【NEWS RELEASE】
July 14, 2021
Sumitomo Mitsui Financial Grou p
Sumitomo Mitsui Banking Corporation
SMBC Nikko Securities Inc.
SMBC Group and Jefferies Announce Strategic AllianceTOKYO, July 14, 2021 --- Sumitomo Mitsui Financial Group, Inc., Sumitomo Mitsui Banking Corporation(“SMBC”) and SMBC Nikko Securities Inc. (“SMBC Nikko”) (together hereafter referred to as “SMBCGroup”) announced today that they have entered into a strategic alliance with Jefferies Financial Group Inc.
(NYSE: JEF) (“Jefferies Financial”), the parent company of Jefferies Group LLC (“Jefferies Group”)(together hereafter referred to as “Jefferies”), to collaborate on future corporate and investment banking(“CIB”) business opportunities.
SMBC Group provides a one-stop solution to its corporate clients through SMBC and SMBC Nikko byleveraging a global network of 148 overseas offices, world-class product capabilities and a strong balance
sheet. As disclosed in its Medium-Term Management Plan, SMBC Group is striving to “enhance overseas
CIB business to improve asset / capital efficiency” and strengthening the overseas securities business has
been among the top priorities.
Jefferies is the largest independent, full-service, global, investment banking firm headquartered in the U.S.
and provides a full range of investment banking, capital markets, research and asset and wealth management
services. In 2020, Jefferies achieved top 10 rankings in a variety of businesses, including but not limited to,global M&A, U.S. and European equity underwriting and U.S. leveraged loans. In addition to strong
positioning within investment banking, Jefferies also has a leading global trading franchise and a diversified
alternative asset management platform with $30bn of net asset values or net asset value equivalent

assetsunder management for Jefferies and their affiliated asset managers.
Through the strategic alliance, SMBC Group and Jefferies will collaborate across highly-accretive growthareas in their corporate and investment banking businesses. These initiatives are expected to strengthen theexisting businesses of both firms, and enhance each firm’s ability to support its clients’ needs.
U.S. Sub-Investment Grade: SMBC Group and Jefferies will co-work in the U.S. leveraged
finance business to expand and scale our existing capacity across the Sub-IG client segment;

Global M&A: SMBC Group and Jefferies will work together to jointly seek cross-border M&A
opportunities involving Japanese companies; and

U.S. Healthcare Sector: SMBC Group and Jefferies will jointly pursue investment banking,capital markets and financing opportunities in the U.S. Healthcare sector by leveraging bothcompanies’ respective strengths.
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As part of this strategic alliance, SMBC Group intends to acquire up to 4.9% of the existing publicly-tradedshares of common stock of Jefferies Financial, reflecting an equity investment of up to approximately $386
million based on the closing stock price of Jefferies Financial as of July 13, 2021, subject to receipt ofrequired regulatory approvals.
Overview of Jefferies Financial Group Inc. and Jefferies Group LLC
Company NameJefferies Financial Group Inc.

Jefferies Group LLC(NYSE: JEF)
Headquarter

New York, United States

New York, United States

Year of Establishment

1968

1962

Business

Investment banking and capital

Investment banking and capital

markets, sales and trading, research,markets, sales and trading, research

wealth management services, asset

and wealth management servicesmanagement and merchant banking
Total assets (as of theUSD 58.0 billion

USD 52.2 billion

months ended May USD 7.9 billion

USD 6.7 billion

end of May 2021)
Net revenues (twelve2021)
Net income (twelve

months ended May USD 1.5 billion

USD 1.4 billion

2021)2