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2003 Merrill Lynch Banking & Financial Services Investor Conference Merrill Lynch: Beyond the Numbers Stan O’Neal Chairman & CEO Merrill Lynch & Co., Inc. November 19, 2003 Safe Harbor

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2003 merrill lynch banking financial services investor conference

2003 Merrill Lynch Banking & Financial Services Investor Conference

Merrill Lynch: Beyond the Numbers

Stan O’Neal

Chairman & CEO

Merrill Lynch & Co., Inc.

November 19, 2003

safe harbor
Safe Harbor

Statements made herein may contain forward-looking information about management’s expectations, strategic objectives, business prospects, anticipated expense savings and financial results, anticipated results of litigation and regulatory proceedings, and other similar matters. A variety of factors, many of which are beyond Merrill Lynch's control, affect its operations, performance, business strategy and results and could cause its actual results and experiences to differ materially from the expectations and objectives expressed in any such statements. These factors include, but are not limited to, the factors described in Merrill Lynch’s reports on Forms 10-K, 10-Q and 8-K filed with SEC, which are available on the Merrill Lynch Investor Relations website, www.ir.ml.com and on the SEC's website, www.sec.gov. Accordingly, investors are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date on which they are made. Merrill Lynch does not undertake to update such statements to reflect the impact of circumstances or events that arise after the date the statements are made. Investors should, however, consult any further disclosures Merrill Lynch may make in its reports filed with the SEC.

2

a look at the environment
A Look at the Environment

Still uncertain, but…

  • S&P 500 up 15% from a year ago
  • 3Q03 S&P operating earnings up 24% from 3Q02
  • GDP up 3.3% from a year ago
  • Capital gains tax rates lowest in almost 50 years
  • 10-year treasury yields are near 40-year lows

4

on the other hand
On the Other Hand...
  • Structural imbalances
  • Geopolitical uncertainty

Financial Services Industry:

  • Overcapacity
  • Mutual fund revelations/regulation

Cautiously Optimistic

5

achieving our margin goal
Achieving Our Margin Goal

Pre-Tax Profit Margin

  • Increased profitability
  • Re-shaped businesses
  • Strengthened liquidity & capital base
  • Enhanced operating discipline

6

quarterly financial results
Quarterly Financial Results

Change

3Q03

3Q02

Net Revenues

+ 16%

$ 4.4 B

$ 5.1 B

Net Earnings

+ 50%

$ 0.7 B

$ 1.0 B

Pre-Tax Profit Margin

24.2%

+ 5.6 pts

29.8%

MER’s Highest-Ever Third Quarter Earnings &

Second-Best Quarterly Earnings

Note: Third quarter 2003 net earnings include $13 million after tax attributable to a September 11-related net insurance recovery. Third quarter 2002 net earnings included $115 million after tax related primarily to September 11-related net recoveries.

7

year to date financial results
Year-to-Date Financial Results

1st Nine Months 2002

1st Nine Months 2003

Change

Net Revenues

+ 6%

$15.2 B

$14.4 B

Net Earnings

+ 39%

$2.0 B

$2.7 B

Pre-Tax Profit Margin

20.9%

+ 5.3 pts

26.2%

Year-to-Date 2003 Earnings Exceed Full-Year 2002

Note: Year-to-date 2003 net earnings include $49 million after tax attributable to September 11-related net insurance recoveries. Year-to-date 2002 net earnings included $114 million after tax of September 11-related net recoveries, $78 million after tax of research-related expenses and a $1 million after tax restructuring-related credit.

8

consistent strong results
Consistent, Strong Results
  • Identify opportunities early
  • Execute with agility and intelligence
  • Deliver for clients
  • Deepen relationships
  • Diversify revenues
  • Grow with discipline
  • Lead in our chosen markets

Realize Full Potential of the Merrill Lynch Franchise

9

global markets investment banking
Global Markets & Investment Banking

Growth Initiatives

GMI Third Quarter Results

  • Debt Markets
    • Principal Investments
    • Foreign Exchange
    • Municipals
    • Mortgages
    • Derivatives
  • Equity Markets
    • Portfolio Trading/Direct Execution
    • High Touch Services/Research
    • Prime Brokerage
  • Investment Banking
    • Increased Resources in

Select Industries

    • Leveraged Finance

$2.5 B

$1.9 B

41.1%

28.3%

$1.0 B

$0.5 B

11

Note: Earnings and profit margins for business segments are reported on a pre-tax basis.

global private client
Global Private Client

Growth Initiatives

GPC Third Quarter Results

  • Wealth Management
    • Recruiting/Training Top FAs
    • Total MerrillSM
    • Private Wealth Services
    • Fee-based Services
    • Insurance
  • Banking Services
    • Beyond Banking®
    • Small Business Services
    • Middle Market Services
    • Credit Cards
  • Retirement Services
    • IRA
    • 401-K

$2.3 B

$2.1 B

20.2%

15.2%

$0.5 B

$0.3 B

12

Note: Earnings and profit margins for business segments are reported on a pre-tax basis.

merrill lynch investment managers
Merrill Lynch Investment Managers

Growth Initiatives

MLIM Third Quarter Results

  • Sustain Strong Investment Performance
  • GPC Distribution
  • Third Party Distribution
    • US
    • Non-US: Europe
  • Further Penetrate US Institutional Market
  • Alternative Investments

$360 M

$352 M

21.9%

18.6%

$77 M

$67 M

13

Note: Earnings and profit margins for business segments are reported on a pre-tax basis.

beyond the numbers
Beyond the Numbers

Discipline creates the opportunity to invest in the future for our:

  • Shareholders
  • Employees
  • Clients

Creating a Climate for Success:

  • Appropriately sized to opportunity - operating leverage
  • Effective resource allocation
  • Products & service innovation
  • Performance-based culture

14

2003 merrill lynch banking financial services investor conference16

2003 Merrill Lynch Banking & Financial Services Investor Conference

Merrill Lynch: Beyond the Numbers

Stan O’Neal

Chairman & CEO

Merrill Lynch & Co., Inc.

November 19, 2003