LAZARD October 2024 Investor Presentation I N V E S T O R P R E S E N T A T I O N Safe Harbor This presentation contains certain statements, estimates and forecasts with respect to future performance and events. These statements, estimates and forecasts are "forward-looking statements" within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. In some cases, forward-looking statements can be identified by the use of forward-looking terminology such as "may ...

For the quarter ended September 2024, Lazard (LAZ) reported revenue of $645.91 million, up 21.5% over the same period last year. EPS came in at $0.38, compared to $0.10 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $652.72 million, representing a surprise of -1.04%. The company delivered an EPS surprise of -7.32%, with the consensus EPS estimate being $0.41.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street ...

Lazard (LAZ) came out with quarterly earnings of $0.38 per share, missing the Zacks Consensus Estimate of $0.41 per share. This compares to earnings of $0.10 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -7.32%. A quarter ago, it was expected that this company would post earnings of $0.40 per share when it actually produced earnings of $0.52, delivering a surprise of 30%.Over the last four quarters, the company has surpassed ...

The market expects Lazard (LAZ) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended September 2024. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.The earnings report, which is expected to be released on October 31, 2024, might help the stock move higher if these key numbers are b ...

Core Viewpoint - Lazard, Inc. (LAZ) has shown strong stock performance, gaining 21.2% over the past six months and reaching a 52-week high of $51.46, outperforming industry peers [1][3] Group 1: Financial Performance - The company's emphasis on strategic alliances and cost-containment measures has strengthened its financial performance, with a compound annual growth rate (CAGR) of 3.2% in assets under management (AUM) from 2016 to 2023 [3][7] - Despite a decline in operating revenues in 2022 and 2023, the company has maintained a CAGR of 1.2% over the past seven years, with an upward trend continuing into the first half of 2024 [8] Group 2: Strategic Initiatives - Lazard is expanding its AUM through strategic partnerships, including a recent agreement with Elaia Partners to launch a new asset management service focused on private market solutions in the technology sector [4][5] - The establishment of Lazard Elaia Capital aims to launch a growth capital fund for private technology companies, aligning with the company's long-term strategy to meet evolving client needs [5] Group 3: Cost Management - The company is actively working on cost-containment measures, with expenses remaining flat in the first half of 2024 after previous declines [10] - Lazard aims to maintain a compensation ratio in the mid-to-high 50% range and a non-compensation ratio of 16-20% in the near term [12] Group 4: Challenges - Lazard has faced continuous net outflows, particularly in the equity asset class, with net outflows of $13.2 billion in the first half of 2024 [13] - The company's capital distribution activities raise concerns, with a dividend payout ratio of 103% and a low annualized dividend growth rate of 1.80% [15][16] Group 5: Market Position - Lazard's stock is currently trading at a price-to-earnings (P/E) ratio of 13.27, which is lower than the industry average of 14.64, indicating it may be undervalued [19]

Lazard, Inc. (LAZ) reported a preliminary asset under management (AUM) balance of $244.3 billion for August 2024, reflecting a marginal decrease from $246.1 billion as of July 31, 2024. LAZ's AUM Breakdown The fall in AUM balance was due to net outflows of $7.5 billion. This was partially offset by the market appreciation and a foreign exchange appreciation of $2.8 billion and $3 billion, respectively. In August, Lazard's equity assets decreased almost 1.8% from the prior month's level to $192.2 billion, wh ...

Company Overview - Lazard, Inc. reported a preliminary asset under management (AUM) balance of $246.1 billion for July 2024, reflecting a marginal increase from $244.7 billion as of June 30, 2024, driven by market appreciation of $3.5 billion and foreign exchange appreciation of $1.5 billion, partially offset by net outflows of $3.6 billion [1] - In July, Lazard's equity assets increased almost 1% from the prior month's level to $192.2 billion, while fixed-income assets declined marginally to $45.8 billion, and other assets rose to $8.2 billion from the previous month [2] Financial Performance - Lazard's robust AUM balance, innovative investment strategies, and solutions are expected to support its top line, alongside a well-laddered debt maturity profile and impressive cost-control efforts [3] - Year to date, shares of Lazard have risen 27.8% against the industry's decline of 0.5% [3] Market Context - The current challenging macroeconomic environment and high reliance on financial advisory fees for a major chunk of its revenues are major concerns for Lazard [3] - In comparison, Invesco announced a preliminary AUM of $1,732 billion for July 2024, reflecting an almost 1% rise from the previous month-end, positively impacted by favorable market returns and net long-term inflows [5][6] - Cohen & Steers, Inc. reported a preliminary AUM of $84.6 billion as of July 31, 2024, reflecting a rise of 4.8% from the prior month's level, driven by market appreciation [7]

1 IF D H HT T 100 - 100 1 i T 1 Pgiam/iStock via Getty Images Lazard (NYSE:LAZ) reported a solid quarter. Growth was evident in Q2, but there was some deceleration compared to Q1 which had some big restructuring wins as we covered in our last article, probably related to ECM and DCM activity which did peter out a bit. Importantly, sponsor markets aren't doing that badly as of right now, and a decent franchise to deal with situational sponsor activity has been helpful for the company. Lazard still looks like ...

