Stifel Financial Corporation · NYSE:SF
Stifel Financial — Investor Presentation (September 2010)
42 slides from Stifel Financial's investor presentation, Sep 14, 2010
Slide 1: Stifel Financial Investor Presentation
Stifel Financial Investor Presentation September 2010 STIFEL FINANCIAL
Slide 2: Forward-Looking Statements
STIFEL FINANCIAL Forward-Looking 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 an
Slide 3: I. Stifel Financial Overview
STIFEL FINANCIAL I. al Overview
Slide 4: Stifel Financial Overview
Stifel Financial Overview STIFEL FINANCIAL = Proven abilityto build Global Wealth Management Business * Grown from 86 branches and 621 Financial Advisors in 2004 to 278 branches and 1,916 Financial Advisors in 2010. + Proven Integrator of Acquisitions = Middle-market focus + Research driven, industr
Slide 5: A Growth Story
Stifel Financial Overview STIFEL FINANCIAL A Growth Story. Net Revenues ($MM) CAGR: 20% = 2s 2m Total Client Assets (SBN) CAGR:25% m1 Ea 2002 2003 2004 2005 2006 2007 2008 2000 6/30 rt a ace | | Core Net Income ($MM) @) CAGR:5#%4 ca nm ™ | Ca wo a ae sok Financial Advisors © CAGR:I7% aes 1916 2002 2
Slide 6: 15 Years of Growth - 2010E Net Revenue
STIFEL Stifel Financial Overview FINANCIAL 15 Years of Growth 1995 - 2010E Net Revenue @! $1,600 size $1400 th - . 2010 set to be 15 consecutive year of Record Net Revenue CAGR since 1995: 21% $1,200 CAGR since 2005: 41% $1,000 - $800 $600 - $100 - 200 75 rt ttt 1995 1996 1997 1998 1999 2000 2001 20
Slide 7: Stifel's Peer Analysis Shows Continued Strength
STIFEL Stifel Financial Overview FINANCIAL Stifel’s Peer Analysis Shows Continued Strength x 50 ] ‘“o 400 650 wn ™ 6s00 250 = $49.02 6200 =o 892% 150 =o 100 _— $4.92 Fae mss 10 o r - 1 Lod 2008 2005 2006 ‘2007 ‘2008 2009 ‘2010 aysy00 Yyye yy 1493/05 13708 ys Se inant Crp 6 CAE) — Peer Gaimy (LEE CAG
Slide 8: Cumulative Price Appreciation
Stifel Financial Overview - Cumulative Price Appreciation STIFEL FINANCIAL As of September 13, 2010 Since 12/31/07 - 3 Years Stifel Financial Corp. 39.99 Evercore Partners Inc. 36.19% Greenhill & Co Inc. 21.40% Jefferies Group Inc. 713% KBW Inc 078% Lazard Ltd. 15.88% Raymond James Financia 22.84% J
Slide 9: Consolidation and Industry Retrenchments Drive our Growth
STIFEL Stifel Financial Overview FINANCIAL Consolidation and Industry Retrenchiments Drive our Growth... Stifel Strateg: Continue to build client facing agency-only businesses in financial services Expand private client footprint in the U.S. Expand institutional equity business both domestically and
Slide 10: Track Record in Integrating Transactions
Stifel Financial Overview STIFEL FINANCIAL Stifel’s Track Record in Integrating Transactions: Low Risk Opportunity CO Thomas Weisel Partners Experts in Growth a UBS (66 branches from UBS Financial Services) RYAN BECK&CO. LEGG MASON Builds the premier middle-market investment bank with the seale and
Slide 11: II. Global Wealth Management
STIFEL FINANCIAL II. Global Wealth Management
Slide 12: Global Wealth Management
STIFEL Global Wealth Management FINANCIAL Provides Securities Brokerage Services and Stifel Bank Products Client % Stifelhas grown from 600+ financial advisorsin nank esa ee ee 2005 to over 1,900 financial advisors! 1 Ciigroup/Smith Barney NewYork MY «19286 $1034 m Average 85% retention of shares di
Slide 13: GWM Account Growth
STIFEL Global Wealth Management FINANCIAL GWM Account Growth = Since the acquisition of Butler Wick, 728 Financial ‘Advisors have joined Stifel, 397 through both the Butler Wick and UBS acquisitions m Stifel expects to see opportunities resulting from continued dislocation from competitors mergers G
Slide 14: Stifel Bank & Trust Overview
Global Wealth Management STIFEL FINANCIAL Stifel Bank & Trust Overview Low Risk Asset Growth > Assets of $1.40 bi balance of $1.14 jon, up 22% from the prior year-end lion Investment portfolio of $740 million, up 28% from the prior year-end balance of $579 million Loan portfolio of $436 million, up
Slide 15: III. Institutional Group
