Subordinated and Hybrid Financial Presentation of the expertise Credit Fi Lazard Subordinated Financial - Hybrid Contingent

26TH NOVEMBER 2019

DOCUMENT EXCLUSIVELY INTENDED FOR RANKIA

Lazard Fund Managers is a common initiative of Lazard Asset Management LLC, its subsidiaries and Lazard Frères Gestion SAS. Lazard Fund Managers (Ireland) Limited, Sucursal en España, is registered with the CNMV with number 18, having its registered office at Paseo de la Castellana, 140, Piso 10, letra E, Madrid and is a branch office of Lazard Fund Managers (Ireland) Limited, incorporated in Ireland and supervised by the Central Bank of Ireland. Contents

I. Lazard Fund Managers

II. Subordinated and Hybrid Financial Debts Expertise

A. What? Overview of the Financial Debts Segment

B. Why? Fundamentals have improved a lot

C. Who? Team, Approach, Clients

D. How? Strategies and Portfolios

E. Conclusion

Appendices Disclaimer

1 Lazard Fund Managers I Lazard Fund Managers Lazard Over 170 Years of International Financial Expertise

ASSET MANAGEMENT FINANCIAL ADVISORY

. 1,000+ employees . 1,400+ employees . 400+ investment professionals . 55% of 2018 revenues . 45% of 2018 revenues

$231bn of Assets Under Management* Mergers & Acquisitions

Institutional Asset Management Debt & Restructuring Advisory

Wealth Management Government and Sovereign Advisory

. Australia . Middle East . US . Hong Kong . Belgium . Netherlands . France . India . UK . Italy . Canada . Singapore . Japan . France . South Korea . Argentina . Mexico . Australia . Middle East . Germany . Spain . Belgium . Netherlands . Hong Kong . Switzerland . Brazil . Panama . Canada . Peru . Ireland . UK . Chile . Singapore . Italy . US . China . Spain . Colombia . Sweden . Japan . Germany . Switzerland

Source: Lazard. * Assets Under Management (AUM) as of 30 September 2019 3 Lazard Frères Gestion Information reserved for professional investors. Lazard Asset Management Expertise

LAZARD ASSET MANAGEMENT & LAZARD FRÈRES GESTION

KEY FIGURES

1848 +1000 +400 $231bn Lazard brothers found Lazard Employees worldwide Research and Portfolio of AUM Frères management specialists

EUROPE NORTH AMERICA

MIDDLE EAST ASIA-PACIFIC

Source: Lazard. As of 30 September 2019 Information reserved for professional investors. 4 Lazard Frères Gestion Lazard Fund Managers Overview

. Lazard Fund Managers offers investors a range of UCITS managed by Lazard Asset Management and Lazard Frères Gestion, providing a single point of access to the investment expertise of two firms within the Lazard family with distinct capabilities but shared beliefs.

. Lazard Fund Managers’ UCITS fund range combines the best investment ideas of Lazard Asset Management and Lazard Frères Gestion in developed and emerging markets.

. The offering, which encompasses Equity, , Multi-Assets and Funds managed by Lazard’s experienced investment professionals, builds on our tradition of evolving our investment platform by developing innovative investment solutions to meet our investors’ needs.

. Throughout all market environments, our managers maintain a disciplined approach to investing with a research-driven investment process focusing on financial productivity and valuation.

. We are committed to and we believe there are substantial opportunities for investors to invest in companies with healthy balance sheets and sustainable returns.

We Are Lazard Fund Managers

5 Lazard Fund Managers Lazard Fund Managers Assets under Management

Asset breakdown by asset class

1

Assets under Management2: USD 231 billion | EUR 212 billion | CHF 230 billion

1 Others reflect institutional & private mandates and outstanding funds in life insurance as well as private Equity. 2 As of 30 September 2019. Includes those of Lazard Asset Management LLC (New York) and its affiliates as well as those of Lazard Frères Gestion (Paris) or other asset management businesses of Lazard Ltd. 6 Lazard Fund Managers Lazard Fund Managers Investment Funds

EQUITY FIXED INCOME

GLOBAL EUROZONE EMERGING MARKETS Global Equity Franchise Lazard Actions Euro* Emerging Markets Global Listed Infrastructure Lazard Dividendes Min Var* Emerging Markets Debt Blend Equity Lazard Small Caps Euro* Emerging Markets Local Debt Global Managed Volatility Emerging Markets Total Return Debt NORTHERN EUROPE EMERGING MARKETS Norden* EUROPE Emerging Markets Equity Lazard Credit Fi*

US

US Equity Concentrated

CONVERTIBLES MULTI-ASSET

GLOBAL GLOBAL Lazard Convertible Global* Diversified Return Strategy

As of 30 September 2019 and is subject to change. This information is for illustrative purposes only and should not be considered an offer or solicitation with respect to any product managed by Lazard. *Funds managed by Lazard Frères Gestion 7 Lazard Fund Managers Subordinated and Hybrid Financial Debts II Expertise Alternatives available for investors in the Fixed Income market

In our opinion, investors have three ways of achieving returns on the Fixed Income market:

1 Lengthening the maturity

2 Going down in terms of credit quality

3 Going down in the capital structure

Source: Lazard Frères Gestion, Bloomberg. For illustration purposes only. 9 Lazard Fund Managers

DOCUMENT INTENDED FOR PROFESSIONAL INVESTORS Asset class features Yield, duration and issuer rating

Yield to Worst1 Modified Duration Average issuer rating

1 Sovereigns 0.1% 8.2 A+

Euro Corporates 0.4% 5.2 A-

Euro Senior Banks 0.2% 4.1 A

Corporate Hybrids IG 1.8% 4.4 A-

3 Corporate Hybrids HY 2.2% 3.5 BBB

Financial Hybrids 2.8% 3.9 A-

Indices used:

EG00: ICE BofAML Euro Government Index ERS0: ICE BofAML Euro Corporate Senior Index EB3A : ICE BofAML Euro Senior Banking Index GNEC: ICE BofAML Global Hybrid Non-Financial Corporate Index HNEC: ICE BofAML Global Hybrid Non-Financial High Yield Index BCCGTREH: Bloomberg Barclays Global Contingent Capital Hedged Index

Source: Lazard Frères Gestion, Bloomberg, as of 28 October 2019. 1. YTW in Euro The yield is the counterparty of a capital risk. Past yields do not guarantee the capital or future performance. 10 Lazard Fund Managers

DOCUMENT INTENDED FOR PROFESSIONAL INVESTORS What are the advantages of hybrid debt?

