Stifel Financial Corporation · NYSE:SF

Stifel Financial — KBW Conference 2010

42 slides from Stifel Financial's conference presentation, December 2010

1. Slide 1: Stifel Financial Investor Presentation

   Stifel Financial Investor Presentation December 2010

2. 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

3. Slide 3: I. Stifel Financial Overview

   I. Stifel Financial Overview

4. 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) z Grown from 86 branches and 621 Financial Advisors in 2004 to 279 branches and 1,920 ƒ Private Client ƒ Equity

5. Slide 5: A Growth Story

   Stifel Financial Overview A Growth Story… Net Revenues ($MM) (1) Core Net Income ($MM) (2) Total Equity ($MM) $1,500 $112 $103 $1,213 CAGR: 27% $1,308 CAGR: 56% $1,250 CAGR: 41% $96 $1,200 $1,091 $76 $1,000 $80 $73 $873 $870 $67 $900 $763 $64 $750 $593 $600 $48 $40 $452 $500 $425 $32 $23 $247 $264 $

6. Slide 6: Years of Growth

   Stifel Financial Overview 15 Years of Growth 1995 – 2010E Net Revenue ($MM) $1,400 $1,308 2010 is expected to be the 15th consecutive year of Record Net Revenue $1,200 CAGR since 1995: 20% $1,091 CAGR since 2005: 38% $1,000 $870 $800 $763 $600 $452 $400 $247 $264 $217 $178 $177 $188 $200 $141 $110 $

7. Slide 7: Peer Analysis Shows Continued Strength

   Stifel Financial Overview Stifel’s Peer Analysis Shows Continued Strength Peer Analysis – 2000 to Present 1000% 861% 800% 600% 400% 200% 130% 0% -8% 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 -200% Stifel Financial Corp (23.2% CAGR) Peer Group (2.3% CAGR) S&P 500 (-0.8% CAGR) Prices as o

8. Slide 8: Cumulative Price Appreciation

   Stifel Financial Overview Cumulative Price Appreciation As of November 11, 2010 Since 12/31/07 – 3 Years Since 12/31/05 – 5 Years Since 12/31/00 – 10 Years Stifel Financial Corp. 55.93% Stifel Financial Corp. 118.08% Stifel Financial Corp. 860.87% Evercore Partners 49.88% Greenhill & Co. 41.36% Jeff

9. Slide 9: Consolidation and Industry Retrenchments Drive our Growth

   Stifel Financial Overview Consolidation and Industry Retrenchments Drive our Growth Stifel Strategy ƒ Continue to build client facing agency-only businesses in financial services ƒ Expand private client footprint in the U.S. ƒ Expand institutional equity business both domestically and internationall

10. Slide 10: 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

11. Slide 11: II. Global Wealth Management

    II. Global Wealth Management

12. Slide 12: Global Wealth Management: Securities Brokerage and Bank Products

    Global Wealth Management Provides Securities Brokerage Services and Stifel Bank Products Overview Strength of Stifel’s Brokerage Position Client „ Stifel has grown from 600+ financial advisors in Rank Company Headquarters RRs (2) Assets (3) 2005 to over 1,900 financial advisors(1) 1 Citigroup/Smith

13. Slide 13: Opportunity Through Growth

    Global Wealth Management Opportunity Through Growth GWM Broker Growth (1) GWM Branch Growth 300 2,500 279 272 250 2,000 1,885 1,920 196 200 1,500 1,315 148 1,163 150 111 1,000 100 86 92 735 621 644 500 50 0 0 December December December December December December September December December December

14. Slide 14: Stifel Bank & Trust Overview

    Global Wealth Management Stifel Bank & Trust Overview Low Risk Asset Growth Strategy & Opportunity ƒ Assets of $1.50 billion, up 34% from the prior year-end ƒ Maintain solid asset quality: balance of $1.14 billion ƒ Non-performing loans to gross loans of 0.30% ƒ Investment portfolio of $830 million,

15. Slide 15: III. Institutional Group

    STIFEL FINANCIAL III. Institutional Group

16. Slide 16: Institutional Group Overview

    Institutional Group Overview Net Revenues ($MM)(1) „ Provides securities brokerage, trading, research services, $800 as well as underwriting and corporate advisory CAGR: 14% $668 $639 „ SF has opportunistically expanded talent pool $587 $600 $559 $174 ƒ Victor Nesi, Co-Head of Institutional Group (J

