Private & Confidential 1Q 2016 Sum of the Parts Valuation (Dilutive) without AOCI 10 As of the close of the first quarter, the estimated net value of our assets and liabilities was $15.04 per share of diluted common stock. SUM OF THE PARTS VALUATION – ESTIMATED VALUE VS. COMMON STOCK PRICE ($) $13.56 $6.39 -$0.57 $3.33 -$0.27 $1.46 -$8.86 $15.04 $13.56 Difference of $1.48 or a 9.8% Discount Spectrum Brands1 Insurance Segment2 Total Estimated Value8 December 31st Common Stock Price9 HGI Funding LLC4 HGI Asset Mgmt Holdings LLC5 Cash6 Debt & Other Liabilities7 HGI Energy Holdings LLC3 1. The valuation of HRG’s interest in Spectrum Brands (NYSE: SPB) is based on the volume weighted average closing price (“VWAP”) of SPB shares for the 20 day trading period of $98.42 through December 31, 2015 multiplied by the 27,756,905 SPB shares owned by HRG. 2. The valuation of HRG’s interest in the insurance segment reflects the sum of the per-share-value of its interests in (i) Fidelity & Guaranty Life (NYSE: FGL) based on the VWAP of FGL shares for the 20-day trading period of $25.58 through December 31, 2015 multiplied by the 47,000,000 shares owned by HRG (or $5.97 per share); and (ii) of the $0.70 per share book value of the Insurance segment, Front Street Re (Holdings) Ltd. represents a net book value of $84.9 million, or $0.42 per share. 3. The valuation of HGI Energy Holdings LLC reflects its net book of value as of December 31, 2015. 4. The valuation of HGI Funding LLC reflects its net book value as of December 31, 2015 (which includes 6,582,847 SPB shares and the market value of other securities owned by HGI Funding). 5. The valuation of HGI Asset Management Holdings LLC, reflects its net book of value as of December 31, 2015. 6. Total cash consists of cash at HRG as of December 31, 2015. 7. Debt and other liabilities includes the face value of all liabilities at HRG as of December 31, 2015, excluding deferred tax liabilities. 8. Per share amount for each of the above mentioned assets and liabilities is calculated by dividing the total valuation of such asset or liability by the 201,389,915 shares of HRG common stock (NYSE: HRG) outstanding as of December 31, 2015, which amount does gives effect to dilution for the vesting of all outstanding restricted shares (4,283,697). 9. The closing price for HRG’s shares of common stock December 31, 2015. Note: Book value as reflected above is not necessarily indicative of market value
