Stifel Financial Investor Presentation September 2011 Disclaimer - PowerPoint PPT Presentation

Stifel Financial Investor Presentation September 2011

Disclaimer Table of Contents 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 prospects of Stifel Financial Corp., as well as Stifel, Nicolaus & Company, Incorporated and its subsidiaries (the “Company”) . These statements can be identified by the use of the words “may,” “will,” “should,” “could,” “would,” “plan,” “potential,” “estimate,” “project,” “believe,” “intend,” “anticipate,” “expect,” and similar expressions. In particular, these statements may refer to our goals, intentions, and expectations, our business plans and growth strategies, our ability to integrate and manage our acquired businesses, estimates of our risks and future costs and benefits, and forecasted demographic and economic trends relating to our industry. You should not place undue reliance on any forward-looking statements, which speak only as of the date they were made. We will not update these forward-looking statements, even though our situation may change in the future, unless we are obligated to do so under federal securities laws. Actual results may differ materially and reported results should not be considered as an indication of future performance. Factors that could cause actual results to differ are included in the Company’s annual and quarterly reports and from time to time in other reports filed by the Company with the Securities and Exchange Commission and include, among other things, changes in general economic and business conditions, actions of competitors, regulatory and legal actions, changes in legislation, and technology changes. Note Regarding the Use of Non-GAAP Financial Measures The Company utilized non-GAAP calculations of presented net revenues, compensation and benefits, non-compensation operating expenses, income before income taxes, provision for income taxes, net income, compensation and non- compensation operating expense ratios, pre-tax margin and diluted earnings per share as an additional measure to aid in understanding and analyzing the Company’s financial results. Specifically, the Company believes that the non-GAAP measures provide useful information by excluding certain items that may not be indicative of the Company’s core operating results and business outlook. The Company believes that these non-GAAP measures will allow for a better evaluation of the operating performance of the business and facilitate a meaningful comparison of the Company’s results in the current period to those in prior periods and future periods. Reference to these non-GAAP measures should not be considered as a substitute for results that are presented in a manner consistent with GAAP. These non-GAAP measures are provided to enhance the overall understanding of the Company’s current financial performance. 2

I. Stifel Financial Overview

Stifel Financial Overview Stifel Financial (NYSE: SF) Financial services firm demonstrating growth , scale and stability  $1.5 billion market capitalization (1)  2010 Represented 15 years of consecutive record net revenues  Balanced business model  Top performing financial stock since 12/31/2000  37% Insider ownership (2) Global Wealth Management Institutional Group (GWM) (IG)  Private Client  Independent Research  Stifel Bank & Trust  Institutional Equity & Fixed Income  Customer Financing Brokerage  Asset Management  Equity & Fixed Income Capital Raising  M&A Advisory  Largest U.S. equity research platform –  National presence with over 1,900 over 1,000 stocks under coverage Financial Advisors  Broad product portfolio & industry  $116 billion in total client assets expertise (1) As of 9/16/11. (2) Insider ownership percentage includes all fully diluted shares, units outstanding, options outstanding, as well as shares owned by Stifel’s former Chairman as of 5/6/2011. 4

Stifel Financial Overview A Growth Story… Net Revenues ($MM) (2) Core Net Income ($MM) (2) Total Equity ($MM) (2) $1,500 $1,382 $140 $125 CAGR: 39% CAGR: 43% CAGR: 43% $1,400 $1,296 $1,254 $120 $1,200 $1,091 $1,200 $100 $870 $1,000 $873 $900 $76 $763 $73 $80 $67 $800 $593 $60 $600 $600 $452 $40 $425 $40 $400 $264 $220 $21 $300 $155 $20 $200 $0 $0 $0 2005 2006 2007 2008 2009 2010 6/30 2005 2006 2007 2008 2009 2010 2005 2006 2007 2008 2009 2010 Total Client Assets ($BN) (2) Financial Advisors (1)(2) Book Value Per Share (2)(3) $30.00 2,500 $140 CAGR: 24% CAGR: 20% CAGR: 28% $24.42 $24.50 $116 $25.00 1,958 1,935 $120 $111 1,885 2,000 $19.24 $100 $91 $20.00 1,500 1,315 $15.12 $80 1,163 $15.00 $12.24 $59 $52 $60 1,000 $6.81 $8.23 735 $10.00 644 $35 $40 $27 500 $5.00 $20 $0.00 0 $0 2005 2006 2007 2008 2009 2010 6/30 2005 2006 2007 2008 2009 2010 6/30 2005 2006 2007 2008 2009 2010 6/30 (1) Includes Independent Contractors. (2) CAGR reflects years 2005 to 2010 for net revenues and core net income, and reflects years 2005 to 2011 assuming 6/30/11 as year-end 2011 for total equity, client asset, financial advisors and book value per share. (3) Book Value Per Share adjusted for April 2011 three-for-two stock split (2005-2010) 5

