Jefferies Financial Group Inc. · NYSE:JEF
Jefferies Financial — Leucadia National — Investor Day (September 2014)
104 slides from Jefferies Financial's investor day presentation, Sep 3, 2014
Slide 1: Leucadia National Corporation 2014 Investor Meeting
Leucadia National Corporation 2014 Inves0tor Meeting September 3, 2014
Slide 2: Note on Forward Looking Statements
Note 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: Leucadia Overview
Leucadia Overview Leucadia National Corporation Parent Capital – $11.5 Billion (1) Common Equity – $10.4 Billion (2) Preferred Equity – $0.125 Billion Parent Debt – $1.0 Billion (1) Financial Services $6.2 Billion Merchant Banking $2.3 Billion Corporate / Liquidity $3.0 Billion Jefferies (100%) $5.5
Slide 4: Momentum Since March 1, 2013
Momentum Since March 1, 2013 n Divestitures: $1.0 billion in cash realized ? Inmet – $732 million ? Premier Entertainment – $250 million ? Global Caribbean Fiber – $33 million (pending close upon regulatory approval) Investments: $1.4 billion of capital invested (1); active pipeline n ? LAM Platform
Slide 5: A Unique Financial Services and Merchant Banking Platform
A Unique Financial Services and Merchant Banking Platform n Financial Services – Our historic sector; post-crisis opportunity ? Jefferies n Continue to prudently build a leading, independent global investment banking firm n Drive market share, margin expansion and earnings growth ? Jefferies Finance
Slide 6: Jefferies
JEFFERIES
Slide 7: Third Quarter 2014
Earnings Update – Third Quarter 2014 Nine months ending August 31, 2014 estimated performance: n Net Revenues: $2,457 million n Pre-Tax Earnings: $414 million n Net Earnings: $256 million n Revenues by Source: Equities $163 Fixed Income $207 Asset Mgmt. and Other $4 Investment Banking: Capital Marke
Slide 8: Third Quarter 2014 (Cont'd)
Earnings Update – Third Quarter 2014 (Cont’d) Equities $818 Fixed Income $938 Asset Mgmt. and Other $27 Investment Banking: Capital Markets $1,045 Investment Banking: Advisory $579 ($ Millions) Last twelve months ending August 31, 2014 estimated performance: n Net Revenues: $3,408 million n Pre-Tax
Slide 9: Jefferies' Momentum and Ongoing Opportunity
Jefferies’ Momentum and Ongoing Opportunity n Record revenues and earnings for the first nine months of the fiscal year demonstrate the strength of Jefferies’ operating model: ?Significant growth across Investment Banking reflects the quality and increasing momentum of Jefferies’ full service global
Slide 10: Revenue and Earnings Growth Since 1990
Revenue and Earnings Growth Since 1990 Net Revenues (1) 144 365 617 1,205 2,192 3,408 $0 $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 $4,000 Net Earnings to Commo n S h areholders (1) 7 29 55 157 224 366 ($600) ($400) ($200) $0 $200 $400Note: All r esults as reported in Jefferies’ public filings.
