Stifel Financial Corporation · NYSE:SF
Stifel Financial — Investor Presentation (November 2009)
31 slides from Stifel Financial's investor presentation, Nov 4, 2009
Slide 1: Stifel Financial Corp. Investor Presentation November 2009
Stifel Financial Corp. Investor Presentation November, 2009
Slide 2: Forward-Looking Statements
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 and future business
Slide 3: Stifel Today
Stifel Toda LTM Net Revenues: $931mm Global Wealth Management Capital Markets (cw) Investment Capital Markets Other > 1,900 © Financial Advisors in Debt and Equity me 48% 1% 273 offices thraughout the Markets Banking and United States Public Finance > Approximately 612 > 161 investment > Difere theo
Slide 4: We See Opportunity
We See Opportunity Stifel is well-positioned in the current market: Dislocation creating opportunity for market share gains Ability to add talented professionals Evolving regulatory framework (Stifel is already regulated by the Fed) Strong balance sheet
Slide 5: Why We Are Different
Why We Are Different Successful Creator of Shareholder Value Core Diluted EPS NN. svercacnotzr A =. Middle Market Focus Diverse Product Offering tinaon Net Revenues Research Coverage by Market Cap YTD 6/30/09 Net Revenues sa2s0 $1000 50 Successful Acqui LEGG MASON > = = <$500mm mg >2n Fail | /.. EGE
Slide 6: Stifel is a Growth Story
oben Stifel is a Growth Story 31,800 973 $1,000 3. $795 34200 964 ee 200 348 9500 9600 $30 sy 928 200 {tee $217 $247 $264 - Pa so so 0 ‘BMRA ON NS D8, 28S 208 AE 2002 2003 2004 200 2006 2007 2008 1H 1H 2002 2003 2004 2005 2006 2007 2008 e209 onl ‘0309 Total Client Assets ($BN) @ Financial Advisors @
Slide 7: Stifel's Investment in Expanding Client Capabilities
Stifel's Investment in Expanding Client Capabilities
Slide 8: Growth — The Numbers
Growth — “The Numbers” Total % Change Asof ~ Since YTD Net Business Units 2004 9130092004 YTD Additions Global Wealth Management Financial Advisors 621 1,900 206% 44% 583 Branch Support 284 1,011 256% 62% 388 Offices 86 273 217% 32% 66 Stifel Bank & Trust Support Associates 0 4 na 21% B Capital Mark
Slide 9: Correlation between Associates and Revenue Growth
Correlation between Associates and Revenue Growth
Slide 10: Significant Employee Ownership
Significant Employee Ownership
Slide 11: Recent Equity Offerings
Recent Equity Offerings Type Date Shared Issued Price Net Proceeds Secondary September-08 1,495,000 $45.00 $64.4 ATM June-09 1,000,000 $45.00 $43.9 Subtotal $108.3 Secondary September-09 1,725,000 $56.00 $91.8 Total $200.1
Slide 12: Execution of Growth Strategy
Execution of Growth Strategy The September 2008 and June 2009 common offerings netted proceeds of $108 million Since September 1, 2008, Stifel has invested approximately $172 million of capital through both organic growth and acquisitions
Slide 13: Overall Growth Strategy
Overall Growth Strategy Expand private client footprint in the U.S. Expand institutional equity business both domestically and internationally Grow investment banking Focus on asset generation with banking operations Enhance and accelerate Stifel Bank and Trust strategy Approach acquisition opportun
Slide 14: Global Wealth Management Overview
Global Wealth Management Overview Provides securities brokerage services and Stifel Bank products 1,900 Financial Advisors in 273 branch offices in 41 states and the District of Columbia at October 16, 2009* Proven organic growth and acquirer of private client business Organically grown to hire 320
Slide 15: Global Wealth Management Growth
Global Wealth Management Growth Since the acquisition of Butler Wick, 717 Financial Advisors have joined Stifel, 397 through both the Butler Wick and UBS acquisitions* Stifel expects to see opportunities resulting from continued dislocation from competitors mergers * Represents total after UBS acqui
