NEW YORK, July 27, 2023 – Lazard Ltd (NYSE: LAZ) today reported operating revenue1 of $620 million for the quarter ended June 30, 2023. Net income, as adjusted2, was $23 million, or $0.24 per share, diluted, for the quarter. On a U.S. GAAP basis, second-quarter 2023 net loss was $124 million, or $1.41 per share, diluted.

First-half 2023 net loss, as adjusted, was $0.3 million. On a U.S. GAAP Basis, first-half 2023 net loss was $146 million, or $1.68 per share, diluted.

"Lazard’s diversified global business model has proven resilient during the continued challenging market conditions in the second quarter," said Kenneth M. Jacobs, Chairman and Chief Executive Officer of Lazard. "Our Asset Management business is well-positioned, and we believe the M&A market is stabilizing and conditions are set for the beginning of a rebound."

Note: Endnotes are on page 5 of this release. A reconciliation of adjusted GAAP to U.S. GAAP is on pages 13-14.

Operating revenue was $620 million for the second quarter of 2023, and $1,147 million for the first half of 2023, 8% and 17% lower, respectively, from the comparable 2022 periods.

For the second quarter of 2023, Financial Advisory operating revenue was $344 million, 15% lower than the second quarter of 2022.

For the first half of 2023, Financial Advisory operating revenue was $618 million, 22% lower than the first half of 2022.

During and since the second quarter of 2023, Lazard has been engaged in significant and complex M&A transactions and other strategic advisory assignments globally, including the following (clients are in italics): Lincoln Financial Group’s $28 billion reinsurance transaction with Fortitude Re; Newmont’s $19 billion acquisition of Newcrest; EDF in the implementation of the squeeze-out procedure for the shares and OCEANEs of EDF following the simplified tender offer launched by the French State, valued at €9.7 billion; CVS Health's $10.6 billion acquisition of Oak Street Health; NEOM Green Hydrogen Company’s completion of an $8.4 billion financing for the world’s largest carbon-free green hydrogen plant; Xylem's $7.5 billion acquisition of Evoqua; Affiliate of Lone Star Funds’ €5.2 billion sale of MBCC Group to Sika; NiSource’s $2.4 billion agreement to sell a minority equity interest in NIPSCO to Blackstone Infrastructure Partners; Madison Dearborn Partners' closing of its $2.2 billion continuation fund; Mars' $1.45 billion acquisition of Heska; Insight Partners’ closing of its $1.3 billion continuation fund; Oakley Capital on the closing of its over €1 billion continuation fund for IU Group; Agrofert’s €810 million acquisition of Borealis' nitrogen business; IFF’s $900 million sale of its Savory Solutions Group to PAI Partners; Allen & Overy LLP’s combination with Shearman & Sterling; and Braya Renewable Fuel’s preferred equity investment from Energy Capital Partners.

Lazard has one of the world’s preeminent restructuring and capital solutions practices. During and since the second quarter of 2023, we have been engaged in a broad range of visible and complex restructuring and debt advisory assignments, including debtor roles involving Bed Bath & Beyond, IKKS, Latécoère, Naftogaz, National CineMedia, SiO2 Medical Products and Vroon, and creditor and/or related party roles involving Ansaldo Energia, Endo Pharmaceuticals, Orpea, Party City, SVB Financial Group, Technicolor Creative Studio and Venator.

Our Capital Advisory practice remains active globally, advising on a broad range of public and private assignments. Our Sovereign Advisory practice continues to be active advising governments, sovereign and sub-sovereign entities across developed and emerging markets.

For a list of publicly announced Financial Advisory transactions on which Lazard advised in the second quarter of 2023, or continued to advise or completed since June 30, 2023, please visit our website at www.lazard.com/financial-advisory/transactions/.

For the second quarter of 2023, Asset Management operating revenue was $267 million, 1% higher than the second quarter of 2022. For the first half of 2023, Asset Management operating revenue was $532 million, 8% lower than the first half of 2022.

For the second quarter of 2023, management fees and other revenue was $261 million, 1% higher than the second quarter of 2022, and 1% higher than the first quarter of 2023. For the first half of 2023, management fees and other revenue was $520 million, 5% lower than the first half of 2022.

Average assets under management (AUM) for the second quarter of 2023 was $235 billion, 2% higher than the second quarter of 2022, and 4% higher than the first quarter of 2023. Average AUM for the first half of 2023 was $231 billion, 5% lower than the first half of 2022.

AUM as of June 30, 2023, was $239 billion, 3% higher than March 31, 2023, and 10% higher than June 30, 2022. The sequential change from March 31, 2023 was driven by market appreciation of $8.8 billion, offset by foreign exchange depreciation of $0.6 billion and net outflows of $1.0 billion.

For the second quarter of 2023, incentive fees were $6 million, compared to $7 million for the second quarter of 2022. For the first half of 2023, incentive fees were $11 million, compared to $33 million for the first half of 2022.

For the second quarter of 2023, adjusted compensation and benefits expense1 was $424 million, compared to $395 million for the second quarter of 2022. The adjusted compensation ratio for the second quarter of 2023 was 68.4%, compared to the second-quarter 2022 ratio of 58.5%.

For the first half of 2023, adjusted compensation and benefits expense was $823 million, compared to $804 million for the first half of 2022.

Our goal remains to maintain a compensation-to-operating revenue ratio over the cycle in the mid- to high-50s percentage range on both an awarded and adjusted basis, while targeting a consistent deferral policy.

For the second quarter of 2023, adjusted non-compensation expense1 was $144 million, 10% higher than the second quarter of 2022, primarily reflecting increased occupancy costs, as well as higher travel and business development and professional services expenses.

