Stifel Financial Corporation · NYSE:SF
Stifel Financial — Investor Presentation (June 2011)
39 slides from Stifel Financial's investor presentation, Jun 9, 2011
Slide 1: Stifel Financial Investor Presentation
Stifel Financial Investor Presentation June 2011
Slide 2: Forward-Looking Statements
Forward-Looking Table of Contents Statements This presentation may contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 that involve significant risks, assumptions, and uncertainties, including statements relating to the market opportunity a
Slide 3: I. Stifel Financial Overview
I. Stifel Financial Overview
Slide 4: Stifel Financial Overview
Stifel Financial Overview Key Points of Differentiation Firm at a Glance Proven growth, stability and scale Global Wealth Institutional Management (GWM) Group (IG) Balanced business model Private Client Equity & Convertible Stifel Bank & Trust Capital Raising Proven ability to build Glob
Slide 5: A Growth Story
Stifel Financial Overview A Growth Story… Net Revenues ($MM) Core Net Income ($MM) Total Equity ($MM) $1,500 $1,382 $140 $1,400 $1,254 $1,287 CAGR: 39% CAGR: 43% $125 CAGR: 42% $1,200 $1,091 $120 $1,200 $870 $100 $1,000 $873 $900 $763 $76 $80 $73 $800 $67 $593 $600 $452 $60 $600 $40 $425 $264 $40 $4
Slide 6: Balanced Business Model
Stifel Financial Overview Balanced Business Model Balanced business model facilitates growth during volatile markets Stable GWM business is augmented by profitable and growing Institutional Group Proven ability to grow all businesses Net Revenues Operating Contribution 2010 3 Months 2011 2010
Slide 7: Years of Growth
Stifel Financial Overview 15 Years of Growth 1995 – 2010 Net Revenues ($MM) $1,600 2010 Represented 15 Years of Consecutive Record Net Revenues $1,382 $1,400 CAGR since 1995: 20% CAGR since 2005: 39% $1,200 $1,091 $1,000 $870 $800 $763 $600 $452 $400 $247 $264 $217 $178 $177 $188 $200 $123 $127 $141
Slide 8: Stifel's Strong Stock Performance
Stifel Financial Overview Stifel’s Strong Stock Performance Assumes $100 Invested on December 31, 2005 $300 Stifel Financial Corp.(growth of 147.6% & 19.9% CAGR*) S&P 500 Index(growth of 11.9% & 2.3% CAGR*) $250 AMEX Securities Broker/Dealer Index(growth of -38.1% & -9.1% CAGR*) $200 Dollars $150 $1
Slide 9: Cumulative Price Appreciation
Stifel Financial Overview Cumulative Price Appreciation As of May 31, 2011 Since 12/31/10 Since 12/31/05 Since 12/31/00 SWS Group 28.71% Stifel Financial Corp. 141.04% Stifel Financial Corp. 962.06% Edelman Financial Group 9.79% Raymond James Financial 42.31% Jefferies Group 183.39% Raymond James Fi
Slide 10: Significant Strategic Transactions
Stifel Financial Overview - Significant Strategic Transactions 2005 2007 2009 2010 Company Associates 400 500 380 320 Primarily by equity Primarily by equity Primarily by cash and Primarily by equity issuance Financed issuance to seller and FA FA notes/equity issuance to principals notes/equity issu
Slide 11: Strategic Alliance With Miller Buckfire
Stifel Financial Overview Summary of Strategic Alliance With Premier Advisory Investment Bank Miller Buckfire Strategic alliance with Miller Buckfire whereby Stifel Financial will invest $40 million Transaction for Senior Preferred interests in Miller Buckfire Enhances Stifel’s investment bankin
Slide 12: Strategic Opportunity With Miller Buckfire
Stifel Financial Overview Summary of Strategic Opportunity With Premier Advisory Investment Bank Miller Buckfire Miller Buckfire is a leading investment bank focused on financial restructuring, mergers and acquisitions, and debt and equity placements 15-year history of providing objective and th
Slide 13: Miller Buckfire's Selected Restructuring Transactions
Stifel Financial Overview Miller Buckfire’s Selected Restructuring Transactions Span a Wide Range of Industries Industry Transactions Examples Automotive 14 Consumer Products 18 Energy/Natural Resources 16 Lodging & Gaming/Real Estate 14 Industrial 22 R FPA Medical HIP of New Healthcare 7 Management
