Leucadia National Corp. (LUK) 2015 Investor Day [Slides]

Leucadia National Corp. (LUK) 2015 Investor Day [Slides]

Leucadia National Corp. (LUK) 2015 Investor Day

Leucadia Today

Play Quizzes 4
  • Goal is long-term value creation
  • Senior management is aligned with shareholders – 11.2%(1) ownership for top three officers
  • 14 of our 16 businesses are operating well and have strong value creation potential
    ?Jefferies Investment Banking and Equities are performing well, growing and creating value; we are addressing the challenges in Fixed Income; Bache exit is accretive
    ?We expect National Beef to recover on the back of a steady increase in the cattle herd
  • Leveraging the Jefferies platform to source unique investment opportunities is working well (LAM, FXCM, HRG)

Leucadia – Operating Profile in 2015 vs. 2012

Fund Manager Profile: Zhang Hui Of China’s Southern Asset Management

investHistorically, the Chinese market has been relatively isolated from international investors, but much is changing there now, making China virtually impossible for the diversified investor to ignore. Earlier this year, CNBC pointed to signs that Chinese regulators may start easing up on their scrutiny of companies after months of clamping down on tech firms. That Read More

Leucadia Overview

Leucadia National Corporation

Leucadia’s Potential

Leucadia National Corporation

Footnotes: Leucadia’s Potential

  1. Leucadia Tangible Capital is a non-GAAP financial measure excluding goodwill and intangibles from Book Value. See appendix on pages 174 for reconciliation to GAAP measures.
  2. Our share of Garcadia pre-tax income, excluding our interest in Garcadia land, is a non-GAAP measure, however, there are no income taxes at the Garcadia level; therefore our share of their net income equals our share of their pre-tax income.
  3. Common Book Value per Share (fully-diluted) and Common Tangible Book Value per Share (fully-diluted) are non-GAAP financial measures widely used by investors in assessing investment and financial services firms. See Appendix on page 173 for a reconciliation to c.

A Unique Financial Services and Merchant Banking Platform

  • Financial Services – Our historic sector; post-crisis opportunity
    • Drive market share, margin expansion and earnings growth by growing Investment Banking and Equities and refocusing in Fixed Income
    • Jefferies Finance and Jefferies LoanCore – Execute on the opportunity and momentum of our corporate and commercial real estate lending platforms
    • KCG Holdings – Significant interest in a leading global electronic market maker (>100% of cost recovered)(1)
    • Become the best full-service mortgage banking firm in the industry
    • Build out geographic coverage, products and capabilities to drive profitability and cash flow
      Leucadia Asset Management
    • Leverage Leucadia’s brand, Jefferies’ relationships and Leucadia capital to own significant general partnership stakes in differentiated alternative asset management strategies (business model inherently avoids goodwill and acquisition costs)
    • Opportunistic and well-structured investment, with significant near and long-term value creation potential
    • Counter-cyclical performance relative to Jefferies’ core business
    • Leucadia’s results may continue to be volatile for several more quarters as we fair value the FXCM investment quarterly
    • Following recent $150 million Otay Ranch acquisition, begin to harvest ripening projects and assets
      Foursight and Chrome
    • Drive market share and originations, while maintaining a disciplined approach to credit quality
  • Merchant Banking – Opportunistic value investments in businesses we understand
    National Beef
    • Manage business through the cattle cycle
    • Maintain core market share and enhance profitability through efficiency and growth of value-added segments (tannery, consumer ready, Kansas City Steaks)
    • Drive value through simplification and strategic focus, as well as growth of Spectrum Brands
      Vitesse and Juneau
    • Drive cash flow on existing investments
    • Opportunities for new investments following oil price collapse
    • Enhance performance in existing dealerships
    • Selectively expand dealership network in a robust market environment
    • Increase coverage through LTE network deployment
    • Prepare for launch in major Italian cities
    • Drive organic growth with new applications and market expansion
      Idaho Timber
    • Drive volume and production efficiency
      Golden Queen
    • Deliver working mine on time and on budget

See full slides below.

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