Slide 11: Revenue and Earnings Growth Post-Financial Crisis
Revenue and Earnings Growth Post-Financial Crisis Net Revenues (1) 1,458 2,192 2,577 3,062 3,040 3,408 $0 $1,000 $2,000 $3,000 $4,000 Ne t E a rnings to Common Shareholders (1) Note: All results as reported in Jefferies’ public filings. (1)Excludes predecessor first quarter ending 2/28/13. Net Reven
Slide 12: Global Full-Service Capabilities
Global Full-Service Capabilities Derivatives Cash Equities Electronic Trading Prime Brokerage / Securities Finance ETFs Convertibles Wealth Management MBS / ABS / CMBS Emerging Markets Investment Grade Rates / Repos Leveraged Credit Municipals Base Metals Listed Futures Precious Metals Forei gn Exch
Slide 13: Global Equities
Global Equities n Jefferies is a leading global equities franchise ?Cash sales and trading across North America, EMEA and Asia Pacific, with major trading hubs in New York, London and Hong Kong ?249 research professionals covering over 1,680 companies ?Leading client-offerings across electronic trad
Slide 14: Global Investment Banking
Global Investment Banking Note: All results as reported in Jefferies’ public filings. (1)Excludes predecessor first quarter ending 2/28/13. Investment Banking Net Revenues for the excluded quarter totaled $288 million. Investment Banking Net Revenues (1) 890 1,123 1,126 1,428 1,624 $0 $500 $1,000 $1
Slide 15: Investment Banking Revenues Since 1990
Net Revenues (1) Investment Banking Revenues Since 1990 9 72 91 495 890 1,624 $0 $250 $500 $750 $1,000 $1,250 $1,500 $1,750 ($ Millions) Predeces sor S uccessor Note: All results as reported in Jefferies’ public filings. (1)Excludes predecessor first quarter ending 2/28/13. Investment Banking Net Re
Slide 16: Select Jefferies Investment Banking Clients
Select Jefferies Investment Banking Clients 02/14 Sole advisor on $1.1bn sale of China assets to Brightoil Petroleum Holdings Ltd. 03/11 Joint advisor on $1.6bn Maverick Basin Joint Venture with Korea National Oil Corp. Enterprise Value: $65bn Description: One of the world’s largest independent oil
Slide 17: Global Fixed Income
Global Fixed Income Fixed Income Net Revenues (1) 245 728 743 1,253 790 938 $0 $500 $1,000 $1,500 Pr ede c essor Successor n Jefferies Fixed Income serves clients across all major cash products in the U.S. and Europe ?550 sales, trading, research and strategy professionals globally ?Focused on provi
Slide 18: Disciplined Approach to Risk
Level 3 Financial Instruments Owned (2) as a Percentage of Financial Instruments Owned Historical Leverage 5.0x 10.0x 15.0x 20.0x $- $10,000 $20,000 $30,000 $40,000 $50,000 T o t a l C a p i t a l G r o s s A s s e t s L e v e r a g e D isciplined Approach to Risk n Our firm is built on a discipline
Slide 19: Upcoming Investor Calendar
Upcoming Investor Calendar n Jefferies Investor Day – Thursday, October 9, 2014 ?Presentations to include: n Firm Management n Finance and Treasury n Equities n Fixed Income n Investment Banking 17
Slide 20: Leucadia Asset Management
Leucadia Asset Management 18
Slide 21: Leucadia Asset Management Overview
Overview n Diversified alternative asset management platform – seeding and developing focused funds managed by distinct management teams n $479 million – substantially all invested in liquid strategies ?Topwater Capital (First-Loss Hedge Fund Investments) ?Structured Alpha (Quantitative Strategies)
Slide 22: Topwater Capital
Topwater Capital Leucadia Asset Management n Initial investment in Q3 2013 n Highly-scalable first-loss hedge fund of funds targeting low volatility and positive returns in all market environments via liquid securities; 9-year track record n Managed by Travis Taylor and Brian Borgia n Returns are be
Slide 23: Structured Alpha Fund
Structured Alpha Fund Leucadia Asset Management n Initiated as trading strategy at Jefferies in 2006; external fund established in 2011; Leucadia initial investment in 2013 n Statistical model to generate systematic alpha via short term trading of global equities and futures n Management team led by
Slide 24: Global Equity Events Opportunity Fund
Global Equity Events Opportunity Fund n Initiated as trading strategy at Jefferies in 2007; external fund established in 2014; Leucadia initial investment in 2014 n Merger arbitrage and other catalyst via liquid equities; 7-year track record n Management team led by Simon Munyard (1) n Consistent po
Slide 25: Mazama Capital Management
