Business Wire | Apr 30, 2021 06:49AM EDT

Lazard Ltd Reports First-Quarter 2021 Results

Apr. 30, 2021

NEW YORK--(BUSINESS WIRE)--Apr. 30, 2021--Lazard Ltd (NYSE: LAZ) today reported operating revenue1 of $648 million for the quarter ended March 31, 2021. Net income, as adjusted2, was $101 million, or $0.87 per share (diluted) for the quarter.

First-quarter 2021 net income on a U.S. GAAP basis was $87 million, or $0.75 per share (diluted).

"We are well positioned for the year ahead with record assets under management and high levels of activity across Financial Advisory in a strengthening macroeconomic environment," said Kenneth M. Jacobs, Chairman and Chief Executive Officer of Lazard. "As the rollout of COVID-19 vaccines expands, and fiscal and monetary stimulus take effect, confidence is growing among business leaders and investors globally."



($ in millions, except per share data and AUM) Quarter Ended March 31,

2021 2020 %'21-'20

Net Income

U.S. GAAP $87 $64 36%

Per share, diluted $0.75 $0.56 34%

Adjusted^2 $101 $67 52%

Per share, diluted $0.87 $0.58 50%

Operating Revenue^1

Total operating revenue $648 $563 15%

Financial Advisory $317 $295 8%

Asset Management $328 $269 22%

AUM ($ in billions)

Period End $265 $193 37%

Average $261 $222 18%

Note: Endnotes are on page 6 of this release. A reconciliation of adjusted GAAP to U.S. GAAP is on pages 11-12.

OPERATING REVENUE

Operating revenue was $648 million for the quarter ended March 31, 2021, 15% higher than the first quarter of 2020.

Financial Advisory

Our Financial Advisory results include M&A Advisory, Capital Advisory, Capital Raising, Restructuring, Shareholder Advisory, Sovereign Advisory, and other strategic advisory work for clients.

Financial Advisory operating revenue was $317 million for the first quarter of 2021, 8% higher than the first quarter of 2020.

During and since the first quarter of 2021, Lazard has been engaged in significant and complex M&A transactions and other advisory assignments globally, including the following (clients are in italics): The Special Committee of the Board of Brookfield Property Partners in Brookfield Asset Management's acquisition of 100% of BPY units, valuing BPY at $71.8 billion; The Special Committee of the Board of VMware in Dell's $52.5 billion spin-off of its 81% equity stake in the company and VMware's payment of a special cash dividend; Altice Europe in the $48.5 billion take-private offer by Patrick Drahi, and its $6.3 billion sale of its French towers to Cellnex; The Special Committee of the Board of Athene in Athene's $11 billion merger with Apollo; Stonepeak's $8.1 billion acquisition of Astound Broadband from TPG; M&T Bank's $7.6 billion acquisition of People's United Financial; Kimco Realty in its $5.9 billion merger with Weingarten Realty Investors; G4S on the 3.8 billion recommended cash offer from Allied Universal; Natixis in the (euro)3.7 billion acquisition of the remaining 29.3% stake in the company by BPCE; Goodyear Tire & Rubber's $2.5 billion acquisition of Cooper Tire & Rubber; Servier's $2.0 billion acquisition of Agios Pharmaceuticals' oncology business; and Five Prime Therapeutics' $1.9 billion sale to Amgen.

Lazard has one of the world's preeminent restructuring practices, with a long track record of successfully advising businesses and governments. During and since the first quarter of 2021, we have been engaged in a broad range of highly visible and complex restructuring and debt advisory assignments for debtors or creditors, including roles involving: Abengoa; AccorInvest; Assured Guaranty in connection with Puerto Rico's restructuring; Belk; Cinepolis; CorpGroup; Debenhams; Diamond Offshore Drilling; Europcar; Express; Garrett Motion; NMC Health; Peabody; Premier Oil; Seadrill Limited; Ursa Piceance; and Valaris.

Our Capital and Shareholder Advisory practices remain 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 first quarter of 2021, or continued to advise or completed since March 31, 2021, please visit our website at www.lazard.com/businesses/transactions.

Asset Management

In the text portion of this press release, we present our Asset Management results as 1) Management fees and other revenue, and 2) Incentive fees.

Asset Management operating revenue was $328 million for the first quarter of 2021, 22% higher than the first quarter of 2020.

Management fees and other revenue was $295 million, 10% higher than the first quarter of 2020, and 4% higher than the fourth quarter of 2020.

