Stifel Financial Corporation · NYSE:SF
Stifel Financial — Investor Presentation (March 2013)
34 slides from Stifel Financial's investor presentation, Mar 18, 2013
Slide 1: Stifel Investor March 2013 Presentation
Exhibit 99.1 Stifel Investor March 2013 Presentation
Slide 2: Forward-Looking Disclaimer
Forward-Looking Disclaimer This statements These particular, costs You the Actual quarterly actions Note The compensation Specifically, Company those are provided future, Company should presentation Regarding and in statements results of prior reports benefits, believes competitors, these unless rel
Slide 3: Market Overview
STIFEL Market Overview
Slide 4: Market Overview
Market 140 Russell Dow Amex Equity $60 28 ($100) ($80) ($60) ($40) ($20) ?18 ?81 ?64 Q2 ?10 Q3 ?22 Q4 ?49 Q1 ?67 45 Yield S&P 10 Risk Date 2013E 4(2) YR Risk 11 12 13 120 $40 Premium premium² 500 500¹ range 1/3/11 B/D TD 3.3% calendar Mutual Overview Indices 2000 100 $20 premium 7.2% includes 3/31/1
Slide 5: Stifel Overview
STIFEL Stifel Overview
Slide 6: Stifel Financial Overview
Financial $2.0 2012 Balanced Top 36% Global Private Stifel Customer Asset National $138 Independent Institutional Equity M&A Largest Broad 6(1) As performing billion Insider Represented billion Overview Financial Bank Management Advisory product of & Wealth Client U.S. presence 2/20/13. Fixed busine
Slide 7: Strategy: Position Stifel for Growth
Strategy: Position ?Unburdened ?Low ?Built ?Capitalize ?Select ?Drive 17th Net $1,600 $1,800 1995 $1,613 $1,417 $1,382 $1,091 $870 $763 $452 $264 $247 $217 $188 $177.9 $177.5 $141 $127 $123 $110 7$87 Revenues Consecutive 1996 leverage the revenue $1,400 growth Stifel Building Company 1997 onby($MM)
Slide 8: Stifel's Value Proposition: Growth, Scale, and Stability
Stifel’s/with Bulge ?Raise ?Deleverage ?Changing ?Large-cap ?Headcount ?Size ?Stability ?Large ?Investment ?Outstanding ?Retail Middle ?Firm ?Good ?Growth ?Financial Issues ?Trading 8?Few focus Bracket common research scale distribution Market Differentiated investor support (financial /retail busin
Slide 9: A Growth Story
A Growth Net Core Total Financial Book CAGR: (1) (2) 9(4) CAGR Client Book Revenues Net Equity Client Value 24% 38% 26% Value Income Advisors assets—Includes Story… reflects Per Assets ($MM)(1) ($MM)(1) Per Share(1)(4) ($MM)(1) years (1)(3) ($BN)(1)(2) Share2006 adjusted FDIC-insured to 2012. for Ap
Slide 10: Building Scale Each Year
Building Each ?Announced ?FIG ?Restructuring ?Fixed ?Growth ?Investment ?Research, ?July ?Revenue ?October ?Public ?Seamless ?Bank ?Financial ?Grown ?April ?Private ?Capital ?February ?Significant ?Achieved ?December 10 merger Investment Sales Research 2010 2007 holding Income Finance assets Client
Slide 11: Stability: A Balanced Business Model
Stability ?Balanced ?Stable ?Proven Net Operating Note: 11 Revenues NetGWM ability Achieved revenues Contribution business business to grow Through and model is operating allaugmented facilitates businesses A Balanced contribution growth byBusiness profitable during excludes Model and volatile growi
Slide 12: Strong Balance Sheet
Strong As $7.0 $5.0 $4.2 $3.2 $1.6 $1.1 Total $0.3 $0.5 $0.7 $1.0 $0.6 $0.9 $1.4 $0.4 $2.0 $1.3 $1.5 Stockholders’ Trust Senior Leverage 4.0x 3.3x 1.9x 6.5x 2.3x 27x. 4.4x 2.9x 3.7x 13.0x 3.1x 2.0x 13.6x 3.6x SN SB&T Book $30 2006 $27.24 $25.10 $24.42 $19.24 $15.12 $12.24 $8.23 (1)Per 12 December &$
Slide 13: Top Performing Stock Since 2000
Top Performing Cumulative 19.06% S&P Evercore -51.50% Since Stifel Raymond Group 13 500 Financial 12/31/12 12/31/07 12/31/00 NM Oppenheimer FBR Index Partners James Evercore Price &9.43% Corp. Stock Financial Co. Appreciation 45.38% 103.67% -51.91% Partners 14.54% 56.73% 865.80% 18.93% JMPLegg 46.42
Slide 14: Opportunities to Drive Growth
Opportunities ?Attract Initiatives ?Continue ?Focus ?Expand ?Approach 14 on and traditional quality to acquisition retain expand Drive asset high-quality asset our our fixed investment opportunities generation Growth private management income talent client banking businesses within with footprint ca
Slide 15: Merger With KBW
STIFEL Merger With KBW
Slide 16: KBW Merger Integration Update
KBWemployees Integration Closed Tom Key Report 16 Michaud Merger core the merger Update vs.and non?core remain February Michael with going Zimmerman 15, the forward 2013 firm asjoined contracts Stifel’s rollBoard off until of Directors the integration is complete
Slide 17: Stifel Pro Forma with KBW
KBW$995.2 (Private (Bank Global (Institutional) Private Stifel Customer Asset Middle?Market Award?winning Institutional Equity M&A Financial Focused Revenues ($MM) 4Q12 2012 17 Bank $255.1 Management Advisory Merger & & Wealth Client Total Client) Research M&A Institutional Equity Trust) Fixed Insti
Slide 18: Global Wealth Management
STIFEL Global Wealth Management
Slide 19: Global Wealth Management Overview
Global Provides ?Grown Overview ?Proven ?Retail ?Goal ?Strategy ?Expanding Net Operating (1) (2) 19 Includes CAGR Revenues of Wealth investors from organic providing Securities of Contribution reflects U.S. Independent recruiting 600+ ($MM) Management growth are footprint years price Brokerage finan
Slide 20: Global Wealth Management Growth Opportunity
Global Opportunity GWM (1) 20 Includes Account Assets Broker Branch Wealth Independent Through Under Growth Growth Management Growth Management Growth (1)Contractors. Growth (2) Client ($MM) assets—Includes (2) FDIC-insured products as of 12/31/12 for years 2008-2012.
