8-K
false 0000096223 0000096223 2020-10-14 2020-10-14

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM 8-K

 

 

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): October 14, 2020

 

 

Jefferies Financial Group Inc.

(Exact name of registrant as specified in its charter)

 

 

 

New York   001-05721   13-2615557

(State of other jurisdiction of

incorporation or organization)

 

(Commission

File Number)

 

(IRS. Employer

Identification No.)

 

520 Madison Ave., New York, New York   10022
(Address of principal executive offices)   (Zip Code)

Registrant’s telephone number, including area code: 212-460-1900

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2, below):

 

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Exchange Act:

 

Title of each class

 

Trading

Symbol(s)

 

Name of each exchange

on which registered

Common Stock, Par Value $1.00 Per Share   JEF   New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company  

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐

 

 

 


Item 7.01

Regulation FD Disclosure.

On October 14, 2020, we posted our Investor Presentation to our website, www.jefferies.com, for use at our October 15, 2020 Investor Meeting. A copy of the Investor Presentation is attached hereto as Exhibit 99 and is incorporated herein by reference.

 

Item 9.01.

Financial Statements and Exhibits

The following exhibits are furnished with this report:

 

Number

  

Exhibit

99    Investor Presentation
104    Cover Page Interactive Data File (embedded within the Inline XBRL document)


SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

    JEFFERIES FINANCIAL GROUP INC.
Date: October 14, 2020      

/s/ Michael J. Sharp

     

Michael J. Sharp

     

Executive Vice President and General Counsel

EX-99

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


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 1995, regarding Jefferies Financial Group Inc., Jefferies Group LLC and their respective subsidiaries. These forward-looking statements reflect the respective issuer’s current views relating to, among other things, future revenues, earnings, operations, and other financial results, and may in clude statements of future performance, plans, and objectives. Forward-looking statements may also include statements pertaining to an issuer’s strategies for the future development of its business and products. These forward-looking statements are not historical facts and are based on the respective issuer’s management expectations, estimates, projections, beliefs and certain other assumptions, many of which, by their nature, are n i herently uncertain and beyond management’s control. It is possible that the actual results may differ, possibly materially, from the anticipated resuls t indicated in these forward- looking statements. Accordingly, readers are cautioned that any such forward-looking statements are not guarantees of future performance and are subject to certain risks, uncertainties and assumptions that are difficult to predict including, without limitation, the caution ary statements and risks set forth in the respective issuer’s Annual and Quarterly Reports and other reports or documents filed with, or furnished to, the SEC fromtime to time, which are accessible on the SEC website at sec.gov. This information should also be read in conjunction with each respective issuer’s Consolidated Financial Statements and the Notes thereto contained in the Annual, Quarterly and Periodic Reports filed by such issuer that are also accessible on the SEC website at sec.gov. Any forward-looking statements made by an issuer herein are unique to that issuer and are not to be attributed as statements made or endorsed by any other issuer. Not an Offer. These materials are provided for shareholders of Jefferies Financial Group Inc. and are for informational purposes only. These materials do not constitute an offer to sell, or a solicitation of an offer to buy, any security or instrument, or a solicitation of interestin any fund, account or strategy described herein. Performance Information. Past performance is not necessarily indicative of future results. See pages 66-71 at the back of this presentation for endnotes. 2Important 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 1995, regarding Jefferies Financial Group Inc., Jefferies Group LLC and their respective subsidiaries. These forward-looking statements reflect the respective issuer’s current views relating to, among other things, future revenues, earnings, operations, and other financial results, and may in clude statements of future performance, plans, and objectives. Forward-looking statements may also include statements pertaining to an issuer’s strategies for the future development of its business and products. These forward-looking statements are not historical facts and are based on the respective issuer’s management expectations, estimates, projections, beliefs and certain other assumptions, many of which, by their nature, are n i herently uncertain and beyond management’s control. It is possible that the actual results may differ, possibly materially, from the anticipated resuls t indicated in these forward- looking statements. Accordingly, readers are cautioned that any such forward-looking statements are not guarantees of future performance and are subject to certain risks, uncertainties and assumptions that are difficult to predict including, without limitation, the caution ary statements and risks set forth in the respective issuer’s Annual and Quarterly Reports and other reports or documents filed with, or furnished to, the SEC fromtime to time, which are accessible on the SEC website at sec.gov. This information should also be read in conjunction with each respective issuer’s Consolidated Financial Statements and the Notes thereto contained in the Annual, Quarterly and Periodic Reports filed by such issuer that are also accessible on the SEC website at sec.gov. Any forward-looking statements made by an issuer herein are unique to that issuer and are not to be attributed as statements made or endorsed by any other issuer. Not an Offer. These materials are provided for shareholders of Jefferies Financial Group Inc. and are for informational purposes only. These materials do not constitute an offer to sell, or a solicitation of an offer to buy, any security or instrument, or a solicitation of interestin any fund, account or strategy described herein. Performance Information. Past performance is not necessarily indicative of future results. See pages 66-71 at the back of this presentation for endnotes. 2


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 Pete Forlenza, Global Head of Equities 10:30 AM Fixed Income Fred Orlan, Global Head of Fixed Income Sol Kumin, Co-President of Leucadia Asset Management 10:50 AM Leucadia Asset Management Nick Daraviras, Co-President of Leucadia Asset Management 11:05 AM Merchant Banking Jimmy Hallac, Managing Director 11:20 AM Q & A See pages 66-71 at the back of this presentation for endnotes. 32020 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 Pete Forlenza, Global Head of Equities 10:30 AM Fixed Income Fred Orlan, Global Head of Fixed Income Sol Kumin, Co-President of Leucadia Asset Management 10:50 AM Leucadia Asset Management Nick Daraviras, Co-President of Leucadia Asset Management 11:05 AM Merchant Banking Jimmy Hallac, Managing Director 11:20 AM Q & A See pages 66-71 at the back of this presentation for endnotes. 3


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 $183 $157 $55 $29 $7 - ($300) ($600) 1990 1995 2000 2005 2010 2015 LTM Q3'20 See pages 66-71 at the back of this presentation for endnotes. 4Net Revenues and Earnings Since 1990 ($ 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 $183 $157 $55 $29 $7 - ($300) ($600) 1990 1995 2000 2005 2010 2015 LTM Q3'20 See pages 66-71 at the back of this presentation for endnotes. 4


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 to continue to gain market share and in technology to continue to increase productivity ─ Disciplined management of headcount and operating expenses ─ Maintain a conservative and efficient balance sheet, liquidity and risk profile § Finish simplifying our structure ─ Manage down smartly our legacy Merchant Banking portfolio § Drive shareholder value ─ Produce consistent and growing double digit ROTE at Jefferies Financial Group, as Jefferies Group becomes an ever larger port ion of our overall business ─ Return excess capital to shareholders through buybacks and dividends Our consolidated results and continued capital return for the first nine months of FY20 – against the backdrop of a challenging operating environment – demonstrate the durability, operating leverage and momentum of our firm and business model See pages 66-71 at the back of this presentation for endnotes. 5Jefferies 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 to continue to gain market share and in technology to continue to increase productivity ─ Disciplined management of headcount and operating expenses ─ Maintain a conservative and efficient balance sheet, liquidity and risk profile § Finish simplifying our structure ─ Manage down smartly our legacy Merchant Banking portfolio § Drive shareholder value ─ Produce consistent and growing double digit ROTE at Jefferies Financial Group, as Jefferies Group becomes an ever larger port ion of our overall business ─ Return excess capital to shareholders through buybacks and dividends Our consolidated results and continued capital return for the first nine months of FY20 – against the backdrop of a challenging operating environment – demonstrate the durability, operating leverage and momentum of our firm and business model See pages 66-71 at the back of this presentation for endnotes. 5


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 Sold 100% of our interest in Garcadia Consolidated primary financial services operations in Jefferies Group Transformation to a pure Financial Services firm accelerates 2019 Sold remaining 31% investment in National Beef Distributed Spectrum Brands shares Attained flexibility through control of HomeFed 2020 And Forward… Success of strategy reflected in market share gains and record results Leucadia Asset Management continues to evolve See pages 66-71 at the back of this presentation for endnotes. 6Evolution 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 Sold 100% of our interest in Garcadia Consolidated primary financial services operations in Jefferies Group Transformation to a pure Financial Services firm accelerates 2019 Sold remaining 31% investment in National Beef Distributed Spectrum Brands shares Attained flexibility through control of HomeFed 2020 And Forward… Success of strategy reflected in market share gains and record results Leucadia Asset Management continues to evolve See pages 66-71 at the back of this presentation for endnotes. 6


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 for endnotes. 7Transformation 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 for endnotes. 7


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 team – Equities continues to grow market share globally – Fixed Income is delivering record revenues and returns, with greater capital efficiency and lower risk – Asset Management has delivered solid investment returns in 2020, is growing Assets Under Management and continues to invest t o drive further growth § These results have been achieved while maintaining our historic conservative balance sheet, risk and liquidity profile – Our liquidity buffer at Jefferies Group is at an all-time high of $8.1 billion – VaR and Level 3 assets are in line with historical levels – We just issued $500 million in senior unsecured twelve- year debt, partially refinancing $750 million in existing debt maturing i n 2023. Our next upcoming maturity of $750 million (due Apr-21) was refinanced with debt issuances earlier in 2019 and 2020 Jefferies Group LLC Quarter Ended, YTD ($ Millions) 2/29/20 5/31/20 8/31/20 8/31/20 Net Revenues $1,171 $1,034 $1,383 $3,589 Earnings Before Income Taxes $235 $173 $363 $772 Net Earnings $171 $129 $268 $568 (1) Return on Tangible Equity (Annualized) 16.1% 11.6% 23.2% 17.7% See pages 66-71 at the back of this presentation for endnotes. 8Growth 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 team – Equities continues to grow market share globally – Fixed Income is delivering record revenues and returns, with greater capital efficiency and lower risk – Asset Management has delivered solid investment returns in 2020, is growing Assets Under Management and continues to invest t o drive further growth § These results have been achieved while maintaining our historic conservative balance sheet, risk and liquidity profile – Our liquidity buffer at Jefferies Group is at an all-time high of $8.1 billion – VaR and Level 3 assets are in line with historical levels – We just issued $500 million in senior unsecured twelve- year debt, partially refinancing $750 million in existing debt maturing i n 2023. Our next upcoming maturity of $750 million (due Apr-21) was refinanced with debt issuances earlier in 2019 and 2020 Jefferies Group LLC Quarter Ended, YTD ($ Millions) 2/29/20 5/31/20 8/31/20 8/31/20 Net Revenues $1,171 $1,034 $1,383 $3,589 Earnings Before Income Taxes $235 $173 $363 $772 Net Earnings $171 $129 $268 $568 (1) Return on Tangible Equity (Annualized) 16.1% 11.6% 23.2% 17.7% See pages 66-71 at the back of this presentation for endnotes. 8


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 $9 - 1990 1995 2000 2005 2010 2015 LTM Q3'20 See pages 66-71 at the back of this presentation for endnotes. 9High Double Digit Growth in Investment Banking Revenues (1) Investment Banking Net Revenues ($ 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. 9


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 Market Share 1 1 1 7.2% Goldman Sachs 11.0% Goldman Sachs 8.9% Jefferies 2 2 2 5.5% JPMorgan 9.7% JPMorgan 7.5% Goldman Sachs 3 3 3 5.0% Morgan Stanley 7.3% Morgan Stanley 7.4% JPMorgan 4 Citi 4.8% 4 Jefferies 5.2% 4 Morgan Stanley 4.9% 5 BofA Securities 4.7% 5 Centerview Partners 5.2% 5 Houlihan Lokey 4.1% 6 Centerview Partners 4.5% 6 BofA Securities 4.6% 6 Credit Suisse 3.8% 7 Jefferies 4.3% 7 Citi 4.1% 7 BofA Securities 3.8% 8 Credit Suisse 3.7% 8 Credit Suisse 3.5% 8 Rothschild & Co 3.6% 9 Evercore Inc 3.3% 9 Evercore Inc 3.5% 9 Evercore Inc 3.6% 10 10 10 Lazard 3.2% Lazard 3.3% Lazard 2.6% All Global M&A 2018 2019 2020 YTD (as of 8/31/20) Rank Investment Bank Fee Market Share Rank Investment Bank Fee Market Share Rank Investment Bank Fee Market Share 1 Goldman Sachs 10.6% 1 Goldman Sachs 10.9% 1 Goldman Sachs 10.3% 2 JPMorgan 8.6% 2 JPMorgan 9.0% 2 JPMorgan 8.9% 3 3 3 Morgan Stanley 7.5% Morgan Stanley 7.1% Morgan Stanley 7.9% 4 4 4 Citi 4.5% BofA Securities 5.2% BofA Securities 5.9% 5 5 5 BofA Securities 4.2% Citi 4.6% Citi 4.8% 6 6 6 Barclays 3.9% Barclays 3.9% Credit Suisse 3.7% 7 Credit Suisse 3.8% 7 Credit Suisse 3.2% 7 Centerview Partners 3.7% 8 Lazard 3.4% 8 Lazard 3.2% 8 Jefferies 3.5% 9 Rothschild & Co 3.3% 9 Evercore Inc 2.9% 9 Lazard 3.2% 10 Evercore Inc 2.8% 10 Jefferies 2.8% 10 Evercore Inc 3.1% 11 Jefferies 2.7% See pages 66-71 at the back of this presentation for endnotes. 10Continued 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 Market Share 1 1 1 7.2% Goldman Sachs 11.0% Goldman Sachs 8.9% Jefferies 2 2 2 5.5% JPMorgan 9.7% JPMorgan 7.5% Goldman Sachs 3 3 3 5.0% Morgan Stanley 7.3% Morgan Stanley 7.4% JPMorgan 4 Citi 4.8% 4 Jefferies 5.2% 4 Morgan Stanley 4.9% 5 BofA Securities 4.7% 5 Centerview Partners 5.2% 5 Houlihan Lokey 4.1% 6 Centerview Partners 4.5% 6 BofA Securities 4.6% 6 Credit Suisse 3.8% 7 Jefferies 4.3% 7 Citi 4.1% 7 BofA Securities 3.8% 8 Credit Suisse 3.7% 8 Credit Suisse 3.5% 8 Rothschild & Co 3.6% 9 Evercore Inc 3.3% 9 Evercore Inc 3.5% 9 Evercore Inc 3.6% 10 10 10 Lazard 3.2% Lazard 3.3% Lazard 2.6% All Global M&A 2018 2019 2020 YTD (as of 8/31/20) Rank Investment Bank Fee Market Share Rank Investment Bank Fee Market Share Rank Investment Bank Fee Market Share 1 Goldman Sachs 10.6% 1 Goldman Sachs 10.9% 1 Goldman Sachs 10.3% 2 JPMorgan 8.6% 2 JPMorgan 9.0% 2 JPMorgan 8.9% 3 3 3 Morgan Stanley 7.5% Morgan Stanley 7.1% Morgan Stanley 7.9% 4 4 4 Citi 4.5% BofA Securities 5.2% BofA Securities 5.9% 5 5 5 BofA Securities 4.2% Citi 4.6% Citi 4.8% 6 6 6 Barclays 3.9% Barclays 3.9% Credit Suisse 3.7% 7 Credit Suisse 3.8% 7 Credit Suisse 3.2% 7 Centerview Partners 3.7% 8 Lazard 3.4% 8 Lazard 3.2% 8 Jefferies 3.5% 9 Rothschild & Co 3.3% 9 Evercore Inc 2.9% 9 Lazard 3.2% 10 Evercore Inc 2.8% 10 Jefferies 2.8% 10 Evercore Inc 3.1% 11 Jefferies 2.7% See pages 66-71 at the back of this presentation for endnotes. 10


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 Stanley 7.4% 3 3 Morgan Stanley 9.9% 4 4 Citi 6.0% 5 Citi 7.7% 5 BofA Securities 5.4% Credit Suisse 5.7% 6 6 Credit Suisse 4.5% 7 Jefferies 3.7% 7 BNP Paribas 3.8% Barclays 3.6% Jefferies 3.1% 8 8 Cowen & Company 2.5% 9 9 Barclays 2.9% 10 SVB Leerink 2.0% 10 UBS 2.7% U.S. Leveraged Loans: Single B and Below U.S. Leveraged Loans: Single B and Below (1) LTM Q3 2020 Since Start of COVID-19 Pandemic Rank Investment Bank Fee Market Share Rank Investment Bank Fee Market Share JPMorgan 9.4% 1 JPMorgan 10.5% 1 2 BofA Securities 7.9% 2 BofA Securities 9.9% Credit Suisse 7.0% 3 Credit Suisse 6.9% 3 4 Barclays 5.1% 4 Jefferies 5.4% 5 Goldman Sachs 4.5% 5 Morgan Stanley 4.6% Jefferies 4.5% 6 6 Barclays 4.5% 7 Morgan Stanley 4.0% 7 Goldman Sachs 4.4% Deutsche Bank 3.8% 8 Wells Fargo 4.1% 8 9 RBC Capital Markets 3.7% 9 Deutsche Bank 4.0% 10 KKR 3.7% 10 KKR 3.5% See pages 66-71 at the back of this presentation for endnotes. 11Strength 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 Stanley 7.4% 3 3 Morgan Stanley 9.9% 4 4 Citi 6.0% 5 Citi 7.7% 5 BofA Securities 5.4% Credit Suisse 5.7% 6 6 Credit Suisse 4.5% 7 Jefferies 3.7% 7 BNP Paribas 3.8% Barclays 3.6% Jefferies 3.1% 8 8 Cowen & Company 2.5% 9 9 Barclays 2.9% 10 SVB Leerink 2.0% 10 UBS 2.7% U.S. Leveraged Loans: Single B and Below U.S. Leveraged Loans: Single B and Below (1) LTM Q3 2020 Since Start of COVID-19 Pandemic Rank Investment Bank Fee Market Share Rank Investment Bank Fee Market Share JPMorgan 9.4% 1 JPMorgan 10.5% 1 2 BofA Securities 7.9% 2 BofA Securities 9.9% Credit Suisse 7.0% 3 Credit Suisse 6.9% 3 4 Barclays 5.1% 4 Jefferies 5.4% 5 Goldman Sachs 4.5% 5 Morgan Stanley 4.6% Jefferies 4.5% 6 6 Barclays 4.5% 7 Morgan Stanley 4.0% 7 Goldman Sachs 4.4% Deutsche Bank 3.8% 8 Wells Fargo 4.1% 8 9 RBC Capital Markets 3.7% 9 Deutsche Bank 4.0% 10 KKR 3.7% 10 KKR 3.5% See pages 66-71 at the back of this presentation for endnotes. 11


