Jefferies Equity Research Challenge 2015 - sbs.ox.ac.uk · Jefferies / October 2014/ Leading Equity Franchise 750 professionals providing sales, trading and equity research across

Jefferies Equity Research Challenge 2015

October 2014

Jefferies LLC

Member SIPC

Jefferies / October 2014 /

A Global Investment Banking Firm

Full-Service Capital Markets Platform: expertise and depth across equities, fixed income,

commodities and investment banking

Client-Focused: providing investor and issuer clients with the highest quality advice and

execution

Global Footprint: sales & trading and investment banking presence across the Americas,

Europe and Asia

Strong, Stable Foundation: robust long-term capital base, comparatively low leverage and

free from dependence upon government support

Positioned to Seize Market Share: having broadened our product offering and hired

additional key talent during the downturn, Jefferies is positioned for growth

2


A Full-Service Investment Banking Firm

Derivatives

Cash

Equities

Electronic

Trading

Prime

Brokerage /

Securities

Finance

ETFs Convertibles

Wealth

Managemen

t

MBS / ABS /

CMBS

Emerging

Markets

Investment

Grade

Rates /

Repos

Leveraged

Credit

Municipals

Base Metals Listed

Futures

Precious

Metals

Foreign

Exchange

Metals &

Mining Industrials

Healthcar

e Financials

TMT

Real

Estate,

Gaming &

Lodging

Energy Consumer

Equity

Capital

Markets

Leveraged

Finance

M&A

Financial

Sponsors

Equities Fixed Income Jefferies Bache Investment Banking

Public

Finance

Restructu-

ring Research ETFs Research

Research

3


Financial Performance

Source: Jefferies.

(1) Other includes debt extinguishment gains and bargain purchase gains of $13.2 million in Fiscal Year 2012 and $73.6 million in Fiscal Year 2011.

Financial Summary

Predecessor Successor

(Amounts in $ Millions)

11 Months

Fiscal Year

2010

Fiscal Year

2011

Fiscal Year

2012

Fiscal

Q1 2013

Nine Months

Ending,

Q4 2013

Six Months

Ending,

Q2 2014

LTM Ending

Q2 2014

Equities $ 557 $ 594 $ 642 $ 167 $ 582 $ 366 $ 807

Fixed Income 728 743 1,253 352 504 504 779

Sales and Trading 1,285 1,337 1,896 519 1,086 870 1,586

Equity 126 187 194 61 228 178 353

Debt 347 385 456 141 416 320 602

Capital Markets 474 572 650 202 644 498 955

Advisory 417 550 476 86 369 247 526

Investment Banking 890 1,123 1,126 288 1,014 745 1,481

Asset Management and Other 17 118 (1) 40 (1) 11 41 7 37

Net Revenues $ 2,192 $ 2,577 $ 3,062 $ 819 $ 2,141 $ 1,622 $ 3,104

Earnings Before Income Taxes 397 419 492 139 264 281 480

Net Earnings to Common

Shareholders / Jefferies Group LLC 224 285 282 80 161 174 295

4


Full Service Equity Platform

Core US equity sales & trading business pioneered block trading more than 50 years ago

Diverse full-service product offering spanning cash equities, electronic trading, equity derivatives,

convertible bonds, ETFs, prime brokerage, securities finance and equity capital markets

Global full-service equities franchise with research, sales and trading across North America, Europe and

Asia Pacific

Focused on providing best-in-class ideas, execution and service to our clients

Equity Capital

Markets

Capital Markets Equity Finance

US Cash Equities

Sales & Trading

Electronic Trading

Equity Derivatives

Research

Asia Pacific

Research

Global Equities

EMEA

Research

US Research Prime Brokerage

Securities Finance

Asia Pacific

Cash Equities

EMEA

Cash Equities

Convertible Bonds

5


Leading Equity Franchise

750 professionals providing sales, trading and equity research across cash equities, electronic trading, equity

derivatives, prime brokerage and securities finance to over 2,000 institutional clients

Top 10 broker of US equities, equity options and ETFs

─ #2 equity broker – North America (Bloomberg Markets Magazine, April 2011)

─ #8 equity broker – Global (Bloomberg Markets Magazine, April 2011)

─ Top ranked for lowest transaction costs among full-service and bulge-bracket brokers (-25bps per

Elkins/McSherry study in Institutional Investor, Dec. 2012/Jan. 2013 issue)

Ranked #1 among global brokers in broad transaction costs in November 2013 survey

Ranked #1 in trades for giant-cap stocks, beating transaction costs by an average of 14 basis points in November

2013 survey

Expanding capabilities and growing market share across regions and products

Equity execution capabilities across over 44 countries including:

─ Americas: United States, Canada, Brazil, Chile, Colombia, Mexico, Peru

─ Europe, Middle East & Africa: Austria, Belgium, Czech Republic, Denmark, Finland, France, Germany,

