgan Stanley Asian Net Revenues vs. MSCI Asia Pacific Index Performance Net Revenues MSCI Closing ($MM) Value (1) 2,500 120 2,000 100 80 1,500 60 1,000 40 500 20 0 0 1998 1999 2000 2001 2002 2003 2004 Asia MSCI Asia Pacific Source: Morgan Stanley 10-K filings, MSCI Notes:
Slide 8: Asian Net Revenues and PBT
Asian Net Revenues and PBT 1998 and 2004 Global and Asian Net Revenues 1998 2004 Asia 6% Asia 8% Global Net Revenues $16.1Bn Global Net Revenues $23.7Bn Asian Net Revenues $1Bn Asian Net Revenues $2Bn Global and Asian PBT (1) 1998 2004 Asia 5% Asia 10% Global PBT $5.4Bn Global PBT $6.8Bn Asian PBT $
Slide 9: Size Matters
Size Matters Key Statistics Asia Pacific(1) Japan China US EU-25 Population (MM) 1,560 127 1,300 293 453 Area (000‘s Km²) 13,031 378 9,573 9,631 3,973 GDP ($Bn) 3,161 4,718 1,649 11,995 12,262 GDP Growth (%) 6.1 2.7 9.5 4.4 2.2 Inflation (%) 3.2 -0.1 3.9 2.7 2.0 Unemployment (%) 9.3 4.4 4.2 5.1 9.0
Slide 10: Market Size
Market Size AP Equity and Equity-Linked AP Announced M&A Volume (1) Issuance Volume (2) AP Fixed Income Issuance Volume (2) (US$Bn) (US$Bn) (US$Bn) 172 68 49 140 43 121 116 52 46 30 28 23 2002 2003 2004 2005YTD 2002 2003 2004 2005YTD 2002 2003 2004 2005YTD Japan Equity and Equity-Linked Japan Fixed
Slide 11: Secular Drivers
Secular Drivers Secular Drivers Morgan Stanley Strengths • Economic growth • Proven Investment Banking • China catalyst track record in region • Globalization • Stable and integrated franchise • Aging population • Long term client relationships • Privatization • Product capability and distribution •
Slide 12: Asia Strategy
Asia Strategy • #1: Primarily organic growth • #2: Platform • #3: Long-term growth opportunities 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 available to the public and does not c
Slide 13: China
China CICC Morgan Stanley • Sales & Trading • Institutional Equity Sales • Investment Banking • Research • Research • Fixed Income Sales • Asset Management • Commodities • Beijing, Shanghai, Hong Kong • Real Estate, Capital Markets, M&A • Asset Management • Private Equity This slide is part of a pre
Slide 14: China: An Open Economy
China: An Open Economy Foreign Invested Enterprises Foreign Direct Investment to China Contribution to China Exports US$Bn US$Bn 70 61 700 60 53 54 600 50 45 47 500 42 41 40 38 400 30 300 20 200 10 100 0 0 1998 1999 2000 2001 2002 2003 2004 Aug05YTD Aug05YTD 1996 1997 2000 2001 2002 2003 2004 Total
Slide 15: China: Growth Opportunities
China: Growth Opportunities Market Capitalization / GDP 2004 China Debt Market Issuance % US$Bn 80 150 136 133 60 100 79 73 58 40 50 30 20 0 0 China Taiwan USA Japan W. Korea 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 Europe Treasury Bond Policy Financial Corporate Bond Source: CEIC Data Sour
Slide 16: Conclusion
Conclusion • Asia considered THE growth area by our clients and our competitors • Good track record of revenue and profit growth • Future plans balance need for investment with continued profit growth This slide is part of a presentation by Morgan Stanley and is intended to be viewed as part of that
Slide 17: Asia Overview
Asia Overview September 23, 2005
Morgan Stanley — Investor Presentation (September 2005) on 6ix