【NEWS RELEASE】
April 27, 2023
Sumitomo Mitsui Financial Group
Sumitomo Mitsui Banking Corporation
SMBC Nikko Securities Inc.
SMBC Nikko Securities America, Inc.
SMBC Group and Jefferies Announce Growth of Strategic AllianceTOKYO, April 27, 2023 --- Sumitomo Mitsui Financial Group, Inc., Sumitomo Mitsui Banking Corporation(“SMBC”), SMBC Nikko Securities Inc., and SMBC Nikko Securities America, Inc. (collectively, “SMBCGroup”) today expanded their strategic alliance with Jefferies Financial Group Inc. (NYSE: JEF) (“Jefferies”)
to enhance their collaboration in corporate and investment banking opportunities. In addition, SMBC plans toincrease its investment in Jefferies in the form of non-voting stock to raise its economic ownership to up to
15% of Jefferies common shares on an as converted and fully diluted basis, subject to certain conditions.
The next phase of the alliance will enhance the collaboration that began in 2021, increasing the joint efforts
across the firms’ M&A advisory services and equities and debt capital markets businesses, with a primary
focus on investment grade clients in the U.S. Under the expanded agreement, Jefferies and SMBC Group will
combine U.S. equities and M&A effort under Jefferies, and SMBC will be responsible for credit and SMBC
Nikko Securities America will be responsible for debt capital markets, while Jefferies will be responsible for
M&A and equity capital markets.
This enhanced alliance includes joint coverage efforts with Jefferies’ investment banking team, with a focus
on designated U.S. investment grade clients. Under an information management and governance framework,
both firms will jointly work to propose financial solutions to designated U.S. investment grade clients thathave banking relationships with SMBC Group with dedicated Jefferies investment banking coverage. Theseefforts will take place under the co-branding of both firms. Both firms expect to grow the joint coverage
initiative as the alliance relationship deepens going forward.
SMBC currently owns approximately 4.5% of the issued and outstanding common shares of Jefferies. SMBC
intends, subject to any applicable regulatory approvals and the receipt of the approval of Jefferies’ shareholders
for the authorization of a new class of non-voting common shares, to increase its investment in Jefferies
through purchases of Jefferies’ common shares that will be exchanged for non-voting preferred shares that are1

mandatorily convertible into non-voting common shares. In doing so, SMBC plans to raise its economicownership to up to 15% on an as converted and fully diluted basis. Upon SMBC Group’s investment reachingor passing 10% of the economic ownership of Jefferies on an as converted and fully diluted basis, then SMBC
will be entitled to designate a new member to the Jefferies Board of Directors. This process will be subject toJefferies’ customary onboarding procedures to determine the designee’s eligibility and qualifications to serve
as a director.
Jefferies is the largest independent, full-service, global, investment banking firm headquartered in the U.S.
with a full range of financial service platforms, including investment banking, capital markets, research, andasset and wealth management services. In 2022, Jefferies ranked #6 in global M&A and ECM, and #7 forequity research in both the U.S. and Europe. In addition to strong positioning within investment banking, thecompany also has a leading global trading franchise and a diversified alternative asset management platform
with more than $45 billion in assets under management.
Through the enhanced alliance, both firms will work to deliver best-in-class financial solutions by leveraging
SMBC Group’s global client base, lending capacity, and debt capital markets capabilities and Jefferies’
extensive sector knowledge and investment banking capabilities, including its M&A advisory and equity
franchises.
Overview of Jefferies Financial Group Inc.
Company NameJefferies Financial Group Inc.(NYSE: JEF)
Headquarter

New York, United States

Year of Establishment

1968

Business

Full range of investment banking (advisory and capital
markets), sales and trading, research, wealth management, asset
management and merchant banking

Total assets(as of the end of Nov. 2022)

USD 51.0 billion

Net revenues(fiscal year ended Nov. 2022)

USD 6.0 billion

Net income(fiscal year ended Nov.2022)

USD 777 million

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