Jefferies Financial Group Inc. · NYSE:JEF
Jefferies Financial — Investor Day (October 2018)
108 slides from Jefferies Financial's investor day presentation, Oct 3, 2018
Slide 1: Jefferies Financial Group Inc. 2018 Investor Meeting
Jefferies Financial Group Inc. 2018 Investor Meeting October 4, 2018 Exhibit 99
Slide 2: Note on Forward Looking Statements
Note on Forward Looking Statements Certain statements contained herein may constitute "forward-looking statements," within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934 and/or the Private Securities Litigation Reform Act of 1995, regardi
Slide 3: 2018 Investor Meeting Agenda
2018 Investor Meeting Agenda 1
Slide 4: 2018 Investor Meeting Agenda (Continued)
2018 Investor Meeting Agenda (Continued) 2
Slide 5: Evolution of Jefferies Financial Group
Evolution of Jefferies Financial Group Transformative steps have confirmed and clarified our focus on financial services Jefferies Group continues its strong performance, led by the expansion of Investment Banking into new sub-sectors and geographies: August 31, 2018 LTM Net Revenues of $3.2 billion
Slide 6: Jefferies Financial Group Overview
Jefferies Financial Group Overview Note: Dollar amounts are Jefferies Financial Group’s net carrying amount as of 6/30/18 for each investment; for consolidated subsidiaries equal to their assets less liabilities and non-controlling interest. Amounts are presented on a pro forma basis as if the sale
Slide 7: Global Full-Service Capabilities
Global Full-Service Capabilities Listed Derivatives Cash Equities Electronic Trading Prime Services ETFs Convertibles Wealth Management MBS / ABS / CMBS Emerging Markets Investment Grade Rates Municipals TMT Industrials Healthcare Financials Financial Sponsors REGAL Equity Capital Markets Energy Con
Slide 8: Jefferies Group: Performance Update
Jefferies Group: Performance Update Focused on revenue growth and margin expansion; last nine quarters demonstrate consistency of results from expansion and improvements We continue to build a leading, client-focused global investment banking firm, seeking to provide clients with the best ideas, exp
Slide 9: Jefferies Group: Priorities
Jefferies Group: Priorities Our priorities are revenue growth and margin expansion, while maintaining our discipline around liquidity and risk management Highest priority is revenue growth led by Investment Banking maturation and continuing new hires Equities and Fixed Income are pursuing market sha
Slide 10: The Path to Simplification and Greater Transparency
2016 The Path to Simplification and Greater Transparency 2013 2015 2016 2017 2018 YTD 2018 Q4 2017 Sold Conwed 2017 2018 YTD Sold 48% and deconsolidated National Beef Sold 100% of our interest in Garcadia Recategorized as a Financial Services firm Changed name from Leucadia to Jefferies Financial Gr
Slide 11: A Fair Value Perspective on Our Merchant Banking Business
A Fair Value Perspective on Our Merchant Banking Business Note: Net asset values have been developed in accordance with Accounting Standards Codification (“ASC”) §820, which defines Fair Value as “the price that would be received to sell an asset or paid to transfer a liability in an orderly transac
Slide 12: Share Repurchase
Share Repurchase Tangible Book Value and Fully-Diluted Shares Outstanding are non-GAAP measures. See Appendix on pages 94-95 for reconciliations to GAAP amounts. Amounts are presented on a pro forma basis as of 6/30/18 as if the sale of Garcadia and the transfer of Berkadia and Leucadia Asset Manage
Slide 13: Jefferies Group LLC
Jefferies Group LLC Jefferies
Slide 14: Financial Overview
Financial Overview Jefferies
Slide 15: Operating Results
Operating Results Note: In the first quarter of 2018, we made changes to the presentation of our “Revenues by Source” to better align the manner in which we describe and present the results of our performance with the manner in which we manage our business activities and serve our clients. For a fur
Slide 16: Balance Sheet
Balance Sheet As of August 31, 2018 ($ Millions) Note: As presented in Jefferies Group public filings. Leverage ratio equals total assets divided by total equity. Tangible gross leverage ratio (a non-GAAP financial measure) equals total assets of $40,572 million less goodwill and identifiable intang
Slide 17: Limited Leverage
