Jefferies Financial Group Inc. · NYSE:JEF
Jefferies Financial — Investor Day (October 2020)
83 slides from Jefferies Financial's investor day presentation, Oct 14, 2020
Slide 1: 2020 Investor Meeting
Exhibit 99 Jefferies Financial Group Inc. 2020 Investor Meeting Thursday, October 15, 2020Exhibit 99 Jefferies Financial Group Inc. 2020 Investor Meeting Thursday, October 15, 2020
Slide 2: Important Disclosures
Important Disclosures 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
Slide 3: 2020 Investor Meeting Agenda
2020 Investor Meeting Agenda Start Time Session Speaker(s) Rich Handler, CEO 9:00 AM Overview Brian Friedman, President Matt Larson, CFO, Jefferies Group 9.30 AM Financial Review Teri Gendron, CFO 9:50 AM Investment Banking Chris Kanoff, Acting Global Head of Investment Banking 10:10 AM Equities Pet
Slide 4: Net Revenues and Earnings Since 1990
Net Revenues and Earnings Since 1990 ($ Millions) Predecessor Successor (1) Jefferies Group Net Revenues $4,336 Investment Banking Fixed Income $4,000 Equities Asset Management & Other $3,000 $2,395 $2,177 $2,000 $1,205 $1,000 $617 $365 $144 - (1)(2) Jefferies Group Net Earnings $597 $600 $240 $300
Slide 5: Jefferies Financial Group – Our Strategy
Jefferies Financial Group – Our Strategy Our strategy is straightforward and has been consistently executed § Continue to drive growth in our core business of Investment Banking, Capital Markets and Asset Management ─ Maintain focus on clients, culture and long-term value creation ─ Invest in people
Slide 6: Evolution to a Pure Financial Services Firm
Evolution to a Pure Financial Services Firm 2016 2017 2018 2019 2020 YTD 2016 Jefferies Group began latest phase of Investment Banking hiring and expansion Jefferies Group Fixed Income balance sheet reduced and business repositioned 2017 Sold Conwed 2018 Sold 48% and deconsolidated National Beef Sol
Slide 7: Transformation On Track
Transformation On Track (1) % of Tangible Book Value 100% 2% 7% 80% 26% 51% 60% 40% 67% 47% 20% - Apr-18: Sale of National Beef Accelerates Q3 2020 Transformation Investment Banking, Capital Markets & Asset Management Merchant Banking Cash and Other See pages 66-71 at the back of this presentation f
Slide 8: Growth and Momentum
Growth and Momentum § In the first nine months of fiscal 2020, we have gained market share across most of our targeted products and regions, maintaini ng the long- term momentum we have developed over many years – Investment Banking capabilities continue to broaden, as we strengthen and expand our t
Slide 9: High Double Digit Growth in Investment Banking Revenues
High Double Digit Growth in Investment Banking Revenues (1) Investment Banking Net Revenues ($ Millions) Predecessor Successor $2,000 $1,876 $1,600 $1,439 $1,200 $890 $800 $495 $400 $72 $91 $9 - 1990 1995 2000 2005 2010 2015 LTM Q3'20 See pages 66-71 at the back of this presentation for endnotes. 9H
Slide 10: Continued Gains in Global Advisory
Continued Gains in Global Advisory Global Sell-Side M&A Global Sell-Side M&A < $5 Billion Global Sell-Side M&A < $1 Billion 2020 YTD (as of 8/31/20) 2020 YTD (as of 8/31/20) 2020 YTD (as of 8/31/20) Rank Investment Bank Fee Market Share Rank Investment Bank Fee Market Share Rank Investment Bank Fee
Slide 11: Strength in Equity and Leveraged Finance
Strength in Equity and Leveraged Finance Equity Underwriting: U.S. Equity Underwriting: Europe LTM Q3 2020 LTM Q3 2020 Rank Investment Bank Fee Market Share Rank Investment Bank Fee Market Share Goldman Sachs 14.5% 1 1 JPMorgan 12.7% 2 JPMorgan 12.6% 2 Goldman Sachs 11.3% BofA Securities 9.9% Morgan
Slide 12: Steady Gains Across Capital Markets
Steady Gains Across Capital Markets Capital Markets Equities Fixed Income Revenues and Market Share Most Helpful Execution Brokers During % Change – LTM Q3’20 vs. LTM Q1’16 (3) COVID-Related Market Crisis ($ Billions) (2) 2015 2016 2017 2018 2019 1H'20 1 Equities & FICC 636% $119.5 $118.7 $110.2 $11