Greece, Hungary, Ireland, Israel, Italy, Netherlands, Norway, Poland, Portugal, Romania, Russia, Slovakia,

South Africa, Spain, Sweden, Switzerland, Turkey, United Kingdom

─ Asia Pacific: Australia, Hong Kong, India, Indonesia, Japan, Malaysia, New Zealand, Philippines, Singapore,

South Korea, Thailand, Taiwan

Broad Equity Research platform

─ Over 1,680 stocks covered globally

─ Rapidly expanding Asia Equity Research platform

Adding co-branded research coverage of over 300 companies in Asia, bringing total coverage to ~2,000 companies

– 22 awards received in 2013, including US, Europe and Asia StarMine/FT Equity Research Analyst Survey,

Wall Street Journal’s “Best on the Street” and “Europe Master Stock Pickers” surveys and 4 awards in 2013

AsiaMoney Broker Poll

6


Jefferies Equity Research Platform

Key Points

Over 1,680 companies covered in 9 major

industries

249 research professionals across the US,

Europe and Asia

139 senior research analysts have an average

of 11 years of sell-side research experience

In 2014, research has sponsored:

─ 23 conferences and summits, 45 bus tours,

49 corporate field trips and 411 non-deal

related company roadshows

Research Professionals by Region

United States

132 research professionals

56 senior research analysts

832 companies covered

Europe




Asia




Houston


2 senior analysts

San Francisco


8 senior analysts Nashville


4 senior analysts

New York


44 senior analysts

Tokyo


7 senior analysts

Singapore


4 senior analysts

Mumbai


8 senior analysts

Hong Kong


21 senior analysts

London


33 senior analysts Jefferies Global Investor Conferences

Annual Global Technology, Internet, Media & Telecom Conference

May 6-8, 2014 – Miami

Annual Global Healthcare Conference

June 2-5, 2014 – New York

Annual Global Consumer Conference

June 17-19, 2014 – Nantucket

Annual Global Shipping Conference at Marine Money

June 18-19, 2014 – New York

Annual Global Industrials Conference

August 11-14, 2014 – New York

Annual Global Energy Conference

November 11-12, 2014 – Houston

Annual Global Healthcare Conference

November 19-20, 2014 – London

Senior Research Analysts and Years of Research Experience by Sector

Publishing Analysts

Sector

Total Research

Professionals

Publising

Analysts

Avg. Years of

Experience

Companies

Covered

Business Services 8 5 11 73

Consumer 28 15 11 201

Energy 25 14 11 157

Financial Services 27 16 9 146

Healthcare 40 22 10 285

Industrials / A&D 46 26 12 364

Natural Resources 10 5 11 73

REGAL 15 10 10 129

Technology, Media & Telecom 49 26 11 257

Houston 4 research professionals

2 publishing analysts

Nashville 4 research professionals


San Francisco 20 research professionals

7 publishing analysts New York 104 research professionals


London 57 research professionals


Hong Kong 34 research professionals


3 strategy professionals

Tokyo 11 research professionals


Mumbai 10 research professionals


Singapore 5 research professional


7


Electronic Trading Services

Trading expertise, natural liquidity, advanced

technology and quantitative analytics to

provide superior execution services

Flexibility, allowing for quick customizations at

the lowest level of the algorithm

Advanced smart routing/order placement

New trading platform with lower latency and

higher capacity

Global coverage spanning North America,

Mexico, Brazil, Europe and Asia Pacific

Non-displayed liquidity access – More than 24

Dark Pools

Advanced trading strategies to execute large

lists (Portfolios) or Pairs of stocks

Sophisticated Relative Trading Strategies

Equity Derivatives

Options

─ Top 10 dealer of US equity options to US

institutional asset managers

─ Client focused, capital committing, listed

options platform

─ Sales and trading team distinguishes

offering by emphasizing idea generation and

providing superior trading execution

─ OTC and Corporate Derivative offerings,

including Convertible Bond anti-dilution

hedges

Exchange Traded Funds (ETFs)

─ Powerful asset allocation tool, providing

efficient exposure to broad market and

indices

─ Dedicated trading team making active

markets in all major ETFs

─ Created / redeemed over $5 billion US ETFs

in prior 12 months

Equity Finance

Prime Brokerage

─ Industry leading team of Prime Brokerage

professionals with deep industry

relationships and over 20 year history in

managing the business

─ More than 400 hedge fund clients

─ Top-rated prime broker for hedge funds

below $1 billion AUM in 2013 Global

Custodian Survey

─ Multi broker custodial options: Jefferies LLC,

JP Morgan Clearing Corporation, Goldman

Sachs Execution and Clearing LP

─ Creative and customized solutions across

Capital Introduction, Securities Finance,

Client Service and Technology

Securities Finance

─ Global capabilities to borrow and lend equity

and fixed income instruments and gain

access to hard to borrow securities

Electronic Trading Services, Derivatives and Equity Finance

8


Fixed Income

550 fixed income sales, trading, research and strategy professionals worldwide

Primary Dealer or equivalent in US, UK, Germany, Netherlands, Portugal, Slovenia and Belgium