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 $110.4 $108.1 $78.3 (1) Revenue Pool Morgan Stanley 2 Jefferies 0.9 1.3 1.3 1.2 1.5 1.2 Goldman Sachs 3 Jefferies Share (Capital 0.8% 1.1% 1.2% 1.1% 1.3% 1.6% Markets) JPMorgan 4 (1) $49.3 $42.7 $41.9 $46.1 $41.2 $22.7 Citi Equities Revenue Pool 5 Jefferies 0.8 0.6 0.7 0.7 0.8 0.5 Bank of America 6 1.5% 1.4% 1.6% 1.4% 1.9% 2.1% Jefferies Share (Equities) Credit Suisse 7 UBS 8 (10%) (1) $70.2 $76.0 $68.3 $64.4 $66.9 $55.5 FICC Revenue Pool (16%) Instinet 9 (2) Net Revenues Average Average Jefferies 0.2 0.7 0.6 0.6 0.7 0.7 Capital Headcount 10 Virtu Financial Jefferies Share (Fixed 0.3% 0.9% 0.9% 0.9% 1.0% 1.3% Income) See pages 66-71 at the back of this presentation for endnotes. 12Steady Gains Across Capital Markets Capital Markets Equities Fixed Income Revenues and Market Share Most Helpful Execution Brokers During % Change – LTM Q3’20 vs. LTM Q1’16 (3) COVID-Related Market Crisis ($ Billions) (2) 2015 2016 2017 2018 2019 1H'20 1 Equities & FICC 636% $119.5 $118.7 $110.2 $110.4 $108.1 $78.3 (1) Revenue Pool Morgan Stanley 2 Jefferies 0.9 1.3 1.3 1.2 1.5 1.2 Goldman Sachs 3 Jefferies Share (Capital 0.8% 1.1% 1.2% 1.1% 1.3% 1.6% Markets) JPMorgan 4 (1) $49.3 $42.7 $41.9 $46.1 $41.2 $22.7 Citi Equities Revenue Pool 5 Jefferies 0.8 0.6 0.7 0.7 0.8 0.5 Bank of America 6 1.5% 1.4% 1.6% 1.4% 1.9% 2.1% Jefferies Share (Equities) Credit Suisse 7 UBS 8 (10%) (1) $70.2 $76.0 $68.3 $64.4 $66.9 $55.5 FICC Revenue Pool (16%) Instinet 9 (2) Net Revenues Average Average Jefferies 0.2 0.7 0.6 0.6 0.7 0.7 Capital Headcount 10 Virtu Financial Jefferies Share (Fixed 0.3% 0.9% 0.9% 0.9% 1.0% 1.3% Income) See pages 66-71 at the back of this presentation for endnotes. 12


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 management activities – Four more strategies added to platform since last Investor Day § Dymon Asia (Asian Multi-Strategy) § Riposte (Contrarian Long/Short Equity) § 3|5|2 Capital (Consumer-Focused ABS) § FourSixThree (Distressed Credit and Special Situations) – In fundraising for several additional strategies, including: § Point Bonita (Trade Finance) § Solanas ESG Sustainability UCITS (Alternative Energy) § Stonyrock (GP Stakes) – Solid demand for multi-manager offerings (Dymon, Schonfeld and Weiss) and capital markets -driven strategy (Monashee) § Broad reach of Jefferies providing consistent flow of attractive opportunities § Enhanced management team and added to marketing efforts – Appointed Co-Presidents – Added Heads of Investor Relations and Asia Marketing See pages 66-71 at the back of this presentation for endnotes. 13Growth 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 management activities – Four more strategies added to platform since last Investor Day § Dymon Asia (Asian Multi-Strategy) § Riposte (Contrarian Long/Short Equity) § 3|5|2 Capital (Consumer-Focused ABS) § FourSixThree (Distressed Credit and Special Situations) – In fundraising for several additional strategies, including: § Point Bonita (Trade Finance) § Solanas ESG Sustainability UCITS (Alternative Energy) § Stonyrock (GP Stakes) – Solid demand for multi-manager offerings (Dymon, Schonfeld and Weiss) and capital markets -driven strategy (Monashee) § Broad reach of Jefferies providing consistent flow of attractive opportunities § Enhanced management team and added to marketing efforts – Appointed Co-Presidents – Added Heads of Investor Relations and Asia Marketing See pages 66-71 at the back of this presentation for endnotes. 13


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 for further leadership and client-focused talent § Further ingrain Jefferies’ unique culture across our increasingly diverse employee base § External sources of talent and growth not evergreen Key areas§ Talent acquisition, development and retention § Fostering community and instilling our values § Commitment to diversity and inclusion § Future of Work Emerging wins§ Over 50% of our 2020 NY interns in Investment Banking and Capital Markets were female § Employee networks grew from one to six since 2018 § Increase in cross-divisional training and mentoring programs Both initiatives are: § 100% business-driven § Directly contributing to our gaining market share and increasing ROTE See pages 66-71 at the back of this presentation for endnotes. 14Initiatives 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 for further leadership and client-focused talent § Further ingrain Jefferies’ unique culture across our increasingly diverse employee base § External sources of talent and growth not evergreen Key areas§ Talent acquisition, development and retention § Fostering community and instilling our values § Commitment to diversity and inclusion § Future of Work Emerging wins§ Over 50% of our 2020 NY interns in Investment Banking and Capital Markets were female § Employee networks grew from one to six since 2018 § Increase in cross-divisional training and mentoring programs Both initiatives are: § 100% business-driven § Directly contributing to our gaining market share and increasing ROTE See pages 66-71 at the back of this presentation for endnotes. 14


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, monetization and optimization across the firm, including global collaboration, idea generation and coordinated client coverage § Digital innovation allows Jefferies the advantage of staying ahead of the evolving market environment and changing client demands § Leveraging data as an asset and a deep focus on analytics allows for better, more integrated client coverage Key areas§ Global CRM, mobility and alerts for increased connectivity and collaboration § Intelligent dashboards for actionable insights § Analytical products for anticipating client needs § Monetization of our differentiated firmwide content Emerging wins§ Capital Markets: Analytics tools leveraging machine learning, digital marketing campaigns helping improve results in market surveys such as Institutional Investor, global alerts, intuitive and actionable business dashboards § Investment Banking: Mobile client intelligence app, predictive analytics and integrating relevant third -party data § Firmwide: Global relationship finder, collaboration tools and intuitive CRM Both initiatives are: § 100% business-driven § Directly contributing to our gaining market share and increasing ROTE See pages 66-71 at the back of this presentation for endnotes. 15Initiatives 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, monetization and optimization across the firm, including global collaboration, idea generation and coordinated client coverage § Digital innovation allows Jefferies the advantage of staying ahead of the evolving market environment and changing client demands § Leveraging data as an asset and a deep focus on analytics allows for better, more integrated client coverage Key areas§ Global CRM, mobility and alerts for increased connectivity and collaboration § Intelligent dashboards for actionable insights § Analytical products for anticipating client needs § Monetization of our differentiated firmwide content Emerging wins§ Capital Markets: Analytics tools leveraging machine learning, digital marketing campaigns helping improve results in market surveys such as Institutional Investor, global alerts, intuitive and actionable business dashboards § Investment Banking: Mobile client intelligence app, predictive analytics and integrating relevant third -party data § Firmwide: Global relationship finder, collaboration tools and intuitive CRM Both initiatives are: § 100% business-driven § Directly contributing to our gaining market share and increasing ROTE See pages 66-71 at the back of this presentation for endnotes. 15


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 ─ $743 million returned to shareholders in first nine months of fiscal 2020 through share repurchases and cash dividends As of August 31, 2020 ($ Millions) Since 4/1/18 Comments Share Repurchases $2,269 R epurchased an aggregate of 108.6 million shares at an average price of $20.90 per share Cash Dividends 388 Quarterly dividend rate of 15 cents per share Special Dividend 451 Spectrum Brands common stock (NYSE:SPB) distributed as special dividend on Oct. 11, 2019 Total Capital Returned to Shareholders $3,108 See pages 66-71 at the back of this presentation for endnotes. 1640% 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 ─ $743 million returned to shareholders in first nine months of fiscal 2020 through share repurchases and cash dividends As of August 31, 2020 ($ Millions) Since 4/1/18 Comments Share Repurchases $2,269 R epurchased an aggregate of 108.6 million shares at an average price of $20.90 per share Cash Dividends 388 Quarterly dividend rate of 15 cents per share Special Dividend 451 Spectrum Brands common stock (NYSE:SPB) distributed as special dividend on Oct. 11, 2019 Total Capital Returned to Shareholders $3,108 See pages 66-71 at the back of this presentation for endnotes. 16


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 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 See pages 66-71 at the back of this presentation for endnotes. 17Share 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 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 See pages 66-71 at the back of this presentation for endnotes. 17


Financial ReviewFinancial Review


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 Equities 774 1,002 Fixed Income 681 1,241 Total Capital Markets 1,455 2,242 Other 59 95 Total Investment Banking and Capital Markets 3,036 4,213 Asset Management Fees and Revenues 20 27 Investment Return 97 143 Allocated Net Interest (41) (46) Total Asset Management 77 123 Net Revenues 3,113 4,336 Non-Compensation Expenses 1,104 1,186 Compensation and Benefits 1,684 2,355 Total Non-Interest Expenses 2,788 3,541 Earnings Before Income Taxes $325 $796 See pages 66-71 at the back of this presentation for endnotes. 19Jefferies Group – Operating Results ($ 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 Equities 774 1,002 Fixed Income 681 1,241 Total Capital Markets 1,455 2,242 Other 59 95 Total Investment Banking and Capital Markets 3,036 4,213 Asset Management Fees and Revenues 20 27 Investment Return 97 143 Allocated Net Interest (41) (46) Total Asset Management 77 123 Net Revenues 3,113 4,336 Non-Compensation Expenses 1,104 1,186 Compensation and Benefits 1,684 2,355 Total Non-Interest Expenses 2,788 3,541 Earnings Before Income Taxes $325 $796 See pages 66-71 at the back of this presentation for endnotes. 19


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 § Global Excess Liquidity as % of Tangible Assets: 18.0% § Clearing Corp Eligible Repos: 69% § Average Term of Non-Clearing Corp Eligible Repos: 190 days Conservative Funding Model § Average Term for Equity Financing: 78 days § Total Capital: $12.5 billion (Equity: $6.5 billion, Long-Term Debt: $6.0 billion) Sound, Long-Term Capital Base§ Average Maturity of Unsecured Long-Term Debt: 9.6 years See pages 66-71 at the back of this presentation for endnotes. 20Jefferies 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 § Global Excess Liquidity as % of Tangible Assets: 18.0% § Clearing Corp Eligible Repos: 69% § Average Term of Non-Clearing Corp Eligible Repos: 190 days Conservative Funding Model § Average Term for Equity Financing: 78 days § Total Capital: $12.5 billion (Equity: $6.5 billion, Long-Term Debt: $6.0 billion) Sound, Long-Term Capital Base§ Average Maturity of Unsecured Long-Term Debt: 9.6 years See pages 66-71 at the back of this presentation for endnotes. 20


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 Instruments Owned 17,556 Securities Loaned 1,930 Loans to and Investments in Related Parties 893 Securities Sold Under Agreements to Repurchase 7,259 Securities Borrowed 7,268 Other Secured Financings 2,792 Securities Received as Collateral 4 Obligations to Return Securities Received as Collateral 4 Securities Purchased Under Agreements to Resell 5,327 Payables to Brokers, Dealers and Clearing Organizations 2,546 Receivables from Brokers, Dealers and Clearing Organizations 2,749 Payables to Customers 3,937 Receivables from Customers 957 Accrued Expenses and Other Liabilities 2,326 Fees, Interest and Other Receivables 350 Operating Lease Liability 573 Premises and Equipment 864 Long-term Debt 6,988 Goodwill 1,644 Total Liabilities $40,156 Other Assets 1,312 Total Jefferies Group LLC Member’s Equity 6,488 Noncontrolling Interests 17 Total Equity $6,504 Total Assets $46,660 Total Liabilities and Equity $46,660 (1) Leverage: 7.2x (2) Tangible Gross Leverage: 9.6x See pages 66-71 at the back of this presentation for endnotes. 21Jefferies Group – Liquid Balance Sheet, Modest Leverage ($ 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 Instruments Owned 17,556 Securities Loaned 1,930 Loans to and Investments in Related Parties 893 Securities Sold Under Agreements to Repurchase 7,259 Securities Borrowed 7,268 Other Secured Financings 2,792 Securities Received as Collateral 4 Obligations to Return Securities Received as Collateral 4 Securities Purchased Under Agreements to Resell 5,327 Payables to Brokers, Dealers and Clearing Organizations 2,546 Receivables from Brokers, Dealers and Clearing Organizations 2,749 Payables to Customers 3,937 Receivables from Customers 957 Accrued Expenses and Other Liabilities 2,326 Fees, Interest and Other Receivables 350 Operating Lease Liability 573 Premises and Equipment 864 Long-term Debt 6,988 Goodwill 1,644 Total Liabilities $40,156 Other Assets 1,312 Total Jefferies Group LLC Member’s Equity 6,488 Noncontrolling Interests 17 Total Equity $6,504 Total Assets $46,660 Total Liabilities and Equity $46,660 (1) Leverage: 7.2x (2) Tangible Gross Leverage: 9.6x See pages 66-71 at the back of this presentation for endnotes. 21


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 Corporate and Other 37 25 19 Net Revenues 3,893 2,787 4,150 Compensation and Benefits 1,825 1,367 2,029 Non-Compensation Expenses 1,792 1,296 1,406 Total Expenses 3,617 2,663 3,435 Income Before Income Taxes and Income Related to Associated Companies 276 124 715 Income (Loss) Related to Associated Companies 203 122 (70) Income Before Income Taxes 479 246 646 Income Tax Provision (Benefit) (Adjusted) 61 22 185 Net Income (Adjusted) 418 224 460 Noncontrolling Interest and Preferred Stock Dividends (3) (5) 2 Net Income Attributable to Jefferies Financial Group Inc. Common Shareholders (Adjusted) $415 $219 $462 See pages 66-71 at the back of this presentation for endnotes. 22Jefferies Financial Group – Operating Results ($ 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 Corporate and Other 37 25 19 Net Revenues 3,893 2,787 4,150 Compensation and Benefits 1,825 1,367 2,029 Non-Compensation Expenses 1,792 1,296 1,406 Total Expenses 3,617 2,663 3,435 Income Before Income Taxes and Income Related to Associated Companies 276 124 715 Income (Loss) Related to Associated Companies 203 122 (70) Income Before Income Taxes 479 246 646 Income Tax Provision (Benefit) (Adjusted) 61 22 185 Net Income (Adjusted) 418 224 460 Noncontrolling Interest and Preferred Stock Dividends (3) (5) 2 Net Income Attributable to Jefferies Financial Group Inc. Common Shareholders (Adjusted) $415 $219 $462 See pages 66-71 at the back of this presentation for endnotes. 22


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 Purchased 10,995 Financial Instruments Owned 17,987 Securities Loaned 1,930 Loans to and Investments in Associated Companies 1,539 Securities Sold Under Agreements to Repurchase 7,259 Securities Borrowed 7,268 Other Secured Financings 3,376 Securities Purchased Under Agreements to Resell 5,327 Obligation to Return Securities Received as Collateral 4 Securities Received as Collateral 4 Lease Liabilities 598 Receivables 5,029 Payables, Expense Accruals and Other Liabilities 8,793 Property, Equipment and Leasehold Improvements 916 Long-Term Debt 8,420 Intangible Assets, net and Goodwill 1,915 Total Liabilities $42,180 Other Assets 2,375 Redeemable Noncontrolling Interests 24 Mandatorily Redeemable Convertible Preferred Shares 125 Total Mezzanine Equity $149 Total Jefferies Financial Group Inc. Shareholders’ Equity 9,411 Noncontrolling Interests 34 Total Equity $9,444 Total Assets $51,774 Total Liabilities and Equity $51,774 See pages 66-71 at the back of this presentation for endnotes. 23Jefferies Financial Group – Balance Sheet Overview ($ 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 Purchased 10,995 Financial Instruments Owned 17,987 Securities Loaned 1,930 Loans to and Investments in Associated Companies 1,539 Securities Sold Under Agreements to Repurchase 7,259 Securities Borrowed 7,268 Other Secured Financings 3,376 Securities Purchased Under Agreements to Resell 5,327 Obligation to Return Securities Received as Collateral 4 Securities Received as Collateral 4 Lease Liabilities 598 Receivables 5,029 Payables, Expense Accruals and Other Liabilities 8,793 Property, Equipment and Leasehold Improvements 916 Long-Term Debt 8,420 Intangible Assets, net and Goodwill 1,915 Total Liabilities $42,180 Other Assets 2,375 Redeemable Noncontrolling Interests 24 Mandatorily Redeemable Convertible Preferred Shares 125 Total Mezzanine Equity $149 Total Jefferies Financial Group Inc. Shareholders’ Equity 9,411 Noncontrolling Interests 34 Total Equity $9,444 Total Assets $51,774 Total Liabilities and Equity $51,774 See pages 66-71 at the back of this presentation for endnotes. 23


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 million Parent-Level Liquidity ─ 8/31/20 Liquidity: $1.6 billion (1) Cumulative Capital Returned Since 4/1/18 ($ Millions) $3,500 50% $3,108 $2,941 $3,000 $2,734 40% $2,366 $2,500 30% $2,000 $1,723 $1,678 $1,491 $1,500 $1,259 20% $1,000 $707 $616 10% $500 - - Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Total Liquidity (Jefferies Financial Group & $7.7bn $8.4bn $8.2bn $7.2bn $7.0bn $7.5bn $9.1bn $8.3bn $8.2bn $9.7bn Jefferies Group): (1) (2) Cumulative Capital Returned % of TBV at 4/1/18 See pages 66-71 at the back of this presentation for endnotes. 24Jefferies 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 million Parent-Level Liquidity ─ 8/31/20 Liquidity: $1.6 billion (1) Cumulative Capital Returned Since 4/1/18 ($ Millions) $3,500 50% $3,108 $2,941 $3,000 $2,734 40% $2,366 $2,500 30% $2,000 $1,723 $1,678 $1,491 $1,500 $1,259 20% $1,000 $707 $616 10% $500 - - Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Total Liquidity (Jefferies Financial Group & $7.7bn $8.4bn $8.2bn $7.2bn $7.0bn $7.5bn $9.1bn $8.3bn $8.2bn $9.7bn Jefferies Group): (1) (2) Cumulative Capital Returned % of TBV at 4/1/18 See pages 66-71 at the back of this presentation for endnotes. 24