Mazama Capital Management n 20+ year track record of long only growth equity investing n Invested in 2014 n Managed by Ron Sauer n Historically strong returns Leucadia Asset Management Q214YTD1 Year2 Year3 Year5 YearSince InceptionMazama Emerging Small Cap Growth1-Dec-08Returns Gross of Fees9.6%18.3
Slide 26: Berkadia
Berkadia the industry of one 24
Slide 27: Berkadia Overview
Overview n Berkadia is a full-service mortgage banking firm focused on providing clients best of class middle market mortgage finance and advisory services n Business Lines: ?Permanent and construction loans ?Investment sales ?Bridge loans ?Master / primary servicing – Low-cost operator n 2nd larges
Slide 28: Industry Update & Outlook
Industry Update & Outlook n Industry experienced slow start to 2014, but positive trend: According to the Mortgage Bankers’ Association: ?Year-to-date, originations are 1% lower than YTD 2013 ?Through the first half of the year, originations for commercial banks and CMBS are ahead of last year’s pac
Slide 29: Servicing Portfolio – Unpaid Principal Balance
Servicing Portfolio – Unpaid Principal Balance (1) ($ Billion) Business Overview n Portfolio Growth: Over 64% of the current servicing portfolio has been added since 2009 (1)Shown net of Special Servicing. 220 186 156 127 97 88 7 15 53 112 125 5 10 17 28 32 $220 $198 $181 $197 $237 $245 0 50 100 150
Slide 30: Financial Performance
Financial Performance Cash Earnings ($ Millions) (1) $107 $135 $153 $71 $73 $0 $25 $50 $75 $100 $125 $150 $175 2011 2012 2013 June 2013 YTD June 2014 YTDLoan Originations ($ Billions) Pre-Tax Margin (% of Revenue) Pre-Tax Income ($ Millions) $5.2 $9.5 $10.4 $5.6 $3.7 $0 $2 $4 $6 $8 $10 2011 2012 201
Slide 31: Recent Developments
Recent Developments Originations and Fees: Berkadia followed the industry’s slow start to 2014 with origination volume of $3.7 billion in the first half of 2014 versus $5.6 billion in the same period of 2013 (which included a single deal of $1.1 billion). Despite this lower origination volume, Berka
Slide 32: Strategic Priorities
Strategic Priorities n Increase production ?Add additional mortgage bankers and investment sales professionals ?Grow market share through the maturity wave n “Servicer’s Servicer” ?Berkadia Commercial Real Estate Services has the capabilities and expertise to substantially improve the profitability
Slide 33: National Beef
“ N ti ] B f . National DECI.
Slide 34: Business Overview
Business Overview n National Beef processes ~3 million fed cattle per year representing ~12.5% market share ?2 processing plants strategically located in Liberal and Dodge City, KS ?Primary competitors: Tyson, Cargill, JBS ?Export beef and beef by-products to more than 20 countries n Beef processing
Slide 35: Industry Trends
n Heifer and beef cow slaughter have been declining recently. While this has put pressure on industry margins in the short run, in the longer run we believe this may lead to an increase in the number of fed cattle available for slaughter n The U.S. has historically been a net importer of beef. Due t
Slide 36: Financial Performance
Profit from Operations ($ Millions) (1, 2) Revenue ($ Billions) (1) Financial Performance n The beef processing industry is cyclical and working capital intensive. However, it has significant barriers to entry and offers attractive prospects for free cash flow generation over the cycle n Given cattl
Slide 37: Recent Financial Performance
Profit from Operations ($ Millions) (1) Revenue ($ Billions) Recent Financial Performance n 2014 YTD financial results have been negatively impacted by lower slaughter numbers (down approx. 6% vs. 2013), no improvement in historically low industry margin conditions, and lower volumes and margin on c
Slide 38: Recent Developments
Recent Developments n Retrofit and expansion of wet blue tanning facility is complete. Ramp up to target volume is on pace n Closure of our Brawley, CA beef processing facility is complete and is expected to enhance operating results n Global protein demand follows the growth of the middle class in
Slide 39: Strategic Priorities
Strategic Priorities n Focus on additional value-added production ?Our 3 further processing plants have significant capacity available for growth ?Ongoing dialogue with retailer and food service providers regarding consumer-ready, portion-controlled and ready-to-cook product lines n Drive volume and
Slide 40: Harbinger Group Inc.