Substantial fixed income inventory maintained across all products globally including credit, global rates, ABS,

MBS, CMBS, municipal securities and emerging markets

Significant provider of liquidity, execution, underwriting and capital markets expertise in all fixed income sectors

Fixed Income

Emerging

Markets

Capital Markets

Global Sales &

Trading

Municipal

Securities

Public Finance

Sales &

Trading

Capital Markets

Investment

Grade

Capital Markets

US Corporates

Sales &

Trading

International

Sales &

Trading

Leveraged

Finance

Research

US Sales &

Trading

International

Sales &

Trading

Capital Markets

Global

Rates

US Treasuries

US Agencies

European

Government

Bonds

US & Euro

Repo Financing

European

Supras &

Agencies

Covered Bonds

MBS / ABS /

CMBS

Global

CDO/CLO

Global ABS

Global MBS

Global CMBS

Project Finance

Global Capital

Markets

9


Jefferies Futures – At A Glance

Source: JEFFERIES INVESTOR PRESENTATION FOUND

ON ONEJEF UNDER JEFFERIES

Equities

Commodities

Fixed Income

Energy

Agricultural

Softs

Futures

Foreign

Exchange

Options

Forwards

Spot

Exchange for

Physicals

Non-Deliverable

Forwards

Prime Brokerage

Futures and

Options Precious Metals

Platinum

Silver

Gold

Palladium

Base Metals &

Ferrous Markets

Nickel

Copper

Iron Ore

HRC

Molybdenum

Zinc

Billet

Cobalt

Tin

Aluminum

Lead

Secondary

Steel

Rebar Freight

10


Jefferies Global Investment Banking Overview

Key Points

Deep sector expertise with

extensive experience across 9

major industry verticals

639 investment bankers

─ 440 in the Americas

US

Canada

Brazil

─ 155 in Europe

UK

Germany

Russia

Sweden

─ 44 in Asia

China

India

177 Managing Directors, having

investment banking experience

averaging 18 years

1,020 bookrun or advisory banking

transactions executed since

January 1, 2012

─ $525 billion in transaction value

─ 242 Non-US bookrun or

advisory investment banking

transactions

Repeat Clients: 70% of our

transactions and 74% of our

revenue

Financing Business Overview

(Since January 1, 2012)

688 bookrun financings

─ 301 bookrun Equity Offerings

─ 153 bookrun High Yield

Offerings

─ 234 bookrun Leveraged Loans

88% of all financings are bookrun

The highest lead left percentage

of common stock offerings

The highest lead left percentage

of high yield offerings

Among the highest lead left

percentage of leveraged loans

Advisory Business Overview

(Since January 1, 2012)

