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Jefferies Equity Research Challenge 2015
October 2014
Jefferies LLC
Member SIPC
Jefferies / October 2014 /
A Global Investment Banking Firm
Full-Service Capital Markets Platform: expertise and depth across equities, fixed income,
commodities and investment banking
Client-Focused: providing investor and issuer clients with the highest quality advice and
execution
Global Footprint: sales & trading and investment banking presence across the Americas,
Europe and Asia
Strong, Stable Foundation: robust long-term capital base, comparatively low leverage and
free from dependence upon government support
Positioned to Seize Market Share: having broadened our product offering and hired
additional key talent during the downturn, Jefferies is positioned for growth
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Jefferies / October 2014 /
A Full-Service Investment Banking Firm
Derivatives
Cash
Equities
Electronic
Trading
Prime
Brokerage /
Securities
Finance
ETFs Convertibles
Wealth
Managemen
t
MBS / ABS /
CMBS
Emerging
Markets
Investment
Grade
Rates /
Repos
Leveraged
Credit
Municipals
Base Metals Listed
Futures
Precious
Metals
Foreign
Exchange
Metals &
Mining Industrials
Healthcar
e Financials
TMT
Real
Estate,
Gaming &
Lodging
Energy Consumer
Equity
Capital
Markets
Leveraged
Finance
M&A
Financial
Sponsors
Equities Fixed Income Jefferies Bache Investment Banking
Public
Finance
Restructu-
ring Research ETFs Research
Research
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Jefferies / October 2014 /
Financial Performance
Source: Jefferies.
(1) Other includes debt extinguishment gains and bargain purchase gains of $13.2 million in Fiscal Year 2012 and $73.6 million in Fiscal Year 2011.
Financial Summary
Predecessor Successor
(Amounts in $ Millions)
11 Months
Fiscal Year
2010
Fiscal Year
2011
Fiscal Year
2012
Fiscal
Q1 2013
Nine Months
Ending,
Q4 2013
Six Months
Ending,
Q2 2014
LTM Ending
Q2 2014
Equities $ 557 $ 594 $ 642 $ 167 $ 582 $ 366 $ 807
Fixed Income 728 743 1,253 352 504 504 779
Sales and Trading 1,285 1,337 1,896 519 1,086 870 1,586
Equity 126 187 194 61 228 178 353
Debt 347 385 456 141 416 320 602
Capital Markets 474 572 650 202 644 498 955
Advisory 417 550 476 86 369 247 526
Investment Banking 890 1,123 1,126 288 1,014 745 1,481
Asset Management and Other 17 118 (1) 40 (1) 11 41 7 37
Net Revenues $ 2,192 $ 2,577 $ 3,062 $ 819 $ 2,141 $ 1,622 $ 3,104
Earnings Before Income Taxes 397 419 492 139 264 281 480
Net Earnings to Common
Shareholders / Jefferies Group LLC 224 285 282 80 161 174 295
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Jefferies / October 2014 /
Full Service Equity Platform
Core US equity sales & trading business pioneered block trading more than 50 years ago
Diverse full-service product offering spanning cash equities, electronic trading, equity derivatives,
convertible bonds, ETFs, prime brokerage, securities finance and equity capital markets
Global full-service equities franchise with research, sales and trading across North America, Europe and
Asia Pacific
Focused on providing best-in-class ideas, execution and service to our clients
Equity Capital
Markets
Capital Markets Equity Finance
US Cash Equities
Sales & Trading
Electronic Trading
Equity Derivatives
Research
Asia Pacific
Research
Global Equities
EMEA
Research
US Research Prime Brokerage
Securities Finance
Asia Pacific
Cash Equities
EMEA
Cash Equities
Convertible Bonds
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Jefferies / October 2014 /
Leading Equity Franchise
750 professionals providing sales, trading and equity research across cash equities, electronic trading, equity
derivatives, prime brokerage and securities finance to over 2,000 institutional clients
Top 10 broker of US equities, equity options and ETFs
─ #2 equity broker – North America (Bloomberg Markets Magazine, April 2011)
─ #8 equity broker – Global (Bloomberg Markets Magazine, April 2011)
─ Top ranked for lowest transaction costs among full-service and bulge-bracket brokers (-25bps per
Elkins/McSherry study in Institutional Investor, Dec. 2012/Jan. 2013 issue)
Ranked #1 among global brokers in broad transaction costs in November 2013 survey
Ranked #1 in trades for giant-cap stocks, beating transaction costs by an average of 14 basis points in November
2013 survey
Expanding capabilities and growing market share across regions and products
Equity execution capabilities across over 44 countries including:
─ Americas: United States, Canada, Brazil, Chile, Colombia, Mexico, Peru
─ Europe, Middle East & Africa: Austria, Belgium, Czech Republic, Denmark, Finland, France, Germany,
Greece, Hungary, Ireland, Israel, Italy, Netherlands, Norway, Poland, Portugal, Romania, Russia, Slovakia,
South Africa, Spain, Sweden, Switzerland, Turkey, United Kingdom
─ Asia Pacific: Australia, Hong Kong, India, Indonesia, Japan, Malaysia, New Zealand, Philippines, Singapore,
South Korea, Thailand, Taiwan
Broad Equity Research platform
─ Over 1,680 stocks covered globally
─ Rapidly expanding Asia Equity Research platform
Adding co-branded research coverage of over 300 companies in Asia, bringing total coverage to ~2,000 companies
– 22 awards received in 2013, including US, Europe and Asia StarMine/FT Equity Research Analyst Survey,
