Stifel Financial Corporation · NYSE:SF
Stifel Financial — Investor Presentation (November 2010)
42 slides from Stifel Financial's investor presentation, Nov 17, 2010
Slide 1: Stifel Financial Investor Presentation
Stifel Financial Investor Presentation November 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 279 branches and 1,920 Financial Advisors in 2010. + Proven Integrator of Acquisitions = Middle-market focus + Research driven, industr
Slide 5: A Growth Story
STIFEL Stifel Financial Overview FINANCIAL A Growth Story... ‘Net Revenues ($MM) ©. Core Net Income ($MM) ®) Total Equity ($MM) #2) CAGR:56% fms sao) CAGR:AI% sun - m0 “ ra so “ so rs we! cod o 2 i ue see aoha =p Total Client Assets ($BN) Financial Advisors © Book Value Per Share am, CAGR:26% um) CA
Slide 6: Years of Growth: Record Net Revenue
STIFEL Stifel Financial Overview FINANCIAL 15 Years of Growth 2010is expected to be the 15 consecutive year of Record Net Revenue 1.200 CAGR since 1995: 20% CAGR since 2005: 38% $1,000 | TT 11 | so 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006-2007 2008 «2009-2010 Annizd 2o10netaewenue
Slide 7: Peer Analysis Shows Continued Strength
STIFEL Stifel Financial Overview FINANCIAL Stiel’s Peer Analysis Shows Continued Strength Peer Analy 1000 to Present yaad é i 2000 20120 AM KH HT IO. — Stifel Financial Corp (232% CAGR) — Peer Group (2.3% CAGR SAP 500(.08% CAGR) Peiueratof 11/11/10, Der Group conics of ollowing ome: Oppenbeiney Hold
Slide 8: Cumulative Price Appreciation
Stifel Financial Overview STIFEL FINANCIAL Cumulative Price Appreciation As of Novernber 11, 2010 Stil Financial Corp. Trane Evercore Partners 938% Greenhill & Co. 41.36% Greenhill & Co. 19.42% Goldman Sachs Group 31.32% Jefferies Group 10.24% Oppenheimer 29.21% KEW 0.04% Raymond James Financial 22.
Slide 9: Consolidation and Industry Retrenchments Drive our Growth
STIFEL Stifel Financial Overview FINANCIAL Consolidation and Industry Retrenchments Drive our Growth Stifel 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 int
Slide 10: Track Record in Integrating Transactions
STIFEL Stifel Financial Overview FINANCIAL Stiel’s Track Record in Integrating Transactions, Low Risk Opportunity = Builds the premier middle-market investment bank with the seale and diversification to % become a top-tier player oC Thomas Weisel Partners a Complementary fit with minimal overlap in
Slide 11: II. Global Wealth Management
STIFEL FINANCIAL II. Global Wealth Management
Slide 12: Global Wealth Management
STIFEL Global Wealth Management FINANCIAL Provides Securities Probe ge Services and Stifel Bank Products Chent, Stifel has grown from 600+ financial advisors in Company Headquarten RRs? Awe” 2005 to over 1,900 financial advisors‘) — Citigroup/Smith Barney ‘New York, NY 19,296 ‘$1,034 2 WellsFargo Se
Slide 13: Global Wealth Management: Broker, Account and Branch Growth
Global Wealth Management STIFEL FINANCIAL = 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 GWM Broker Growth © 250 45 1
Slide 14: Stifel Bank & Trust Overview
Global Wealth Management STIFEL FINANCIAL Stiel Bank & Trust Overview Low Risk Asset Growth Assets of $1.50 billion, up 34% from the prior year-end balance of $1.14 billion Investment portfolio of $880 million, up 44% from the prior year-end balance of $579 million Loan portfolio of $479 million, up
Slide 15: III. Institutional Group
STIFEL FINANCIAL III. Institutional Group
Slide 16: Institutional Group
STIFEL Institutional Group FINANCIAL Provides securities brokerage, trading, research services, as well as underwriting and corporate advisory heater SF has opportunistically expanded talent pool = Victor Nesi, Co-Head of Institutional Group (June 2009) = WilliamHeinzerling, Head of Fixed Income Cap
Slide 17: One of the Largest US Equity Research Platforms