Haxrbinger Group Inc.
Slide 41: Company Overview
Company Overview (1)Source: Harbinger’s August 8th, 2014 3rd Quarter Conference Call presentation. n NYSE-listed diversified holding company (NYSE: HRG) that operates in four business segments: ?Consumer Products – Spectrum Brands (NYSE: SPB, ~59% ownership (1)) ?Insurance – Fidelity & Guaranty Life
Slide 42: Key Ownership Details
Key Ownership Details n Date of Initial Investment: September 2013 n Cost: $411 million n Book Value at 06/30/14: $528.3 million n Ownership: 20.1% n Joseph Steinberg and Andrew Whittaker serve on Harbinger’s Board of Directors 40
Slide 43: Sum of the Parts Valuation
Sum of the Parts Valuation (Dilutive) without AOCI (1) (1)Source: Sum of the Parts Valuation per Harbinger’s August 8th, 2014 3rd Quarter Conference Call presentation. Harbinger’s valuation of Spectrum Brands is based on a volume weighted average closing price of $80.88 for the 20 day trading period
Slide 44: Financial Performance
Financial Performance (1)Source: Consumer financials per Harbinger’s February 2014 Company Overview. FY 2012 and FY 2013 are pro forma as if Hardware & Home Improvement Group was acquired at the beginning of the respective periods. Pro Forma Net Sales and Adjusted EBITDA are non-GAAP measures. See p
Slide 45: Vitesse
Vitesse
Slide 46: Management Biographies
Management Biographies n Bob Gerrity – CEO ?Started in the oil business in 1982 ?Established Gerrity Oil and Gas Corporation (GO) with $30,000 and took it public in 1990 ?GO became a low cost producer in the Wattenberg field and pioneered the “manufacturing” approach of converting reserves into cash
Slide 47: Company Overview
Company Overview n Formed in May 2014 ?Leucadia has funded $44 million in acquisitions to date n Millennium—$35 million (May 2014) n Other—$9 million (May-July 2014) n EnerVest (pending)—$205 million (PSA signed August, anticipate closing September 2014) n Non-operating owner of oil and gas properti
Slide 48: The Bakken
The Bakken n The Bakken is the largest continuous oil formation in the U.S. n Covers 20,000 square miles and contains approximately 30 billion barrels of recoverable oil n 189 rigs actively running n 14,000+ potential drilling locations = $119+ billion in potential drilling capital n 2,000 wells dri
Slide 49: Bakken Evolution 2008
Bakken Evolution 2008
Slide 50: Bakken Evolution 2013
Bakken Evolution 2013
Slide 51: Acreage Map
Acreage Map n Vitesse owns over 23,000 net acres in the core (1) n Operated by quality independents and leading Bakken operators including EOG, Whiting, Oasis, Hess and Continental n Actively leasing in the 4 most prolific counties: Mountrail, Williams, McKenzie and Dunn n 900+ producing wells n 250
Slide 52: Strategy
Strategy n Aggregate assets in the core of the Bakken n Optimize portfolio of assets. Add to desired core acreage and divest fringe n Increasing cash flow from new well development over next 10 years n Hedge flowing production when appropriate n Selectively sell assets when appropriate 50
Slide 53: Vitesse Today
Vitesse Today n Over 23,000 net acres predominantly in the core Bakken counties of Williams, McKenzie, Mountrail and Dunn, North Dakota n Diversified exposure to high quality operators including EOG, Whiting, Oasis, Hess and Continental n Strong cash flow from over 1,800 Boe/d of net production (1)
Slide 54: HomeFed Corporation
HOMEFED CORPORATION
Slide 55: Company Overview