Average AUM for the first quarter of 2021 was $261 billion, 18% higher than the first quarter of 2020, and 6% higher than the fourth quarter of 2020.

AUM as of March 31, 2021, was $265 billion, up 2% from December 31, 2020, and up 37% from March 31, 2020. The sequential increase from December 31, 2020 was driven by market appreciation of $12.5 billion, partially offset by foreign exchange depreciation of $4.6 billion and net outflows of $1.7 billion.

Incentive fees during the period were $33 million, compared to $2 million for the first quarter of 2020.

OPERATING EXPENSES

Compensation and Benefits

In managing compensation and benefits expense, we focus on annual awarded compensation (cash compensation and benefits plus deferred incentive compensation with respect to the applicable year, net of estimated future forfeitures and excluding charges). We believe annual awarded compensation reflects the actual annual compensation cost more accurately than the GAAP measure of compensation cost, which includes applicable-year cash compensation and the amortization of deferred incentive compensation principally attributable to previous years' deferred compensation. We believe that by managing our business using awarded compensation with a consistent deferral policy, we can better manage our compensation costs, increase our flexibility in the future and build shareholder value over time.

For the first quarter of 2021, we accrued adjusted compensation and benefits expense1 at an adjusted compensation ratio of 59.5%, compared to the first-quarter 2020 ratio of 60.0%. This resulted in $385 million of compensation and benefits expense, compared to $338 million for the first quarter of 2020.

We manage our compensation and benefits expense based on awarded compensation with a consistent deferral policy. We take a disciplined approach to compensation, and our goal is 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, with consistent deferral policies.

Non-Compensation Expense

For the first quarter of 2021, adjusted non-compensation expense1 was $102 million, 9% lower than the first quarter of 2020, primarily reflecting lower travel and business development expenses.

The ratio of adjusted non-compensation expense to operating revenue was 15.8% for the first quarter of 2021, compared to 20.0% for the first quarter of 2020.

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

TAXES

The provision for taxes, on an adjusted basis1, was $41 million for the first quarter of 2021. The effective tax rate, on an adjusted basis, was 28.6% for the first quarter of 2021, compared to 28.8% for the first quarter of 2020 and 20.2% for the full year of 2020.

CAPITAL MANAGEMENT AND BALANCE SHEET

Our primary capital management goals include managing debt and returning capital to shareholders through dividends and share repurchases.

In the first quarter of 2021, Lazard returned $237 million to shareholders, which included: $49 million in dividends; $123 million in share repurchases of our common stock; and $65 million in satisfaction of employee tax obligations in lieu of share issuances upon vesting of equity grants.

As of March 31, 2021, we have repurchased 2.9 million shares of our common stock at an average price of $42.30 per share.

On April 29, 2021, our Board of Directors authorized additional share repurchases of up to $300 million, which expires as of December 31, 2022, bringing our total outstanding share repurchase authorization to $439 million.

On April 29, 2021, Lazard declared a quarterly dividend of $0.47 per share on its outstanding common stock. The dividend is payable on May 21, 2021, to stockholders of record on May 10, 2021.

Lazard's financial position remains strong. As of March 31, 2021, our cash and cash equivalents were $975 million, and stockholders' equity related to Lazard's interests was $765 million.

***

CONFERENCE CALL

Lazard will host a conference call at 8:00 a.m. EDT on Friday, April 30, 2021, to discuss the company's financial results for the first quarter of 2021. 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) 458-4121 (U.S. and Canada) or +1 (323) 794-2093 (outside of the U.S. and Canada), 15 minutes prior to the start of the call.

A replay of the conference call will be available by 10:00 a.m. EDT, Friday, April 30, 2021, via the Lazard Investor Relations website at www.lazard.com, or by dialing 1 (888) 203-1112 (U.S. and Canada) or +1 (719) 457-0820 (outside of the U.S. and Canada). The replay access code is 6389433.

ABOUT LAZARD

Lazard, one of the world's preeminent financial advisory and asset management firms, operates from more than 40 cities across 25 countries in North America, Europe, Asia, Australia, Central and South America. With origins dating to 1848, the firm provides advice on mergers and acquisitions, strategic matters, restructuring and capital structure, capital raising and corporate finance, as well as asset management services to corporations, partnerships, institutions, governments and individuals. For more information on Lazard, please visit www.lazard.com. Follow Lazard at @Lazard.

