Jefferies Financial Group Inc. · NYSE:JEF
Jefferies Financial — Leucadia National — Investor Day (October 2017)
116 slides from Jefferies Financial's investor day presentation, Oct 4, 2017
Slide 1: Leucadia National Corporation 2017 Investor Meeting
Leucadia National Corporation 2017 Investor Meeting October 5, 2017 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: Leucadia's Momentum
Leucadia’s Momentum Leucadia’s operating performance continues to strengthen Jefferies performed well over the last twelve months (“LTM”) ended August 31, 2017, with Net Revenues of $3.1 billion and Pre-Tax Income of $459 million, reduced risk and volatility, and scope for further growth and margin
Slide 4: Leucadia's Opportunity
Leucadia’s Opportunity Common Book Value per Share Common Book Value per Share (Fully Diluted)(4) Common Tangible Book Value per Share (Fully Diluted)(4) Leucadia Tangible Capital is a non-GAAP financial measure excluding goodwill and intangibles from Book Value. See Appendix on page 101 for reconci
Slide 5: Leucadia parent capital and holdings
National Beef (79%) $713 Million Linkem (53%) $192 Million Jefferies Finance (50%) $541 Million KCG Holdings (24%) $316 Million (<$0 Million at Cost) Golden Queen (35%) $77 Million HRG Group (23%) $825 Million ($476 Million at Cost) Vitesse Energy (96%) $316 Million Financial Services $7.3 Billion M
Slide 6: Leucadia Business Highlights
Jefferies recorded Net Revenues of $3.1 billion and Pre-Tax Income of $459 million for LTM 8/31/17 Jefferies is delivering solid results with lower risk and lower volatility Poised to make further market share gains and increase operating margins National Beef’s LTM 6/30/17 EBITDA(1) and Pre-Tax Inc
Slide 7: Leucadia Business Highlights (Vitesse and JETX)
JETX (formerly Juneau Energy) transitioned to non-operated strategy, now managed by the Vitesse team Focusing on joint ventures to pool and develop its Eastern Eagleford acreage with Lonestar Resources and others as partners and operators Vitesse continues to partner with leading operators in lower
Slide 8: Leucadia Business Highlights (Continued)
In January 2017, closed a €100 million preferred equity financing at a €700 million pre-money valuation, including €50 million from new investor Blackrock (no further equity financing planned); €800 million post-money valuation equates to €427 million in value for the €258 million invested by Leucad
Slide 9: Leucadia 2.0 versus Pre-2013
Leucadia 2.0 versus Pre-2013 12/31/12 Versus 6/30/17 Significant Businesses & Investments (ex-Jefferies) 10(1) +90% 19(2) Average Size of Divestitures / Investments $351 Million per Divestiture(3) Increased Diversification $184 Million per Investment(4) Jefferies Business Model, Risk Metrics and Liq
Slide 10: Leucadia 2.0 versus Pre-2013 – Detailed
Leucadia 2.0 versus Pre-2013 – Detailed 2012 Versus Today 2012 Status Business Developments Status Today -Performance Improved? -Subsidiary Level Balance Sheet Improved? -Asset Monetized? Improved Performance & Value Creation Jefferies $2.8bn Adjusted Revenues(1) $3.1bn LTM Revenues √ National Beef
Slide 11: Leucadia Businesses' Executive Management
Leucadia Businesses’ Executive Management Experienced leadership, both at operating company level and with Leucadia’s Managing Directors CEO – Justin Wheeler since 2014 (previously at Leucadia since 2000) CFO – Randy Jenson since 2011 Rich Hander & Brian Friedman Leucadia Board of Directors Richard
Slide 12: Two Q & A's
Two Q & A’s – IRQuestions@Leucadia.com
Slide 13: Jefferies
Jefferies
Slide 14: Note on Adjusted Financials
Note on Adjusted Financials Note on the Use of Non-GAAP Financial Measures to Show Results Exclusive of the Bache Futures Business: In 2015, Jefferies exited its Bache futures business. Jefferies has supplemented certain of its financial disclosures to show results that exclude the Bache futures bus
Slide 15: Jefferies Overview
Jefferies Overview 12
Slide 16: Strong earnings momentum with potential for further growth
Strong earnings momentum over the last 18 months, with potential for further growth and margin expansion We continue to build a leading, client-focused global investment banking firm, seeking to provide clients with the best ideas, expertise and execution Our competitive position has strengthened fu
