Jefferies Financial Group Inc. · NYSE:JEF
Jefferies Financial — Leucadia National — Investor Presentation (October 2013)
39 slides from Jefferies Financial's investor presentation, Oct 3, 2013
Slide 1: Leucadia National Corporation, October 2013
Exhibit 99 Exhibit 99 Leucadia October 2013 National Corporation
Slide 2: Forward-Looking Statements
Notesreports This looking expressions. statements nature could with iLeucadia document cause on are statements Forward /inherently October also actual we Forward contains include fileLooking results include 2013 with uncertain. looking statements “forward the tostatements Statements differ, SEC. sta
Slide 3: Table of Contents
Table of Jefferies National Berkadia Garcadia Other Appendix Leucadia ii Businesses Contents 15 Beef 28 25 Overview Leverage, /Businesses 32 October 21 302013 1Liquidity 14 and Balance Sheet Parameters 8
Slide 4: Leucadia Overview
1Leucadia /Overview October 2013
Slide 5: Executive Summary
Executive Parent Available At Potential Leucadia’s National $228 Jefferies Investment (1) (2) $5,159.6 (3) 06/30/13 2Leucadia 12/31/12, Adjusted Reflects Includes million company continues Beef, million). tax LTM –parent /continues Summary October parent historic Jefferies criteria parent 06/30/13 f
Slide 6: Leucadia Overview: Businesses and Investments
Following Parent Deferred Over Other Common $10.0 Jefferies $5.2 $2.0 National (Value-added Leather Berkadia (Full-Service market Linkem (Italian (Plastic Company) ($ Idaho (Wood Note: (1) Leucadia 955.4 125.0 Excludes billion time, Dollar billion Timber Businesses Company Products) Mortgage Broadba
Slide 7: Book Value per Share Growth Since 1990
Book $32.00 27.67 25.03 16.95 $24.00 9.73 $16.00 12.4%CAGR $8.00 1.97 Jefferies 2013 16.35 $20.00 $15.00 $10.00 11.07 5.27 7.40 14.2%CAGR $5.00 0.91 1990 $0.00 Note: (1) 4Leucadia Reduction 9.97 2.65 5.83 1.07 1991 Value Book 27.51 25.24 18.00 5.43 16.90 3.94 28.53 13.2214.1512.9613.87 9.07 –/–1.30
Slide 8: Total Shareholder Return
Total CAGR 5.0% 9.3% 9.0% 10.5% 10.0% 12.0% 13.4% 15.0% 17.1% 20.0% S&P 2.9% 500(2) January 0.0% Source: Note: shareholder (1) (2) 5Leucadia Through Reflects Dow Shareholder Leucadia Leucadia Jones(2) (%) Bloomberg. 1,/ Russell 1990 October return SPXT, February Jefferies(1) total 3.6% 3000(2) – Sep
Slide 9: Liquidity Events Over the Last Four Quarters
Liquidity Fortescue Inmet Mueller Keen TeleBarbados 6Leucadia Energy Mining stock /has Events Metals October sale generated sale merger –note (October (September Last 2013 consideration redemption over Four2012): $2 Quarters 2012): billion and $128 (March $28 $427 stock ofmillion proceeds million mi
Slide 10: Long-Term Strategy
Long-Term Financial Asset Berkadia Jefferies Auto Agribusiness Project Oregon Gasification Real Energy, HomeFed 7Leucadia Estate Retail Management Development Liquefied Metals /Services October Strategy – –Garcadia National andNatural 2013 Mining, – Compelling Beef Gas Consumer, ValueHealthcare, in
Slide 11: Leverage, Liquidity and Balance Sheet Parameters
8Leucadia /Leverage, October 2013 Liquidity and Balance Sheet Parameters
Slide 12: Balance Sheet Key Points
($ Millions) Key Assets: Financial Investments Loans Parent Investments: Receivables Property, Intangible Goodwill Deferred Liabilities Trading Securities Other Obligation Payables Trade Long-term Redeemable Mandatorily Noncontrolling Shareholders' Total 9Leucadia Points Assets: Assets Equity: Liabi
Slide 13: Liquid Assets and Parent Company Debt