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 Jefferies Financial Group, leading Linkem $630 to lower volatility of consolidated results (2) 557 Real Estate Assets 547 Oil and Gas (Vitesse and JETX) Idaho Timber 155 FXCM 144 Investments in Public Companies 178 323 Other $2,534 Total Portfolio (3) Merchant Banking: Tangible Book Value ($ Millions) 51% 50% $4,000 50% 40% $3,500 $3,888 $3,823 40% $3,000 $3,297 $2,500 27% 26% 30% $2,000 $2,092 20% $1,500 $1,919 $1,000 10% $500 - - 12/31/16 12/31/17 11/30/18 11/30/19 8/31/20 Tangible Book Value % of Total TBV See pages 66-71 at the back of this presentation for endnotes. 25Realizing Value From the Merchant Banking Portfolio (1) Remaining Merchant Banking Portfolio – As of 5/31/20 (Adjusted) § As we have realized the value of the portfolio through ($ Millions) profitable exits, Merchant Banking has become a less Estimated Fair Market Value significant portion of Jefferies Financial Group, leading Linkem $630 to lower volatility of consolidated results (2) 557 Real Estate Assets 547 Oil and Gas (Vitesse and JETX) Idaho Timber 155 FXCM 144 Investments in Public Companies 178 323 Other $2,534 Total Portfolio (3) Merchant Banking: Tangible Book Value ($ Millions) 51% 50% $4,000 50% 40% $3,500 $3,888 $3,823 40% $3,000 $3,297 $2,500 27% 26% 30% $2,000 $2,092 20% $1,500 $1,919 $1,000 10% $500 - - 12/31/16 12/31/17 11/30/18 11/30/19 8/31/20 Tangible Book Value % of Total TBV See pages 66-71 at the back of this presentation for endnotes. 25


Investment BankingInvestment Banking


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 § Approximately two-thirds of our LTM revenue was from repeat clients Investment Banking Sector Focus Product Capabilities Regions Consumer Energy Equity Underwriting Americas Financial Services Healthcare Debt Underwriting EMEA Industrials TMT Mergers & Acquisitions APAC REGAL Public Finance Debt Advisory & Restructuring Financial Sponsors See pages 66-71 at the back of this presentation for endnotes. 27Investment 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 § Approximately two-thirds of our LTM revenue was from repeat clients Investment Banking Sector Focus Product Capabilities Regions Consumer Energy Equity Underwriting Americas Financial Services Healthcare Debt Underwriting EMEA Industrials TMT Mergers & Acquisitions APAC REGAL Public Finance Debt Advisory & Restructuring Financial Sponsors See pages 66-71 at the back of this presentation for endnotes. 27


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 § Education Technology§ Aviation§ Generic & Specialty Pharmaceuticals§ Oil & Gas Midstream § Enterprise Resource & Content § Aerospace & Defense§ Healthcare Information Technology§ Oil Field Services Management Software§ Building & Construction Materials§ Life Sciences Tools & Services § Entertainment§ Business Services§ Managed Care & Payor Services Municipal Finance § Governance, Reg & Compliance Software§ Industrial Services§ Medical & Dental Products § Human Capital Management Software§ Industrial Technology§ Medical Devices § Airports and Transportation § Infrastructure Software & Cloud Services§ Capital Goods§ Large Cap Pharmaceuticals § Healthcare § Internet§ Chemicals§ Pharmaceutical Services § Higher Education § Marketing Services § Distribution Services§ Post Acute Care Services § Housing § Mobility§ Logistics & Transportation§ Retail Healthcare § Opportunity Zones § Omnicommerce§ Maritime§ Veterinary Healthcare § Tobacco Settlements § Publishing & Broadcasting§ Metals § Payments & Processing§ Mining Consumer Financial Services § Real Estate, Mortgage & Insurance § Paper & Packaging Software§ Power & Renewables § Apparel Retailing§ Banks & Depositories § Security Software§ Utilities § Beauty & Personal Care Products§ Broker Dealers § Semiconductors § Consumer Products§ Bank Technology § Technology Enabled Services § Fitness, Wellness & Consumer Services§ Insurance REGAL § Food and Beverage Products§ Insurance Services § Hardlines Retailing§ Market Structure § Gaming § Omnicommerce§ Commercial Finance § Healthcare REITs § Restaurants & Food Service§ Consumer Finance § Industrial REITs § Luxury Goods§ Investment Funds § Leisure § Lodging § Multifamily & Office REITs § Self-Storage REITs See pages 66-71 at the back of this presentation for endnotes. 28Specialized 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 § Education Technology§ Aviation§ Generic & Specialty Pharmaceuticals§ Oil & Gas Midstream § Enterprise Resource & Content § Aerospace & Defense§ Healthcare Information Technology§ Oil Field Services Management Software§ Building & Construction Materials§ Life Sciences Tools & Services § Entertainment§ Business Services§ Managed Care & Payor Services Municipal Finance § Governance, Reg & Compliance Software§ Industrial Services§ Medical & Dental Products § Human Capital Management Software§ Industrial Technology§ Medical Devices § Airports and Transportation § Infrastructure Software & Cloud Services§ Capital Goods§ Large Cap Pharmaceuticals § Healthcare § Internet§ Chemicals§ Pharmaceutical Services § Higher Education § Marketing Services § Distribution Services§ Post Acute Care Services § Housing § Mobility§ Logistics & Transportation§ Retail Healthcare § Opportunity Zones § Omnicommerce§ Maritime§ Veterinary Healthcare § Tobacco Settlements § Publishing & Broadcasting§ Metals § Payments & Processing§ Mining Consumer Financial Services § Real Estate, Mortgage & Insurance § Paper & Packaging Software§ Power & Renewables § Apparel Retailing§ Banks & Depositories § Security Software§ Utilities § Beauty & Personal Care Products§ Broker Dealers § Semiconductors § Consumer Products§ Bank Technology § Technology Enabled Services § Fitness, Wellness & Consumer Services§ Insurance REGAL § Food and Beverage Products§ Insurance Services § Hardlines Retailing§ Market Structure § Gaming § Omnicommerce§ Commercial Finance § Healthcare REITs § Restaurants & Food Service§ Consumer Finance § Industrial REITs § Luxury Goods§ Investment Funds § Leisure § Lodging § Multifamily & Office REITs § Self-Storage REITs See pages 66-71 at the back of this presentation for endnotes. 28


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 fee pools and a 24% increase in capital markets fee pools (1) Investment Banking Net Revenues ($ Billions) $1.9 $1.6 $1.5 $1.1 FY 2019 LTM Q3 2020 9M FY 2019 9M FY 2020 Equity Underwriting Debt Underwriting Advisory See pages 66-71 at the back of this presentation for endnotes. 29Investment Banking – Performance Update § Fiscal year to date 2020 Investment Banking revenues have reached record nine month levels as a result of record advisory and equity capital markets revenues – 40% increase compared to the same period last year, against the backdrop of a 17% decline in M&A fee pools and a 24% increase in capital markets fee pools (1) Investment Banking Net Revenues ($ Billions) $1.9 $1.6 $1.5 $1.1 FY 2019 LTM Q3 2020 9M FY 2019 9M FY 2020 Equity Underwriting Debt Underwriting Advisory See pages 66-71 at the back of this presentation for endnotes. 29


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 transactions LTM Q3 2020 $572 § We are a major force in advising shareholders in the sale of their businesses – Sellside M&A is the highest fee paying and highest value-add segment of the M&A market – Over 85% of our M&A revenue comes from company sales – We have advised on the sale of an average of 125 companies each year since 2017 (2-3 companies per week) FY 2019 LTM Q3 2020 9M FY 2019 9M FY 2020 Global Investment Banking Rankings Global Investment Banking Rankings Global Investment Banking Rankings Sell-Side M&A: All Transactions Sell-Side M&A: < $5 Billion Valuation Sell-Side M&A: < $1 Billion Valuation LTM Q3 2020 LTM Q3 2020 LTM Q3 2020 Rank Investment Bank Fee Market Share Rank Investment Bank Fee Market Share Rank Investment Bank Fee Market Share Goldman Sachs 9.1% 1 1 Jefferies 6.1% 1 Goldman Sachs 11.0% 2 JPMorgan 7.8% 2 Goldman Sachs 5.8% 2 JPMorgan 9.5% 3 Morgan Stanley 7.2% 3 JPMorgan 5.5% 3 Morgan Stanley 7.6% Jefferies 4.9% 4 Citi 5.2% 4 4 Morgan Stanley 4.7% 5 BofA Securities 4.9% 5 BofA Securities 4.1% 5 BofA Securities 5.1% Jefferies 4.0% 6 Centerview Partners 4.4% 6 Houlihan Lokey 3.9% 6 7 Citi 4.3% 7 Centerview Partners 3.8% 7 Rothschild & Co 3.9% Lazard 3.4% 8 Lazard 3.6% 8 Citi 3.4% 8 9 Credit Suisse 3.3% 9 Credit Suisse 3.1% 9 Credit Suisse 3.3% 10 Rothschild & Co 3.0% 10 Evercore 2.9% 10 Lazard 3.2% See pages 66-71 at the back of this presentation for endnotes. 30Jefferies M&A Franchise § M&A is our largest business within Investment Banking Jefferies Global Advisory Revenue ($ 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 transactions LTM Q3 2020 $572 § We are a major force in advising shareholders in the sale of their businesses – Sellside M&A is the highest fee paying and highest value-add segment of the M&A market – Over 85% of our M&A revenue comes from company sales – We have advised on the sale of an average of 125 companies each year since 2017 (2-3 companies per week) FY 2019 LTM Q3 2020 9M FY 2019 9M FY 2020 Global Investment Banking Rankings Global Investment Banking Rankings Global Investment Banking Rankings Sell-Side M&A: All Transactions Sell-Side M&A: < $5 Billion Valuation Sell-Side M&A: < $1 Billion Valuation LTM Q3 2020 LTM Q3 2020 LTM Q3 2020 Rank Investment Bank Fee Market Share Rank Investment Bank Fee Market Share Rank Investment Bank Fee Market Share Goldman Sachs 9.1% 1 1 Jefferies 6.1% 1 Goldman Sachs 11.0% 2 JPMorgan 7.8% 2 Goldman Sachs 5.8% 2 JPMorgan 9.5% 3 Morgan Stanley 7.2% 3 JPMorgan 5.5% 3 Morgan Stanley 7.6% Jefferies 4.9% 4 Citi 5.2% 4 4 Morgan Stanley 4.7% 5 BofA Securities 4.9% 5 BofA Securities 4.1% 5 BofA Securities 5.1% Jefferies 4.0% 6 Centerview Partners 4.4% 6 Houlihan Lokey 3.9% 6 7 Citi 4.3% 7 Centerview Partners 3.8% 7 Rothschild & Co 3.9% Lazard 3.4% 8 Lazard 3.6% 8 Citi 3.4% 8 9 Credit Suisse 3.3% 9 Credit Suisse 3.1% 9 Credit Suisse 3.3% 10 Rothschild & Co 3.0% 10 Evercore 2.9% 10 Lazard 3.2% See pages 66-71 at the back of this presentation for endnotes. 30


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 2019 § For LTM Q3 2020, we ranked 7th and 8th in Equity Underwriting among all firms $362 and all Equity Underwriting products, in the U.S. and Europe, respectively $257 – We acted as active bookrunner on approximately 90% of all our Equity Underwriting deals in LTM Q3 2020 § We are a leading firm bookrunning IPOs in the U.S. FY 2019 LTM Q3 2020 9M FY 2019 9M FY 2020 – We bookran 1 in every 5 U.S. IPOs in LTM Q3 2020 and for the last 5 years – For 2020 YTD, we are ranked #4 in number of bookrun IPOs U.S. Investment Banking Rankings Europe Investment Banking Rankings Equity Underwriting Equity Underwriting LTM Q3 2020 LTM Q3 2020 Rank Investment Bank Fee Market Share Rank Investment Bank Fee Market Share Goldman Sachs 14.5% 1 1 JPMorgan 12.7% JPMorgan 12.6% 2 2 Goldman Sachs 11.3% 3 BofA Securities 9.9% 3 Morgan Stanley 7.4% 4 Morgan Stanley 9.9% 4 Citi 6.0% Citi 7.7% 5 5 BofA Securities 5.4% 6 Credit Suisse 5.7% 6 Credit Suisse 4.5% 7 Jefferies 3.7% 7 BNP Paribas 3.8% Barclays 3.6% 8 8 Jefferies 3.1% Cowen & Company 2.5% Barclays 2.9% 9 9 10 SVB Leerink 2.0% 10 UBS 2.7% See pages 66-71 at the back of this presentation for endnotes. 31Jefferies Equity Underwriting Franchise § Record results for Equity Underwriting for LTM Q3 2020 and nine months ended Jefferies Global Equity Underwriting Revenue ($ Millions) August 31, 2020 § Nine months ended August 31, 2020 revenues more than doubled compared to $667 $561 the same period in 2019 § For LTM Q3 2020, we ranked 7th and 8th in Equity Underwriting among all firms $362 and all Equity Underwriting products, in the U.S. and Europe, respectively $257 – We acted as active bookrunner on approximately 90% of all our Equity Underwriting deals in LTM Q3 2020 § We are a leading firm bookrunning IPOs in the U.S. FY 2019 LTM Q3 2020 9M FY 2019 9M FY 2020 – We bookran 1 in every 5 U.S. IPOs in LTM Q3 2020 and for the last 5 years – For 2020 YTD, we are ranked #4 in number of bookrun IPOs U.S. Investment Banking Rankings Europe Investment Banking Rankings Equity Underwriting Equity Underwriting 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% JPMorgan 12.6% 2 2 Goldman Sachs 11.3% 3 BofA Securities 9.9% 3 Morgan Stanley 7.4% 4 Morgan Stanley 9.9% 4 Citi 6.0% Citi 7.7% 5 5 BofA Securities 5.4% 6 Credit Suisse 5.7% 6 Credit Suisse 4.5% 7 Jefferies 3.7% 7 BNP Paribas 3.8% Barclays 3.6% 8 8 Jefferies 3.1% Cowen & Company 2.5% Barclays 2.9% 9 9 10 SVB Leerink 2.0% 10 UBS 2.7% See pages 66-71 at the back of this presentation for endnotes. 31


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 record results for European Investment Banking for § China: Revenue for fiscal nine months 2020 has significantly LTM Q3 2020 and for nine months ended August 31, 2020 exceeded the full year revenue of any year since we established ourselves in China § Revenues for the nine months ended August 31, 2020 increased nearly 20% compared to the same period in 2019, § Australia: Established office in 2018; our team has grown to driven by record Equity Underwriting & M&A revenues 20 investment bankers and we have exclusively advised on two of the largest M&A transactions in Australia and completed four Leveraged Finance transactions raising $2.5 billion Notable Transactions Notable Transactions Technology Pending Energy December 2019 Consumer June 2020 China June 2020 Japan November 2019 Australia December 2019 $3,474,000,000 $4,500,000,000 Undisclosed $4,460,000,000 $845,000,000 $2,200,000,000 Sale to Sale of Norwegian assets to Majority Investment by Hong Kong Initial Public Offering Acquisition of Acquisition of TA Associates Vår Energi AS Puig Joint Global Coordinator Drunk Elephant Campbell International Joint Financial Advisor Sole Financial Advisor Joint Financial Advisor Sole Financial Advisor Sole Financial Advisor See pages 66-71 at the back of this presentation for endnotes. 32European 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 record results for European Investment Banking for § China: Revenue for fiscal nine months 2020 has significantly LTM Q3 2020 and for nine months ended August 31, 2020 exceeded the full year revenue of any year since we established ourselves in China § Revenues for the nine months ended August 31, 2020 increased nearly 20% compared to the same period in 2019, § Australia: Established office in 2018; our team has grown to driven by record Equity Underwriting & M&A revenues 20 investment bankers and we have exclusively advised on two of the largest M&A transactions in Australia and completed four Leveraged Finance transactions raising $2.5 billion Notable Transactions Notable Transactions Technology Pending Energy December 2019 Consumer June 2020 China June 2020 Japan November 2019 Australia December 2019 $3,474,000,000 $4,500,000,000 Undisclosed $4,460,000,000 $845,000,000 $2,200,000,000 Sale to Sale of Norwegian assets to Majority Investment by Hong Kong Initial Public Offering Acquisition of Acquisition of TA Associates Vår Energi AS Puig Joint Global Coordinator Drunk Elephant Campbell International Joint Financial Advisor Sole Financial Advisor Joint Financial Advisor Sole Financial Advisor Sole Financial Advisor See pages 66-71 at the back of this presentation for endnotes. 32


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 pools and from expertise across embedded in our increased coverage the world incumbent footprint across Leveraged Finance sectors, sponsors, relationships regions and products See pages 66-71 at the back of this presentation for endnotes. 33Investment 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 pools and from expertise across embedded in our increased coverage the world incumbent footprint across Leveraged Finance sectors, sponsors, relationships regions and products See pages 66-71 at the back of this presentation for endnotes. 33


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 – Japan § Middle Market Sponsor – US§ Australia § Third Party Logistics § REGAL§ Infrastructure – Australia§ Germany§ Latin America § NFP Higher Education § Aero & Defense§ U.K. § Chemicals § Food & Beverage§ Germany § Aero & Defense § REGAL§ Energy§ China § Municipal Transportation § UK Investment Funds§ Israel § Software § Beauty & Personal Care § Household & Personal Products § Nutrition & Wellness Products Product Capability M&A ECM LevFin US Europe US Europe Asia LatAm § Activist Defense§ U.K. M&A§ ATMs§ Germany§ Australia§ Emerging Markets § Middle Market Sponsor§ SPACs § Consumer§ Opportunity Zones § REGAL § Aero & Defense Blue Denotes New Fee Pools Black Denotes Increased Coverage Footprint See pages 66-71 at the back of this presentation for endnotes. 34Investment 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 – Japan § Middle Market Sponsor – US§ Australia § Third Party Logistics § REGAL§ Infrastructure – Australia§ Germany§ Latin America § NFP Higher Education § Aero & Defense§ U.K. § Chemicals § Food & Beverage§ Germany § Aero & Defense § REGAL§ Energy§ China § Municipal Transportation § UK Investment Funds§ Israel § Software § Beauty & Personal Care § Household & Personal Products § Nutrition & Wellness Products Product Capability M&A ECM LevFin US Europe US Europe Asia LatAm § Activist Defense§ U.K. M&A§ ATMs§ Germany§ Australia§ Emerging Markets § Middle Market Sponsor§ SPACs § Consumer§ Opportunity Zones § REGAL § Aero & Defense Blue Denotes New Fee Pools Black Denotes Increased Coverage Footprint See pages 66-71 at the back of this presentation for endnotes. 34


