LUK Leucadia National Corp.

Jefferies Group LLC today announced financial results for its fiscal second quarter 2015.

Highlights for the three months ended May 31, 2015, with adjusted amounts excluding the operating results of our Bache business:

• Investment banking net revenues of $404 million
• Total Net revenues of $792 million
• Total Adjusted Net revenues (excluding Bache net revenues) of $757 million
• Adjusted Net earnings (excluding Bache net loss) of $86 million
• Net earnings of $60 million (including Bache exit costs of $20 million on an after-tax basis)

Highlights for the six months ended May 31, 2015, with adjusted amounts excluding the operating results of our Bache business:

• Investment banking net revenues of $676 million
• Total Net revenues of $1,383 million
• Total Adjusted Net revenues (excluding Bache net revenues) of $1,299 million
• Adjusted Net earnings (excluding Bache net loss) of $106 million
• Net earnings of $73 million (including Bache exit costs of $20 million on an after-tax basis)

Richard B. Handler, Chairman and Chief Executive Officer, and Brian P. Friedman, Chairman of the Executive Committee, commented: “We are pleased to report quarterly revenues above those of the first quarter and the same period last year. Investment banking net revenues were in excess of $400 million, an increase of 49% compared to this year’s first quarter and 22% versus the second quarter last year. Our momentum has continued in investment banking and our current backlog for the third quarter is comparable to the backlog of three months ago. Our equity net revenues were strong versus the first quarter and the same quarter last year. Excluding Bache, Fixed income net revenues increased by 56% versus the slow first quarter, but declined by 29% compared to the year ago quarter. Fixed income results improved each month during the quarter. We continue to unwind the Bache business and to date have transferred about 50% of client accounts to Societe Generale and other brokers. We expect to have substantially completed the unwind of Bache by the end of the summer.”

The attached financial tables should be read in connection with our Quarterly Report on Form 10-Q for the quarter ended February 28, 2015 and our Annual Report on Form 10-K for the year ended November 30, 2014. Adjusted financial measures referenced above are non-GAAP financial measures, which management believes provide meaningful information to enable investors to evaluate the Company's results in the context of exiting the Bache business. Refer to the Supplemental Schedules on pages 5-7 for a reconciliation of Adjusted measures to the respective direct U.S. GAAP financial measures.

Jefferies, the global investment banking firm focused on serving clients for over 50 years, is a leader in providing insight, expertise and execution to investors, companies and governments. The firm provides a full range of investment banking, sales, trading, research and strategy across the spectrum of equities, fixed income and foreign exchange, as well as wealth management, in the Americas, Europe and Asia. Jefferies Group LLC is a wholly-owned subsidiary of Leucadia National Corporation (NYSE: LUK), a diversified holding company.