***

Cautionary Note Regarding Forward-Looking Statements:

This press release contains forward-looking statements. In some cases, you can identify these statements by forward-looking words such as "may", "might", "will", "should", "could", "would", "expect", "plan", "anticipate", "believe", "estimate", "predict", "potential", "target," "goal", or "continue", and the negative of these terms and other comparable terminology. These forward-looking statements, which are subject to known and unknown risks, uncertainties and assumptions about us, may include projections of our future financial performance based on our growth strategies, business plans and initiatives and anticipated trends in our business. These forward-looking statements, including with respect to the current COVID-19 pandemic, are only predictions based on our current expectations and projections about future events. There are important factors that could cause our actual results, level of activity, performance or achievements to differ materially from the results, level of activity, performance or achievements expressed or implied by these forward-looking statements.

These factors include, but are not limited to, those discussed in our Annual Report on Form 10-K under Item 1A "Risk Factors," and also discussed from time to time in our reports on Forms 10-Q and 8-K, including the following:

* 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.

Although we believe the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, level of activity, performance or achievements. Neither we nor any other person assumes responsibility for the accuracy or completeness of any of these forward-looking statements. You should not rely upon forward-looking statements as predictions of future events. We are under no duty to update any of these forward-looking statements after the date of this release to conform our prior statements to actual results or revised expectations and we do not intend to do so.

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 Frres Gestion SAS. Investors can link to Lazard and its operating company websites through www.lazard.com.

***

ENDNOTES

1 A 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.

2 First-quarter 2021 adjusted results1 exclude pre-tax charges of $1.4 million relating to office space reorganization and $9.6 million relating to expenses associated with restructuring and closing of certain offices. On a U.S. GAAP basis, these resulted in a net charge of $13.9 million, or $0.12 (diluted) per share, in the first quarter of 2021.

LAZ-EPE

LAZARD LTDUNAUDITED CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS(U.S. GAAP) Three Months Ended % Change From

March 31, December March 31, December March 31, 31, 31,

($ in thousands, 2021 2020 2020 2020 2020except per sharedata) Total revenue $679,904 $898,326 $558,157 (24%) 22%

Interest expense (19,797) (20,172) (20,143)

Net revenue 660,107 878,154 538,014 (25%) 23%

Operating expenses:Compensation and 401,546 524,736 319,755 (23%) 26%benefits Occupancy and 34,748 33,592 32,198equipmentMarketing and 6,651 8,161 20,186businessdevelopmentTechnology and 33,670 36,100 31,358informationservicesProfessional 14,948 20,330 14,545servicesFund administration 29,279 26,431 26,390and outsourcedservicesAmortization ofintangible assets 15 436 446related toacquisitionsOther 4,960 11,308 9,039

Subtotal 124,271 136,358 134,162 (9%) (7%)

Benefit pursuant to - (439) -tax receivableagreementOperating expenses 525,817 660,655 453,917 (20%) 16%

Operating income 134,290 217,499 84,097 (38%) 60%

Provision for 43,464 22,729 25,766 91% 69%income taxesNet income 90,826 194,770 58,331 (53%) 56%

Net income (loss)attributable to 3,526 4,881 (5,691)noncontrollinginterestsNet income $87,300 $189,889 $64,022 (54%) 36%attributable toLazard Ltd Attributable toLazard Ltd CommonStockholders:Weighted averageshares outstanding:Basic 107,291,560 107,316,315 106,303,962 0% 1%

Diluted 115,822,294 115,144,030 114,120,179 1% 1%

Net income pershare:Basic $0.80 $1.73 $0.59 (54%) 36%

Diluted $0.75 $1.64 $0.56 (54%) 34%

LAZARD LTDUNAUDITED CONDENSED CONSOLIDATEDSTATEMENT OF FINANCIAL CONDITION(U.S. GAAP)March 31,

December 31,

($ in thousands)2021

2020

ASSETSCash and cash equivalents$974,696

$1,389,876

Deposits with banks and short-term investments1,014,145

1,134,463

Restricted cash615,090

44,488

Receivables739,615

743,141

Investments782,351

658,532

Goodwill and other intangible assets381,947

384,071

Operating lease right-of-use assets492,089

513,923

Deferred tax assets506,836

538,448

Other assets702,790

564,919

Total Assets$6,209,559

$5,971,861

LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS & STOCKHOLDERS' EQUITYLiabilitiesDeposits and other customer payables$1,239,716

$1,201,150

Accrued compensation and benefits485,739

734,544

Operating lease liabilities582,178

606,963

Tax receivable agreement obligation211,236

221,451

Senior debt1,683,362

1,682,741

Other liabilities565,629

525,579

Total liabilities4,767,860

4,972,428

Commitments and contingenciesRedeemable noncontrolling interests575,000

-

Stockholders' equityPreferred stock, par value $.01 per share-

-

Common stock, par value $.01 per share1,128

1,128

Additional paid-in capital-

135,439

Retained earnings1,278,907

1,295,386

Accumulated other comprehensive loss, net of tax(255,711

)