Wall Street Journal’s “Best on the Street” and “Europe Master Stock Pickers” surveys and 4 awards in 2013
AsiaMoney Broker Poll
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Jefferies / October 2014 /
Jefferies Equity Research Platform
Key Points
Over 1,680 companies covered in 9 major
industries
249 research professionals across the US,
Europe and Asia
139 senior research analysts have an average
of 11 years of sell-side research experience
In 2014, research has sponsored:
─ 23 conferences and summits, 45 bus tours,
49 corporate field trips and 411 non-deal
related company roadshows
Research Professionals by Region
United States
132 research professionals
56 senior research analysts
832 companies covered
Europe
57 research professionals
43 senior research analysts
392 companies covered
Asia
60 research professionals
41 senior research analysts
461 companies covered
Houston
4 research professionals
2 senior analysts
San Francisco
17 research professionals
8 senior analysts Nashville
5 research professionals
4 senior analysts
New York
103 research professionals
44 senior analysts
Tokyo
13 research professionals
7 senior analysts
Singapore
4 research professionals
4 senior analysts
Mumbai
10 research professionals
8 senior analysts
Hong Kong
30 research professionals
21 senior analysts
London
42 research professionals
33 senior analysts Jefferies Global Investor Conferences
Annual Global Technology, Internet, Media & Telecom Conference
May 6-8, 2014 – Miami
Annual Global Healthcare Conference
June 2-5, 2014 – New York
Annual Global Consumer Conference
June 17-19, 2014 – Nantucket
Annual Global Shipping Conference at Marine Money
June 18-19, 2014 – New York
Annual Global Industrials Conference
August 11-14, 2014 – New York
Annual Global Energy Conference
November 11-12, 2014 – Houston
Annual Global Healthcare Conference
November 19-20, 2014 – London
Senior Research Analysts and Years of Research Experience by Sector
Publishing Analysts
Sector
Total Research
Professionals
Publising
Analysts
Avg. Years of
Experience
Companies
Covered
Business Services 8 5 11 73
Consumer 28 15 11 201
Energy 25 14 11 157
Financial Services 27 16 9 146
Healthcare 40 22 10 285
Industrials / A&D 46 26 12 364
Natural Resources 10 5 11 73
REGAL 15 10 10 129
Technology, Media & Telecom 49 26 11 257
Houston 4 research professionals
2 publishing analysts
Nashville 4 research professionals
4 publishing analysts
San Francisco 20 research professionals
7 publishing analysts New York 104 research professionals
43 publishing analysts
London 57 research professionals
43 publishing analysts
Hong Kong 34 research professionals
21 publishing analysts
3 strategy professionals
Tokyo 11 research professionals
8 publishing analysts
Mumbai 10 research professionals
7 publishing analysts
Singapore 5 research professional
5 publishing analysts
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Jefferies / October 2014 /
Electronic Trading Services
Trading expertise, natural liquidity, advanced
technology and quantitative analytics to
provide superior execution services
Flexibility, allowing for quick customizations at
the lowest level of the algorithm
Advanced smart routing/order placement
New trading platform with lower latency and
higher capacity
Global coverage spanning North America,
Mexico, Brazil, Europe and Asia Pacific
Non-displayed liquidity access – More than 24
Dark Pools
Advanced trading strategies to execute large
lists (Portfolios) or Pairs of stocks
Sophisticated Relative Trading Strategies
Equity Derivatives
Options
─ Top 10 dealer of US equity options to US
institutional asset managers
─ Client focused, capital committing, listed
options platform
─ Sales and trading team distinguishes
offering by emphasizing idea generation and
providing superior trading execution
─ OTC and Corporate Derivative offerings,
including Convertible Bond anti-dilution
hedges
Exchange Traded Funds (ETFs)
─ Powerful asset allocation tool, providing
efficient exposure to broad market and
indices
─ Dedicated trading team making active
markets in all major ETFs
─ Created / redeemed over $5 billion US ETFs
in prior 12 months
Equity Finance
Prime Brokerage
─ Industry leading team of Prime Brokerage
professionals with deep industry
relationships and over 20 year history in
managing the business
─ More than 400 hedge fund clients
─ Top-rated prime broker for hedge funds
below $1 billion AUM in 2013 Global
Custodian Survey
─ Multi broker custodial options: Jefferies LLC,
JP Morgan Clearing Corporation, Goldman
Sachs Execution and Clearing LP
─ Creative and customized solutions across
Capital Introduction, Securities Finance,
Client Service and Technology
Securities Finance
─ Global capabilities to borrow and lend equity
and fixed income instruments and gain
access to hard to borrow securities
Electronic Trading Services, Derivatives and Equity Finance
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Jefferies / October 2014 /
Fixed Income
550 fixed income sales, trading, research and strategy professionals worldwide
Primary Dealer or equivalent in US, UK, Germany, Netherlands, Portugal, Slovenia and Belgium
Substantial fixed income inventory maintained across all products globally including credit, global rates, ABS,
MBS, CMBS, municipal securities and emerging markets