Slide 17: Jefferies Strategic Priorities
Jefferies Strategic Priorities Investment Banking Continue to increase the productivity of the sector MDs we have hired since January 2016 Drive market share gains in M&A by further expanding our sell-side franchise and continuing to increase the average size of our M&A transactions Increase our str
Slide 18: Jefferies Operating Results
Jefferies Operating Results 15
Slide 19: Jefferies Adjusted Earnings Overview
Jefferies Adjusted Earnings Overview(1) Note: As reported in Jefferies’ public filings. The adjusted financial measures presented herein are non-GAAP financial measures and represent Jefferies results of operations excluding the impact of the results of operations of the Bache business for 2015. See
Slide 20: Balance Sheet Overview
Balance Sheet Overview As of August 31, 2017 ($ Millions) Leverage ratio equals total assets divided by total equity. Tangible gross leverage ratio (a non-GAAP financial measure) equals total assets of $39,358 million less goodwill and identifiable intangible assets of $1,841 million divided by tang
Slide 21: Historical Quarterly Leverage
Historical Quarterly Leverage (1) ($ Millions) Disciplined Approach to Risk 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 asse
Slide 22: Disciplined Approach to Risk (Continued)
Level 3 Financial Instruments Owned (1) as a Percentage of Tangible Jefferies Group LLC Member’s Equity (2) ($ Millions) Level 3 Financial Instruments Owned (1) as a Percentage of Financial Instruments Owned ($ Millions) 97% of inventory is Levels 1 and 2, with a minimal amount of Level 3 Trading As
Slide 23: Jefferies Business Review
Jefferies Business Review 20
Slide 24: Investment Banking
Investment Banking 21
Slide 25: Investment Banking – Overview
Investment Banking – Overview Jefferies Investment Banking is a leading advisor and underwriter to our clients globally 789 investment bankers with deep sector expertise and extensive experience across major industry verticals On-the-ground presence in 13 countries across the world 74% of our LTM re
Slide 26: Investment Banking – Sector and Regional Footprint
Investment Banking – Sector and Regional Footprint We have continued to expand into new sub-sectors and geographies, adding 44 managing directors since January 2016, including 34 client coverage bankers, 28 of which are sector-focused managing directors across six of our eight major industry vertica
Slide 27: Investment Banking – Performance and Market Update
Investment Banking Net Revenues Investment Banking – Performance and Market Update Our investment banking net revenue for the 9 months of fiscal 2017 increased 59% compared to the same period in 2016 Our Q3 2017 net revenue was the highest quarterly performance in the history of our firm Our perform
Slide 28: Jefferies Finance – Overview
Jefferies Finance – Overview Total Arranged Deal Volume ($ Billions) 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
Slide 29: Investment Banking – Strategic Priorities
Investment Banking – Strategic Priorities Continue to increase the productivity of our sector MDs In LTM 8/31/17, our revenue per sector MD increased by 45% year-over-year, and is at its highest level ever for our firm Capitalize on revenue opportunities in recently entered and enhanced sectors Driv
Slide 30: Equities
Equities 27
Slide 31: Equities – Overview
Equities – Overview Global Equities at Jefferies is a leading client franchise that continues to grow strategically and gain market share. 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-e
Slide 32: Equities – Business Expansion & Development
Equities – Business Expansion & Development Regional Sales & Trading Revenue Contribution: Growing our Global Franchise Note: Revenue excludes Equity Capital Markets. Expanding and Developing our Global and Cross-Product Businesses A core strategy for our Global Equities business has been to expand
Slide 33: Equities – Performance Update
Equities – Performance Update Most of our Sales & Trading businesses are on pace to increase revenue versus 2016 including: Global Cash, Global Electronic Trading, Prime Services and Global Convertibles. All of our businesses have great potential to grow in 2018 and beyond While the Global Cash & El
Slide 34: Equities – Momentum in our Core Businesses