Stifel Financial Overview Building Scale… Strategic Growth Through Acquisitions  Investment Banking  Sales and Trading 2005¹ 6/30/2011  Private Client Group (IG) Retail  Financial Advisors 467 1,958  October 2011 Brokerage  Private Client Branches 94 288 Network  Investment Banking  Sales and Trading  Senior Research Analysts 23 84  Research Equity  Companies Under Coverage 230 1,160 Research  July 2010  Private Client Equity  Sales and Trading Professionals 37 205  October 2009 Capital  Institutional Clients 500 3,500 Markets  Private Client  Public Finance Fixed Income  Sales and Trading Professionals 17 167  December 2008 Capital  Institutional Clients 1,500 3,800 Markets  Private Client  Capital Markets  Professionals 23 250  February 2007 Investment  Industry Groups 5 13 Banking  Capital Markets  December 2005 ¹As of September 2005. 6

Stifel Financial Overview Stability Achieved Through A Balanced Business Model  Balanced business model facilitates growth during volatile markets  Stable GWM business is augmented by profitable and growing Institutional Group  Proven ability to grow all businesses Net Revenues Operating Contribution 2010 6 Months 2011 2010 6 Months 2011 IG IG IG IG 27% 36% 39% 40% GWM GWM GWM GWM 60% 61% 64% 73% Note: Net revenues and operating contribution excludes the Other segment. 7

Stifel Financial Overview Cumulative Price Appreciation As of September 16, 2011 Since 12/31/10 Since 12/31/05 Since 12/31/00 SWS Group 17.03% Stifel Financial Corp. 73.04% Stifel Financial Corp. 662.46% S&P 500 Index -3.31% Raymond James Financial 11.02% Jefferies Group 89.31% Edelman Financial Group -3.45% S&P 500 Index -2.59% Raymond James Financial 79.87% JMP Group -10.88% Oppenheimer -3.50% Edelman Financial Group 64.71% Raymond James Financial -14.74% Goldman Sachs Group -15.83% Goldman Sachs Group 0.52% Legg Mason -20.51% Lazard -18.50% S&P 500 Index -7.90% Oppenheimer -26.40% Jefferies Group -34.24% Oppenheimer -19.96% Evercore Partners -27.88% Greenhill & Co. -45.39% Legg Mason -20.65% FBR Capital Markets -29.58% Piper Jaffray -46.76% SWS Group -62.31% Stifel Financial Corp. -30.10% Edelman Financial Group -57.29% Morgan Stanley NM Cowen Group -30.28% SWS Group -57.66% Cowen Group NM Lazard -34.16% Morgan Stanley -71.01% Evercore Partners NM Goldman Sachs Group -36.08% Legg Mason -75.91% FBR Capital Markets NM Piper Jaffray -38.56% Cowen Group NM Greenhill & Co. NM Morgan Stanley -39.54% Evercore Partners NM JMP Group NM Jefferies Group -44.46% FBR Capital Markets NM KBW NM KBW -50.72% JMP Group NM Lazard NM Greenhill & Co. -62.45% KBW NM Piper Jaffray NM 8

Market Observations and Strategy Global Wealth Management Outlook Private client flow business The firm is well positioned, even   in the current environment  Stifel Bank Low leverage business model  Asset mix   AUM Recruiting trends  Strategy Institutional Group  Continue growth strategy Institutional equity flow business   Prudently increase Stifel’s  Fixed income environment leverage ratio Capital markets activity   Grow assets and profitability at Stifel Bank 9