Financial Advisory record operating revenue year to date, driven by strength in Europe

Asset Management resilient performance amid challenging market and foreign exchange headwinds

Returned $812 million in capital to shareholders, including a record 17 million shares repurchased year to date

Lazard Ltd (NYSE:LAZ) today reported operating revenue¹ of $724 million for the quarter ended September 30, 2022. Net income, as adjusted², was $106 million, or $1.05 per share (diluted) for the quarter. On a U.S. GAAP basis, third-quarter 2022 net income was $106 million, or $1.06 per share (diluted).

For the first nine months of 2022, net income, as adjusted, was $317 million, or $3.02 per share (diluted). On a U.S. GAAP basis, net income for the first nine months was $315 million, or $3.03 per share (diluted).

"Our record third-quarter revenue reflects the strength of our diversified business model and our commitment to providing innovative client solutions during challenging market conditions," said Kenneth M. Jacobs, Chairman and Chief Executive Officer of Lazard. "We remain focused on helping our clients navigate the uncertainty of the global macroenvironment, while we continue to invest in our business through the cycle, exercise cost discipline and deliver long-term value for shareholders."

($ in millions, except	Quarter Ended			Nine Months Ended
per share data and AUM)	September 30,			September 30,

	2022	2021	%'22-'21	2022	2021	%'22-'21
Net Income
U.S. GAAP	$106	$107	(1%)	$315	$318	(1%)
Per share, diluted	$1.06	$0.94	13%	$3.03	$2.78	9%
Adjusted²	$106	$111	(4%)	$317	$358	(11%)
Per share, diluted	$1.05	$0.98	7%	$3.02	$3.13	(4%)

Operating Revenue¹
Total operating revenue	$724	$702	3%	$2,098	$2,171	(3%)
Financial Advisory	$454	$381	19%	$1,249	$1,170	7%
Asset Management	$263	$311	(15%)	$840	$982	(14%)

AUM ($ in billions)
Period end	$198	$273	(27%)
Average	$212	$278	(24%)	$233	$272	(14%)

Note: Endnotes are on page 7 of this release. A reconciliation of adjusted GAAP to U.S. GAAP is on pages 14-15.

OPERATING REVENUE

Operating revenue¹ was a third-quarter record $724 million for the third quarter of 2022, up 3% from the third quarter of 2021, and $2,098 million for the first nine months of 2022, down 3% from the first nine months of 2021.

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.

For the third quarter of 2022, Financial Advisory operating revenue was a third-quarter record $454 million, 19% higher than the third quarter of 2021.

For the first nine months of 2022, Financial Advisory operating revenue was a record $1,249 million, an increase of 7% from the first nine months of 2021.

During and since the third quarter of 2022, Lazard has been engaged in significant and complex M&A transactions and other strategic advisory assignments globally, including the following (clients are in italics): Intel's joint $30 billion investment with Brookfield in U.S.-based chip factories; Orange's combination with Masmovil in Spain, for a combined value of €18.6 billion; AVEVA Group's $11.6 billion recommended offer from Schneider Electric; Continental Grain (CGC) and its subsidiary Wayne Farms, in CGC's and Cargill's $4.5 billion acquisition of Sanderson Farms; Bungie's $3.6 billion sale to Sony Interactive Entertainment; Saint-Gobain's $2.3 billion acquisition of GCP Applied Technologies; Rolls-Royce's €1.7 billion sale of ITP Aero to a Bain Capital-led consortium; Brewin Dolphins' £1.6 billion sale to Royal Bank of Canada; Obagi's $1.2 billion combination with Waldencast and Milk Makeup; Infrastructure & Energy Alternatives' $1.1 billion sale to MasTec; Aqua Finance's majority sale to Athene and Apollo at a valuation of approximately $1 billion; Investindustrial's $950 million acquisition of a significant portion of TreeHouse Food's Meal Preparation business; Institut Mérieux's partnership with and investment of €833 million in the company by Exor; Germany's Federal Ministry for Economic Affairs and Climate Action on the Federal Republic of Germany's acquisition of a 99% stake in Uniper; KIRKBI's acquisition of BrainPOP; and Kofax's sale to Clearlake Capital Group and TA Associates.