Equities – Momentum in our Core Businesses 2017 5 Years Ago 2017 5 Years Ago U.S. Convertibles U.S. Electronic Trading Institutional Investor Equity Research Ranked 10th; Less than 5% Share Derivatives Top 8; 6%+ Share Not in Top 10 Ranked 2nd; 11.1% Share 159 Bps Growth since 2012 Ranked 1st in Sal
Slide 35: Equities – Market Share Update
Equities – Market Share Update Jefferies has significantly increased market share post-financial crisis Growth 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 a
Slide 36: Equities – Strategic Priorities
Equities – Strategic Priorities Growing Non-Cash Business Our focus is on product and revenue diversification by cross-selling and leveraging client relationships across Electronics, Listed and OTC Derivatives, ETFs, Prime Brokerage, and Securities Finance & Swaps Electronic: Continuing to innovate
Slide 37: Fixed Income
Jefferies Fixed Income
Slide 38: Fixed Income – Overview
Fixed Income – Overview *Hires made at leadership level since 1/1/15 *Hires made at leadership level since 1/1/15 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 equival
Slide 39: Fixed Income – Repositioned and Refocused
More consistent revenues on lower cost, balance sheet, capital and risk Fixed Income – Repositioned and Refocused Adjusted quarterly Fixed Income Net Revenues excluding Bache. Period End Fixed Income Balance Sheet. Period End Headcount with 2Q15 adjusted to exclude Municipal Public Finance. Quarterl
Slide 40: Fixed Income – Performance Update
Fixed Income – Performance Update The realignment of resources that began in late 2015 is yielding more consistent revenues and returns Jefferies Fixed Income is focused on sales and trading of cash products in credit, rates and foreign exchange markets globally Fixed Income Net Revenues; No Credit
Slide 41: Fixed Income – Market Share Growth
Fixed Income – Market Share Growth Ranked #4 in EM credit market share, up from #12 in 2016 Ranked #4 for Top 3 relationships (by share) #1 Dealer for Most Helpful Traders, with #1 and #2 ranked Traders #2 Dealer for Most Helpful Analysts, with 4 of our Analysts in the Top 10 Emerging Markets: Marke
Slide 42: Fixed Income – Client Trends
1H 2017 Fixed Income Sales Credit by Client Segment 1H 2017 Fixed Income Sales Credit by Client Segment (1) Other includes governments and central banks “Clients First–Always” Market share improvements leading to increased volumes across client strategies Global Fixed Income up 13% in 1H17 vs. 1H16
Slide 43: Fixed Income – Strategic Priorities
Fixed Income – Strategic Priorities Drive consistent results by continuing to emphasize our long-standing client centric strategy Building deeper partnerships with targeted clients Highly productive balance sheet with emphasis on high turnover inventory Reinvigorated focus on technology that drives
Slide 44: Risk Management
Risk Management 41
Slide 45: Risk Principles
Risk Principles Jefferies' comprehensive risk management framework has been a foundation for our success across market cycles Culture We are all Partners at our firm, collectively building for the long-term on a foundation established over 50+ years Hands-on Our senior management and Board are deepl
Slide 46: Risk Management Summary Framework
Note: Dotted lines represent communication lines. Risk Management Summary Framework Jefferies Group Board of Directors Firmwide Committees Independent Price Verification New Business Business Line Committees Market Risk Management Credit Risk Management Operational Risk Management Underwriting Accep
Slide 47: VaR Report
VaR Report Jefferies Quarterly VaR Average Avg. VaR related to KCG (Shlitions) mmm Avg. Firmwide VaR Excl. KCG —VaR Excl. KCG moving average RJ Rd © © Xd a © o © ge o Annual VaR Average ‘unre ) Avg. VaR related to KCG 15 sss Avg. Firmwide VaR Excl. KCG —Vak Excl. KCG moving average 10 § > 5 0+ 2015
Slide 48: 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 49: Capital and Liquidity Management
Capital and Liquidity Management 46
Slide 50: 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 2.5% of inventory as of 8/31/
Slide 51: 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) Historical Quarterly Leverage (1) ($ Millions) Tangible gross leverage
Slide 52: Fundability of Collateral