Slide 21: Global Bank Overview
Global ?Acquired Overview ?Stifel ?Balance ?Funded ?Maintain Strength ?Offers ?Built-in ?High ?Highly Interest Investment Loan Total: Note: (1) (2) 21 Average Construction Portfolio Data $2.9 $2.3 $823 net Financial Wealth mortgage Earnings deposit of by source sheet worth high FirstService Billion
Slide 22: Institutional Group
STIFEL Institutional Group
Slide 23: Institutional Group Overview
Institutional ?Provides Overview ?Largest ?2nd ?Full ?Comprehensive Net $800 CAGR: 2006 $619 $507 $626 $668 $587 $559 $455 Equity Fixed (1) on 23 the Based Revenues largest $600 2007 Service Income Company’s Brokerage 20% providers on securities $400 2008 Group Equity 2011 (4) Middle-Market Brokerag
Slide 24: Institutional Research Coverage
Institutional Largest U.S. 987654321Companies 10 11 12 14 15 16 17 18 19 20 21 22 23 25 Stifel ?2nd ?Largest ?Consumer ?Internet, ?FIG ?Real ?Ranked ?Technology Coverage Large Small Mid (1) Note: billion. 24Wells Stifel JPMorgan Bank Raymond Barclays Citi Goldman Credit Morgan William Deutsche UBS R
Slide 25: Powerful Institutional Equity Platform
Powerful Institutional ?110 ?Experts ?Team ?Offices ?Accounts ?Managed ?Extensive Equity ?53 ?Baltimore, ?24 ?8 ?Profitable Extensive ?Agency ?Major ?Multi-execution ?Dedicated 25 specialized sales position person Trading based leaders liquidity in in model traders Platform Distribution over range m
Slide 26: Institutional Fixed Income Overview
Institutional Strong ?Comprehensive Overview ?Widespread investment Client Platform ?Focus ?Consistency ?Identification ?Agency/Gov’t ?Money ?Asset-Backed ?Mortgages ?Investment ?High ?Aircraft ?Whole ?Emerging ?Municipals ?Structured ?Stifel (1) (2) 26 Client Other Yield Distribution Capital Fixed
Slide 27: Investment Banking Accomplishments and Rankings
Investment Accomplished 8All Bookrun 97654321($ 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Source: represents 27Wells Stifel RBC Bank JPMorgan Morgan Citi Barclays Credit Goldman Deutsche in UBS Jefferies William Credit Goldman JMP BMO Janney Ladenburg Stifel RBC Raymond Piper Roth Lazard Rober
Slide 28: Financial Results
STIFEL Financial Results
Slide 29: Stifel Financial Corp. Results: Three Months Ended December 31, 2012
Stifel Three ($ Total Provision Net Earnings Weighted Diluted Ratios Compensation Non?comp Income (1) diluted 29 inResults revenues income thousands, non?interest Financial months Months to share. before $ per 63,301 net 0.63 average for for operating $revenues share: $income 39,954 ended Ended $the
Slide 30: Stifel Financial Corp. Results: Year Ended December 31, 2012
Stifel Year ($ Total Provision Net Earnings Weighted Diluted Ratios Compensation Non?comp Income (1) (2) 30 inResults revenues income ended Ended thousands, non?interest Financial tobefore $ per 62,937 net 2.20 average for for operating December $revenues share: $income 138,573 $the and income 1,612
Slide 31: Sources of Revenues
Sources Quarter % ($ Commissions Principal Capital Advisory Investment Asset Other Total Interest Net (1) respectively. 31 %Results inrevenues thousands) operating revenues mgt 19,597 raising revenue expense Ended oftransactions 26,643 and Revenues for banking The $8,379 $service the Year 426,434 49
Slide 32: Non-Interest Expenses
Non-Interest Three Quarter ($ Compensation Transitional Occupancy Communication Commissions Other Total (1) 32 inTransition thousands) compensation non-comp non-interest operating months Ended% and pay Expenses and pay ended and equipment expenses operating and 12/31/12 (1) ofexpense floor includes
Slide 33: Segment Results
Segment Quarter % ($ Net Operating Global Institutional $Other (1) respectively. (2) 33417,830 61,067 %Results inrevenues: thousands) %(2) (2,310) Wealth Ended Comparison $(29,705) contribution: $45,026 for 356,878 Group The (1,920)(20.3%) Management the Year 12/31/12 after-tax three year 35.6% (28,
Slide 34: Legacy Investments Results 2012
2012 ($ Legacy Total Provision Net Earnings Ratios Compensation Non-compensation Income ¹As 2Legacy 3Legacy 34 inof revenues income thousands, Legacy Investments non-interest December to2before revenues provision per net Investments for149,892 revenues: share Business 1,567,133 income and income exc
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