  JEFFERIES GROUP LLC AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF EARNINGS (Amounts in Thousands) (Unaudited)       Quarter Ended May 31, 2015   February 28, 2015   May 31, 2014   Revenues: Commissions $ 173,508 $ 166,922 $ 167,378 Principal transactions 155,962 105,477 183,416 Investment banking 404,262 271,995 331,149 Asset management fees and investmentincome (loss) from managed funds 5,650 (9,837 ) (3,101 ) Interest income 240,552 228,870 283,540 Other revenues   28,576     19,905     8,404   Total revenues 1,008,510 783,332 970,786 Interest expense   216,956     191,660     247,794   Net revenues   791,554     591,672     722,992     Non-interest expenses: Compensation and benefits 480,770 365,215 404,876   Non-compensation expenses: Floor brokerage and clearing fees 58,713 55,080 54,020 Technology and communications 72,361 72,387 70,257 Occupancy and equipment rental 24,420 24,184 26,673 Business development 26,401 21,937 24,917 Professional services 27,419 24,256 25,345 Other   16,758     15,729     17,767   Total non-compensation expenses   226,072     213,573     218,979   Total non-interest expenses   706,842     578,788     623,855   Earnings before income taxes 84,712 12,884 99,137 Income tax expense   24,530     331     37,323   Net earnings 60,182 12,553 61,814 Net earnings attributable to noncontrolling interests   349     871     488   Net earnings attributable to Jefferies Group LLC $ 59,833   $ 11,682   $ 61,326     Pretax operating margin 10.7 % 2.2 % 13.7 % Effective tax rate 29.0 % 2.6 % 37.6 %     JEFFERIES GROUP LLC AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF EARNINGS (Amounts in Thousands) (Unaudited)       Six Months Ended May 31, 2015   May 31, 2014   Revenues: Commissions $ 340,430 $ 329,441 Principal transactions 261,439 421,779 Investment banking 676,257 745,469 Asset management fees and investmentincome (loss) from managed funds (4,187 ) 6,856 Interest income 469,422 532,808 Other revenues   48,481     31,473   Total revenues 1,791,842 2,067,826 Interest expense   408,616     445,806   Net revenues   1,383,226     1,622,020     Non-interest expenses: Compensation and benefits 845,985 912,775   Non-compensation expenses: Floor brokerage and clearing fees 113,793 103,533 Technology and communications 144,748 134,563 Occupancy and equipment rental 48,604 53,175 Business development 48,338 51,393 Professional services 51,675 50,164 Other   32,487     35,011   Total non-compensation expenses   439,645     427,839   Total non-interest expenses   1,285,630     1,340,614   Earnings before income taxes 97,596 281,406 Income tax expense   24,861     104,200   Net earnings 72,735 177,206 Net earnings attributable to noncontrolling interests   1,220     3,448   Net earnings attributable to Jefferies Group LLC $ 71,515   $ 173,758     Pretax operating margin 7.1 % 17.3 % Effective tax rate 25.5 % 37.0 %     JEFFERIES GROUP LLC AND SUBSIDIARIES CONSOLIDATED ADJUSTED SELECTED FINANCIAL DATA (Amounts in Thousands) (Unaudited)           Quarter Ended May 31, 2015 GAAP Adjustments Adjusted   Net revenues $ 791,554 $ 34,589 (1) $ 756,965 Non-interest expenses: Compensation and benefits 480,770 34,473 (2) 446,297 Non-compensation expenses   226,072     38,536   (3)   187,536   Total non-interest expenses   706,842     73,009   (4)   633,833     Operating income (loss) $ 84,712   $ (38,420 ) $ 123,132   Net earnings (loss) $ 60,182   $ (25,940 ) $ 86,122     Compensation ratio (a) 60.7 % 59.0 %   Quarter Ended February 28, 2015 GAAP Adjustments Adjusted   Net revenues $ 591,672 $ 49,933 (1) $ 541,739 Non-interest expenses: Compensation and benefits 365,215 23,980 (2) 341,235 Non-compensation expenses   213,573     38,597   (3)   174,976   Total non-interest expenses   578,788     62,577     516,211     Operating income (loss) $ 12,884   $ (12,644 ) $ 25,528   Net earnings (loss) $ 12,553   $ (6,961 ) $ 19,514     Compensation ratio (a) 61.7 % 63.0 %   Quarter Ended May 31, 2014 GAAP Adjustments Adjusted   Net revenues $ 722,992 $ 50,734 (1) $ 672,258   Non-interest expenses: Compensation and benefits 404,876 29,756 (2) 375,120 Non-compensation expenses   218,979   36,573   (3)   182,406   Total non-interest expenses   623,855   66,329     557,526     Operating income (loss) $ 99,137   $ (15,595 ) $ 114,732   Net earnings (loss) $ 61,814   $ (8,341 ) $ 70,155     Compensation ratio (a) 56.0 % 55.8 %   (a) Reconciliation of the compensation ratio for U.S. GAAP to Adjusted is a derivation of the reconciliation of the components above.   This presentation of Adjusted financial information is an unaudited non-GAAP financial measure. Adjusted financial information begins with information prepared in accordance with U.S. GAAP and then those results are adjusted to exclude the operations of the Company's Bache business. The Company believes that the disclosed Adjusted measures and any adjustments thereto, when presented in conjunction with comparable U.S. GAAP measures are useful to investors as they enable investors to evaluate the Company's results in the context of exiting the Bache business. These measures should not be considered a substitute for, or superior to, measures of financial performance prepared in accordance with U.S. GAAP.     JEFFERIES GROUP LLC AND SUBSIDIARIES CONSOLIDATED ADJUSTED SELECTED FINANCIAL DATA (Amounts in Thousands) (Unaudited)           Six Months Ended May 31, 2015 GAAP Adjustments Adjusted   Net revenues $ 1,383,226 $ 84,522 (1) $ 1,298,704   Non-interest expenses: Compensation and benefits 845,985 58,453 (2) 787,532 Non-compensation expenses   439,645     77,133   (3)   362,512   Total non-interest expenses   1,285,630     135,586   (4)   1,150,044     Operating income (loss) $ 97,596   $ (51,064 ) $ 148,660     Net earnings (loss) $ 72,735   $ (32,901 ) $ 105,636     Compensation ratio (a) 61.2 % 60.6 %     Six Months Ended May 31, 2014 GAAP Adjustments Adjusted   Net revenues $ 1,622,020 $ 99,962 (1) $ 1,522,058   Non-interest expenses: Compensation and benefits 912,775 54,222 (2) 858,553 Non-compensation expenses   427,839     68,443   (3)   359,396   Total non-interest expenses   1,340,614     122,665     1,217,949     Operating income (loss) $ 281,406   $ (22,703 ) $ 304,109     Net earnings (loss) $ 177,206   $ (11,470 ) $ 188,676     Compensation ratio (a) 56.3 % 56.4 %   (a) Reconciliation of the compensation ratio for U.S. GAAP to Adjusted is a derivation of the reconciliation of the components above.   This presentation of Adjusted financial information is an unaudited non-GAAP financial measure. Adjusted financial information begins with information prepared in accordance with U.S. GAAP and then those results are adjusted to exclude the operations of the Company's Bache business. The Company believes that the disclosed Adjusted measures and any adjustments thereto, when presented in conjunction with comparable U.S. GAAP measures are useful to investors as they enable investors to evaluate the Company's results in the context of exiting the Bache business. These measures should not be considered a substitute for, or superior to, measures of financial performance prepared in accordance with U.S. GAAP.  

