Stifel Financial Corporation · NYSE:SF
Stifel Financial — Investor Presentation (February 2013)
32 slides from Stifel Financial's investor presentation, Feb 27, 2013
Slide 1: Stifel Investor Presentation February 2013
Exhibit 99.1 Exhibit Stifel February STIFEL Investor 99.1 2013 Presentation
Slide 2: Forward-Looking Disclaimer
Forward-Looking Disclaimer This relating statements particular, and You the actual things, Note The compensation Specifically, Company those 1provided future benefits Company should presentation Regarding in results changes to prior tounless believes these the can not enhance and the to periods mark
Slide 3: Stifel Overview
STIFEL Stifel Overview
Slide 4: Stifel at a glance
$2.0As 2012 Balanced Top 36% Global (GWM) Private Stifel Customer Asset M&A National Financial $138 expertise 4(1) performing billion Insider Represented billion Financial Bank Management Advisory of Wealth Client (IG) presence 2/20/13. Advisors business services Financing & market ownership inIndep
Slide 5: 17th consecutive year of record net revenues
„Position 17th Net $1,200 $1,400 $1 $800 $600 $200 $400 1995 5$0 Unburdened Low Built Capitalize Select Drive 800 600 382 000 Revenues Consecutive $763 $452 $87 1996 leverage the $1,417 $1 $870 revenue growth Stifel $110 091 Company 1997 on($MM) by to $123 headwinds business of synergies 1998 Take c
Slide 6: Issues facing the industry and Stifel's value proposition
Stifel’s Issues 6„models Trading Size /with Large Investment Retail Growth Financial Deleverage Raise Few Changing Headcount Large-cap „Differentiated common scale distribution personnel) Investment investor „ /retail Large business focused firm Banking „ Size Retail equity stability distribution ac
Slide 7: Net revenues, client assets, and book value growth
NetClient Total CAGR: 7(1) (2) Revenues Client 24% 26% CAGRAssets CAGR: ($MM)(1) reflects ($BN)(1)(2) 38% 19% assets—Includes years Core 2006 Net Financial Income to 2012. FDIC-insured Advisors ($MM)(1) products (1)(3) as Total of Book Equity Value 12/31/12 ($MM)(1) for Per Share(1)(4) years 2008-20
Slide 8: Acquisition history and integration achievements
Each Retention FIG February Bank Restructuring December April Fixed Seamless Growth Investment Research Achieved July Private 56 October 8expectations UBS Investment Sales Research 2010 merger 2007 holding Income Client Focused Branches 2011 2009 2013 Sales & cost remains and 2012 Banking efficient
Slide 9: Balanced, stable, proven business model
Balanced Stable Proven Net 2011 9Note: Revenues 2012 Net GWM ability business revenues 2011 business Operating to2012 grow model andis all operating Contribution augmented facilitates businessescontribution growth by profitable during excludes and volatile growing themarkets Other Institutional segm
Slide 10: Total assets, equity, leverage and book value per share
As0.0 Total $7 $4 $3 $$0.5 $0.2 Stockholders’ Leverage 4.0x $30 3.6x 33x 30x 31x $20 44x 2.3x 2.0x 13 6.5x 10x 19x $5 0.0x 2006 SB&T 10670x 5.0 4.0 3.0 2.0 1.0 20December 024x $25 2.9x $19.24 $15 27x $2 $1.5 $1 3.7x 3.6x 11.1x $10 $0 Assets $1SN $ $0 $0.0 2007 1.1 02.0x 14$8 0 7 1 $24 12 Ratio $2.0
Slide 11: Cumulative stock price appreciation versus peers
Cumulative Since Evercore Piper Lazard Morgan SWS Goldman Stifel Raymond Greenhill Cowen Jefferies FBR Oppenheimer JMP Legg S&P KBW 11 Group 500 &Mason Group Jaffray Financial 12/31/12 NM 26.01% Group Co. Stanley Group Index Partners Sachs & James KBW 12.14% 8.24% Price Co. 23.25% 727 11 15 00% Sinc
Slide 12: Continuing initiatives to attract and retain talent and expand
Attract and Initiatives Continue traditional 12 toasset retain expand management high-quality our private capabilities talent client footprint Approach in theacquisition U S Continue opportunities to expandwith fixeddiscipline income businesses Continue to expand investment banking capabilities Focu
Slide 13: Merger with KBW
STIFEL Merger With KBW
Slide 14: Merger closed and integration update
Integration Closed Tom Key Report 14 employees Michaud core the merger Update vs and non-core remain February Michael with going Zimmerman 15, theforward 2013 firm asjoined contracts Stifel’s rollBoard off until of the Directors integration is complete
Slide 15: Pro forma revenues with KBW
Global$$Wealth Revenues ($MM) 4Q12 2012 15 995 Total 255.1 Global 2 $$management 618 165.1 Wealth 5 $$245 70.6 Institutional 8middle-market $$490.8 1 859 KBW 5 experts Pro Forma financial institution experts
Slide 16: Global Wealth Management
STIFEL Global Wealth Management
Slide 17: Global Wealth Management overview and growth
Provides Grown Proven Retail Goal CAGR: (1) 17 oftail (2) from organic providing 28% 32% Includes Securities investors CAGR 600+ growth Independent price financial Brokerage t r are reflects and stability generally acquirer advisors years Contractors. Services andto 2006 nof support inrall private 2
Slide 18: Opportunity through growth
Opportunity (1) 18 Includes Independent Through Growth Contractors. (2) Client assets—Includes FDIC-insured products as of 12/31/12 for years 2008-2012.