Lazard has one of the world's preeminent restructuring practices. During and since the third quarter of 2022, we have been engaged in a broad range of visible and complex restructuring and debt advisory assignments for debtors or creditors, including roles involving: Bed Bath & Beyond; Brazos Electric Power Cooperative; Corp Group Banking S.A.; Endo; GenapSys and Rockall Energy.

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 third quarter of 2022, or continued to advise or completed since September 30, 2022, 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.

For the third quarter of 2022, Asset Management operating revenue was $263 million, 15% lower than the third quarter of 2021. For the first nine months of 2022, Asset Management operating revenue was $840 million, 14% lower than the first nine months of 2021.

For the third quarter of 2022, management fees and other revenue was $241 million, 20% lower than the third quarter of 2021, and 7% lower than the second quarter of 2022. For the first nine months of 2022, management fees and other revenue was $786 million, 13% lower than the first nine months of 2021.

Average assets under management (AUM) for the third quarter of 2022 was $212 billion, 24% lower than the third quarter of 2021, and 8% lower than the second quarter of 2022. Average AUM for the first nine months of 2022 was $233 billion, 14% lower than the first nine months of 2021.

AUM as of September 30, 2022, was $198 billion, down 9% from June 30, 2022, and down 27% from September 30, 2021. The sequential decrease from June 30, 2022 was driven by market depreciation of $10.3 billion, foreign exchange depreciation of $6.6 billion and net outflows of $2.0 billion.

For the third quarter of 2022, incentive fees were $22 million, compared to $7 million for the third quarter of 2021. For the first nine months of 2022, incentive fees were $54 million, compared to $75 million for the first nine months of 2021.

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), a non-GAAP measure. 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 third quarter of 2022, we accrued compensation and benefits expenseat an adjusted compensation¹ ratio of 60.0%, compared to the third-quarter 2021 ratio of 59.5%. This resulted in $434 million of compensation and benefits expense, compared to $417 million for the third quarter of 2021.

For the first nine months of 2022, adjusted compensation and benefits expense was $1,238 million, compared to $1,292 million for the first nine months of 2021.

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

Adjusted non-compensation expense¹ for the third quarter of 2022, was $128 million, 10% higher than the third quarter of 2021. The increase primarily reflects higher marketing and business development expenses and technology investments. The ratio of adjusted non-compensation expense to operating revenue for the third quarter of 2022 was 17.7%, compared to 16.6% for the third quarter of 2021.

Adjusted non-compensation expense for the first nine months of 2022 was $376 million, 11% higher than the first nine months of 2021. The adjusted non-compensation ratio¹ for the first nine months of 2022 was 17.9%, compared to 15.6% for the first nine months of 2021.

Our goal remains to maintain 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 $36 million for the third quarter and $109 million for the first nine months of 2022. The effective tax rate on the same basis was 25.1% for the third quarter and 25.6% for the first nine months of 2022, compared to 25.1% and 26.2% for the respective 2021 periods.

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 third quarter of 2022, Lazard returned $286 million to shareholders, which included: $46 million in dividends; $237 million in share repurchases of our common stock; and $3 million in satisfaction of employee tax obligations in lieu of share issuances upon vesting of equity grants.

In the first nine months of 2022, Lazard returned $812 million to shareholders, which included: $139 million in dividends; $612 million in share repurchases of our common stock; and $61 million in satisfaction of employee tax obligations in lieu of share issuances upon vesting of equity grants.

During the first nine months of 2022, we repurchased a record 17.2 million shares, which included 6.7 million shares repurchased in the third quarter. As of September 30, 2022, our remaining share repurchase authorization was $382 million.

On October 26, 2022, Lazard declared a quarterly dividend of $0.50 per share on its outstanding common stock. The dividend is payable on November 18, 2022, to stockholders of record on November 7, 2022.