Significant provider of liquidity, execution, underwriting and capital markets expertise in all fixed income sectors
Fixed Income
Emerging
Markets
Capital Markets
Global Sales &
Trading
Municipal
Securities
Public Finance
Sales &
Trading
Capital Markets
Investment
Grade
Capital Markets
US Corporates
Sales &
Trading
International
Sales &
Trading
Leveraged
Finance
Research
US Sales &
Trading
International
Sales &
Trading
Capital Markets
Global
Rates
US Treasuries
US Agencies
European
Government
Bonds
US & Euro
Repo Financing
European
Supras &
Agencies
Covered Bonds
MBS / ABS /
CMBS
Global
CDO/CLO
Global ABS
Global MBS
Global CMBS
Project Finance
Global Capital
Markets
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Jefferies / October 2014 /
Jefferies Futures – At A Glance
Source: JEFFERIES INVESTOR PRESENTATION FOUND
ON ONEJEF UNDER JEFFERIES
Equities
Commodities
Fixed Income
Energy
Agricultural
Softs
Futures
Foreign
Exchange
Options
Forwards
Spot
Exchange for
Physicals
Non-Deliverable
Forwards
Prime Brokerage
Futures and
Options Precious Metals
Platinum
Silver
Gold
Palladium
Base Metals &
Ferrous Markets
Nickel
Copper
Iron Ore
HRC
Molybdenum
Zinc
Billet
Cobalt
Tin
Aluminum
Lead
Secondary
Steel
Rebar Freight
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Jefferies / October 2014 /
Jefferies Global Investment Banking Overview
Key Points
Deep sector expertise with
extensive experience across 9
major industry verticals
639 investment bankers
─ 440 in the Americas
US
Canada
Brazil
─ 155 in Europe
UK
Germany
Russia
Sweden
─ 44 in Asia
China
India
177 Managing Directors, having
investment banking experience
averaging 18 years
1,020 bookrun or advisory banking
transactions executed since
January 1, 2012
─ $525 billion in transaction value
─ 242 Non-US bookrun or
advisory investment banking
transactions
Repeat Clients: 70% of our
transactions and 74% of our
revenue
Financing Business Overview
(Since January 1, 2012)
688 bookrun financings
─ 301 bookrun Equity Offerings
─ 153 bookrun High Yield
Offerings
─ 234 bookrun Leveraged Loans
88% of all financings are bookrun
The highest lead left percentage
of common stock offerings
The highest lead left percentage
of high yield offerings
Among the highest lead left
percentage of leveraged loans
Advisory Business Overview
(Since January 1, 2012)
332 advisory transactions
executed
70% of M&A transactions are
sell-sides
35% of M&A transactions are
cross-border
46 M&A transactions $1+ billion
in deal value
Highest percentage of sole
advised M&A volume of any
major investment bank
Investment Banking Sector and Product Expertise
Sectors
Consumer & Retailing
─ Consumer Products
─ Restaurants
─ Retailing
Financial Institutions
─ Banks
─ Insurance
─ Specialty Finance
Industrials
─ Aerospace & Defense
─ Business Services
─ Capital Goods
─ Chemicals
─ Construction & Building Materials
─ Maritime
─ Metals & Mining
─ Paper & Packaging
─ Power and Utilities
─ Transportation & Logistics
Healthcare
─ Biotechnology
─ Healthcare Services
─ Managed Care
─ Medical Devices
─ Pharmaceuticals
Media & Telecom
─ Wireless & Wireline
─ Internet & Telecom Infrastructure
─ Entertainment, Cable & Broadcast
─ Information Services & Publishing
Energy
─ Oil & Gas Exploration
─ Oil & Gas Midstream
─ Oil Field Services
Technology
─ Software
─ Internet
─ Semiconductors
─ Communications Equipment
─ Technology Services
REGAL
─ Real Estate
─ Gaming
─ Leisure
Financial Sponsors
Products
Equity Capital Markets
─ IPO’s
─ Wall-Cross Follow-ons
─ Block Trades
─ Convertible Debt
Debt Capital Markets
─ High Yield Debt
─ Leveraged Loans
─ Bridge Loan Commitments
─ Investment Grade Debt
─ Preferred Stock
─ Mortgage-Backed Debt
Advisory
─ Mergers & Acquisitions
─ Restructuring & Recapitalization
Foreign Exchange
UK Corporate Broking
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Jefferies / October 2014 /
Jefferies Equity Capital Markets
Key Points
Since 2012, Jefferies has
bookrun 301 transactions
raising $59 billion in proceeds
─ Average bookrun offering
size: $186 million
Significant experience in
every industry vertical and on
every major global exchange
Lead-left bookrunner on more
of its bookrun equity offerings
than any other investment
bank
Industrials TMT Consumer Healthcare Real Estate FIG Energy
Healthcare January 2013
$2,574,000,000
Initial Public Offering
Joint Bookrunner
Consumer September 2013
$1,500,000,000
Initial Public Offering
Joint Bookrunner
Technology October 2013
$625,000,000
Initial Public Offering
Joint Bookrunner
Energy October 2013
$1,808,000,000
Initial Public Offering
Joint Bookrunner
Consumer October 2013
$418,000,000
Initial Public Offering
Joint Bookrunner
Real Estate July 2013
$812,000,000
Initial Public Offering
Joint Bookrunner
Healthcare June 2013
$311,000,000 Common Stock Offering of
Elan Corp, plc
Sole Placement Agent
Finance February 2012
$380,000,000
Common Stock Offering
Joint Bookrunner
Finance September 2012
$306,000,000
Common Stock Offering
Joint Bookrunner
Healthcare January 2013
$323,000,000
Common Stock Offering
Joint Bookrunner
Real Estate August 2013
$309,000,000
Common Stock Offering
Joint Bookrunner
Finance October 2013
$334,000,000
Initial Public Offering
Joint Bookrunner
Healthcare March 2012
$399,000,000 Common Stock Offering of
Alkermes, Inc.