Limited Leverage Note: As reported in Jefferies Group public filings. Tangible gross leverage ratio and tangible gross assets are non-GAAP financial measures. Tangible gross leverage ratio equals tangible gross assets divided by tangible Jefferies Group LLC member's equity. Tangible gross assets equ
Slide 18: Return on Tangible Equity
Beginning of Period Total Tangible Jefferies Group LLC Member’s Equity(1) Return on Tangible Equity Jefferies Group has tangible Jefferies Group LLC member’s equity of $3.7 billion as of August 31, 2018, excluding $1.8 billion of goodwill and intangibles related to the 2013 merger with Jefferies Fin
Slide 19: Level 3 Trading Assets Overview
Level 3 Trading Assets Overview 98% of inventory is Level 1 or 2, with a minimal amount of Level 3 Trading Assets at 8/31/18 Level 3 Trading Assets were $311 million at 8/31/18, representing only 8.4% of tangible Jefferies Group LLC member’s equity Tangible Jefferies Group LLC member's equity (a non
Slide 20: Investment Banking
Investment Banking Jefferies
Slide 21: Investment Banking – Overview
Investment Banking – Overview Jefferies Investment Banking is a leading advisor and underwriter to our clients globally 822 investment bankers with deep sector expertise and extensive experience across major industry verticals On-the-ground presence in 13 countries across the world 75% of our LTM Q3
Slide 22: Investment Banking – Sector, Product, and Regional Expansion
Investment Banking – Sector, Product, and Regional Expansion Since the beginning of fiscal 2017, we have expanded our Managing Director footprint across sectors, products and geographies Expanded our sector footprint in Industrials, Consumer, Technology, Financial Services and Municipal Finance Expa
Slide 23: Investment Banking – Performance Update
Our investment banking revenues for the nine months ended fiscal 2018 increased 12% compared to the nine months ended fiscal 2017 and for the LTM Q3 2018 increased 16% compared to the same period in 2017 Our performance was driven by significant revenue increases in ECM and M&A This resulted in our
Slide 24: Investment Banking – U.S. Fee Market Share
Investment Banking – U.S. Fee Market Share LTM 8/31/18 M&A Market Share Rank Investment Bank Market Share ∆ From LTM Q3 2017 1 Goldman Sachs 11.6% 2 JP Morgan 9.5% 3 Morgan Stanley 8.4% 4 Citi 5.7% 5 Barclays 5.2% 6 Jefferies 4.2% from 10 7 BAML 4.2% 8 Credit Suisse 4.1% 9 Evercore 3.6% 10 Centervie
Slide 25: Jefferies Finance – Overview
Jefferies Finance – Overview Jefferies Finance, our corporate lending joint venture with Massachusetts Mutual Life Insurance Company, continues to grow steadily and prudently Established in 2004, Jefferies Finance has demonstrated growth and resilience across multiple business cycles Jefferies Finan
Slide 26: Investment Banking Growth Priorities
Continue to increase the productivity of our sector MDs Capitalize on the significant revenue opportunities in recently entered sectors, products and regions Drive further market share gains in M&A by leveraging our increased coverage footprint and continuing to increase the average size and fees of
Slide 27: Equities
Equities Jefferies
Slide 28: Equities – Overview
Equities – Overview Global Equities at Jefferies is a leading client franchise that continues to grow strategically. With Sales, Trading and Advisory capabilities across North America, Europe and Asia, and with major trading hubs in New York, London and Hong Kong, we are well-equipped to serve our g
Slide 29: Global Businesses Market Share Growth
Our Global Businesses have Demonstrated Significant Growth in Market Share. Our growth is largely driven by our client focus, enhanced global capabilities, and the momentum of the overall Jefferies platform. We have considerably diversified our business, with electronic trading and international mar
Slide 30: Equities – The Remaining Wallet and Growth Strategy
Equities – The Remaining Wallet and Growth Strategy Our Strategy is to Focus on Deeper Client Penetration across Global Cash Equities and Further Developing our Client Offering across Non-Cash Products. Non-Cash Products represent approximately 72% of the overall Global Equities wallet. Leveraging o
Slide 31: Equities – Strategic Priorities