Slide 13: Growth and Momentum at Leucadia Asset Management
Growth and Momentum at Leucadia Asset Management § Strong performance – as evidenced by third quarter and YTD results § New products / offerings to support ongoing growth of assets under management (AUM). Currently $22 billion of AUM across (1) JFG including $8 billion in Jefferies Finance asset man
Slide 14: Initiatives Underpinning Future Growth: Talent Development
Initiatives Underpinning Future Growth: Talent Development Two global, multi year initiatives – aimed at further developing our capabilities – are foundational to Jefferies’ continued expansion and improvement Talent Development Why is this an imperative?§ Continued growth drives increased demand fo
Slide 15: Initiatives Underpinning Future Growth: Leveraging Technology
Initiatives Underpinning Future Growth: Leveraging Technology Two global, multi year initiatives – aimed at further developing our capabilities – are foundational to Jefferies’ continued expansion and improvement Leveraging Technology Why is this an imperative?§ Technology drives efficiency, monetiz
Slide 16: 40% of Tangible Capital Returned to Shareholders in Last 2.5 Years
40% of Tangible Capital Returned to Shareholders in Last 2.5 Years §Delivering shareholder return through continued share repurchases and distributions (1) ─ $3.1 billion, or 40%, of starting Tangible Book Value returned since April 1, 2018 ─ $743 million returned to shareholders in first nine month
Slide 17: Share Count Reduced by 25%
Share Count Reduced by 25% §Repurchases over the last 2.5 years have reduced fully diluted shares outstanding by 25%, even after 9.3 million shares issued in HomeFed transaction (1) Fully Diluted Shares Outstanding (Millions) 380 350 320 290 260 230 200 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 201
Slide 18: Financial Review
Financial ReviewFinancial Review
Slide 19: Jefferies Group – Operating Results
Jefferies Group – Operating Results ($ Millions) Jefferies Group LLC Fiscal Year Ended Last Twelve Months 11/30/19 8/31/20 Advisory $767 $892 Equity Underwriting 362 667 Debt Underwriting 407 438 Total Underwriting 769 1,104 Other Investment Banking (15) (120) Total Investment Banking 1,522 1,876 Eq
Slide 20: Jefferies Group – Balance Sheet and Liquidity Update
Jefferies Group – Balance Sheet and Liquidity Update (as of 8/31/20) § Total Assets: $46.6 billion Low Leverage and (1) § Tangible Gross Leverage: 9.6x Liquid Inventory § Level 3 Financial Instruments Owned as % of Total Inventory: 2.5% § Global Excess Liquidity: $8.1 billion Ample Excess Liquidity
Slide 21: Jefferies Group – Liquid Balance Sheet, Modest Leverage
Jefferies Group – Liquid Balance Sheet, Modest Leverage ($ Millions) Jefferies Group LLC Balance Sheet as of 8/31/20 Assets Liabilities and Equity Cash & Cash Equivalents $6,750 Short-Term Borrowings $805 Cash & Securities Segregated 986 Financial Instruments Sold, Not Yet Purchased 10,995 Financial
Slide 22: Jefferies Financial Group – Operating Results
Jefferies Financial Group – Operating Results ($ Millions) Jefferies Financial Group Inc. and Subsidiaries Fiscal Year Ended Nine Months Ended (1) (1) 11/30/19 8/31/19 8/31/20 Investment Banking and Capital Markets $3,036 $2,275 $3,452 Asset Management 85 95 146 Merchant Banking 735 392 533 Corporat
Slide 23: Jefferies Financial Group – Balance Sheet Overview
Jefferies Financial Group – Balance Sheet Overview ($ Millions) Jefferies Financial Group Inc. and Subsidiaries Balance Sheet as of 8/31/20 Assets Liabilities and Equity Cash and Cash Equivalents $8,427 Short-Term Borrowings $805 Cash and Securities Segregated 986 Financial Instruments Sold, Not Yet
Slide 24: Jefferies Financial Group – Liquidity Metrics
Jefferies Financial Group – Liquidity Metrics (as of 8/31/20) § Total Assets: $51.8 billion Consolidated Balance Sheet and Leverage § Parent Company Debt-to-Equity Ratio: 0.11x § Target a parent-level liquidity reserve that provides 24 months of coverage for cash requirement ─ Targeted Reserve: $575
