2002 annual meeting print

Annual Meeting with Shareholders: 

Annual Meeting with Shareholders Philip J. Purcell Chairman & CEO March 19, 2002

Report on the Company: 

Report on the Company Robert G. Scott President & COO March 19, 2002

Market Conditions – 2001 vs. 2000: 

Market Conditions – 2001 vs. 2000 Volume: NYSE NASDAQ Volatility: NASDAQ Amex QQQ Crude Oil (WTI) Institutional Investors M&A Announced Equity Underwriting IPO's Fixed Income Issuance Corporate Market Margin Debits Fund Flows: Total Long-Term Fund Flows* Equity Fund Flows Market Performance: S&P Nasdaq Retail Investors Unemployment rate Bankruptcy filings Interest Rates: 2-Year Treasury Retail Sales Credit Cards Sources: NYSE, NASDAQ, SIA, Thomson Financial Securities Data, Investment Company Institute, Bloomberg *Fund flows include debt and equity funds.

Fiscal 2001 Operating Results: 

Fiscal 2001 Operating Results Net Revenues Net Income, EPS and Dividends Net Income ($MM) EPS ($) $2.76 $4.73 $3.19 $4.10 $2.08 $0.92 $0.80 $0.48 $0.40 $0.28

Fiscal 2001 Operating Results: 

Fiscal 2001 Operating Results Return on Equity (%)

Growth in Morgan Stanley Book Value: 

Growth in Morgan Stanley Book Value Book Value per Share CAGR: 14%

Morgan Stanley Market Position: 

Morgan Stanley Market Position Note: (1) Sources: Listed and OTC: Autex; Europe Equities: Local Exchanges; Fiscal year basis. Research Ranking: Institutional Investor. Institutional Clients(1) Listed Equities OTC Europe Equities Fixed Income Trading (Rank) High Yield Trading (Rank) Research Rank # of Positions

Morgan Stanley Market Position: 

Morgan Stanley Market Position Note: (1) Source: Thomson Financial Securities, Calendar year basis. Corporate Clients(1) Equity Issuance IPOs Total Fixed Income Issuance High Yield Issuance M&A Announced Rank

Morgan Stanley Market Position: 

Morgan Stanley Market Position Notes: (1) Sources: FA Market Share: Company Reports and SIA Yearbook (2001 share data is as of 3Q); Long-term and Equity Fund Flows: Strategic Insight (2001 data is year-to-date through November). (2) Sources: Nilson, Faulkner and Gray. 2001 data is as of end of June. Retail Clients(1) FA Market Share Total Client Assets ($Bn) Mutual Fund Flows Equity Fund Flows 21.2% 595 3.2% 3.1% 21.6% 662 3.8% 6.0% 21.4% 595 0.8% 0.7% Credit Cards(2) Receivables Share Network Volume Share 7.7% 6.4% 8.3% 7.2% 8.6% 6.9%

MWD Stock Performance: 

MWD Stock Performance MWD Stock Performance 3/13/02 11/30/01

MWD Relative Stock Performance: 

MWD Relative Stock Performance Relative Stock Performance (Indexed) Source: Bloomberg

First Choice: 

First Choice Culture the key differentiator Significant strides in 2001 Incentives Compensation Measures Impact Market share Client wallet share

Market Conditions – 1Q02 vs. 4Q01: 

Market Conditions – 1Q02 vs. 4Q01 Sources: NYSE, NASDAQ, SIA, Thomson Financial Securities Data, Investment Company Institute, Bloomberg *Dec01-Jan02 vs. Oct01-Nov01; includes debt and equity funds. Volume: NYSE NASDAQ Volatility: Nasdaq Amex QQQ Crude Oil (WTI) Institutional Investors M&A Announced Equity Underwriting IPO's Fixed Income Issuance Corporate Market Retail Investors Unemployment rate Interest Rates: 2-Year Treasury Retail Sales Credit Cards Margin Debits Fund Flows: Total Long-Term Fund Flows* Equity Fund Flows Market Performance: S&P Nasdaq

Report on the Company: 

Report on the Company Robert G. Scott President & COO March 19, 2002