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 § In LTM Q3 2020, we have led or co-led the acquisition financing of 22 companies, underwriting over $30 billion of leveraged loans and bonds, and over the last three years have provided the acquisition financing of over 120 companies, underwriting over $150 billion – As an incumbent lender to these sponsor-owned companies, we are now well -positioned to compete for the sale or IPOs of these companies when the sponsor-owners monetize these businesses – There is significant embedded M&A and Equity Underwriting revenue potential from these companies over the next three years US Investment Banking Rankings US Investment Banking Rankings Leveraged Loans Single B and Below Leveraged Loans Single B and Below LTM Q3 2020 4/1/20 to Present Rank Investment Bank Fee Market Share Rank Investment Bank Fee Market Share JPMorgan 9.4% 1 1 JPMorgan 10.5% 2 BofA Securities 7.9% 2 BofA Securities 9.3% 3 Credit Suisse 7.0% 3 Credit Suisse 6.9% Barclays 5.1% 4 4 Jefferies 6.6% Goldman Sachs 4.5% Barclays 5.0% 5 5 6 Jefferies 4.5% 6 Morgan Stanley 4.6% 7 Morgan Stanley 4.0% 7 Deutsche Bank 4.5% Deutsche Bank 3.8% Wells Fargo 4.4% 8 8 9 RBC Capital Markets 3.7% 9 Goldman Sachs 3.6% 10 KKR 3.7% 10 KKR 3.4% See pages 66-71 at the back of this presentation for endnotes. 35Monetizing 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 § In LTM Q3 2020, we have led or co-led the acquisition financing of 22 companies, underwriting over $30 billion of leveraged loans and bonds, and over the last three years have provided the acquisition financing of over 120 companies, underwriting over $150 billion – As an incumbent lender to these sponsor-owned companies, we are now well -positioned to compete for the sale or IPOs of these companies when the sponsor-owners monetize these businesses – There is significant embedded M&A and Equity Underwriting revenue potential from these companies over the next three years US Investment Banking Rankings US Investment Banking Rankings Leveraged Loans Single B and Below Leveraged Loans Single B and Below LTM Q3 2020 4/1/20 to Present Rank Investment Bank Fee Market Share Rank Investment Bank Fee Market Share JPMorgan 9.4% 1 1 JPMorgan 10.5% 2 BofA Securities 7.9% 2 BofA Securities 9.3% 3 Credit Suisse 7.0% 3 Credit Suisse 6.9% Barclays 5.1% 4 4 Jefferies 6.6% Goldman Sachs 4.5% Barclays 5.0% 5 5 6 Jefferies 4.5% 6 Morgan Stanley 4.6% 7 Morgan Stanley 4.0% 7 Deutsche Bank 4.5% Deutsche Bank 3.8% Wells Fargo 4.4% 8 8 9 RBC Capital Markets 3.7% 9 Goldman Sachs 3.6% 10 KKR 3.7% 10 KKR 3.4% See pages 66-71 at the back of this presentation for endnotes. 35


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 alternative to a traditional IPO SPACs § Selling to a SPAC can represent a viable exit alternative versus a strategic buyer or a financial sponsor are proliferating § Private equity firms are raising SPACs to expand or diversify their sources of investment capital Jefferies has emerged § In FY 2020 YTD, Jefferies has successfully closed 10 SPAC IPOs, raising $6.0 billion § Completed or announced acquisitions for four SPACS we previously IPO’d as a leader in SPACs US Investment Banking Rankings SPAC IPOs Nine Months Ended 8/31/20 Apportioned Dollar Rank Investment Bank Apportioned Dollar Volume ($mm) Market Share 1 Citi 15.6% 5,195 Credit Suisse 14.9% 4,947 2 3 Goldman Sachs 12.3% 4,104 4 UBS 10.6% 3,539 Jefferies 6.8% 2,250 5 6 Cantor Fitzgerald 6.7% 2,240 7 BofA Securities 6.1% 2,038 Deutsche Bank 4.6% 1,520 8 9 Morgan Stanley 4.1% 1,378 10 JPMorgan 3.3% 1,097 See pages 66-71 at the back of this presentation for endnotes. 36Capitalizing 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 alternative to a traditional IPO SPACs § Selling to a SPAC can represent a viable exit alternative versus a strategic buyer or a financial sponsor are proliferating § Private equity firms are raising SPACs to expand or diversify their sources of investment capital Jefferies has emerged § In FY 2020 YTD, Jefferies has successfully closed 10 SPAC IPOs, raising $6.0 billion § Completed or announced acquisitions for four SPACS we previously IPO’d as a leader in SPACs US Investment Banking Rankings SPAC IPOs Nine Months Ended 8/31/20 Apportioned Dollar Rank Investment Bank Apportioned Dollar Volume ($mm) Market Share 1 Citi 15.6% 5,195 Credit Suisse 14.9% 4,947 2 3 Goldman Sachs 12.3% 4,104 4 UBS 10.6% 3,539 Jefferies 6.8% 2,250 5 6 Cantor Fitzgerald 6.7% 2,240 7 BofA Securities 6.1% 2,038 Deutsche Bank 4.6% 1,520 8 9 Morgan Stanley 4.1% 1,378 10 JPMorgan 3.3% 1,097 See pages 66-71 at the back of this presentation for endnotes. 36


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 business cycles, including the most recent economic disruption caused by COVID Committed Best Efforts ─ JFIN has built a highly successful franchise arranging leveraged loans for $30.0 distribution to the capital markets and since inception has successfully arranged over 1,100 transactions representing over $230 billion of financing $25.0 $23.4 ─ In addition to our leading leveraged loan arrangement business, JFIN also provides direct lending to Jefferies’ clients and is the manager of 20 term $20.0 $18.1 loan and revolver CLOs, a large share of which were arranged by Jefferies $9.1 (1) ─ Managed capital across all business lines exceeds $12 billion $4.6 $15.0 § Despite the economic impact of the pandemic, JFIN syndicated nearly all pre- COVID commitments earning close to full fees and maintains ample liquidity $10.0 of $2.5 billion $14.3 ─ Significant improvement in market environment with the Leveraged loan $13.5 $5.0 market approaching pre-COVID levels ─ JFIN recently refinanced Senior Notes with a $350 million Senior Secured $0.0 Term loan representing $12 million in annual interest savings FY 2019 LTM Q3'20 ─ Total debt and-non funding debt to equity ratios stand conservatively at 4.5x/1.3x, respectively # of § JFIN’s strategy will remain focused on core U.S. and European underwriting 98 88 Transactions: business as well as further expanding into large cap and mid cap direct lending (both origination and asset management), which represents a significant growth opportunity See pages 66-71 at the back of this presentation for endnotes. 37Jefferies Finance – Overview § Jefferies Finance (“JFIN”), our corporate lending joint venture with Massachusetts Mutual Life Insurance Company, continues to operate prudently Total Arranged Deal Volume ─ Established in 2004, JFIN has demonstrated growth and resilience across ($ Billions) multiple business cycles, including the most recent economic disruption caused by COVID Committed Best Efforts ─ JFIN has built a highly successful franchise arranging leveraged loans for $30.0 distribution to the capital markets and since inception has successfully arranged over 1,100 transactions representing over $230 billion of financing $25.0 $23.4 ─ In addition to our leading leveraged loan arrangement business, JFIN also provides direct lending to Jefferies’ clients and is the manager of 20 term $20.0 $18.1 loan and revolver CLOs, a large share of which were arranged by Jefferies $9.1 (1) ─ Managed capital across all business lines exceeds $12 billion $4.6 $15.0 § Despite the economic impact of the pandemic, JFIN syndicated nearly all pre- COVID commitments earning close to full fees and maintains ample liquidity $10.0 of $2.5 billion $14.3 ─ Significant improvement in market environment with the Leveraged loan $13.5 $5.0 market approaching pre-COVID levels ─ JFIN recently refinanced Senior Notes with a $350 million Senior Secured $0.0 Term loan representing $12 million in annual interest savings FY 2019 LTM Q3'20 ─ Total debt and-non funding debt to equity ratios stand conservatively at 4.5x/1.3x, respectively # of § JFIN’s strategy will remain focused on core U.S. and European underwriting 98 88 Transactions: business as well as further expanding into large cap and mid cap direct lending (both origination and asset management), which represents a significant growth opportunity See pages 66-71 at the back of this presentation for endnotes. 37


EquitiesEquities


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 Services High-Touch Execution High-Touch Execution High-Touch Execution Algorithmic Trading Hedge Fund Consulting § Sales and trading and equity research Consumer Block Trading Block Trading Block Trading Program Trading Margin Financing across North America, EMEA and Asia Pacific, with major trading hubs in New Energy Research Research Research DMA Accounting & Reporting York, London, Hong Kong, Tokyo, ESG Capital Markets Capital Markets Capital Markets Commission Management Capital Introduction Sydney, Mumbai, and Singapore Financial Services Event Driven Strategies Investment Companies ETFs Strategic Content Market Structure Expertise § 340+ research professionals covering over 2,450 companies (approximately Healthcare ETFs Event Driven Strategies Commission Management Outsourced Trading 3,250 including our co-branded partner Industrials & Natural Resources Commission Management ETFs Corporate Access coverage across Asia Pacific ) REITs Corporate Access Commission Management § Leading client-offerings across Cash Equities, Electronic Trading, Equity TMT Corporate Access Derivatives, Convertible Bonds, ETFs, Macro, Micro, and Thematic Prime Services, Equity Capital Markets, and Equity Research Content & Thought § Equity execution capabilities across Derivatives Convertibles Securities Finance Capital Markets Data Science Leadership approximately 50 countries throughout US Stock Options US Equity Swaps New / Secondary Issues Data Vendor Introductions Desk Strategists the Americas, EMEA and Asia Pacific US Index Options EMEA Matched Book Block Deals Data Science Strategy Macro & Micro Strategists § Focused on providing best-in-class alpha-generative and thematic ideas, Corporate Derivatives Asia Pacific Fully-Paid For Lending Convertibles Data Events & Conferences Event Driven & Derivatives trading execution and bespoke service Structured Products Capital Markets Convertible Call Spreads ESG to our clients Buybacks Israeli Institutional Relationships See pages 66-71 at the back of this presentation for endnotes. 39Overview 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 Services High-Touch Execution High-Touch Execution High-Touch Execution Algorithmic Trading Hedge Fund Consulting § Sales and trading and equity research Consumer Block Trading Block Trading Block Trading Program Trading Margin Financing across North America, EMEA and Asia Pacific, with major trading hubs in New Energy Research Research Research DMA Accounting & Reporting York, London, Hong Kong, Tokyo, ESG Capital Markets Capital Markets Capital Markets Commission Management Capital Introduction Sydney, Mumbai, and Singapore Financial Services Event Driven Strategies Investment Companies ETFs Strategic Content Market Structure Expertise § 340+ research professionals covering over 2,450 companies (approximately Healthcare ETFs Event Driven Strategies Commission Management Outsourced Trading 3,250 including our co-branded partner Industrials & Natural Resources Commission Management ETFs Corporate Access coverage across Asia Pacific ) REITs Corporate Access Commission Management § Leading client-offerings across Cash Equities, Electronic Trading, Equity TMT Corporate Access Derivatives, Convertible Bonds, ETFs, Macro, Micro, and Thematic Prime Services, Equity Capital Markets, and Equity Research Content & Thought § Equity execution capabilities across Derivatives Convertibles Securities Finance Capital Markets Data Science Leadership approximately 50 countries throughout US Stock Options US Equity Swaps New / Secondary Issues Data Vendor Introductions Desk Strategists the Americas, EMEA and Asia Pacific US Index Options EMEA Matched Book Block Deals Data Science Strategy Macro & Micro Strategists § Focused on providing best-in-class alpha-generative and thematic ideas, Corporate Derivatives Asia Pacific Fully-Paid For Lending Convertibles Data Events & Conferences Event Driven & Derivatives trading execution and bespoke service Structured Products Capital Markets Convertible Call Spreads ESG to our clients Buybacks Israeli Institutional Relationships See pages 66-71 at the back of this presentation for endnotes. 39


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 Diversified Sustainable 4 Built and upgraded product areas with a focus on a quantitative Equities platform 5 Significantly improved our competitive positioning Efficient 6 Adapted to the environment digitally and virtually 7 Invested in our technology pipeline for revenue growth and efficiency 8 Focused on balance sheet, risk, and overall platform efficiency Return-Focused Our strategy is to have a diversified, sustainable and efficient business, across our differentiated advisory and cutting-edge execution platform, that is both client and return focused See pages 66-71 at the back of this presentation for endnotes. 40A 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 Diversified Sustainable 4 Built and upgraded product areas with a focus on a quantitative Equities platform 5 Significantly improved our competitive positioning Efficient 6 Adapted to the environment digitally and virtually 7 Invested in our technology pipeline for revenue growth and efficiency 8 Focused on balance sheet, risk, and overall platform efficiency Return-Focused Our strategy is to have a diversified, sustainable and efficient business, across our differentiated advisory and cutting-edge execution platform, that is both client and return focused See pages 66-71 at the back of this presentation for endnotes. 40


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 4 2016 2017 2018 2019 2020 Citi 5 Americas Europe Asia-Pacific Co-Branded Bank of America 6 Our Global Cash & Electronic Volume Growth in 2020 Credit Suisse 7 (2) Cash & Electronic Volume: YoY Growth (FYTD) 82% UBS 8 Instinet 9 31% 27% 27% Virtu Financial 10 Americas Europe Asia-Pacific Global See pages 66-71 at the back of this presentation for endnotes. 41Differentiated 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 4 2016 2017 2018 2019 2020 Citi 5 Americas Europe Asia-Pacific Co-Branded Bank of America 6 Our Global Cash & Electronic Volume Growth in 2020 Credit Suisse 7 (2) Cash & Electronic Volume: YoY Growth (FYTD) 82% UBS 8 Instinet 9 31% 27% 27% Virtu Financial 10 Americas Europe Asia-Pacific Global See pages 66-71 at the back of this presentation for endnotes. 41


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 Breadth #1 #1 (Greenwich) (Thomson Starmine) th +3 Ranks to 8 4.5% 2020 U.S. Electronic Trading Client Service and U.S. Cash China Internet Research Various Algos #1 #1 3.3% 2015 (Institutional Investor) (Greenwich) European Electronic Trading with U.S. U.S. Healthcare Desk Strategy and U.K. Clients #1 #1 st (Institutional Investor) 1 in Sales, Trading, & Research Globally 11.4% 2020 (Extel) U.S. Convertibles 8.6% 2015 U.S., Europe, and Asia ex Japan Convertibles U.K. Equity Research Coverage Breadth #1 #2 (Greenwich) (Thomson Starmine) th +3 Ranks to 8 5.2% 2020 Top Market Share Gainer in Asia Cash Equities U.S. Equity Research Analysts #4 U.K. Cash (Third Party Market Survey) (Thomson Starmine) 3 3.0% 2015 Top Market Share Gainer in Global Cash Equities U.S. IPO Volumes YTD in July #4 (Third Party Market Survey) (Bloomberg) 5 th +6 Ranks to 10 3.4% 2020 Pan European Cash 2.0% Global Cash Equities U.K. SMiD Cap Sales Team 2015 #8 #5 (Third Party Market Survey) (Extel) U.K. Cash Equities Asia Pacific Equity Research th +6 Ranks to 12 2.4% 2020 #8 #7 (Third Party Market Survey) (Institutional Investor) Asia ex Japan Cash 0.9% 2015 Top U.K. SMiD-Cap Trading & Execution Global Equity Research Coverage Breadth #8 (Extel) (Thomson Starmine) 10 th +5 Ranks to 12 3.3% 2020 Top Top U.S. Listed Options U.S. Equity Research Japan Cash 0.8% (Third Party Market Survey) (Institutional Investor) 2015 10 10 See pages 66-71 at the back of this presentation for endnotes. 42Competitive 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 Breadth #1 #1 (Greenwich) (Thomson Starmine) th +3 Ranks to 8 4.5% 2020 U.S. Electronic Trading Client Service and U.S. Cash China Internet Research Various Algos #1 #1 3.3% 2015 (Institutional Investor) (Greenwich) European Electronic Trading with U.S. U.S. Healthcare Desk Strategy and U.K. Clients #1 #1 st (Institutional Investor) 1 in Sales, Trading, & Research Globally 11.4% 2020 (Extel) U.S. Convertibles 8.6% 2015 U.S., Europe, and Asia ex Japan Convertibles U.K. Equity Research Coverage Breadth #1 #2 (Greenwich) (Thomson Starmine) th +3 Ranks to 8 5.2% 2020 Top Market Share Gainer in Asia Cash Equities U.S. Equity Research Analysts #4 U.K. Cash (Third Party Market Survey) (Thomson Starmine) 3 3.0% 2015 Top Market Share Gainer in Global Cash Equities U.S. IPO Volumes YTD in July #4 (Third Party Market Survey) (Bloomberg) 5 th +6 Ranks to 10 3.4% 2020 Pan European Cash 2.0% Global Cash Equities U.K. SMiD Cap Sales Team 2015 #8 #5 (Third Party Market Survey) (Extel) U.K. Cash Equities Asia Pacific Equity Research th +6 Ranks to 12 2.4% 2020 #8 #7 (Third Party Market Survey) (Institutional Investor) Asia ex Japan Cash 0.9% 2015 Top U.K. SMiD-Cap Trading & Execution Global Equity Research Coverage Breadth #8 (Extel) (Thomson Starmine) 10 th +5 Ranks to 12 3.3% 2020 Top Top U.S. Listed Options U.S. Equity Research Japan Cash 0.8% (Third Party Market Survey) (Institutional Investor) 2015 10 10 See pages 66-71 at the back of this presentation for endnotes. 42


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 Thematic Macro Strategy Content & Podcasts 56% Growth Since 2016 Asia Pacific Expansion Globalization of Products Deepening Institutional Connectivity 61% Growth Electronic & Since 2016 Swaps Program Trading Global Execution International Convertibles Centralized Risk Book 2016 2017 2018 2019 LTM Q3 2020 Outsourced Trading OTC Derivatives Americas Europe Asia-Pacific See pages 66-71 at the back of this presentation for endnotes. 43Equities 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 Thematic Macro Strategy Content & Podcasts 56% Growth Since 2016 Asia Pacific Expansion Globalization of Products Deepening Institutional Connectivity 61% Growth Electronic & Since 2016 Swaps Program Trading Global Execution International Convertibles Centralized Risk Book 2016 2017 2018 2019 LTM Q3 2020 Outsourced Trading OTC Derivatives Americas Europe Asia-Pacific See pages 66-71 at the back of this presentation for endnotes. 43