17. Slide 17: One of the Largest U.S. Equity Research Platforms

    Institutional Group One of the Largest U.S. Equity Research Platforms #1 U.S. Equity Research Coverage(1) Significant Coverage Across All Market Caps (2) Companies Under Coverage Rank Firm Overall Small Cap 1 JP Morgan 1,056 204 Small Cap, 38% Large Cap, 26% 2 Stifel Nicolaus & Co. 1,025 374 3 BofA

18. Slide 18: Research Accolades

    Institutional Group Research Accolades #1 in WSJ “Best on the Street” Survey (1) Highlights „ #1 ranked research group of investment banks by awards in 2010 Rank Broker # of Awards Wall Street Journal poll with 14 analysts 1 Stifel 14 „ #2 U.S. Ranking for 2009 FT/StarMine World’s Top Analysts 2 Cre

19. Slide 19: Institutional Equity Sales and Trading Platform

    Institutional Group Powerful Institutional Equity Sales and Trading Platform Institutional Equity Sales U.S. Trading Volume: Middle Market Banks (1) „ 120 person sales force, commission based Rank Firm Shares in Millions „ Experts in small and mid cap growth and value 1 Jefferies 19,502 „ Team based

20. Slide 20: Fixed Income Capital Markets Capabilities

    Institutional Group Strong Fixed Income Capital Markets Capabilities Overview Platform & Products „ Comprehensive platform „ Focus on long-only „ Agency/Gov’t Securities zApproximately 50 traders averaging 14 years of money managers and „ Aircraft Finance & experience income funds versus Credit Solu

21. Slide 21: Investment Banking Overview

    Institutional Group Investment Banking Overview „ Full-Service, Industry-Focused Middle-Market Investment Bank „ Over 250 Investment Banking Professionals „ Operates under the Stifel Nicolaus Weisel name Investment Banking Product Areas YTD(1) Investment Banking Capital Markets M&A Advisory Revenues

22. Slide 22: U.S. Equity Underwriting Franchise

    Institutional Group 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 Volume 1 Bank of America Merrill Lynch 1,087 $667.2 1

23. Slide 23: Leadership in the Venture Capital Community

    Institutional Group Leadership in the Venture Capital Community Selected Venture Capital-Backed IPOs Venture-Backed IPOs 2005 – 10/31/2010 ($ in billions) # of $ Rank Firm Deals Volume 1 Stifel Nicolaus Weisel 81 $10.9 2 JPMorgan 62 $10.5 2 Morgan Stanley 62 $9.3 4 Bank of America Merrill Lynch 56 $

24. Slide 24: Strong Momentum and Track Record as Bookrunner

    Institutional Group Strong Momentum and Track Record as Bookrunner 6,000 70 5,000 60 Deal Value ($mm) 50 4,000 No. Deals 40 3,000 30 2,000 20 1,000 10 0 0 2002 2003 2004 2005 2006 2007 2008 2009 2010E Filed/Mandated No. Deals Deal Value Pipeline % of Deals Bookrun 17% 23% 19% 24% 17% 26% 16% 20% 30%

25. Slide 25: Recent Bookrun SaaS IPOs

    Institutional Group Recent Bookrun SaaS IPOs SciQuest Convio SPS Commerce Market Cap @ IPO (mm) $131 $147 $193 Offer to 1 Day 13% 14% 29% Offer to 1 Week 11% 10% 27% LTM/NTM Revenue $37.7 /$42.1 $63.1 /$68.0 $39.5 /$45.1 LTM/NTM EBITDA $3.2 / $3.2 $6.6 /$7.3 $9.6 /$7.9 EV/Revenue @ Pricing 2.7x / 2.

26. Slide 26: Completed Capital Markets Offerings Since 7/1/10

    Institutional Group Completed 72 Capital Markets Offerings Since 7/1/10, Including 15 IPOs Note: Selected Capital Markets Transactions. Completed offerings as of 11/12/10. 26

27. Slide 27: Strategic M&A Capabilities Driven by Deep Sector Knowledge

    Institutional Group Strategic M&A Capabilities Driven by Deep Sector Knowledge M&A Industry Group Focus # Value Industry Groups Sectors Transactions ($ billions) Aerospace, Defense & Gov't Services Aerospace & Defense, Specialty Defense & Homeland Security, 36 $2.8 Government Services Cleantech Rene

28. Slide 28: IV. Third Quarter 2010 Financial Results

    IV. Third Quarter 2010 Financial Results

29. Slide 29: Chairmen's Comments

    Chairmen’s Comments “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 of the merger with

30. Slide 30: Highlights: Three Months Ended September 30, 2010

    Highlights: Three Months Ended September 30, 2010 ƒ Record net revenues of $340.4 million, an 18% increase over the 3rd quarter of 2009 and a 4% increase over the 2nd quarter of 2010. ƒ The Global Wealth Management (GWM) segment posted record net revenues of $207.5 million, a 31% increase over the 3

