Jefferies Financial Group Inc. · NYSE:JEF
Jefferies Financial — Investor Presentation (November 2007)
23 slides from Jefferies Financial's investor presentation, Nov 6, 2007
Slide 1: A global investment bank and institutional securities firm
A global investment bank and institutional securities firm serving dynamic companies and their investors. Member SIPC
Slide 2: Jefferies – A Recognized Global Leader
Jefferies – A Recognized Global Leader We Are a Full Service, Sector-Focused, Integrated Global Securities and Investment Banking Firm Sales, Trading & Research Investment Banking Equities Convertibles Fixed Income Sector Groups Sales & Trading Aerospace & Defense CleanTech Consumer & Retail Technol
Slide 3: Global Footprint
Global Footprint 2,513 employees across offices in 30 cities worldwide Frankfurt Calgary Chicago London Paris San Francisco Nashville Boston Silicon Valley Stamford Zurich New York Los Angeles Jersey City Tokyo Denver Short Hills Washington Dallas Charlotte Shanghai** Dubai* Hong Kong Houston Atlant
Slide 4: Investment in Human Capital
Investment in Human Capital “Hire the best” Producers: Increased revenue generating employees from 722 to 1,879 or 160% since 2000 Protect Our Platform: Increased Legal and Compliance employees from 16 to 60 or 186% since 2000 “Keep it variable” Total Headcount Compensation & Benefits (% of
Slide 5: Current Highlights
Current Highlights Strong growth and momentum across the firm 73/4 consecutive years of record revenues and earnings, with continued diversification as a firm overall and within virtually all operating segments 2,513 motivated employee-shareholders, who own 40% of Jefferies, have completed trans
Slide 6: 3rd Quarter 2007 Highlights
3rd Quarter 2007 Highlights Record Results 2004 LTM 3Q07 Improvement Record Net Revenues $1.1 billion $1.6 billion +45% Record Net Earnings $131 million $225 million +72% Record EPS $1.03 $1.50 +46% Book Value $1.0 billion $1.8 billion +80% Current Market Capitalization $2.6 billion $3.9 billion(1)
Slide 7: Aligned & Motivated Management Team
Aligned & Motivated Management Team Fully diluted Market Capitalization of $3.9 billion Years at Years in Name Title Jefferies the Industry Ownership%(1) Richard B. Handler(2) Chairman and CEO 17 20 9.6% Chairman, Executive Brian P. Friedman(2) Committee 6 23 2.9% Other Executive Committee Members 7
Slide 8: Growing Diversified Net Revenues
Growing Diversified Net Revenues LTM 3Q07 $1,592mm 2004 IB 2000 $1,058mm 45% IB $675mm 33% IB AM I&O AM 8% 15% 2% 5% I&O 1% AM 5% S&T I&O 49% 1% S&T S&T 58% 78% SALES & TRADING INVESTMENT BANKING ASSET MANAGEMENT INTEREST & OTHER 8
Slide 9: Powerful Sales And Trading Platform
Powerful Sales And Trading Platform Sales & Trading and Research Equities High Yield Convertibles Investment Grade Trading Powerhouse Recognized Leader in First Class Global Experienced Provider of Superior High Yield Issues Equity-Linked Franchise Investment-Grade Services 160+ institutional sale
Slide 10: Strong Equity Franchise
Strong Equity Franchise Domestic and Unrivaled customer base (500 accounts = 80% of revenues vs. international execution capabilities through 22 approximately 50 accounts for other major firms), resulting in broader offices on three and better distribution continents Over 160 institutional sales
Slide 11: Full Service U.S. Equities Platform
Full Service U.S. Equities Platform Our 45 year history in Equities Sales & Trading has produced over 2,000 deep institutional relationships and industry leading trading volume Continued Franchise Growth: Electronic and Algorithmic Trading, Equity Products, Quantitative Trading, Prime Brokerage,
Slide 12: Fixed Income & Commodities
