Jefferies Financial : Merchant Banking Fair Value Perspective

Merchant Banking Net Asset Value Overview

As of May 31, 2020 ($ Millions)

(Unaudited) Book ValueBasis for Fair Value Estimate

Linkem

$

• 214 $

• 630 Income approach and market comparable method

  Real estate assets(1)

  541

• 557 Various

  Oil and Gas (Vitesse and JETX) Idaho Timber

  576

• 547 Income approach, market comparable and market transaction method

  85

• 155 Income approach, market comparable and market transaction method

  FXCM

  130

• 144 Income approach and market comparable method

  Investments in Public Companies Other

  127

• 127 Mark-to-market (same for GAAP book value)

  266

• 323 Various

Total Portfolio

$

1,939

$

2,483

• (1) Primarily HomeFed

  Estimated Fair Value(2)

• (2) The following table reconciles financial results reported in accordance with U.S. GAAP to non‐GAAP financial results. The table above contains non‐GAAP financial information to aid investors in viewing our businesses and investments through the eyes of management while facilitating a comparison across historical periods. However, these non‐GAAP financial measures should be viewed in addition to, and not as a substitute for, reported results prepared in accordance with U.S. GAAP.

Reconciliation of Book Value of Merchant Banking Investments to Estimated Fair Value ($ Millions)

(Unaudited) Book Value May 31, 2020 Fair Value AdjustmentsEstimated Fair Value May 31, 2020

(GAAP) (Non-GAAP)Linkem $ 214 $ 416 $ 630 Real estate assets 541 16 557 Oil and Gas (Vitesse and JETX) Idaho Timber 576 (29) 547 85 70 155 FXCM 130 14 144 Investments in Public Companies Other 127 - 127 266 57 323 Total Portfolio $ 1,939 $ 544 $ 2,483

Jefferies Financial Group