Credit risk on Investment Grade issuers

Shorter maturity

An additional spread vs senior debt

Source: Lazard Frères Gestion. The above opinion was expressed as of the date of this presentation and is likely to change. 11 Lazard Fund Managers

DOCUMENT INTENDED FOR PROFESSIONAL INVESTORS What? Overview of the Financial Debts A Segment Relative size of Financial Subordinated Debts Versus similar strategies

. Financial Subordinated Debts from Western European issuers compare to European High Yield Corporates and Emerging Govies (in € billions)

700 684

600 477 500 Tier 2 387 400 472

300

200 AT1 100 212 0 Financial Subordinated European High Yield Emerging Markets - Sovereign Hard Currency

Source : Lazard Frères Gestion, Bloomberg, as of 31 December 2018. Methodology: ICE BofAML Global High Yield Index (HW00) for global high yield bonds, Bloomberg Barclays Global Contingent Capital Total Return Index Unhedged EUR (BCCGTREU) for AT1 bonds, JP EMBI Global for Emerging Sovereign Bonds. We extract bonds issued by western European issuers from IG, HY and AT1 index to make the computations. Data are as of 31/12/2018 in EUR. The above opinion was expressed as of the date of this presentation and is likely to change. 13 Lazard Fund Managers

DOCUMENT INTENDED FOR PROFESSIONAL INVESTORS Why are issuers issuing hybrid debt ?

Regulatory reasons:

T2 2% Tier 1 leverage ratio Equity AT1 1,5% Cost

Rating agencies reason:

Support for credit ratings

T2: Tier 2 Debt / AT1: AT1 Debt. For illustrative purposes only. 14 Lazard Fund Managers

DOCUMENT INTENDED FOR PROFESSIONAL INVESTORS Yield/Volatility profile

Capital Credit spreads structure of a Yields bank In basis points Yield 7%

6% Senior 90 1.1% Investment 5% universe 2.1 1.8

Tier 2 193 2.0% 4% 2.1 1.8 Additional Tier 1 410 3.5% 3%

2%

Equity 1%

0% Vol. 0% 5% 10% 15% 20%

Senior Banks Tier 2 Banks Tier 2 Insurance AT1 Equity

Sources: Lazard Frères Gestion, Bloomberg. Spread levels as of 5 September 2019. Indices used : JP Morgan Subordinated Security Index Senior, JP Morgan Subordinated Security Index Lower Tier 2 Banks, JP Morgan Subordinated Security Subordinated Incos Index and Bloomberg Barclays Global Contingent Capital for AT1 / Equity : Stoxx 600 Banks. Past performance does not guarantee future performance. Performance over less than one year is provided for illustration purposes only. Performance data is provided for information purposes only and should be assessed over the recommended investment period. 15 Lazard Fund Managers

DOCUMENT INTENDED FOR PROFESSIONAL INVESTORS Performance overview Cumulative return since 31 December 2008

CUMULATIVE PERFORMANCE FROM 31/12/2008 TO 30/09/2019

250 + 228%

200

150

+112% 100

+60% 50 +24% 0

-50

-100

AT1 Tier 2 Senior Equity (Dividend included)

Sources : Lazard Frères Gestion, JP Morgan, Barclays and Bloomberg. As of 30 September 2019, in euro hedged. Cumulative performance since 31/12/2008 to 30/09/2019. Inception date Global Bloomberg Barclays 09/05/2014. Indices used: JP Morgan Subordinated Security Index Senior, JP Morgan Subordinated Security Index Lower Tier 2 Banks and Bloomberg Barclays Global Contingent Capital for AT1 / Stoxx 600 Bank equity. Past performance does not guarantee future performance. Performance data is provided for information purposes only and should be assessed over the recommended investment period. For illustrative purpose only. 16 Lazard Fund Managers

DOCUMENT INTENDED FOR PROFESSIONAL INVESTORS Why? Fundamentals have improved a lot and B let’s talk about the Risks Fundamentals

Capital Asset Quality Earnings Liquidity

p. 75-76 p. 77 p. 78

Source: Lazard. The above opinion was expressed as of the date of this presentation and is likely to change. 18 Lazard Fund Managers

DOCUMENT INTENDED FOR PROFESSIONAL INVESTORS Different risk/return profiles Banks: AT1 vs Equity

AT1 Banks equity

5Y annualised Performance 6.4% -4.5%

5Y annualised Volatility 5.2% 22.5%

Solvency risk Solvency risk

Earnings volatility risk

Source: Lazard Frères Gestion, Bloomberg, as of 30 September 2019. Performance and volatility figures over 5 years. Index: Bloomberg Barclays Global Contingent Capital (AT1: BCCGTREH) / Stoxx 600 Banks dividends reinvested (Banks equity: SX7R). Past performance does not guarantee future performance. Performance data is provided for information purposes only and should be assessed over the recommended investment period. For illustrative purpose only. The above opinion was expressed as of the date of this presentation and is likely to change. 19 Lazard Fund Managers

DOCUMENT INTENDED FOR PROFESSIONAL INVESTORS 1 Financial Subordinated Debts Quick summary about securities features – Coupons Risks