31. Slide 31: Stifel Financial Corp. Results

    Stifel Financial Corp. Results Three months ended September 30, 2010 Three Months Ended September 30, 2010 Quarter Ended Merger‐ Ended 6/30/09 Related 9/30/09 % (Non‐ % (1) (2) (2) ($ in thousands, except per share amounts) GAAP Charges Non‐GAAP (GAAP) Change GAAP) Change Net revenues $ 340,388 $ 93

32. Slide 32: Estimated TWPG Merger-Related Expenses

    Estimated TWPG Merger-Related Expenses Quarter Ended 6/30/10 9/30/10 12/31/10 3/31/11 ($ in thousands) Plan Actual Plan Actual Plan Plan Operating expenses: Compensation and benefits $ 3,100 $ 3,100 $ 177,050 $ 183,176 (1) $ 700 ‐ Non‐comp operating expenses 1,900 1,900 12,800 8,495 10,000 (3) 2,000

33. Slide 33: Highlights: Nine Months Ended September 30, 2010

    Highlights: Nine Months Ended September 30, 2010 ƒ Record net revenues of $980.4 million, a 27% increase over the comparable period in 2009. ƒ The GWM segment posted record net revenues of $606.8 million, a 48% increase over the comparable period in 2009. ƒ The IG segment posted record net revenues

34. Slide 34: Stifel Financial Corp. Results

    Stifel Financial Corp. Results Nine months ended September 30, 2010 Nine Months Ended September 30, 2010 Nine Merger‐ Months Related Ended % (1) ($ in thousands, except per share amounts) GAAP Charges Non‐GAAP 9/30/2009 Change Net revenues $ 980,427 $ 939 $ 981,366 $ 771,169 27.3% Compensation and b

35. Slide 35: Sources of Revenues

    Sources of Revenues Quarter Ended Nine Months Ended % % ($ in thousands) 9/30/10 9/30/09 Change 6/30/10 % Change 9/30/10 9/30/09 Change Revenues Principal transactions $ 123,194 $ 123,238 0.0% $ 122,923 0.2% $ 363,537 $ 341,777 6.4% Commissions 96,986 90,905 6.7% 103,634 (6.4%) 305,655 246,236 24.1%

36. Slide 36: Global Wealth Management

    Global Wealth Management Quarter Ended Nine Months Ended ($ in thousands) 9/30/10 9/30/09 % Change 6/30/10 % Change 9/30/10 9/30/09 % Change Net revenues $ 207,484 $ 158,659 30.8% $ 199,940 3.8% $ 606,845 $ 409,911 48.0% Compensation and benefits 119,100 96,711 23.2% 123,609 (3.6%) 367,447 253,169 4

37. Slide 37: Stifel Bank & Trust

    Stifel Bank & Trust Quarter Ended Nine Months Ended ($ in thousands) 9/30/10 9/30/09 % Change 6/30/10 % Change 9/30/10 9/30/09 % Change Net revenues: Interest 9,601 4,962 93.5% 8,171 17.5% 25,859 12,395 108.6% Other income 1,924 865 122.4% 1,062 81.2% 5,099 3,284 55.3% Total revenues 11,525 5,827 97

38. Slide 38: Institutional Group Revenues

    Institutional Group Revenues Quarter Ended Nine Months Ended ($ in thousands) 9/30/10 9/30/09 % Change 6/30/10 % Change 9/30/10 9/30/09 % Change Sales and trading: Equity $ 43,711 $ 39,733 10.0% $ 44,099 (0.9%) $ 126,462 $ 114,598 10.4% Fixed income 43,808 58,196 (24.7%) 44,263 (1.0%) 132,416 174,69

39. Slide 39: Volume Comparison

    Volume Comparison Stifel Gained 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 (27%) 4% 40,000 140 31,362 131 30,000 25,891 23,012 130 124 127 20,000 120 10,000 110 0 100 1Q 10 2Q 10 3Q 10 1Q 10 2Q 10 3Q 10 US Market Daily SF Dai

40. Slide 40: V. Conclusion

    STIFEL FINANCIAL V. Conclusion

41. Slide 41: Looking Forward: We See Opportunity

    Looking Forward We See Opportunity Stifel is well-positioned in the current market: „ Dislocation creating opportunity for market share gains „ Ability to add talented professionals „ Expand Fixed Income/High Yield „ Evolving regulatory framework (Stifel is already regulated by the Fed) „ Expand tra

42. Slide 42: Stifel Financial Investor Presentation

    Stifel Financial Investor Presentation

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