Slide 25: Realizing Value From the Merchant Banking Portfolio
Realizing Value From the Merchant Banking Portfolio (1) Remaining Merchant Banking Portfolio – As of 5/31/20 (Adjusted) § As we have realized the value of the portfolio through ($ Millions) profitable exits, Merchant Banking has become a less Estimated Fair Market Value significant portion of Jeffer
Slide 26: Investment Banking
Investment BankingInvestment Banking
Slide 27: Investment Banking – Overview
Investment Banking – Overview § Jefferies Investment Banking is a leading advisor and underwriter to our clients globally § 985 investment bankers with deep sector expertise and extensive experience across major industry verticals § On-the-ground presence in 14 countries across the world § Approxima
Slide 28: Specialized MD Coverage of Over Industry Sectors and Growing
Specialized MD Coverage of Over 80 Industry Sectors and Growing TMT Industrials Healthcare Energy § Communications Equipment§ Automotive Supply§ Acute and Behavioral Healthcare§ Oil & Gas Downstream § Development & Operations Software§ Automotive Aftermarket§ Biotechnology§ Oil & Gas Exploration § E
Slide 29: Investment Banking – Performance Update
Investment Banking – Performance Update § Fiscal year to date 2020 Investment Banking revenues have reached record nine month levels as a result of record advisory and equity capital markets revenues – 40% increase compared to the same period last year, against the backdrop of a 17% decline in M&A f
Slide 30: Jefferies M&A Franchise
Jefferies M&A Franchise § M&A is our largest business within Investment Banking Jefferies Global Advisory Revenue ($ Millions) – Over 40% of investment banking revenue in LTM Q3 2020 $892 § Larger deals now represent the majority of our M&A revenue $767 $697 – Closed or signed 50 $1 billion+ M&A tra
Slide 31: Jefferies Equity Underwriting Franchise
Jefferies Equity Underwriting Franchise § Record results for Equity Underwriting for LTM Q3 2020 and nine months ended Jefferies Global Equity Underwriting Revenue ($ Millions) August 31, 2020 § Nine months ended August 31, 2020 revenues more than doubled compared to $667 $561 the same period in 201
Slide 32: European and Asia Pacific Investment Banking
European and Asia Pacific Investment Banking Performance in Europe Performance in Asia Pacific § We have invested heavily in European Investment Banking for § For LTM Q3 2020, Asia Investment Banking achieved record the last several years and now have a sizable footprint 12 month revenues § Achieved
Slide 33: Investment Banking – Strategic Priorities
Investment Banking – Strategic Priorities Capitalize on Leverage the Monetize the large Capitalize on significant revenue revenue potential number of M&A and our significant opportunities from of our extensive Equity Underwriting momentum recently entered fee and deep sector opportunities in SPACs p
Slide 34: Investment Banking – Sector, Product and Regional Expansion
Investment Banking – Sector, Product and Regional Expansion § Since the beginning of fiscal 2018, we have expanded our Managing Director footprint across sectors, products and geographies Coverage: Sector, Sponsor and Regions Sector Sponsor Regions US Europe Asia § Banks§ Capital Goods§ Technology –
Slide 35: Monetizing Our Leveraged Finance Relationships
Monetizing Our Leveraged Finance Relationships th th § In LTM Q3 2020, we ranked 6 in leveraged loans for single B issuers and ranked 4 since the breakout of the COVID-19 pandemic (COVID), reflecting our success in providing creative solutions to a large number of clients facing liquidity issues § I
Slide 36: Capitalizing on Our Significant Momentum in SPACs