Cash flows K

Average rating: BBB Tier 2 Fixed & Mandatory 1 2 3 4 5 10 Coupons Volatility*: 2.5%

Call K

Average rating: 1 2 3 4 5 10 BB AT1 Fixed & Optional Coupons Volatility*: 5.2%

3 2 1 4 Rating: NR 5 6 Equity Variable & Optional Dividends Volatility*: 22.5%

Source : Lazard Frères Gestion, Bloomberg. For illustrative purpose only. *5 years annualized volatility as of 30 September 2019, on a daily basis. Indices used: JP Morgan Subordinated Security Index Lower Tier 2 Banks (JPSULTEI Index) / Bloomberg Barclays Global Contingent Capital for AT1 (BCCGTREH Index) / Stoxx Europe 600 Banks for equities (SX7R). The above opinion was expressed as of the date of this presentation and is likely to change. 20 Lazard Fund Managers

DOCUMENT INTENDED FOR PROFESSIONAL INVESTORS 2 Default rate Financials vs Corporates default rate over the long term

Average cumulative default rate over 10 years was:

 4.9% for Financials Institutions  11.5% for Corporates

Standard & Poor's publication of its annual study on Corporate Default Rates between 1981 and 2018: 10-Year Cumulative Default Rates

25

All financials All nonfinancials

20

15

10

5

0 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018

Source: S&P. Data on Corporates are biased by the high weight of issuers in the HY category (60% of non-financial issuers vs. 26% for financial issuers) all geographical areas combined as of December 2018. Nevertheless, the cumulative overall default rates over 5 years between 1981 and 2018, all geographical areas and all sectors combined, are 0.49% for A-rated issuers (vs. 0.30% for European financial issuers), 1.64% for BBB issuers (vs. 0.24%) and 6.78% for BB issuers (vs. 1.43%). The above opinion was expressed as of the date of this presentation and is likely to change. For illustrative purpose only. 21 Lazard Fund Managers

DOCUMENT INTENDED FOR PROFESSIONAL INVESTORS 4

Volatility is normalised and limited

260-day trailing standard deviation trend

70

60

50

40

30

20

10

0

Stoxx 600 Europe Banks ND Bloomberg Barclays Global Contingent Capital Total Return Index Value Hedged EUR JPM SUSI T1 Index JPM SUSI LT2 Index

Source: Lazard Frères Gestion, JP Morgan and Bloomberg. As of 30 September 2019. Standard Deviation on a daily basis over 260 days. 22 Lazard Fund Managers

DOCUMENT INTENDED FOR PROFESSIONAL INVESTORS 3 5

Rising Rates impact on Capital Instruments Securities

Cash flow illustration

Old generation

From year 1 to year 10: Fixed 5% coupon Euribor 3 Months + initial Spread + step-up 100bps = 1 to 3% coupon

Coupons Coupons declined Securities prices declined 1 2 3 4 5 6 7 8 9 10 from 40 to 80% from 15 to 30% Years

New generation From year 1 to year 5: From year 6 to year 10: 6.25% coupon 5.481% coupon if Rates rise / decline 5Y Euros Mid-Swaps Rates at 0.840% 5Y Euros Mid-Swaps Rates at 0.071% Coupon will rise Coupon declined by 12% Coupon will decline Coupons Security price declined 1 2 3 4 5 6 7 8 9 10 15 by 1% Years

Source: Lazard Frères Gestion, Bloomberg, as of 30 September 2019. Security: Santander 6.25%, callable in March 2019. The above opinion was expressed as of the date of this presentation and is likely to change. For illustrative purpose only. 23 Lazard Fund Managers

DOCUMENT INTENDED FOR PROFESSIONAL INVESTORS Who? C Team, Investment Approach, Clients Lazard Fixed Income Investment Resources Global platform

New-York Frankfurt Singapore

Paris

US, EM & Global Fixed Income Global, Euro & Nordic Fixed Income

MONTHLY MEETING

€ 34 Bn in Assets Under Management Global Fixed Income Team As of 30 June 2019 60 professionals

BI-MONTHLY MEETING 60 professionals within the Fixed Income Franchise (Lazard Group) European Credit Research Team 12 professionals

Source: Lazard Asset Management and Lazard Frères Gestion, as of 30 June 2019. Include LAM expertise. 25 Lazard Fund Managers DOCUMENT INTENDED FOR PROFESSIONAL INVESTORS A dedicated investment team on Financial sector

2 Fund Manager / Analyst dedicated to Hybrid and Subordinated Financial Debt

François LAVIER, CFA Alexis LAUTRETTE

Lead Fund Manager/Analyst Fund Manager/Analyst

. 23 years of experience . 10 years of experience . 12 years at Lazard Frères Gestion . 2 years at Lazard Frères Gestion

Lazard Frères Gestion Fixed Income Management Team

8 Fund Manager/Analyst 21 1 Manager years of experience 1 Fund Manager Assistant in financial markets on average

Head of Fixed Money Market Income Fund Manager

Éléonore Frédéric Benjamin Camille Alexia François Alexis Lionel Jean-Philippe Bunel Penel Le Roux Suh Latorre, CFA Lavier, CFA Lautrette Clément Quiterio

Source : Lazard Frères Gestion, as of September 2019. Our team is traditionally stable, unfortunately, we are unable to guarantee the presence of the managers listed above during the life of the product. The information listed above is current as of the date of this presentation. 26 Lazard Fund Managers

DOCUMENT INTENDED FOR PROFESSIONAL INVESTORS Analysis resources dedicated to Financial sectors A combination of Fixed Income & Equity expertise

Fixed Income

DEVELOPED EMERGING COUNTRIES COUNTRIES

François Lavier Alexis Lautrette Ulrich Teutsch Agnese Melbarde Seung-Ho Ahn 23 years of experience 10 years of experience 20 years of experience 11 years of experience 18 years of experience 11 years at LFG 1 year at LFG 9 years at LAM 7 years at LAM 5 years at LAM

