M&A and IPO Market - The IPO market is experiencing movement [1] - The M&A environment is also active [1] Geopolitical and Political Climate - The geopolitical climate is a factor being discussed [1] - The Democratic Party is part of the discussion [1] Expert Commentary - Lazard CEO Peter Orszag provides insights [1]

Peter Orszag, Lazard CEO, joins 'Money Movers' to discuss the movement in the IPO market, M&A environment and the geopolitical climate. ...

Core Insights - Lazard, Inc. reported a preliminary asset under management (AUM) balance of $235.3 billion as of May 31, 2025, reflecting a 1.7% increase from April 30, 2025 [1][7] - The AUM increase was driven by market appreciation of $7.4 billion and foreign exchange appreciation of $0.2 billion, partially offset by net outflows of $3.7 billion, which included $4.3 billion outflows from a single sub-advised relationship [1][7] - Equity assets rose 2.4% to $180.5 billion, while fixed-income assets decreased 1.3% to $45.8 billion, and other assets increased 3% to $9 billion [2][7] Financial Performance - The company's reliance on financial advisory fees for revenue and ongoing net outflows may impact top-line growth [3] - Cost-management efforts are expected to support the company's bottom line in the near term [3] - Over the past year, Lazard's shares have increased by 14.3%, outperforming the industry growth of 12.4% [3] Comparison with Other Asset Managers - Franklin Resources, Inc. reported an AUM of $1.57 trillion as of May 31, 2025, which increased by 2.6% from the prior month, driven by market impacts and long-term net inflows of $1 billion [8]

Lazard (LAZ) 2025 Conference Summary Company Overview - **Company**: Lazard (LAZ) - **Event**: 2025 Conference - **Date**: June 10, 2025 Key Points Industry and Company Strategy - **Lazard 2030 Vision**: The company aims to double revenues and improve returns, with a focus on board engagement and strategic refreshment [6][8] - **Board Composition**: New board members are being added to enhance active engagement and oversight [4][5] - **Cultural Shift**: A commercial and collegial culture is being emphasized, which has positively impacted hiring and productivity [7][8] Financial Advisory Performance - **Productivity Target**: Lazard is ahead of schedule in achieving a productivity target of $8.5 million per managing director (MD) [8] - **Hiring Strategy**: Continued hiring in key sectors such as consumer retail, sports media, healthcare, and private capital is planned for 2024 and 2025 [7][8] - **Geographic Diversification**: The company is benefiting from a diversified geographic presence, particularly in North America and Europe, as global investment sentiment shifts [10][11] Asset Management Insights - **Growth Opportunities**: Both organic and inorganic growth opportunities are being pursued, particularly in active ETFs and global diversification strategies [16][17] - **Investor Sentiment**: There is a noted shift in investor preference towards non-US assets, with 90% of a specific mandate being in strategies outside the US [18][19] - **Performance Metrics**: The asset management business is seeing improved performance compared to the previous year, with a focus on global strategies [20][21] M&A Advisory Environment - **Client Sentiment**: There is an acceleration in discussions around M&A, influenced by recent developments in tariff regulations and a more accommodating regulatory environment [28][29] - **Market Dynamics**: The company is observing a diverse range of activities across geographies, with a notable increase in European deal-making [32][33] - **Regulatory Landscape**: A shift back to a more traditional regulatory perspective is expected, which may facilitate M&A activity [35][37] Private Capital and Restructuring - **Private Capital Activity**: The share of revenue from private capital is around 40%, indicating significant growth potential in this area [39][40] - **Restructuring Services**: Elevated activity in restructuring and liability management is anticipated due to high interest rates and market volatility [41][42] Financial Metrics and Shareholder Returns - **Compensation Ratio**: The current comp ratio is 65.5%, with a goal to reduce it to 60% depending on market conditions [45] - **Total Shareholder Return (TSR)**: Lazard aims for an average TSR of 10-15% per year, with a strong focus on executing their growth plan [50][51] Final Remarks - **Cultural Foundation**: The company emphasizes a strong cultural foundation that combines business insight with geopolitical awareness, positioning Lazard for future growth [54] Additional Insights - **AI Focus**: Lazard is committed to leveraging AI advancements across both financial advisory and asset management sectors [11][54] - **Recruitment Success**: The company is successfully attracting talent, with plans to add 10-15 MDs annually [46][47] This summary encapsulates the key insights and strategic directions discussed during the Lazard 2025 Conference, highlighting the company's focus on growth, diversification, and adapting to market dynamics.