Slide 16: ACAT Fee Reimbursement
ACAT Fee Reimbursement Automated Customer Account Transfer System
Slide 17: Same Store Sales Commission
Same Store Sales Commission ($ millions) FAs Hired Prior to January 2008
Slide 18: Same Store Sales Commission
Same Store Sales Commission ($ millions) FAs Hired Prior to January 2008
Slide 19: Same Store Sales Commission
Same Store Sales Commission ($ millions) FAs Hired Prior to January 2008
Slide 20: Potential GWM Commission
Potential GWM Commission ($ millions)
Slide 21: Stifel Bank Overview
Stifel Bank Overview April 2007 - Acquired First Service Financial Company and its wholly-owned subsidiary FirstService Bank, a St. Louis-based Missouri commercial bank Growth since acquisition Assets of $1 billion, up over 600% from $130 million at acquisition announcement Deposits of $1 billion, u
Slide 22: Capital Markets Overview
Capital Markets Overview Provides securities brokerage, trading, research services, as well as underwriting and corporate advisory 738 associates located in 21 offices in the U.S. Opportunistically expanding talent pool Victor Nesi, Director of Investment Banking and Co-Director of Capital Markets (
Slide 23: Capital Markets Market Opportunity
Capital Markets Market Opportunity $150 billion annually with dislocation and deleveraging resulting in significant share opportunity Large Available Market ~$50 billion annually in Investment Banking Fees $100 billion annually in Secondary Commissions Competitive Opportunity Strong opportunity to g
Slide 24: Run Rate Annualized
Run Rate Annualized Estimated Revenue Global Wealth Management $700 - $800 Capital Markets $450 - $550 Total $1,150 - $1,350 $1,250 $1,250 $1,000 sen, SS $750 $743 $500 $435 $250 | $183 $211 $243 $259 2002 2003 2004 «2008 © «2006 «20072008 ©=«@209 Run Annid Rate Annid
Slide 25: Pre-Tax Margins
Pre-Tax Margins $1,200 20% $1,000 4 45% ve 14% + 15% $800 4 =a $600 + + 10% $400 4 $763 + 5% $200 4 $0 t t 0% 2006 2007 2008 6MO9 Annid gag Net Revenues (millions) -e—- Core Pre-Tax Margins ‘2006 thaough 2008 reflects CORE samnings. 2009 reflects GAAP.
Slide 26: Normalized Pro Forma
Normalized Pro Forma Six Months ended June 30, 2009 Pre-Tax Net Operating % of (8 in thousands) Revenues Contributions _Net Rev As Reported $ 481,486 | $ 48,264 10% Pro Forma Adjustments | Private Client Group (PCG) PCG established business 22,207 9,929 PCG new business (29,445) 6,110 Bank excess li
Slide 27: Stifel Balance Sheet
Stifel Balance Sheet Total Assets ($ millions) 2003 2004 | 20052006 | 2007 2008 Q2 2009 Leverage Ratio® Sx 37K 2m2 2003 204 2s S07 ams Q2 2D $1,000 $750 $500 $250 $25.00 $20.00 $15.0 siog0 $5.00 Total Capitalization ($ millions) $877 2uo2 2003 2004 2005-2006 2007 2008 22009 Book Value Per Share _s21
Slide 28: Capital Structure
Capital Structure (8 in thousands) Total Assets “? $2,379,792 Stockholders’ Equity ©’ $794,502 Debentures to: Stifel Financial Capital Trust Il- LIBOR plus 1.70% (fixed at 6.38% until 9/30/10), due 9/30/35 $ 35,000 Stifel Financial Capital Trust II - LIBOR plus 1.85% (fixed at 6.79% until 6/6/12), d
Slide 29: Level Assets
Level 3 Assets Carrying Value Change (8 in thousands) 9/30/09 12/31/08 Auction Rate Securities $ 55,786 $ 18,509 $ 37,277 Stifel Bank & Trust Investments 11,700 10,423 1,277 Trading Securities 767 4,161 (3,394) Other Investments 5,093 5,169 (76) $_73,346 $ 38,262 $ 35,084 Percentage of Equity 9% 7%
Slide 30: Why Buy Stifel Financial (SF)
Why Buy Stifel Financial (SF) Diversified well balanced business Growth story Industry dislocation provides significant growth opportunities Scalable platform Disciplined acquirer and skilled integrator Proven steward of investor capital
Slide 31: Q&A - Questions and Answers
Q&A - Questions and Answers
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