Equity

Scander Bentchikou Jonathan Morris 17 years of experience 30 years of experience 9 years at LFG 11 years at LAM

Source : Lazard Frères Gestion, as of September 2019. LFG for Lazard Frères Gestion: François Lavier, Alexis Lautrette, Scander Bentchikou. LAM Lazard Asset Management: Ulrich Teutsch, Agnese Melbarde, Seung-Ho Ahn, Jonathan Morris. Our team is traditionally stable, unfortunately, we are unable to guarantee the presence of the managers listed above during the life of the product. The information listed above is current as of the date of this presentation. 27 Lazard Fund Managers

DOCUMENT INTENDED FOR PROFESSIONAL INVESTORS Investment Approach

A model of Fund Manager/Analyst In-depth knowledge of the regulations (impacts on securities, clauses specific to hybrids, 200 meetings with issuers over the last year covenants ...)

BOTTOM-UP INVESTMENT APPROACH

An active and unconstrained investment Seek to generate among the best risk- approach adjusted return for our clients

12 years of track record on the asset class

Source: Lazard Frères Gestion. For illustrative purpose only. The above opinion was expressed as of the date of this presentation and is likely to change. 28 Lazard Fund Managers

DOCUMENT INTENDED FOR PROFESSIONAL INVESTORS Client base

Breakdown by client type Top 10 investors

Name % of total assets Insurers 49% French Non-Life Insurer 18%

French Life Insurer 14%

Private Banks / Family Offices 28% French Corporate 11%

French Life Insurer 4%

Corporates 11% Italian Life Insurer 4%

French Asset Manager 3%

French Pension Fund 2% Asset Managers 8%

Spanish Private Bank 2%

French Asset Manager 2% Pension Funds 3% French Composite Insurer 2%

0% 20% 40% 60%

Source: Lazard Frères Gestion, March 2019. The top 10 investors refer to the top 10 clients of open-funds, dedicated funds or mandates invested in Subordinated Financial Debt and managed by Lazard Frères Gestion. 29 Lazard Fund Managers

DOCUMENT INTENDED FOR PROFESSIONAL INVESTORS Reasons for investing in Financial Subordinated and Hybrid Debt Strategies

Asset class attractiveness

PRIVATE BANKS / FAMILY INSURERS OFFICES / ASSET CORPORATES MANAGERS

. Yield enhancement . Good quality credit of issuers . Good risk-adjusted returns . Fundamentals are improving . Visibility on fundamentals

. Expertise delegated to external AM . Not sensitive to ratings of those securities . Expertise delegated to external AM . Not investing directly in AT1 . Not investing directly in AT1 . Not investing directly in Tier 2 outside of . Not investing directly in Tier 2 best rated entities . Not investing hugely in subordinated debts of insurers

Source: Lazard Frères Gestion. 30 Lazard Fund Managers

DOCUMENT INTENDED FOR PROFESSIONAL INVESTORS How? D Strategies and Portfolios A track record of twelve years – Lazard Frères Gestion

Total AUM 3000 € 2 449M 3 000

2500 2 500

2000 2 000

1500 1 500

1000 1 000

500 500

0 -

Open Funds Others (Mandates, Dedicated Funds, Dated Closed Funds) Total AUM €M (Right scale)

Source: Lazard Frères Gestion, as of 30 September 2019. 32 Lazard Fund Managers

DOCUMENT INTENDED FOR PROFESSIONAL INVESTORS Asset Under Management Lazard Frères Gestion

€ 2.4 BN Assets Under Management

SENIOR FINANCIAL SUBORDINATED SUBORDINATED FINANCIAL DEBT DEBT CREDIT BUY & HOLD € 2.2Bn € 17M € 209M AUM AUM AUM

BLEND HYBRID CONTINGENT BUY & HOLD

€ 1 144M € 342M € 708M AUM AUM AUM

DEDICATED OPEN FUND OPEN FUND DATED FUND MANDATES OPEN FUND MANDATE FUND € 913M € 231M € 342M € 21M € 687M € 17M € 209M AUM AUM AUM AUM AUM AUM AUM

Legend: Financial Subordinated Hybrid Financial Hybrid Corporate Source: Lazard Frères Gestion, as of 30 September 2019. GIPS Classification: Product and Strategies offering. Does not include LAM AUM. 33 Lazard Fund Managers

DOCUMENT INTENDED FOR PROFESSIONAL INVESTORS Which is making us different, or, at least, complementary?

Average rating at the security Insurance companies Legacy instruments Non-GSIB issuers level

BBB- 18% 17% 79%

BB 6% 20% 71%

Recovery stories Large size securities USD, GBP securities AT1

30% 69% 25% 17%

24% 77% 30% 75%

But also But not GSIB issuers 21% 29% China, Russia, Turkey, Brazil… x x Private placements x x Credit Linked Notes x x Legend: Lazard Credit Fi < €150M securities 0.1% 0.2% Subordinated Financial Debt Hybrid Contingent Strategy – Hybrid Contingent < €300M securities 7.5% 6.5%

Subordinated Financial Debt Hybrid Contingent Strategy – Representative Account GSIB: Global Systemically Important Banks (G-SIBs) Defined by the Financial Stability Board (FSB), list of banks which are large enough to put Financial Stability at risk in case of failure of one of them. They are defined depending on the scale and the degree of influence they hold in global and domestic financial markets. Sources: Bloomberg and Lazard Frères Gestion, as of 30 September 2019. For illustrative purpose only. Figures may vary over the time. 34 Lazard Fund Managers

