Author 2 Presentation

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Morgan Stanley
Europe Update
23 October 2003
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Morgan Stanley
Table of Contents
Section 1
European Overview
Section 2
European Markets
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Morgan Stanley
Section 1
European Overview
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European Overview
Morgan Stanley
Size Matters
Sources EU Commission (GDP as of 2001, all
others as of 2002)/U.S. figures as of September
2002

• Notes
• EU-15 and EU-25 on a purchasing-power parity
  basis. Assuming an FX Rate of 1.1 USD/EUR
• EU-15 and EU-25 CAGR 1999-2001, U.S. 2002
  estimate EU-25 weighted against nominal GDP

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European Overview
Morgan Stanley
Our European Presence
U.K. (1977) France (1990) Germany
(1987) Ireland (2003) Italy (1989) Luxembourg
(1989) Netherlands (1997) Portugal
(2000) Russia (1994) Spain (93/99) Sweden
(1999) Switzerland (1986) Israel (2001)
South Africa (1994)
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European Overview
Morgan Stanley
Our European Business
Full Line of Financial Services
Morgan Stanley
Institutional Securities
Individual Investor Group
Investment Management
Consumer Banking Group
Private Wealth Mgmt
Equity Research
Banking Team
Mergers, Acquisitions Restructuring
Real Estate Group
Global Capital Markets Equity Capital Debt
CapitalMarkets Markets
Securitised Product Group
Institutional Securities Joint Ventures
Investment Banking Division
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European Overview
Morgan Stanley
European Market Conditions
Equity Underwriting
Announced MA Volume
2001 vs. 2000
2002 vs. 2001
2003 vs. 2002 YTD (1)
2001 vs. 2000
2002 vs. 2001
2003 vs. 2002 YTD (1)
8
52
33
46
20
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Debt Underwriting
Completed MA Volume
2001 vs. 2000
2002 vs. 2001
2003 vs. 2002 YTD (1)
2001 vs. 2000
2002 vs. 2001
2003 vs. 2002 YTD (1)
25
12
56
15
52
14
Source Thomson Financial Securities Data

• Note
• As of 22 October 2003

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European Overview
Morgan Stanley
European Revenues
1997 and 2002
1997
2002
Europe 12
Europe 18
Global Revenues 14.8Bn European Revenues 1.7Bn
Global Revenues 19.1Bn European Revenues 3.3Bn
Source Morgan Stanley 1997 Annual Report and
2002 10K Filing
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Morgan Stanley
Section 2
European Markets
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European Markets
Morgan Stanley
European MA Volumes Are Improving
2002-2003
(1)
2002
2003
Deals
60
38
95
64
86
64
81
58
68
76
78
93
62
54
67
70
67
74
73
57
61
47
Source Thomson Financial Securities Data

• Note
• October 2003 includes month through October 20th
  2003

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Morgan Stanley
European Markets
European Equity New Issue Market By Offering Type
Equity and Equity-Linked Offerings Since 1996 (1)
Source EquityWare

• Notes
• Includes rights issues and domestic tranches
• YTD through September 12, 2003

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European Markets
Morgan Stanley
Growth of Exchanges
Source World Federation of Exchanges
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European Markets
Morgan Stanley
European Debt Market
DT
EMU
Source BondWare

• Notes
• EMU market the beginning of a more active primary
  corporate bond market in Europe
• The DT multi-tranche bond offering in the summer
  of 2000 was the first of many jumbo deals pushing
  new issuance volumes to record highs
• Since 2002 the market has been characterised by
  de-leveraging through debt reduction and general
  balance-sheet repair

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European Markets
Morgan Stanley
European Asset Management
Source UBS Warburg, Oliver, Wyman Company Sept
02 research report
Source UBS Warburg, Oliver, Wyman Company Sept
02 research report
Source UBS Warburg, Cerulli, Oliver, Wyman
Company Sept 02 research report, Japan Investment
Trust Association
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European Markets
Morgan Stanley
European Asset Management
Source Charterhouse Securities 2002
Source Cerulli 2002

• Notes
• Mutual fund figures are used as the best
  available approximation of industry growth rates
  
• Figures for Europe are from Sector Analysis 2002
  and refer to growth in the demand for third party
  funds. All other figures are taken from Cerulli
  2002. Japan figures refer to the growth in
  onshore and cross-border fund assets, U.S.
  figures refer to the growth in U.S. mutual fund
  assets, and Asia ex-Japan figures refer to the
  growth in Asian mutual fund assets

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European Markets
Morgan Stanley
European Credit Cards Business
Remaining Focused in a Competitive Market
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