Stifel Financial Corporation · NYSE:SF
Stifel Financial — KBW Investor Presentation (November 2007)
44 slides from Stifel Financial's conference presentation, Nov 6, 2007
Slide 1: Stifel Financial Corp. KBW Investor Presentation
STIFEL FINANCIAL CORP. KBW Investor Presentation November 6, 2007
Slide 2: Forward Statements
Forward Statements This presentation may contain "forward-looking statements" that involve risks and uncertainties, including statements relating to the market opportunity and future business prospects of Stifel Financial Corp. and Stifel Nicolaus ("SF" or the "Company"). Actual results may differ m
Slide 3: Who We Are
Who We Are
Slide 4: Stifel Profile
Stifel Profile General Parent Company: Stifel Financial Corp. (NYSE:SF) Nearly 3,000 associates in 170 offices U.S. and Europe Management and associates own in excess of 45% of the firm Strong financial performance; 2007 will mark 12 consecutive years of record net revenue Market Information Current
Slide 5: Stifel History
Stifel History Founded in St. Louis in 1890 Strong track record in 20's - 50's as an innovative underwriter Led numerous significant financings Mackanack ohare NYSE Member firm 1958 Seven successful acquisitions from 60's - 90's. IPO NYSE 1983 Symbol - SF
Slide 6: Investment Highlights
Investment Highlights
Slide 7: Investment Highlights
Investment Highlights Experienced Management Team Well-Diversified Business with Multiple Growth Channels Strong Financial Performance with Consistent Growth Compelling Valuation-Especially for Growth Successful Acquisition History with Proven Integration Skills Industry Consolidation Represents Maj
Slide 8: Experienced Management Team; Board of Directors
Experienced Management Team Board of Directors
Slide 9: Diversified Business with Multiple Growth Channels
Diversified Business w/ Multiple Growth Channels Private Client Group Approximately 1,000 Financial Advisors in 152 offices throughout the United States Capital Markets Approx 400 associates in 20 U.S. offices and 3 offices in Europe. Full coverage of major domestic and European institutions Investm
Slide 10: Strong Financial Performance - Record Results
Strong Financial Performance - Record Results
Slide 11: Consistent Growth
Consistent Growth [bar charts]
Slide 12: 3rd Quarter Highlights
3rd Quarter Highlights Quarterly revenue of $190.8 million, a 66% increase over the prior year third quarter. Nine month revenue of $574.0 million, a 71% increase for the nine months as compared to 2006. Quarterly Core net income of $14.3 million, or $0.80 per diluted share, a 48% over the prior yea
Slide 13: Stifel Stock Performance as of 11/2/07
Stifel Stock Performance as of 11/2/07 Number One Brokerage Stock (over the last 1, 3 and 5 Years)
Slide 14: Well Capitalized for Growth
Well Capitalized for Growth (8 in thousands) Total Assets $1,518,186 Stockholders’ Equity $406,646 Debentures to: Stifel Financial Capital Trust II - LIBOR plus 1.70% (fixed at 6.38% until 9/30/10), duc 9/30/35 $35,000 Stifel Financial Capital Trust III - LIBOR plus 1.85% (fixed at 6.79% until 6/6/1
Slide 15: Reconciliation of GAAP to Core Earnings
Reconciliation of GAAP to Core Earnings
Slide 16: GAAP to Core Earnings
GAAP to Core Earnings Acquisition Acquisition (Bin thousands) Related | Business Related | Business Revenues $182,983 $ G7 $183,000 $s 55087 $ G30) $551,209 Compensation and benefits 126,652 786 119,566 401,263 40,372 360,891 Operating Expenses 43,059 2,796 40,263, 118.863 6,199 112,664 Total non-in
Slide 17: Quarterly Income Statement Impact
Quarterly Income Statement Impact
Slide 18: Annual Income Statement Impact
Annual Income Statement Impact
Slide 19: Compelling Valuation and Successful Acquisition Track Record
Compelling Valuation and Successful Acquisition Track Record
Slide 20: Key Pricing Metrics
