Jefferies A Global Investment Banking Firm July 2015 Jefferies LLC Member SIPC
Jefferies A Global Investment Banking Firm Full-Service Capital Markets Platform: expertise and depth across equities, fixed income and investment banking Client-Focused: providing investor and issuer clients with the highest quality…
Earnings Update Q2 & YTD 2015 ( Millions) Second quarter ended May 31, 2015 performance: Six months ended May 31, 2015 performance: Net Revenues: 792 million (757 million excl. Bache) Net Revenues: 1,383 million (1,299 million excl.…
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…
Core Operating Principles Jefferies is focused on the following core principles to manage risk and deliver across-the-cycle revenue and earnings growth: Strong Liquidity Jefferies maintains a very liquid, financeable and low-risk…
Revenue and Earnings Growth Since 1990 ( Millions) Net Revenues (1) Predecessor Successor 3,500 3,000 (3) 2,815 2,500 2,192 (3) 2,592 2,000 1,500 1,205 1,000 617 500 365 144 0 Net Earnings to Common Shareholders (1)…
Consistent Profitability Across the Cycle Jefferies has generated pre-tax earnings of 2.8 billion since 2009 Average pre-tax margin of 16%(2) Pre-Tax Earnings and Margin ( Millions) Predecessor Successor 200 175 30.0% (1) 150 123…
Strong Capital Structure and Ample Liquidity Jefferies maintains a highly liquid balance sheet, with low gross leverage and exposure to illiquid assets, and significant structural liquidity Jefferies continues to manage the size of…
Consistent Tangible Common Equity Growth ( Millions) Jefferies has significantly and consistently grown tangible common equity Jefferies proactive equity capital raises helped the firm navigate the global financial crisis and…
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…
Strong Liquidity Jefferies trading inventory is liquid and low-risk, rapidly turning in order to serve client flow Very liquid inventory 74% of financial instruments owned are readily and consistently financeable at haircuts of 10%…
Level 3 Trading Assets Overview 97% of inventory is Levels 1 and 2, with a minimal amount of Level 3 Trading Assets Level 3 Trading Assets (1) represent only 15% of tangible common equity Level 3 Financial Instruments Owned (1) as a…
Value-at-Risk (VaR) ( Millions) Daily VaR Risk Category Average VaR for the Quarter Ended 05/31/15 Adjusted Firmwide (1) 9.86 Interest Rates 6.19 Equity Prices 9.98 Currency Rates 0.28 Commodity Prices 0.32…
Liquidity Pool ( Millions) Jefferies maintains significant excess liquidity on hand Total Liquidity Pool Predecessor Successor 6,000 5,824 5,913 18.0% 5,574 5,500 5,187 5,282 4,951 5,000 4,726 4,647 15.0% 4,423 4,467 4,229…
Long-Term Debt Profile As of 05/31/15, our 5.9 billion notional of long-term debt had a weighted average maturity of approximately 8 years No maturity of long-term debt in a single year is greater than 20% of outstanding long-term…
Credit Ratings Jefferies Group LLC Agency Rating Outlook Standard & Poors BBB- Stable Moodys Baa3 Negative Fitch BBB- Stable Subsidiaries Jefferies LLC Agency Rating Outlook Standard & Poors BBB Stable Moodys Baa2…
Appendix 16
Balance Sheet As of May 31, 2015 ( Millions) Jefferies Group LLC Balance Sheet as of 5/31/2015 Assets Liabilities and Equity Cash & Cash Equivalents 3,289 Bank Loans 362 Cash & Securities Segregated 2,396 Financial Instruments…
GAAP Reconciliation Leverage Excluding Merger Impacts Leverage Ratio - Excluding Merger Impacts May 31, August 31, November 30, February 28, May 31, August 31, November 30, February 28, May 31, ( Millions) 2013 2013 2013 2014 2014…
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