JEFFERIES GROUP LLC AND SUBSIDIARIES CONSOLIDATED ADJUSTED SELECTED FINANCIAL DATA FOOTNOTES

(1)   Revenues generated by the Bache business, including commissions, principal transaction revenues and net interest revenue, for the presented period have been classified as a reduction of revenue in the presentation of Adjusted financial measures.   (2) Compensation expense and benefits recognized during the presented period for employees whose sole responsibilities pertain to the activities of the Bache business, including front office personnel and dedicated support personnel, have been classified as a reduction of Compensation and benefits expense in the presentation of Adjusted financial measures.   (3) Expenses directly related to the operations of the Bache business for the presented periods have been excluded from Adjusted non-compensation expenses. These expenses include Floor brokerage and clearing fees, amortization of capitalized software used directly by the Bache business in conducting its business activities, technology and occupancy expenses directly related to conducting Bache business operations and business development and professional services expenses incurred by the Bache business as part of its client sales and trading activities, including estimates of certain support costs dedicated to the Bache business.   (4) Total non-interest expenses for the period include costs of $28.6 million, on a pre-tax basis, related to our exit of the Bache business. The after-tax effect of these costs is $20.5 million. These costs consist primarily of severance, retention and benefit payments for employees, incremental amortization of outstanding restricted stock and cash awards, contract termination costs and incremental amortization expense of capitalized software expected to no longer be used subsequent to the wind-down of the business. We expect to incur additional costs of $48.6 million and $34.3 million on a pre-tax and post-tax basis, respectively, over the remainder of fiscal 2015.   JEFFERIES GROUP LLC AND SUBSIDIARIES SELECTED STATISTICAL INFORMATION (Amounts in Thousands, Except Other Data) (Unaudited)           Quarter Ended May 31, 2015 February 28, 2015 May 31, 2014

Revenues by Source

Equities $ 228,198 $ 203,479 $ 177,238 Fixed income 153,444 126,035   217,706   Total sales and trading 381,642 329,514 394,944   Equity 108,805 79,071 83,726 Debt 154,670 60,876   147,000   Capital markets 263,475 139,947 230,726 Advisory 140,787 132,048   100,423   Total investment banking 404,262 271,995 331,149   Asset management fees and investment income (loss)from managed funds: Asset management fees 4,903 13,985 4,927 Investment (loss) income from managed funds 747 (23,822 ) (8,028 ) Total 5,650 (9,837 ) (3,101 ) Net revenues $ 791,554 $ 591,672   $ 722,992    

Other Data

Number of trading days 63 61 63 Number of trading loss days 10 11 11 Number of trading loss days excluding Knight Capital 5 9 4   Average firmwide VaR (in millions) (A) $ 12.80 $ 13.27 $ 14.94 Average firmwide VaR excluding Knight Capital (in millions) (A) $ 9.86 $ 9.29 $ 8.63 Average firmwide VaR excluding Knight Capital and HRG Group Inc. (in millions) (A) $ 9.86 $ 9.29 $ 7.97   (A)   VaR estimates the potential loss in value of our trading positions due to adverse market movements over a one-day time horizon with a 95% confidence level. For a further discussion of the calculation of VaR, see "Value at risk" in Part II, Item 7 "Management's Discussion and Analysis" in our Annual Report on Form 10-K for the year ended November 30, 2014.   JEFFERIES GROUP LLC AND SUBSIDIARIES SELECTED STATISTICAL INFORMATION (Amounts in Thousands, Except Other Data) (Unaudited)         Six Months Ended May 31, 2015 May 31, 2014