DOCUMENT INTENDED FOR PROFESSIONAL INVESTORS ESG integration overview

EXTERNAL INPUTS: ESG DATABASES INTERNAL DATABASE OUTPUTS ESG

ESG ANALYST

ESG TEAM ANALYSIS

For issuer with a weak Global Score

EQUITY & FIXED INCOME TEAMS Pascale Petit Source: Lazard Frères Gestion. As of 30 September 2019. For illustrative purpose only. 35 Lazard Fund Managers

DOCUMENT INTENDED FOR PROFESSIONAL INVESTORS Strategies Strategy profiles

Capital structure Subordinated Financial Debt - Hybrid Lazard Credit Fi Contingent

Investment horizon : 3 years Investment horizon : 5 years Senior

Currently focused on Tier 2 Tier 2

Currently focused on Additional Tier 1 Additional Tier 1

Equity

Investment objective Strategy description The investment objective is to outperform compounded ICE The Subordinated Financial Debt – Hybrid Contingent strategy BofAML Euro Financial Index, expressed in euros, net of charges, invests primarily in subordinated debt (AT1) issued by European over a recommended investment period of three years. financial institutions.

Lazard Credit Fi Fund Index: ICE BofAML Euro Financial Index. Subordinated Financial Debt - Hybrid Contingent Strategy Index: Global Contingent Capital Total Return hedged in EUR, net income reinvested. 37 Lazard Fund Managers

DOCUMENT INTENDED FOR PROFESSIONAL INVESTORS Strategies with identifiable profiles Breakdown by level of subordination

Lazard Credit Fi Subordinated Financial Debt - Hybrid Contingent

Senior Additional 11% Tier 1 17% Legacy Tier 1 20%

Tier 2 5% Legacy Tier 1 15%

Additional Tier 1 75% Tier 2 57%

Allocations are subject to change. Subordinated Financial Debt Hybrid Contingent Strategy – Representative Account Sources: Bloomberg and Lazard Frères Gestion, as of 30 September 2019. Excluding cash and UCITS 38 Lazard Fund Managers

DOCUMENT INTENDED FOR PROFESSIONAL INVESTORS Strategies with identifiable profiles Key figures

Lazard Credit Fi Subordinated Financial Debt - Hybrid Contingent

YIELD1 YIELD1

2.3% 4.0%

3Y ANNUALISED 3Y ANNUALISED PERFORMANCE1 PERFORMANCE1

5.1% 6.6%

3Y 3Y VOLATILITY1 VOLATILITY1

3.6% 4.8%

Subordinated Financial Debt Hybrid Contingent Strategy – Representative Account Source: Lazard Frères Gestion, as of 30 September 2019. 1. As of 30 September 2019. Yield in euro hedged, on a weekly basis. The yield is the counterparty of a capital risk. Past yields do not guarantee the capital or future performance. Past performance is not indicative of future performance. 39 Lazard Fund Managers

DOCUMENT INTENDED FOR PROFESSIONAL INVESTORS Strategies with identifiable profiles Key figures

Lazard Credit Fi Subordinated Financial Debt - Hybrid Contingent

AVERAGE SPREAD AVERAGE SPREAD VS. GOVERNMENT VS. GOVERNMENT

319 BPS 489 BPS

MODIFIED MODIFIED DURATION DURATION

4.3 4.4

SPREAD SPREAD DURATION DURATION

4.4 4.6

Subordinated Financial Debt Hybrid Contingent Strategy – Representative Account Source: Lazard Frères Gestion, as of 30 September 2019. 40 Lazard Fund Managers

DOCUMENT INTENDED FOR PROFESSIONAL INVESTORS For Investors looking at Income Distribution of coupons payment

Lazard Credit Fi Subordinated Financial Debt - Hybrid Contingent

4,8% 4,7% 4,6% 4,7% 4,4%

4,3% 4,1% 4,6% Average

4,0% 3,9% Average

3,7% 4,4%

3,4%

3,1% 4,2% 4,2% 3,0% 2,8%

2,5% 4,0% 2016 2017 2018 2019 2017 2018 2019

Subordinated Financial Debt Hybrid Contingent Strategy – Representative Account Source: Lazard Frères Gestion, as of 30 September 2019. The yield is the counterparty of a capital risk. Past yields do not guarantee the capital or future performance. Past performance is not indicative of future performance. 41 Lazard Fund Managers

DOCUMENT INTENDED FOR PROFESSIONAL INVESTORS E Conclusions Legend: Lazard Credit Fi Subordinated Financial Debt - Hybrid Contingent What makes us different ?

Good compromise size

Flexibility Agility Group support Large resources of the Lazard Group for Research 2019 turnover 80% Non-GSIB 79% / 71% and Portfolio Management

Communication

Availability Marketing materials 1-to-1 meeting with PM Conference call on demand Many documentation available p.39-40-41

Expertise

Rigorous Analysis Tremendous Fundamental Analysis and Track record knowledge of our Universe: Longest experience – since March 2008 no Banco Popular no Monte dei Paschi*

Deep Expertise Less well-known entities 79% / 71% Focused on Western Europe Important knowledge on Legacy Instruments 15% / 20% No exposure to China, Russia, Turkey, Brazil Recovery story 30% / 24% *in 2017. Subordinated Financial Debt Hybrid Contingent Strategy – Representative Account Source: Lazard Frères Gestion, as of 30 September 2019. For illustration purposes only. Securities are given for illustration purposes only and may not be included in our portfolio. For more information about the fund’s other characteristics and risks, please refer to the prospectus available from the company on request or on www.lazardfreresgestion.fr 43 Lazard Fund Managers DOCUMENT INTENDED FOR PROFESSIONAL INVESTORS Appendices 6 Communication – Product focus

Product Marketing Material

Product presentation (on a quarterly basis) . Market outlook . Philosophy and Investment process . Positioning and performance

Fund profile - 4 pager (on a quarterly basis) . Market environment key points . Performance snapshot . Characteristics

