Leucadia National Corp. (LUK) 2015 Investor Day

Leucadia Today

  • 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

Leucadia National Corporation

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
    Jefferies

    • 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)
      Berkadia
    • 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)
      FXCM
    • 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
      HomeFed
    • 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)
      HRG
    • 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
      Garcadia
    • Enhance performance in existing dealerships
    • Selectively expand dealership network in a robust market environment
      Linkem
    • Increase coverage through LTE network deployment
    • Prepare for launch in major Italian cities
      Conwed
    • 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.