Revenues by Source

Equities $ 431,677 $ 366,061 Fixed income 279,479   503,634   Total sales and trading 711,156 869,695   Equity 187,876 178,464 Debt 215,546   320,038   Capital markets 403,422 498,502 Advisory 272,835   246,967   Total investment banking 676,257 745,469   Asset management fees and investment income (loss)from managed funds: Asset management fees 18,888 14,373 Investment (loss) income from managed funds (23,075 ) (7,517 ) Total (4,187 ) 6,856   Net revenues $ 1,383,226   $ 1,622,020    

Other Data

Number of trading days 124 124 Number of trading loss days 21 18 Number of trading loss days excluding Knight Capital 14 5   Average firmwide VaR (in millions) (A) $ 13.03 $ 15.60 Average firmwide VaR excluding Knight Capital (in millions) (A) $ 9.58 $ 10.60 Average firmwide VaR excluding Knight Capital and HRG Group Inc. (in millions) (A) $ 9.58 $ 8.59   (A)   VaR estimates the potential loss in value of our trading positions due to adverse market movements over a one-day time horizon with a 95% confidence level. For a further discussion of the calculation of VaR, see "Value at risk" in Part II, Item 7 "Management's Discussion and Analysis" in our Annual Report on Form 10-K for the year ended November 30, 2014.   JEFFERIES GROUP LLC AND SUBSIDIARIES FINANCIAL HIGHLIGHTS (Amounts in Millions, Except Where Noted) (Unaudited)           Quarter Ended May 31, 2015 February 28, 2015 May 31, 2014  

Financial position:

Total assets (1) $ 44,142 $ 43,787 $ 43,610 Average total assets for the period (1) $ 51,013 $ 49,862 $ 50,379 Average total assets less goodwill and intangible assets for the period (1) $ 49,118 $ 47,961 $ 48,394   Cash and cash equivalents (1) $ 3,289 $ 3,340 $ 3,958 Cash and cash equivalents and other sources of liquidity (1) (2) $ 4,951 $ 4,647 $ 5,824 Cash and cash equivalents and other sources of liquidity - % total assets (1) (2) 11.2 % 10.6 % 13.4 % Cash and cash equivalents and other sources of liquidity - % total assets less goodwill

and intangible assets (1) (2)

11.7 % 11.1 % 14.0 %   Financial instruments owned (1) $ 18,843 $ 19,099 $ 17,144 Goodwill and intangible assets (1) $ 1,895 $ 1,900 $ 1,984   Total equity (including noncontrolling interests) $ 5,520 $ 5,466 $ 5,527 Total member's equity $ 5,480 $ 5,427 $ 5,496 Tangible member's equity (3) $ 3,585 $ 3,527 $ 3,512   Bache assets (4) $ 2,955 $ 3,926 $ 3,271  

Level 3 financial instruments:

Level 3 financial instruments owned (1) (5) (6) $ 540 $ 540 $ 453 Level 3 financial instruments owned - % total assets (1) (6) 1.2 % 1.2 % 1.0 % Total Level 3 financial instruments owned - % total financial instruments (1) (6) 2.9 % 2.8 % 2.6 % Level 3 financial instruments owned - % tangible member's equity (1) (6) 15.1 % 15.3 % 12.9 %  

Other data and financial ratios:

Total capital (1) (7) $ 10,860 $ 11,193 $ 11,941 Leverage ratio (1) (8) 8.0 8.0 7.9 Adjusted leverage ratio (1) (9) 10.3 10.1 10.0 Tangible gross leverage ratio (1) (10) 11.8 11.9 11.9 Leverage ratio - excluding impacts of the Leucadia transaction (1) (11) 10.1 10.1 10.0   Number of trading days 63 61 63 Number of trading loss days 10 11 11 Number of trading loss days excluding Knight Capital 5 9 4 Average firmwide VaR (12) $ 12.80 $ 13.27 $ 14.94 Average firmwide VaR excluding Knight Capital (12) $ 9.86 $ 9.29 $ 8.63 Average firmwide VaR excluding Knight Capital and HRG Group Inc. (12) $ 9.86 $ 9.29 $ 7.97   Number of employees, at period end 3,830 3,936 3,785  