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 presentation for endnotes. 44Regional 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 presentation for endnotes. 44


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 capabilities Continue to build higher Capitalize on opportunities driven by competitor consolidation and dislocation margin businesses Increase client penetration across businesses Maintain disciplined Continue to grow our Cash offering globally and client revenue diversification focus on efficiency Focus on Talent Continue improving human capital through strategies including leadership development, recruiting, retention and diversity Leverage Continue digitalization and electronification of advisory and execution platforms, resulting in a leaner, quant -enabled platform Technology See pages 66-71 at the back of this presentation for endnotes. 45Equities – 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 capabilities Continue to build higher Capitalize on opportunities driven by competitor consolidation and dislocation margin businesses Increase client penetration across businesses Maintain disciplined Continue to grow our Cash offering globally and client revenue diversification focus on efficiency Focus on Talent Continue improving human capital through strategies including leadership development, recruiting, retention and diversity Leverage Continue digitalization and electronification of advisory and execution platforms, resulting in a leaner, quant -enabled platform Technology See pages 66-71 at the back of this presentation for endnotes. 45


Fixed IncomeFixed Income


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 disciplined resource usage (1) (2) (3) Fixed Income Net Revenues Capital Headcount ($ Millions) $1,241 LTM Q1'16 LTM Q3'20 LTM Q1'16 LTM Q3'20 (4) (5) Worst Case Stress % Profitable Trading Days 91% 66% $169 LTM Q1'16 LTM Q3'20 LTM Q1'16 LTM Q3'20 LTM Q1'16 LTM Q3'20 See pages 66-71 at the back of this presentation for endnotes. 47Fixed Income – Our Business Evolution § Strong performance in all trading businesses in all regions across macro and credit § Diversified growth in revenues across our breadth of products § Continued emphasis on liquid, high-turnover inventory Sustained revenue growth across regions and products on disciplined resource usage (1) (2) (3) Fixed Income Net Revenues Capital Headcount ($ Millions) $1,241 LTM Q1'16 LTM Q3'20 LTM Q1'16 LTM Q3'20 (4) (5) Worst Case Stress % Profitable Trading Days 91% 66% $169 LTM Q1'16 LTM Q3'20 LTM Q1'16 LTM Q3'20 LTM Q1'16 LTM Q3'20 See pages 66-71 at the back of this presentation for endnotes. 47


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-month revenues in a challenging environment Fixed Income Net Revenues (1) (2) Capital Headcount ($ Millions) $1,078 Q3 YTD Q3'19 YTD Q3'20 YTD Q3'19 YTD Q3'20 (3) (4) Worst Case Stress $518 % Profitable Trading Days Q2 Q3 93% 85% Q2 Q1 Q1 YTD Q3'19 YTD Q3'20 YTD Q3'19 YTD Q3'20 YTD Q3'19 YTD Q3'20 See pages 66-71 at the back of this presentation for endnotes. 48Pushing the Opportunity Curve Higher § Maintained discipline on risk and capital through volatile period§ Focused on hires in key areas § Emphasized liquid inventory and balance sheet velocity§ Improved product and regional diversification § Continued our relentless commitment to clients Record nine-month revenues in a challenging environment Fixed Income Net Revenues (1) (2) Capital Headcount ($ Millions) $1,078 Q3 YTD Q3'19 YTD Q3'20 YTD Q3'19 YTD Q3'20 (3) (4) Worst Case Stress $518 % Profitable Trading Days Q2 Q3 93% 85% Q2 Q1 Q1 YTD Q3'19 YTD Q3'20 YTD Q3'19 YTD Q3'20 YTD Q3'19 YTD Q3'20 See pages 66-71 at the back of this presentation for endnotes. 48


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% Increase in # of clients citing 10.9% relationship with Jefferies U.S. Fixed Income 75% 7.4% Increase in # of clients citing Most Positive Forward relationship with Jefferies among >400bps Momentum Among U.S. Core Credit Most Active Clients Average 5.5% 5.1% Credit Products increase in 4.6% 2019 Market Share 3.9% Deepening of Existing 3.1% Relationships 2.3% 1.3% 1.2% 1.2% 0.4% +300bps Increase in Market Share among U.S. EM E.U. EM U.S. U.S. Par U.S. HY Cash U.S. U.S. Core Credit Most Active Clients Credit Credit Distressed Loans Bonds Municipals See pages 66-71 at the back of this presentation for endnotes. 49Strong 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% Increase in # of clients citing 10.9% relationship with Jefferies U.S. Fixed Income 75% 7.4% Increase in # of clients citing Most Positive Forward relationship with Jefferies among >400bps Momentum Among U.S. Core Credit Most Active Clients Average 5.5% 5.1% Credit Products increase in 4.6% 2019 Market Share 3.9% Deepening of Existing 3.1% Relationships 2.3% 1.3% 1.2% 1.2% 0.4% +300bps Increase in Market Share among U.S. EM E.U. EM U.S. U.S. Par U.S. HY Cash U.S. U.S. Core Credit Most Active Clients Credit Credit Distressed Loans Bonds Municipals See pages 66-71 at the back of this presentation for endnotes. 49


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 Productive balance sheet with high velocity of § Structured Solutions turnover Deeper (long-term, multi-product) partnerships § Swaps with targeted clients § CLOs Capital efficiency Enhanced Financing and Derivatives capabilities Expense containment Differentiated position in the market place gives us a unique perspective Leverage Our Rapid decision making due to flat management structure Distinctive Culture Innovative solutions for our clients Digitalize pathways to client Capitalize on Smart analytical tools Investments in Workflow automation Technology Content management See pages 66-71 at the back of this presentation for endnotes. 50Fixed 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 Productive balance sheet with high velocity of § Structured Solutions turnover Deeper (long-term, multi-product) partnerships § Swaps with targeted clients § CLOs Capital efficiency Enhanced Financing and Derivatives capabilities Expense containment Differentiated position in the market place gives us a unique perspective Leverage Our Rapid decision making due to flat management structure Distinctive Culture Innovative solutions for our clients Digitalize pathways to client Capitalize on Smart analytical tools Investments in Workflow automation Technology Content management See pages 66-71 at the back of this presentation for endnotes. 50


Leucadia Asset ManagementLeucadia Asset Management


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 strategic relationsh ips where we participate in all or a portion of the revenue or income of the underlying manager § Diversified, uncorrelated portfolio has led to strong performance and fundraising momentum – Focus on multi-managers, low-net or alternative yield strategies – Variety of products offered has increased investor interest in the platform § Opportunities to partner with investors and create customized product offerings/combinations – Long-term goal of meaningful and continuously growing stream of management fees; currently $ 22 billion of AUM across JFG including $8 (1) billion in Jefferies Finance asset management activities § Leveraging Jefferies Group to source and Leucadia’s brand to market § Scaled in-house LAM-level marketing & IR functions See pages 66-71 at the back of this presentation for endnotes. 52Leucadia 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 strategic relationsh ips where we participate in all or a portion of the revenue or income of the underlying manager § Diversified, uncorrelated portfolio has led to strong performance and fundraising momentum – Focus on multi-managers, low-net or alternative yield strategies – Variety of products offered has increased investor interest in the platform § Opportunities to partner with investors and create customized product offerings/combinations – Long-term goal of meaningful and continuously growing stream of management fees; currently $ 22 billion of AUM across JFG including $8 (1) billion in Jefferies Finance asset management activities § Leveraging Jefferies Group to source and Leucadia’s brand to market § Scaled in-house LAM-level marketing & IR functions See pages 66-71 at the back of this presentation for endnotes. 52


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 Schonfeld’s Fundamental Equity business (2) Multi $2.8 2008§ Asia focused Multi-strategy and Multi-Macro investment management firm Multi $0.4 2002§ First-loss, scalable multi-manager and multi-strategy liquid securities fund (3) Equities/ $1.2 2011§ Capital markets driven equities and convertible notes fund Converts Commodity- (4) $3.9 2003§ Active strategies designed to provide enhanced commodity exposure Related ESG $0.2 2009§ Alternative energy ESG and energy infrastructure products § Long/short equity strategy that invests in targeted industries including financial services and Equities $0.3 2015 cyclical industries Energy / Cyclical $0.2 2015§ Global long/short equity strategy managing a cross-asset portfolio of equities and derivatives Event Driven $0.2 2007§ Event driven strategy investing in merger arbitrage, relative value and stock loan arbitrage European $0.4 2017§ Low net, long/short Equity strategy focused on European catalyst- driven opportunities Catalyst Driven (5) Corporate Credit $8.0 2004§ CLO manager, leveraged finance and middle-market credit investing platform Trade Finance $0.2 2019§ Trade finance and supply chain-based corporate credit investments (6) Consumer ABS NA 2020§ Structured product strategies, emphasizing consumer-related ABS (4) (6) FourSixThree Distressed 2020 NA§ Distressed credit opportunities across all sectors and geographies (4) Private (6) GP Stakes NA 2019§ Minority general partner equity investments in global middle-market alternative managers Equity See pages 66-71 at the back of this presentation for endnotes. 53 Credit Fundamental Multi-ManagerLeucadia Asset Management – Our Platforms and Strategies ($ 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 Schonfeld’s Fundamental Equity business (2) Multi $2.8 2008§ Asia focused Multi-strategy and Multi-Macro investment management firm Multi $0.4 2002§ First-loss, scalable multi-manager and multi-strategy liquid securities fund (3) Equities/ $1.2 2011§ Capital markets driven equities and convertible notes fund Converts Commodity- (4) $3.9 2003§ Active strategies designed to provide enhanced commodity exposure Related ESG $0.2 2009§ Alternative energy ESG and energy infrastructure products § Long/short equity strategy that invests in targeted industries including financial services and Equities $0.3 2015 cyclical industries Energy / Cyclical $0.2 2015§ Global long/short equity strategy managing a cross-asset portfolio of equities and derivatives Event Driven $0.2 2007§ Event driven strategy investing in merger arbitrage, relative value and stock loan arbitrage European $0.4 2017§ Low net, long/short Equity strategy focused on European catalyst- driven opportunities Catalyst Driven (5) Corporate Credit $8.0 2004§ CLO manager, leveraged finance and middle-market credit investing platform Trade Finance $0.2 2019§ Trade finance and supply chain-based corporate credit investments (6) Consumer ABS NA 2020§ Structured product strategies, emphasizing consumer-related ABS (4) (6) FourSixThree Distressed 2020 NA§ Distressed credit opportunities across all sectors and geographies (4) Private (6) GP Stakes NA 2019§ Minority general partner equity investments in global middle-market alternative managers Equity See pages 66-71 at the back of this presentation for endnotes. 53 Credit Fundamental Multi-Manager


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 billion in under one year § Positive results YTD – Riposte team joined LAM to offer its uncorrelated low net long/short strategy § Performed well during highest volatility periods § February 2020: Announced launch of Monashee Converts strategy – Both Monashee’s core strategy and new converts strategies have performed very well YTD – Significant AUM growth via LAM marketing efforts – Additional new products in development including Investment Grade and Crossover strategies § March 2020: Performance in bear market – Despite turbulent market conditions in Q2, most of LAM’s strategies avoided losses or produced modest gains, with isolated dr awdowns § June 2020: Exited quantPORT systematic division and transferred a portion of the group and license of IP to a third party – Modest recent returns were leading to difficulties in attracting new capital – Fee base was insufficient to profitably support the operating costs of a competitive systematic strategy at scale See pages 66-71 at the back of this presentation for endnotes. 54Recent 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 billion in under one year § Positive results YTD – Riposte team joined LAM to offer its uncorrelated low net long/short strategy § Performed well during highest volatility periods § February 2020: Announced launch of Monashee Converts strategy – Both Monashee’s core strategy and new converts strategies have performed very well YTD – Significant AUM growth via LAM marketing efforts – Additional new products in development including Investment Grade and Crossover strategies § March 2020: Performance in bear market – Despite turbulent market conditions in Q2, most of LAM’s strategies avoided losses or produced modest gains, with isolated dr awdowns § June 2020: Exited quantPORT systematic division and transferred a portion of the group and license of IP to a third party – Modest recent returns were leading to difficulties in attracting new capital – Fee base was insufficient to profitably support the operating costs of a competitive systematic strategy at scale See pages 66-71 at the back of this presentation for endnotes. 54


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 relationship with FourSixThree Capital § New manager focused on distressed credit and special situations § Led by Scott Balkan, formerly of PointState – October/November 2020: Expected launch of Point Bonita Capital commingled fund § Trade Finance program was initially piloted as an SMA for LAM See pages 66-71 at the back of this presentation for endnotes. 55Recent 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 relationship with FourSixThree Capital § New manager focused on distressed credit and special situations § Led by Scott Balkan, formerly of PointState – October/November 2020: Expected launch of Point Bonita Capital commingled fund § Trade Finance program was initially piloted as an SMA for LAM See pages 66-71 at the back of this presentation for endnotes. 55


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 third party investor – Anticipated launch of Solanas ESG UCITS offering – Continued Stonyrock marketing § Marketing Team – Grew our marketing team to 14 total professionals, meaningfully increasing capacity – Added Head of Asia Business Development to expand geographic reach – Hired dedicated Head of Investor Relations to further enhance client service See pages 66-71 at the back of this presentation for endnotes. 56Recent 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 third party investor – Anticipated launch of Solanas ESG UCITS offering – Continued Stonyrock marketing § Marketing Team – Grew our marketing team to 14 total professionals, meaningfully increasing capacity – Added Head of Asia Business Development to expand geographic reach – Hired dedicated Head of Investor Relations to further enhance client service See pages 66-71 at the back of this presentation for endnotes. 56


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 Group back office to manage launch costs and operating expenses – Strict controls to manage and limit risk – Cut losses when necessary at pre-determined levels See pages 66-71 at the back of this presentation for endnotes. 57Leucadia 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 Group back office to manage launch costs and operating expenses – Strict controls to manage and limit risk – Cut losses when necessary at pre-determined levels See pages 66-71 at the back of this presentation for endnotes. 57


Merchant BankingMerchant Banking


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 subscriber growth§ Larger customer base, advantageous financing due to pandemic, and partnership with Fastweb have positioned Linkem well HomeFed§ Home sales and development have remained strong§ Core development plans for home sites and apartment buildings continue § While the majority of retail tenants have re-opened, certain commercial and hotel assets remain challenged§ Finished lot interest from homebuilders remains strong Vitesse§ Extreme volatility of oil prices§ ~85% of Company’s reserves yet to be developed, expect development to resume in late 2021 if oil prices recover and § Impact offset by hedges approach $50/bbl § Oil’s gradual recovery, now $40/bbl up from teens § Falling development costs improves returns Idaho Timber§ Plants were able to remain open safely due to the open air nature § Scarce availability of wood has allowed Idaho Timber to lock of our lumber facilities in some future sales on favorable terms, however, we expect the market to be volatile as lumber supply returns to normal over the § Geographical diversification across the US tends to minimize the course of 2H 2020 effect of regional virus impact § Unprecedented lumber demand at Home Center stores and limited supply led to favorable pricing and very strong performance See pages 66-71 at the back of this presentation for endnotes. 59Merchant 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 subscriber growth§ Larger customer base, advantageous financing due to pandemic, and partnership with Fastweb have positioned Linkem well HomeFed§ Home sales and development have remained strong§ Core development plans for home sites and apartment buildings continue § While the majority of retail tenants have re-opened, certain commercial and hotel assets remain challenged§ Finished lot interest from homebuilders remains strong Vitesse§ Extreme volatility of oil prices§ ~85% of Company’s reserves yet to be developed, expect development to resume in late 2021 if oil prices recover and § Impact offset by hedges approach $50/bbl § Oil’s gradual recovery, now $40/bbl up from teens § Falling development costs improves returns Idaho Timber§ Plants were able to remain open safely due to the open air nature § Scarce availability of wood has allowed Idaho Timber to lock of our lumber facilities in some future sales on favorable terms, however, we expect the market to be volatile as lumber supply returns to normal over the § Geographical diversification across the US tends to minimize the course of 2H 2020 effect of regional virus impact § Unprecedented lumber demand at Home Center stores and limited supply led to favorable pricing and very strong performance See pages 66-71 at the back of this presentation for endnotes. 59