Company Overview n HomeFed is a public company (stock ticker: “HOFD”) that develops and owns residential and mixed-use real estate projects in California, Maine, New York, Virginia, South Carolina and Florida. HomeFed is 64% owned by Leucadia National Corporation n Activities include: ?Acquisition o
Slide 56: Property Locations
Rampage Vineyard Pacho San Elijo Hills SweetBay Ashville Park Renaissance Plaza Brewster Point & Northeast Point The Market Common Fanita Ranch Otay Ranch Property Locations 54
Slide 57: Market Outlook
Market Outlook Affordability Better than Average Relatively underpriced market based on the Burns Index of household income to annual home ownership costs ~2.5 today vs. a 5.0 benchmark in a neutral market Housing cost-to-income ratio = 28% vs. the 32% historical median Demand Exceeds Supply 2.2 mil
Slide 58: Otay Ranch (Chula Vista, CA)
n Otay Ranch (Chula Vista, CA) ?2,800 acres (two urban villages totaling 700 acres & 2,100 acres of open space) ?Entitled for 6,050 units and 1.8 million square feet of commercial development HomeFed Owned Parcels Portfolio Overview 56
Slide 59: Fanita Ranch (Santee, CA)
n Fanita Ranch (Santee, CA) ?2,600 acres of unentitled property ?Entitlement processing expected to commence before year end 57
Slide 60: Ashville Park (Virginia Beach, VA)
n Ashville Park (Virginia Beach, VA) ?450 acres—499 dwelling units ?270 unsold dwelling units 58
Slide 61: SweetBay (Panama City, FL)
n SweetBay (Panama City, FL) ?700 acres entitled for 3,200 dwelling units, 700,000 square feet of commercial development and a 117 slip marina ?Established charter school opened new campus for the fall of 2014 59
Slide 62: The Market Common (Myrtle Beach, SC)
n The Market Common (Myrtle Beach, SC) ?Existing 390,000 square feet of office and retail with 195 short and long-term apartments ?Residential land entitled for up to 572 additional dwelling units 7 60
Slide 63: San Elijo Hills (San Marcos, CA)
n San Elijo Hills (San Marcos, CA) ?2,000 acres – 3,500 dwelling units ?178 unsold dwelling units 61
Slide 64: Renaissance Plaza (Brooklyn, NY)
n Renaissance Plaza (Brooklyn, NY) ?Existing 850,000 square foot office building, 888 stall garage, and 665 room hotel ?Office building and garage are owned 49%(1) by HomeFed ?Marriott at the Brooklyn Bridge is owned 25.80% by HomeFed (1)Ownership to increase to 61.25% upon receipt of certain approv
Slide 65: Strategic Priorities
Strategic Priorities n Continue to opportunistically acquire additional development projects throughout the U.S. Project Status Unentitled Land Planning / Entitlement Land Development Active Lot Sales Operating Asset Otay Ranch Fanita Ranch Pacho Ashville Park SweetBay The Market Common San Elijo Hi
Slide 66: Financial Performance
n Closed on real estate assets end of 1Q 2014 n Revenue can vary significantly from year to year depending on finished lot availability in conjunction with builder demand n 2014 revenues lower due to timing of sales. Net earnings were negatively impacted by expenses associated with Leucadia transact
Slide 67: Linkem
aN linkem internet revolution
Slide 68: Overview and Ownership
Overview and Ownership Company Overview n Fast-growing fixed wireless broadband provider in Italy n Nationwide network deployment with base stations, fiber exchange points, points of sale and customers in every region ?As of 06/30/14, 1,059 base stations deployed reaching approximately 35% of the po
Slide 69: Subscriber Growth
Subscriber Growth Customer Base and Growth 03570105140175210Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q22011 2014 Subscribers (000’s) 2012 2013 History of Attracting New Customers n 117% annualized subscriber growth rate since Leucadia’s initial investment in July 2011 n 201,399 subscribers as of 06/30/14 67