The ratio of adjusted non-compensation expense to operating revenue was 23.2% for the second quarter of 2023, compared to 19.4% for the second quarter of 2022.

Adjusted non-compensation expense for the first half of 2023 was $286 million, 15% higher than the first half of 2022. The ratio of adjusted non-compensation expense to operating revenue for the first half of 2023 was 24.9%, compared to 18.0% for the first half of 2022.

Our goal remains to maintain an adjusted non-compensation expense-to-operating revenue ratio over the cycle of 16% to 20%.

The provision for taxes, on an adjusted basis1, was $10 million for the second quarter and a benefit of $0.5 million for the first half of 2023. The effective tax rate on the same basis was 31.2% for the second quarter of 2023 and 67.8% for the first half of 2023, compared to 26.4% and 25.9% for the respective 2022 periods.

In the second quarter of 2023, Lazard returned $47 million to shareholders, which included: $43 million in dividends and $4 million in satisfaction of employee tax obligations in lieu of share issuances upon vesting of equity grants.

In the first half of 2023, Lazard returned $234 million to shareholders, which included: $86 million in dividends; $99 million in share repurchases of our common stock; and $49 million in satisfaction of employee tax obligations in lieu of share issuances upon vesting of equity grants.

During the first half of 2023, we repurchased 2.7 million shares. As of June 30, 2023, our remaining share repurchase authorization was $203 million.

On July 26, 2023, Lazard declared a quarterly dividend of $0.50 per share on its outstanding common stock. The dividend is payable on August 18, 2023, to stockholders of record on August 7, 2023.

Lazard’s financial position remains strong. As of June 30, 2023, our cash and cash equivalents were $698 million. Stockholders’ equity related to Lazard’s interests was $360 million.

1A non-U.S. GAAP measure. See attached financial schedules and related notes for a detailed explanation of adjustments to corresponding U.S. GAAP results. We believe that presenting our results on an adjusted basis, in addition to the U.S. GAAP results, is the most meaningful and useful way to compare our operating results across periods.

2Second-quarter and first-half 2023 adjusted results1 exclude pre-tax charges of $146.7 million and $167.4 million, respectively, relating to expenses associated with cost-saving initiatives; first-half pre-tax charges of $10.7 million relating to expenses associated with senior management transition, a benefit pursuant to tax receivable agreement obligation (“TRA”) of $40.4 million, and $19.1 million relating to certain asset impairment charges. On a U.S. GAAP basis, these resulted in a net charge of $146.7 million, or $1.65, per share, diluted, for the second quarter, and a net charge of $145.9 million, or $1.66, per share, diluted, for the first half of 2023.

Lazard will host a conference call at 8:00 a.m. ET on July 27, 2023, to discuss the company’s financial results for the second quarter of 2023 and first half of 2023. The conference call can be accessed via a live audio webcast available through Lazard’s Investor Relations website at www.lazard.com, or by dialing 1 800-245-3047 (toll-free, U.S. and Canada) or +1 203-518-9765 (outside of the U.S. and Canada), 15 minutes prior to the start of the call. Conference ID: LAZQ223.

A replay of the conference call will be available by 10:00 a.m. ET, July 27, 2023, via the Lazard Investor Relations website at www.lazard.com, or by dialing +1 800-839-4016 (toll-free, U.S. and Canada) or +1 402-220-7240 (outside of the U.S. and Canada).

Lazard, one of the world's preeminent financial advisory and asset management firms, operates from 43 cities across 26 countries in North and South America, Europe, Asia and Australia. Celebrating its 175th year, the firm provides advice on mergers and acquisitions, capital markets and other strategic matters, restructuring and capital solutions, and asset management services to corporations, partnerships, institutions, governments and individuals. For more information on Lazard, please visit www.lazard.com. Follow Lazard at @Lazard.

•A decline in general economic conditions or the global or regional financial markets;

•A decline in our revenues, for example due to a decline in overall mergers and acquisitions (M&A) activity, our share of the M&A market or our assets under management (AUM);

•Losses caused by financial or other problems experienced by third parties;

•Losses due to unidentified or unanticipated risks;

•A lack of liquidity, i.e., ready access to funds, for use in our businesses; and

•Competitive pressure on our businesses and on our ability to retain and attract employees at current compensation levels.

Lazard Ltd is committed to providing timely and accurate information to the investing public, consistent with our legal and regulatory obligations. To that end, Lazard and its operating companies use their websites, Lazard’s Twitter account (twitter.com/Lazard) and other social media sites to convey information about their businesses, including the anticipated release of quarterly financial results, quarterly financial, statistical and business-related information, and the posting of updates of assets under management in various mutual funds, hedge funds and other investment products managed by Lazard Asset Management LLC and Lazard Frères Gestion SAS. Investors can link to Lazard and its operating company websites through www.lazard.com.

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LAZ-EPE

Note: Average AUM generally represents the average of the monthly ending AUM balances for the period.

This presentation includes non-GAAP measures. Our non-GAAP measures are not meant to be considered in isolation or as a substitute for the corresponding U.S. GAAP measures and should be read only in conjunction with our consolidated financial statements prepared in accordance with U.S. GAAP. For a detailed explanation of the adjustments made to the corresponding U.S. GAAP measures, see Notes to Financial Schedules.

See Notes to Financial Schedules

This presentation includes non-GAAP measures. Our non-GAAP measures are not meant to be considered in isolation or as a substitute for the corresponding U.S. GAAP measures and should be read only in conjunction with our consolidated financial statements prepared in accordance with U.S. GAAP. For a detailed explanation of the adjustments made to the corresponding U.S. GAAP measures, see Notes to Financial Schedules.