332 advisory transactions

executed

70% of M&A transactions are

sell-sides

35% of M&A transactions are

cross-border

46 M&A transactions $1+ billion

in deal value

Highest percentage of sole

advised M&A volume of any

major investment bank

Investment Banking Sector and Product Expertise

Sectors

Consumer & Retailing

─ Consumer Products

─ Restaurants

─ Retailing

Financial Institutions

─ Banks

─ Insurance

─ Specialty Finance

Industrials

─ Aerospace & Defense

─ Business Services

─ Capital Goods

─ Chemicals

─ Construction & Building Materials

─ Maritime

─ Metals & Mining

─ Paper & Packaging

─ Power and Utilities

─ Transportation & Logistics

Healthcare

─ Biotechnology

─ Healthcare Services

─ Managed Care

─ Medical Devices

─ Pharmaceuticals

Media & Telecom

─ Wireless & Wireline

─ Internet & Telecom Infrastructure

─ Entertainment, Cable & Broadcast

─ Information Services & Publishing

Energy

─ Oil & Gas Exploration

─ Oil & Gas Midstream

─ Oil Field Services

Technology

─ Software

─ Internet

─ Semiconductors

─ Communications Equipment

─ Technology Services

REGAL

─ Real Estate

─ Gaming

─ Leisure

Financial Sponsors

Products

Equity Capital Markets

─ IPO’s

─ Wall-Cross Follow-ons

─ Block Trades

─ Convertible Debt

Debt Capital Markets

─ High Yield Debt

─ Leveraged Loans

─ Bridge Loan Commitments

─ Investment Grade Debt

─ Preferred Stock

─ Mortgage-Backed Debt

Advisory

─ Mergers & Acquisitions

─ Restructuring & Recapitalization

Foreign Exchange

UK Corporate Broking

11


Jefferies Equity Capital Markets

Key Points

Since 2012, Jefferies has

bookrun 301 transactions

raising $59 billion in proceeds

─ Average bookrun offering

size: $186 million

Significant experience in

every industry vertical and on

every major global exchange

Lead-left bookrunner on more

of its bookrun equity offerings

than any other investment

bank

Industrials TMT Consumer Healthcare Real Estate FIG Energy

Healthcare January 2013

$2,574,000,000

Initial Public Offering

Joint Bookrunner

Consumer September 2013

$1,500,000,000


Joint Bookrunner

Technology October 2013

$625,000,000


Joint Bookrunner

Energy October 2013

$1,808,000,000


Joint Bookrunner

Consumer October 2013

$418,000,000


Joint Bookrunner

Real Estate July 2013

$812,000,000


Joint Bookrunner

Healthcare June 2013

$311,000,000 Common Stock Offering of

Elan Corp, plc

Sole Placement Agent

Finance February 2012

$380,000,000

Common Stock Offering

Joint Bookrunner

Finance September 2012

$306,000,000


Joint Bookrunner


$323,000,000


Joint Bookrunner

Real Estate August 2013

$309,000,000


Joint Bookrunner

Finance October 2013

$334,000,000


Joint Bookrunner

Healthcare March 2012

$399,000,000 Common Stock Offering of

Alkermes, Inc.

Joint Bookrunner

Real Estate October 2013

$296,000,000


Joint Bookrunner

Industrials April 2013

$254,000,000


Joint Bookrunner

Industrials June 2013

$270,000,000


Joint Bookrunner

Consumer August 2012

$233,000,000


Joint Bookrunner

Healthcare April 2014

$338,000,000


Joint Bookrunner

Senior Housing Properties

Trust

Healthcare June 2014

$391,000,000


Joint Bookrunner

Consumer October 2013

$259,000,000


Joint Bookrunner

Energy January 2013

$690,000,000


Joint Bookrunner

Energy March 2012

$1,250,000,000 Private Placement to Investors

Led by GSO Capital Partners


Holding Co. December 2012

$173,000,000


Sole Bookrunner

Energy March 2013

$636,000,000

Common Units Offering

Joint Bookrunner

Consumer November 2013

$178,000,000


Joint Bookrunner

Energy October 2013

$1,700,000,000 Private Placement

Sole Financial Advisor and


Source: Dealogic.

Maritime November 2013

$262,000,000


Joint Bookrunner

Navigator Holdings Ltd.

Real Estate December 2013

$328,000,000


Sole Bookrunner

Energy January 2014

$393,000,000


Joint Bookrunner


$345,000,000

Convertible Notes Offering

Joint Bookrunner

Technology February 2014

$811,000,000


Joint Bookrunner

Technology April 2014

$518,000,000


Joint Bookrunner

Real Estate March 2014

$551,000,000


Joint Bookrunner

Equity Underwriter Roles US Ranking by Lead-Left as % of

All Transactions

January 1, 2012 to Present

Underwriter

Lead-Left as

% of Transactions

Goldman Sachs 45%

Jefferies 42%

Morgan Stanley 42%

Citi 36%

Barclays 34%

BofA-ML 33%

JPMorgan 30%

Credit Suisse 29%

Deutsche Bank 22%

UBS 10%

Consumer April 2014

$425,000,000


Joint Bookrunner

Business May 2014

Services

$1,867,000,000


Joint Bookrunner

Technology May 2014

$2,047,000,000


Joint Bookrunner


$219,000,000


Joint Bookrunner

Technology June 2014

$597,000,000


Joint Bookrunner

Media June 2014

$1,476,000,000


Joint Bookrunner

Finance July 2013

$461,000,000


Joint Bookrunner

Finance December 2013

$2,824,000,000


Joint Bookrunner

China Cinda Asset Management Co., Ltd.

Business June 2014

Services

$702,000,000


Joint Bookrunner

12

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Jefferies Private Placement Capabilities

Key Points

Jefferies has completed over

29 private placements

raising $5 billion since 2012

Jefferies dedicated private

placements team provides

highly tailored solutions to

private and public

companies

Experience executing

complex private equity

transactions across a wide

range of industries and

structures

─ Formation capital,

acquisition financing,

growth capital and special

situations transactions

─ Common stock,

convertible preferred

stock and convertible debt

structures

Deep and longstanding

investor relationships

─ Public cross-over/mutual

funds, hedge funds,

private equity/sponsor

funds, financial institutions

and venture capital

investors

Recent Jefferies Private Placements Transactions

Formation Capital Acquisition Financing Growth Capital / PIPE

Real Estate September 2012

Sole Advisor and Placement Agent

$1,000,000,000 Formation and Capital Raise from

investors including Affiliates of

Blackstone Real Estate

Energy October 2013

Sole Financial Advisor and


$1,700,000,000 Private Placement of Equity and

Debt to an investor consortium led

by The Energy & Minerals Group

and GSO Capital Partners LP

Finance July 2012

Convertible Preferred Stock


$84,000,000

Holding Company August 2011

$400,000,000 Private Placement to

Fortress, Providence, Wilton Re,

JHL, Soros, DDJ and Luxor

Capital


Healthcare October 2013

$64,000,000


Lead Placement Agent

Energy January 2014

$200,000,000

Private Placement of Equity

Sole Financial Advisor

Business May 2011

Services


Apax Partners


Maritime May 2011

General Maritime Corporation


Oaktree Partners


Energy November 2011

A Wholly Owned Subsidiary Of


EIG Global Energy Partners

Lead Placement Agent

13

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Jefferies Equity-Linked Capital Markets Capabilities