Slide 70: Market Overview & Key Market Trends
Market Overview & Key Market Trends n Linkem provides a residential wireless broadband service with a compelling combination of speed and price n Italians have poor broadband alternatives ?Few cable television systems ?Expensive and substandard DSL networks ?Limited and slow fiber deployment n Attra
Slide 71: Italian Broadband Services and Download Speeds
Italian Download Speeds Have Consistently Grown at a Slower Rate than ROW (2) The Current State of Italian Broadband Services… No Cable Modems in Italy (1) 010203040ItalyUSAGermanyUKFranceFiberCableOther (Primarily DSL)Italy Ranks 95th Worldwide in Download Speeds (2) (1)Source: OECD, Fixed and wire
Slide 72: Providing a High Quality Service at a Low Cost
Providing a High Quality Service at a Low Cost (1) …Creates Strong Demand for a High Quality Provider Linkem’s Value Proposition n With LTE, Linkem provides an exceptional combination of speed and price n Large embedded base of subscribers and limited frequency will make it difficult for mobile oper
Slide 73: Strategic Priorities
Strategic Priorities n Maintain subscriber growth on the existing base station footprint n Complete the LTE trial and prepare for the LTE commercial launch at the end of the year n Pursue strategic and partnership opportunities in the rapidly shifting Italian telecom marketplace n Ready the company
Slide 74: Strategic Priorities
Strategic Priorities ion Maintain subscriber growth on the existing base station footprint Complete the LTE trial and prepare for the LTE commercial launch at the end of the year Pursue strategic and partnership opportunities in the rapidly shifting Italian telecom marketplace Ready the company to a
Slide 75: Garcadia Overview
Overview n A top 15 U.S. dealership group ?3 clusters, 22 dealerships—11 domestic brands, 11 foreign n Iowa – 5 dealerships n Texas – 8 dealerships n California – 9 dealerships ?~2,000 employees n Emphasis on changing customer experience to be “UNCAR-LIKE” ?Leverage digital channels to grow sales vo
Slide 76: Business Overview
Business Overview Profit Center emphasis includes Service and Used Car departments n Service: ?Become one stop shop for customers; maintenance and repairs ?Service traffic is up 12.3% year-over-year; Service gross is up 14.6% year-over-year n Used Car Sales: ?Embrace technology to accelerate invento
Slide 77: Industry Update & Outlook
Industry Update & Outlook n Sales reached an 8-year high in June with SAAR (Seasonally Adjusted Annual Rate) of 16.9 million new units ?Customer demand remains high n Average age of vehicle on road at all time high of 11.4 years n Interest rates low, used car residuals strong n Market is large and f
Slide 78: Financial Performance
Financial Performance (1)Represent combined amounts for all Garcadia dealership holdings, not just Leucadia’s share. (2)Represents Leucadia’s share of cash distributions and rent paid by Garcadia for land owned by Leucadia. (3)Represents Leucadia’s net carrying amount for Garcadia (excluding land) a
Slide 79: Strategic Priorities
Strategic Priorities n Be different – Create lifetime customers ?Deliver an unsurpassed customer experience ?Empower employees via in store ‘Champions’ to lead the creation of a better car ownership experience ?Drive down turnover n Be first to embrace new technology – Improve operating efficiency ?