Lazard's financial position remains strong. As of September 30, 2022, our cash and cash equivalents were $1 billion. Stockholders' equity related to Lazard's interests was $561 million.

***

CONFERENCE CALL

Lazard will host a conference call at 8:00 a.m. EDT on October 27, 2022, to discuss the company's financial results for the third quarter and first nine months of 2022. 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 1 866-831-8711 (toll-free, U.S. and Canada) or +1 203-518-9865 (outside of the U.S. and Canada), 15 minutes prior to the start of the call. Conference ID: 69483

A replay of the conference call will be available by 10:00 a.m. EDT, October 27, 2022, via the Lazard Investor Relations website at www.lazard.com, or by dialing 1 800-839-5676 (toll-free, U.S. and Canada) or +1 402-220-2565 (outside of the U.S. and Canada).

ABOUT LAZARD

Lazard, one of the world's preeminent financial advisory and asset management firms, operates from 41 cities across 26 countries in North, Central and South America, Europe, Asia and Australia. 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 Frères 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 Third-quarter and first-nine-months 2022 adjusted results¹ exclude pre-tax charges of $0.9 million and $2.9 million, respectively, relating to office space reorganization. On a U.S. GAAP basis, these resulted in a net charge of $0.7 million, or $0.01 (diluted) per share, for the third quarter, and a net charge of $2.1 million, or $0.02 (diluted) per share, for the first nine months of 2022.

LAZ-EPE


LAZARD LTD
UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(U.S. GAAP)

	Three Months Ended									% Change From
	September 30,			June 30,			September 30,			June 30,	September 30,
($ in thousands, except per share data)	2022			2022			2021			2022	2021

Total revenue	$	746,431		$	660,658		$	737,807		13%	1%
Interest expense		(19,687	)		(21,112	)		(20,378	)
Net revenue		726,744			639,546			717,429		14%	1%
Operating expenses:
Compensation and benefits		420,937			363,830			419,627		16%	0%

Occupancy and equipment		30,696			29,409			31,015
Marketing and business development		19,633			22,673			9,922
Technology and information services		44,579			42,067			37,559
Professional services		15,665			16,549			16,698
Fund administration and outsourced services		27,110			28,551			34,137
Amortization of intangible assets related to acquisitions		15			15			15
Other		9,967			10,614			13,497
Subtotal		147,665			149,878			142,843		(1%)	3%
Operating expenses		568,602			513,708			562,470		11%	1%

Operating income		158,142			125,838			154,959		26%	2%

Provision for income taxes		35,350			34,187			39,446		3%	(10%)
Net income		122,792			91,651			115,513		34%	6%
Net income (loss) attributable to noncontrolling interests		16,995			(3,829	)		8,304
Net income attributable to Lazard Ltd	$	105,797		$	95,480		$	107,209		11%	(1%)

Attributable to Lazard Ltd Common Stockholders:
Weighted average shares outstanding:
Basic		93,275,631			98,660,173			105,415,743		(5%)	(12%)
Diluted		98,865,156			102,753,336			112,994,037		(4%)	(13%)

Net income per share:
Basic	$	1.11		$	0.96		$	1.00		16%	11%
Diluted	$	1.06		$	0.92		$	0.94		15%	13%


LAZARD LTD
UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(U.S. GAAP)

	Nine Months Ended
	September 30,			September 30,
($ in thousands, except per share data)	2022			2021			% Change

Total revenue	$	2,123,233		$	2,260,975		(6%)
Interest expense		(62,051	)		(60,302	)
Net revenue		2,061,182			2,200,673		(6%)
Operating expenses:
Compensation and benefits		1,181,608			1,336,091		(12%)

Occupancy and equipment		91,344			95,638
Marketing and business development		56,429			25,905
Technology and information services		124,577			107,003
Professional services		48,243			51,642
Fund administration and outsourced services		85,364			94,718
Amortization of intangible assets related to acquisitions		45			45
Other		29,864			34,121
Subtotal		435,866			409,072		7%
Operating expenses		1,617,474			1,745,163		(7%)

