Lazard Ltd (NYSE: LAZ) Closing Price on 12/7: DCF Upside: 24.9%

Lazard Ltd Founded in 1848 Initial Public Offering: May ,452 employees Offices located in 26 countries, 41 cities

Lazard Ltd Financial Advisory and Asset Management Firm – Asset Management revenue is stable fee-based revenue – Mergers and Acquisitions revenue for volatile with changes economic activity Leads Industry in Strategic Restructuring Assets under management total: 135.8B – Increase of 20% in 2010 Financial Advising to corporations, banks, and high net-worth individuals

Financial Strength Favorable low-risk balance sheet: – $1 Billion cash & cash equivalents on hand – No scheduled long term debt maturities before may of 2015 Quick Ratio: 1.3 Long term debt – Equity: 1.76

Revenue 2 main streams of Revenue Financial Advisory Services & Asset Management Strong network of clients (70 countries)

Financial Advisory Revenue

Restructuring Business $1,241 $1,024 $990$1,121$1,083

Key Financial Ratios vs Competitors RatioLAZGSEVRIndustrySectorS&P 500 P/E yr Revenue Growth 22%-11%19.07%19% --- ROA (5-year AVG) 3.83%NA.86%.37%1.35%6.54% ROE (5-year AVG) 44%NA4.01%.11%9.50%21.24% Total Debt/Equity NA

5-Year Price Chart

Dividend

Analyst Coverage 1-5 ScaleCurrent1 Month ago 1 – Buy54 2 – Outperform Hold66 4 – Underperform Sell00 Mean Rating

Competitive Advantages Financial Advisory and asset management well positioned for revenue growth globally Focused on realizing operating leverage Higher return on equity than competitors Strong financial and liquidity position Low risk balance sheet Able to weather macroeconomic uncertainty

Substantial free cash flow-$403 Million From 2000 to 2007 Lazard saw revenue growth of 56%, – Outperformed global M&A volume which was only 7% Well positioned domestically and internationally for growth across all business lines Revenue dipped from Billion in 2007 before recession to Billion in 2009 Revenue back up to Billion in 2010

Financial Advisory Advantages Largest global independent financial advisory firm Deep reservoir of senior bankers globally – Highly prestigious and well-respected bank Geographical coverage comparable to much larger firms Market leading Restructuring practice Financial Advisory consists of 54% overall revenue

Involved with important government and sovereign assignments – Done consulting work for German government on Sovereign Debt Crisis Asset Management and Restructuring reduces earnings volatility through market cycles Financial advisory growth at Lazard in 2009 was 23%, up 24% in Q Goldman Sachs only 12%, Bank of America 8%, JPM 5%, Citi Group -3%

Diverse Advisory Transactions in over 40 countries in 2010 Over 350 transactions advised on, top 10 clients only made up 17% of revenue Industry and geographic coverage continue to expand 27% Industrials, 18% TMT, 16% consumer, 13% power and energy, 11% healthcare, 8% FIG, 5% Real Estate, 2% Government

Restructuring Practice Market leader, most experienced global team Over 500 restructuring deals over past decade Largest company focused on restructuring, nearly 120 professionals globally Advised on all 12 of the largest bankruptcies in 2009 Advised on 19 of 25 largest bankruptcies since 2009

Asset Management Advantages World class global institution for asset management 52% United States, 48% International Billion assets under management 9.3 Billion net inflow in 2010, 0.8 billion net outflow year to date 2011 Asset management accounts for 46% overall revenue

Future Asset Management Growth First 3 quarters of 2011 has highest operating revenue through asset management Look to win new mandates across broad spectrum of investment strategies around the globe – Introducing more funds to clients increasing fee revenue Provide wider range of investment solutions Expand geographic client base Currently 52% North America, 15% UK, 11% France, 8% Germany, 10% Australia, 3% Japan, 1% Korea

Opportunities for Growth Capital shifts in from developed to developing markets driving growth in advisory and asset management Increase in global demand for expert financial advice Lazard is broadening strategic advisory services, adding more senior level talent – Leveraging reputation to expand market share in M&A space

Expense/Capital Management Focused to grow annual compensation expense at a lower rate than revenue growth Balance sheet optimization Share repurchasing 2010 compensation expense at lowest level since going public

Risks and Opportunities Financial Advisory Business dependent upon macroeconomic conditions Economic uncertainty effects M&A deal flow which hinders revenue growth – Asset Management and Restructuring act as net income stabilizers Pipeline of deals will continue to increase over next five years as global economy grows Lazard is invested in multiple geographic regions, perfectly positioned to benefit from continual globalization of economy Restructuring/bankruptcy revenue steam acts as hedge against economy, increases during poor economic times

Lazard Outlook Overall financial sector experiencing recovery if profitability Price driven down by European and global economic uncertainty Eventually, European debt issues will be resolved, Italy has new Prime Minister with very strong economic background Current conditions optimal for purchase of Lazard Perfectly positioned for both domestic and international growth 52 week high $46.54