Slide 80: Strategic Priorities
Strategic Priorities G Be different — Create lifetime customers Deliver an unsurpassed customer experience Empower employees via in store ‘Champions’ to lead the creation of a better car ownership experience Drive down turnover Be first to embrace new technology - Improve operating efficiency Exceed
Slide 81: Conwed Overview
n Leading manufacturer of extruded, oriented and knitted plastic netting used in a variety of applications, including agriculture, automotive, building & construction, filtration, hygiene, medical, packaging, etc. ?Operates 5 manufacturing facilities on 2 continents and has a global distribution net
Slide 82: Netting Capabilities
Netting Capabilities CONTAINMENT GRIP LAMINATION PACKAGING PROTECTION REINFORCEMENT SEPARATION STRETCH VALUE ADDED 81
Slide 83: Industry Update and Outlook
n Raw material costs are expected to continue on an upward trend which began in 2002, negatively impacting margins. Selling price increases planned for late fourth quarter in certain markets will help offset some of the negative impact in 2015 n Modest growth expected from increased building and con
Slide 84: Financial Performance
Financial Performance n The 2014 decrease in margins is primarily driven by increased resin costs FYE December 31,YTD June 30,($ in 000’s)2011201220132014Revenue85,961$ 89,357$ 105,355$ 57,933$ % GrowthNA4.0%17.9%Pre-Tax Income5,916$ 11,453$ 15,329$ 6,255$ % Margin6.9%12.8%14.5%10.8% 83
Slide 85: Recent Developments
n Acquisition of Filtrexx and Weaver Express in Q1 and Q3 ?Combined annual revenues of $35 million ?Superior product replacement for silt fence in the sediment control area ?Control of supply chain from production of yarn to installation of filter sock ?Future growth from: n Geographic expansion int
Slide 86: Strategic Priorities
n Drive organic growth ?Continued co-development with customers ?New products, markets and applications for Conwed’s core technology ?Geographic market expansion n Minimize lost business n Relentlessly improve customer service levels n Develop Filtrexx/Weaver business Strategic Priorities 85
Slide 87: Strategic Priorities
Strategic Priorities Drive organic growth Continued co-development with customers New products, markets and applications for Conwed’s core technology Geographic market expansion Minimize lost business Relentlessly improve customer service levels Develop FiltrexvWeaver business
Slide 88: Idaho Timber Overview
Overview n Manufacturer and distributer of wood products including: ?Remanufacturing dimension lumber ?Remanufacturing, bundling and bar coding of home center boards and related products ?Primary manufacturing of pine dimension lumber, pine decking and cedar products n 7 plants and 3 sawmills locate
Slide 89: Business Overview
Business Overview n Remanufacturing Segment ?Purchase lower-value dimension lumber and remanufacture to add value and develop tallies that allow us to provide just-in-time deliveries of specified products to our customers ?Customer base consists primarily of pro dealers and lumber yards n Home Cente
Slide 90: Industry Update & Outlook
Industry Update & Outlook?Since 2007, the recession and U.S. housing market collapse caused significant headwinds?In 2013, the housing industry saw signs of life and Idaho Timber delivered its best performance since 2007?YTD 2014, the housing industry continues to improve at a moderate pace. Idaho T
Slide 91: Financial Performance
Financial Performance 300,000 310,000 320,000 330,000 340,000 350,000 360,000 370,000 380,000201120122013Shipments in MBF ShipmentsFYE December 31,YTD June 30,($ in 000’s)2011201220132014Revenue159,026$ 163,513$ 205,407$ 124,631$ % GrowthNA2.8%25.6%Pre-Tax Income(3,787)$ 6,397$ 9,599$ 7,997$ % Margi
Slide 92: Recent Developments
Recent Developments n The remanufacturing segment is experiencing additional supply opportunities due to industry wide production increases and moderating demand by the Chinese for certain lumber items n We expect continued market volatility which should create strategic purchasing opportunities to