Core Viewpoint - Goodyear Tire & Rubber Company has signed a definitive agreement to sell the majority of its Goodyear Chemical business to Gemspring Capital Management for approximately $650 million, as part of its strategic transformation plan [1][2][3]. Group 1: Transaction Details - The transaction involves the sale of Goodyear Chemical facilities located in Houston and Beaumont, Texas, along with a research office in Akron, Ohio [2]. - Goodyear will receive cash proceeds of approximately $650 million at closing, subject to post-closing adjustments [2]. - A long-term supply agreement is included in the transaction terms [2]. Group 2: Strategic Implications - The sale reflects Goodyear's commitment to optimizing its portfolio and enhancing shareholder value [3]. - Proceeds from the transaction will be used to reduce leverage and fund initiatives related to the Goodyear Forward transformation plan [3]. Group 3: Operational Impact - Goodyear will retain its Chemical facilities in Niagara Falls, New York, and Bayport, Texas, along with rights to the products produced at these locations [4]. - The transaction is subject to regulatory approval and other customary closing conditions, with an expected closing date by late 2025 [3]. Group 4: Advisory Support - Lazard is acting as the lead financial advisor, Deutsche Bank is serving as a financial advisor, and Squire Patton and Boggs is providing legal advice to Goodyear [5]. Group 5: Company Overview - Goodyear is one of the largest tire companies globally, employing about 68,000 people and operating 53 facilities in 20 countries [6]. - The company has two Innovation Centers located in Akron, Ohio, and Colmar-Berg, Luxembourg, focusing on developing advanced products and services [6].

沈思逸 A0230521070001 shensy@swsresearch.com 邓虎 A0230520070003 denghu@swsresearch.com 联系人 沈思逸 (8621)23297818× shensy@swsresearch.com 2025 年 05 月 19 日 跨境产品表现出色，发行数量增加 ——海外创新产品周报 20250519 证券分析师 权 益 量 化 研 究 证 券 研 究 报 告 请务必仔细阅读正文之后的各项信息披露与声明 本研究报告仅通过邮件提供给 中庚基金 使用。1 ETP 研 究 ⚫ 美国 ETF 创新产品：跨境产品发行增加。上周美国共 17 只新发产品，跨境产品发行增加。 Lazard 上周一将其国际股票主动基金转为 ETF，产品的主要基准为 MSCI ACWI 除美国指 数，采用量化打分、风险因子优化的方式构建组合。今年除美国以外的投资机会关注度明 显提升，Horizon 发行一只日本 ETF，罗素、Harbor、Vontobel 上周都发行了跨境产品。 ⚫ 美国 ETF 资金流向：股票重新大幅流入。上周美国股票 ETF 重新恢复流入，国内股票单周 流入超过 ...

Group 1: Lazard's Asset Under Management (AUM) Performance - Lazard reported a preliminary AUM of $231.4 billion as of April 30, 2025, reflecting a 1.8% increase from March 31, 2025, driven by foreign exchange appreciation of $5.1 billion, despite market depreciation of $0.9 billion and net outflows of $0.2 billion [1] - In April, Lazard's equity assets increased by 1.3% to $176.3 billion, while fixed-income assets rose by 5.3% to $46.3 billion, and other assets decreased by 5.6% to $8.8 billion [2] Group 2: Financial Performance and Outlook - The company's heavy reliance on financial advisory fees and continued net outflows may negatively impact top-line growth in the near future, although cost-management efforts are expected to support the bottom line [3] - Over the past year, Lazard's shares have increased by 21.4%, outperforming the industry growth of 10% [4] Group 3: Industry Comparison - Franklin Resources reported preliminary AUM of $1.53 trillion as of April 30, 2025, showing a slight decrease due to long-term net outflows of $10 billion [7] - T. Rowe Price announced preliminary AUM of $1.56 trillion for April 2025, reflecting a marginal decrease, with equity products at $767 billion and fixed income growing by 1% to $198 billion [8]