Equities – Strategic Priorities We are Focused on Healthy & Sustainable Growth in our Global Equities Franchise. Our strategic priorities are across our Advisory & Execution businesses and cross-functionally across Human Capital Management and cross-selling new & existing products. Business Area Glo
Slide 32: Fixed Income
Fixed Income Jefferies
Slide 33: Fixed Income – Overview
Jefferies serves clients across all major cash products in the U.S. and Europe 435 sales, trading, capital markets, research and strategy professionals globally Primary Dealer or equivalent in U.S., U.K., Germany, Netherlands, Portugal and Slovenia Focused on providing best-in-class ideas, facilitat
Slide 34: Fixed Income – Positioned and Focused
More consistent revenues on lower cost, balance sheet, capital and risk Fixed Income – Positioned and Focused Note: As reported in Jefferies Group public filings. Period End Fixed Income Balance Sheet. Period End Headcount with Q1’15 adjusted to include Financial Futures and FX, new businesses that
Slide 35: Fixed Income – Market Share Growth
Fixed Income – Market Share Growth Emerging Markets: #1 Dealer for Most Helpful Traders, including Top 2 (Greenwich Survey 2018) #4 Dealer for Most Helpful Analysts, including #2 and #3 Analysts (Greenwich Survey 2018) Tied #2 for US EM market share in 2018, EU EM at #6 in 2017 (Greenwich Survey 201
Slide 36: Fixed Income – Strategic Priorities
Fixed Income – Strategic Priorities Drive consistent results by continuing to emphasize our long-standing client centric strategy Quality Share vs. Market Share Building deeper partnerships with targeted clients Highly productive balance sheet with emphasis on high turnover inventory Invest in techn
Slide 37: Berkadia
BERKADIA’ Jefferies
Slide 38: Berkadia Company Overview
Company Overview Berkadia is a full-service mortgage banking firm that provides clients best of class services and products in middle market mortgage finance, advisory and servicing Business Lines: Permanent and construction commercial real estate loans Investment Sales broker for multifamily, hospi
Slide 39: Industry Update
Industry Update Telecom – Linkem Real Estate Development – HomeFed Industrial Conwed Idaho Timber Metals & Mining – Golden Queen Consumer, Healthcare and Media Long-Term Market Growth Maturities of non-bank Commercial/Multifamily mortgages grow 60% over next 6 years to $160 billion Multifamily matur
Slide 40: Berkadia Financial Performance
Financial Performance Core pretax income excludes income from corporate investments and Mortgage Servicing Rights impairments and recoveries. Cash Earnings is a non-GAAP measure. Cash Earnings equals pre-tax income plus depreciation, amortization and impairments of mortgage servicing rights (MSRs) a
Slide 41: Servicing Portfolio
Servicing Portfolio Our servicing portfolio has experienced nearly complete turnover since the inception of the Company. Unpaid principal balance as of June 30, 2018 was $216 billion; $203 billion, or 94%, relate to loans added since initial acquisition (2009) Change in mix of servicing portfolio ha
Slide 42: 2018 Update
2018 Update 1H 2018 Core cash earnings growth of 27% to $70 million. This was driven by a shift in servicing portfolio mix toward loans with higher weighted average service fees, as well as a 23% increase in origination cash fees YoY Improved productivity of Bankers / Sales Advisors. Annualized volu
Slide 43: Goals and Priorities
Goals and Priorities Our Long-Term Goals Be the No. 1 Fannie Mae, Freddie Mac, and HUD lender by combined volume (3rd in 2017) Transform the commercial real estate finance industry through innovation, technology and data Drive process excellence throughout the firm Our Priorities Help our clients be
Slide 44: Leucadia Asset Management
Leucadia Asset Management 42
Slide 45: Leucadia Asset Management – Overview
Leucadia Asset Management – Overview Diversified alternative asset management platform – supporting and developing focused funds and managed accounts managed by distinct management teams Includes all asset management activities within the firm, including investments and strategic relationships where
Slide 46: Leucadia Asset Management – Recent Developments
Leucadia Asset Management – Recent Developments January 2018: Launch of Tenacis comingled fund April 2018: quantPORT re-branding and growth initiative Re-branded quantPORT from Strategic Investment Division Focus on further scaling the successful quantitative investment platform April 2018: Folger H