JEFFERIES GROUP LLC AND SUBSIDIARIES FINANCIAL HIGHLIGHTS - FOOTNOTES

(1)   Amounts pertaining to May 31, 2015 represent a preliminary estimate as of the date of this earnings release and may be revised in our Quarterly Report on Form 10-Q for the quarterly period ended May 31, 2015.   (2) At May 31, 2015, other sources of liquidity include high quality sovereign government securities and reverse repurchase agreements collateralized by U.S. government securities and other high quality sovereign government securities of $1,135 million, in aggregate, and $527 million, being the total of the estimated amount of additional secured financing that could be reasonably expected to be obtained from our financial instruments that are currently not pledged at reasonable financing haircuts and additional funds available under the committed senior secured revolving credit facility available for working capital needs of Jefferies Bache. The corresponding amounts included in other sources of liquidity at February 28, 2015 were $911 million and $396 million, respectively, and at May 31, 2014, were $1,202 million and $664 million, respectively.   (3)

Tangible member's equity (a non-GAAP financial measure) represents total member's equity less goodwill and identifiable intangible assets. We believe that tangible member's equity is meaningful for valuation purposes, as financial companies are often measured as a multiple of tangible member's equity, making these ratios meaningful for investors.

  (4) Bache assets (a non-GAAP financial measure) includes Cash and cash equivalents, Cash and securities segregated, Financial instruments owned, Securities purchased under agreements to resell and Receivables attributable to our Bache business.   (5) Level 3 financial instruments represent those financial instruments classified as such under Accounting Standards Codification 820, accounted for at fair value and included within Financial instruments owned.   (6) In May 2015, the Financial Accounting Standards Board issued Accounting Standards Update No. 2015-07, “Fair Value Measurement (Topic 820) - Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent).” The guidance removes the requirement to include investments in the fair value hierarchy for which the fair value is measured at net asset value using the practical expedient under “Fair Value Measurements and Disclosures (Topic 820).” The guidance also removes the requirement to make certain disclosures for all investments that are eligible to be measured at fair value using the net asset value practical expedient. Rather, those disclosures are limited to investments for which we have elected to measure the fair value using that practical expedient. The guidance is effective retrospectively beginning in the first quarter of fiscal 2017. Early adoption is permitted and we have early adopted this guidance during the second quarter of fiscal 2015.   (7) At May 31, 2015, February 28, 2015 and May 31, 2014, total capital includes our long-term debt of $5,340 million, $5,726 million and $6,414 million, respectively, and total equity. Long-term debt included in total capital is reduced by amounts outstanding under the revolving credit facility and the amount of debt maturing in less than one year, where applicable.   (8) Leverage ratio equals total assets divided by total equity.   (9) Adjusted leverage ratio (a non-GAAP financial measure) equals adjusted assets divided by tangible total equity, being total equity less goodwill and identifiable intangible assets. Adjusted assets (a non-GAAP financial measure) equals total assets less securities borrowed, securities purchased under agreements to resell, cash and securities segregated, goodwill and identifiable intangibles plus financial instruments sold, not yet purchased (net of derivative liabilities). At May 31, 2015, February 28, 2015 and May 31, 2014, adjusted assets were $37,172 million, $35,977 million and $35,577 million, respectively. We believe that adjusted assets is a meaningful measure as it excludes certain assets that are considered of lower risk as they are generally self-financed by customer liabilities through our securities lending activities.   (10) Tangible gross leverage ratio (a non-GAAP financial measure) equals total assets less goodwill and identifiable intangible assets divided by tangible member's equity. The tangible gross leverage ratio is used by rating agencies in assessing our leverage ratio.   (11) Leverage ratio - excluding impacts of the Leucadia transaction (a non-GAAP financial measure) is calculated as follows:                     May 31,   February 28,   May 31, $ millions 2015 2015 2014 Total assets $ 44,142 $ 43,787 $ 43,610 Goodwill and acquisition accounting fair value adjustments on the

transaction with Leucadia

(1,957 ) (1,957 ) (1,957 ) Net amortization to date on asset related purchase accounting

adjustments

116   112   37   Total assets excluding transaction impacts $ 42,301   $ 41,942   $ 41,690     Total equity $ 5,520 $ 5,466 $ 5,527 Equity arising from transaction consideration (1,426 ) (1,426 ) (1,426 ) Preferred stock assumed by Leucadia 125 125 125 Net amortization to date of purchase accounting adjustments, net

of tax

(31 ) (20 ) (48 ) Total equity excluding transaction impacts $ 4,188   $ 4,145   $ 4,178     Leverage ratio - excluding impacts of the Leucadia transaction 10.1   10.1   10.0     (12)   VaR estimates the potential loss in value of our trading positions due to adverse market movements over a one-day time horizon with a 95% confidence level. For a further discussion of the calculation of VaR, see "Value at risk" in Part II, Item 7 "Management's Discussion and Analysis" in our Annual Report on Form 10-K for the year ended November 30, 2014.

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Jefferies Group LLCPeregrine C. Broadbent, (212) 284-2338Chief Financial Officer