(238,368)

Subtotal1,024,324

1,193,585

Class A common stock held by subsidiaries, at cost(259,319

)

(281,813)

Total Lazard Ltd stockholders' equity765,005

911,772

Noncontrolling interests101,694

87,661

Total stockholders' equity866,699

999,433

Total liabilities, redeemable noncontrolling interests and stockholders' equity$6,209,559

$5,971,861

LAZARD LTDUNAUDITED CONDENSED CONSOLIDATEDSTATEMENT OF FINANCIAL CONDITION(U.S. GAAP) March 31, December 31,

($ in thousands) 2021 2020

ASSETS Cash and cash equivalents $974,696 $1,389,876

Deposits with banks and short-term investments 1,014,145 1,134,463

Restricted cash 615,090 44,488

Receivables 739,615 743,141

Investments 782,351 658,532

Goodwill and other intangible assets 381,947 384,071

Operating lease right-of-use assets 492,089 513,923

Deferred tax assets 506,836 538,448

Other assets 702,790 564,919

Total Assets $6,209,559 $5,971,861

LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS & STOCKHOLDERS' EQUITY LiabilitiesDeposits and other customer payables $1,239,716 $1,201,150

Accrued compensation and benefits 485,739 734,544

Operating lease liabilities 582,178 606,963

Tax receivable agreement obligation 211,236 221,451

Senior debt 1,683,362 1,682,741

Other liabilities 565,629 525,579

Total liabilities 4,767,860 4,972,428

Commitments and contingenciesRedeemable noncontrolling interests 575,000 -

Stockholders' equityPreferred stock, par value $.01 per share - -

Common stock, par value $.01 per share 1,128 1,128

Additional paid-in capital - 135,439

Retained earnings 1,278,907 1,295,386

Accumulated other comprehensive loss, net of tax (255,711 ) (238,368)

Subtotal 1,024,324 1,193,585

Class A common stock held by subsidiaries, at cost (259,319 ) (281,813)

Total Lazard Ltd stockholders' equity 765,005 911,772

Noncontrolling interests 101,694 87,661

Total stockholders' equity 866,699 999,433

Total liabilities, redeemable noncontrolling $6,209,559 $5,971,861interests and stockholders' equityLAZARD LTDSELECTED SUMMARY FINANCIAL INFORMATION (a)(Non-GAAP - unaudited)Three Months Ended% Change FromMarch 31,

December 31,

March 31,

December 31,

March 31,

($ in thousands, except per share data)2021

2020

2020

2020

2020

Revenues:Financial Advisory$317,300

$508,626

$294,773

(38%)

8%

Asset Management327,914

336,152

268,953

(2%)

22%

Corporate2,648

3,990

(915)

(34%)

NM

Operating revenue (b)$647,862

$848,768

$562,811

(24%)

15%

Expenses:Adjusted compensation and benefits expense (c)$385,478

$497,260

$337,686

(22%)

14%

Ratio of adjusted compensation to operating revenue59.5%

58.6%

60.0%

Non-compensation expense (d)$102,480

$116,568

$112,632

(12%)

(9%)

Ratio of non-compensation to operating revenue15.8%

13.7%

20.0%

Earnings:Earnings from operations (e)$159,904

$234,940

$112,493

(32%)

42%

Operating margin (f)24.7%

27.7%

20.0%

Adjusted net income (g)$101,221

$192,444

$66,552

(47%)

52%

Diluted adjusted net income per share$0.87

$1.66

$0.58

(48%)

50%

Diluted weighted average shares (h)115,857,922

115,831,033

114,160,044

0%

1%

Effective tax rate (i)28.6%

11.1%

28.8%

LAZARD LTDSELECTED SUMMARY FINANCIAL INFORMATION (a)(Non-GAAP - unaudited) Three Months Ended % Change From March 31, December March 31, December March 31, 31, 31,

($ in thousands, 2021 2020 2020 2020 2020except per sharedata) Revenues: Financial $317,300 $508,626 $294,773 (38%) 8%AdvisoryAsset Management 327,914 336,152 268,953 (2%) 22%