M&A Transactions - Completed M&A transactions in Q1 2025 totaled $778 billion, a 17% increase from $665 billion in Q1 2024, while the number of deals decreased by 32% to 6,719[253] - Announced M&A transactions in Q1 2025 reached $1,031 billion, an 18% increase from $874 billion in Q1 2024, with the number of deals decreasing by 24% to 7,712[253] - The financial advisory segment's revenues are closely tied to the completion of M&A transactions and restructuring activities, which can vary significantly from year to year[255] Restructuring Transactions - The value of completed restructuring transactions in Q1 2025 was $23 billion, an 85% decrease from $150 billion in Q1 2024, with the number of deals down 69% to 39[253] Financial Performance - Lazard's net revenue for Q1 2025 was $648,051, a decrease of 15.3% compared to $764,753 in Q1 2024[282] - Adjusted net revenue for Q1 2025 was $643,185, down 13.9% from $746,565 in Q1 2024[285] - Net income attributable to Lazard for Q1 2025 was $60,375, an increase of 68.9% from $35,755 in Q1 2024[282] - Adjusted operating income decreased by $46 million, or 38%, to $74 million, representing 11.5% of adjusted net revenue for the three months ended March 31, 2025[301] Asset Management - Lazard's asset management revenues are primarily driven by the level of assets under management (AUM), which is influenced by market movements and product mix[257] - Total Assets Under Management (AUM) increased to $227 billion as of March 31, 2025, up by $1 billion from $226 billion at December 31, 2024[319] - Adjusted net revenue for the Asset Management segment decreased by $11 million, or 4%, to $264,494 million compared to $275,934 million in 2024[325][329] Compensation and Expenses - Total compensation and benefits expense decreased to $430,270 in Q1 2025 from $550,824 in Q1 2024, reflecting a reduction of 21.8%[289] - Adjusted compensation and benefits expense for Financial Advisory decreased by $62 million, or 21%, compared to the 2024 period[315] Market Conditions - The MSCI World Index decreased by 2% from December 31, 2024, while the S&P 500 fell by 4% in the same period, impacting asset management revenues[257] - The company operates in a competitive environment with risks related to international trade policies and market volatility affecting client decision-making[246] Cash Flow and Liquidity - Cash provided by operating activities was negative $217 million for the three months ended March 31, 2025, compared to negative $90 million in 2024[343] - The Company had approximately $909 million in cash and cash equivalents as of March 31, 2025, including $494 million held outside the U.S.[350] - Lazard's annual cash flow from operations has historically been sufficient to meet its annual obligations, indicating strong liquidity[356] Risk Management - Operational risk is inherent in the Company's businesses, including potential errors, fraud, and cyber attacks[417] - The Company has established a framework to monitor and manage operational risk, including internal controls and business continuity programs[417] Shareholder Returns - The Company repurchased 773,955 shares at an average price of $46.73 during the three months ended March 31, 2025, with $164 million remaining under the share repurchase authorization[364] - A quarterly dividend of $0.50 per share was declared on April 24, 2025, payable on May 16, 2025[365]

Core Viewpoint - Lazard Inc. reported first-quarter 2025 adjusted earnings per share of 56 cents, exceeding the Zacks Consensus Estimate of 27 cents, but down from 66 cents per share in the same quarter last year [1][2] Financial Performance - Net income (GAAP) for Lazard was $60.4 million, a significant increase of 68.9% from the prior-year quarter [2] - Quarterly operating revenues were $643.2 million, reflecting a decline of 13.8% year over year, yet surpassing the Zacks Consensus Estimate of $616 million [3] - Operating expenses decreased to $593.4 million, down 16.4% year over year [4] Segment Performance - Financial Advisory segment adjusted operating revenues were $369.5 million, down 17.3% from the previous year [5] - Asset Management segment adjusted operating revenues decreased to $264.5 million, a decline of 4.1% year over year [5] - Corporate segment adjusted operating revenues were $9.1 million, down 61.9% from the year-ago quarter [5] Assets Under Management (AUM) - As of March 31, 2025, total AUM was $227.4 billion, a decrease of 9.2% from the prior-year quarter [6] - The average AUM in the reported quarter was $230.8 billion, down 6.5% year over year [6] Balance Sheet Position - Cash and cash equivalents totaled $908.6 million, down 30.5% from the prior quarter [7] - Stockholders' equity was $648.6 million, a decrease of 5.3% sequentially [7] Share Repurchase Activity - In the reported quarter, Lazard repurchased 0.8 million shares at an average price of $46.73 per share, with approximately $164 million remaining for future repurchases [9] Strategic Outlook - Increased dependence on advisory revenues and continued net outflows are expected to impact top-line growth [10] - Innovative investment strategies and cost mitigation initiatives are anticipated to support profitability [10]

LAZARD APRIL 2025 Investor Presentation 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," "might," "will," "should," "could," "w ...