Stifel Financial Corporation · NYSE:SF
Stifel Financial — Investor Presentation (March 2011)
42 slides from Stifel Financial's investor presentation, Mar 3, 2011
Slide 1: Stifel Financial Investor Presentation
Stifel Financial Investor Presentation March 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 ability to build Global Wealth Global Wealth Institutional Management Business Management (GWM) Group (IG) Grown from 86 branches and 621 Financial Advisors in 2004 to 285 branches and 1,935 Private Client Equity
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 CAGR: 33% CAGR: 33% $125 $1,400 CAGR: 46% $1,254 $120 $1,200 $1,091 $1,200 $100 $870 $1,000 $873 $900 $73 $76 $763 $80 $67 $800 $593 $600 $60 $600 $452 $40 $425 $40 $400 $247 $264
Slide 6: Years of Growth
Stifel Financial Overview 15 Years of Growth 1995 – 2010 Net Revenue ($MM) $1,600 2010 Represents 15 Consecutive Years of Record Net Revenue $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 $1
Slide 7: 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 8: Cumulative Price Appreciation
Stifel Financial Overview Cumulative Price Appreciation As of February 25, 2011 Since 12/31/10 Since 12/31/06 Since 12/31/01 Oppenheimer 23.62% Stifel Financial Corp. 175.72% Stifel Financial Corp. 1,273.52% Stifel Financial Corp. 16.23% Raymond James Financial 24.84% Raymond James Financial 139.70%
Slide 9: Consolidation and Industry Retrenchments Drive our Growth
Stifel Financial Overview Consolidation and Industry Retrenchments Drive our Growth Strategy 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 internationally Gro
Slide 10: Stifel's Track Record in Integrating Transactions
Stifel Financial Overview Stifel’s Track Record in Integrating Transactions: Low Risk Opportunity Builds the premier middle-market investment bank with the scale and diversification to become a top-tier player Complementary fit with minimal overlap in research and investment banking Fast track
Slide 11: II. Global Wealth Management
II. Global Wealth Management
Slide 12: Global Wealth Management
Global Wealth Management Provides Securities Brokerage Services and Stifel Bank Products Overview Grown from 600+ financial advisors in 2004 to over 1,900(1) financial advisors currently Retail investors are generally mid- to long-term buyers Goal of providing price stability and support to th
Slide 13: Opportunity Through Growth
Global Wealth Management Opportunity Through Growth GWM Broker Growth (1) GWM Branch Growth 300 285 272 2,500 250 2,000 1,885 1,935 196 200 1,500 148 1,315 150 1,163 111 1,000 92 100 86 735 621 644 500 50 0 0 2004 2005 2006 2007 2008 2009 2010 2004 20005 2006 2007 2008 2009 2010 GWM Account Growth G
Slide 14: Global Wealth Management – Stifel Bank & Trust
Global Wealth Management – Stifel Bank & Trust Low Risk Asset Growth Strategy & Opportunity Assets of $1.8 billion, an increase of 55% from $1.1 Maintain solid asset quality: billion as of December 31, 2009. Non-performing loans to gross loans of 0.38% Investment portfolio of $1.0 billion, a
Slide 15: III. Institutional Group
STIFEL FINANCIAL IIL. Institutional Group
Slide 16: Institutional Group
Institutional Group Overview Net Revenues ($MM)(1) $800 Provides securities brokerage, trading, research, CAGR: 13% underwriting and corporate advisory services $668 $626 SF has opportunistically expanded its talent pool $600 $587 $559 $174 $84 Victor Nesi, Co-Head of Institutional Group (June
Slide 17: Institutional Group – Research
Institutional Group – Research One of the Largest U.S. Equity Research Platforms U.S. Equity Research Coverage (1) Significant Coverage Across All Market Caps (2) Companies Under Coverage Rank Firm Overall Small Cap(2) 1 JPMorgan 1,101 191 Small Cap, 34% Large Cap, 30% 2 Stifel Nicolaus 1,052 342 3
Slide 18: Research Accolades
Institutional Group – Research Research Accolades #1 ranked research group of investment banks by awards in WSJ “Best On The Street” Survey 2010 Wall Street Journal poll with 14 analysts Rank Firm # of Awards Only firm ranked in the Top 12 each year for the last 7 years in the WSJ Best on the St