Key Pricing Metrics ($ in thousands) 9/30/2007 Stockholders’ Equity $406,646 Book Value $27.12 Fully Diluted Book Value $25.27 Estimated Stock Price $50.00 Projected Core Eamings ® $65,300 Price to Book - Stated 18 Price to Book - Fully Diluted 2.0 Price to Core Eammgs 13.0 Price to Core Eamings @ 9
Slide 21: Successful Acquisition History
Successful Acquisition History
Slide 22: Industry Consolidation
Industry Consolidation
Slide 23: Industry Landscape - Past
Industry Landscape - Past Inst./Boutique Regionals Regional Banks Large Firms Friedman, Billings, Ramsey Jefferies Group Sanders Morris Harris Cowen Group Hanifen, Imhoff IMP Group KBW Thomas Weisel Partners Sandler O'Neal Fox PittKelton Advest AG Edwards Alex Brown Dain Rauscher Dillon Reed DLI EVE
Slide 24: Industry Landscape -- Acquired
Industry Landscape -- Acquired
Slide 25: Industry Landscape -- Current
Industry Landscape -- Current
Slide 26: Growing Private Client Business
Growing Private Client Business
Slide 27: Private Client Group Net Revenues
Private Client Group [Net Revenues bar chart]
Slide 28: Private Client Group
Private Client Group [bar charts]
Slide 29: Private Client Group 1997 Footprint
Private Client Group 1997 Footprint [Number of Branches & Number of Investment Executives bar charts] [Map]
Slide 30: Private Client Group Organic Growth (1997-2005)
Private Client Group Organic Growth (1997-2005) [Number of Branches & Number of Investment Executives bar charts] [Map]
Slide 31: Private Client Group Acquisitions (Ryan Beck, MJSK)
Private Client Group Acquisitions (Ryan Beck, MJSK) [Number of Branches & Number of Investment Executives bar charts] [Map]
Slide 32: Private Client Group Where are We Going - National Footprint
Private Client Group Where are We Going - National Footprint [Number of Branches & Number of Investment Executives bar charts] [Map]
Slide 33: Broad Capital Market Platform
Broad Capital Market Platform
Slide 34: Equity Capital Markets Overview
Equity Capital Markets Overview [bar charts]
Slide 35: Fixed Income Capital Markets Overview
Fixed Income Capital Markets Overview [bar charts] Nine Dedicated Fixed Income Industry Groups: General Obligation/ Revenue Bonds TIF/TDD Development financing Public Transportation Not-for-profit 503C(3) Orgs School Districts Healthcare Higher and Secondary Schools Special Project Financing Afforda
Slide 36: 2005 Acquisition Bolstered Capital Markets
2005 Acquisition Bolstered Capital Markets Legg Mason Capital Markets
Slide 37: Award Winning Research
Award Winning Research By Industry By Market Cap industry Analyst Companies Business & Consumer Services 15 143 Financial Services "1 161 Healthcare 5 75 Real Estate 5 76 Technology 7 66 Telecom & Media 5 44 ren 30% Transportation 2 29 ince S 103 GB <500mm [ ssoomm-28 fi 26+
Slide 38: Banking Provides Additional Growth Opportunities
Banking Provides Additional Growth Opportunities
Slide 39: Stifel Bank & Trust
Stifel Bank & Trust The addition of banking services will help recruit investment executives and retain client relationships Focus on asset generation in order to leverage our accounts and balances Service the needs of middle market commercial business and high net worth individuals Since the closin
Slide 40: Alignment of Interests
Alignment of Interests
Slide 41: Approximate Fully Diluted Equity Ownership
Approximate Fully Diluted Equity Ownership [ownership pie chart]
Slide 42: Potential Challenges
Potential Challenges Investor Concerns Response Turned Positive Ability to effectively integrate recent acquisitions, particularly given limited cost savings 7 successful acquisitions 60's to 90's Strong strategic rationale for all acquisitions undertaken, with substantial revenue enhancement potent
Slide 43: Key Takeaways
Key Takeaways
Slide 44: Questions and Answers
Questions and Answers
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