STIFEL FINANCIAL III. Institutional Group
Slide 16: Institutional Group
STIFEL Institutional Group FINANCIAL oe Se = m Provides securities brokerage, trading, research services, as well as underwriting and corporate advisory caGRiiwh = SF has opportunistically expanded talent pool in + Victor Nesi, Director of Investment Banking and Co-Director of Capital Markets (June
Slide 17: One of the Largest U.S. Equity Research Platforms
STIFEL Institutional Group FINANCIAL One of the Largest U.S. Equity Research Platforms #105. Equity Research Coverage Significant Coverage Across All Market Caps Companies Under Coverag age Cap Rank Fim Overall _Small Cap sack, 26% P Morgan 7088 247 pa 2 Stifel Nicolaus & Co. 4.073 405 3. Both Memil
Slide 18: Research Accolades
STIFEL Institutional Group FINANCIAL Researchi Accolades Hin J “Best on the Street” Surve: Highlights m= #Lranked research group of investment banks by awards in 2010 Rank Broker # of Awards WallStreet Journal poll with 14 analysts oo 7; a #2U.S. Ranking for 2009FT/StarMine World’s Top Analysts a Ge
Slide 19: Institutional Equity Sales and Trading Platform
Institutional Group STIFEL FINANCIAL Powerful Institutional Equity Sales and Trading Platform In: nal Equity Sales 120 person sales force, commission based Experts in small and mid cap growth and value Team based sales model with 2-4 coverage sales people per account Team leaders have an average of
Slide 20: Fixed Income Capital Markets Capabilities
STIFEL Institutional Group FINANCIAL Strong Fixed Income Capital Markets Capabilities = Comprehensive platform Focus on long-only Agency/Gov'tSecurities + Approximately 50 traders averaging 14 years of money managers and Aircraft Finance & eepenence income funds versus CreditSolutions + Annual clien
Slide 21: Investment Banking Overview
STIFEL Institutional Group FINANCIAL Investment Banking Overview = Full-Service, Industry-Focused Middle-Market Investment Bank m= Over 250 Investment Banking Professionals Investment Banking Product Areas 1112010 Investment Banking Capital Markets Revenues m= Equity & Convertible = Sale & acquisiti
Slide 22: Leadership in the Venture Capital Community
STIFEL Institutional Group FINANCIAL Leadership in the Venture Capital Community Selected Venture Capital-Backed IPOs 2004- 2010YTD U.S. Venture-Backed IPOs $86250000 75000000 715900000 557500000 @ inmailfiors) tof s c Rank Fim Des Volume GEree | Ee pes 2 BofAMemill Lynch 12,624 pcos} | mien ori 7 —
Slide 23: Momentum and Track Record as Bookrunner
Investment Banking STIFEL FINANCIAL Stroug Momentum and Track Record as Bookrinmer 7,900 6,000 ‘F 5000 § v0 | 2 a 3,000 S = 3g z = 200 4,00 ° aed se No.Desls —Denl Value Pipeline {bof Deals Bookrun 17% 23% 19% 24% 17% 26% 16% 20% 28% 550 ‘oaaiaem aoa aaron {s20n0%0 oy aoe rer ‘ama = 2 sf ORITANI S|
Slide 24: U.S. Equity Underwriting Franchise
STIFEL Investment Banking FINANCIAL Accomplished US, Equity Underwriting Franchise - Equity Transactions <$1 billion Market Cap All Managed Equity Deals Since 2005 Bookrun Equity Deals Since 2005 (6 ix bate) cra 6 (Gin hlioas) cra . Rank Fam Deals Vokme Hank Fin Dek Volume 1 Bankof America Merril Ly
Slide 25: Strong Backlog
STIFEL Strong Backlog FINANCIAL Current Filed and Mandated Offerings For | fof or For | for or For | For | wor Managed Booknin Bookrun || Managed Bookrun Booknn || Managed Gookrun —_ Bookrun wos a nom 6 1 ox ‘s 2 om Demutuaizations 6 6 400% 2 2 100% 8 8 100% Fotow Ons 5 som 6 3 wm 2 som PIPES 0 o wa
Slide 26: IV. Second Quarter 2010 Highlights
STIFEL FINANCIAL IV. Second Quarter 2010 Highlights
Slide 27: Chairmen's Comments
STIFEL Chairmen’s Comments FINANCIAL “We are very pleased to report record quarterly revenue and record six- month net income and revenue results, which reflect the investments we've made over the past several years. The merger with Thomas Weisel Partners closed on July 1, 2010, and we are confident
Slide 28: Six Months Ended June 30, 2010 Highlights