Slide 19: Powerful Institutional Equity Sales and Trading Platform
Institutional Group – Equity Sales and Trading Powerful Institutional Equity Sales and Trading Platform Distribution Network: Over 250 Professionals Globally Relationships with over 4,000 institutional accounts globally Active daily market maker in over 3,150 stocks Traded over 12.7 billion sh
Slide 20: Powerful Institutional Equity Sales and Trading Platform (continued)
Institutional Group – Equity Sales and Trading Powerful Institutional Equity Sales and Trading Platform (continued) Institutional Equity Sales U.S. Trading Volume: Middle-market Banks (1) Shares 130 person sales force, commission based Rank Firm (in millions) Experts in small and mid cap growth
Slide 21: Strong Fixed Income Capital Markets Capabilities
Institutional Group – Fixed Income Strong Fixed Income Capital Markets Capabilities Overview Platform & Products Comprehensive platform Focus on long-only Agency/Gov’t Securities money managers and Money Markets Approximately 50 traders averaging 14 years of income funds versus Mortgages
Slide 22: 2010: An Excellent Year in Public Finance Underwritings
Institutional Group – Public Finance 2010: An Excellent Year in Public Finance Underwritings Negotiated Underwritings 2010 Managed Underwriting Negotiated Rankings(1) 450 ($ in millions) # of $ Number of Deals 382 Rank Book Runner Issues Par Amount 1 Citi 374 $49,497.0 300 238 2 Bank of America Merr
Slide 23: Institutional Group – Investment Banking
Institutional Group – Investment Banking Full-Service, Industry-Focused Middle-Market Investment Bank Over 250 Investment Banking Professionals Operates under the Stifel Nicolaus Weisel name Investment Banking Product Areas 2010 Investment Banking Capital Markets M&A Advisory Revenues by Produ
Slide 24: Accomplished U.S. Equity Underwriting Franchise
Institutional Group – Investment Banking Accomplished U.S. Equity Underwriting Franchise – All Equity Transactions All Managed Equity Deals Since 2005 Bookrun Equity Deals Since 2005 ($ in billions) # of $ ($ in billions) # of % $ Rank Firm Deals Volume Rank Firm Deals Bookrun Volume 1 Bank of Ameri
Slide 25: Strong Momentum and Track Record as Bookrunner
Institutional Group – Investment Banking Strong Momentum and Track Record as Bookrunner 8,000 70 No. Deals 7,000 60 6,000 Deal Value 50 Deal Value ($M) 5,000 No. Deals 40 4,000 30 3,000 20 2,000 1,000 10 0 0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Filed/Mandated YTD Pipeline % of Deals Boo
Slide 26: Leadership in the Venture Capital Community
Institutional Group – Investment Banking Leadership in the Venture Capital Community Selected Venture Capital-Backed IPOs All Managed Venture Capital-Backed IPOs Since 2005 ($ in billions) # of $ Rank Firm Deals Volume 1 Stifel Nicolaus Weisel 85 $11.3 2 Morgan Stanley 69 $10.6 3 JPMorgan 67 $11.3 4
Slide 27: Strategic M&A Capabilities Driven by Deep Sector Knowledge
Institutional Group – Investment Banking Strategic M&A Capabilities Driven by Deep Sector Knowledge M&A Industry Group Focus # Value Industry Groups Sectors Transactions ($ millions) Aerospace, Defense & Gov't Services Aerospace & Defense, Specialty Defense & Homeland Security, Government Services 4
Slide 28: IV. Fourth Quarter and Full-Year 2010 Financial Results
IV. Fourth Quarter and Full-Year 2010 Financial Results
Slide 29: Chairman's Comments
Chairman’s Comments “We are very pleased to report our 15th consecutive year of record net revenues and equally pleased with the success of our merger with Thomas Weisel Partners (TWPG). Our record quarterly revenues and record quarterly investment banking revenues demonstrate the power of the franc
Slide 30: Stifel Financial Corp. Results