Joint Bookrunner
Real Estate October 2013
$296,000,000
Initial Public Offering
Joint Bookrunner
Industrials April 2013
$254,000,000
Initial Public Offering
Joint Bookrunner
Industrials June 2013
$270,000,000
Common Stock Offering
Joint Bookrunner
Consumer August 2012
$233,000,000
Initial Public Offering
Joint Bookrunner
Healthcare April 2014
$338,000,000
Common Stock Offering
Joint Bookrunner
Senior Housing Properties
Trust
Healthcare June 2014
$391,000,000
Common Stock Offering
Joint Bookrunner
Consumer October 2013
$259,000,000
Initial Public Offering
Joint Bookrunner
Energy January 2013
$690,000,000
Initial Public Offering
Joint Bookrunner
Energy March 2012
$1,250,000,000 Private Placement to Investors
Led by GSO Capital Partners
Sole Placement Agent
Holding Co. December 2012
$173,000,000
Common Stock Offering
Sole Bookrunner
Energy March 2013
$636,000,000
Common Units Offering
Joint Bookrunner
Consumer November 2013
$178,000,000
Common Stock Offering
Joint Bookrunner
Energy October 2013
$1,700,000,000 Private Placement
Sole Financial Advisor and
Sole Placement Agent
Source: Dealogic.
Maritime November 2013
$262,000,000
Initial Public Offering
Joint Bookrunner
Navigator Holdings Ltd.
Real Estate December 2013
$328,000,000
Initial Public Offering
Sole Bookrunner
Energy January 2014
$393,000,000
Common Stock Offering
Joint Bookrunner
Healthcare January 2014
$345,000,000
Convertible Notes Offering
Joint Bookrunner
Technology February 2014
$811,000,000
Initial Public Offering
Joint Bookrunner
Technology April 2014
$518,000,000
Initial Public Offering
Joint Bookrunner
Real Estate March 2014
$551,000,000
Common Stock Offering
Joint Bookrunner
Equity Underwriter Roles US Ranking by Lead-Left as % of
All Transactions
January 1, 2012 to Present
Underwriter
Lead-Left as
% of Transactions
Goldman Sachs 45%
Jefferies 42%
Morgan Stanley 42%
Citi 36%
Barclays 34%
BofA-ML 33%
JPMorgan 30%
Credit Suisse 29%
Deutsche Bank 22%
UBS 10%
Consumer April 2014
$425,000,000
Common Stock Offering
Joint Bookrunner
Business May 2014
Services
$1,867,000,000
Common Stock Offering
Joint Bookrunner
Technology May 2014
$2,047,000,000
Initial Public Offering
Joint Bookrunner
Industrials June 2014
$219,000,000
Initial Public Offering
Joint Bookrunner
Technology June 2014
$597,000,000
Initial Public Offering
Joint Bookrunner
Media June 2014
$1,476,000,000
Initial Public Offering
Joint Bookrunner
Finance July 2013
$461,000,000
Initial Public Offering
Joint Bookrunner
Finance December 2013
$2,824,000,000
Initial Public Offering
Joint Bookrunner
China Cinda Asset Management Co., Ltd.
Business June 2014
Services
$702,000,000
Initial Public Offering
Joint Bookrunner
12
Jefferies / October 2014 /
Jefferies Private Placement Capabilities
Key Points
Jefferies has completed over
29 private placements
raising $5 billion since 2012
Jefferies dedicated private
placements team provides
highly tailored solutions to
private and public
companies
Experience executing
complex private equity
transactions across a wide
range of industries and
structures
─ Formation capital,
acquisition financing,
growth capital and special
situations transactions
─ Common stock,
convertible preferred
stock and convertible debt
structures
Deep and longstanding
investor relationships
─ Public cross-over/mutual
funds, hedge funds,
private equity/sponsor
funds, financial institutions
and venture capital
investors
Recent Jefferies Private Placements Transactions
Formation Capital Acquisition Financing Growth Capital / PIPE
Real Estate September 2012
Sole Advisor and Placement Agent
$1,000,000,000 Formation and Capital Raise from
investors including Affiliates of
Blackstone Real Estate
Energy October 2013
Sole Financial Advisor and
Sole Placement Agent
$1,700,000,000 Private Placement of Equity and
Debt to an investor consortium led
by The Energy & Minerals Group
and GSO Capital Partners LP
Finance July 2012
Convertible Preferred Stock
Sole Placement Agent
$84,000,000
Holding Company August 2011
$400,000,000 Private Placement to
Fortress, Providence, Wilton Re,
JHL, Soros, DDJ and Luxor
Capital
Sole Placement Agent
Healthcare October 2013
$64,000,000
Common Stock Offering
Lead Placement Agent
Energy January 2014
$200,000,000
Private Placement of Equity
Sole Financial Advisor
Business May 2011
Services
$300,000,000 Private Placement to
Apax Partners
Sole Placement Agent
Maritime May 2011
General Maritime Corporation
$200,000,000 Private Placement to
Oaktree Partners
Sole Placement Agent
Energy November 2011
A Wholly Owned Subsidiary Of
$450,000,000 Private Placement to
EIG Global Energy Partners
Lead Placement Agent
13
Jefferies / October 2014 /
Jefferies Equity-Linked Capital Markets Capabilities
Key Points
Jefferies has completed 24
bookrun convertible
offerings since 2012 raising
$4 billion
Jefferies Equity-Linked
structuring and distribution
capabilities allow issuers to
achieve the best terms
─ The Jefferies Equity-
Linked team has
executed over 100
bookrun transactions
Jefferies has been the lead-
left bookrunner on a greater
percentage of convertible
offerings than any of our
competitors
Sources: Jefferies Equity-Linked Capital Markets, Bloomberg.