Key Points

Jefferies has completed 24

bookrun convertible

offerings since 2012 raising

$4 billion

Jefferies Equity-Linked

structuring and distribution

capabilities allow issuers to

achieve the best terms

─ The Jefferies Equity-

Linked team has

executed over 100

bookrun transactions

Jefferies has been the lead-

left bookrunner on a greater

percentage of convertible

offerings than any of our

competitors

Sources: Jefferies Equity-Linked Capital Markets, Bloomberg.

(1) Bookrun Convertible Offerings since 2011, total deal size greater than $75mm.

Recent Jefferies Equity-Linked Transactions

Pricing versus Coupon Range(1)

Pricing versus Premium Range(1)

Percent of Offerings Upsized(1)

Superior Execution Track Record

Convertible Lead Left Execution(1)

US Ranking by Lead-Left as % of

Bookrun Transactions


Bookrunner

Lead-Left as

% of Bookrun

Jefferies 65%

Goldman Sachs 56%

Morgan Stanley 51%

JPMorgan 45%

Barclays 44%

Bank of America 42%

Credit Suisse 41%

Citi 37%

UBS 28%

Deutsche Bank 27%

Source: Dealogic.

74% 74% 72% 69% 69% 69% 68% 65% 63% 63% 61%

% M

idpoin

t or

Better

83% 74% 73% 72% 72% 71% 69% 69% 67% 67% 61%

% M

idpoin

t or

Better

70% 56% 52% 53% 48% 51% 52% 51% 46% 44% 45% %

Upsiz

ed

Technology August 2013

$150,000,000 Convertible Notes Offering

Joint Bookrunner

Call Spread Counterparty


$138,000,000


Joint Bookrunner

Real Estate June 2013

$131,000,000


Joint Bookrunner

Technology March 2013

$201,000,000


Joint Bookrunner


$175,000,000



Consumer March 2014

$259,000,000


Sole Bookrunner


$288,000,000


Joint Bookrunner

Industrials September 2013

$120,000,000 Convertible Notes Offering

Sole Bookrunner

Industrials November 2013

$125,000,000


Sole Bookrunner

Healthcare December 2013

$120,000,000


Joint Bookrunner


$345,000,000


Joint Bookrunner

Energy February 2014

$750,000,000


Joint Bookrunner

14

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Jefferies Bookrun or Lead Arranged Leveraged Finance Transactions Since 2012, Jefferies has completed 387 bookrun leveraged finance transactions, including 153 bookrun high yield bond offerings and 234

lead arranged loans

Energy May 2012

$4,000,000,000

Credit Facilities

Joint Lead Arranger

Consumer September 2012

$1,535,000,000

Credit Facility to Finance

Acquisition by

Advent International

Joint Lead Arranger

Energy October 2012

$500,000,000

Senior Secured Notes Offering

Joint Bookrunner

Holding Company December 2012

$700,000,000


Joint Bookrunner

Industrials January 2013

$3,232,000,000 Credit Facility to Finance Acquisition

by The Carlyle Group Joint Lead Arranger

$1,625,000,000 Senior Unsecured Notes Offering

Joint Bookrunner

Industrials September 2012

$900,000,000


Joint Bookrunner

Energy October 2012

$1,150,000,000


Joint Bookrunner

Industrials November 2012

$1,370,000,000

Credit Facility

Joint Lead Arranger

Consumer February 2013

$1,025,000,000

Credit Facility

Joint Lead Arranger

Energy October 2012

$540,000,000


Joint Bookrunner

Telecom April 2013

$1,425,000,000


Merger led by

Berkshire Partners LLC

Joint Lead Arranger

Telecom May 2013

$2,600,000,000

Senior Unsecured Notes Offering

Joint Bookrunner

Leisure June 2013

$1,056,000,000 Credit Facility

Joint Lead Arranger

$679,000,000 Senior Unsecured Notes Offering

Joint Bookrunner

Source: Thomson Reuters.

High Yield Underwriter Roles US Ranking by Lead-Left as % of Bookrun


Underwriter Lead-Left as % of Bookrun

Jefferies 51%

Bank of America 42%

JPMorgan 35%

Credit Suisse 34%

Goldman Sachs 31%

Citi 30%

Deutsche Bank 25%

Morgan Stanley 23%

Barclays 23%

UBS 5%

Leveraged Loan Roles US Ranking by Lead-Left as % of Bookrun


Underwriter Lead-Left as % of Bookrun

JPMorgan 61%

Bank of America 57%

Credit Suisse 49%

Jefferies 45%

Citi 32%

Deutsche Bank 30%

Barclays 29%

Goldman Sachs 22%

UBS 21%

Morgan Stanley 18%

Healthcare September 2013

$950,000,000


Acquisition by

Kohlberg Kravis Roberts & Co.

