Jefferies Financial Group Inc. · NYSE:JEF
Jefferies Financial — Debt Investor Presentation (February 2023)
17 slides from Jefferies Financial's debt investor presentation, Feb 8, 2023
Slide 1: Jefferies Client and Creditor Overview, February 2023
Exhibit 99.1 Jefferies Client and Creditor Overview FEBRUARY 2023 © 2023 Jefferies Financial Group Inc.
Slide 2: Notes on Forward Looking Statements
Notes on Forward Looking Statements This document contains “forward looking statements” within the meaning of the safe harbor provisions of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward looking statements include statements about our future
Slide 3: Jefferies At A Glance
Jefferies At A Glance A Global, Full-Service Expertise and depth across advisory, underwriting, equities, fixed income, alternative asset and wealth management Investment Banking Firm Providing investor and corporate clients with the highest Client-Focused quality advice, execution and service We op
Slide 4: Fourth Quarter 2022 and Full Fiscal Year 2022
Earnings Update – Fourth Quarter 2022 and Full Fiscal Year 2022 Fourth Quarter Ended November 30, 2022 Fiscal Year Ended November 30, 2022 § Net Revenues: $1,438 million§ Net Revenues: $5,979 million § Pre-Tax Earnings: $195 million§ Pre-Tax Earnings: $1,056 million § Net Earnings: $141 million§ Net
Slide 5: 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 Financial Instruments Owned at approx
Slide 6: Core Operating Principles
Core Operating Principles Jefferies is focused on the following core principles to manage risk and deliver across-the-cycle revenue and earnings growth: § Jefferies maintains a very liquid, financeable and low-risk balance sheet Strong Liquidity § Jefferies maintains a consistent, carefully managed
Slide 7: Strong Capital Structure and Ample Liquidity
Strong Capital Structure and Ample Liquidity § Jefferies maintains a highly liquid balance sheet, with low gross leverage and exposure to illiquid assets, and significant structural liquidity § Jefferies continues to manage the size of its balance sheet in response to market conditions and volatilit
Slide 8: Limited Leverage
Limited Leverage § Jefferies has a long-standing policy of carefully managing balance sheet leverage § In periods of stress, Jefferies has demonstrated the ability to rapidly reduce leverage without unduly impacting our business (1) Tangible gross leverage ratio and tangible gross assets are non-GAA
Slide 9: Strong Liquidity
Strong Liquidity Jefferies’ trading inventory is liquid and low-risk, rapidly turning in order to serve client flow Very Liquid Inventory Reliable Secured Funding Client-Focused § 78% of financial instruments § Approximately 61% of our § Fee and flow-based owned are readily and cash and non-cash bus
Slide 10: Level 3 Financial Instruments Owned Overview
Level 3 Financial Instruments Owned Overview § As of November 30, 2022, approximately 96% of inventory is Level 1 and 2, with a minimal amount of Level 3 Financial Instruments Owned § As of November 30, 2022, Level 3 Financial Instruments Owned represent only 9.5% of tangible common shareholders' eq
Slide 11: Value-at-Risk (VaR)
Value-at-Risk (VaR) Notes: 1) A one-day time horizon, with a one-year look-back period, and a 95% confidence level was used. 11
Slide 12: Liquidity Pool
Liquidity Pool Jefferies maintains significant excess liquidity on hand Total Liquidity Pool ($ Millions) (2) (1) (1) Consists of high-quality sovereign government securities and reverse repurchase agreements collateralized by U.S. government securities and other high quality sovereign government se
Slide 13: Unsecured Long-Term Debt Profile
Unsecured Long-Term Debt Profile § As of November 30, 2022, our $7.5 billion carrying value of unsecured long-term debt had a weighted average maturity of approximately 9.5 years § No maturity of unsecured long-term debt in a single year is greater than 20% of outstanding long-term debt Long-Term Un
Slide 14: Credit Ratings
Credit Ratings Group Jefferies Financial Group Inc. Agency Rating Outlook Standard & Poor’s BBB Stable Moody’s Baa2 Stable Fitch BBB Positive Subsidiaries (1) Jefferies LLC Agency Rating Outlook Standard & Poor’s BBB+ Stable Moody’s Baa1 Stable (2) Jefferies International Limited Agency Rating Outlo
Slide 15: Appendix
Appendix Jefferies
Slide 16: Jefferies Financial Group Inc. Consolidated Balance Sheet
Jefferies Financial Group Inc. Consolidated Balance Sheet ($ Millions) Note: As presented in Jefferies Financial Group Inc. public filings. (1) Leverage ratio equals total assets divided by total equity. (2) Tangible gross leverage ratio (a non-GAAP financial measure) equals total assets of $51,058
Slide 17: Tangible Assets and Tangible Common Shareholders' Equity GAAP Reconciliation
Jefferies Financial Group Inc. Tangible Assets and Tangible Common Shareholders' Equity GAAP Reconciliation 2020 2021 2022 2022 (Amounts in $ Billions, Except for Ratios) 4Q 4Q 3Q 4Q Total Assets (GAAP) 49.8 56.1 51.5 51.1 Less: Goodwill and Intangibles 1.9 1.9 1.9 1.9 Tangible Gross Assets (Non-GAA
Jefferies Financial Group — Debt Investor Presentation (February 2023) on 6ix