Slide 19: Stifel Bank overview
Acquired Overview low-risk Strength Offers Built High Highly Interest Investment Loan Total: Note: (1) 19 net (2) in Portfolio Data $2.9 $2.3 $823 mortgage deposit Earnings source Average assets of worth FirstService Billion as Portfolio Brokerage Million(2) of(Gross) of Funded efficient clients 12/
Slide 20: Institutional Group
STIFEL Institutional Group
Slide 21: Institutional Group overview
NetIncludes Overview Provides Bracket(1) CAGR: Equity Fixed (1) Revenues 2012. (2) 21 Income Brokerage 20% Based securities Full (4) Brokerage ($MM)(2)(3) TWPGon Service +2011 brokerage Investment Middle-Market U.S. + Investment trading historical trading Banking(2) volume research investmentBanking
Slide 22: Largest U.S. equity research platform
Largest U CiCompanies 21Rank S Equity Firm UJPMorgan Stifel SOverall Research Equity Under 1 347 Small Research 538 Coverage Coverage 1118 Cap(2) 190 Platform (1)Lynch 1,052 172 87654322Consumer FIG Internet Real Credit Morgan William Bank Raymond Citi Wells 9 Technology 10 11 12 14 15 16 17 18 19 2
Slide 23: Powerful institutional equity platform
Powerful Institutional 110 major traditional Equity „53 Francisco, proprietary Extensive Agency Major Multi-execution 23Baltimore sales person institutional liquidity Trading model traders Platform Distribution and Cleveland, sales trading New Equity overnight –provider located venues: force, no Yor
Slide 24: Comprehensive fixed income platform
Strong Oi Comprehensive analytics to Client Platform Focus Consistency Identification Agency/Gov’t High Whole (1) 24 (2)the Overview Yield largest on tLoans OtherFixed Distribution Client & llong tiCredit Products Widespread of investment Income Municipals of only Securities categoryDistribution exe
Slide 25: Equity underwriting league table rankings
Accomplished All ($ 21Rank 3 inManaged billions) FirmBank CitiDeals Equity #of JPMorgan 569UofAmerica SVolume $Equity $385 Deals 592 Merrill Underwriting 2$381.6Since 2010Lynch 3$284Franchise 599 $398.1– All Equity Transactions 8765454321Rank 96 RBC 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Bo
Slide 26: Financial Results
STIFEL Financial Results
Slide 27: Three months ended December 31, 2012 results
Three ThThree ($ Total Provision Net Earnings Weighted Diluted Ratios Compensation Non-comp Income (1) diluted 27 inResults revenueseven income thousands, non-interest months to share. before $Monthsont 63 per net 0.63 average for 301 operating for $revenues share: income 39,954 ended $the and incom
Slide 28: Year ended December 31, 2012 results
Year (1) ended Ended ($ inResults Non-compom Total Provision Net Earnings Weighted Diluted Ratios Compensation Non Income (2) 28 revenues income comp December thousands, non-interest tobefore $ per 62,937 net 2.20 average for operating for $revenues share:re $income 138 operatingpe $the and income 1
Slide 29: Quarter and year revenues by category
Quarter % ($ Commissions Principal Capital Advisory Investment Asset Other Total Interest Net (1) respectively. 29 %Results inrevenues thousands) operating revenues mgt (1) raising revenue expense Ended transactions 19,597 26,643 and for banking The $$service the Year 426,434 49,203 417,830 revenues
Slide 30: Quarter and year expense detail
Three Quarter ($ Compensation Transitional Occupancy Communication Commissions Other Total (1) 30 inTransition thousands) compensation non-comp non-interest operating months Ended and pay and Titi ended and %equipment expenses operating and 12/31/12 (1) of expense pay floor benefits and 22 Net offic
Slide 31: Net operating contribution by segment
Quarter % ($ Net Operating Global Institutional $Other (1) The (2) 31417 61,067 %Results inrevenueseven after-tax thousands) %830 (2Wealth (2) Ended 310) $(29 contribution: $45,026 for 356 Group impact 705) (1 Management the Year 12/31/12 878 920) eyear three 35.6% (28 (1) :Ended was 17 (20 619) 165
Slide 32: Legacy investments and non-GAAP reconciliation
2012 ($ Legacy Non Total Provision Net Earnings Ratios Compensation Non-compensation Income ¹As 2Legacy 3Legacy 32 inof revenues income compensation thousands, Investments non-interest December to2before revenues provision per net Investments for149,892 revenues: share 1,567,133 income and income ex
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