Capitalizing on Our Significant Momentum in SPACs nd (1) SPACs are the 2 largest IPO § In the first nine months of fiscal 2020, SPAC IPOs generated $1.6 billion of upfront and deferred IPO fees with 84 SPAC IPOs completed fee pool in the United States § Selling to a SPAC can represent a viable alter
Slide 37: Jefferies Finance – Overview
Jefferies Finance – Overview § Jefferies Finance (“JFIN”), our corporate lending joint venture with Massachusetts Mutual Life Insurance Company, continues to operate prudently Total Arranged Deal Volume ─ Established in 2004, JFIN has demonstrated growth and resilience across ($ Billions) multiple b
Slide 38: Equities
Equities Jefferies
Slide 39: Overview of Our Global Equities Franchise
Overview of Our Global Equities Franchise Key Points Global Offering and Capabilities § Jefferies is a leading global institutional Research Americas Cash EMEA Cash Asia Pacific Cash Electronic Trading Prime Brokerage equities franchise across both advisory and execution capabilities Business Servic
Slide 40: A Diversified, Sustainable and Efficient Franchise
A Diversified, Sustainable and Efficient Franchise Our Franchise Execution Our Result Client-Focused 1 Created a unique, differentiated and multi -channel advisory platform 2 Invested in the Asia Pacific product across advisory & execution 3 Grew our Non-Cash offering and client penetration Diversif
Slide 41: Differentiated Advisory & Cutting Edge Execution
Differentiated Advisory & Cutting Edge Execution 2020 Survey of Most Helpful Execution Brokers Our Global Equity Research Coverage Growth (3) During COVID-Related Market Crisis Greenwich Associates (1) Number of Stocks Covered 3,250 2,950 2,831 2,825 1 2,719 Morgan Stanley 2 Goldman Sachs 3 JPMorgan
Slide 42: Competitive Position and Market Share
Competitive Position and Market Share (1) (2) Select Global Rankings Market Share across Products & Regions th +4 Ranks to 8 3.4% 2020 Global Execution Global Advisory Global Cash 2.1% 2015 Most Helpful Execution Broker during Global Small-Cap Equity Research Coverage COVID-Related Market Crisis Bre
Slide 43: Equities Revenue Growth and Business Expansion Strategy
Equities Revenue Growth and Business Expansion Strategy Global Equities Revenue Growth over the Past 5 Years Continuing Growth Opportunities (1) Equities Net Revenues S&T Thought Cross-Border Distribution Leadership Differentiated Equity Research Breadth Events 143% Growth Global Since 2016 Advisory
Slide 44: Regional and Product Diversification
Regional and Product Diversification (1) Percent of Equities Net Revenues By Region By Product 20% 27% 38% 51% 54% 59% 80% 73% 62% 49% 46% 41% FY 2012 FY 2015 LTM Q3 2020 FY 2012 FY 2015 LTM Q3 2020 Americas International High Touch Cash Non High Touch Cash See pages 66-71 at the back of this presen
Slide 45: Equities – Strategic Priorities
Equities – Strategic Priorities Partner With Clients to Grow Align Businesses Globally Drive Efficiency & Returns and Diversify Businesses Continue growing Non-Cash businesses & Continue monetizing investment Continue to build out focus on new business expansion in Asia Pacific financing capabilitie
Slide 46: Fixed Income
Fixed IncomeFixed Income
Slide 47: Fixed Income – Our Business Evolution
Fixed Income – Our Business Evolution § Strong performance in all trading businesses in all regions across macro and credit § Diversified growth in revenues across our breadth of products § Continued emphasis on liquid, high-turnover inventory Sustained revenue growth across regions and products on
Slide 48: Pushing the Opportunity Curve Higher
Pushing the Opportunity Curve Higher § Maintained discipline on risk and capital through volatile period§ Focused on hires in key areas § Emphasized liquid inventory and balance sheet velocity§ Improved product and regional diversification § Continued our relentless commitment to clients Record nine
Slide 49: Strong Client Franchise
