Jefferies Financial Group Inc. · NYSE:JEF
Jefferies Financial — Debt Investor Presentation (July 2019)
23 slides from Jefferies Financial's debt investor presentation, Jul 3, 2019
Slide 1: Jefferies Group LLC – Update for Fixed Income Investors July 2019
Jefferies LLC Member SIPC Jefferies Group LLC – Update for Fixed Income Investors July 2019 Exhibit 99
Slide 2: Disclaimer
Disclaimer: i IMPORTANT: You must read the following before continuing. The following applies to this document, any oral presentation of the information in this document by Jefferies Group LLC (the “Company”) or any person on behalf of the Company, and any question-and-answer session in connection w
Slide 3: Jefferies Group
Jefferies Group Jefferies Group is a global investment bank engaged in investment banking, sales and trading, and asset management. Jefferies Group is the largest subsidiary under its parent company Jefferies Financial Group, a diversified financial services company. Full-Service Capital Markets Pla
Slide 4: Business Highlights
Business Highlights Jefferies Group Recorded LTM Q2 2019 Net Revenues of $3.1 billion and Pre-Tax Income of $383 million. Investment Banking revenues have grown at the highest annual rate of all major global investment banks. Increases in overall fee market share led to U.S. rankings for FY 2018 of
Slide 5: Jefferies Group: Strategic Update
Jefferies Group: Strategic Update Poised to make further market share gains and increase operating margin. Our competitive position has strengthened further, as several major competitors have experienced challenges and may face near-term inflection points, which may lead to further industry consolid
Slide 6: Jefferies Global Footprint
Jefferies Global Footprint 30 Principal Offices 4 As of 11/30/18
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: Executive Committee
Executive Committee Note: Years at Jefferies includes experience at acquired predecessor (e.g., Broadview). Made up entirely of internal senior managers, the Executive Committee (“EC”) provides insight, perspective and guidance for the day-to-day operations and strategic direction of their respectiv
Slide 9: Second Quarter 2019 and Last Twelve Months
Earnings Update – Second Quarter 2019 and Last Twelve Months Second quarter ending May 31, 2019 performance: Net Revenues: $902 million Pre-Tax Earnings: $155 million Net Earnings: $110 million Revenues by Source: Last twelve months ending May 31, 2019 performance: Net Revenues: $3,127 million Pre-T
Slide 10: Revenues by Source Presentation Note
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 further discussion of
Slide 11: Balance Sheet and Funding Overview
Balance Sheet and Funding Overview We continue to manage the size of our balance sheet in response to market conditions and volatility. Tangible Gross Leverage (1) at 5/31/2019: 9.4x Inventory was $16.1 billion at 5/31/2019 Our long-standing liquidity and funding principles have maintained the stren
Slide 12: Balance Sheet Overview
Balance Sheet Overview ($ Millions) Note: As presented in Jefferies public filings. Leverage ratio equals total assets divided by total equity. Tangible gross leverage ratio (a non-GAAP financial measure) equals total assets of $42,818 million less goodwill and identifiable intangible assets of $1,8
Slide 13: Capital, Funding & Liquidity
Capital, Funding & Liquidity 11
Slide 14: 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 approxi
Slide 15: 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. Tangible gross leverage ratio and tangible gross assets are non-GAAP fina
Slide 16: Level 3 Financial Instruments Owned Overview
At May 31, 2019, 98% of inventory is Levels 1 and 2, with a minimal amount of Level 3 Financial Instruments Owned. At May 31, 2019, Level 3 Financial Instruments Owned represent only 8.4% of tangible Jefferies Group LLC member’s equity. Tangible Jefferies Group LLC member's equity (a non-GAAP financ
Slide 17: Weighted Average Maturity of Secured Funding
Weighted Average Maturity of Secured Funding (1) Repo Secured with Clearing Corp Eligible Securities (1) Secured Funding Secured Funding Platform - Liquid balance sheet funded predominantly via exchanges. Non-clearing corporation eligible collateral funded via tri-party / bilateral repo and stock lo
Slide 18: Fundability of Collateral
Fundability of Collateral 16 Weighted Average Maturity (Days)
Slide 19: Liquidity Pool
Liquidity Pool Jefferies maintains significant excess liquidity on hand. Consists of high quality sovereign government securities and reverse repurchase agreements collateralized by U.S. government securities and other high quality sovereign government securities; deposits with a central bank within
Slide 20: Unsecured Long-Term Debt Profile
Unsecured Long-Term Debt Profile As of 5/31/2019, our $6.5 billion carrying value of unsecured long-term debt had a weighted average maturity of approximately 8.4 years. No maturity of unsecured long-term debt in a single year is greater than 20% of outstanding long-term debt. 2019 maturity has been
Slide 21: Credit Ratings
Credit Ratings Jefferies Group LLC Agency Rating Outlook Standard & Poor’s BBB- Stable Moody’s Baa3 Stable Fitch BBB Stable Note: As of June 2019 Jefferies LLC Agency Rating Outlook Standard & Poor’s BBB Stable Moody’s Baa2 Stable Jefferies International Agency Rating Outlook Standard & Poor’s BBB S
Slide 22: Appendix
Appendix 20 Jefferies
Slide 23: Tangible Assets and Tangible Member's Equity GAAP Reconciliation
Tangible Assets and Tangible Jefferies Group LLC Member’s Equity GAAP Reconciliation Note: Jefferies 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 adjuste
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