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 § Approximately 85% of the Italian broadband market is served by fiber € 122.6 pre- and post-paid residential € 125 € 101.0 to the cabinet (FTTC) or legacy technologies; Linkem's current 4G customers unlimited broadband € 100 € 82.2 technology provides comparable or better service with much lower services for €27/month € 63.3 € 75 capex and an unmatched speed of deployment € 49.5 – Linkem also sells its services € 50 € 28.5 through wholesale and strategic § The company is transitioning its network to 5G, which will greatly partners including Telecom Italia, € 25 increase the speed and quality of its connections Tiscali, Iren and Go Internet € - – In partnership with Fastweb, Linkem is deploying large 5G fixed wireless (2) 2013 2014 2015 2016 2017 2018 2019 LTM – 46% subscriber CAGR since initial networks that should provide the fastest-available connection to the 6/30/20 investment in 2011 majority of covered premises – LTM 6/30/20 Revenue and Adjusted EBITDA of €137 million (1)(2) and €59 million, respectively Key Ownership Strategic Priorities Spectrum Value § Nationwide network deployment with base stations, fiber Details § Continue growing subscriber base in Linkem’s core § The value of Linkem’s frequency has increased exchange points, points of sale consumer fixed wireless broadband service, while significantly § 42% common / 56% fully and customers in every region maintaining excellent operating metrics and customer – The 3.5 GHz band is globally recognized as a core diluted ownership as of of Italy satisfaction band for 5G services 8/31/20; initial investment – 2,450+ base stations deployed, in July 2011§ Execute on recently-announced network sharing – The results of Italy’s 3.6-3.8 GHz frequency auction reaching 68% of the population that concluded on October 2, 2018 implied an agreements with Fastweb to roll out best-in-class 5G § Book Value at 8/31/20: $206 – Network is 100% 5G-ready LTE; estimated value of approximately €1.3 billion for service throughout Italy’s Tier 2/3 cities and into the (3) million; Fair Market Value trial 5G deployments in progress Linkem’s frequency, without ascribing any value to digital divide at 5/31/20: $630 million Linkem’s growing operating business, customers or – 620+ fiber points of presence § Leverage 5G experience and cost savings from the other assets – 6,000+ indirect sales and Fastweb partnership across the rest of Linkem’s network distribution points§ Linkem’s broad 5G spectrum holdings will allow § Expand the network into digital divide areas it to increase consumer broadband services as (representing up to 25% of the population) by leveraging well as higher-capacity B2B services and access to third-party networks connectivity for any 5G application, including integrating service with 5G mobile carriers to § Upsell additional services to customer base and expand provide bandwidth to mobile customers existing wholesale and B2B businesses See pages 66-71 at the back of this presentation for endnotes. 60Linkem – 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 § Approximately 85% of the Italian broadband market is served by fiber € 122.6 pre- and post-paid residential € 125 € 101.0 to the cabinet (FTTC) or legacy technologies; Linkem's current 4G customers unlimited broadband € 100 € 82.2 technology provides comparable or better service with much lower services for €27/month € 63.3 € 75 capex and an unmatched speed of deployment € 49.5 – Linkem also sells its services € 50 € 28.5 through wholesale and strategic § The company is transitioning its network to 5G, which will greatly partners including Telecom Italia, € 25 increase the speed and quality of its connections Tiscali, Iren and Go Internet € - – In partnership with Fastweb, Linkem is deploying large 5G fixed wireless (2) 2013 2014 2015 2016 2017 2018 2019 LTM – 46% subscriber CAGR since initial networks that should provide the fastest-available connection to the 6/30/20 investment in 2011 majority of covered premises – LTM 6/30/20 Revenue and Adjusted EBITDA of €137 million (1)(2) and €59 million, respectively Key Ownership Strategic Priorities Spectrum Value § Nationwide network deployment with base stations, fiber Details § Continue growing subscriber base in Linkem’s core § The value of Linkem’s frequency has increased exchange points, points of sale consumer fixed wireless broadband service, while significantly § 42% common / 56% fully and customers in every region maintaining excellent operating metrics and customer – The 3.5 GHz band is globally recognized as a core diluted ownership as of of Italy satisfaction band for 5G services 8/31/20; initial investment – 2,450+ base stations deployed, in July 2011§ Execute on recently-announced network sharing – The results of Italy’s 3.6-3.8 GHz frequency auction reaching 68% of the population that concluded on October 2, 2018 implied an agreements with Fastweb to roll out best-in-class 5G § Book Value at 8/31/20: $206 – Network is 100% 5G-ready LTE; estimated value of approximately €1.3 billion for service throughout Italy’s Tier 2/3 cities and into the (3) million; Fair Market Value trial 5G deployments in progress Linkem’s frequency, without ascribing any value to digital divide at 5/31/20: $630 million Linkem’s growing operating business, customers or – 620+ fiber points of presence § Leverage 5G experience and cost savings from the other assets – 6,000+ indirect sales and Fastweb partnership across the rest of Linkem’s network distribution points§ Linkem’s broad 5G spectrum holdings will allow § Expand the network into digital divide areas it to increase consumer broadband services as (representing up to 25% of the population) by leveraging well as higher-capacity B2B services and access to third-party networks connectivity for any 5G application, including integrating service with 5G mobile carriers to § Upsell additional services to customer base and expand provide bandwidth to mobile customers existing wholesale and B2B businesses See pages 66-71 at the back of this presentation for endnotes. 60


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 $114.5 process, the vast majority of HomeFed’s $89.4 $86.9 $33.0 $40 $100 $69.5 assets are now either operating real $59.5 estate or entitled land that is ready for $31.3 $20 $50 sale/monetization $0.0 $0.0 $0.0 $0.0 $0.0 $0 $0 § HomeFed also has a substantial pipeline (2) 2014 2015 2016 2017 2018 2019 YTD 2014 2015 2016 2017 2018 2019 YTD 9/30/20 of vertical development projects (primarily Q3'20 multi-family residential apartments) that will be developed and operated over time Key Ownership Details Strategic Priorities Key Assets § Date of Initial Investment: § Optimize assets and leverage the § Otay Ranch assets (Chula Vista, CA) July 1995 experienced team to focus on expediting – ~4,450 acres of land entitled for 13,050 total units being developed in distinct villages development programs and maximizing – Home sales and development have remained strong through COVID -19, as the first village in § Book Value at 8/31/20: development at Otay (Escaya) has sold 942 of 992 total planned homes through 8/31/20 revenue and return over the coming years $457 million; Fair Market (1) – Development of the second village (Cota Vera) is well underway and is planned for ~2,334 homes and Value at 5/31/20: § Develop apartment pipeline and operate the 117,000-300,000 sqft of retail; offers have been received from various homebuilders and are currently $450 million resulting stabilized cash flow generating being evaluated vertical assets § Ownership: 100% § Renaissance Plaza (Brooklyn, NY) – Construction on the first project (mixed-use – On 7/1/19, Jefferies closed – Mixed use asset comprised of an office building, Marriott hotel and garage development in Escaya, CA) is complete and the acquisition of 30% of – Refinanced two office condos in 2018 and 2019, generating approximately $119 million in proceeds to leasing up at a strong pace with additional HomeFed it did not already own HomeFed projects underway via an all-stock deal – HomeFed has conservatively written down its entire minority stake in the Marriott hotel due to – Evaluate opportunities to raise third party capital – HomeFed has since made challenges created by the COVID -19 environment to accelerate development projects and approximately $93 million of enhance returns to HomeFed and Jefferies§ Sweetbay (Panama City, FL) distributions to Jefferies – Development of single family homes and other products continue; a 300-unit apartment project is § Continue to explore opportunities outside its anticipated to start in late-2020 core geographies and pursue the entitlement process at HomeFed’s earlier stage projects § Fanita Ranch (Santee, CA) to feed its pipeline – City Council approved ~3,000 units in September 2020 See pages 66-71 at the back of this presentation for endnotes. 61HomeFed – Overview Company Overview Revenue Distributions to Jefferies § Developer/owner of residential and mixed- ($ 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 $114.5 process, the vast majority of HomeFed’s $89.4 $86.9 $33.0 $40 $100 $69.5 assets are now either operating real $59.5 estate or entitled land that is ready for $31.3 $20 $50 sale/monetization $0.0 $0.0 $0.0 $0.0 $0.0 $0 $0 § HomeFed also has a substantial pipeline (2) 2014 2015 2016 2017 2018 2019 YTD 2014 2015 2016 2017 2018 2019 YTD 9/30/20 of vertical development projects (primarily Q3'20 multi-family residential apartments) that will be developed and operated over time Key Ownership Details Strategic Priorities Key Assets § Date of Initial Investment: § Optimize assets and leverage the § Otay Ranch assets (Chula Vista, CA) July 1995 experienced team to focus on expediting – ~4,450 acres of land entitled for 13,050 total units being developed in distinct villages development programs and maximizing – Home sales and development have remained strong through COVID -19, as the first village in § Book Value at 8/31/20: development at Otay (Escaya) has sold 942 of 992 total planned homes through 8/31/20 revenue and return over the coming years $457 million; Fair Market (1) – Development of the second village (Cota Vera) is well underway and is planned for ~2,334 homes and Value at 5/31/20: § Develop apartment pipeline and operate the 117,000-300,000 sqft of retail; offers have been received from various homebuilders and are currently $450 million resulting stabilized cash flow generating being evaluated vertical assets § Ownership: 100% § Renaissance Plaza (Brooklyn, NY) – Construction on the first project (mixed-use – On 7/1/19, Jefferies closed – Mixed use asset comprised of an office building, Marriott hotel and garage development in Escaya, CA) is complete and the acquisition of 30% of – Refinanced two office condos in 2018 and 2019, generating approximately $119 million in proceeds to leasing up at a strong pace with additional HomeFed it did not already own HomeFed projects underway via an all-stock deal – HomeFed has conservatively written down its entire minority stake in the Marriott hotel due to – Evaluate opportunities to raise third party capital – HomeFed has since made challenges created by the COVID -19 environment to accelerate development projects and approximately $93 million of enhance returns to HomeFed and Jefferies§ Sweetbay (Panama City, FL) distributions to Jefferies – Development of single family homes and other products continue; a 300-unit apartment project is § Continue to explore opportunities outside its anticipated to start in late-2020 core geographies and pursue the entitlement process at HomeFed’s earlier stage projects § Fanita Ranch (Santee, CA) to feed its pipeline – City Council approved ~3,000 units in September 2020 See pages 66-71 at the back of this presentation for endnotes. 61


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). Started Vitesse (“VE”) in 2014 participate in lower risk infill horizontal development drilling in the core areas of the Bakken that should then produce 30%+ drill bit level IRRs § Denver based non-operating investor that has curated a diversified portfolio of oil & gas assets (under 5% avg. per lease) through which it acquires, develops and produces oil and gas derived cash flow§ VE will take advantage of its low leverage (Debt/EBITDA) to attract and participate in the highest rate of return opportunities (acquisitions and § The company co-invests in horizontal well development with leading US operating partners. As a non-op partner, drilling) VE leverages the technology, operating and development expertise of its partners without duplicating those costs which enhances VE’s returns. Operating partners include EOG, Conoco, Exxon, Marathon, Hess, Equinor, WPX, § Enhance in-house Big Data capabilities that identify which operators Continental and others and locations in the Bakken produce the highest risk adjusted returns for VE to deploy its capex budget. Capex projected to continue to be § Most of VE’s value remains yet to be developed into future cash flowing wells. Returns are expected to benefit funded from free cash flow from oil’s projected rise to $50/bbl and improving completion technologies which increase reserves per new well. Development capex is funded from cash flow from operations§ Evaluate opportunities for merger or combinations that could provide liquidity § $425 million net cash ($530 million book value) of remaining investment. Production reached 11,000boe/day at beginning of 2020 flowing from 4,500 gross wells (92 net) with 300+ net high return development locations in inventory for future development Recent Developments § Production for Q3 2020 was 8,300 boe/day down from 11,000 boe/day at EOY 2019 due to lower oil demand as a results of the COVID-19 pandemic. Projected year end rate of approximately 8,500 boe/day Key Market Trends § Over 100% of 2020 production hedged at $60/bbl average. Over 50% § Oil prices fell precipitously in Q2 2020 as a result of the COVID-19 pandemic causing operators to curtail new of 2021 projected production hedged at $54/bbl with additional hedges development and some flowing wells were shut in to be added over time when prices make sense § June was low point in Bakken production. Development expected to recommence as oil approaches $50/bbl (1) § 2020 Q3 Adjusted EBITDA was $21 million projected to occur in 2021 § Bakken horizontal development returns are higher at $50/bbl oil than in 2014 when oil was over $85/bbl due to increased drilling efficiency, lower drilling costs and improving completion methods that nearly doubled reserves for new wells from 600 mboe to over 1,000 mboe Key Ownership Details § Bakken achieved record field production of 1.4 million/bbl/day at EOY 2019, now 1.0 million/bbl/day with 20% of § Jefferies Ownership: 97% (Management owns remaining 3%) Bakken wells currently shut-in. Field now in low risk “manufacturing” mode and expect shut-in wells to be (2) § Book Value at 8/31/20: $530 million; Fair Market Value at 5/31/20: brought back to production by year end $522 million See pages 66-71 at the back of this presentation for endnotes. 62Vitesse 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). Started Vitesse (“VE”) in 2014 participate in lower risk infill horizontal development drilling in the core areas of the Bakken that should then produce 30%+ drill bit level IRRs § Denver based non-operating investor that has curated a diversified portfolio of oil & gas assets (under 5% avg. per lease) through which it acquires, develops and produces oil and gas derived cash flow§ VE will take advantage of its low leverage (Debt/EBITDA) to attract and participate in the highest rate of return opportunities (acquisitions and § The company co-invests in horizontal well development with leading US operating partners. As a non-op partner, drilling) VE leverages the technology, operating and development expertise of its partners without duplicating those costs which enhances VE’s returns. Operating partners include EOG, Conoco, Exxon, Marathon, Hess, Equinor, WPX, § Enhance in-house Big Data capabilities that identify which operators Continental and others and locations in the Bakken produce the highest risk adjusted returns for VE to deploy its capex budget. Capex projected to continue to be § Most of VE’s value remains yet to be developed into future cash flowing wells. Returns are expected to benefit funded from free cash flow from oil’s projected rise to $50/bbl and improving completion technologies which increase reserves per new well. Development capex is funded from cash flow from operations§ Evaluate opportunities for merger or combinations that could provide liquidity § $425 million net cash ($530 million book value) of remaining investment. Production reached 11,000boe/day at beginning of 2020 flowing from 4,500 gross wells (92 net) with 300+ net high return development locations in inventory for future development Recent Developments § Production for Q3 2020 was 8,300 boe/day down from 11,000 boe/day at EOY 2019 due to lower oil demand as a results of the COVID-19 pandemic. Projected year end rate of approximately 8,500 boe/day Key Market Trends § Over 100% of 2020 production hedged at $60/bbl average. Over 50% § Oil prices fell precipitously in Q2 2020 as a result of the COVID-19 pandemic causing operators to curtail new of 2021 projected production hedged at $54/bbl with additional hedges development and some flowing wells were shut in to be added over time when prices make sense § June was low point in Bakken production. Development expected to recommence as oil approaches $50/bbl (1) § 2020 Q3 Adjusted EBITDA was $21 million projected to occur in 2021 § Bakken horizontal development returns are higher at $50/bbl oil than in 2014 when oil was over $85/bbl due to increased drilling efficiency, lower drilling costs and improving completion methods that nearly doubled reserves for new wells from 600 mboe to over 1,000 mboe Key Ownership Details § Bakken achieved record field production of 1.4 million/bbl/day at EOY 2019, now 1.0 million/bbl/day with 20% of § Jefferies Ownership: 97% (Management owns remaining 3%) Bakken wells currently shut-in. Field now in low risk “manufacturing” mode and expect shut-in wells to be (2) § Book Value at 8/31/20: $530 million; Fair Market Value at 5/31/20: brought back to production by year end $522 million See pages 66-71 at the back of this presentation for endnotes. 62


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 segments § All segments (Remanufacturing, Board and Sawmill) benefited as a result § 7 plants and 3 sawmills located in 7 states of stay-at-home orders and social distancing driving home improvement – ~1.0 billion board feet of capacity and construction § Remanufacturing segment § Geographic diversification and open-air, well-ventilated facilities allowed – Purchase low value dimension lumber and remanufacture to add value for pro dealers and lumber yards Idaho Timber to maintain steady production – Grade, bundle and bar code proprietary board products for major home center stores § Supply costs were favorable as typical industrial and Asian-based market § Sawmill segment participants were not as active in bidding for low grade inputs and other – Sawmills in Arkansas, Louisiana and Idaho producing southern yellow pine and cedar products primarily for sale to manufacturers decided to idle facilities lumber treating companies and pro dealers § This combination of product demand and availability of favorably priced – End market is predominantly treated decking for sale in home centers inputs has led to record profit § Strong management team is led by CEO Ted Ellis, who has been with the company for 30 years § Highly cash generative given low cap-ex required to maintain operations Strategic Priorities Financial Performance § Focus on timely purchasing opportunities to enhance revenue and margins (2) (3) (4) FY 11 M FY 9 M 9 M § Continue to improve efficiency at primary sawmills ($ Millions) 2015 2016 2017 2018 2019 2019 2020 § Position operations to increase spread and volumes in remanufacturing segment $257.8 $276.6 $318.9 $357.5 $324.8 $248.3 $282.8 Revenue § Work with home center clients to develop unique programs, product line expansion and margin improvement % Growth 2.4% 7.3% 15.3% 13.9% Pre-Tax $16.1 $20.3 $28.9 $35.7 $18.0 $13.3 $42.6 Income Key Ownership Details 6.2% 7.3% 9.1% 10.0% 5.5% 5.3% 15.1% % Margin § Ownership: 100% (5) EBITDA $19.9 $23.0 $32.2 $39.0 $22.2 $16.4 $45.8 (1) § Book Value at 8/31/20: $92 million; Fair Market Value at 5/31/20: $155 million See pages 66-71 at the back of this presentation for endnotes. 63Idaho Timber – Overview Company Overview Recent Developments § Manufacturer and distributor of wood products§ High lumber demand in combination with limited supply response due to COVID-19 related disruptions led to favorable pricing and record results – Complementary Remanufacturing and Sawmill segments § All segments (Remanufacturing, Board and Sawmill) benefited as a result § 7 plants and 3 sawmills located in 7 states of stay-at-home orders and social distancing driving home improvement – ~1.0 billion board feet of capacity and construction § Remanufacturing segment § Geographic diversification and open-air, well-ventilated facilities allowed – Purchase low value dimension lumber and remanufacture to add value for pro dealers and lumber yards Idaho Timber to maintain steady production – Grade, bundle and bar code proprietary board products for major home center stores § Supply costs were favorable as typical industrial and Asian-based market § Sawmill segment participants were not as active in bidding for low grade inputs and other – Sawmills in Arkansas, Louisiana and Idaho producing southern yellow pine and cedar products primarily for sale to manufacturers decided to idle facilities lumber treating companies and pro dealers § This combination of product demand and availability of favorably priced – End market is predominantly treated decking for sale in home centers inputs has led to record profit § Strong management team is led by CEO Ted Ellis, who has been with the company for 30 years § Highly cash generative given low cap-ex required to maintain operations Strategic Priorities Financial Performance § Focus on timely purchasing opportunities to enhance revenue and margins (2) (3) (4) FY 11 M FY 9 M 9 M § Continue to improve efficiency at primary sawmills ($ Millions) 2015 2016 2017 2018 2019 2019 2020 § Position operations to increase spread and volumes in remanufacturing segment $257.8 $276.6 $318.9 $357.5 $324.8 $248.3 $282.8 Revenue § Work with home center clients to develop unique programs, product line expansion and margin improvement % Growth 2.4% 7.3% 15.3% 13.9% Pre-Tax $16.1 $20.3 $28.9 $35.7 $18.0 $13.3 $42.6 Income Key Ownership Details 6.2% 7.3% 9.1% 10.0% 5.5% 5.3% 15.1% % Margin § Ownership: 100% (5) EBITDA $19.9 $23.0 $32.2 $39.0 $22.2 $16.4 $45.8 (1) § Book Value at 8/31/20: $92 million; Fair Market Value at 5/31/20: $155 million See pages 66-71 at the back of this presentation for endnotes. 63


Q & A Session Please submit questions using the webcast question boxQ & A Session Please submit questions using the webcast question box