Slide 47: Leucadia Asset Management – Select Platforms and Strategies
Leucadia Asset Management – Select Platforms and Strategies Asset Class NAV(1) Founded Description Multi-PM Multi $0.5 2002 First-loss, scalable multi-manager and multi-strategy liquid securities fund Multi $1.7 1978 Multi-strategy asset manager with 40 year track-record Equities $0.5(3) 1988/ 2014
Slide 48: Risk Management
Risk Management Jefferies
Slide 49: Risk Management Framework
Risk Management Framework Jefferies' comprehensive risk management framework has been a foundation for our success across market cycles Our Risk Management Principles Robust risk culture Hands on approach to risk management Independent and integrated Asset quality Risk Governance and Risk Strategy E
Slide 50: Risk Management Committee Structure
Note: Dotted lines represent communication lines. Risk Management Committee Structure Jefferies Group Board of Directors Firm Management Chief Risk Officer / Global Treasurer Risk Management Market Risk Management Compensation Audit Corporate Governance and Nominating Operating Executive Asset / Lia
Slide 51: VaR Report
VaR Report Quarterly VaR Average af Millions) Avg, VaR related to KCG® Avg. Firmwide VaR Excl. KCG 10 5 co) Oo 2 AJ Nd fo fo fo fo A A A “A > XJ XJ 9 2 8 9 8 SG 8 8 HD HK HLH H S 2 8 S$ FF FS SS SF FE CSS SS 8 Annual VaR Average ($ Millions) . . 15 m Avg. VaR related to KCG ~—™ Avg. Firmwide VaR Exc
Slide 52: VaR Report and Trading Revenues
VaR Report and Trading Revenues Historically, Jefferies has presented Distribution of Daily Net Trading Revenues including KCG Holdings. KCG was sold in July 2017. Number of Breaches represents the number of days during a given period where net trading losses were greater than VaR estimates. Distrib
Slide 53: Capital and Liquidity Management
Capital and Liquidity Management 51
Slide 54: Liquidity and Funding Principles
Liquidity and Funding Principles Jefferies’ long-standing liquidity and funding principles have maintained the strength and soundness of our platform across market cycles Owning inventory that is composed of liquid assets that turn over regularly, with Level 3 assets at 2.0% of inventory as of 8/31/
Slide 55: Fundability of Collateral
Fundability of Collateral Liquid, easy to fund collateral. 88% Tier 1 or Tier 2 collateral funded with average haircuts of 5% or below. Tier 3 average haircut of 13% Approximately 95 lenders providing liquidity for Tier 2, 3 and 4 collateral with the largest lender at only 10% of the total Less than
Slide 56: Global and Legal Entity Liquidity Stress Model
Global and Legal Entity Liquidity Stress Model Stress test contingency liquidity outflows at the global and regional level 100% loss of non-cleared repo and stock loan Higher margins at CCP’s and clearing organizations 100% loss of customer credit balances Buy back Jefferies debt for market support
Slide 57: Long-Term Unsecured Debt Maturity Schedule
Long-Term Unsecured Debt Maturity Schedule ($ Millions) Long-Term Debt Profile As of 8/31/18, our $6.4 billion carrying value of long-term debt had a weighted average maturity of approximately 8.8 years No maturity of long-term debt in a single year is greater than 20% of outstanding long-term debt
Slide 58: Q & A’s
Q & A’s – IRQuestions@Jefferies.com
Slide 59: Merchant Banking
Merchant Banking Jefferies
Slide 60: National Beef
* N i x a lona. ee Ks ® Jefferies
Slide 61: National Beef Company Overview
Company Overview 4th Largest U.S. Beef Company LTM 6/30/18 Sales – $7.7 Billion Market Share – ~12.5% Employees – ~8,100 #1 U.S. Exporter of Chilled Beef Market Share – 26% 2nd Largest U.S. Hide Tanner Market Share – 33% Intensely Focused on Value-Added Production LTM 06/30/18 EBITDA(1) and Pre-Tax
Slide 62: 2018 Transaction Highlights
2018 Transaction Highlights In June, we closed the sale of 48% of National Beef to Marfrig, a Brazilian beef packer, for $908 million in cash, reducing our ownership to 31% and allowing us to deconsolidate National Beef We received an additional $229 million in pre-closing distributions, reflecting
Slide 63: 2018 Operating Update
