Jefferies Financial : Creditor and Counterparty Overview

Jefferies

Creditor and

Counterparty

Overview

APRIL 2024

© 2024 Jefferies Financial Group Inc.

Notes on Forward Looking Statements

This document contains "forward looking statements" within the meaning of the safe harbor provisions of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934.

Forward looking statements include statements about our future and statements that are not historical facts. These forward looking statements are usually preceded by the words "expect", "intend", "may", "will", or similar expressions. Forward looking statements may contain expectations regarding revenues, earnings, operations, and other results,

and may include statements of future performance, plans, and objectives. Forward looking statements also include statements pertaining to our strategies for future development of our business and products. Forward looking statements represent only our belief regarding future events, many of which by their nature are inherently uncertain.

It is possible that the actual results may differ, possibly materially, from the anticipated results indicated in these forward-looking statements. Information regarding important factors that could cause actual results to differ, perhaps materially, from those in our forward looking statements is contained in reports we file with the Securities and Exchange Commission ("SEC"). You should read and interpret any forward looking statement together with reports we file with the SEC.

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Jefferies At A Glance

A Global, Full-Service

Investment Banking Firm

Client-Focused

Global Footprint

Strong, Stable Foundation

Positioned to Continue to Seize

Market Share

Expertise and depth across advisory, underwriting, equities, fixed income, alternative assets and wealth management

Providing investors and corporate clients with the highest quality advice, execution and service

We operate globally in the Americas, Europe, the Middle East and Asia- Pacific

Robust long-term funding and capital base, comparatively low leverage and free from dependence upon government support

Having broadened our product offering and hired additional key talent continually, Jefferies is positioned to continue to grow

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Earnings and Revenues Update - First Quarter 2024 and Last Twelve Months

First Quarter Ended February 29, 2024	Last Twelve Months Ended February 29, 2024
 Net Revenues: $1,738 million	 Net Revenues: $5,155 million
 Pre-Tax Earnings: $220 million	 Pre-Tax Earnings: $416 million
 Net Earnings: $149 million	 Net Earnings: $278 million
NET REVENUES BY SOURCE	NET REVENUES BY SOURCE
($ Millions)	($ Millions)

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Liquidity and Funding Principles

Jefferies' long-standing liquidity and funding principles have maintained the strength and soundness of our platform across market cycles

• Owning inventory that is composed of liquid assets that turn over regularly, with Level 3 Financial Instruments Owned representing approximately 3% of total Financial Instruments Owned as of 2/29/2024
• Maintaining a sound, long-term funding and capital base and reasonable leverage relative to our business activity
• No material reliance on short-term unsecured funding or customer balances. No commercial paper program
• Short-termsecured funding that is readily and consistently available through clearing houses, or fixed for periods of time that exceed the expected tenure of the inventory they are funding
• Assessing capital reserves and maintaining liquidity to withstand adverse changes in the trading or financing markets and a firm specific idiosyncratic stress
• Where appropriate, entering into joint ventures with complementary long-term partners
  to pursue business opportunities that otherwise may exceed our capital capacity or risk tolerance (e.g., Jefferies Finance)

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Core Operating Principles

Jefferies is focused on the following core principles to manage risk and deliver across-the-cycle revenue and earnings growth:

Strong Liquidity

Limited Leverage

Driving Productivity

Growing Market Share

Culture

• Jefferies maintains a very liquid, financeable and low-risk balance sheet
• Jefferies maintains a consistent, carefully managed leverage ratio, and has demonstrated the operational and financial flexibility to reduce leverage in times of stress
• Jefferies continues to increase investment banker productivity
• Since 2008, Jefferies has grown market share by:
• • Taking advantage of market dislocation and our competitors' ongoing struggles to enter new businesses and regions and expand existing capabilities
  • Delivering broader and better capabilities to our clients
• Jefferies is transparent, not arrogant, client-focused and creditor-friendly

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Strong Capital Structure and Ample Liquidity

• Jefferies maintains a highly liquid balance sheet, with low gross leverage and exposure to illiquid assets, and significant structural liquidity
• Jefferies continues to manage the size of its balance sheet in response to market conditions and volatility
• • Total assets: $60.9 billion
  • Leverage: 6.2x (1)
  • Tangible gross leverage: 7.6x (2)
• Long-termcapital of $17.96 billion

1. Leverage ratio equals total assets divided by total equity.
2. Tangible gross leverage ratio is a non-GAAP financial measure. See Appendix on page 17 for a reconciliation to GAAP measures. Note: All figures are as of February 29, 2024

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Limited Leverage

• Jefferies has a long-standing policy of carefully managing balance sheet leverage
• In periods of stress, Jefferies has demonstrated the ability to rapidly reduce leverage without unduly impacting our business

(1) Tangible gross leverage ratio is a non-GAAP financial measure. See Appendix on page 17 for a reconciliation to GAAP measures.

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Strong Liquidity

Jefferies' trading inventory is liquid and low-risk, rapidly turning in order to serve client flow

Very Liquid Inventory

Reliable Secured Funding

Client-Focused

• 81% of financial instruments owned are readily and consistently financeable at haircuts of 10% or less
• Level 3 financial instruments owned represent only ~3% of long inventory

• On average, approximately 63% of our cash and non-cash repurchase financing activities use collateral that is considered eligible collateral by central clearing corporations
• No material reliance on short- term unsecured funding or customer balances. No commercial paper program

• Fee and flow-based businesses represent preponderance of net revenues

Note: All figures are as of February 29, 2024 or quarter to date average for quarter ended February 29, 2024.

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Level 3 Financial Instruments Owned Overview

• As of February 29, 2024, approximately 97% of inventory is Level 1 and 2, with a minimal amount of Level 3 Financial Instruments Owned
• As of February 29, 2024, Level 3 Financial Instruments Owned represent only 7.6% of tangible shareholders' equity (1)

Level 3 Financial Instruments Owned as a Percentage of total Financial Instruments Owned

Level 3 Financial Instruments Owned as a Percentage of Tangible Shareholders' Equity(1)

1. Tangible shareholders' equity (a non-GAAP financial measure) represents total shareholders' equity less goodwill and identifiable intangible assets. See Appendix on page 17 for a reconciliation to GAAP measures.

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