Slide 14: II. Global Wealth Management
II. Global Wealth Management
Slide 15: Global Wealth Management
Global Wealth Management Provides Securities Brokerage Services and Stifel Bank Products Overview Grown from 600+ financial advisors in 2005 to over 1,900(1) financial advisors currently Proven organic growth and acquirer of private client business (56 UBS branches, Butler Wick, Ryan Beck) Ret
Slide 16: Opportunity Through Growth
Global Wealth Management Opportunity Through Growth GWM Broker Growth (1) GWM Branch Growth 2,500 300 285 285 272 2,000 1,885 1,935 1,947 250 196 200 1,500 1,315 1,163 148 150 1,000 111 735 100 92 644 500 50 0 0 2005 2006 2007 2008 2009 2010 03/31/11 2005 2006 2007 2008 2009 2010 03/31/11 GWM Accoun
Slide 17: Global Wealth Management – Stifel Bank & Trust
Global Wealth Management – Stifel Bank & Trust Overview Strength of Brokerage Position Acquired FirstService Bank, a St. Louis-based, Missouri- Offers banking products (securities based loans and chartered commercial bank, in April 2007 mortgage loans) within the GWM client base With the acqui
Slide 18: Stifel Bank & Trust Performance
Global Wealth Management – Stifel Bank & Trust Performed well both operationally and in terms of asset quality Net Interest Margin NPA ¹/Total Assets 5% 1.5% 4.0% 1.2% 1.2% 4% 3.7% 3.5% 3.1% 3.0% 0.9% 0.9% 2.9% 2.9% 3.0% 1.0% 3% 2.4% 0.7% 2.2% 2.2% 1.8% 0.5% 2% 1.6% 0.5% 0.4% 0.4% 0.3% 1% 0.2% 0.2%
Slide 19: III. Institutional Group
STIFEL FINANCIAL IIL. Institutional Group
Slide 20: Institutional Group
Institutional Group Overview Net Revenues ($MM)(1) $800 Provides securities brokerage, trading, research, CAGR: 18% underwriting and corporate advisory services $668 $626 $587 Largest provider of Equity Research in the U.S. $600 $559 $174 $84 #1 ranked in 2010 WSJ Best on the Street Survey $45
Slide 21: Second Largest U.S. Equity Research Platform
Institutional Group – Research Second Largest U.S. Equity Research Platform U.S. Equity Research Coverage (1) Stifel Research Highlights Companies Under Coverage Second largest provider of U.S. Equity Research (2) Rank Firm Overall Small Cap Currently cover more than 50% of the S&P 500 1 JPMorga
Slide 22: The Stifel Research Model
Institutional Group – Research The Stifel Research Model The Stifel Research Model Research Accolades >50% of analysts worked in the field they cover Proven, Consistent - Qualitative Results Only firm ranked in the top 12 each year for the last 8 ~35% of analysts initially joined as associates
Slide 23: Strong Research Performance
Institutional Group – Research Strong Research Performance: Top 4 in 4 of 10 Industry Verticals Trailing 24 Months Year to Date 2011 100% 88.0% 12% 84.8% 10.3% 80% 10% 8.3% 8% 7.0% 60% 44.5% 46.4% 6% 40% 4% 20% 2.0% 2% 0% 0% Buy Hold Sell S&P 500 Buy Hold Sell S&P 500 Broker Recommendations Ranked b
Slide 24: Equity Sales and Trading
Institutional Group – Equity Sales and Trading Powerful Platform Spanning North America and Europe Institutional Equity Sales Equity Trading 130 person sales force, commission based 40 coverage traders located in Experts in small and mid cap growth and value Baltimore, New York, Boston, Dall
Slide 25: Strong Fixed Income Capital Markets Capabilities
Institutional Group – Fixed Income Strong Fixed Income Capital Markets Capabilities Overview Client Distribution Comprehensive platform Approximately 50 traders averaging 14 years of Money Other experience Manager 7% 34% Annual client trade volume approaching $200 billion Credit Union No pro
Slide 26: Accomplished U.S. Equity Underwriting Franchise
Institutional Group – Investment Banking Accomplished U.S. Equity Underwriting Franchise – All Equity Transactions All Managed Equity Deals Since 2005 Bookrun Equity Deals Since 2005 ($ in billions) # of $ ($ in billions) # of % $ Rank Firm Deals Volume Rank Firm Deals Bookrun Volume 1 Bank of Ameri