45 Lazard Fund Managers

DOCUMENT INTENDED FOR PROFESSIONAL INVESTORS 6 Communication – Markets thoughts & Sales Help

Thought leadership Material

Market Flash – Financial Debts Asset Class Sales Deck Letter from the Manager (Bi-monthly) (on a yearly basis) (occasional) . Systematic risk indicators . Financial Debt Universe snapshot . Views on the market . Primary market issuances . Correlation analysis . Key events and comments . Financial Debt and Money Market . Asset classes comparison . Education and regulation changes key indicators

46 Lazard Fund Managers

DOCUMENT INTENDED FOR PROFESSIONAL INVESTORS 6 Communication – Reporting Material

Reporting and Performance Analysis Material

Factsheet (on a monthly basis; 2 pages) . Positioning and performance

Performance analysis (on a monthly basis; 17 pages) . Performance contribution / attribution

47 Lazard Fund Managers

DOCUMENT INTENDED FOR PROFESSIONAL INVESTORS Reminder of Risks for Investors Fixed Income

Risk of capital loss: Currency risk: . The strategy does not provide any guarantees or capital protection. It is  The strategy may invest in securities and UCIs that are themselves therefore possible that you may not recover the full amount of your initial permitted to purchase stocks denominated in currencies other than the investment. euro. The value of these assets may decline in line with changes in the exchange rates. risk: . Risk of a fall in the value of equities, and hence in the portfolio, resulting Liquidity risk: from a change in interest rates. Because of its sensitivity range, the  This is the risk that a financial market can absorb the volumes of sell (or value of this component of the portfolio may decrease, either in the case buy) transactions only by significantly decreasing (or increasing) the of a rise in interest rates if the portfolio's sensitivity is positive, or in the price of assets when trade volumes are low or when there are market case of a fall in interest rates if the portfolio's sensitivity is negative. tensions, resulting in a possible decrease in the fund's .

Credit risk: Equity risk: . Credit risk is the risk that the borrower does not repay his debt or cannot  Investors are exposed to equity risk. Fluctuations in prices may pay the coupons during the lifetime of the security. Risk of a fall in the have a negative impact on the fund’s net asset value. The fund's NAV value of equities, and hence in the portfolio, due to a change in the credit may decrease during periods in which equity markets are falling. quality of the issuers or to the change in credit spreads. Because of its credit sensitivity range, the value of this component of the portfolio may Counterparty risk: decrease, either in the case of a rise in spreads, if the portfolio's credit sensitivity is positive, or in the case of a fall in spreads if the portfolio's  Counterparty risk is related to the use of over-the-counter products. The credit sensitivity is negative. strategy is exposed to the risk of non-payment or delivery by the counterparty with which the transaction is negotiated. This risk may result in a decline in the fund's NAV. Risks linked to contingent or subordinated securities: . The strategy may be exposed to contingent or subordinated securities. Risk associated with investment in the futures markets: Subordinated debt and contingent convertible bonds are subject to specific risks of non-payment of coupons and capital loss in certain  The use of derivatives may cause exposure to an upward or downward circumstances. At a certain solvency threshold, referred to as the change of the fund’s net asset value. "trigger” threshold, the issuer may or must suspend the payment of coupons and/or reduce the nominal value of the security or convert such bonds into shares. Notwithstanding the thresholds specified in the issuing prospectuses, the supervisory authorities may apply these rules preventively if the circumstances require, based on a subjective threshold known as the "point of non-viability". These securities expose holders to either a total or partial loss of their investment following their conversion into shares at a predetermined price or because of the application of a discount provided for contractually in the issuing prospectus or applied arbitrarily by a supervisory authority. Holders of these securities are also exposed to potentially large price fluctuations in the event that the issuer has insufficient equity or experiences difficulties.

48 Lazard Fund Managers

DOCUMENT INTENDED FOR PROFESSIONAL INVESTORS Lazard Credit Fi Characteristics Countries of registration

PVC EUR PVD EUR PC EUR PD EUR PC H-USD PC H-CHF TC EUR RVC EUR RVD EUR Management company Lazard Frères Gestion Custodian Caceis Bank Delegated agent for the centralisation of orders Caceis Bank and Lazard Frères Banque, on behalf of clients for whom it provides custody account-keeping services from December 4th 2017 Legal form French open-end AMF classification International bonds and debt securities Subject to European Directive 2009/65/EC Yes Yes Yes Yes Yes Yes Yes Yes Yes PEA eligible No No No No No No No No No Inception date 7-Mar.-08 29-Jul.-14 14-Apr.-14 31-Jan.-14 5-Jan.-16 20-Feb.-17 31-Jan.-18 3-Jul.-09 31-Jan.-18 Currency Euro Euro Euro Euro USD CHF Euro Euro Euro ISIN code FR0010590950 FR0012074151 FR0011844034 FR0013306743 FR0013076932 FR0013236791 FR0013305935 FR0010752543 FR0013306735 Appropriation of distributable amounts: Accumulation Distribution Accumulation Distribution Accumulation Accumulation Accumulation Accumulation Distribution allocation of net income Accumulation Accumulation Accumulation Appropriation of distributable amounts: CHARACTERISTICS Accumulation and/or distribution Accumulation and/or distribution Accumulation Accumulation Accumulation Accumulation and/or distribution allocation of net realised capital gains and/or retained and/or retained and/or retained Benchmark ICE BofAML Euro Financial Index Minimum initial subscription None 1 share 500 000 euros 1 share 1 share 1 share ≥ 500 000 euros 1 share 1 share Frequency of NAV calculation Daily Daily Daily Daily Daily Daily Daily Daily Daily