Liquid$459 Parent Leucadia’s 2013: 2014: 2015: Leucadia 10 $402 $98 Company Assets /has MM October existing MMavailable Overview (convertible (matured Available Liquid 2013 parent parent Assets and company Cash bond) company repaid / Parent anddebt Investments in Company cash August matures and2013)
Slide 14: Ongoing Cash Flow from Operating Subsidiaries and Investees
Ongoing Leucadia’s June FYE ($ Cash National Berkadia Garcadia Premier Manufacturing Total Leucadia 11 Millions) 30, LTM Flow CashEntertainment 2013: Beef Annual 30 73 / October Flow from significant 12/31/12 35 58141 (Conwed Operating from Cash-Flow 87 2013 06/30/13 Operating business 28Plastics 27
Slide 15: Balance Sheet Parameters: Concentration and Liquidity
Balance Concentration: book BV National First Top-2 Book Liquidity: As ($ Parent Leucadia 12 Millions) of @%Quantum, value Value Investments Company Sheet of Beef /targets Leucadia October (excluding (excl. 06/30/13 877.0 Parameters Leucadia’s net specific Available Debt Jefferies) $of 2013 targets
Slide 16: Balance Sheet Parameters: Leverage
Balance Leverage: As ($ Total Equity Less: Stressed Parent Leucadia 13 Millions) of Equity Investment National First Deferred Company (excluding Sheet scenario Equity /targets Leucadia October Quantum, 06/30/13 10,023.6 Parameters Beef(877.0) Tax (excluding specific Debt in assumes Jefferies) Asset
Slide 17: Leucadia Businesses
Leucadia /Businesses 14 October 2013
Slide 18: Jefferies
Leucadia / October 2013 Jefferies 15
Slide 19: Jefferies Overview
Jefferies Full Client-Focused: Global Strong, Positioned Leucadia 16 Service Footprint: Stable –/ Overview October toCapital Seize Foundation: providing sales 2013 Market Markets & trading investor robust Share: Platform: and long-term having andinvestment expertise issuer broadened capital clients
Slide 20: Jefferies Offers Full Service Investment Banking
Investment Jefferies Cash Listed Equities Brokerage Prime Derivatives Securities Metals Finance ETFs Wealth Management Lodging Financial Sponsors Leucadia 17 Electronic Converts Futures & Real Trading Fixed –Telecom offers /Finance Public Mergers Markets A /October MBS Emerging Estate, Full Research
Slide 21: Jefferies Financial Performance Summary
Jefferies Financial Predecessor 11 Fiscal (Amounts Equities Fixed Sales Equity Debt Capital Advisory Investment Asset Earnings Net Group Adjusted (1) (2) Leucadia 18 Months The Other Revenues Earnings 347 and Management Income Year LLC 126 Markets selected $–Before Earnings Net /includes 385 Summary
Slide 22: Jefferies Net Revenues and Earnings Since 1990
With Jefferies $3,500 $3,000 $2,500 $2,000 $1,500 $1,000 $500 Net $400 $200 1990 ($600)(541) ($400)(427) ($200)(3) $0 (1) (1)(2) (2) (3) stock Leucadia 19 The Includes Revenues Earnings the 144 206 7 1991 compensation 2,990 2,476 2,163 1,457 1,058 479 10 selected –exception raised /275 180 19 Net Oc
Slide 23: Jefferies Recent Developments
Jefferies Solid Durable Continued Jefferies’ In Client Investment Capital M&A Leucadia 20 September growth activity flows markets Fixed –full continues / Recent emphasis October Banking have in service 2013, remains Income, Equities activity been Developments to 2013 performance revenues backlog on
Slide 24: National Beef
National Beef Leucadia 21 / October 2013
Slide 25: National Beef Overview
National Company 34th Compete Processes, Processing: Consumer Hide Kansas Trucking: Headquartered Key Date Book Equity Financial In Completion Revenue $8.0 $7.5 $6.0 $0.0 $2.0 $4.0 Profit $313.3 $400 $196.9 $300 $200 2008 $0 $100 FYE (1) accounting (2) reconciliation Leucadia 22processing 2012, Prio
Slide 26: National Beef Industry Trends
