Stifel Financial Corporation · NYSE:SF
Stifel Financial — Investor Presentation (March 2008)
52 slides from Stifel Financial's investor presentation, Mar 6, 2008
Slide 1: Stifel Financial Corp. Investor Presentation March 2008
Stifel Financial Corp. Investor Presentation March 2008
Slide 2: Issuer Free Writing Prospectus
Issuer Free Writing Prospectus Filed Pursuant To Rule 433 Registration Statement No. 333-147515 March 5, 2008 The issuer has filed a registration statement (including a prospectus) with the SEC for the offering to which this communication relates. Before you invest, you should read the prospectus in
Slide 3: Forward looking statement
Forward looking statement This presentation contains "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 and future business pros
Slide 4: Table of Contents
Table of Contents Offering Overview [a] Who We Are [2] ee El a CI a El SC
Slide 5: Offering Overview
Offering Overview
Slide 6: Offering Summary
Offering Summary Issuer: Stifel Financial Corp. Offering Type: Secondary / Add-On Offering Offering Size: 2.2 million common shares 300,000 primary / 1,900,000 secondary Shares Outstanding: 15,665,146 pre-offering / 15,965,146 post-offering Overallotment Option: 15% (all primary shares) Selling Shar
Slide 7: Why Buy Stifel Financial (SF)
Why Buy Stifel Financial (SF) Opportunistic timing to become a shareholder Diversified business Growth story Disciplined acquirer and skilled integrator Scalable platform Superior ROE Attractive relative valuation Industry retrenchments provide growth opportunity
Slide 8: Who we are
Who we are
Slide 9: Stifel Profile
Stifel Profile General Parent Company: Stifel Financial Corp. (NYSE:SF) Nearly 3,000 associates in 175 offices in U.S. and Europe Management and associates currently own approximately 50% of the firm Strong financial performance; 2007 marked our 12th consecutive year of record net revenue Market Inf
Slide 10: Stifel History
Stifel History Founded in St. Louis in 1890 Strong track record in 20s - 50s as an innovative underwriter Led numerous significant financings Mackinaw Bridge, O'Hare Airport NYSE Member firm since 1958 Seven successful acquisitions from the 1960s - 2007 IPO NYSE 1983 Symbol - SF
Slide 11: Overview
Overview Diversified business model National footprint of 1,150+ financial advisors in 148 offices A leading brokerage and investment banking firm off Wall Street Award winning research platform Stifel Bank Growth through organic and opportunistic acquisitions Industry consolidation has created trem
Slide 12: Strong Financial Performance - Record Results
Strong Financial Performance - Record Results
Slide 13: Why We Are Different Building Shareholder Value
Why We Are Different Building Shareholder Value
Slide 14: Attractive Risk Adjusted Returns
Attractive Risk Adjusted Returns
Slide 15: Experienced Team with Long Tenure
Experienced Team with Long Tenure Management Years Experience Years at Stifel * Overview Ron Kruszewski Chairman, President & CEO 23 years 11 years n President & CEO since September 1997 n Chairman since April 2001 Jim Zemlyak Senior VP, Treasurer & CFO 23 years 9 years n Senior VP, Treasurer & CFO
Slide 16: With Alignment of Interests
With Alignment of Interests 12% I insider J institutional [[] other shares awned by Stifes fermer Chairman as
Slide 17: Diversified Business w/ Multiple Growth Channels
Diversified Business w/ Multiple Growth Channels
Slide 18: Highly Regarded Private Client Group
Highly Regarded Private Client Group Value-added Investment Advice by Independent Thinkers Creates Growth Powerful network of 1,163 financial advisors Financial Advisors instilled with entrepreneurial attitude through compensation structure and ownership alignment Concentration in the Midwest and Mi
Slide 19: Leading "Off Wall Street" Capital Markets Platform
Leading "Off Wall Street" Capital Markets Platform
Slide 20: Award Winning Broad-Based Research
Award Winning Broad-Based Research Award Winning Research Across Sectors - Quality Investment Ideas Leading off Wall Street research franchise with 700 companies covered across 8 industries 60 research analysts
Slide 21: 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 22: How We Built the Firm
HOW WE BUILT THE FIRM DISCIPLINED ORGANIC GROWTH AND HIGHLY ACCRETIVE ACQUISITONS STIFEL ICOLAUS
Slide 23: Successful Acquisition History
Successful Acquisition History
Slide 24: Resulting in Strong Top Line and Per Share Growth
Resulting in Strong Top Line and Per Share Growth