2018 Operating Update In LTM 6/30/18, National Beef’s EBITDA margin improved to 8.4% vs. 6.9% in the prior year period (LTM 6/30/17), while total volume was up 4.3% based on equivalent weeks The domestic supply of fed cattle continued to increase in 2018, supporting greater capacity utilization and
Slide 64: Cattle Supply Update
Cattle Supply Update Recent USDA cattle inventory reports confirm that the domestic beef cowherd continues to grow, albeit at a slower rate Because the peak in supply of fed cattle ready for slaughter lags the peak size of the beef cowherd, throughput should continue to increase for at least the nex
Slide 65: National Beef Financial Performance
Financial Performance Non-GAAP measure. See Appendix on page 99 for reconciliation to GAAP amounts. Pre-Tax Income ($ Millions) Adjusted EBITDA(1) ($ Millions) 62
Slide 66: Strategic Priorities
Strategic Priorities Explore the benefits of partnership with Marfrig Focus on additional value-added production Ongoing marketing to retailers and food service providers of consumer-ready, portion-controlled and other value-added product lines As capacity utilization increases, seek margin enhancem
Slide 67: Idaho Timber
} IDAHO TIMBER . Jefferies
Slide 68: Idaho Timber Overview
Overview Manufacturer and distributor of wood products Complementary Remanufacturing and Sawmill segments 7 plants and 3 sawmills located in 7 states ~1.0 billion board feet of capacity Remanufacturing segment Purchase low value dimension lumber and remanufacture to add value for pro dealers and lum
Slide 69: Recent Developments and Performance
Recent Developments and Performance Overall housing demand continues slow rebound from recessionary lows Softwood Lumber Agreement between U.S. and Canada expired and a tariff on imported lumber has been imposed – while this limits volume of low-grade Canadian lumber, the effect on Idaho Timber’s bu
Slide 70: Strategic Priorities
Strategic Priorities Opportunistically invest in new capacity Focus on timely purchasing opportunities to enhance revenue and margins Continue to improve efficiency at primary sawmills Continue to reposition operations to increase spread and volumes in remanufacturing segment Continue to work with h
Slide 71: Spectrum Brands
Spectrum Brands Jefferies
Slide 72: HRG Group Merged into Spectrum Brands
Company Update – HRG Group Merged into Spectrum Brands In July, HRG Group merged into its consolidated subsidiary, Spectrum Brands, a global and diversified consumer products company and a member of the Russell 1000 Index Since Jefferies Financial Group initially invested in HRG in 2014 / 2015: Unlo
Slide 73: Spectrum Brands Financial Overview
Stock Price Adjusted EBITDA(4) & Margin Financial Overview Note: Spectrum Brands fiscal year ends near September 30th of each year. LTM figures reflects results from roughly July 2, 2017 – June 30, 2018. Spectrum Brands starts each fiscal quarter on a Sunday, resulting in altered dates for quarter e
Slide 74: Vitesse Energy Finance
Vitesse (____energy finance Jefferies
Slide 75: Vitesse Company Overview
Company Overview Vitesse Energy Finance has invested $439 million to acquire, develop and produce cash flow from oil and gas properties in proven, lower risk oil and gas fields in the growing core of the Bakken Oil Field Vitesse, as a financial non-operating owner, partners with leading Bakken opera
Slide 76: Vitesse Company Overview (Continued)
Company Overview (Continued) Vitesse has hedged substantially all current and the majority of its anticipated new production in the second half of 2018 and all of 2019 with price floors on average of $58.60/Bbl and $53.35/Bbl, respectively $87.3 million of annualized Q2 2018 Adjusted EBITDA(1) refle
Slide 77: Strong Bakken Economics – Leveraged to Technology & Prices
Strong Bakken Economics – Leveraged to Technology & Prices Note: SEC Net Oil Price ($/bbl): 2014: $85.49, 2015: $44.25, 2016: $37.10, 2017: $47.52. 2018: Strip at AFE Approval. SEC Net Gas Price ($/mcf): 2014: $7.50, 2015: $2.98, 2016: $2.65, 2017: $3.47. 2018: Strip at AFE Approval. Including acqui
Slide 78: Vitesse Financial Performance
Financial Performance As of July 31, 2018: Approximately 44,000 net acres primarily in the core of the Bakken 4,340 gross producing wells (88 net) 893 permitted, drilling or completing wells (23.66 net, of which 13.14 are completing) 300+ net future drilling locations ($2.0 billion of estimated futu
Slide 79: Strategic Priorities