Strong Client Franchise Improvements in our client franchise over the past five years have led to more consistent revenues and a higher return on cap ital Market Share Growth Strong Forward Expansion of our Top 10 Market Share grew from Momentum Footprint two to six products 2015 2019 / 2020 >25% In
Slide 50: Fixed Income - Strategic Priorities
Fixed Income - Strategic Priorities Partner With Clients to Grow Align Businesses Globally Drive Efficiency & Risk-Adjusted Returns and Diversify Businesses Extend core strengths to Europe and Asia: Active risk management Quality share vs. market share § HY and Distressed § Investment Grade Producti
Slide 51: Leucadia Asset Management
Leucadia Asset ManagementLeucadia Asset Management
Slide 52: 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 certain asset management activities within Jefferies Financial Group, including investments and stra
Slide 53: Leucadia Asset Management – Our Platforms and Strategies
Leucadia Asset Management – Our Platforms and Strategies ($ Billions) (1) Strategy NAV Founded Description (2) Multi $2.3 1978§ Multi-strategy asset manager with 40 year track record § Discretionary long/short equity hedge fund platform (2) Equities $2.1 2014 § Combination of Folger Hill with Schonf
Slide 54: Recent Developments
Recent Developments § January 2020: Announced strategic relationship with Dymon Asia and acquired Riposte Capital team – Invested in Dymon Asia to support the launch of its Multi-Strategy Investment program § Received perpetual revenue share § AUM in the multi-strategy program has grown to over $2 b
Slide 55: Recent Developments (Continued)
Recent Developments (Continued) § New credit strategies in response to post-Covid opportunities – August 2020: Launched 3|5|2 Capital as a division of LAM § Consumer Asset-Backed Securities strategy § Led by Jordan Chirico, formerly of Brigade Capital – September 2020: Announced strategic relationsh
Slide 56: Recent Developments (Continued)
Recent Developments (Continued) § Fundraising – $3 billion in 1H AUM additions driven by Dymon, Schonfeld and Monashee – Strong pipeline for second half including potential first close for Point Bonita – Kathmandu, low net energy-focused strategy with exceptional returns, is also closing its first t
Slide 57: Leucadia Asset Management – Strategic Priorities
Leucadia Asset Management – Strategic Priorities § Grow fee-generating third party assets; prospect of long-term stable cash flows § Continue to add new strategies § Earn strong return on invested capital; recycle capital to support new strategies § Manage cost and mitigate risk – Leverage Jefferies
Slide 58: Merchant Banking
Merchant BankingMerchant Banking
Slide 59: Merchant Banking – Business Highlights
Merchant Banking – Business Highlights § Diversity of remaining merchant banking investments has mitigated the impact of the pandemic § Opportunities for monetization continue to be evaluated and pursued Company Impact of COVID Pandemic Outlook Linkem§ Lockdown increased demand, accelerating subscri
Slide 60: Linkem – Overview
Linkem – Overview (2) Overview Market Overview Revenue § Leading fixed wireless (€ Millions; FYE 12/31) § Linkem provides fixed wireless broadband service with a compelling broadband provider in Italy combination of speed and price – Core consumer offering provides € 150 € 127.6 € 136.8 § Approximat
Slide 61: HomeFed – Overview
HomeFed – Overview Company Overview Revenue Distributions to Jefferies § Developer/owner of residential and mixed- ($ Millions) Pre-Merger Post-Merger use real estate projects in California, New York, Florida, South Carolina and Virginia $60.0 $140.6 $60 $150 § After many years in the entitlement $1
Slide 62: Vitesse Energy Finance – Overview
Vitesse Energy Finance – Overview Company Overview Strategic Priorities § Bob Gerrity (CEO) and Brian Cree (COO) were the Management team at Gerrity Oil & Gas, a NYSE traded oil & § When oil prices recover and approach $50/bbl in 2021, VE expects to gas company profitably sold (now part of Chevron).