STIFEL Institutional Group FINANCIAL One of the Largest US. Equity Research Platforms #1.S. Equity Research Coverage Significant Coverage Across All Market Caps®) ‘Companies Under Coverage Rank Fim ‘Overall _ Small Cap ‘Small Cap, 38% Large Cap, 26% eEETS a (eee 2 8 sescmee [cos 2 2 a nn an “Bold in
Slide 18: Research Accolades
Institutional Group STIFEL FINANCIAL Research Accolades 3 3 [P. Morgan Chase 3 UBS 6 BofA Memill Lynch 6 Raymond James 6 Wells Fargo 9 Barclays Capital 9 Citigroup 9 Keefe Bruyette & Woods 9 KeyBanc Capital Markets 9 Oppenheimer & Co. 9 Standard & Poor's 15 BMO Capital Markets 15 CL Kin & Associates
Slide 19: Powerful 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: Strong Fixed Income Capital Markets Capabilities
Institutional Group STIFEL FINANCIAL Strong Fixed Income Capital Markets Capabilities = Comprehensive platform = Focus on long-only . + Approximately 50 traders averaging 14 years of money managers and venience income funds versus . +» Annual client trade volume approaching $200 hedge funds ree m Co
Slide 21: Investment Banking Overview
Institutional Group STIFEL FINANCIAL Investment Banking Overview = Full-Service, Industry-Focused Middle-Market Investment Bank m@ Over 250 Investment Banking Professionals = Operates under the Stifel Nicolaus Weisel name. Investment Banking Product Areas m= Equity & Convertible + Initial public off
Slide 22: Accomplished US Equity Underwriting Franchise
STIFEL Institutional Group FINANCIAL Accomplished US. Equity Underwriting Franchise - All Equity Transactions All Managed Equity Deals Since 2005 Booksun Equity Deals Since 2005 ( in WNions) tof 8 (6 in Blions) tof 8 Rank Fim Deal _Volune Rank Fin Deal _Volume 1 -Bankof America MendllLynch 1,087 ss6
Slide 23: Leadership in the Venture Capital Community
STIFEL Institutional Group FINANCIAL Leadership in the Venture Capital Community Selected Venture Capital-Backed IPOs Venture-Backed IPOs 2005 - 10/31/2010 $96,290,000 ‘$75,000,000 '$118,000000 $97,520,000 ($ sxe biltionss) fof $ ee es aoe wane inhi) | A 2 JPMorgan 62 #105, rit atic fing nial ube Of
Slide 24: Strong Momentum and Track Record as Bookrunner
STIFEL Institutional Group FINANCIAL Strong Momentum and Track Record as Bookrunner 6000 n 5.000 cy E soe o # o 3 5000 4 5 wo g % 2,000 3 20 1,000 io 0 0 ome ns mts 00200 zon 2a Hiled/Mandted mm No.Desle ~—Deal Value ane %of Deals Booknun 17% 28% «19% =H 26K 16K 0K 80a Sena ‘sae ‘season s7550%8 0750
Slide 25: Recent Bookrun SaaS IPOs
STIFEL Institutional Group FINANCIAL Recent Bookrun SaaS IPOs $65,550,000 $53,123,733 = 534,376 Quest Ryconvio SPS, commerce o Initial Public Offering Initial Public Offering Initial Public Offering Sole Bookrunning JointBookrunning Sole Bookrunning Manager Manager Manager September 2010 ‘April 2010
Slide 26: Completed Capital Markets Offerings Since 7/1/10
Institutional Group STIFEL FINANCIAL Completed 72 Capital Markets Offerings Since 7/1/10, Including 15 IPOs sao sama sano proreeny omnane wise ara Benz Q <2 peuencutes) |BuackRock) |XX Inphi} | pay MQ | |sttestrem LeCroy —- |contdertly Marketed] HERES “tae Fetowen Oia Follomon Ofeing {ral Pubic Offe
Slide 27: Strategic M&A Capabilities Driven by Deep Sector Knowledge
STIFEL Institutional Group FINANCIAL Strategic M&A Capabilities Driven by Deep Sector Knowledge M&A Industry Group Focus + Vatue ee fee Taawactions (bilicns) ‘Aerospace, Defense eGov Serves ‘Aerospace &eDefense, Specialty Defence &¢Hemaland Security, 36 28 Goverment Services Gleaniech Renewables, En
Slide 28: IV. Third Quarter 2010 Financial Results
STIFEL FINANCIAL IV. Third Quarter 2010 Financial Results
Slide 29: Chairmen's Comments
STIFEL Chairmen’s Comments FINANCIAL “Our record net revenues and operating results demonstrate the diversity of our platform and our ability to navigate through changing economic conditions. We have made significant investments in our associates and infrastructure, the latest being the completion o