Slide 25: Private Client Group 1997 Footprint
Private Client Group 1997 Footprint
Slide 26: Private Client Group Organic Growth (1997-2005)
Private Client Group Organic Growth (1997-2005)
Slide 27: Private Client Group Acquisitions and New Expansion
Private Client Group Acquisitions and New Expansion (Ryan Beck, MJSK, Westward Growth)
Slide 28: 2005 Acquisition Bolstered Capital Markets
2005 Acquisition Bolstered Capital Markets September 30, 2005
Slide 29: 2005 Acquisition Bolstered Capital Markets: Legg Mason Capital Markets
2005 Acquisition Bolstered Capital Markets Legg Mason Capital Markets
Slide 30: 2005 Acquisition Bolstered Capital Markets Today
2005 Acquisition Bolstered Capital Markets Today
Slide 31: Stifel Bank & Trust
Stifel Bank & Trust Bought a bank to expand the Stifel platform Allows firm to offer liability products and services to Private Client Group Clients Selected a small conservative bank to limit asset quality problems
Slide 32: Growth Strategy
Growth Strategy
Slide 33: Overall Growth Strategy
Overall Growth Strategy Expand private client footprint in the U.S. Expand institutional equity business both domestically and internationally Grow investment banking Focus on asset generation within banking operations Approach acquisition opportunities with discipline Consolidation and Industry Ret
Slide 34: Industry Landscape -- Past
Industry Landscape -- Past Institutional/Boutique Regionals Alex Brown Kemper Securities i Cowen Group Legg Mason Dillon Read Dain Rauscher McDonald Investments DLJ Davenport Morgan Keegan Fox Pitt Kelton DA Davidson Oppenheimer Holdings Friedman Billings Ramsey | EVEREN Securities Piper Jaffray Jef
Slide 35: Industry Landscape -- Acquired
Industry Landscape -- Acquired
Slide 36: Industry Landscape -- Current
Industry Landscape -- Current
Slide 37: Private Client Group Where Are We Going - National Footprint
Private Client Group Where Are We Going - National Footprint
Slide 38: Build Out Our Capital Raising Capabilities
Build Out Our Capital Raising Capabilities
Slide 39: Growth Strategy of Stifel Bank
Growth Strategy of Stifel Bank
Slide 40: Financial Highlights
FINANCIAL HIGHLIGHTS
Slide 41: Annual Highlights
Annual Highlights Record GAAP net revenue of $763.1 million, a 69% increase for 2007 as compared to 2006, making 2007 the twelfth consecutive year of record net revenues. Record GAAP net income of $32.2 million, or $1.88 per diluted share, a 108% increase for 2007 as compared to 2006. Book value per
Slide 42: Year Core Income Statements
5 Year Core Income Statements
Slide 43: Net Revenues ($ Millions)
Stifel Financial Net Revenues ($ Millions) $800 7 Po) $763 $600 7 CAGR 32% $452 $400 | , 2 $ $ $200 + 30 + 2002 2003 2004 2005 2006 2007
Slide 44: Core Net Income ($ Millions)
Stifel Financial Core Net Income ($ Millions) $80 —_ $60 4 ‘ $66.8 $39.6 $40 4 $20 “| | 50 ll | 2002 2003 2004 2005 2006 2007
Slide 45: Diluted Earnings per Share
Stifel Financial Diluted Earnings per Share 3 aa $4.00 ; 5390 | $2.85 $3.00 + $1.72 $2.00 + $1.00 7 $9.26 $0.00 + 2002 2003 2004 2005 2006 2007
Slide 46: Total Equity ($ Millions)
Stifel Financial Total Equity ($ Millions) $450 7 $300 7 $150 7 so 2002 2003 2004 2005 2006
Slide 47: Book Value Per Share
Stifel Financial Book Value Per Share $30.00 7 aa | $27.54 $25.00 7 CAGR $20.00 5 $15.00 5 $10.00 5 $5.00 te = - <i — 2002 2003 2004 2005 2006 2007
Slide 48: Non-Core Charges
Non-Core Charges 2006A 2007A 2008E 2009E Net Income Impact Core Net Income $39,590 $66,788 NA NA Net Acquisition Expenses ($24,159) ($34,618) ($15,000) $0 GAAP Net Income $15,431 _ $32,170 NA NA EPS Impact Core Diluted EPS $2.85 $3.90 NA NA Net Acquisition Expenses ($1.74) ($2.02) ($0.88) $0 GAAP Di
Slide 49: Compelling Valuation
Compelling Valuation
Slide 50: Key Pricing Metrics
Key Pricing Metrics (3 in thous ands, except pershare data) 12/31/2007 Pro Forma * Stockholders! Equity $424,637 $437,767 Book Value $27.54 $27.85 Fully Diluted Book Value $25.81 $26.13 Stock Price (3/4/08) $46.07 $46.07 Core 2007 Eamings $66,788 $67,182 Price to Book (Stated) 1.67 1.65 Price to Cor
Slide 51: Key Takeaways
Key Takeaways Opportunistic timing to become a shareholder Diversified business Growth story Disciplined acquirer and skilled integrator Scalable platform Superior ROE Attractive relative valuation Industry retrenchments provide growth opportunity
Slide 52: Questions and Answers
Questions and Answers
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