Fundability of Collateral Liquid, easy to fund collateral. 91% Tier 1 or Tier 2 collateral funded with average haircuts of 5% or below. Tier 3 average haircut of 12% 100 lenders providing liquidity for Tier 2, 3 and 4 collateral with the largest lender at only 9% of the total Less than 1% of invento
Slide 53: 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 54: Long-Term Debt Profile
Long-Term Debt Profile Long-Term Debt Maturity Schedule (Notional) ($ Millions) As of August 31, 2017, our $6.4 billion notional of long-term debt had a weighted average maturity of approximately 7 years $345 million convertible bond is callable/puttable in November 2017 No maturity of long-term deb
Slide 55: Q & A's
Q & A’s – IRQuestions@Leucadia.com
Slide 56: National Beef
m y N i x a lona. < ee ® *
Slide 57: National Beef Company Overview
4th Largest U.S. Beef Company LTM 6/30/17 Sales – $7.0 Billion Market Share – 12.75% Employees – 8,200 #1 U.S. exporter of chilled beef 2nd Largest U.S. Hide Tanner Market Share – 27% Intensely Focused on Value-Added Production LTM 6/30/17 EBITDA(1) and Pre-Tax Income of $485 million and $380 millio
Slide 58: Business Segments
Beef Processing Consumer Ready Transportation Direct to Consumer Wet Blue Leather Business Segments 54
Slide 59: Beef Processing Overview
National Beef processes ~3 million fed cattle per year representing ~12.75% U.S. market share 2 processing plants strategically located in Liberal and Dodge City, KS Primary competitors: Cargill, JBS, Tyson Export beef and beef by-products to more than 20 countries National Beef is the #1 U.S. expor
Slide 60: Cattle Supply Update
Cattle Supply Update Growth in cattle available for slaughter is on track and is expected to continue until least until 2021 Industry slaughter typically peaks approximately 4 years after peak heifer retention U.S. Steer and Heifer Slaughter — Industry Weekly Average 6.5% CAGR Reflects the average a
Slide 61: Financial Performance
Financial Performance Pre-Tax Income ($ Millions) Adjusted EBITDA is a non-GAAP measure. See page 105 in the Appendix for a reconciliation to GAAP amounts. FYE December, 2016 2015 2017 6 Months Ending June Adjusted EBITDA ($ Millions) (1) FYE December, 2016 2015 2017 6 Months Ending June 57
Slide 62: 2017 Update
2017 Update An increased supply of cattle in 2017 has driven higher margins and greater capacity utilization versus 2016 For the first half of 2017, gross margin percentage improved to 6.4% vs. 5.0% in the prior year period, while total volume was up 4.9% based on same equivalent weeks Sales efforts
Slide 63: Strategic Priorities
Strategic Priorities 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 enhancement opportunities Manage for growth and enhanced
Slide 64: Berkadia
BERKADIA’ *
Slide 65: Berkadia Company Overview
Company Overview Berkadia is a full-service mortgage banking firm that provides clients middle market services and products in mortgage finance, advisory and servicing Business Lines: Permanent, Bridge and Construction loans Investment Sales Master/Primary Servicing 2nd largest GSE and HUD commercia
Slide 66: Financial Performance
Loan Originations ($ billion) Pre-Tax Margin (% of revenue) Pre-Tax Income(1) ($ million) Cash Earnings(2) ($ million) Financial Performance 2016 Core Earnings included recovery of Mortgage Servicing Rights impairment driven largely by forward interest rates. Cash Earnings is a non-GAAP measure. See
Slide 67: 2017 Update
2017 Update Berkadia’s results show continued growth in core pre-tax income. 1H 2017 core pre-tax income of $58 million up ~8% year over year Interest earnings on escrows benefitting from rising short-term rates Improved productivity of Bankers / Sales Advisors. Annualized volume per MB increased to
Slide 68: Industry Update
Industry Update Positive Long-Term Market Opportunities The final wave of pre-2007 commercial mortgage maturities passes in 2017 Multifamily maturities, specifically GSE and HUD, will continue to climb over the next several years, presenting long-term opportunities Source: Mortgage Bankers Associati
Slide 69: Servicing Portfolio
Servicing Portfolio Unpaid principal balance as of June 30, 2017 was $214 billion; $194 billion, or 91%, relate to loans added since initial acquisition (2009) Servicing Portfolio – UPB ($ billions) 65
Slide 70: 2017-2018 Strategic Priorities