Slide 93: Strategic Priorities
Strategic Priorities n Primary Mill: ?Develop production capabilities and market to achieve consistent production results on a full one-shift capacity basis n Boards: Return to consistent profitability by 2015 n Remanufacturing: Drive production efficiencies by increasing shipments over 2013 n Busin
Slide 94: Strategic Priorities
Strategic Priorities IDAHO TIMBER Primary Mill: Develop production capabilities and market to achieve consistent production results on a full one-shift capacity basis Boards: Return to consistent profitability by 2015 Remanufacturing: Drive production efficiencies by increasing shipments over 2013 B
Slide 95: Notes and Disclosures to Leucadia Overview
Note: Dollar amounts are Leucadia’s net carrying amount for each investment, for consolidated subsidiaries equal to their assets less liabilities.1)Adjusted for assumed redemption of 2015 8.125% Sr. Notes using Parent Company Cash.2)Includes $2.8 billion of goodwill and intangibles.3)Investment comm
Slide 96: Notes and Disclosures to Leucadia Overview
Note: Dollar amounts are Leucadia’s net carrying amount for each investment, for consolidated subsidiaries equal to their assets less liabilities. 1)Adjusted for assumed redemption of 2015 8.125% Sr. Notes using Parent Company Cash. 2)Includes $2.8 billion of goodwill and intangibles. 3)Investment c
Slide 97: Leucadia – Cash and Investments and Parent Debt GAAP Reconciliations
Leucadia – Cash and Investments and Parent Debt GAAP Reconciliations Reconciliation of Cash and Investments Reconciliation of Parent Debt ($ millions)Available Cash and Investments (GAAP) at June 30, 20142,141.1$ Assumed Redemption of 8.125% Senior Notes due 2015(457.1) Pending Acquisition of EnerVe
Slide 98: Long-Term Capital Raised Since January 1, 2013
Leucadia, its Subsidiaries and its Affiliates – Long-Term Capital Raised Since January 1, 2013 (1) (1)US Dollar conversion as of Jefferies second quarter end, May 31, 2014. Long-Term Capital Raised($ millions)01/01/13—06/30/14Leucadia 5.50% Senior Notes due 2023750.0$ Leucadia 6.625% Senior Notes du
Slide 99: Jefferies – GAAP Reconciliation
Jefferies – GAAP Reconciliation Leverage Ratio Reconciliation May 31,August 31,November 30,February 28,May 31,($ Millions)20132013201320142014Total Assets38,938$ 38,830$ 40,177$ 43,440$ 43,610$ Goodwill and Acquisition Accounting Fair ValueAdjustments on the Merger with Leucadia(1,957) (1,957) (1,95
Slide 100: Berkadia – GAAP Reconciliation
Berkadia – GAAP Reconciliation Note: Berkadia believes Cash Earnings is useful to investors to understand and compare operating results for its servicing business between periods, because it eliminates the impact of certain non-cash items from pre-tax earnings, principally amortization, impairment a
Slide 101: National Beef – GAAP Reconciliation
FYE August,($ Millions)20112012201320132014Pre-Tax Income (GAAP)261.6$ 59.0$ (42.4)$ 6.8$ (21.5)$ Interest Expense / (Income), net11.7 12.4 12.3 6.5 6.9 Depreciation & Amortization51.2 83.1 88.5 43.6 42.0 Impairment of Long-Lived Assets— 63.3 — Profit from Operations (Non-GAAP)324.5$ 154.5$ 121.7$ 5
Slide 102: Harbinger – Consumer GAAP Reconciliation
Harbinger – Consumer GAAP Reconciliation Note: Totals may not add due to rounding. Source: Harbinger Group, Inc. February 2014 Company Overview. (1)Reflects net sales and earnings of Hardware and Home Improvement Group from the beginning of the applicable period through December 29, 2012. This adjus
Slide 103: Harbinger – Insurance and Energy GAAP Reconciliations
Harbinger – Insurance and Energy GAAP Reconciliations Note: Totals may not add due to rounding. Source: Harbinger Group, Inc. 10-K for the fiscal period ended 09/30/13. FYE September 30,($ Millions)201120122013Insurance—Adjusted Operating Income Reconciliation:Reported Operating Income(42)$ 160$ 523
Slide 104: Leucadia National Corporation 2014 Investor Meeting
Leucadia National Corporation 2014 Investor Meeting September 3, 2014