AppendixAppendix


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 amounts. Net Earnings (Loss) in 1990-2012 are attributable to Common Shareholders. Net Earnings in 2013-2020 are attributable to Jefferies Group LLC. Jefferies Group's results in 2013 for the Successor period includes the results of operations for the first quarter ending 2/28/13, which are part of the Predecessor period. The Predecessor and Successor periods are separated by a vertical line to highlight the fact that the financial information for such periods have been prepared under two different cost bases of accounting. Results in 2010 are for the 11 months ended November 30, 2010. (2) 2008 post-tax loss of $541 million includes expenses of $427 million related to the modification of employee stock awards and restructuring activities, offset by $434 million equity raise. 2018 GAAP net earnings attributable to Jefferies Group LLC of $159 million are adjusted to exclude the provisional tax charge of $165 million related to the enactment of the Tax Cuts and Jobs Act that was recorded in the year ended November 30, 2018. These notes refer to page 7 (1) Tangible Book Value is a non-GAAP measure. See Appendix on page 75 for reconciliation to GAAP amounts. These notes refer to page 8 (1) Based on beginning of period tangible Jefferies Group LLC member’s equity. See Appendix on page 73 for reconciliation to GAAP amounts. These notes refer to page 9 (1) Jefferies Group's results in 2013 for the Successor period includes the results of operations for the first quarter ending 2/ 28/13, which are part of the Predecessor period. The Predecessor and Successor periods are separated by a vertical line to highlight the fact that the financial information for s uch periods have been prepared under two different cost bases of accounting. Results in 2010 are for the 11 months ended November 30, 2010. These notes refer to page 10 Source: Dealogic. These notes refer to page 11 Source: Dealogic. (1) Defined as Jefferies’ fiscal Q2 and Q3 2020 (from March 1, 2020 through August 31, 2020). 66Endnotes 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 amounts. Net Earnings (Loss) in 1990-2012 are attributable to Common Shareholders. Net Earnings in 2013-2020 are attributable to Jefferies Group LLC. Jefferies Group's results in 2013 for the Successor period includes the results of operations for the first quarter ending 2/28/13, which are part of the Predecessor period. The Predecessor and Successor periods are separated by a vertical line to highlight the fact that the financial information for such periods have been prepared under two different cost bases of accounting. Results in 2010 are for the 11 months ended November 30, 2010. (2) 2008 post-tax loss of $541 million includes expenses of $427 million related to the modification of employee stock awards and restructuring activities, offset by $434 million equity raise. 2018 GAAP net earnings attributable to Jefferies Group LLC of $159 million are adjusted to exclude the provisional tax charge of $165 million related to the enactment of the Tax Cuts and Jobs Act that was recorded in the year ended November 30, 2018. These notes refer to page 7 (1) Tangible Book Value is a non-GAAP measure. See Appendix on page 75 for reconciliation to GAAP amounts. These notes refer to page 8 (1) Based on beginning of period tangible Jefferies Group LLC member’s equity. See Appendix on page 73 for reconciliation to GAAP amounts. These notes refer to page 9 (1) Jefferies Group's results in 2013 for the Successor period includes the results of operations for the first quarter ending 2/ 28/13, which are part of the Predecessor period. The Predecessor and Successor periods are separated by a vertical line to highlight the fact that the financial information for s uch periods have been prepared under two different cost bases of accounting. Results in 2010 are for the 11 months ended November 30, 2010. These notes refer to page 10 Source: Dealogic. These notes refer to page 11 Source: Dealogic. (1) Defined as Jefferies’ fiscal Q2 and Q3 2020 (from March 1, 2020 through August 31, 2020). 66


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 LTM Q1’16 adjusted to exclude results from Bache. See Appendix on page 74 for reconciliation to GAAP amounts. (3) Sourced from Greenwich Associates COVID -19 Equity Investors Flash Study, April 2020. These notes refer to page 13 (1) Aggregate NAV and NAV-equivalent Assets Under Management for all strategies as of 8/31/20. These notes refer to page 16 (1) Tangible Book Value is a non-GAAP measure. See Appendix on page 75 for reconciliation to GAAP amount. These notes refer to page 17 (1) Fully diluted shares outstanding, a non- GAAP measure, is defined as Jefferies Financial Group’s common shares outstanding plus restricted stock and other shares. Refer to Appendix on page 77 for reconciliation to GAAP amounts. These notes refer to page 20 (1) Tangible gross leverage ratio (a non-GAAP financial measure) equals total assets of $46,660 million less goodwill and identifiable intangible assets of $1,806 million divided by tangible Jefferies Group LLC member's equity of $4,682 million. Tangible Jefferies Group LLC Member's equity (a non- GAAP financial measure) represents total Jefferies Group LLC member's equity of $6,488 million less goodwill and identifiable intangible assets of $1,806 million. The tangible gross leverage ratio is used by rating agencies in assessing our leverage ratio. These notes refer to page 21 Note: As presented in Jefferies Group LLC public filings. (1) Leverage ratio equals total assets divided by total equity. (2) Tangible gross leverage ratio (a non-GAAP financial measure) equals total assets of $46,660 million less goodwill and identifiable intangible assets of $1,806 million divided by tangible Jefferies Group LLC member's equity of $4,682 million. Tangible Jefferies Group LLC Member's equity (a non- GAAP financial measure) represents total Jefferies Group LLC member's equity of $6,488 million less goodwill and identifiable intangible assets of $1,806 million. The tangible gross leverage ratio is used by rating agencies in assessing our leverage ratio. 67Endnotes 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 LTM Q1’16 adjusted to exclude results from Bache. See Appendix on page 74 for reconciliation to GAAP amounts. (3) Sourced from Greenwich Associates COVID -19 Equity Investors Flash Study, April 2020. These notes refer to page 13 (1) Aggregate NAV and NAV-equivalent Assets Under Management for all strategies as of 8/31/20. These notes refer to page 16 (1) Tangible Book Value is a non-GAAP measure. See Appendix on page 75 for reconciliation to GAAP amount. These notes refer to page 17 (1) Fully diluted shares outstanding, a non- GAAP measure, is defined as Jefferies Financial Group’s common shares outstanding plus restricted stock and other shares. Refer to Appendix on page 77 for reconciliation to GAAP amounts. These notes refer to page 20 (1) Tangible gross leverage ratio (a non-GAAP financial measure) equals total assets of $46,660 million less goodwill and identifiable intangible assets of $1,806 million divided by tangible Jefferies Group LLC member's equity of $4,682 million. Tangible Jefferies Group LLC Member's equity (a non- GAAP financial measure) represents total Jefferies Group LLC member's equity of $6,488 million less goodwill and identifiable intangible assets of $1,806 million. The tangible gross leverage ratio is used by rating agencies in assessing our leverage ratio. These notes refer to page 21 Note: As presented in Jefferies Group LLC public filings. (1) Leverage ratio equals total assets divided by total equity. (2) Tangible gross leverage ratio (a non-GAAP financial measure) equals total assets of $46,660 million less goodwill and identifiable intangible assets of $1,806 million divided by tangible Jefferies Group LLC member's equity of $4,682 million. Tangible Jefferies Group LLC Member's equity (a non- GAAP financial measure) represents total Jefferies Group LLC member's equity of $6,488 million less goodwill and identifiable intangible assets of $1,806 million. The tangible gross leverage ratio is used by rating agencies in assessing our leverage ratio. 67


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. These notes refer to page 24 (1) Since April 1, 2018. Includes share repurchases, normal and special dividends. (2) Tangible Book Value is a non-GAAP financial measure. See Appendix on page 75 for reconciliation to GAAP amounts. These notes refer to page 25 (1) Fair market values as of May 31, 2020 are adjusted for Investments in Public Companies as of August 31, 2020. See Appendix on page 83 for reconciliation to GAAP amount. (2) Primarily HomeFed. (3) Tangible Book Value is a non-GAAP measure. See Appendix on pages 78 – 79 for reconciliation to GAAP amount. These notes refer to page 29 Note: Industry data sourced from Dealogic. As reported in Jefferies Group public filings. (1) Excludes Other Investment Banking revenues. These notes refer to page 30, 31, 35 Source: Dealogic. These notes refer to page 36 Source: Dealogic. (1) All underwriting fees attributable to investment banks, including fees realized at time of SPAC IPO and potential fees to be realized at time of future SPAC initial business combination. 68Endnotes 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. These notes refer to page 24 (1) Since April 1, 2018. Includes share repurchases, normal and special dividends. (2) Tangible Book Value is a non-GAAP financial measure. See Appendix on page 75 for reconciliation to GAAP amounts. These notes refer to page 25 (1) Fair market values as of May 31, 2020 are adjusted for Investments in Public Companies as of August 31, 2020. See Appendix on page 83 for reconciliation to GAAP amount. (2) Primarily HomeFed. (3) Tangible Book Value is a non-GAAP measure. See Appendix on pages 78 – 79 for reconciliation to GAAP amount. These notes refer to page 29 Note: Industry data sourced from Dealogic. As reported in Jefferies Group public filings. (1) Excludes Other Investment Banking revenues. These notes refer to page 30, 31, 35 Source: Dealogic. These notes refer to page 36 Source: Dealogic. (1) All underwriting fees attributable to investment banks, including fees realized at time of SPAC IPO and potential fees to be realized at time of future SPAC initial business combination. 68


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 execution volume growth FYTD (December – August) 2020 vs. 2019 for Global Cash and Electronic Trading. (3) Sourced from Greenwich Associates COVID -19 Equity Investors Flash Study, April 2020. These notes refer to page 42 (1) Ranks reflect most recent available rankings from various publications. (2) Cash includes Cash, Algo and PT. Cash and Options sourced from Third Party Market Survey. 2020 represents 1H20 results and 2015 reflects full-year results. Convertibles sourced from Greenwich Associates. These notes refer to page 43 (1) Revenues reflect Global Equities Capital Markets net revenues on a fiscal-year basis. 2020 reflects LTM (September 2019 through August 2020). These notes refer to page 44 (1) Revenues reflect Global Equities Capital Markets net revenues on a fiscal-year basis. 2020 reflects LTM (September 2019 through August 2020). By Product revenue percentages only reflect High Touch Cash and Non High Touch Cash sales and trading products. These notes refer to page 47 Note: As presented in Jefferies Group LLC public filings. (1) LTM Q1 2016 adjusted to exclude results from Bache. See Appendix on page 74 for reconciliation to GAAP amount. (2) Average Cash Capital Plus Liquidity Buffer. (3) Average Headcount with LTM Q1’16 adjusted to include Financial Futures and FX, new businesses that were added in FY 2015. (4) Average worst case stress. (5) Based on daily Fixed Income revenues. 69Endnotes 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 execution volume growth FYTD (December – August) 2020 vs. 2019 for Global Cash and Electronic Trading. (3) Sourced from Greenwich Associates COVID -19 Equity Investors Flash Study, April 2020. These notes refer to page 42 (1) Ranks reflect most recent available rankings from various publications. (2) Cash includes Cash, Algo and PT. Cash and Options sourced from Third Party Market Survey. 2020 represents 1H20 results and 2015 reflects full-year results. Convertibles sourced from Greenwich Associates. These notes refer to page 43 (1) Revenues reflect Global Equities Capital Markets net revenues on a fiscal-year basis. 2020 reflects LTM (September 2019 through August 2020). These notes refer to page 44 (1) Revenues reflect Global Equities Capital Markets net revenues on a fiscal-year basis. 2020 reflects LTM (September 2019 through August 2020). By Product revenue percentages only reflect High Touch Cash and Non High Touch Cash sales and trading products. These notes refer to page 47 Note: As presented in Jefferies Group LLC public filings. (1) LTM Q1 2016 adjusted to exclude results from Bache. See Appendix on page 74 for reconciliation to GAAP amount. (2) Average Cash Capital Plus Liquidity Buffer. (3) Average Headcount with LTM Q1’16 adjusted to include Financial Futures and FX, new businesses that were added in FY 2015. (4) Average worst case stress. (5) Based on daily Fixed Income revenues. 69


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, and Market Penetration sourced from Greenwich Survey, where U.S. reflects data as of Q3 2020 and E.U. reflects 2019 results unless otherwise noted. Market Share represents % of trading volumes done with dealer. These notes refer to page 52 (1) Aggregate NAV and NAV-equivalent Assets Under Management for all strategies as of 8/31/20. These notes refer to page 53 (1) Represents Net Asset Value or Net Asset Value Equivalent as of 8/31/20. (2) Represents revenue share agreement. (3) Equity investment made 10/7/19. Not wholly-owned by Jefferies Financial Group. (4) Not wholly-owned by Jefferies Financial Group. (5) Jefferies Finance (JFIN) is a 50/50 joint venture between Jefferies and Mass Mutual Life Insurance Company. Our share of net earnings from JFIN are included in Investment Banking net revenues. (6) No third party NAV Equivalent AUM as of 8/31/20. 70Endnotes 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, and Market Penetration sourced from Greenwich Survey, where U.S. reflects data as of Q3 2020 and E.U. reflects 2019 results unless otherwise noted. Market Share represents % of trading volumes done with dealer. These notes refer to page 52 (1) Aggregate NAV and NAV-equivalent Assets Under Management for all strategies as of 8/31/20. These notes refer to page 53 (1) Represents Net Asset Value or Net Asset Value Equivalent as of 8/31/20. (2) Represents revenue share agreement. (3) Equity investment made 10/7/19. Not wholly-owned by Jefferies Financial Group. (4) Not wholly-owned by Jefferies Financial Group. (5) Jefferies Finance (JFIN) is a 50/50 joint venture between Jefferies and Mass Mutual Life Insurance Company. Our share of net earnings from JFIN are included in Investment Banking net revenues. (6) No third party NAV Equivalent AUM as of 8/31/20. 70


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 historical figures per company audits. (3) Fair market value is a non-GAAP financial measure. See Appendix on page 83 for reconciliation to GAAP amount. These notes refer to page 61 (1) Fair market value is a non-GAAP financial measure. See Appendix on page 83 for reconciliation to GAAP amount. (2) 2019 represents revenue for the 11 month period of January 1 - November 30, 2019. These notes refer to page 62 (1) Adjusted EBITDA is a non-GAAP financial measure. See Appendix on page 81 for reconciliation to GAAP amount. (2) Fair market value is a non-GAAP financial measure. See Appendix on page 83 for reconciliation to GAAP amount. These notes refer to page 63 (1) Fair market value is a non-GAAP financial measure. See Appendix on page 83 for reconciliation to GAAP amount. (2) Fiscal year ended December 31. (3) Eleven months ended November 30. (4) Fiscal year ended November 30. (5) EBITDA is a non-GAAP financial measure. See Appendix on page 82 for reconciliation to GAAP amount. 71Endnotes 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 historical figures per company audits. (3) Fair market value is a non-GAAP financial measure. See Appendix on page 83 for reconciliation to GAAP amount. These notes refer to page 61 (1) Fair market value is a non-GAAP financial measure. See Appendix on page 83 for reconciliation to GAAP amount. (2) 2019 represents revenue for the 11 month period of January 1 - November 30, 2019. These notes refer to page 62 (1) Adjusted EBITDA is a non-GAAP financial measure. See Appendix on page 81 for reconciliation to GAAP amount. (2) Fair market value is a non-GAAP financial measure. See Appendix on page 83 for reconciliation to GAAP amount. These notes refer to page 63 (1) Fair market value is a non-GAAP financial measure. See Appendix on page 83 for reconciliation to GAAP amount. (2) Fiscal year ended December 31. (3) Eleven months ended November 30. (4) Fiscal year ended November 30. (5) EBITDA is a non-GAAP financial measure. See Appendix on page 82 for reconciliation to GAAP amount. 71


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) (80) (1) Adjusted Net Revenues (non-GAAP) $2,403 $2,770 $2,744 $2,787 $2,395 (3) Net Earnings (GAAP) $285 $282 $251 $158 $94 Adjustments to Remove Bache (71) 3 30 99 89 (3) Adjusted Net Earnings (non-GAAP) $214 $285 $281 $257 $183 Note: The above tables reconcile certain Jefferies Group non-GAAP financial information to their respective U.S. GAAP measures. Jefferies Group believes that the disclosed Adjusted non-GAAP measures and any adjustments thereto, when presented in conjunction with comparable U.S. GAAP measures are useful to investors as they enable investors to evaluate Jefferies Group es rults through the eyes of management. These measures should not be considered a substitute for, or superior to, measures of financial performance prepared in accordance with U.S. GAAP. (1) For the Years Ended 2012 and 2011, Net Revenues are defined as Net Revenues, less interest on mandatorily redeemable preferre d interests of consolidated subsidiaries. (2) Revenues generated by the Bache business, including commissions, principal transaction revenues and net interest revenue, forthe presented period have been classified as a reduction of revenue in the presentation of Adjusted financial measures. (3) For the Years Ended 2015 and 2014, Net Earnings are defined as Net earnings attributable to Jefferies Group. For the Year s Ended 2012 and 2011, Net Earnings are defined as Net earnings attributable to common shareholders.“ (4) Jefferies Group's results in 2013 for the Successor period includes the results of operations for the first quarter ending 28/ 2/ 13, which are part of the Predecessor period. The Predecessor and Successor periods are separated by a vertical line to highlight the fact that the financial information for such periods have been prepared under two different cost bases of accounting. 72Reconciliation to Remove the Impact of the Bache Business from Jefferies Group Historical Firmwide Results ($ 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) (80) (1) Adjusted Net Revenues (non-GAAP) $2,403 $2,770 $2,744 $2,787 $2,395 (3) Net Earnings (GAAP) $285 $282 $251 $158 $94 Adjustments to Remove Bache (71) 3 30 99 89 (3) Adjusted Net Earnings (non-GAAP) $214 $285 $281 $257 $183 Note: The above tables reconcile certain Jefferies Group non-GAAP financial information to their respective U.S. GAAP measures. Jefferies Group believes that the disclosed Adjusted non-GAAP measures and any adjustments thereto, when presented in conjunction with comparable U.S. GAAP measures are useful to investors as they enable investors to evaluate Jefferies Group es rults through the eyes of management. These measures should not be considered a substitute for, or superior to, measures of financial performance prepared in accordance with U.S. GAAP. (1) For the Years Ended 2012 and 2011, Net Revenues are defined as Net Revenues, less interest on mandatorily redeemable preferre d interests of consolidated subsidiaries. (2) Revenues generated by the Bache business, including commissions, principal transaction revenues and net interest revenue, forthe presented period have been classified as a reduction of revenue in the presentation of Adjusted financial measures. (3) For the Years Ended 2015 and 2014, Net Earnings are defined as Net earnings attributable to Jefferies Group. For the Year s Ended 2012 and 2011, Net Earnings are defined as Net earnings attributable to common shareholders.“ (4) Jefferies Group's results in 2013 for the Successor period includes the results of operations for the first quarter ending 28/ 2/ 13, which are part of the Predecessor period. The Predecessor and Successor periods are separated by a vertical line to highlight the fact that the financial information for such periods have been prepared under two different cost bases of accounting. 72