Corporate 2,648 3,990 (915) (34%) NM

Operating $647,862 $848,768 $562,811 (24%) 15%revenue (b) Expenses: Adjustedcompensation and $385,478 $497,260 $337,686 (22%) 14%benefits expense(c)Ratio ofadjusted 59.5% 58.6% 60.0%compensation tooperatingrevenue Non-compensation $102,480 $116,568 $112,632 (12%) (9%)expense (d)Ratio ofnon-compensation 15.8% 13.7% 20.0%to operatingrevenue Earnings: Earnings from $159,904 $234,940 $112,493 (32%) 42%operations (e)Operating margin 24.7% 27.7% 20.0%(f) Adjusted net $101,221 $192,444 $66,552 (47%) 52%income (g) Diluted adjusted $0.87 $1.66 $0.58 (48%) 50%net income pershare Diluted weighted 115,857,922 115,831,033 114,160,044 0% 1%average shares(h) Effective tax 28.6% 11.1% 28.8%rate (i) This presentation includes non-U.S. GAAP ("non-GAAP") measures. Our non-GAAP measures are not meant to be considered in isolation or as a substitute for the corresponding U.S. GAAP measures, and should be read only in conjunction with our consolidated financial statements prepared in accordance with U.S. GAAP. For a detailed explanation of the adjustments made to the corresponding U.S. GAAP measures, see Reconciliation of U.S. GAAP to Selected Summary Financial Information and Notes to Financial Schedules.This presentation includes non-U.S. GAAP ("non-GAAP") measures. Our non-GAAPmeasures are not meant to be considered in isolation or as a substitute forthe corresponding U.S. GAAP measures, and should be read only in conjunctionwith our consolidated financial statements prepared in accordance with U.S.GAAP. For a detailed explanation of the adjustments made to thecorresponding U.S. GAAP measures, see Reconciliation of U.S. GAAP toSelected Summary Financial Information and Notes to Financial Schedules.LAZARD LTDASSETS UNDER MANAGEMENT ("AUM")(unaudited)($ in millions)As of

Variance

March 31,

December 31,

March 31,

1Q 2021 vs

2021

2020

2020

Qtr to Qtr

1Q 2020

Equity:Emerging Markets$32,700

$33,254

$27,716

(1.7%)

18.0%

Global58,560

56,246

39,094

4.1%

49.8%

Local51,246

48,672

37,496

5.3%

36.7%

Multi-Regional72,953

71,560

50,335

1.9%

44.9%

Total Equity215,459

209,732

154,641

2.7%

39.3%

Fixed Income:Emerging Markets12,708

13,651

11,424

(6.9%)

11.2%

Global14,177

11,962

9,100

18.5%

55.8%

Local5,556

5,600

5,421

(0.8%)

2.5%

Multi-Regional11,808

12,571

8,376

(6.1%)

41.0%

Total Fixed Income44,249

43,784

34,321

1.1%

28.9%

Alternative Investments3,141

2,748

1,902

14.3%

65.1%

Private Equity1,324

1,420

1,406

(6.8%)

(5.8%)

Cash Management679

958

778

(29.1%)

(12.7%)

Total AUM$264,852

$258,642

$193,048

2.4%

37.2%

Year Ended

Three Months Ended March 31,

December 31,

2021

2020

2020

AUM - Beginning of Period$258,642

$248,239

$248,239

Net Flows(1,679)

(4,913)

(11,368)

Market and foreign exchange appreciation (depreciation)7,889

(50,278)

21,771

AUM - End of Period$264,852

$193,048

$258,642

Average AUM$261,463

$221,534

$225,361

% Change in average AUM18.0%

LAZARD LTDASSETS UNDER MANAGEMENT ("AUM")(unaudited)($ in millions) As of Variance

March December March 1Q 2021 31, 31, 31, vs

2021 2020 2020 Qtr to 1Q 2020 Qtr

Equity:Emerging Markets $32,700 $33,254 $27,716 (1.7%) 18.0%

Global 58,560 56,246 39,094 4.1% 49.8%

Local 51,246 48,672 37,496 5.3% 36.7%

Multi-Regional 72,953 71,560 50,335 1.9% 44.9%

Total Equity 215,459 209,732 154,641 2.7% 39.3%

Fixed Income:Emerging Markets 12,708 13,651 11,424 (6.9%) 11.2%

Global 14,177 11,962 9,100 18.5% 55.8%

Local 5,556 5,600 5,421 (0.8%) 2.5%

Multi-Regional 11,808 12,571 8,376 (6.1%) 41.0%

Total Fixed Income 44,249 43,784 34,321 1.1% 28.9%

Alternative Investments 3,141 2,748 1,902 14.3% 65.1%

Private Equity 1,324 1,420 1,406 (6.8%) (5.8%)