Operating income		443,708			455,510		(3%)

Provision for income taxes		108,290			124,255		(13%)
Net income		335,418			331,255		1%
Net income attributable to noncontrolling interests		20,265			13,568
Net income attributable to Lazard Ltd	$	315,153		$	317,687		(1%)

Attributable to Lazard Ltd Common Stockholders:
Weighted average shares outstanding:
Basic		98,161,027			106,484,652		(8%)
Diluted		103,268,378			114,139,936		(10%)

Net income per share:
Basic	$	3.16		$	2.94		7%
Diluted	$	3.03		$	2.78		9%


LAZARD LTD
UNAUDITED CONDENSED CONSOLIDATED
STATEMENT OF FINANCIAL CONDITION
(U.S. GAAP)

	September 30,			December 31,
($ in thousands)	2022			2021

ASSETS

Cash and cash equivalents	$	1,000,102		$	1,465,022
Deposits with banks and short-term investments		1,341,514			1,347,544
Restricted cash		621,099			617,448
Receivables		740,395			805,809
Investments		638,960			1,007,339
Property		218,551			250,005
Goodwill and other intangible assets		375,889			379,571
Operating lease right-of-use assets		420,013			466,054
Deferred tax assets		390,543			435,308
Other assets		460,859			373,081

Total Assets	$	6,207,925		$	7,147,181

LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS & STOCKHOLDERS' EQUITY

Liabilities
Deposits and other customer payables	$	1,499,812		$	1,442,701
Accrued compensation and benefits		531,496			972,303
Operating lease liabilities		502,206			552,522
Tax receivable agreement obligation		192,399			213,434
Senior debt		1,687,092			1,685,227
Other liabilities		539,101			628,030
Total liabilities		4,952,106			5,494,217

Commitments and contingencies
Redeemable noncontrolling interests		578,495			575,000

Stockholders' equity
Preferred stock, par value $.01 per share		-			-
Common stock, par value $.01 per share		1,128			1,128
Additional paid-in capital		126,746			144,729
Retained earnings		1,682,398			1,560,636
Accumulated other comprehensive loss, net of tax		(334,382	)		(223,847	)
Subtotal		1,475,890			1,482,646
Class A common stock held by subsidiaries, at cost		(915,254	)		(507,426	)
Total Lazard Ltd stockholders' equity		560,636			975,220
Noncontrolling interests		116,688			102,744
Total stockholders' equity		677,324			1,077,964

Total liabilities, redeemable noncontrolling interests and stockholders' equity	$	6,207,925		$	7,147,181


LAZARD LTD
SELECTED SUMMARY FINANCIAL INFORMATION (a)
(Non-GAAP - unaudited)

	Three Months Ended						% Change From
	September 30,		June 30,		September 30,		June 30,	September 30,
($ in thousands, except per share data)	2022		2022		2021		2022	2021

Revenues:

Financial Advisory	$	453,664	$	406,792	$	381,295	12%	19%
Asset Management		262,559		265,707		310,566	(1%)	(15%)
Corporate		7,328		3,412		9,783	NM	(25%)

Operating revenue (b)	$	723,551	$	675,911	$	701,644	7%	3%

Expenses:

Adjusted compensation and benefits expense (c)	$	434,131	$	395,407	$	417,479	10%	4%
Ratio of adjusted compensation to operating revenue	60.0%		58.5%		59.5%

Non-compensation expense (d)	$	128,263	$	130,941	$	116,734	(2%)	10%
Ratio of non-compensation to operating revenue	17.7%		19.4%		16.6%

Earnings:

Earnings from operations (e)	$	161,157	$	149,563	$	167,431	8%	(4%)
Operating margin (f)	22.3%		22.1%		23.9%

Adjusted net income (g)	$	106,472	$	96,108	$	111,398	11%	(4%)

Diluted adjusted net income per share	$	1.05	$	0.92	$	0.98	14%	7%

Diluted weighted average shares (h)		101,603,367		104,767,897		113,781,092	(3%)	(11%)

Effective tax rate (i)	25.1%		26.4%		25.1%

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.