(1) Bookrun Convertible Offerings since 2011, total deal size greater than $75mm.
Recent Jefferies Equity-Linked Transactions
Pricing versus Coupon Range(1)
Pricing versus Premium Range(1)
Percent of Offerings Upsized(1)
Superior Execution Track Record
Convertible Lead Left Execution(1)
US Ranking by Lead-Left as % of
Bookrun Transactions
January 1, 2011 to Present
Bookrunner
Lead-Left as
% of Bookrun
Jefferies 65%
Goldman Sachs 56%
Morgan Stanley 51%
JPMorgan 45%
Barclays 44%
Bank of America 42%
Credit Suisse 41%
Citi 37%
UBS 28%
Deutsche Bank 27%
Source: Dealogic.
74% 74% 72% 69% 69% 69% 68% 65% 63% 63% 61%
% M
idpoin
t or
Better
83% 74% 73% 72% 72% 71% 69% 69% 67% 67% 61%
% M
idpoin
t or
Better
70% 56% 52% 53% 48% 51% 52% 51% 46% 44% 45% %
Upsiz
ed
Technology August 2013
$150,000,000 Convertible Notes Offering
Joint Bookrunner
Call Spread Counterparty
Technology August 2013
$138,000,000
Convertible Notes Offering
Joint Bookrunner
Real Estate June 2013
$131,000,000
Convertible Notes Offering
Joint Bookrunner
Technology March 2013
$201,000,000
Convertible Notes Offering
Joint Bookrunner
Healthcare January 2013
$175,000,000
Convertible Notes Offering
Sole Placement Agent
Consumer March 2014
$259,000,000
Convertible Notes Offering
Sole Bookrunner
Technology August 2013
$288,000,000
Convertible Notes Offering
Joint Bookrunner
Industrials September 2013
$120,000,000 Convertible Notes Offering
Sole Bookrunner
Industrials November 2013
$125,000,000
Convertible Notes Offering
Sole Bookrunner
Healthcare December 2013
$120,000,000
Convertible Notes Offering
Joint Bookrunner
Healthcare January 2014
$345,000,000
Convertible Notes Offering
Joint Bookrunner
Energy February 2014
$750,000,000
Convertible Notes Offering
Joint Bookrunner
14
Jefferies / October 2014 /
Jefferies Bookrun or Lead Arranged Leveraged Finance Transactions Since 2012, Jefferies has completed 387 bookrun leveraged finance transactions, including 153 bookrun high yield bond offerings and 234
lead arranged loans
Energy May 2012
$4,000,000,000
Credit Facilities
Joint Lead Arranger
Consumer September 2012
$1,535,000,000
Credit Facility to Finance
Acquisition by
Advent International
Joint Lead Arranger
Energy October 2012
$500,000,000
Senior Secured Notes Offering
Joint Bookrunner
Holding Company December 2012
$700,000,000
Senior Secured Notes Offering
Joint Bookrunner
Industrials January 2013
$3,232,000,000 Credit Facility to Finance Acquisition
by The Carlyle Group Joint Lead Arranger
$1,625,000,000 Senior Unsecured Notes Offering
Joint Bookrunner
Industrials September 2012
$900,000,000
Senior Secured Notes Offering
Joint Bookrunner
Energy October 2012
$1,150,000,000
Senior Secured Notes Offering
Joint Bookrunner
Industrials November 2012
$1,370,000,000
Credit Facility
Joint Lead Arranger
Consumer February 2013
$1,025,000,000
Credit Facility
Joint Lead Arranger
Energy October 2012
$540,000,000
Senior Secured Notes Offering
Joint Bookrunner
Telecom April 2013
$1,425,000,000
Credit Facility to Finance
Merger led by
Berkshire Partners LLC
Joint Lead Arranger
Telecom May 2013
$2,600,000,000
Senior Unsecured Notes Offering
Joint Bookrunner
Leisure June 2013
$1,056,000,000 Credit Facility
Joint Lead Arranger
$679,000,000 Senior Unsecured Notes Offering
Joint Bookrunner
Source: Thomson Reuters.
High Yield Underwriter Roles US Ranking by Lead-Left as % of Bookrun
January 1, 2012 to Present
Underwriter Lead-Left as % of Bookrun
Jefferies 51%
Bank of America 42%
JPMorgan 35%
Credit Suisse 34%
Goldman Sachs 31%
Citi 30%
Deutsche Bank 25%
Morgan Stanley 23%
Barclays 23%
UBS 5%
Leveraged Loan Roles US Ranking by Lead-Left as % of Bookrun
January 1, 2012 to Present
Underwriter Lead-Left as % of Bookrun
JPMorgan 61%
Bank of America 57%
Credit Suisse 49%
Jefferies 45%
Citi 32%
Deutsche Bank 30%
Barclays 29%
Goldman Sachs 22%
UBS 21%
Morgan Stanley 18%
Healthcare September 2013
$950,000,000
Credit Facility to Finance
Acquisition by
Kohlberg Kravis Roberts & Co.