Cash Management 679 958 778 (29.1%) (12.7%)

Total AUM $264,852 $258,642 $193,048 2.4% 37.2%

Year Ended

Three Months Ended December March 31, 31,

2021 2020 2020

AUM - Beginning of Period $258,642 $248,239 $248,239

Net Flows (1,679) (4,913) (11,368)

Market and foreign 7,889 (50,278) 21,771exchange appreciation(depreciation) AUM - End of Period $264,852 $193,048 $258,642

Average AUM $261,463 $221,534 $225,361

% Change in average AUM 18.0%

Note: Average AUM generally represents the average of the monthly ending AUM balances for the period.Note: Average AUM generally represents the average of the monthly ending AUMbalances for the period.LAZARD LTDRECONCILIATION OF U.S. GAAP TO SELECTED SUMMARY FINANCIAL INFORMATION (a)(unaudited)Three Months Ended

March 31,

December 31,

March 31,

($ in thousands, except per share data)2021

2020

2020

Operating RevenueNet revenue - U.S. GAAP Basis$660,107

$878,154

$538,014

Adjustments:(Revenue) loss related to noncontrolling interests (j)(6,361)

(8,054)

2,772

(Gains) losses related to Lazard Fund Interests ("LFI") and other similar arrangements(7,487)

(25,207)

19,637

Distribution fees, reimbursable deal costs, bad debt expense and other (k)(16,710)

(14,647)

(16,384)

Interest expense18,313

18,522

18,772

Operating revenue, as adjusted (b)$647,862

$848,768

$562,811

Compensation and Benefits ExpenseCompensation and benefits expense - U.S. GAAP Basis$401,546

$524,736

$319,755

Adjustments:(Charges) credits pertaining to LFI and other similar arrangements(7,487)

(25,207)

19,637

Expenses associated with restructuring and closing of certain offices (l)(6,623)

-

-

Compensation related to noncontrolling interests (j)(1,958)

(2,269)

(1,706)

Compensation and benefits expense, as adjusted (c)$385,478

$497,260

$337,686

Non-Compensation ExpenseNon-compensation expense - Subtotal - U.S. GAAP Basis$124,271

$136,358

$134,162

Adjustments:Expenses related to office space reorganization (m)(1,416)

(4,184)

(3,664)

Distribution fees, reimbursable deal costs, bad debt expense and other (k)(16,710)

(14,647)

(16,384)

Amortization of intangible assets related to acquisitions(15)

(436)

(446)

Expenses associated with restructuring and closing of certain offices (l)(2,971)

-

-

Non-compensation expense related to noncontrolling interests (j)(679)

(523)

(1,036)

Non-compensation expense, as adjusted (d)$102,480

$116,568

$112,632

Pre-Tax Income and Earnings From OperationsOperating Income - U.S. GAAP Basis$134,290

$217,499

$84,097

Adjustments:Reduction of tax receivable agreement obligation ("TRA")-

(439)

-

Expenses related to office space reorganization (m)1,416

4,184

3,664

Expenses associated with restructuring and closing of certain offices (l)9,594

-

-

Net (income) loss related to noncontrolling interests (j)(3,526)

(4,881)

5,691

Pre-tax income, as adjusted141,774

216,363

93,452

Interest expense18,313

18,522

18,772

Expenses associated with Special Purpose Acquisition Company and amortization (LAZ only)(183)

55

269

Earnings from operations, as adjusted (e)$159,904

$234,940

$112,493

Net Income attributable to Lazard LtdNet income attributable to Lazard Ltd - U.S. GAAP Basis$87,300

$189,889

$64,022

Adjustments:Reduction of tax receivable agreement obligation ("TRA")-

(439)

-

Expenses related to office space reorganization (m)1,416

4,184

3,664

Expenses associated with restructuring and closing of certain offices (l)9,594

-

-

Tax expense (benefit) allocated to adjustments2,911

(1,190)

(1,134)

Net income, as adjusted (g)$101,221

$192,444

$66,552

Diluted Weighted Average Shares OutstandingDiluted Weighted Average Shares Outstanding - U.S. GAAP Basis115,822,294

115,144,030

114,120,179

Adjustment: participating securities including profits interest participation rights35,628