LAZARD LTD
SELECTED SUMMARY FINANCIAL INFORMATION (a)
(Non-GAAP - unaudited)

	Nine Months Ended
	September 30,		September 30,
($ in thousands, except per share data)	2022		2021		% Change

Revenues:

Financial Advisory	$	1,248,586	$	1,169,670	7%
Asset Management		840,047		981,933	(14%)
Corporate		9,464		19,349	(51%)

Operating revenue (b)	$	2,098,097	$	2,170,952	(3%)

Expenses:

Adjusted compensation and benefits expense (c)	$	1,238,240	$	1,291,717	(4%)
Ratio of adjusted compensation to operating revenue	59.0%		59.5%

Non-compensation expense (d)	$	376,330	$	338,044	11%
Ratio of non-compensation to operating revenue	17.9%		15.6%

Earnings:

Earnings from operations (e)	$	483,527	$	541,191	(11%)
Operating margin (f)	23.1%		24.9%

Adjusted net income (g)	$	317,272	$	358,417	(11%)

Diluted adjusted net income per share	$	3.02	$	3.13	(4%)

Diluted weighted average shares (h)		105,183,136		114,565,986	(8%)

Effective tax rate (i)	25.6%		26.2%

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 Reconciliation of U.S. GAAP to Selected Summary Financial Information and Notes to Financial Schedules.

LAZARD LTD
ASSETS UNDER MANAGEMENT ("AUM")
(unaudited)

($ in millions)

	As of								Variance
	September 30,			June 30,			December 31,
	2022			2022			2021		Qtr to Qtr			YTD

Equity:
Emerging Markets	$	20,378		$	22,656		$	31,227	(10.1%)			(34.7%)
Global		43,754			48,742			59,516	(10.2%)			(26.5%)
Local		43,589			46,617			56,310	(6.5%)			(22.6%)
Multi-Regional		45,988			52,259			73,953	(12.0%)			(37.8%)
Total Equity		153,709			170,274			221,006	(9.7%)			(30.5%)
Fixed Income:
Emerging Markets		9,288			9,948			12,231	(6.6%)			(24.1%)
Global		10,252			12,380			14,410	(17.2%)			(28.9%)
Local		4,986			5,302			6,022	(6.0%)			(17.2%)
Multi-Regional		13,786			12,299			13,623	12.1%			1.2%
Total Fixed Income		38,312			39,929			46,286	(4.0%)			(17.2%)
Alternative Investments		3,900			4,145			4,203	(5.9%)			(7.2%)
Private Equity		1,042			1,268			1,290	(17.8%)			(19.2%)
Cash Management		803			1,010			954	(20.5%)			(15.8%)
Total AUM	$	197,766		$	216,626		$	273,739	(8.7%)			(27.8%)



	Three Months Ended September 30,								Nine Months Ended September 30,
	2022			2021					2022			2021

AUM - Beginning of Period	$	216,626		$	277,378				$	273,739		$	258,642

Net Flows		(2,006	)		(2,331	)				(13,180	)		(4,838	)
Market and foreign exchange appreciation (depreciation)		(16,854	)		(2,475	)				(62,793	)		18,768

AUM - End of Period	$	197,766		$	272,572				$	197,766		$	272,572

Average AUM	$	212,259		$	277,941				$	232,839		$	271,761

% Change in average AUM	(23.6%)								(14.3%)


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


LAZARD LTD
RECONCILIATION OF U.S. GAAP TO SELECTED SUMMARY FINANCIAL INFORMATION (a)
(unaudited)

	Three Months Ended									Nine Months Ended
	September 30,			June 30,			September 30,			September 30,			September 30,
($ in thousands, except per share data)	2022			2022			2021			2022			2021

Operating Revenue
Net revenue - U.S. GAAP Basis	$	726,744		$	639,546		$	717,429		$	2,061,182		$	2,200,673