Slide 27: Strong Momentum and Track Record as Bookrunner
Institutional Group – Investment Banking Strong Momentum and Track Record as Bookrunner 8,000 70 7,000 No. Deals 60 6,000 Deal Value Deal Value ($M) 50 5,000 No. Deals 40 4,000 30 3,000 2,000 20 1,000 10 0 0 Filed/Mandated 2002 2003 2004 2005 2006 2007 2008 2009 2010 Pipeline % of Deals Bookrun 17%
Slide 28: Leadership in the Venture Capital Community
Institutional Group – Investment Banking Leadership in the Venture Capital Community Selected Venture Capital-Backed IPOs All Managed Venture Capital-Backed IPOs Since 2005 ($ in billions) # of $ Rank Firm Deals Volume 1 Stifel Nicolaus Weisel 89 $11.9 2 Morgan Stanley 77 $14.1 3 Piper Jaffray & Co
Slide 29: IV. First Quarter 2011 Financial Results
IV. First Quarter 2011 Financial Results
Slide 30: Stifel Financial Corp. Results
Stifel Financial Corp. Results Three months ended March 31, 2011 Three Months Ended March 31, 2011 Three Months Ended Merger- 12/31/10 Related 3/31/10 % (Non- % (2) (2) ($ in thousands, except per share amounts) GAAP Charges (1) Non-GAAP (GAAP) Change GAAP) Change Net revenues $ 366,613 $ 6 $ 366,61
Slide 31: Sources of Revenues
Sources of Revenues Quarter Ended % % ($ in thousands) 3/31/11 3/31/10 Change 12/31/10 Change Revenues Commissions $ 155,786 $ 105,035 48.3% $ 139,605 11.6% Principal transactions 92,859 117,420 (20.9%) 89,996 3.2% Asset mgt and service fees 57,680 41,103 40.3% 57,042 1.1% Investment banking 41,418
Slide 32: Principal Transactions Revenues
Principal Transactions Revenues Quarter Ended % % ($ in thousands) 3/31/11 3/31/10 Change 12/31/10 Change Taxable debt $ 51,419 $ 64,691 (20.5%) $ 46,924 9.6% Municipal debt 19,538 16,842 16.0% 18,520 5.5% Equities 11,623 22,284 (47.8%) 11,396 2.0% Other 10,279 13,603 (24.4%) 13,156 (21.9%) $ 92,859
Slide 33: Global Wealth Management
Global Wealth Management Quarter Ended % % ($ in thousands) 3/31/11 3/31/10 Change 12/31/10 Change Commissions $ 101,762 $ 79,587 27.9% $ 92,558 9.9% Principal transactions 56,163 59,871 (6.2%) 58,520 (4.0%) Asset management & service fees 57,530 40,894 40.7% 56,953 1.0% Net interest 11,169 11,034 1
Slide 34: Stifel Bank & Trust
Stifel Bank & Trust An Operating Unit of GWM Quarter Ended ($ in thousands) 3/31/11 3/31/10 % Change 12/31/10 % Change Net revenues: Interest 11,203 8,087 38.5% 9,287 20.6% Other income 1,932 2,113 (8.6%) 3,553 (45.6%) Total revenues 13,135 10,200 28.8% 12,840 2.3% Interest expense 4,237 448 845.8%
Slide 35: Institutional Group Results
Institutional Group Results Quarter Ended % % ($ in thousands) 3/31/11 3/31/10 Change 12/31/10 Change Commissions $ 54,025 $ 25,448 112.3% $ 47,047 14.8% Principal transactions 36,696 57,549 (36.2%) 35,564 3.2% Investment banking 35,106 28,918 21.4% 81,583 (57.0%) (1) Other income 1,167 1,377 (15.3%
Slide 36: Institutional Group Revenues
Institutional Group Revenues Quarter Ended % of Net Revenues % % ($ in thousands) 3/31/11 3/31/10 Change 12/31/10 Change 3/31/11 3/31/10 12/31/10 Sales and trading: Equity $ 52,398 $ 38,651 35.6% $ 46,521 12.6% 41.2% 34.2% 28.0% Fixed income 38,323 44,346 (13.6%) 36,090 6.2% 30.2% 39.1% 21.8% 90,721
Slide 37: Statement of Financial Condition
Statement of Financial Condition As of March 31, 2011 Total Assets ($ in Billions) Total Capitalization ($ in Billions) $5.0 $1.5 $1.4 $4.5 $1.3 $4.2 $0.1 $0.1 $4.0 $1.2 $3.2 $1.0 $3.0 $0.9 $0.1 $0.7 $2.0 $0.6 $0.5 $0.1 $1.3 $1.3 $1.5 $1.6 $0.1 $0.9 $1.1 $0.3 $1.0 $0.8 $0.3 $0.2 $0.6 $0.1 $0.4 $0.1
Slide 38: V. Conclusion
STIFEL FINANCIAL
Slide 39: Opportunities Drive our Growth
Opportunities Drive our Growth Stifel is Well-Positioned to Take Advantage of Opportunities Strategic Initiatives Attract and retain high-quality talent Continue building client facing, agency-only businesses Continue to expand private client footprint in the U.S. Continue to expand institut