687,003

39,865

Diluted Weighted Average Shares Outstanding, as adjusted (h)115,857,922

115,831,033

114,160,044

Diluted net income per share:U.S. GAAP Basis$0.75

$1.64

$0.56

Non-GAAP Basis, as adjusted$0.87

$1.66

$0.58

LAZARD LTDRECONCILIATION OF U.S. GAAP TO SELECTED SUMMARY FINANCIAL INFORMATION (a)(unaudited) Three Months Ended

March 31, December March 31, 31,

($ in thousands, except per share 2021 2020 2020data) Operating RevenueNet revenue - U.S. GAAP Basis $660,107 $878,154 $538,014

Adjustments:(Revenue) loss related to (6,361) (8,054) 2,772noncontrolling interests (j)(Gains) losses related to Lazard (7,487) (25,207) 19,637Fund Interests ("LFI") and othersimilar arrangementsDistribution fees, reimbursable (16,710) (14,647) (16,384)deal costs, bad debt expense andother (k)Interest expense 18,313 18,522 18,772

Operating revenue, as adjusted (b) $647,862 $848,768 $562,811

Compensation and Benefits ExpenseCompensation and benefits expense - $401,546 $524,736 $319,755U.S. GAAP Basis Adjustments:(Charges) credits pertaining to LFI (7,487) (25,207) 19,637and other similar arrangementsExpenses associated with (6,623) - -restructuring and closing ofcertain offices (l)Compensation related to (1,958) (2,269) (1,706)noncontrolling interests (j) Compensation and benefits expense, $385,478 $497,260 $337,686as adjusted (c) Non-Compensation ExpenseNon-compensation expense - Subtotal $124,271 $136,358 $134,162- U.S. GAAP Basis Adjustments:Expenses related to office space (1,416) (4,184) (3,664)reorganization (m)Distribution fees, reimbursable (16,710) (14,647) (16,384)deal costs, bad debt expense andother (k)Amortization of intangible assets (15) (436) (446)related to acquisitionsExpenses associated with (2,971) - -restructuring and closing ofcertain offices (l)Non-compensation expense related to (679) (523) (1,036)noncontrolling interests (j) Non-compensation expense, as $102,480 $116,568 $112,632adjusted (d) Pre-Tax Income and Earnings From OperationsOperating Income - U.S. GAAP Basis $134,290 $217,499 $84,097

Adjustments:Reduction of tax receivable - (439) -agreement obligation ("TRA")Expenses related to office space 1,416 4,184 3,664reorganization (m)Expenses associated with 9,594 - -restructuring and closing ofcertain offices (l)Net (income) loss related to (3,526) (4,881) 5,691noncontrolling interests (j)Pre-tax income, as adjusted 141,774 216,363 93,452

Interest expense 18,313 18,522 18,772

Expenses associated with Special (183) 55 269Purpose Acquisition Company andamortization (LAZ only)Earnings from operations, as $159,904 $234,940 $112,493adjusted (e) Net Income attributable to Lazard LtdNet income attributable to Lazard $87,300 $189,889 $64,022Ltd - U.S. GAAP BasisAdjustments:Reduction of tax receivable - (439) -agreement obligation ("TRA")Expenses related to office space 1,416 4,184 3,664reorganization (m)Expenses associated with 9,594 - -restructuring and closing ofcertain offices (l)Tax expense (benefit) allocated to 2,911 (1,190) (1,134)adjustments Net income, as adjusted (g) $101,221 $192,444 $66,552

Diluted Weighted Average Shares OutstandingDiluted Weighted Average Shares 115,822,294 115,144,030 114,120,179Outstanding - U.S. GAAP BasisAdjustment: participating 35,628 687,003 39,865securities including profitsinterest participation rights Diluted Weighted Average Shares 115,857,922 115,831,033 114,160,044Outstanding, as adjusted (h) Diluted net income per share:U.S. GAAP Basis $0.75 $1.64 $0.56

Non-GAAP Basis, as adjusted $0.87 $1.66 $0.58

This presentation includes non-GAAP measures. Our non-GAAP measures are not meant to be considered in isolation or as a substitute for comparable 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 comparable U.S. GAAP measures, see Notes to Financial Schedules.This presentation includes non-GAAP measures. Our non-GAAP measures are notmeant to be considered in isolation or as a substitute for comparable U.S. GAAPmeasures, and should be read only in conjunction with our consolidatedfinancial statements prepared in accordance with U.S. GAAP. For a detailedexplanation of the adjustments made to comparable U.S. GAAP measures, see Notesto Financial Schedules.See Notes to Financial SchedulesSee Notes to Financial SchedulesLAZARD LTDRECONCILIATION OF NON-COMPENSATION U.S. GAAP TO ADJUSTED (a)(unaudited)Three Months Ended

