Piper Sandler Companies · NYSE:PIPR
Piper Sandler Companies — Piper Jaffray Companies — Merger or Acquisition (November 2015)
15 slides from Piper Sandler Companies's merger presentation, Nov 17, 2015
Slide 1: Cautionary Note Regarding Forward-Looking Information
Cautionary Note Regarding Forward-Looking Information 2 This presentation contains forward-looking statements. Statements that are not historical or current facts, including statements about beliefs and expectations, are forward-looking statements. These forward-looking statements cover, among other
Slide 2: Piper Jaffray + Simmons & Company International - Combination Highlights
Piper Jaffray + Simmons & Company International - Combination Highlights Combining Industry Leaders Driving to a $500 million IB Franchise 3 Market leadership built on trusted relationships & industry expertise Increases addressable market significantly with move into energy Diversifies Investment B
Slide 3: Fit With Firm's Strategic Priorities
Fit With Firm’sStrategic Priorities Favorable shift in our business mix Higher margin Advisory business Lower volatility Business Characteristics Differentiated value proposition Strong and defensible market position Sustainable/growing markets Firm Characteristics Strong cultural fit High quality l
Slide 4: Simmons - Leading advisor to the energy industry
Simmons & Company International - Leading advisor to the energy industry Research, Sales And Capital Markets Overview Of The Firm M&A Advisory Services Exclusively focused on the energy industry since 1974. Leader for M&A advisory services to the midstream / downstream, E&P and oilfield service sect
Slide 5: Simmons - Attractive Revenue Mix
Simmons & Company International (“Simmons”) - Attractive Revenue Mix Revenue Mix By Product 100% 90% 19% 32% 80% 37% 70% 60% 50% 40% 30% 20% 10% 0% FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 Advisory Fees Equity Capital Markets Sales and Trading Other Revenue (1) Simmons’ fiscal year en
Slide 6: Simmons - Market Leading Research
Simmons – Market Leading Research Simmons' securities business is a leader in Energy Research The Simmons research team has consistently achieved among the highest rankings in the industry 2014 Survey Of Institutional Research Rankings For Energy¹ #1 – Overall Energy #1 – Most Detailed Financial Ana
Slide 7: Transaction Terms
Transaction Terms (“Simmons”) Number of shares issued based on average price of last 10 trading days prior to Retention and stock consideration tied to employment with 3 year vesting Key employees signed retention and employment agreements Bill Herbert will become head of global energy research 8 Tr
Slide 8: Transaction - Financial Framework
Transaction – Financial Framework Incremental revenue related to Piper’s broader product expertise (1) Simmons and Company’s fiscal year ends June 30. 9 Revenue FY 2015 revenues of $95MM Revenues below historical levels due to challenging market conditions in the Energy sector Compensation Non-GAAP
Slide 9: Piper Jaffray - Building on Investment Banking Momentum
Piper Jaffray – Building on Investment Banking Momentum Over the past two years, Piper has invested significantly in the investment banking platform leading to meaningful growth – outpacing both our core and bulge bracket competitors and Acquisitions of the Year” 60% 50% 40% 30% 20% 10% 0% -10% 49%
Slide 10: Expanded Market Opportunities - Sectors & Products
Expanded Market Opportunities – Sectors & Products The addition of Simmons significantly expands our market opportunities Increases our target fee pool to 80% of the total ECM pool, and about 95% of the M&A pool Energy firms are consumers of all of our products including ECM, DCM and Private Placeme
Slide 11: Advisory Strength & Opportunity
Advisory Strength & Opportunity $74.4 $74.4 12 Key Synergy Drivers •Growing our advisory business has been a key strategic priority •The combination results in a potential $250 million advisory business (proforma) with Simmons’ revenue mix weighted towards advisory •Based on our experience with prio
Slide 12: Revenue Opportunities
Revenue Opportunities $70 2011 2012 2013 2014 2015 (YTD) $70 $60 $50 $30 2011 2012 2013 2014 2015 (YTD) (1) ECM Market Share: Source is Piper Jaffray ECM and Dealogic (2) DCM Energy Issuance: Source is S & P C a p i t al I Q L e v e r age d C o m m e nt ar y & D a t a 13 •PJC is a book runner on ove
Slide 13: Pro Forma Research Team - PJC and Simmons
Pro Forma Research Team - PJC and Simmons 42 Senior Analysts 52 Senior Analysts Financials Financials Clean Tech & Industrials Consumer Healthcare Technology & Services Strategy Clean Tech & Industrials 19% 21% 26% Consumer 22% 4% Healthcare 7% 17% Technology & Services 26% 14% Strategy 21% Energy 8
Slide 14: Piper Jaffray and Simmons
Piper Jaffray and Simmons & Company International Investor Presentation November 2015 15
Slide 15: Piper Jaffray
Piper Jaffray and Simmons & Company International Investor Presentation November 2015 z PiperJaffray.
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