Slide 63: Idaho Timber – Overview
Idaho Timber – Overview Company Overview Recent Developments § Manufacturer and distributor of wood products§ High lumber demand in combination with limited supply response due to COVID-19 related disruptions led to favorable pricing and record results – Complementary Remanufacturing and Sawmill seg
Slide 64: Q & A Session
Q & A Session Please submit questions using the webcast question boxQ & A Session Please submit questions using the webcast question box
Slide 65: Appendix
AppendixAppendix
Slide 66: Endnotes
Endnotes These notes refer to page 4 (1) The financial measures presented herein include adjusted non- GAAP financial measures for 2011-15, which exclude the impact of the results of operations of Bache, a business substantially exited in 2015. See Appendix on page 72 for reconciliation to GAAP amou
Slide 67: Endnotes
Endnotes These notes refer to page 12 (1) Source: Coalition FY15-1H20 Coalition Index Revenues. Coalition Index includes BAC, BARC, BNPP, CITI, CS, DB, GS, HSBC, JPM, MS, SG, UBS. Analysis is based on Coalition’s standard taxonomy. FICC represents Fixed Income, Currency and Commodities. (2) 2015 and
Slide 68: Endnotes
Endnotes These notes refer to page 22 (1) Results for the Nine Months Ended August 31, 2019 and for the 12 Months Ended November 30, 2019 are adjusted to remove the ac cumulated other comprehensive income nonrecurring tax benefit in 2019. See Appendix on page 76 for reconciliation to GAAP amounts. T
Slide 69: Endnotes
Endnotes These notes refer to page 37 (1) Includes core capital, third party assets under management and committed funding. These notes refer to page 41 (1) Global Equity Research coverage reflects year-end coverage for each year and 2020 is as of 8/31/20. (2) Data reflects Jefferies Group notional
Slide 70: Endnotes
Endnotes These notes refer to page 48 Note: As presented in Jefferies Group LLC public filings. (1) Average Cash Capital Plus Liquidity Buffer. (2) Average Headcount. (3) Average worst case stress. (4) Based on daily Fixed Income revenues. These notes refer to page 49 Note: Rankings, Market Share, a
Slide 71: Endnotes
Endnotes These notes refer to page 60 (1) Adjusted EBITDA reflects the adoption of IFRS 16 and is not directly comparable to periods before 2019. Adjusted EBITDA is a non-GAAP financial measure. See Appendix on page 80 for reconciliation to GAAP amount. (2) LTM period per management accounts. All hi
Slide 72: Reconciliation to Remove the Impact of the Bache Business
Reconciliation to Remove the Impact of the Bache Business from Jefferies Group Historical Firmwide Results ($ Millions) Fiscal Year Ended (4) 11/30/11 11/30/12 11/30/13 11/30/14 11/30/15 (1) Net Revenues (GAAP) $2,573 $3,019 $2,959 $2,990 $2,475 (2) Adjustments to Remove Bache (170) (249) (215) (203
Slide 73: Jefferies Group – Reconciliation of Return on Tangible Equity
Jefferies Group – Reconciliation of Return on Tangible Equity (a non- GAAP measure) ($ Millions) Nine Mos. Quarter Ended Ended 11/30/19 2/29/20 5/31/20 2/29/20 5/31/20 8/31/20 8/31/20 Jefferies Group Member's Equity Net Earnings Attributable to $6,125 $6,313 $6,412 $173 $131 $268 $572 (GAAP) Jefferi
Slide 74: Reconciliation to Remove Bache Impact from Fixed Income and Capital Markets Results
Reconciliation to Remove the Impact of the Bache Business from Jefferies Group Historical Fixed Income and Capital Markets Results ($ Millions) Fiscal Year Ended 11/30/15 Jefferies Fixed Income Net Revenues (GAAP) $271 (1) Adjustments to Remove Bache (80) Adjusted Jefferies Fixed Income Net Revenues