LP

Joint Lead Arranger

Technology September 2013

$4,224,000,000 Credit Facilities

Joint Lead Arranger

$1,625,000,000 Senior Unsecured Notes Offering

Joint Bookrunner

Gaming November 2013

$955,000,000

Credit Facilities

Joint Lead Arranger

Consumer November 2013

$2,100,000,000

Credit Facility

Joint Bookrunner

Healthcare November 2013

$1,345,000,000


Acquisition by

Apax Partners

Joint Lead Arranger


$1,350,000,000 Credit Facility to Finance

Acquisition of Santarus, Inc. Joint Lead Arranger

$750,000,000 Senior Unsecured Notes Offerings

Sole Bookrunner

Holding Company January 2014

$3,650,000,000 Senior Unsecured Notes Offerings

Joint Bookrunner

$1,350,000,000 Senior Unsecured Notes Offerings

Sole Bookrunner

Healthcare March 2014

$1,525,000,000 Credit Facility to Finance

Merger with DCM Pharmaceutical Joint Lead Arranger

$450,000,000 Senior Unsecured Notes Offerings

Joint Bookrunner

Metals & Mining May 2014

$850,000,000


Joint Bookrunner

Healthcare May 2014

$1,943,000,000

Credit Facilities

Joint Lead Arranger

Source: Thomson Reuters.

Industrials TMT Consumer Healthcare FIG & Real Estate Energy

Consumer April 2014

$745,000,000


Acquisition by

Sycamore Partners

Joint Lead Arranger

Consumer June 2013

$725,000,000


Acquisition of

BSN Sports

Joint Lead Arranger

Energy February 2012

$2,250,000,000


Joint Bookrunner

Finance June 2014

$800,000,000


Joint Bookrunner


$940,000,000

Credit Facilities

Joint Lead Arranger

Technology January 2014

$1,145,000,000


Acquisition by

Hellman & Friedman

Joint Lead Arranger

Media March 2013

$1,200,000,000 Credit Facility to Finance Acquisition

by Apollo Global Management

Joint Lead Arranger

$800,000,000 Senior Secured Notes Offering

Joint Bookrunner

15

http://pilot.dfcglobalcorp.com/


Energy

Jefferies M&A Capabilities

Industrials Healthcare TMT FIG & Real Estate

Energy December 2012

$17,200,000,000 Sale to

Freeport-McMoRan Copper & Gold Inc.

Joint Financial Advisor

Healthcare May 2012

$1,525,000,000 Acquisition of

Fougera Pharmaceuticals


Industrials August 2012


Dupont Performance Coatings

Lead Financial Advisor

Media November 2012


McGraw-Hill Education




Kloeckner Pentaplast GmbH & Co. KG


Metals/ December 2012

Mining


Inmet Mining Corporation


Finance December 2012

$1,368,000,000 Merger with

Knight Capital Group


Energy January 2013

$5,000,000,000 Sale to

Kinder Morgan Energy

Partners, L.P. Joint Financial Advisor

Healthcare February 2013

$1,750,000,000 Sale of Agila Specialties to

Mylan Inc.


Energy May 2013

$7,300,000,000 Merger with

Crestwood Midstream Partners LP

Co-Financial Advisor

Media June 2013


Springer Science + Business Media


Finance July 2013

$2,330,000,000 Merger with

CapitalSource Inc.

Lead Financial Advisor



Santarus, Inc.



$6,000,000,000 Sale of Eagle Ford Shale Assets to

Devon Energy Corp.



$2,600,000,000 Merger of

Patheon, Inc. and

DSM Pharmaceutical Products


Telecom November 2013

$2,700,000,000 Sale of 70% Stake in Scout24 to

Hellman & Friedman


Finance April 2014


DFC Global Corporation


Metals/ January 2012

Mining

$1,250,000,000 Sale of assets in the Democratic Republic

of Congo to

Eurasian Natural Resources Corp.


Healthcare February 2013

$2,070,000,000 Sale to

Cardinal Health, Inc.


Business April 2013

Services


CompuCom Systems


Technology June 2012

$1,000,000,000 Sale to Consortium led by

Apax Partners and

JMI Equity Sole Financial Advisor



Deltek, Inc.