2017-2018 Strategic Priorities Our Vision Through spirited and relentless pursuit, we will become the unmistakable firm of choice for employees and customers in middle market commercial real estate finance, with unyielding fidelity to our values Our Values Integrity is everything We take the long vi
Slide 71: Garcadia
( Mm™ GARCADIA *
Slide 72: Garcadia Overview
Garcadia Overview 11th Largest U.S. Auto Dealership Group in 2016 Based on New Sales Volume 4 Clusters, 28 dealerships – 14 domestic, 14 foreign brands One company, 28 dealerships with a common vision to be “Most Esteemed” Single brand maniacally focused on employee and customer experience Common op
Slide 73: Industry Update – Key Indicators Remain Positive
Industry Update – Key Indicators Remain Positive WardsAuto. IHS Automotive – 2016 Annual Study. Q2 2017 The Haig Report. 2.4% 69
Slide 74: Financial Performance
Financial Performance Represent combined amounts for all Garcadia dealership holdings, not just Leucadia’s share. Represents Leucadia’s share of cash distributions. Represents Leucadia’s net carrying amount for Garcadia (excluding land) and percentage return. Hurricane Update: Harvey shutdown Housto
Slide 75: Evolution 20/20
Evolution 20/20 Structure For Success Executional Mastery Current Reality 100% Alignment One Hour Sales Model Attract the Best People 45 Minute Oil Change 20% Net to Gross Vision Flattening Market Best “Best Practices” Deep in “Brand” Change Curve Regional Leadership Transitioning Profit Down One Ho
Slide 76: HRG Group
ARG oup *
Slide 77: HRG Company Overview
Company Overview NYSE-listed diversified holding company (NYSE: HRG) that is exploring strategic alternatives to maximize value for shareholders: Consumer Products – Spectrum Brands (NYSE: SPB, ~59% ownership (1)) Insurance – Fidelity & Guaranty Life (NYSE: FGL, ~80% ownership (1)); FrontStreet Re (
Slide 78: Spectrum Brands Overview
Spectrum Brands Overview Spectrum Brands (NYSE: SPB) is a global consumer products company focused on delivering a portfolio of consumer products with the same performance for a lower price / better value Core segments are Global Batteries & Appliances, Pet, Home & Garden, Hardware & Home Improvemen
Slide 79: Sum of the Parts Valuation
Sum of the Parts Valuation (Dilutive) without AOCI Source: Sum of the Parts Valuation per HRG Group’s 3rd Quarter August 7, 2017 Conference Call presentation, updated for closing market prices on 9/29/17. Book values are as of 6/30/17. Valuation excludes HRG Group's share of Accumulated Other Compre
Slide 80: Vitesse
Vitesse *
Slide 81: Vitesse Company Overview
Company Overview Vitesse Energy formed in May 2014 – Leucadia has invested $300 million to acquire and develop oil and gas properties in proven, lower risk oil & gas fields in the growing core of the Bakken Field and Denver-Julesburg (“DJ”) Basin Partner with the leading operators who drill and comp
Slide 82: Case Study: Deeper / Denser / Cheaper / Better
Case Study: Deeper / Denser / Cheaper / Better Vitesse participates in Oasis’ White unit which has seen significant improvements since 2011 EUR increased from 600 Mboe (2011, original frac) to over 1,800 Mboe today Decreased well costs by more than 30% since 2011 and increased frac size from 4 MM po
Slide 83: Financial Performance
Financial Performance Through June 30, 2017 20,283 net acres in the core Bakken counties of Williams, McKenzie, Mountrail and Dunn 1,420 gross producing wells (37.23 net) 413 permitted, drilling or completing wells (14.58 net, of which 8.92 are completing) 170+ net future drilling locations ($1.0 bi
Slide 84: Strategic Priorities
Strategic Priorities Optimize our assets Reinvest and compound cash flow into future horizontal wells Add assets opportunistically at compelling valuations Increase our exposure to high rate of return areas in Bakken and DJ Basins Basin will consolidate Leverage our best in class evaluation, big dat
Slide 85: JETX Overview
JETX Overview JETX (formerly Juneau Energy, LLC) is a Denver-based oil and gas company which has successfully transitioned to a non-op strategy, led by the Vitesse Energy management team JETX owns producing assets and leasehold acreage to be developed in Texas: Current production exceeds 500 boe/d w
Slide 86: JETX 2017 Plan