Slide 75: Reconciliation of Shareholders' Equity to Tangible Book Value by Component
Reconciliation of Jefferies Financial Group Shareholders' Equity to Tangible Book Value by Component (a non-GAAP measure) ($ Millions) 3/31/18 8/31/20 Investment Banking, Capital Markets, & Asset Management Shareholders' Equity (GAAP) $5,555 $6,857 Less: Intangible assets, net and goodwill (1,898) (
Slide 76: Reconciliation of Income to Adjusted Income
Reconciliation of Jefferies Financial Group Income to Adjusted Income (a non-GAAP measure) ($ Millions) Fiscal Year Ended 11/30/19 Jefferies Financial Group Accumulated other Jefferies Financial Group Adjusted (1) Income (GAAP) comprehensive income tax benefit Income (non-GAAP) Income Before Income
Slide 77: Reconciliation of Fully Diluted Shares Outstanding
Reconciliation of Jefferies Financial Group Fully Diluted Shares Outstanding (a non-GAAP measure) (In Millions) 3/31/18 6/30/18 9/30/18 11/30/18 2/28/19 5/31/19 8/31/19 11/30/19 2/29/20 5/31/20 8/31/20 Jefferies Financial Group Common Shares 357 333 331 308 298 291 300 292 277 267 259 Outstanding (G
Slide 78: Reconciliation of Merchant Banking Equity to Tangible Book Value
Reconciliation of Merchant Banking Shareholders' Equity to Merchant Banking Tangible Book Value (a non-GAAP measure) ($ Millions) 12/31/16 12/31/17 11/30/18 11/30/19 8/31/20 $4,498 $4,387 $3,307 $2,144 $1,969 Merchant Banking Shareholders’ Equity (GAAP) (610) (564) (9) (53) (50) Less: Intangible ass
Slide 79: Reconciliation of Shareholders' Equity to Tangible Book Value
Reconciliation of Jefferies Financial Group Shareholders’ Equity to Tangible Book Value (a non-GAAP measure) ($ Millions) 12/31/16 12/31/17 11/30/18 11/30/19 8/31/20 Jefferies Financial Group Shareholders’ Equity (GAAP) $10,128 $10,106 $10,061 $ 9,580 $9,411 Less: Intangible assets, net and goodwill
Slide 80: Linkem – Reconciliation of Pre-tax Loss to Adjusted EBITDA
Linkem – Reconciliation of Pre-tax Loss to Adjusted EBITDA (a non-GAAP measure) (€ Millions) 12 Months Ended 6/30/20 Pre-tax Loss (GAAP) €(79) Interest expense 30 Depreciation & Amortization 90 (1) Other 19 Adjusted EBITDA (non-GAAP) €59 Note: Linkem is not consolidated by Jefferies Financial Group
Slide 81: Vitesse – Reconciliation of Pre-Tax Loss to Adjusted EBITDA
Vitesse – Reconciliation of Pre-Tax Loss to Adjusted EBITDA (a non-GAAP measure) ($ Millions) Quarter Ended 8/31/20 Pre-Tax Loss (GAAP) $(22) Depletion, depreciation, amortization and accretion 12 Interest Expense/(Income), net 1 Unrealized losses on commodity derivative instruments 30 Other 1 Adjus
Slide 82: Idaho Timber – Reconciliation of Pre-Tax Income to EBITDA
Idaho Timber – Reconciliation of Pre-Tax Income to EBITDA (a non-GAAP measure) ($ Millions) 11 Months Fiscal Year Nine Months Nine Months Fiscal Year Ended Ended Ended Ended Ended 12/31/15 12/31/16 12/31/17 11/30/18 11/30/19 8/31/19 8/31/20 Pre-Tax Income (GAAP) $16.1 $20.3 $28.9 $35.7 $18.0 $13.3 $
Slide 83: Reconciliation of Merchant Banking Book Value to Fair Market Value
Reconciliation of Merchant Banking Book Value to Fair Market Value (a non-GAAP measure) ($ Millions) rd Fair Market Value 3 Quarter 2020 Public Adjusted Fair Market Book Value Fair Value 5/31/20 Company Investments Value 5/31/20 5/31/20 (GAAP) Adjustments (non-GAAP) Fair Value Adjustment (non-GAAP)
Jefferies Financial Group — Investor Day (October 2020) on 6ix