Real Estate February 2014

$1,125,000,000 Acquisition of two Medical Office

buildings in Boston from

Vertex Pharmaceuticals


Finance March 2014

$1,800,000,000 Joint Venture between

American Express Global Business Travel and a

Certares-led Investor Group


Key Points

56 investment bankers specialized

in mergers and acquisitions

worldwide

─ 36 M&A specialists in the US

─ 20 M&A specialists in Europe

Since January 1, 2012, Jefferies has

completed 46 M&A transactions

each valued in excess of $1 billion

Announced more than 225 sell-side

transactions since 2012,

representing over $140 billion

aggregate transaction value

Sell-side M&A comprises a higher

percentage of our revenue than any

other global banking firm

Sell-Side as a % of Total M&A

Revenue January 1, 2012 to Present

44%

46%

53%

53%

54%

54%

55%

59%

60%

60%

62%

64%

67%

72%

77%

Nomura

RBS

BAML

Barclays

Citi

Deutsche

UBS

MS

Rothschild

RBC

JPMorgan

CS

Lazard

Goldman

Jefferies

Energy June 2014

$2,500,000,000 Sale of Permian Basin Assets to

American Energy – Permian Basin


16


Jefferies Restructuring Capabilities

Key Points

20 investment

bankers specialized

in recapitalizations

and restructurings

worldwide, of which

8 are MDs and SVPs

Over 24 restructuring

transactions with

aggregate value of

over $80 billion

announced or

completed since the

beginning of 2012

Jefferies is one of

the only major

restructuring firms to

provide both capital

markets and

advisory services to

its clients

Jefferies is a leader

in executing out of

court transactions

with a unique ability

to recapitalize

balance sheets

outside of Chapter

11

Service Capabilities of the Top Restructuring Advisors

Active

Restructuring

03/31/2014 Financial Advisory Capital Raising Capital Markets

Bank Rank

Assets

($bn) Restructuring M&A

Public and

Private Equity

Public and

Private Debt

Bank

Debt Equity Trading

High Yield and

Bank Debt Trading

Blackstone 1 705.0

Miller Buckfire 2 626.0

Houlihan Lokey 3 59.5

Jefferies 4 45.2

Moelis 5 37.8

Lazard 6 32.8

Solic Capital 7 30.3

Duff & Phelps 8 26.0

UBS 9 22.6

Mesirow Financial 10 19.7

Centerview Partners 11 15.3

GLC Advisors 12 13.1

Source: The Daily Deal.

Telecom March 2012

$1,500,000,000 Restructuring

Advisor to the Company

Industrials December 2013


Advisor to the Association of

Professional Flight Attendants

Technology September 2013


Advisor to the Official Committee

of Unsecured Creditors

Telecom May 2012


Advisor to the Examiner

Energy June 2012


Advisor to the Trust

Deepwater Horizon

Oil Spill Trust




Consumer January 2012



Lodging February 2013




MSR Resort

Golf Course LLC

Maritime February 2014

$994,000,000 Restructuring



Consumer April 2012



Healthcare September 2013



Technology Pending




17


Jefferies Wealth / Asset Management

Wealth Management

Jefferies provides wealth management and related services to executives, families and high net-worth

individuals

– Focused on the ultra high net worth segment of the market

– Full service, open architecture platform

– Highly experienced group of advisors (average experience in excess of 20 years)

– Over $7 billion of private assets in custody (1)

Asset Management

Asset Management offers a variety of products for institutional and high net-worth clients

– Hedge Funds – systematic, multi-strategy, multi-asset-class investment programs utilizing a diverse set of

systematic alpha strategies applied to equity securities and global futures instruments

– Global Convertible Bonds – investing in global convertible bonds for both institutional and private

investors

(1) Assets include agreed upon notional values for managed accounts, non-fee paying accounts of affiliates and do not include subscriptions or redemptions made in the following period.

18


Jefferies Wealth Management Platform

Key Points

Focused on the highest tier of wealthy

individuals

50 wealth managers with average wealth

management experience of 20 years

Wealth managers relationships with clients

average over 12 years

Over $7 billion of private client assets under

administration, none of which represent

hedge funds or institutional assets

Average wealth of core clients: $50 million

Capable of placing up to $50 million on each

equity and debt capital markets transaction

Wealth Managers by Region

London

16 years

average

experience

Wealth Management Services

Corporate Services

Corporate cash management

Directed share programs

Coordination of stock option, buybacks and restricted stock sales

Hedging and Monetization

Tax advantaged hedging strategies

Block trading/10b5-1 Selling Plans

Lending capabilities

Portfolio Management

Holistic asset allocation analysis

JEF Asset Management strategies

3rd Party Separate Managed Accounts

Private Equity

Municipal Bond Underwriting

Trust and Estate Planning

Coordination of Estate

Wealth transfer planning

Third Party Trust Administration

Custody

Consolidated reporting

Traditional brokerage

Check writing and wire transfer capabilities

Dallas

18 years average experience

Boston

30 years

average

experience

Atlanta

21 years average

experience

San Francisco

13 years average

experience

Los Angeles

10 years average

experience

New York

22 years

average

experience

Chicago

18 years average

experience

Dubai

17 years

average

experience

19


Jefferies Equity Research Challenge

20


Jefferies Equity Research Challenge

You are invited to take part in the Jefferies Research Challenge,

an exclusive initiative being launched today

Benefits to you:

Gives you first-hand experience working with a research analyst doing fundamental equity research

Can improve your CV and skillset required to be a successful equity analyst or asset manager

Will test your presentation, writing, modelling and valuation skills

Will give you the opportunity to broaden your industry network

The top three students will have the opportunity to present their investment case to a panel in

London with a dinner afterwards

You have the chance to win a 10-week paid internship at Jefferies in London in summer 2015 at a

competitive rate, subject to the necessary pre-employment process Jefferies is required to follow

21


What You Can Expect From Us

Although you will be working independently, you will be able to access the Jefferies analyst who is

responsible for your allocated company by email and phone to get direction on what we are looking

for and analytics that will aid your assessment

You can expect to receive any relevant supporting documentation and industry materials as

relevant, which you would not be reasonably expected to be able to source yourself

Copies of sample equity research reports in your respective industry to provide information of

valuation, peers, the industry

22


What We Expect From You

We expect you to work independently and not use other equity research reports

We expect a fully interactive financial model with:

Historical and forecast P&L / cash flow (including sensitivities)

Forecast balance sheet

Valuation model with comparables, DCF and sensitivities

The main deliverable is an equity research report in PowerPoint form

You must be able to provide all backup materials and files if needed.

Extra credit will be given for attention to detail – this is key.

Presentation Top Tips

Keep the main presentation to 5 slides and 5 minutes MAXIMUM delivery

5 min Q&A will take each presentation to 10 minutes.

Have a structured and ordered Appendix with supplementary information on the company including:

23

Executive summary

Market overview (e.g., growth drivers, competitive

dynamics, key players and value chain)

Business overview (e.g., divisions, products,

competitive positioning)

Historical financial analysis

Forecast financials (including key assumptions)

Capital structure

Assessment of company strategy

Valuation (e.g., comparables, DCF, ROIC, etc.)

Price Target and Recommendation (Buy, Hold, Underperform), based on the Jefferies ratings structure.

Key risks to the equity story

Sources or estimates next to relevant charts

Key areas of future diligence required (what areas would you propose are researched further?)


Process, Submission, Materials and Time-Line

Apply on-line with a CV and maximum one page cover-letter (through Andreas Angelopoulos).

If successful you will be allocated a public-listed company from one of the industries covered by our

analysts.

The relevant industry expert at Jefferies (mentor) will be assigned to you.

You will receive a broad outline of the company chosen and your objectives, and will plan regular

progress calls to discuss any industry questions and the project.

All individuals will then receive a disclaimer to use in the presentation in due course.

Submit your final presentation and model by 23 February 2015 to Andreas Angelopoulos.

Closing date for registration: 29 October 2014

24


Any Questions?

? 25


This document is being furnished for informational purposes only and does not constitute an offer to sell or the solicitation of an offer to

purchase any security, future or other financial instrument or product. It is not intended to form the basis of an investment decision and has

not been verified. Jefferies International Limited (“Jefferies”) makes no recommendation or representation as to, and accepts no responsibility

or liability for, the accuracy or completeness of the information contained herein or any other information, whether written or oral, made

available and any liability therefore is expressly disclaimed. Such information is presented as of the date and, if applicable, time indicated and

Jefferies does not accept any responsibility for updating any such information.

Any simulations, projections, valuations and statistical analyses contained herein have been provided to assist the recipient in the evaluation

of the matters described herein; such simulations, projections, valuations and analyses may be based on subjective assessments and

assumptions and may utilise one among alternative methodologies that produce differing results; accordingly, such simulations, projections,

valuations and statistical analyses are not to be viewed as facts and should not be relied upon as an accurate representation of future events.

No representation or warranty is given as to any of the simulations or analyses, or as to the achievement or reasonableness of any future

projections or estimates, contained in this document.

Jefferies and its affiliates, officers, directors, employees and agents may from time to time hold long or short positions in, buy or sell (on a

principal basis or otherwise), or act as market maker in any securities, futures or other financial instruments or products related to matters

discussed herein and may make trading decisions that are different from or contrary to any of those which may be discussed. Jefferies is not

an adviser as to legal, taxation, accounting or regulatory matters in any jurisdiction, and is not providing any advice as to any such matter to

the recipient. Recipients of this document should take their own independent advice with respect to such matters.

In the UK, this document is intended for use only by persons who have professional experience in matters relating to investments falling

within Articles 19(5) and 49(2)(a) to (d) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (as amended), or

by persons to whom it can be otherwise lawfully distributed. Recipients of this document in jurisdictions outside the United Kingdom should

inform themselves about and observe any applicable legal requirements in relation to the receipt of this document.

Jefferies International Limited is authorised and regulated in the United Kingdom by the Financial Conduct Authority. Its registered office is at

Vintners Place, 68 Upper Thames Street, London EC4V 3BJ; telephone +44 20 7029 8000; facsimile +44 20 7029 8010.

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