JETX 2017 Plan East Eagle Ford Maintain Arhopulos acreage block – continue leasing program Evaluate development program Expand our strategic partnership with Lonestar Resources 82
Slide 87: FXCM
83
Slide 88: FXCM Company Overview
Company Overview FXCM Group LLC is a leading online provider of foreign exchange trading services to approximately 124,000(1) active retail trading accounts outside the U.S. Multi-asset class product offering – with approximately 69% of volumes in OTC Spot FX and 31% in contracts for difference (“CF
Slide 89: Industry Update
FXCM is the fifth largest retail FX broker globally (ex. Japan) - with particular strength in Asia, especially China Currency volatility (“CVIX”) in 2017 has decreased to near-record lows Industry Update Based on Forex Magnates Q2/17 Quarterly Industry Report. Excludes Japanese brokers. Global FX Da
Slide 90: Financial Performance
Financial Performance Despite low volatility and lower trading volumes & revenues, FXCM has maintained profitability Revenue per million up 12% 1H 17 vs. 1H 16 due in large part to initiative to rollout dealing desk model to smaller clients In addition, significant cost reductions: $16M less adjuste
Slide 91: Strategic Priorities
Strategic Priorities Repay balance of Leucadia debt / complete asset sales Sale of DailyFX for $40 million in 2016 Sale of FastMatch in 2017 for $46.7 million upfront, $8.7 million held in escrow plus share of potential $10 million earnout Work continues on the sale of Lucid Further capitalize on re
Slide 92: Linkem
88
Slide 93: Linkem Company Overview
Company Overview Fastest-growing fixed wireless broadband internet provider in Italy Offers pre- and post-paid subscribers a simple product at a compelling price point: unlimited broadband services with speeds up to 30 Mbps for €25/month 454,986 subscribers as of 6/30/17 66% compound annual subscrib
Slide 94: Industry Update
Industry Update The Italian broadband market continues to be dominated by low-speed ADSL Over the coming years, ADSL will be replaced by both wireless and fiber solutions With a comparable service to fiber, significantly lower capex and an unmatched speed of deployment, Linkem is poised to become an
Slide 95: Italian Market Potential
Italian Market Potential Today: 62% Coverage, ~16MM HH 2019E: ~70%+ Coverage, ~18MM+ HH Household Coverage Evolution Over the next three years, Linkem plans to continue increasing its coverage and significantly grow penetration across Italy’s 26 million households 0-20% 21-40% 41-60% 61-80% 81-100%
Slide 96: Subscriber and Network Growth
Subscriber and Network Growth Subscriber Growth Subscribers (000’s) 2011 Network Growth Base Stations On-air Built WiMAX Scale LTE Growth Network Optimization 2012 2013 2014 2015 2016 2017 2011 2012 2013 2014 2015 2016 2017 92
Slide 97: 2017 Update
2017 Update During the first quarter, Linkem closed a €100 million preferred equity financing at a pre-money valuation of €700 million (post-money valuation of €800 million) Existing shareholders, along with funds managed by BlackRock, invested €100 million in cash to fund future expansion plans Leu
Slide 98: Strategic Priorities
Strategic Priorities Increase coverage through LTE network deployment with the goal of reaching 80%+ Italian household coverage Maintain excellent operating metrics and customer satisfaction Increase coverage and distribution capacity in larger cities to fully leverage the network investments in eac
Slide 99: Leucadia Asset Management
Leucadia Asset Management 95
Slide 100: Leucadia Asset Management Overview
Diversified alternative asset management platform – supporting and developing focused funds managed by distinct management teams Compelling edge – leverage Jefferies to source, and Leucadia to capitalize and market Fee-generating assets; prospect of long-term stable cash flows; ability to recycle se
Slide 101: Platform and Strategies
Strategic Investments Division (Quantitative Strategies) Systematic strategy with a multi-quant approach across asset classes, geographies and time horizons Structured Alpha B, Managed Futures, Grouper (equity market neutral) Folger Hill Asset Management (Multi-Manager) Multi-manager discretionary l
Slide 102: Platform and Strategies (Continued)
