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This excerpt taken from the C 8-K filed Jan 14, 2009. Source: Morgan
Stanley SEC Filings and Citigroup
estimates
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(1)
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Morgan Stanley
figures based on FY 2008. Citigroup figures based on estimated
last twelve months 3Q08
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(2)
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Morgan Stanley
excludes the $748mm gain on the sale of the Spanish Wealth Management
business and excludes a ($108mm) write-down on Auction Rate Securities
inventory. Citigroup excludes CitiStreet gain on sale of $347mm and
excludes the ($306mm) write-down related to the Auction Rate Securities
settlement and is adjusted for exclusion of retail branch based advisors,
institutional FAs and certain lending
activities
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(3)
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Morgan Stanley
excludes the $698mm pre-tax profit on the sale of the Spanish Wealth
Management business and excludes ($641mm) of pre-tax provisions related to
Auction Rate Securities. Citigroup excludes the $334mm pre-tax profit on
the sale of CitiStreet and excludes ($640mm) of pre-tax provisions related
to Auction Rate Securities, Falcon fund and other one-time restructuring
costs. Citigroup pre-tax profit reflects estimated last twelve months 3Q08
and estimated adjustments for exclusion of retail branch based advisors,
institutional FAs and certain lending
activities
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(4)
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For Citi,
figures are adjusted to exclude estimated branch based advisors/locations
and institutional FAs; includes Quilter and Australia Smith Barney; FA
figures based on January 2009 and client assets based on 3Q08; for Morgan
Stanley, client assets are as of 3Q08 for comparability purposes; 4Q08
assets were $546Bn.
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This slide is part of a
presentation by Morgan Stanley and Citigroup and is intended to be viewed
as part of that presentation. The presentation is based on information
from the companies’ press release
and conference call.
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4
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•
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Establish
leadership position in Wealth
Management
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Wealth Management
continues to be a very attractive business with longer-term growth
potential across the
globe
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Combination creates
an industry-leading global wealth manager with over 1,000 branches in the
United States and significant international
presence
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A
leading global wealth manager with a superior distribution
platform
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Both
Citi and Morgan Stanley will retain their deposits accumulated prior to
close
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•
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Enhances
client experience with a best-in-class product and service
platform
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•
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Expands
distribution network for capital markets and asset management
products
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•
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Achieves
scale economies and cost synergies
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Significant value
creation driven by estimated $1.1Bn in cost
savings
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This slide is part of a
presentation by Morgan Stanley and Citigroup and is intended to be viewed
as part of that presentation. The presentation is based on information
from the companies’ press release
and conference call.
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5
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Target
Expense
Efficiencies
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Target Expense
Efficiencies
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Personnel
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$320MM
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IT /
Operations
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$350MM
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Marketing
/ Professional Services
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$180MM
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Other
Expenses
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$230MM
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Total
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$1.1Bn
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This slide is part of a
presentation by Morgan Stanley and Citigroup and is intended to be viewed
as part of that presentation. The presentation is based on information
from the companies’ press release
and conference call.
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6
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Morgan
Stanley Smith Barney Global Wealth Management
Joint
Venture
Presentation
to Investors
January
13, 2009