Gleacher & — Broadpoint Securities Group — Investor Presentation (March 2009)
15 slides from Gleacher &'s investor presentation, Mar 3, 2009
Slide 1: Broadpoint.Gleacher: The Next Generation Investment Bank
Broadpoint.Gleacher The Next Generation Investment Bank March 3, 2009
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation contains “forward-looking statements.” These statements are not historical facts but instead represent the Company's belief regarding future events, many of which, by their nature, are inherently uncertain and outside of the Company's control. The Company
Slide 3: Business Profile
Business Profile Progress to Date Broadpoint.Gleacher
Slide 4: Business Objectives
Business Objectives Industry leading investment bank providing value-added, unconflicted advice and execution to major corporations and investors Target Revenue Target Pre-Tax Profit Target Production / Person Target Market Capitalization Note: The foregoing “Business Objectives” are goals and objec
Slide 5: Market Size
Market Size Overall market is approximately $150 billion annually with significant market share available Investment Banking Fees (~$50 B)? Secondary Trading Commissions (~$100 B) Equities” $12.5 billion Equity Capital i neti Agencies” Advisory $8.2 $12.8 billion Fees o $21 billion Mortgages' Treasu
Slide 6: A Level Playing Field
A Level Playing Field Credit crisis and resulting bulge bracket issues have reduced the balance sheet as a competitive advantage, leaving strong people and ideas as the key differentiator Capital / Balance Sheet People, Ideas and Creativity Broadpoint.Gleacher
Slide 7: Competitive Landscape: Bulge Bracket
Competitive Landscape: Bulge Bracket = Dramatic reduction in major full service competitors = Government imposed compensation limits will cause best talent to seek new platforms Many major firms are disadvantaged by losses and government restrictions Government 20Fims DP orims Seisunee Bear Steams H
Slide 8: Competitive Landscape: Institutional Boutiques
Competitive Landscape: Institutional Boutiques « Few boutiques offer both advisory and public equity and debt capital raising Restructuring & Public Capital EVERCORE PARTNERS Yes Yes No Greenhill Yes Yes No LAZARD Yes Yes No MOELIS& COMPANY Yes Yes No Jefferies Yes Yes Yes PiperJatfray. Yes No Yes e
Slide 9: Business Profile
Business Profile P_rrocucts cients = Distribution Driven. Institutional Investors | |= Customer aligned to provide = Variable compensation Secondary Sales & Trading = Mutual Funds unconflicted advice to = Equity = Hedge Funds companies and investors = Variable High Yield Debt * Investment Advisors n
Slide 10: Progress to Date: Key Milestones
Progress to Date Sa 212009 Closed $50 MM Increased Matlinpatterson Capital to Equity Broadpoint Investment DESCAP Granted Equity Announced ‘Ownership To Administrative 24 Employee Restructuring & Partners. Outsourcing Plan Renamed and Re-branded the Firm, Broadpoint Securities Group, Inc. Completed
Slide 11: Increased client facing headcount while reducing support staff
Progress to Date = Broadpoint has significantly increased total and client facing headcount while reducing support staff 9130/07 1131109 Count % Adds Terms Count % Client Facing 86 51% 187 (60) 183 74% Support 81 49% 86 (102) 65 26% Total 167 100% 243 (162) 248 100% Broadpoint.Gleacher
Slide 12: Annualized Revenues and Revenue / Employee
Progress to Date Annualized Revenues ($MM) Revenue / Employee ($000’s) $250 $900 $200 $780 ‘$150 $600 ‘$450 00 $200 $50 $180 30 so 0307 2408 0307 408 Capital & Long Term Funding ($MM) @ Market Capitalization ($MM) © $150 $250 $125 $200 $100 _ 878 ‘$00 $100 925 $50 so so Pre Recap 408 Pre Recap 24°08
Slide 13: Broadpoint productivity per employee ranks second amongst public peers
Progress to Date = Broadpoint productivity per employee ranks second amongst public peers Sintnousands Broadpoint Net Revenue / Employee M&A Boutiques Evercore Greenhill Lazard Average Mid-Cap Institutional Focused ‘Cowen $as7 FBR Capital Markets 400 Jefferies Group 507 NP Group 361 Piper Jattray Co
Slide 14: Market cap ranking has improved amongst independent investment bank peers
Progress to Date = Ranking on market cap basis has improved dramatically amongst independent investment bank peers = Best performing stock amongst group over period = One of only six firms to generate positive net income in Q4 2008 Rank 10 " 2 2B “ 6 6 7 8 98007 rea108 Market Market Company fap Comp
Slide 15: Broadpoint.Gleacher
Broadpoint.Gleacher Broadpoint.Gleacher
Broadpoint Securities Group — Investor Presentation (March 2009) on 6ix