March 31,

December 31,

March 31,

($ in thousands)2021

2020

2020

Non-compensation expense - U.S. GAAP Basis:Occupancy and equipment$34,748

$33,592

$32,198

Marketing and business development6,651

8,161

20,186

Technology and information services33,670

36,100

31,358

Professional services14,948

20,330

14,545

Fund administration and outsourced services29,279

26,431

26,390

Amortization of intangible assets related to acquisitions15

436

446

Other4,960

11,308

9,039

Non-compensation expense - Subtotal - U.S. GAAP Basis$124,271

$136,358

$134,162

Non-compensation expense - Adjustments:Occupancy and equipment (j) (l) (m)($4,185)

($3,419)

($3,733)

Marketing and business development (j) (k) (l)(205)

(383)

(2,691)

Technology and information services (j) (k) (l)(14)

155

(435)

Professional services (j) (k) (l) (m)(1,461)

(4,101)

(1,778)

Fund administration and outsourced services (j) (k)(15,270)

(12,114)

(12,120)

Amortization of intangible assets related to acquisitions(15)

(436)

(446)

Other (j) (k) (m)(641)

508

(327)

Subtotal Non-compensation adjustments($21,791)

($19,790)

($21,530)

Non-compensation expense, as adjusted:Occupancy and equipment$30,563

$30,173

$28,465

Marketing and business development6,446

7,778

17,495

Technology and information services33,656

36,255

30,923

Professional services13,487

16,229

12,767

Fund administration and outsourced services14,009

14,317

14,270

Amortization of intangible assets related to acquisitions-

-

-

Other4,319

11,816

8,712

Non-compensation expense, as adjusted (d)$102,480

$116,568

$112,632

LAZARD LTDRECONCILIATION OF NON-COMPENSATION U.S. GAAP TO ADJUSTED (a)(unaudited) Three Months Ended

March 31, December March 31, 31,

($ in thousands) 2021 2020 2020

Non-compensation expense - U.S. GAAP Basis:Occupancy and equipment $34,748 $33,592 $32,198

Marketing and business development 6,651 8,161 20,186

Technology and information services 33,670 36,100 31,358

Professional services 14,948 20,330 14,545

Fund administration and outsourced services 29,279 26,431 26,390

Amortization of intangible assets related 15 436 446to acquisitionsOther 4,960 11,308 9,039

Non-compensation expense - Subtotal - U.S. $124,271 $136,358 $134,162GAAP Basis Non-compensation expense - Adjustments:Occupancy and equipment (j) (l) (m) ($4,185) ($3,419) ($3,733)

Marketing and business development (j) (k) (205) (383) (2,691)(l)Technology and information services (j) (k) (14) 155 (435)(l)Professional services (j) (k) (l) (m) (1,461) (4,101) (1,778)

Fund administration and outsourced services (15,270) (12,114) (12,120)(j) (k)Amortization of intangible assets related (15) (436) (446)to acquisitionsOther (j) (k) (m) (641) 508 (327)

Subtotal Non-compensation adjustments ($21,791) ($19,790) ($21,530)

Non-compensation expense, as adjusted:Occupancy and equipment $30,563 $30,173 $28,465

Marketing and business development 6,446 7,778 17,495

Technology and information services 33,656 36,255 30,923

Professional services 13,487 16,229 12,767

Fund administration and outsourced services 14,009 14,317 14,270

Amortization of intangible assets related - - -to acquisitionsOther 4,319 11,816 8,712

Non-compensation expense, as adjusted (d) $102,480 $116,568 $112,632

This presentation includes non-GAAP measures. Our non-GAAP measures are not meant to be considered in isolation or as a substitute for comparable 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 comparable U.S. GAAP measures, see Notes to Financial Schedules.This presentation includes non-GAAP measures. Our non-GAAP measures are notmeant to be considered in isolation or as a substitute for comparable U.S. GAAPmeasures, and should be read only in conjunction with our consolidatedfinancial statements prepared in accordance with U.S. GAAP. For a detailedexplanation of the adjustments made to comparable U.S. GAAP measures, see Notesto Financial Schedules.See Notes to Financial Schedules View source version on businesswire.com: https://www.businesswire.com/news/home/20210430005115/en/

CONTACT: Media Contact: Judi Frost Mackey +1 212 632 1428 judi.mackey@lazard.com

CONTACT: Investor Contact: Alexandra Deignan +1 212 632 6886 alexandra.deignan@lazard.com