LP
Joint Lead Arranger
Technology September 2013
$4,224,000,000 Credit Facilities
Joint Lead Arranger
$1,625,000,000 Senior Unsecured Notes Offering
Joint Bookrunner
Gaming November 2013
$955,000,000
Credit Facilities
Joint Lead Arranger
Consumer November 2013
$2,100,000,000
Credit Facility
Joint Bookrunner
Healthcare November 2013
$1,345,000,000
Credit Facility to Finance
Acquisition by
Apax Partners
Joint Lead Arranger
Healthcare January 2014
$1,350,000,000 Credit Facility to Finance
Acquisition of Santarus, Inc. Joint Lead Arranger
$750,000,000 Senior Unsecured Notes Offerings
Sole Bookrunner
Holding Company January 2014
$3,650,000,000 Senior Unsecured Notes Offerings
Joint Bookrunner
$1,350,000,000 Senior Unsecured Notes Offerings
Sole Bookrunner
Healthcare March 2014
$1,525,000,000 Credit Facility to Finance
Merger with DCM Pharmaceutical Joint Lead Arranger
$450,000,000 Senior Unsecured Notes Offerings
Joint Bookrunner
Metals & Mining May 2014
$850,000,000
Senior Unsecured Notes Offering
Joint Bookrunner
Healthcare May 2014
$1,943,000,000
Credit Facilities
Joint Lead Arranger
Source: Thomson Reuters.
Industrials TMT Consumer Healthcare FIG & Real Estate Energy
Consumer April 2014
$745,000,000
Credit Facility to Finance
Acquisition by
Sycamore Partners
Joint Lead Arranger
Consumer June 2013
$725,000,000
Credit Facility to Finance
Acquisition of
BSN Sports
Joint Lead Arranger
Energy February 2012
$2,250,000,000
Senior Unsecured Notes Offering
Joint Bookrunner
Finance June 2014
$800,000,000
Senior Secured Notes Offering
Joint Bookrunner
Industrials June 2014
$940,000,000
Credit Facilities
Joint Lead Arranger
Technology January 2014
$1,145,000,000
Credit Facility to Finance
Acquisition by
Hellman & Friedman
Joint Lead Arranger
Media March 2013
$1,200,000,000 Credit Facility to Finance Acquisition
by Apollo Global Management
Joint Lead Arranger
$800,000,000 Senior Secured Notes Offering
Joint Bookrunner
15
Jefferies / October 2014 /
Energy
Jefferies M&A Capabilities
Industrials Healthcare TMT FIG & Real Estate
Energy December 2012
$17,200,000,000 Sale to
Freeport-McMoRan Copper & Gold Inc.
Joint Financial Advisor
Healthcare May 2012
$1,525,000,000 Acquisition of
Fougera Pharmaceuticals
Sole Financial Advisor
Industrials August 2012
$5,150,000,000 Acquisition of
Dupont Performance Coatings
Lead Financial Advisor
Media November 2012
$2,500,000,000 Acquisition of
McGraw-Hill Education
Joint Financial Advisor
Industrials June 2012
$1,157,000,000 Acquisition of
Kloeckner Pentaplast GmbH & Co. KG
Sole Financial Advisor
Metals/ December 2012
Mining
$5,134,000,000 Acquisition of
Inmet Mining Corporation
Joint Financial Advisor
Finance December 2012
$1,368,000,000 Merger with
Knight Capital Group
Sole Financial Advisor
Energy January 2013
$5,000,000,000 Sale to
Kinder Morgan Energy
Partners, L.P. Joint Financial Advisor
Healthcare February 2013
$1,750,000,000 Sale of Agila Specialties to
Mylan Inc.
Sole Financial Advisor
Energy May 2013
$7,300,000,000 Merger with
Crestwood Midstream Partners LP
Co-Financial Advisor
Media June 2013
$4,300,000,000 Acquisition of
Springer Science + Business Media
Joint Financial Advisor
Finance July 2013
$2,330,000,000 Merger with
CapitalSource Inc.
Lead Financial Advisor
Healthcare November 2013
$2,600,000,000 Acquisition of
Santarus, Inc.
Sole Financial Advisor
Energy November 2013
$6,000,000,000 Sale of Eagle Ford Shale Assets to
Devon Energy Corp.
Sole Financial Advisor
Healthcare November 2013
$2,600,000,000 Merger of
Patheon, Inc. and
DSM Pharmaceutical Products
Joint Financial Advisor
Telecom November 2013
$2,700,000,000 Sale of 70% Stake in Scout24 to
Hellman & Friedman
Joint Financial Advisor
Finance April 2014
$1,300,000,000 Acquisition of
DFC Global Corporation
Joint Financial Advisor
Metals/ January 2012
Mining
$1,250,000,000 Sale of assets in the Democratic Republic
of Congo to
Eurasian Natural Resources Corp.
Joint Financial Advisor
Healthcare February 2013
$2,070,000,000 Sale to
Cardinal Health, Inc.
Joint Financial Advisor
Business April 2013
Services
$1,100,000,000 Acquisition of
CompuCom Systems
Joint Financial Advisor
Technology June 2012
$1,000,000,000 Sale to Consortium led by
Apax Partners and
JMI Equity Sole Financial Advisor
Technology August 2012
$1,100,000,000 Acquisition of
Deltek, Inc.
