Lazard, Inc. · NYSE:LAZ

Lazard — Goldman Sachs Financial Services Conference 2012

21 slides from Lazard's conference presentation, December 2012

  1. Slide 1: Goldman Sachs Financial Services Conference

    Goldman Sachs Financial Services Conference December 2012 0

  2. Slide 2: Disclaimer

    Disclaimer This presentation contains certain statements, estimates and forecasts with respect to future performance and events. These statements, estimates and forecasts are “forward-looking statements.” In some cases, forward- looking statements can be identified by the use of forward-looking term

  3. Slide 3: Advice-Driven Model with Minimal Capital Needs

    Advice-Driven Model with Minimal Capital Needs FINANCIAL ADVISORY ASSET MANAGEMENT  The leading global  World class global asset independent advisor manager: $160bn in AUM1  World leader in Restructuring  Predominantly institutional and Sovereign Advisory  Capital Structure Advisory  Diversifi

  4. Slide 4: Global Network: Greater Opportunities for Clients

    Global Network: Greater Opportunities for Clients 3

  5. Slide 5: Global Network: Greater Opportunities for Clients

    Global Network: Greater Opportunities for Clients = Financial Advisory 4

  6. Slide 6: Global Network: Greater Opportunities for Clients

    Global Network: Greater Opportunities for Clients = Financial Advisory = Asset Management 5

  7. Slide 7: Competitive Advantage

    Competitive Advantage INDEPENDENT GLOBAL PEOPLE AND ADVICE NETWORK PERFORMANCE 6

  8. Slide 8: Driving Shareholder Value

    Driving Shareholder Value REVENUE GROWTH ENHANCED Shareholder PROFITABILITY Value DIVIDENDS & REPURCHASES 7

  9. Slide 9: Operating Revenue Near Peak Level

    Operating Revenue Near Peak Level OPERATING REVENUE ($ in millions) $1,958 $1,955 $1,875 $1,841 $1,653 $1,586 $1,522 $1,329 1 2005 2006 2007 2008 2009 2010 2011 LTM Financial Advisory Asset Management 1 Latest twelve months through September 30, 2012 8

  10. Slide 10: Advisory Revenue Ranks Among Largest Firms

    Advisory Revenue Ranks Among Largest Firms % OF TOTAL ($ in millions) LTM1 ADVISORY REVENUE REVENUE 2 Goldman Sachs $1,937 7% JP Morgan Chase $1,423 3% Morgan Stanley $1,321 5% Bank of America $1,037 2% Lazard $1,000 54% 3 Credit Suisse $974 6% 3 Deutsche Bank $768 4% 3 UBS $765 6% Citigroup $664 3%

  11. Slide 11: Gaining Share of Advisory Revenue

    Gaining Share of Advisory Revenue PEAK VS CURRENT FEE LEVELS Advisory Fees Multiple of Lazard ($ in millions) Advisory Fees 4,500 3.4x 3.5x 4,000 3.0 3,500 2.5 3,000 2.0x 2,500 1.8x 2.0 1.8x 2,000 1.9x 1.5 1,500 1.3x 1.4x 1.0x 1.0 1,000 0.5 500 0 0.0 Lazard Goldman Morgan JPMorgan Bank of America Sa

  12. Slide 12: Asset Management Growth

    Asset Management Growth ASSETS UNDER MANAGEMENT1 ($ in billions) $160bn $160 $120 $80 $40 2005 2006 2007 2008 2009 2010 2011 3Q 2012 1 Year-end assets under management except for 2012, which is period-end assets under management as of September 30, 2012 11

  13. Slide 13: Expanding Existing Platforms

    Expanding Existing Platforms PLATFORMS STRATEGIES Global Multi-Asset Strategy International Strategic ACWI ex-U.S. Global Equity Global Controlled Volatility Global/International Real Estate Global Trend Emerging Market Multi-Strategy Emerging Market Emerging Market Small Cap Equity Emerging Market

  14. Slide 14: Well Positioned for Revenue Growth

    Well Positioned for Revenue Growth FINANCIAL ADVISORY ASSET MANAGEMENT  Global infrastructure already  Strength in local, emerging, built out and international markets  A leader in cross-border M&A  Pattern of performance across  Sovereign and capital investment platforms structure advisory  P

  15. Slide 15: Enhancing Profitability: Targets

    Enhancing Profitability: Targets OPERATING PROFITABILITY 25% MARGIN IN 20141 Non-compensation Compensation expense expense 16% to 20% ratio Mid- to high- 50s% ratio over the cycle1 over the cycle1 1 Targets assume business activity at current levels 14

  16. Slide 16: Cost Saving Initiatives

    Cost Saving Initiatives OPTIMIZE  Streamline support functions STRUCTURE  Leverage resources firmwide REALIGN  Reduce in areas of low return INVESTMENTS  Allocate to higher growth potential RENEGOTIATE  Third parties globally CONTRACTS  Data services, real estate, etc. 15

  17. Slide 17: Cost Saving Initiatives: Expected Impact

    Cost Saving Initiatives: Expected Impact ANNUAL SAVINGS IMPLEMENTATION COSTS  Approximately $125  Approximately $110 million million from expense base to $130 million  $40 million in non-  Significant majority to be compensation expense recognized this year  $85 million in  Remainder in first

  18. Slide 18: Return of Capital to Shareholders

    Return of Capital to Shareholders AVERAGE TOTAL CAPITAL RETURNED TO SHAREHOLDERS (Dividends and Share Repurchases - $ in millions) $4321 $400 $325 300 200 $156 100 0 1 Average Average YTD 2006-2009 2010-2011 October 2012 1 We have paid $70M to our shareholders for dividends declared in January, Apri

  19. Slide 19: Progress to Date

    Progress to Date 2009 2010 2011 YTD2  Mid- to high- 50s compensation ratio1 67% 62% 62% 60%  Discipline on deferred compensation –     Non-compensation ratio of 16% - 20% 21% 19% 21% 22%  Operating margin of 25% in 20141 12% 20% 17% 18%  Neutralize potential dilution from RSU grants –   

  20. Slide 20: Conclusion

    Conclusion  Creating value for clients and shareholders  Enhancing operating profitability  Generating strong cash flow  Returning capital to shareholders  Better positioned than ever 19

  21. Slide 21: Goldman Sachs Financial Services Conference

    Goldman Sachs Financial Services Conference December 2012 20

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