Fixed Income & Commodities Convertibles Sales & Trading – 45 professionals based in London, Zurich, Hong Kong, Tokyo & New York guarantee global distribution and secondary trading – Makes markets in over 400 convertible securities Strong High Yield Franchise – Focus on “Single B” credits and dis
Slide 13: Investment Banking
Investment Banking Middle Market Investment Bank of the Year (1) Leading M&A advisor on Wall Street (2) #2 – Deals under $250 million Investment Banking Revenues #2 – Deals up to $500 million, across all industries ($Millions) #6 – Deals under $1 billion Leading high yield underwriter CAGR 36% $
Slide 14: Diversified, Integrated, and Full-Service Investment Bank
Diversified, Integrated, and Full-Service Investment Bank Diversified Products and Industry Expertise LTM 3Q07 Revenue By Type By Industry Maritime General Debt 3% Energy 11% M&A & 27% Financial Services 19% Advisory 3% 40% Oil Services 3% Industrial 18% Technology 18% Healthcare Equity Aerospace 5%
Slide 15: Underwriting & Advisory Rankings
Underwriting & Advisory Rankings Q3 2007 All High Yield New Issues Under $1 Billion 2001 – Q3 2007 Single B New Issues Under $150 Million MANAGER PROCEEDS RANK DEALS MANAGER PROCEEDS RANK DEALS Jefferies & Company, Inc. $782.5 1 4 Jefferies & Company, Inc. $3,422.4 1 38 JP Morgan 563.5 2 3 Banc of A
Slide 16: Relationships to Leverage our Banking & Trading Platforms
Relationships to Leverage our Banking & Trading Platforms Jefferies Finance LLC – Jefferies and MassMutual Babson Capital – Lead managed 45 of the 62 transactions completed since inception with total volume of 4.2 billion – Objective: Provide senior lending to middle market clients and sponsors –
Slide 17: Assets Under Management
Assets Under Management Total Assets Under Management Jefferies Asset Management Funds As of ($ Millions) September 30, Strategy Description Assets Under Management Long/Short Equity Financial Sector Equities 277 Long/Short Equity Healthcare Services (1) Fixed Income 1,832 Long/Short Equity Healthca
Slide 18: Research
Research Award winning research analysts consistently recognized in The Wall Street Journal's annual "Best on the Street" analyst survey and StarMine Research Rankings Covered Equity Research – U.S. Companies Covered Professionals Companies 753 735 Equity 115 735 597 High Yield 15 400 505 Converts 3
Slide 19: Mid-Cap and Growth Focus
Mid-Cap and Growth Focus Ranked among Top 5 Research Teams in Wall Street Journal's 2007 "Best on the Street" analyst survey, with a total of 7 analyst honors (1) Fourteen Analyst honors globally in the 2007 StarMine Analysts Awards (2) 75% of U.S. equity coverage under $5 billion in market capitali
Slide 20: Branded Market Presence
Branded Market Presence We never lose sight of your objective. ‘Theaugh ever-changing martats and tng usr condor tates an ees ey to kespycurtrtng ctfectvs on tack At eats, cur mats exper and dagp Maus Irmwiege arabia us to do st tat. Wa oer you avast salen of aettonal and ge ipectram of securty pee
Slide 21: Strong Capital Position
Strong Capital Position As of Sept 30, 2007 ($Millions) $3.7 billion in total capital Long-Term Debt $1,765 Series A Convertible Preferred $125 Investment grade since debt offering in 1994 Total Stockholder’s Equity $1,831 – Upgraded to BBB+ by S&P in June 2006 Total Capitalization $3,721 – Upgr
Slide 22: Stock Performance Relative to Peers
Stock Performance Relative to Peers Change in Stock Price January 1, 2000 – October 19, 2007 Bear Lehman Bank of Broker Goldman Merrill Deutsche Morgan Jefferies Stearns Brothers America Index(1) Sachs Wachovia Lynch Bank Citigroup JP Morgan Stanley 353% 172% 170% 160% 151% 131% 68% 59% 54% 34% 16%
Slide 23: A global investment bank focused on growing and mid-sized companies
A global investment bank focused on growing and mid-sized companies and their investors. November 6, 2007 - Permission required to reproduce.
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