Sole Financial Advisor
Real Estate February 2014
$1,125,000,000 Acquisition of two Medical Office
buildings in Boston from
Vertex Pharmaceuticals
Sole Financial Advisor
Finance March 2014
$1,800,000,000 Joint Venture between
American Express Global Business Travel and a
Certares-led Investor Group
Joint Financial Advisor
Key Points
56 investment bankers specialized
in mergers and acquisitions
worldwide
─ 36 M&A specialists in the US
─ 20 M&A specialists in Europe
Since January 1, 2012, Jefferies has
completed 46 M&A transactions
each valued in excess of $1 billion
Announced more than 225 sell-side
transactions since 2012,
representing over $140 billion
aggregate transaction value
Sell-side M&A comprises a higher
percentage of our revenue than any
other global banking firm
Sell-Side as a % of Total M&A
Revenue January 1, 2012 to Present
44%
46%
53%
53%
54%
54%
55%
59%
60%
60%
62%
64%
67%
72%
77%
Nomura
RBS
BAML
Barclays
Citi
Deutsche
UBS
MS
Rothschild
RBC
JPMorgan
CS
Lazard
Goldman
Jefferies
Energy June 2014
$2,500,000,000 Sale of Permian Basin Assets to
American Energy – Permian Basin
Sole Financial Advisor
16
Jefferies / October 2014 /
Jefferies Restructuring Capabilities
Key Points
20 investment
bankers specialized
in recapitalizations
and restructurings
worldwide, of which
8 are MDs and SVPs
Over 24 restructuring
transactions with
aggregate value of
over $80 billion
announced or
completed since the
beginning of 2012
Jefferies is one of
the only major
restructuring firms to
provide both capital
markets and
advisory services to
its clients
Jefferies is a leader
in executing out of
court transactions
with a unique ability
to recapitalize
balance sheets
outside of Chapter
11
Service Capabilities of the Top Restructuring Advisors
Active
Restructuring
03/31/2014 Financial Advisory Capital Raising Capital Markets
Bank Rank
Assets
($bn) Restructuring M&A
Public and
Private Equity
Public and
Private Debt
Bank
Debt Equity Trading
High Yield and
Bank Debt Trading
Blackstone 1 705.0
Miller Buckfire 2 626.0
Houlihan Lokey 3 59.5
Jefferies 4 45.2
Moelis 5 37.8
Lazard 6 32.8
Solic Capital 7 30.3
Duff & Phelps 8 26.0
UBS 9 22.6
Mesirow Financial 10 19.7
Centerview Partners 11 15.3
GLC Advisors 12 13.1
Source: The Daily Deal.
Telecom March 2012
$1,500,000,000 Restructuring
Advisor to the Company
Industrials December 2013
$29,600,000,000 Restructuring
Advisor to the Association of
Professional Flight Attendants
Technology September 2013
$6,571,000,000 Restructuring
Advisor to the Official Committee
of Unsecured Creditors
Telecom May 2012
$5,259,000,000 Restructuring
Advisor to the Examiner
Energy June 2012
$20,000,000,000 Restructuring
Advisor to the Trust
Deepwater Horizon
Oil Spill Trust
Energy November 2013
$3,500,000,000 Restructuring
Advisor to the Company
Consumer January 2012
$1,293,000,000 Restructuring
Advisor to the Company
Lodging February 2013
$1,900,000,000 Restructuring
Advisor to the Official Committee
of Unsecured Creditors
MSR Resort
Golf Course LLC
Maritime February 2014
$994,000,000 Restructuring
Advisor to the Official Committee
of Unsecured Creditors
Consumer April 2012
$900,000,000 Restructuring
Advisor to the Company
Healthcare September 2013
$600,000,000 Restructuring
Advisor to the Company
Technology Pending
$11,800,000,000 Restructuring
Advisor to the Official Committee
of Unsecured Creditors
17
Jefferies / October 2014 /
Jefferies Wealth / Asset Management
Wealth Management
Jefferies provides wealth management and related services to executives, families and high net-worth
individuals
– Focused on the ultra high net worth segment of the market
– Full service, open architecture platform
– Highly experienced group of advisors (average experience in excess of 20 years)
– Over $7 billion of private assets in custody (1)
Asset Management
Asset Management offers a variety of products for institutional and high net-worth clients
– Hedge Funds – systematic, multi-strategy, multi-asset-class investment programs utilizing a diverse set of
systematic alpha strategies applied to equity securities and global futures instruments
– Global Convertible Bonds – investing in global convertible bonds for both institutional and private
investors
(1) Assets include agreed upon notional values for managed accounts, non-fee paying accounts of affiliates and do not include subscriptions or redemptions made in the following period.