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) Jefferies Group Goodwill and Identifiable Intangible Annualized Net Earnings (1,814) (1,810) (1,800) $694 $523 $1,072 $763 Assets Attributable to Jefferies Group Tangible Jefferies Group Member's (1) $4,311 $4,503 $4,612 Return on Tangible Equity 16.1% 11.6% 23.2% 17.7% Equity (non-GAAP) Note: The above tables reconcile certain Jefferies Group non-GAAP financial information to their respective U.S. GAAP measures. Jefferies Group believes that the disclosed Adjusted non-GAAP measures and any adjustments thereto, when presented in conjunction with comparable U.S. GAAP measures are useful to investors as they enable investors to evaluate Jefferies Group es rults through the eyes of management. These measures should not be considered a substitute for, or superior to, measures of financial performance prepared in accordance with U.S. GAAP. (1) Return on Tangible Equity (a non-GAAP measure) equals our annualized net earnings attributable to Jefferies Group divided by beginning of period tangible Jefferies Group member's equity (a non G- AAP measure). Tangible Jefferies Group member's equity (a non-GAAP measure) represents total Jefferies Group member's equity less goodwill and identifiable intangible assets. 73Jefferies Group – Reconciliation of Return on Tangible Equity (a non- GAAP measure) ($ 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) Jefferies Group Goodwill and Identifiable Intangible Annualized Net Earnings (1,814) (1,810) (1,800) $694 $523 $1,072 $763 Assets Attributable to Jefferies Group Tangible Jefferies Group Member's (1) $4,311 $4,503 $4,612 Return on Tangible Equity 16.1% 11.6% 23.2% 17.7% Equity (non-GAAP) Note: The above tables reconcile certain Jefferies Group non-GAAP financial information to their respective U.S. GAAP measures. Jefferies Group believes that the disclosed Adjusted non-GAAP measures and any adjustments thereto, when presented in conjunction with comparable U.S. GAAP measures are useful to investors as they enable investors to evaluate Jefferies Group es rults through the eyes of management. These measures should not be considered a substitute for, or superior to, measures of financial performance prepared in accordance with U.S. GAAP. (1) Return on Tangible Equity (a non-GAAP measure) equals our annualized net earnings attributable to Jefferies Group divided by beginning of period tangible Jefferies Group member's equity (a non G- AAP measure). Tangible Jefferies Group member's equity (a non-GAAP measure) represents total Jefferies Group member's equity less goodwill and identifiable intangible assets. 73


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 (non-GAAP) $191 Fiscal Year Ended 11/30/15 Jefferies Capital Markets Net Revenues (GAAP) $1,028 (1) Adjustments to Remove Bache (80) Adjusted Jefferies Capital Markets Net Revenues (non-GAAP) $948 Twelve Months Ended % Change 2/29/16 8/31/20 LTM 8/31/20 vs. LTM 2/29/16 Jefferies Fixed Income Net Revenues (GAAP) $201 $1,241 517% (1) Adjustments to Remove Bache (32) - Adjusted Jefferies Fixed Income Net Revenues (non-GAAP) $169 $1,241 636% Note: The above tables reconcile certain Jefferies Group non-GAAP financial information to their respective U.S. GAAP measures. Jefferies Group believes that the disclosed Adjusted non-GAAP measures and any adjustments thereto, when presented in conjunction with comparable U.S. GAAP measures are useful to investors as they enable investors to evaluate Jefferies Group es rults through the eyes of management. These measures should not be considered a substitute for, or superior to, measures of financial performance prepared in accordance with U.S. GAAP. (1) Revenues generated by the Bache business, including commissions, principal transaction revenues and net interest revenue, forthe presented periods have been classified as a reduction of revenues. 74Reconciliation to Remove the Impact of the Bache Business from Jefferies Group Historical Fixed Income and Capital Markets Results ($ 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 (non-GAAP) $191 Fiscal Year Ended 11/30/15 Jefferies Capital Markets Net Revenues (GAAP) $1,028 (1) Adjustments to Remove Bache (80) Adjusted Jefferies Capital Markets Net Revenues (non-GAAP) $948 Twelve Months Ended % Change 2/29/16 8/31/20 LTM 8/31/20 vs. LTM 2/29/16 Jefferies Fixed Income Net Revenues (GAAP) $201 $1,241 517% (1) Adjustments to Remove Bache (32) - Adjusted Jefferies Fixed Income Net Revenues (non-GAAP) $169 $1,241 636% Note: The above tables reconcile certain Jefferies Group non-GAAP financial information to their respective U.S. GAAP measures. Jefferies Group believes that the disclosed Adjusted non-GAAP measures and any adjustments thereto, when presented in conjunction with comparable U.S. GAAP measures are useful to investors as they enable investors to evaluate Jefferies Group es rults through the eyes of management. These measures should not be considered a substitute for, or superior to, measures of financial performance prepared in accordance with U.S. GAAP. (1) Revenues generated by the Bache business, including commissions, principal transaction revenues and net interest revenue, forthe presented periods have been classified as a reduction of revenues. 74


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) (1,865) Investment Banking, Capital Markets, & Asset Management Tangible Book Value (non-GAAP) $3,656 $4,993 Merchant Banking Shareholders' Equity (GAAP) $4,524 $1,969 Less: Intangible assets, net and goodwill (553) (50) Merchant Banking Tangible Book Value (non-GAAP) $3,972 $1,919 Cash and Other Shareholders' Equity (GAAP) $180 $ 585 Less: Intangible assets, net and goodwill - - Cash and Other Tangible Book Value (non-GAAP) $180 $585 3/31/18 8/31/20 Jefferies Financial Group Total Shareholders' Equity (GAAP) $10,259 $9,411 Less: Intangible assets, net and goodwill (2,451) (1,915) Jefferies Financial Group Total Tangible Book Value (non-GAAP) $7,808 $7,496 Note: Tangible book value is a non-GAAP financial measure that begins with information prepared in accordance with U.S. GAAP andis then adjusted to remove intangible assets, net and goodwill. Tangible book value is a common metric used by many investors to evaluate performance from period to period. 75Reconciliation of Jefferies Financial Group Shareholders' Equity to Tangible Book Value by Component (a non-GAAP measure) ($ 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) (1,865) Investment Banking, Capital Markets, & Asset Management Tangible Book Value (non-GAAP) $3,656 $4,993 Merchant Banking Shareholders' Equity (GAAP) $4,524 $1,969 Less: Intangible assets, net and goodwill (553) (50) Merchant Banking Tangible Book Value (non-GAAP) $3,972 $1,919 Cash and Other Shareholders' Equity (GAAP) $180 $ 585 Less: Intangible assets, net and goodwill - - Cash and Other Tangible Book Value (non-GAAP) $180 $585 3/31/18 8/31/20 Jefferies Financial Group Total Shareholders' Equity (GAAP) $10,259 $9,411 Less: Intangible assets, net and goodwill (2,451) (1,915) Jefferies Financial Group Total Tangible Book Value (non-GAAP) $7,808 $7,496 Note: Tangible book value is a non-GAAP financial measure that begins with information prepared in accordance with U.S. GAAP andis then adjusted to remove intangible assets, net and goodwill. Tangible book value is a common metric used by many investors to evaluate performance from period to period. 75


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 Taxes $479 $ - $479 Income Tax Provision (Benefit) (484) (545) 61 Net Income 963 (545) 418 Noncontrolling Interest and Preferred Stock Dividends (3) - (3) Net Income Attributable to Jefferies Financial Group Inc. Common Shareholders $960 $(545) $415 Nine Months Ended 8/31/19 Jefferies Financial Group Accumulated other Jefferies Financial Group Adjusted (1) Income (GAAP) comprehensive income tax benefit Income (non-GAAP) Income Before Income Taxes $246 $ - $246 Income Tax Provision (Benefit) (523) (545) 22 Net Income 769 (545) 224 Noncontrolling Interest and Preferred Stock Dividends (5) - (5) Net Income Attributable to Jefferies Financial Group Inc. Common Shareholders $ 764 $(545) $219 Note: The tables above reconcile Jefferies Financial Group non-GAAP measures to their respective U.S. GAAP measures. Management believes such non-GAAP measures are useful to investors as they allow them to view our results through the eyes of management, while facilitating a comparison across historical periods. These measures should not be considered a substitute o f r, or superior to, measures prepared in accordance with U.S. GAAP. (1) During the second quarter of 2019, in connection with the closing of our corporate available for sale portfolio, we realized a nonc -ash tax benefit of $545 million. This tax benefit was generated primarily through activity during 2008 to 2010 and since then has remained an unrealized balance within equity until the liquidation of the portfolio. This realization did not impacto t tal equity, as the increase in retained earnings was offset by a corresponding decrease in accumulated other comprehensive income. 76Reconciliation of Jefferies Financial Group Income to Adjusted Income (a non-GAAP measure) ($ 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 Taxes $479 $ - $479 Income Tax Provision (Benefit) (484) (545) 61 Net Income 963 (545) 418 Noncontrolling Interest and Preferred Stock Dividends (3) - (3) Net Income Attributable to Jefferies Financial Group Inc. Common Shareholders $960 $(545) $415 Nine Months Ended 8/31/19 Jefferies Financial Group Accumulated other Jefferies Financial Group Adjusted (1) Income (GAAP) comprehensive income tax benefit Income (non-GAAP) Income Before Income Taxes $246 $ - $246 Income Tax Provision (Benefit) (523) (545) 22 Net Income 769 (545) 224 Noncontrolling Interest and Preferred Stock Dividends (5) - (5) Net Income Attributable to Jefferies Financial Group Inc. Common Shareholders $ 764 $(545) $219 Note: The tables above reconcile Jefferies Financial Group non-GAAP measures to their respective U.S. GAAP measures. Management believes such non-GAAP measures are useful to investors as they allow them to view our results through the eyes of management, while facilitating a comparison across historical periods. These measures should not be considered a substitute o f r, or superior to, measures prepared in accordance with U.S. GAAP. (1) During the second quarter of 2019, in connection with the closing of our corporate available for sale portfolio, we realized a nonc -ash tax benefit of $545 million. This tax benefit was generated primarily through activity during 2008 to 2010 and since then has remained an unrealized balance within equity until the liquidation of the portfolio. This realization did not impacto t tal equity, as the increase in retained earnings was offset by a corresponding decrease in accumulated other comprehensive income. 76


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 (GAAP) Restricted stock units ( RSUs ) 20 20 20 20 20 21 21 22 22 22 23 Other 1 1 1 1 1 1 1 1 1 1 1 Jefferies Financial Group Fully Diluted Shares Outstanding 378 354 352 328 319 312 321 315 300 291 283 (1) (non-GAAP) Note: The table above reconciles Jefferies Financial Group non-GAAP measures to their respective U.S. GAAP measures. Management believes such non-GAAP measures are useful to investors as they allow them to view our results through the eyes of management, while facilitating a comparison across historical periods. These measures should not be considered a substitute o f r, or superior to, measures prepared in accordance with U.S. GAAP. (1) Fully diluted shares outstanding exclude preferred shares as they are antidilutive. Fully diluted shares outstanding include vested RSUs as well as the target number of RSUs issuable under the senior executive compensation plans. 77Reconciliation 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 (GAAP) Restricted stock units ( RSUs ) 20 20 20 20 20 21 21 22 22 22 23 Other 1 1 1 1 1 1 1 1 1 1 1 Jefferies Financial Group Fully Diluted Shares Outstanding 378 354 352 328 319 312 321 315 300 291 283 (1) (non-GAAP) Note: The table above reconciles Jefferies Financial Group non-GAAP measures to their respective U.S. GAAP measures. Management believes such non-GAAP measures are useful to investors as they allow them to view our results through the eyes of management, while facilitating a comparison across historical periods. These measures should not be considered a substitute o f r, or superior to, measures prepared in accordance with U.S. GAAP. (1) Fully diluted shares outstanding exclude preferred shares as they are antidilutive. Fully diluted shares outstanding include vested RSUs as well as the target number of RSUs issuable under the senior executive compensation plans. 77


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 assets, net and goodwill $3,888 $3,823 $3,297 $2,092 $1,919 Merchant Banking Tangible Book Value (non-GAAP) Note: Tangible book value is a non-GAAP financial measure that begins with information prepared in accordance with U.S. GAAP andis then adjusted to remove intangible assets, net and goodwill. Tangible book value is a common metric used by many investors to evaluate performance from period to period. 78Reconciliation of Merchant Banking Shareholders' Equity to Merchant Banking Tangible Book Value (a non-GAAP measure) ($ 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 assets, net and goodwill $3,888 $3,823 $3,297 $2,092 $1,919 Merchant Banking Tangible Book Value (non-GAAP) Note: Tangible book value is a non-GAAP financial measure that begins with information prepared in accordance with U.S. GAAP andis then adjusted to remove intangible assets, net and goodwill. Tangible book value is a common metric used by many investors to evaluate performance from period to period. 78


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 (2,514) (2,463) (1,890) (1,923) (1,915) Jefferies Financial Group Tangible Book Value (non-GAAP) $7,614 $7,643 $8,171 $7,657 $7,496 Note: Tangible book value is a non-GAAP financial measure that begins with information prepared in accordance with U.S. GAAP andis then adjusted to remove intangible assets, net and goodwill. Tangible book value is a common metric used by many investors to evaluate performance from period to period. 79Reconciliation of Jefferies Financial Group Shareholders’ Equity to Tangible Book Value (a non-GAAP measure) ($ 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 (2,514) (2,463) (1,890) (1,923) (1,915) Jefferies Financial Group Tangible Book Value (non-GAAP) $7,614 $7,643 $8,171 $7,657 $7,496 Note: Tangible book value is a non-GAAP financial measure that begins with information prepared in accordance with U.S. GAAP andis then adjusted to remove intangible assets, net and goodwill. Tangible book value is a common metric used by many investors to evaluate performance from period to period. 79


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 and is accounted for under the equity method. The above reconciliation is pro vided for convenience only. Linkem Adjusted EBITDA represents pre-tax loss exclusive of interest expense, depreciation and amortization expenses and other adjustments, which is a common metric used by many investors in its industry to evaluate operating performance from period to period. (1) Other includes primarily asset impairment costs and provision for doubtful accounts. 80Linkem – 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 and is accounted for under the equity method. The above reconciliation is pro vided for convenience only. Linkem Adjusted EBITDA represents pre-tax loss exclusive of interest expense, depreciation and amortization expenses and other adjustments, which is a common metric used by many investors in its industry to evaluate operating performance from period to period. (1) Other includes primarily asset impairment costs and provision for doubtful accounts. 80


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 Adjusted EBITDA (non-GAAP) $21 Note: Vitesse Adjusted EBITDA represents pre-tax loss exclusive of depletion, depreciation, amortization and accretion expenses,interest expense, unrealized losses on commodity derivative instruments and other nonr-ecurring expenses, which is a common metric used by many investors in its industry to evaluate operating performance from period to period. 81Vitesse – Reconciliation of Pre-Tax Loss to Adjusted EBITDA (a non-GAAP measure) ($ 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 Adjusted EBITDA (non-GAAP) $21 Note: Vitesse Adjusted EBITDA represents pre-tax loss exclusive of depletion, depreciation, amortization and accretion expenses,interest expense, unrealized losses on commodity derivative instruments and other nonr-ecurring expenses, which is a common metric used by many investors in its industry to evaluate operating performance from period to period. 81


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 $42.6 Depreciation & Amortization 3.9 2.8 3.4 3.4 4.4 3.2 3.2 Interest income (0.0) (0.1) (0.1) (0.1) (0.1) (0.1) (0.0) EBITDA (non-GAAP) $19.9 $23.0 $32.2 $39.0 $22.2 $16.4 $ 45.8 Note: Idaho Timber EBITDA represents pret-ax income exclusive of depreciation and amortization expenses and interest income, whi ch is a common metric used by many investors in its industry to evaluate operating performance from period to period. 82Idaho 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 $42.6 Depreciation & Amortization 3.9 2.8 3.4 3.4 4.4 3.2 3.2 Interest income (0.0) (0.1) (0.1) (0.1) (0.1) (0.1) (0.0) EBITDA (non-GAAP) $19.9 $23.0 $32.2 $39.0 $22.2 $16.4 $ 45.8 Note: Idaho Timber EBITDA represents pret-ax income exclusive of depreciation and amortization expenses and interest income, whi ch is a common metric used by many investors in its industry to evaluate operating performance from period to period. 82


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) Linkem $214 $416 $630 $ - $630 HomeFed 454 (4) 450 - 450 Other Real Estate Assets 87 20 107 - 107 Vitesse Energy Finance 560 (38) 522 - 522 JETX 16 9 25 - 25 Idaho Timber 85 70 155 - 155 FXCM 130 14 144 - 144 Investments in Public Companies 127 - 127 51 178 Other 266 57 323 - 323 Total Merchant Banking $1,939 $544 $2,483 $51 $2,534 Note: Fair market value and adjusted fair market value are nonG - AAP financial measures that begin with information prepared in accordance with U.S. GAAP and then are adjusted to include fair value adjustments. Management believes that the estimated fair value amounts are common metrics used by many investors in its industry to evaluate performance from period to period. 83Reconciliation of Merchant Banking Book Value to Fair Market Value (a non-GAAP measure) ($ 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) Linkem $214 $416 $630 $ - $630 HomeFed 454 (4) 450 - 450 Other Real Estate Assets 87 20 107 - 107 Vitesse Energy Finance 560 (38) 522 - 522 JETX 16 9 25 - 25 Idaho Timber 85 70 155 - 155 FXCM 130 14 144 - 144 Investments in Public Companies 127 - 127 51 178 Other 266 57 323 - 323 Total Merchant Banking $1,939 $544 $2,483 $51 $2,534 Note: Fair market value and adjusted fair market value are nonG - AAP financial measures that begin with information prepared in accordance with U.S. GAAP and then are adjusted to include fair value adjustments. Management believes that the estimated fair value amounts are common metrics used by many investors in its industry to evaluate performance from period to period. 83

v3.20.2
Document and Entity Information
Oct. 14, 2020
Cover [Abstract]  
Amendment Flag false
Entity Central Index Key 0000096223
Document Type 8-K
Document Period End Date Oct. 14, 2020
Entity Registrant Name Jefferies Financial Group Inc.
Entity Incorporation State Country Code NY
Entity File Number 001-05721
Entity Tax Identification Number 13-2615557
Entity Address, Address Line One 520 Madison Ave.
Entity Address, City or Town New York
Entity Address, State or Province NY
Entity Address, Postal Zip Code 10022
City Area Code 212
Local Phone Number 460-1900
Written Communications false
Soliciting Material false
Pre Commencement Tender Offer false
Pre Commencement Issuer Tender Offer false
Security 12b Title Common Stock, Par Value $1.00 Per Share
Trading Symbol JEF
Security Exchange Name NYSE
Entity Emerging Growth Company false