Strategic Priorities Profitably grow production, EBITDA and pre-tax income Reinvest and compound our cash flow in the Bakken Invest in high return development wells with best operators at compelling valuations Leverage our data base / knowledge to acquire acreage inexpensively, where technology has
Slide 80: HomeFed
Jefferies
Slide 81: HomeFed Company Overview
Company Overview HomeFed is a public company (OTC:HOFD), 70% owned by Jefferies Financial Group, that develops and owns residential and mixed-use real estate projects in California, New York, Florida, South Carolina, Virginia and Maine; after many years in the entitlement process, vast majority of H
Slide 82: Project Status
Project Status Entitlement Process Land Development Active Lot / Home Sales Operating Asset Otay Ranch ~4,450 acres of entitled land in Chula Vista, CA Renaissance Plaza Mixed use (office, Marriott hotel and garage) asset in Brooklyn, NY The Market Common ~110 acre retail, office and residential cen
Slide 83: Otay Ranch
Otay Ranch HomeFed acquired 4,800 acres in Otay Ranch in 1998 and began entitling for development. In 2015, HomeFed acquired another 1,600 contiguous acres from State Street Bank In total, HomeFed holdings in Otay Ranch include approximately 6,200 acres, planned and entitled for approximately 13,050
Slide 84: Other Developments
Other Developments HomeFed closed a $198 million refinancing of an office condominium in Brooklyn Renaissance Plaza that provided net proceeds of $88 million to HomeFed in February 2018 Further streamlined operations when it ceased farming operations with the sale of the Rampage property for $26 mil
Slide 85: Strategic Priorities
Strategic Priorities Monetize land assets Optimize Otay Ranch assets – focus on expediting development programs and maximizing revenue over the coming years Continue to monetize Village of Escaya home sales and future village developments through sales and partnerships with top tier builders Progres
Slide 86: FXCM
rs Fxcm Jefferies
Slide 87: FXCM Company Overview
Company Overview FXCM Group LLC is a leading online provider of foreign exchange trading services to approximately 109,000(1) active retail trading accounts outside the U.S. Multi-asset class product offering – with approximately 70% of volumes in OTC Spot FX and 30% in contracts for difference (“CF
Slide 88: FXCM Financial Performance
Financial Performance Adjusted EBITDA(1) of $10.1 million on revenues of $81.2 million for first half of 2018 Operating expense trend reflects continued focus on cost reduction Adjusted operating expenses(1) of $33.3 million for Q2’18 down 14% from 2017 quarterly average $98 million in operating cas
Slide 89: Industry & Business Update
Currency volatility (“CVIX”) in 2018 has remained near-record low levels The European Securities and Markets Authority put in place new rules effective August 1st that lowers the amount of leverage available to retail clients Leverage limits vary by product type from 30:1 to 2:1 Other changes includ
Slide 90: Strategic Priorities
Strategic Priorities Continue focus on costs / well positioned to capitalize when volatility improves Advance new enhanced algorithmic and API offerings Promotion of new HTML5 web-based platform Improve CFD pricing Expand on Crypto CFD offering (Bitcoin launched in July 2018) Enhance client onboardi
Slide 91: Linkem
Jefferies
Slide 92: Linkem Company Overview
Company Overview Quarterly Subscribers 2011 2012 2013 2014 2015 2016 2017 2018 This is a Non-GAAP measure. See Appendix on page 104 for reconciliation to GAAP amount. Sources – Bullets 541,356k Subscribers, 2,366 BTS – from File 02 66% of Italian Households, 530 fiber points, 6,000 indirect sales po
Slide 93: Industry Update
Industry Update The value of Linkem’s frequency has increased significantly The 3.5GHz band is globally recognized as a core band for 5G services We estimate that the results of Italy’s 3.6GHz frequency auction that concluded on October 2, 2018 imply a value of over $1.5 billion for Linkem’s frequen
Slide 94: Business Update
Business Update Linkem’s core consumer fixed wireless broadband business continued to grow with developments aimed at accelerating growth going forward Linkem continues to be the fastest growing broadband provider in Italy Deployed a new Category 12 indoor CPE with improved performance and range, si