Financial Performance - Consolidated net revenue for the second quarter of 2024 was derived from Financial Advisory (60%), Asset Management (42%), and Corporate (-2%) segments, compared to 55%, 45%, and 0% respectively in the same period of 2023[267]. - As of June 30, 2024, Lazard's net revenue was $685,349,000, an increase from $643,114,000 in the same period of 2023, representing a year-over-year growth of approximately 6.3%[312]. - Operating income for the three months ended June 30, 2024, was $63,640,000, compared to a loss of $110,073,000 in the same period of 2023, indicating a significant recovery[312]. - Lazard's net income attributable to the company for the three months ended June 30, 2024, was $49,909,000, a recovery from a loss of $124,013,000 in the same period of 2023[312]. - For the six months ended June 30, 2024, net income attributable to Lazard was $86 million, compared to a net loss of $146 million in the same period of 2023[340]. - Net revenue increased by $265 million, or 22%, with adjusted net revenue increasing by $284 million, or 25%, compared to the 2023 period[341]. M&A and Restructuring Activity - Completed M&A transactions in Q2 2024 totaled $710 billion, an 18% increase from $601 billion in Q2 2023, while the number of deals decreased by 26% to 7,058[278]. - The value of announced M&A transactions in Q2 2024 was $785 billion, a 6% increase from $742 billion in Q2 2023, with a decrease in the number of deals by 18%[278]. - Completed restructuring transactions in Q2 2024 reached a value of $177 billion, a 75% increase from $101 billion in Q2 2023[278]. - The company anticipates increased M&A activity alongside greater restructuring efforts throughout 2024, driven by a recovering economic environment and high interest rates[270]. - Financial Advisory net revenue increased by $59 million, or 17%, for the three months ended June 30, 2024, reflecting an increase in completed M&A transactions[356]. Asset Management - The company's asset management net revenue is primarily driven by the level of assets under management (AUM), which is influenced by market performance and client inflows[287]. - Total Assets Under Management (AUM) decreased by $2 billion, or 1%, to $244.67 billion as of June 30, 2024, due to net outflows and foreign exchange depreciation[365]. - Net revenue for the Asset Management segment for the three months ended June 30, 2024, was $285.49 million, a decrease of $3 million or 1% compared to $288.31 million in 2023[377]. - Operating income for the Asset Management segment increased to $50.08 million for the three months ended June 30, 2024, up by $31 million or 162% from $19.09 million in 2023[378]. - Average AUM for the six months ended June 30, 2024, was $246.13 billion, compared to $231.11 billion for the same period in 2023, reflecting a growth of 6.5%[373]. Expenses and Cost Management - The total operating expenses for the six months ended June 30, 2024, were $1,331,901,000, slightly down from $1,332,547,000 in the same period of 2023[312]. - Compensation and benefits expenses decreased to $452,560,000 for the three months ended June 30, 2024, from $572,231,000 in the same period of 2023, reflecting a reduction of approximately 21%[312]. - Non-compensation expense decreased by $12 million, or 7%, while adjusted non-compensation expense increased by $5 million, or 3%[336]. - Operating expenses for the Asset Management segment decreased by $34 million or 13% compared to the 2023 period, which included $37 million associated with cost-saving initiatives[377]. - The company completed firm-wide cost-saving initiatives during the first quarter of 2024, aimed at improving operational efficiency[303]. Tax and Corporate Structure - Following the conversion to a U.S. C-Corporation on January 1, 2024, Lazard anticipates an increase in its effective tax rate due to U.S. federal corporate income taxes being applicable to all operating income[304]. - The effective tax rate was 18.2%, compared to (9.4)% in 2023, primarily due to changes in the geographic mix of earnings[338]. - The provision for income taxes reflected an effective tax rate of 21.9%, compared to 7.8% for the 2023 period[346]. Cash Flow and Liquidity - Cash provided by operating activities for the six months ended June 30, 2024, was $86 million, compared to a cash used of $211 million in the same period of 2023[390]. - As of June 30, 2024, Lazard had approximately $848 million in cash and cash equivalents, including $434 million held outside the U.S.[398]. - The company had approximately $209 million in unused lines of credit available as of June 30, 2024, including a $200 million senior revolving credit facility[399]. - The company expects to meet its annual obligations through cash flow generated from operations[404]. Shareholder Returns - Lazard repurchased 1,055,913 shares at an average price of $38.66 during the six months ended June 30, 2024[413]. - The Board of Directors authorized an additional $200 million share repurchase program on July 24, 2024, bringing total authorization to approximately $360 million[414]. Market Risks - The company's exposure to equity market price risk was approximately $149 million as of June 30, 2024, compared to $150 million as of December 31, 2023[452]. - The company's exposure to interest rate and credit spread risk was $118 million as of June 30, 2024, up from $18 million as of December 31, 2023[453]. - The company's exposure to foreign exchange rate risk was $63 million as of June 30, 2024, down from $69 million as of December 31, 2023[454].

Results benefited from lower expenses and rise in assets under management (AUM) balances. The ratio of adjusted compensation expenses to operating revenues was 66%, down from the year-earlier quarter's 68.4%. The ratio of adjusted non-compensation expenses to operating revenues was 21.7%, down from the year-ago quarter's 23.2%. Financial Advisory: The segment's adjusted operating revenues were $407.9 million, rising 19% from the year-earlier quarter's levels. We had projected the metric to be $351.7 million ...