Adjustments:
Revenue related to noncontrolling interests (j)		(20,847	)		(660	)		(11,994	)		(32,302	)		(24,109	)
(Gains) losses related to Lazard Fund Interests ("LFI") and other similar arrangements		16,180			35,098			1,368			65,601			(22,610	)
Distribution fees, reimbursable deal costs, bad debt expense and other (k)		(17,588	)		(17,083	)		(23,876	)		(53,493	)		(62,211	)
Losses associated with restructuring and closing of certain offices (l)		-			-			51			-			23,630
Interest expense		19,062			19,010			18,666			57,109			55,579

Operating revenue, as adjusted (b)	$	723,551		$	675,911		$	701,644		$	2,098,097		$	2,170,952

Compensation and Benefits Expense
Compensation and benefits expense - U.S. GAAP Basis	$	420,937		$	363,830		$	419,627		$	1,181,608		$	1,336,091

Adjustments:
(Charges) credits pertaining to LFI and other similar arrangements		16,180			35,098			1,368			65,601			(22,610	)
Expenses associated with restructuring and closing of certain offices (m)		-			-			(1,012	)		-			(14,922	)
Compensation related to noncontrolling interests (j)		(2,986	)		(3,521	)		(2,504	)		(8,969	)		(6,842	)

Compensation and benefits expense, as adjusted (c)	$	434,131		$	395,407		$	417,479		$	1,238,240		$	1,291,717

Non-Compensation Expense
Non-compensation expense - Subtotal - U.S. GAAP Basis	$	147,665		$	149,878		$	142,843		$	435,866		$	409,072

Adjustments:
Expenses related to office space reorganization (n)		(933	)		(871	)		(991	)		(2,928	)		(3,644	)
Distribution fees, reimbursable deal costs, bad debt expense and other (k)		(17,588	)		(17,083	)		(23,876	)		(53,493	)		(62,211	)
Amortization of intangible assets related to acquisitions		(15	)		(15	)		(15	)		(45	)		(45	)
Expenses associated with restructuring and closing of certain offices (m)		-			-			(39	)		-			(1,424	)
Non-compensation expense related to noncontrolling interests (j)		(866	)		(968	)		(1,188	)		(3,070	)		(3,704	)

Non-compensation expense, as adjusted (d)	$	128,263		$	130,941		$	116,734		$	376,330		$	338,044

Pre-Tax Income and Earnings From Operations
Operating Income - U.S. GAAP Basis	$	158,142		$	125,838		$	154,959		$	443,708		$	455,510

Adjustments:
Losses associated with restructuring and closing of certain offices (l)		-			-			51			-			23,630
Expenses related to office space reorganization (n)		933			871			991			2,928			3,644
Expenses associated with restructuring and closing of certain offices (m)		-			-			1,051			-			16,346
Net (income) loss related to noncontrolling interests (j)		(16,995	)		3,829			(8,304	)		(20,265	)		(13,568	)
Pre-tax income, as adjusted		142,080			130,538			148,748			426,371			485,562
Interest expense		19,062			19,010			18,666			57,109			55,579
Amortization of intangible assets related to acquisitions and other		15			15			17			47			50
Earnings from operations, as adjusted (e)	$	161,157		$	149,563		$	167,431		$	483,527		$	541,191

Net Income attributable to Lazard Ltd
Net income attributable to Lazard Ltd - U.S. GAAP Basis	$	105,797		$	95,480		$	107,209		$	315,153		$	317,687
Adjustments:
Losses associated with restructuring and closing of certain offices (l)		-			-			51			-			23,630
Expenses related to office space reorganization (n)		933			871			991			2,928			3,644
Expenses associated with restructuring and closing of certain offices (m)		-			-			1,051			-			16,346
Tax expense (benefit) allocated to adjustments		(258	)		(243	)		2,096			(809	)		(2,890	)