Tenacis (Quantitative Strategies) Systematic macro fund encompassing equities, credit, FX, rates and volatility Lake Hill Electronic trading of listed options and futures across asset classes CoreCommodity Management (Commodity Strategies) Active strategies designed to provide enhanced commodity exp
Slide 103: Q & A's
Q & A’s – IRQuestions@Leucadia.com
Slide 104: Appendix
Appendix 99
Slide 105: Tangible Book Value and Fully-Diluted Shares Outstanding
Leucadia – Tangible Book Value and Fully-Diluted Shares Outstanding GAAP Reconciliations Telecom – Linkem Real Estate Development – HomeFed Industrial Conwed Idaho Timber Metals & Mining – Golden Queen Consumer, Healthcare and Media Note: Fully Diluted shares exclude shares for options, convertible
Slide 106: Leucadia – Tangible Book Value GAAP Reconciliation
Leucadia – Tangible Book Value GAAP Reconciliation Dollar amounts are Leucadia's net carrying amount as of 6/30/17 for each investment, for consolidated subsidiaries equal to their assets less liabilities and non-controlling interest. 101
Slide 107: Jefferies – Bache Adjusted Earnings GAAP Reconciliation
This presentation of Adjusted financial information is an unaudited non-GAAP financial measure. Adjusted financial information begins with information prepared in accordance with U.S. GAAP and then those results are adjusted to exclude the operations of Jefferies’ Bache business. Management believes
Slide 108: Bache adjusted financial information footnotes
Revenues generated by the Bache business, including commissions, principal transaction revenues and estimated net interest revenue, for the presented period have been classified as a reduction of revenue in the presentation of Adjusted financial information. Expenses directly related to the operatio
Slide 109: Jefferies – Tangible Assets and Member's Equity Reconciliation
Jefferies – 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 adjus
Slide 110: National Beef and Berkadia Reconciliations
National Beef – Adjusted EBITDA GAAP Reconciliation Leucadia’s share is $383 million based on its 78.95% ownership. Note: National Beef Adjusted EBITDA represents pre-tax income (loss) exclusive of depreciation and amortization expenses, impairment charges and net interest income/expense, which is a
Slide 111: Idaho Timber and Conwed EBITDA Reconciliation
Idaho Timber – EBITDA GAAP Reconciliation Note: Idaho Timber EBITDA represents pre-tax income exclusive of depreciation and amortization expenses, which is a common metric used by many investors in its industry to evaluate operating performance from period to period. Conwed – EBITDA GAAP Reconciliat
Slide 112: Spectrum Brands – Adjusted EBITDA Reconciliation
Spectrum Brands – Adjusted EBITDA GAAP Reconciliation "TNM" reflects a Trailing Nine Months. Note: Adjusted EBITDA is a metric used by Spectrum Brands' management and frequently used by the financial community which provides insight into an organization's operating trends and facilitates comparisons
Slide 113: Spectrum Brands – Adjusted Free Cash Flow Reconciliation
Spectrum Brands – Adjusted Free Cash Flow GAAP Reconciliation Note: Adjusted free cash flow is useful to both Spectrum Brands' management and investors in their analysis of Spectrum Brands’ ability to service and repay its debt and meet its working capital requirements. In addition, the calculation
Slide 114: Vitesse and Linkem Reconciliations
Vitesse – Cumulative Net Revenues GAAP Reconciliation Note: Vitesse Adjusted EBITDA represents pre-tax loss exclusive of depletion, depreciation, amortization and accretion expenses, interest expense and unrealized losses on commodity derivative instruments, which is a common metric used by many inv
Slide 115: FXCM Adjusted EBITDA and Operating Expenses Reconciliations
FXCM – Adjusted EBITDA and Adjusted Operating Expenses GAAP Reconciliations Adjusted EBITDA and Adjusted Operating Expenses are Non-GAAP financial measures. FXCM management believe these Non-GAAP measures, when presented in conjunction with the comparable U.S. GAAP measure, are useful to investors i
Slide 116: KCG – Cumulative Net Revenues GAAP Reconciliation
KCG – Cumulative Net Revenues GAAP Reconciliation (1) In April 2017, Virtu Financial agreed to acquire KCG at a price of $20.00 per share. The transaction closed on July 20, 2017. (2) Jefferies became a wholly-owned subsidiary of Leucadia on March 1, 2013. 111