STIFEL Six Months Ended June 30, 2010 Highlights FINANCIAL = — Record net revenues of $640 million, a 33% increase over the comparable period in 2009. = The GWM segment posted net revenues of $399 million, a 59% increase over the comparable period in 2009. * The IG segment posted net revenues of $23
Slide 29: Six Months Ended June 30, 2010 Results
Stifel Financial Corp. STIFEL FINANCIAL Sixmonths ended June 30, 2010 Results (Sin thousands) Net revenues Compensation and benefits Non-comp operating expenses Total non-interest expenses Income before income taxes Provision for income taxes Net income Diluted EPS Ratios to net revenues: Compensati
Slide 30: Sources of Revenues
STIFEL Sources of Revenues FINANCIAL ‘Quarter Ended ‘Six Months Ended % of Met Revenues MK of Met Revenues (6m thouends) ‘ i erayia —_s/anjon Change fenton aaron |_afayio fanaa Chews Gfanft0—/sey00 Revenuas Principal transactions $ 12923 § 121,261 La — AK ABA 2ag2aa $ 718,539 100K SK ASA Commissions
Slide 31: Segment Comparison
STIFEL Segment Comparison. FINANCIAL Quarter Ended Six Months Ended {$ in thousands) 6/30/10 6/30/09 %Change | 6/30/10 6/30/09 _% Change Net revenues: Global Wealth Management $ 199,940 $ 136,200 468% |$ 399,361 $251,252 58.9% Institutional Group 124,602 125,136 (0.4%) | 237,894 230,608 3.2% Other 3
Slide 32: Statement of Financial Condition
Statement of Financial Condition STIFEL FINANCIAL ‘e000 5000 2000 ‘1000 pe ee ee ee ee ee eT) Total Capitalization © 1200 zoos 2004008007 2008200 ate sStoednotdrs Equity © Tse Prefer ee pe en) (a) Total Capitalisation’ defined az stocbbolde's gui pls the tt prefered ecwsitie (2) Lever em Book Value
Slide 33: V. TWP Merger
STIFEL FINANCIAL V. TWP Merger
Slide 34: Pro Forma Combined Net Revenues
STIFEL Stifel Financial Corp. FINANCIAL Pro Forma Combined Net Revenues Six Months Ended June 30, 2010 Pro Forma {8 in thousands) Stifel TWPG Combined Revenues Principal transactions & commissions § 449012 $ 37,730 $ 486,742 Asset mgt and service fees 85,241 7,252 92,493 Investment banking BATB 46,2
Slide 35: Estimated Annual Fixed Operating Expenses
TWPG Merger STIFEL FINANCIAL Estimated Annual Fixed Operating Expenses TWPG {$n thousands} Stifel a) __Estimate (2) Total Fixed operating expenses: Occupancy and equipment rental $103,000 $ 10400 $113,400 Communication and office supplies 60,600 10,800 71,400 Commissions and floor brokerage 22,000 2
Slide 36: Pro Forma Equity Roll Forward
STIFEL Stifel Financial Corp. FINANCIAL Pro Forma Equity Roll Forward Proforma Unit Stifel (S in thousands) efsafio TWPG Combined _ Modification __Proforma Beginning Equity (1/1/2010) $ 873,500 $ = $ 873,500 $ 2 $ 873,500 Netincome 45,000 2 45,000 = 45,000 Merger Consideration - 274,000 274,000 = 27
Slide 37: Pro Forma Estimate and Unit Vesting
STIFEL Stifel Financial Corp. FINANCIAL Pro Forma Estimate and Unit Vesting 2010E Half Year Proforma itlustrotion Proforma TwPes Combined Proforma Stifel 20106 Stifel Breakeven — preunit after Unit (in thousands, except per share data) Consensus (1) [Mj Consensus (2) eps Vesting Unit Vesting Vesting
Slide 38: Dodd-Frank Wall Street Reform and Consumer Protection Act
Dodd-Frank Wall Street Reform and Consumer Protection Act STIFEL FINANCIAL yy NM OM Provisions of Interest to Stifel Financial Corp. Fiduciary Duty SEC Authority to Restrict Mandatory Pre-Dispute Arbitration Consumer Financial Protection New Fees » Higher Deposit Insurance Costs >» SIPC Fees Volcker
Slide 39: FINANCIAL
STIFEL FINANCIAL
Slide 40: Peer Metrics
Peer Metrics STIFEL FINANCIAL ear Revenue Change lin Sows Fartet (1]COWNY data. (2] CM, SWS and COUNT datanM. 25x 20% ax x osx 00x TR SF KEW RP OPY IMP PIC FECM COWN SWS
Slide 41: Looking Forward
STIFEL Looking Forward. FINANCIAL We See Opportunity Stifel is well-positioned in the current market: = Dislocationcreating opportunity for market share gains = Ability to add talented professionals = Expand Fixed Income /High Yield a Evolving regulatory framework (Stifelis already regulated by the
Slide 42: Stifel Financial
Stifel Financial Investor Presentation STIFEL FINANCIAL
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