Slide 30: Highlights: Three Months Ended September 30, 2010
STIFEL Highlights: Three Months Ended September 30, 2010 FINANCIAL Record net revenues of $340.4 million, an 18% increase over the 3! quarter of 2009 and a 4% increase over the 2"4 quarter of 2010. "The Global Wealth Management (GWM) segment posted record net revenues of $207.5 million, a 31% increa
Slide 31: Stifel Financial Corp. Results: Three Months Ended September 30, 2010
STIFEL Stifel Financial Corp. Results FINANCIAL Three months ended September 30, 2010 ‘Three Months Ended September 30, 2010) Merger- Retated {5 in thousands, except per share amounts} GAAP Charges ™ Met revenues S$ amas S$ Compensation and benefits 3585 (183,176) Non-comp operating expenses 37,008
Slide 32: Estimated TWPG Merger-Related Expenses
STIFEL Estimated TWPG Merger-Related Expenses FINANCIAL Quarter Ended 6/30/10 9/30/10 azjsifio EET 6 tathoumab) Pon Actual Plan Actual Plan Plan Operating expenses: ‘Compensation and benefits $ 3,100 $ 3,100 $ 177,050 $ 183,176 1 $ = 700 - Non-comp opera ting expenses 1,900 1,900 12,800 8,495, 10,00
Slide 33: Highlights: Nine Months Ended September 30, 2010
Highlight STIFEL : Nine Months Ended September 30, 2010 FINANCIAL Record net revenues of $980.4 million, a 27% increase over the comparable period in 2009. = The GWM segment posted record net revenues of $6068 million, a 48% increase over the comparable periodin 2009. = The IG segment posted record
Slide 34: Stifel Financial Corp. Results: Nine Months Ended September 30, 2010
STIFEL Stifel Financial Corp. Results FINANCIAL Nine months ended September 30, 2010 Nine Months Ended September 30, 2010 Nine Merger- Months Rebted Ended % (5 in thousands, except per share amounts} GAAP Gharges Non-GAAP 9/30/2009 Change"? Net revenues $9947 5 939 $ 981366 $771,169 273% Compensatio
Slide 35: Sources of Revenues
STIFEL Sources of Revenues FINANCIAL Quater Ended Mine Months Ended * * 63 i thousands) oyanfin gysojoo 6 Chamge gyag/ig0. | Change sono sy20/09 Chamge: Bevemes Principal transactions $ 1718 $ 123,238 a0% $ 122,923 am |$ 3easa7 $ 34777 Ga Commissions 96,986 90,905 sx 1364 8 (64% eS 2452360 AIK Asset
Slide 36: Global Wealth Management
STIFEL Global Wealth Management FINANCIAL Quarter Ended Nine Months Ended {Sin thousands) 9/30/10 gysojop | Change gyno «6% Change | ofsnfin gyzojo9 Change Net revenues $ 27am $1589 =X $199,940 38% |$ GDS $ 409,911 480% ‘Compensation and benefits 119,100 96,711 Bm 123,609 Bex | 36707 753,169 1% Non-
Slide 37: Stifel Bank & Trust
STIFEL Stifel Bank & Trust FINANCIAL Quarter Ended ine Months Ended (Sin thousands) 9/30/10 9/3009 %Change 6/30/10 "% Change | 9/30/10 9/30/09 "%Change Net revenues: Interest p01 4962 935% 8171 175% 25859 12395 108.6% Other income 1.924 865 122% 1062 817% 5999 3284 553% Total revenues 11.525 5827 97
Slide 38: Institutional Group Results
STIFEL FINANCIAL Quarter Ended ine Months Ended {$a thowsancbs} epof0 = Age = Change Gyz0fin «Creme | sfzofin §— 9/0/09 = Change Sales and trading: Equity $ 43711 § 39,733 10.0% §$ 44,099 foo | $ 126462 § 114,598 104% Fixed income 43,508 58196 a7 44263 __0m |_ 132416 __174698 __ (242%) 87519 97929 (
Slide 39: Volume Comparison
STIFEL Volume Comparison FINANCIAL Stifel Gamed Market Share in 3Q 10 Industry Volumes Declined 27% in 3Q 10 vs. 2Q 10 Stifel Volumes Increased 4% in 3Q 10 vs. 2Q 10 e7%) 4% soe ay as _—_— 31362 131 3000 25,891 23912 0 va 7 20,000 128 10,500 ne ot 10 1918 2918 3Q0 1918 200 3Q18 US Market Daily "= SE
Slide 40: FINANCIAL
STIFEL FINANCIAL
Slide 41: Looking Forward: We See Opportunity
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
Stifel Financial — Investor Presentation (November 2010) on 6ix