National US industry U.S. 28 27 26 Production 24 38 34 (Billion 21 Commercial (1,000) 1970 Beef KS The Aug-02 1.30 1.40 1.50 1.60 1.70 1.80 1.90 2.00 (1) (2) Leucadia 23 46 44 42 36 1,000 30 Source: Cutout Beef Steer U.S. cutout beef Commercial Cow 1976 3,500 3,000 2,500 1,500 0 Aug-03 22 margins Pr
Slide 27: National Beef Recent Developments
National Global Recent Acquired Retrofit Widespread wide Leucadia 24 beef protein regulatory ofBeef /remaining packing October hide drought –demand tanning Recent change margins 2013 minority conditions is Developments facility expected inand cattle interest National expected have age tocontributed
Slide 28: Berkadia
THE INDUSTRY BERKADIA Leucadia 25 / OctoberOF 2013 ONE
Slide 29: Berkadia Overview
Berkadia Company Business Loan Investment Bridge Master In 3rd Formerly Key 50 Date Book Equity Leucadia’s (1) Leucadia Portfolio More The Impending $840 Multifamily Servicing $250.0 $257.6 $300.0 $197.2 $220.3 $200.0 6.6 $150.0 $100.0 220.3 $50.0 127.0 155.7 2009 $0.0 Purchased 26 December /Shown 9
Slide 30: Berkadia Loan Originations and Pre-Tax Earnings
Berkadia Loan $10.0 $8.0 24% $6.0 20% $4.6 $4.0 $2.0 10% $0.0 Pre-Tax ($ $120 $100 $104 $90 $80 $40 $60 $20 $0 2010 (1) reserves, Leucadia 27 Billions)(% Millions)($ $0 Cash $71 $31 $30 25% $5.2 15% 9% 5% 0% $150 $120 2011 Originations $9.5 Income $35 10% Earnings less –/ October 2012 30% $135 $107
Slide 31: Garcadia
Leucadia / October 2013 Garcadia 28
Slide 32: Garcadia Overview
Company 15th 21 1,800 Current 85 Acts Acquisition Build Target Focus Solve Key Joint Date Book Operations: Equity Strong Average Consumer Prime Number Auto Large 17,900 Top Technology Many Financial FYE ($ #Total % Garcadia (1) (2) Leucadia 29ofMargin Millions) Growth dealerships years Represent Rep
Slide 33: Other Businesses
Other Businesses Leucadia 30 / October 2013
Slide 34: Other Businesses
Other Premier Hard Currently Manufacturing 06/30/13 Conwed A Partners Idaho Wood Operations Start-up Linkem Real Residential HomeFed Leucadia 31market Estate Rock Timber Businesses product Entertainment wireless with Plastics LTM /leader constructing isOctober Hotel in and / aHomeFed customers prima
Slide 35: Appendix
Leucadia / October 2013 Appendix 32
Slide 36: Calendar of Leucadia and Jefferies Investor Events
2013 14, March May August October Leucadia 33 and 4,7,9, 10, 2014 2014 /2014 October 2014 2013 ––Calendar –Leucadia –Combined Leucadia –Jefferies 2013 Jefferies ofAnnual Investor Fixed Leucadia FixedIncome Shareholder Income Day and Investor Jefferies Investor Meeting Day and Investor DayShareholder
Slide 37: National Beef GAAP Reconciliation
National FYE ($ Pre-Tax Interest Depreciation Profit Note: accounting Leucadia 34 Millions) August, Prior from Expense Income Beef / October for Operations to2008 & FYE being GAAP National Amortization (GAAP) / 2009 (Income), Dec., 2013 acquired Reconciliation (Non-GAAP) 2010 Beef, $ 127.0 net 2011
Slide 38: Berkadia GAAP Reconciliation
Berkadia FYE ($ Pre-Tax Amortization, Gains Loan Unrealized Cash Leucadia 35 Millions) December Earnings Loss Attributable Income GAAP / October Reserves (Gains) 2010 Impairment (Non-GAAP) 31, (GAAP) Reconciliation 2011 to /2013 and Losses; Origination 2012 Guarantee $and 31.0 and $ Depreciation 70.
Slide 39: Jefferies Fiscal 2011 GAAP Reconciliation
Jefferies Fiscal 2011 ($ Compensation Noncompensation Total Earnings Income Net (1) also (2) subsequent costs (3) related (4) (5) resulting (6) employees (7) donations (8) domestic Leucadia 36 Millions) A In Includes Reflects Revenues Earnings includes 2012 for total Non-interest accordance connecti
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