Execution of orders Based on the next NAV for orders placed before 12:00am ORDERS PLACING PLACING Subscription / redemption settlement date D (NAV date) + 2 business day / D (NAV date) +2 business days Ongoing charges(1) 0.28% 0.28% 0.66% 0.66% 0.71% 0.72% 0.66% 0.95% 0.95% 0.265% of the net 0.265% of the net 0.665% of the net 0.665% of the net 0.715% of the net 0.715% of the net 0.665% of the net 0.965% of the net 0.965% of the net Financial management fees maximum (incl. asset (excluding asset (excluding asset (excluding asset (excluding asset (excluding asset (excluding asset (excluding asset (excluding asset (excluding Taxes) UCIs managed by UCIs managed by UCIs managed by UCIs managed by UCIs managed by UCIs managed by UCIs managed by UCIs managed by UCIs managed by LFG) LFG) LFG) LFG) LFG) LFG) LFG) LFG) LFG) Administrative fees external to the management 0.035% of the net asset company maximum (incl. Taxes) Not retained by the Subscription fee maximum 4% max 4% max 4% max 4% max 4% max 4% max 4% max 4% max 4% max Fund (incl. Taxes) Retained by the Fund None None None None None None None None None Not retained by the FEES None None None None None None None None None Redemption fee maximum Fund (incl. Taxes) Retained by the Fund None None None None None None None None None

30% of the Fund's 30% of the Fund's 30% of the Fund's 30% of the Fund's outperformance outperformance outperformance outperformance relative to the relative to the Performance fees with High Water Mark relative to the relative to the index. This fee will None None None None None index. This fee will index. This fee will index. This fee will be capped at 2%. be capped at 2%. be capped at 2%. be capped at 2%. Last exercise: Last exercise: Last exercise: 0,0% Last exercise: 0,0% 0.0% 0.0%

(1) Ongoing charges do not include: outperformance fees and transShare charges except in the case of subscription and/or redemption fees paid by the Fund when it buys or sells units in another collective management vehicle. The data communicated, which include management and operating costs as well as transShare fees charged to the Fund, are based on the previous exercise, ended in March 2019. These figures may vary from year to year. 49 Lazard Fund Managers For more information about the fund’s other characteristics and risks, please refer to the prospectus available from the company on request or on www.lazardfreresgestion.fr DOCUMENT INTENDED FOR PROFESSIONAL INVESTORS Lazard Credit Fi Risks

. Risk of capital loss: It is possible that the Fund may not meet its  Equity risk: The Fund may be subject to significant fluctuations in the performance objectives. The fund is not guaranteed or protected. Therefore underlying equities through possible in convertible bonds. investor may not recover its initial investment. The equity risk will remain accessory (less than 10%).  Exchange rate risk: Besides euro-denominated securities, the Fund may . Interest rate risk: There is a risk of a fall in the value of bonds and other invest up to 75% of its assets in securities denominated in US dollars fixed-income securities and instruments, and hence in the portfolio, and/or pounds sterling. The resulting exchange rate risk (unhedged) resulting from a change in interest rates. may not exceed 10% of the Fund's assets.

. Credit risk: A bond issuer may default. Thus, such a default could bring  Counterparty risk: This is the risk associated with the Fund’ use of about a fall in the Fund’ net asset value. Even where there is no issuer’s financial futures, over-the-counter financial instruments and/or transactions involving temporary purchases and sales of securities. default, market variations in credit spreads may result in negative These transactions, entered into with one or more eligible performance. These risks are even more important as the bond issuer’s counterparties, potentially expose the Fund to a risk of failure of any quality declines. The fall in net asset value may be even greater as the Fund such counterparty, which may lead to default on payment. is invested in debt belonging to the speculative or ‘high yield’ category. This Fund must be considered as speculative for its investment holdings in  Derivative instrument risk: The Fund may hold up to 100% of its net securities with low rating. Furthermore, the use of speculative or ‘high yield’ asset value with a synthetic exposure to interest rate instruments and/or index instruments. The use of derivative products on organised or over- securities may involve a risk of greater fall in net asset value. the-counter markets may expose the net asset value to strong upward or downward variations, through underlying which react strongly to market . Risks linked to contingent or subordinated securities: The Fund maybe fluctuations. exposed to contingent or subordinated securities. Holders of those securities can partially or totally lose their investments following the conversion into equities at a pre-determined price or a contractual haircut  Risk scale* : as defined in clauses of the issue's prospectus, or arbitrarily decided by a Supervisor. Holders of those securities can also be exposed to significant Lower risk, returns are likely to be Higher risk, returns are likely to be prices fluctuations in case of lack of solvency requirements or issuer's lower higher difficulties. 1 2 3 4 5 6 7 . Liquidity risk: This relates to the difficulty or impossibility of selling the securities held in the portfolio at the appropriate time and at the portfolio’s *Exposure in the interest rate and exchange explains the UCITS ranking in this category. The valuation price, on account of the reduced size of the market or the absence used historical data could not give a reliable indication of the future UCITS risk profile. Nothing guarantees that the above category remains unchanged, and the ranking may evolve in the time. of volume on the market on which these securities are usually traded. The lowest category is not synonymic of risk-free investment. Capital is not guaranteed.

For more information about fund’s other characteristics and risks, please refer to the prospectus available from the company on request or on www.lazardfreresgestion.fr 50 Lazard Fund Managers Lazard Subordinated Financial Debt – Hybrid Contingent GIPS Composite Information

Source: Lazard. As of 30 June 2019. Past performance does not guarantee future performance. Performance over less than one year is provided for illustration purposes only. These performance data are provided for information purposes only and should be assessed over the recommended investment period. Information reserved for professional investors. Range of standard management fees takes into consideration share class charges of all portfolios contained within this composite. 51 Lazard Fund Managers Disclaimer