18
Jefferies / October 2014 /
Jefferies Wealth Management Platform
Key Points
Focused on the highest tier of wealthy
individuals
50 wealth managers with average wealth
management experience of 20 years
Wealth managers relationships with clients
average over 12 years
Over $7 billion of private client assets under
administration, none of which represent
hedge funds or institutional assets
Average wealth of core clients: $50 million
Capable of placing up to $50 million on each
equity and debt capital markets transaction
Wealth Managers by Region
London
16 years
average
experience
Wealth Management Services
Corporate Services
Corporate cash management
Directed share programs
Coordination of stock option, buybacks and restricted stock sales
Hedging and Monetization
Tax advantaged hedging strategies
Block trading/10b5-1 Selling Plans
Lending capabilities
Portfolio Management
Holistic asset allocation analysis
JEF Asset Management strategies
3rd Party Separate Managed Accounts
Private Equity
Municipal Bond Underwriting
Trust and Estate Planning
Coordination of Estate
Wealth transfer planning
Third Party Trust Administration
Custody
Consolidated reporting
Traditional brokerage
Check writing and wire transfer capabilities
Dallas
18 years average experience
Boston
30 years
average
experience
Atlanta
21 years average
experience
San Francisco
13 years average
experience
Los Angeles
10 years average
experience
New York
22 years
average
experience
Chicago
18 years average
experience
Dubai
17 years
average
experience
19
Jefferies / October 2014 /
Jefferies Equity Research Challenge
20
Jefferies / October 2014 /
Jefferies Equity Research Challenge
You are invited to take part in the Jefferies Research Challenge,
an exclusive initiative being launched today
Benefits to you:
Gives you first-hand experience working with a research analyst doing fundamental equity research
Can improve your CV and skillset required to be a successful equity analyst or asset manager
Will test your presentation, writing, modelling and valuation skills
Will give you the opportunity to broaden your industry network
The top three students will have the opportunity to present their investment case to a panel in
London with a dinner afterwards
You have the chance to win a 10-week paid internship at Jefferies in London in summer 2015 at a
competitive rate, subject to the necessary pre-employment process Jefferies is required to follow
21
Jefferies / October 2014 /
What You Can Expect From Us
Although you will be working independently, you will be able to access the Jefferies analyst who is
responsible for your allocated company by email and phone to get direction on what we are looking
for and analytics that will aid your assessment
You can expect to receive any relevant supporting documentation and industry materials as
relevant, which you would not be reasonably expected to be able to source yourself
Copies of sample equity research reports in your respective industry to provide information of
valuation, peers, the industry
22
Jefferies / October 2014 /
What We Expect From You
We expect you to work independently and not use other equity research reports
We expect a fully interactive financial model with:
Historical and forecast P&L / cash flow (including sensitivities)
Forecast balance sheet
Valuation model with comparables, DCF and sensitivities
The main deliverable is an equity research report in PowerPoint form
You must be able to provide all backup materials and files if needed.
Extra credit will be given for attention to detail – this is key.
Presentation Top Tips
Keep the main presentation to 5 slides and 5 minutes MAXIMUM delivery
5 min Q&A will take each presentation to 10 minutes.
Have a structured and ordered Appendix with supplementary information on the company including:
23
Executive summary
Market overview (e.g., growth drivers, competitive
dynamics, key players and value chain)
Business overview (e.g., divisions, products,
competitive positioning)
Historical financial analysis
Forecast financials (including key assumptions)
Capital structure
Assessment of company strategy
Valuation (e.g., comparables, DCF, ROIC, etc.)
Price Target and Recommendation (Buy, Hold, Underperform), based on the Jefferies ratings structure.
Key risks to the equity story
Sources or estimates next to relevant charts
Key areas of future diligence required (what areas would you propose are researched further?)
Jefferies / October 2014 /
Process, Submission, Materials and Time-Line
Apply on-line with a CV and maximum one page cover-letter (through Andreas Angelopoulos).
If successful you will be allocated a public-listed company from one of the industries covered by our
analysts.
The relevant industry expert at Jefferies (mentor) will be assigned to you.
You will receive a broad outline of the company chosen and your objectives, and will plan regular
progress calls to discuss any industry questions and the project.
All individuals will then receive a disclaimer to use in the presentation in due course.
Submit your final presentation and model by 23 February 2015 to Andreas Angelopoulos.
Closing date for registration: 29 October 2014
24
Jefferies / October 2014 /
Any Questions?
? 25
Jefferies / October 2014 /
This document is being furnished for informational purposes only and does not constitute an offer to sell or the solicitation of an offer to
purchase any security, future or other financial instrument or product. It is not intended to form the basis of an investment decision and has
not been verified. Jefferies International Limited (“Jefferies”) makes no recommendation or representation as to, and accepts no responsibility
or liability for, the accuracy or completeness of the information contained herein or any other information, whether written or oral, made
available and any liability therefore is expressly disclaimed. Such information is presented as of the date and, if applicable, time indicated and
Jefferies does not accept any responsibility for updating any such information.
Any simulations, projections, valuations and statistical analyses contained herein have been provided to assist the recipient in the evaluation
of the matters described herein; such simulations, projections, valuations and analyses may be based on subjective assessments and
assumptions and may utilise one among alternative methodologies that produce differing results; accordingly, such simulations, projections,
valuations and statistical analyses are not to be viewed as facts and should not be relied upon as an accurate representation of future events.
No representation or warranty is given as to any of the simulations or analyses, or as to the achievement or reasonableness of any future
projections or estimates, contained in this document.
Jefferies and its affiliates, officers, directors, employees and agents may from time to time hold long or short positions in, buy or sell (on a
principal basis or otherwise), or act as market maker in any securities, futures or other financial instruments or products related to matters
discussed herein and may make trading decisions that are different from or contrary to any of those which may be discussed. Jefferies is not
an adviser as to legal, taxation, accounting or regulatory matters in any jurisdiction, and is not providing any advice as to any such matter to
the recipient. Recipients of this document should take their own independent advice with respect to such matters.
In the UK, this document is intended for use only by persons who have professional experience in matters relating to investments falling
within Articles 19(5) and 49(2)(a) to (d) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (as amended), or
by persons to whom it can be otherwise lawfully distributed. Recipients of this document in jurisdictions outside the United Kingdom should
inform themselves about and observe any applicable legal requirements in relation to the receipt of this document.
Jefferies International Limited is authorised and regulated in the United Kingdom by the Financial Conduct Authority. Its registered office is at
Vintners Place, 68 Upper Thames Street, London EC4V 3BJ; telephone +44 20 7029 8000; facsimile +44 20 7029 8010.