Stifel Financial Corp. Results Three months ended December 31, 2010 Three Months Ended December 31, 2010 Quarter Quarter Ended Merger- Ended 9/30/10 Related 12/31/09 % (Non- % (1) (2) (2) ($ in thousands, except per share amounts) GAAP Charges Non-GAAP (GAAP) Change GAAP) Change Net revenues $ 401,5
Slide 31: Sources of Revenues
Sources of Revenues Quarter Ended Year Ended % % ($ in thousands) 12/31/10 12/31/09 Change 9/30/10 % Change 12/31/10 12/31/09 Change Revenues Principal transactions $ 89,996 $ 116,410 (22.7%) $ 123,194 (26.9%) $ 453,533 $ 458,188 (1.0%) Commissions 139,605 99,285 40.6% 96,986 43.9% 445,260 345,520 2
Slide 32: Principal Transactions Revenues
Principal Transactions Revenues Quarter Ended Year Ended % % % ($ in thousands) 12/31/10 12/31/09 Change 9/30/10 Change 12/31/10 12/31/09 Change Taxable debt $ 46,924 $ 66,210 (29.1%) $ 60,208 (22.1%) $ 231,930 $ 292,400 (20.7%) Municipal debt 18,520 16,102 15.0% 20,091 (7.8%) 75,484 65,962 14.4% Eq
Slide 33: Investment Banking Revenues
Investment Banking Revenues Quarter Ended Year Ended % % % % ($ in thousands) 12/31/10 12/31/09 Change 9/30/10 Change 12/31/10 12/31/09 Change 12/31/08 Change Capital raising $ 50,404 $ 34,498 46.1% $ 28,593 76.3% $ 135,898 $ 76,563 77.5% $ 45,205 69.4% Advisory 40,571 16,047 152.8% 23,063 75.9% 82,
Slide 34: TWPG Merger-Related Expenses
TWPG Merger-Related Expenses Quarter Ended 6/30/10 9/30/10 12/31/10 3/31/11 ($ in thousands) Estimate Actual Estimate Actual Estimate Actual Estimate Operating expenses: Compensation and benefits $ 3,100 $ 3,100 $ 177,050 $ 183,176 (1) $ 700 $ (242) - Non-comp operating expenses 1,900 1,900 12,800 8
Slide 35: Stifel Financial Corp. Results
Stifel Financial Corp. Results Year ended December 31, 2010 Year Ended December 31, 2010 Merger- Related Year Ended % (1) (2) ($ in thousands, except per share amounts) GAAP Charges Non-GAAP 12/31/09 Change Net revenues $ 1,382,026 $ 2,126 $ 1,384,152 $ 1,090,636 26.9% Compensation and benefits 1,05
Slide 36: Global Wealth Management
Global Wealth Management Quarter Ended Year Ended ($ in thousands) 12/31/10 12/31/09 % Change 9/30/10 % Change 12/31/10 12/31/09 % Change Commi s s ions $ 92,558 $ 75,584 22.5% $ 69,875 32.5% $ 321,541 $ 234,052 37.4% Pri nci pa l tra ns a cti ons 58,520 54,136 8.1% 62,785 (6.8%) 239,851 194,384 23.
Slide 37: Stifel Bank & Trust
Stifel Bank & Trust An Operating Unit of GWM Quarter Ended Year Ended ($ in thousands) 12/31/10 12/31/09 % Change 9/30/10 % Change 12/31/10 12/31/09 % Change Net revenues: Interest 9,287 7,888 17.7% 9,601 (3.3%) 35,146 20,283 73.3% Other income 3,553 1,828 94.4% 1,924 84.7% 8,652 4,736 82.7% Total r
Slide 38: Institutional Group Results
Institutional Group Results Quarter Ended Year Ended ($ in thousands) 12/31/10 12/31/09 % Change 9/30/10 % Change 12/31/10 12/31/09 % Change Princi pa l tra nsa ctions $ 35,564 $ 62,275 (42.9%) $ 60,408 (41.1%) $ 217,770 $ 263,804 (17.5%) Commi ss i ons 47,047 23,701 98.5% 27,111 73.5% 123,719 111,4
Slide 39: Statement of Financial Condition
Statement of Financial Condition As of December 31, 2010 Total Assets ($ in millions) Total Capitalization ($ in millions) $5,000 $1,500 $1,337 $4,213 $83 $4,000 $1,200 $3,167 $956 $3,000 $900 $83 $676 $2,000 $600 $520 $83 $1,254 $1,499 $1,558 $95 $873 $1,085 $290 $1,000 $842 $300 $225 $593 $166 $70
Slide 40: Other Financial Data
Other Financial Data As of As of 12/31/10 12/31/09 % Change 9/30/10 % Change Total assets (000s): Stifel Nicolaus & Stifel Financial $ 2,439,395 $ 2,025,348 20.4% $ 2,614,225 (6.7%) Stifel Bank 1,773,720 1,142,008 55.3% 1,516,489 17.0% Total assets $ 4,213,115 $ 3,167,356 33.0% $ 4,130,714 2.0% Tota
Slide 41: V. Conclusion
STIFEL FINANCIAL
Slide 42: Looking Forward
Looking Forward We See Opportunity Stifel is well-positioned in the current market to take advantage of opportunities: Dislocation creating opportunity for market share gains Ability to add talented professionals Expand Fixed Income/High Yield Evolving regulatory framework (Stifel is already
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