This is a financial promotion and is not intended to constitute investment advice. Lazard Credit Fi is a French (Fonds commun de placement), authorised and regulated as UCITS by the Autorité des marchés financiers and managed by Lazard Frères Gestion SAS. Copies of the full Prospectus, the relevant Key Investor Information Document (KIID) and the most recent Report and Accounts are available in English, and other languages where appropriate, on request from the address below or at www.lazardfreresgestion.fr. Investors and potential investors should read and note the risk warnings in the Prospectus and relevant KIID. Past performance is not a reliable indicator of future results. The value of investments and the income from them can fall as well as rise and you may not get back the amount you invested. Any yield quoted is gross and is not guaranteed. It is subject to fees, taxation and charges within the portfolio and the investor will receive less than the gross yield. There can be no assurance that the portfolio's objectives or performance target will be achieved. Any views expressed herein are subject to change. The returns from your investment may be affected by changes in the exchange rate between the portfolio's base currency, the currency of the portfolio's investments, your share class and your home currency. The information provided herein should not be considered a recommendation or solicitation to purchase, retain or sell any particular security. It should also not be assumed that any investment in these securities was or will be profitable. The contents of this document are confidential and should not be disclosed other than to the person or persons for whom it is intended.

FOR FINANCIAL PROFESSIONAL USE ONLY.

52 Lazard Fund Managers

DOCUMENT INTENDED FOR PROFESSIONAL INVESTORS Disclaimer

Fixed income: Yields from bonds reflect in part the risk rating of the bond issuer. Investment in lower rated bonds increases the risk of default on repayment and the risk to capital of the portfolio. High yielding assets may carry a greater risk of capital values falling or have limited prospects of capital growth or recovery. Investment in high yield securities involves a high degree of risk to both capital and income. Yields from bonds reflect in part the risk rating of the bond issuer. Investment in lower rated bonds increases the risk of default on repayment and the risk to capital of the portfolio. Derivatives: The portfolio invests in financial derivative instruments ("FDIs"). While the use of FDIs can be beneficial, they also involve risks different from, and in certain cases, greater than, the risks presented by more traditional investments. FDIs may be subject to sudden, unexpected and substantial price movements that are not always predictable. This can increase the volatility of the portfolio’s Net Asset Value. FDIs do not always totally track the value of the securities, rates or indices they are designed to track. The use of FDIs to gain greater exposure to securities, rates or indices than by a direct investment, increases the possibility for profit but also increases the risk of loss. The Fund is also subject to the risk of the insolvency or default of its counterparties to FDI investments. In such events the Fund may have limited recourse against the counterparty and may experiences losses. S&P Credit Ratings: This may contain information obtained from third parties, including ratings from credit ratings agencies such as Standard & Poor’s. Reproduction and distribution of third party content in any form is prohibited except with the prior written permission of the related third party. Third party content providers do not guarantee the accuracy, completeness, timeliness or availability of any information, including ratings, and are not responsible for any errors or omissions (negligent or otherwise), regardless of the cause, or for the results obtained from the use of such content. Third party content providers give no express or implied warranties, including, but not limited to, any warranties of merchantability or fitness for a particular purpose or use. Third party content providers shall not be liable for any direct, indirect, incidental, exemplary, compensatory, punitive, special or consequential damages, costs, expenses, legal fees, or losses (including lost income or profits and opportunity costs or losses caused by negligence) in connection with any use of their content including ratings. Credit ratings are statements of opinions and are not statements of fact or recommendations to purchase, hold or sell securities. They do not address the suitability of securities or the suitability of securities for investment purposes, and should not be relied on as investment advice. JP Morgan: Information has been obtained from sources believed to be reliable but J.P. Morgan does not warrant its completeness or accuracy. The Index is used with permission. The Index may not be copied, used or distributed without J.P. Morgan’s prior written approval. Copyright 2018, J.P. Morgan Chase & Co. All rights reserved. FOR FINANCIAL PROFESSIONAL USE ONLY.

53 Lazard Fund Managers

DOCUMENT INTENDED FOR PROFESSIONAL INVESTORS Disclaimer

This strategy is available by way of either a Fund or a segregated mandate, subject to any local regulatory restrictions or requirements. United Kingdom, Finland, Ireland, Denmark, Norway and Sweden: The information is approved, on behalf of Lazard Fund Managers (Ireland) Limited, by Lazard Asset Management Limited, 50 Stratton Street, London W1J 8LL. Incorporated in England and Wales, registered number 525667. Lazard Asset Management Limited is authorised and regulated by the Financial Conduct Authority. Germany and Austria: Lazard Asset Management (Deutschland) GmbH, Neue Mainzer Strasse 75, 60311 Frankfurt am Main is authorized and regulated in Germany by the BaFin. Belgium and Luxembourg: This information is provided by the Belgian Branch of Lazard Fund Managers Ireland Limited, at Blue Tower Louise, Avenue Louise 326, Brussels, 1050 Belgium. France: This information is provided by Lazard Frères Gestion SAS , 25, rue de Courcelles 75 008 Paris. Italy: This information is provided by the Italian branch of Lazard Asset Management (Deutschland) GmbH. Lazard Asset Management (Deutschland) GmbH Milano Office, Via Dell'Orso 2 - 20121 Milan is authorized and regulated in Germany by the BaFin. Netherlands: This information is provided by the Dutch Branch of Lazard Fund Managers (Ireland) Limited, which is registered in the Dutch register held with the Dutch Authority for the Financial Markets (Autoriteit Financiële Markten). Spain and Portugal: This information is provided by the Spanish Branch of Lazard Fund Managers Ireland Limited, at Paseo de la Castellana 140, Piso 10, Letra E, 28046 Madrid and registered with the National Securities Market Commission (Comisión Nacional del Mercado de Valores or CNMV) under registration number 18. Switzerland: Lazard Asset Management Schweiz AG, Usteristraße 9, CH-8001 Zurich. Authorised and regulated in Switzerland by the FINMA. FOR FINANCIAL PROFESSIONAL USE ONLY.

54 Lazard Fund Managers

DOCUMENT INTENDED FOR PROFESSIONAL INVESTORS