Net income, as adjusted (g)	$	106,472		$	96,108		$	111,398		$	317,272		$	358,417

Diluted Weighted Average Shares Outstanding
Diluted Weighted Average Shares Outstanding - U.S. GAAP Basis		98,865,156			102,753,336			112,994,037			103,268,378			114,139,936
Adjustment: participating securities including profits interest participation rights		2,738,211			2,014,561			787,055			1,914,758			426,050

Diluted Weighted Average Shares Outstanding, as adjusted (h)		101,603,367			104,767,897			113,781,092			105,183,136			114,565,986

Diluted net income per share:
U.S. GAAP Basis	$	1.06		$	0.92		$	0.94		$	3.03		$	2.78
Non-GAAP Basis, as adjusted	$	1.05		$	0.92		$	0.98		$	3.02		$	3.13

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*


LAZARD LTD
RECONCILIATION OF NON-COMPENSATION U.S. GAAP TO ADJUSTED (a)
(unaudited)

	Three Months Ended									Nine Months Ended
	September 30,			June 30,			September 30,			September 30,			September 30,
($ in thousands)	2022			2022			2021			2022			2021


Non-compensation expense - U.S. GAAP Basis:
Occupancy and equipment	$	30,696		$	29,409		$	31,015		$	91,344		$	95,638
Marketing and business development		19,633			22,673			9,922			56,429			25,905
Technology and information services		44,579			42,067			37,559			124,577			107,003
Professional services		15,665			16,549			16,698			48,243			51,642
Fund administration and outsourced services		27,110			28,551			34,137			85,364			94,718
Amortization of intangible assets related to acquisitions		15			15			15			45			45
Other		9,967			10,614			13,497			29,864			34,121
Non-compensation expense - Subtotal - U.S. GAAP Basis	$	147,665		$	149,878		$	142,843		$	435,866		$	409,072

Non-compensation expense - Adjustments:
Occupancy and equipment (j) (m) (n)	$	(944	)	$	(932	)	$	(1,106	)	$	(3,059	)	$	(4,503	)
Marketing and business development (j) (k) (m)		(2,516	)		(2,043	)		(1,261	)		(5,784	)		(2,713	)
Technology and information services (j) (k) (m)		(23	)		(61	)		(72	)		(114	)		(174	)
Professional services (j) (k) (m) (n)		(510	)		(403	)		(1,143	)		(1,651	)		(4,658	)
Fund administration and outsourced services (j) (k)		(14,362	)		(15,680	)		(19,669	)		(46,554	)		(51,765	)
Amortization of intangible assets related to acquisitions		(15	)		(15	)		(15	)		(45	)		(45	)
Other (j) (k) (m) (n)		(1,032	)		197			(2,843	)		(2,329	)		(7,170	)
Subtotal Non-compensation adjustments	$	(19,402	)	$	(18,937	)	$	(26,109	)	$	(59,536	)	$	(71,028	)

Non-compensation expense, as adjusted:
Occupancy and equipment	$	29,752		$	28,477		$	29,909		$	88,285		$	91,135
Marketing and business development		17,117			20,630			8,661			50,645			23,192
Technology and information services		44,556			42,006			37,487			124,463			106,829
Professional services		15,155			16,146			15,555			46,592			46,984
Fund administration and outsourced services		12,748			12,871			14,468			38,810			42,953
Amortization of intangible assets related to acquisitions		-			-			-			-			-
Other		8,935			10,811			10,654			27,535			26,951
Non-compensation expense, as adjusted (d)	$	128,263		$	130,941		$	116,734		$	376,330		$	338,044


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*


LAZARD LTD

*Notes to Financial Schedules*

(a)	Selected Summary Financial Information are non-GAAP measures. Lazard believes that presenting results and measures on an adjusted basis in conjunction with U.S. GAAP measures provides a meaningful and useful basis for comparison of its operating results across periods.

(b)	A non-GAAP measure which excludes (i) revenue related to noncontrolling interests (see (j) below), (ii) (gains) losses related to the changes in the fair value of investments held in connection with Lazard Fund Interests and other similar deferred compensation arrangements for which a corresponding equal amount is excluded from compensation & benefits expense, (iii) revenue related to distribution fees, reimbursable deal costs in accordance with the revenue recognition guidance, bad debt expense, and other (see (k) below), (iv) for the three and nine month periods ended September 30, 2021, losses associated with restructuring and closing of certain offices (see (l) below), and (v) interest expense primarily related to corporate financing activities.