Slide 95: Strategic Priorities
Strategic Priorities Continue growing subscribers and the footprint of Linkem’s core consumer fixed wireless broadband service while maintaining excellent operating metrics and customer satisfaction Evaluate, test and opportunistically pursue developments with 5G to expand and improve service offeri
Slide 96: Q & A’s
Q & A’s – IRQuestions@Jefferies.com
Slide 97: Appendix
Appendix Jefferies
Slide 98: Pro Forma Equity and Tangible Book Value GAAP Reconciliation
Jefferies Financial Group – Pro Forma Equity GAAP Reconciliation Jefferies Financial Group – Tangible Book Value GAAP Reconciliation 94
Slide 99: Fully-Diluted Shares Outstanding GAAP Reconciliation
Jefferies Financial Group - Fully-Diluted Shares Outstanding GAAP Reconciliation Note: Fully-Diluted shares exclude shares for options, preferred shares and, at December 31, 2017, convertible debt. The convertible debt was redeemed in early 2018. Fully-diluted shares include the target number of sha
Slide 100: Reference Valuations – Page 7, Footnote
Reference Valuations – Page 7, Footnote 3 Market Capitalization – sourced from Bloomberg as of 9/28/18. Enterprise Value – represents the sum of market capitalization, debt (notes and loans payable, excluding securities sold under agreement to repurchase) and non-controlling interests, less cash and
Slide 101: Tangible Assets and Tangible Member’s Equity GAAP Reconciliation
Jefferies Group – Tangible Assets and Tangible Jefferies Group LLC Member’s Equity GAAP Reconciliation Note: Tangible gross assets and tangible Jefferies Group LLC member’s equity are unaudited non-GAAP financial measures that begin with information prepared in accordance with U.S. GAAP and then are
Slide 102: Adjusted Tangible Equity and Adjusted Net Earnings Reconciliations
Jefferies Group - Adjusted Tangible Jefferies Group LLC Member's Equity and Adjusted Net Earnings GAAP Reconciliations (for ROTE Calculations) Note: This presentation of Adjusted financial information is an unaudited non-GAAP financial measure. Adjusted financial information at November 30, 2017 beg
Slide 103: Berkadia and National Beef GAAP Reconciliations
Berkadia – Cash Earnings GAAP Reconciliation National Beef – Adjusted EBITDA GAAP Reconciliation Note: National Beef Adjusted EBITDA represents pre-tax income exclusive of depreciation and amortization expenses, impairment charges and net interest income/expense, which is a common metric used by man
Slide 104: Idaho Timber – EBITDA GAAP Reconciliation
Idaho Timber – EBITDA GAAP Reconciliation Note: Idaho Timber EBITDA represents pre-tax income exclusive of depreciation and amortization expenses and interest income, which is a common metric used by many investors in its industry to evaluate operating performance from period to period. 100
Slide 105: Vitesse – Adjusted EBITDA GAAP Reconciliation
Vitesse – Adjusted EBITDA GAAP Reconciliation Note: Vitesse Adjusted EBITDA represents pre-tax income exclusive of depletion, depreciation, amortization and accretion expenses, interest expense, unrealized losses on commodity derivative instruments and other non-recurring expenses, which is a common
Slide 106: Vitesse – Adjusted Pre-Tax Income GAAP Reconciliation
Vitesse – Adjusted Pre-Tax Income GAAP Reconciliation Note: Vitesse Adjusted Pre-Tax Income represents pre-tax income exclusive of unrealized losses on commodity derivative instruments and other non-recurring expenses, which is a common metric used by many investors in its industry to evaluate opera
Slide 107: FXCM – Adjusted EBITDA and Operating Expense Reconciliations
FXCM – Adjusted EBITDA and Adjusted Operating Expense Reconciliations Note: FXCM is not consolidated by Jefferies Financial Group and is accounted for under the equity method. The above reconciliations are provided for convenience only. Adjusted EBITDA and Adjusted Operating Expenses are Non-GAAP fi
Slide 108: Linkem – Adjusted EBITDA GAAP Reconciliation
Linkem – Adjusted EBITDA GAAP Reconciliation Note: Linkem is not consolidated by Jefferies Financial Group and is accounted for under the equity method. The above reconciliation is provided for convenience only. Linkem Adjusted EBITDA represents pre-tax loss exclusive of interest expense, depreciati
Jefferies Financial Group — Investor Day (October 2018) on 6ix