(c)	A non-GAAP measure which excludes (i) (charges) credits related to the changes in the fair value of the compensation liability recorded in connection with Lazard Fund Interests and other similar deferred compensation arrangements, (ii) for the three and nine month periods ended September 30, 2021, expenses associated with restructuring and closing of certain offices (see (m) below), and (iii) compensation and benefits related to noncontrolling interests (see (j) below).

(d)	A non-GAAP measure which excludes (i) expenses related to office space reorganization (see (n) below), (ii) expenses related to distribution fees, reimbursable deal costs in accordance with the revenue recognition guidance, bad debt expense, and other (see (k) below), (iii) amortization of intangible assets related to acquisitions, (iv) for the three and nine month periods ended September 30, 2021, expenses associated with restructuring and closing of certain offices (see (m) below), and (v) expenses related to noncontrolling interests (see (j) below).

(e)	A non-GAAP measure which excludes (i) for the three and nine month periods ended September 30, 2021, losses associated with restructuring and closing of certain offices (see (l) below), (ii) expenses related to office space reorganization (see (n) below), (iii) for the three and nine month periods ended September 30, 2021, expenses associated with restructuring and closing of certain offices (see (m) below), (iv) net revenue and expenses related to noncontrolling interests (see (j) below), (v) interest expense primarily related to corporate financing activities, and (vi) amortization of intangible assets related to acquisitions.

(f)	Represents earnings from operations as a percentage of operating revenue, and is a non-GAAP measure.

(g)	A non-GAAP measure which excludes (i) for the three and nine month periods ended September 30, 2021, losses associated with restructuring and closing of certain offices (see (l) below), (ii) expenses related to office space reorganization (see (n) below), and (iii) for the three and nine month periods ended September 30, 2021, expenses associated with restructuring and closing of certain offices (see (m) below), net of tax expense (benefits).

(h)	A non-GAAP measure which includes units of the long-term incentive compensation program consisting of profits interest participation rights, which are equity incentive awards that, subject to certain conditions, may be exchanged for shares of our common stock. Certain profits interest participation rights and other participating securities may be excluded from the computation of outstanding stock equivalents for U.S. GAAP net income per share.

(i)	Effective tax rate is a non-GAAP measure based upon the U.S. GAAP rate with adjustments for the tax applicable to the non-GAAP adjustments to operating income, generally based upon the effective marginal tax rate in the applicable jurisdiction of the adjustments. The computation is based on a quotient, the numerator of which is the provision for income taxes of $35,608, $34,430, and $37,350 for the three month periods ended September 30, 2022, June 30, 2022, and September 30, 2021, respectively, $109,099 and $127,145 for the nine month periods ended September 30, 2022 and 2021 and the denominator of which is pre-tax income of $142,080, $130,538, and $148,748 for the three month periods ended September 30, 2022, June 30, 2022, and September 30, 2021, respectively, $426,371 and $485,562 for the nine month periods ended September 30, 2022 and 2021.

(j)	Noncontrolling interests include revenue and expenses principally related to Edgewater, ESC Funds and a Special Purpose Acquisition Company.

(k)	Represents certain distribution, introducer and management fees paid to third parties and reimbursable deal costs for which an equal amount is excluded from both non-GAAP operating revenue and non-compensation expense, respectively, and excludes bad debt expense, which represents fees that are deemed uncollectible.

(l)	Represents losses related to the reclassification of currency translation adjustments to earnings from accumulated other comprehensive loss associated with restructuring and closing of certain of our offices.

(m)	Expenses associated with restructuring and closing of certain offices.

(n)	Represents building depreciation and other costs related to office space reorganization.

NM	Not meaningful

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Lazard Ltd Reports Third-Quarter and Nine-Month 2022 Results