2016 · As we look back on 2016, we send our sincere gratitude to our clients for the honor of...

2016YEAR IN REVIEWMiddle Market Advisory Update

“Advice is not one-size fits-all; we combine sector insight, judgment and global

relationships to provide ideas and solutions tailored to our clients’ needs.”

DAVID J. SOLOMONCEO, Lazard Middle Market

Dear Friends,

As we look back on 2016, we send our sincere gratitude to our clients for the honor of being your trusted advisor. We are proud of what we have accomplished together and treasure these relationships.

A STRONG YEARIn 2016, Lazard’s middle market advisory practice completed 188 middle market transactions worldwide, including 84 involving North American companies, with an aggregate value of more than $21 billion in value.

TRANSACTION MIXMergers and acquisitions comprised 153 of our middle market transactions, including 94 sell-side and 59 buy-side. Our restructuring practice was quite busy with 15 assignments, reflecting continued stress in energy, mining, and other sectors. We also completed 20 corporate finance advisory transactions.

TAILORED SOLUTIONSWe believe in highly-customized transactions that fit client circumstances, rather than rigid M&A auctions. Similarly, our growing team in corporate finance provides tailored debt and equity solutions for acquisitions, growth, and capital structure.

NEW MANAGING DIRECTORS• Garrett Baker joined the firm as a Managing Director and Head of Telecom, Media &

Technology in New York. He has established a national reputation as one of the top advisors in middle market telecom.

• Navtej Bhullar joined the firm as a Managing Director, focusing on middle market healthcare service providers within our Healthcare group in New York.

• Giles Corner was promoted to Managing Director, focusing on mid-market private equity in London.

• Jeff Saxton was promoted to Managing Director, focusing on managed care services within our Healthcare group in Charlotte.

• Michael Schwartz joined the firm as a Managing Director and Head of Corporate Finance Advisory in New York. He has extensive experience advising companies on debt and equity financing transactions, working closely with our sector-focused teams.

ADDITIONAL PROMOTIONSWe are pleased to announce the following promotions, reflecting our commitment to develop our exceptional professionals:• Jim Reilly, Director - Industrials (Minneapolis)• Ryan Foley, Vice President - Industrials (Chicago)• Alex Grimstad, Vice President - Industrials (Minneapolis)• Mark Noel, Vice President - Business Services & Education (Minneapolis)• Jon Tenan, Vice President - Consumer Retail (New York)

Best wishes to you for a successful 2017. We look forward to working with you this year.

Sincerely,

Business Services & Education

Mergers &Acquisitions

Corporate Finance

Restructuring

81%

11% 8%

$47 billiondisclosed value globally

Lazard completed

transactions in the middle market

Mergers & Acquisitions is our core focus.

Corporate Finance represents a growing

segment of our practice. Our Restructuringgroup brings world-

leading expertise to themiddle market.

StrategicFinancial 56%44%

A higher percentage of our clients are being sold to strategic buyers

Lazard’s middle market advisory practice is tailored to serving the unique needs of mid-sized companies, while delivering the sophisticated services, global perspectiveand broad resourcesof Lazard.

188Worldwide

84North America

2016 Highlights

0 5 10 15 20 25 30 35

33%21%

20%15%

6%

Industrials

Food & Consumer Retail

Telecom, Media & Technology

Business Services & Education

Heatlhcare

Other 5%

Lazard is consistently ranked one of the top advisors for deals under $1 billion in value based on number of transactions

Exceptional depth of expertise across sectors

and geographies

2016Middle Market Global Ranking

Leading Middle Market Advisor

Middle Market Deals by Sector

2016 Highlights Global Expertise

THOMSON

Foreign Buyer Nations

33%

49%Sell-side advisory transactions sold to foreign buyers

All Sellers

North American Sellers

2016 Select Middle Market Transactions

Leading global middle market advisor offering a wide array of financial advisory services to

mid-sized clients around the world

2016 Select Middle Market Transactions

20 15153Corporate Finance

RestructuringMergers & Acquisitions

Deep Sector Expertise

Consumer Retail

Sean DaughertyConsumer Products+1 312 928 7072sean.daugherty@lazard.comRyan HaysRetail & Direct Marketing+1 312 928 7159ryan.hays@lazard.com

Nathan PundActive, Outdoor & Tactical+1 704 719 5843nathan.pund@lazard.com

Eric Roth, Group HeadConsumer Retail+1 212 418 3225eric.roth@lazard.com

David SolomonConsumer Retail+1 312 928 7077david.solomon@lazard.com

FinancialSponsors

David Santoni+1 612 371 6529david.santoni@lazard.com

Steven Tipler+1 612 371 6559steve.tipler@lazard.com

Healthcare

Michael Wiggins, Group HeadPharma Distribution & Outsourcing+1 212 418 3214michael.wiggins@lazard.com

Jeff SaxtonManaged Care Services +1 704 719 5846jeff.saxton@lazard.com

Navtej BhullarHealthcare Service Providers +1 212 418 3231navtej.bhullar@lazard.com

Joseph ConteFacilities ManagementMarketing & Media Services+1 212 418 3201joseph.conte@lazard.com

John Lonnquist, Group Co-HeadTech-Enabled Services & BPOFacilities ManagementHuman Capital Management+1 612 371 6560john.lonnquist@lazard.com

Chris SimmonsFacilities ManagementInformation & IT Services+1 612 371 6579chris.simmons@lazard.com

BusinessServices & EducationEd King, Group Co-HeadTech-Enabled Services & BPOEducation Services+1 312 928 7079ed.king@lazard.com

Zack ShahEducation ServicesHuman Capital Management+1 312 928 7158zack.shah@lazard.com

Telecom, Media& Technology

Mark Dolins*Software +1 617 342 8020mark.dolins@lazard.com

John Gnuse*Software+1 415 623 5016john.gnuse@lazard.com

Michael Murray*Hardware+1 617 342 8010michael.murray@lazard.com

Patrick Mastan*Software+1 617 342 8037patrick.mastan@lazard.com

Jason Tavano*Hardware+1 415 623 5055jason.tavano@lazard.com

Marshall PhelpsSports/Entertainment Media & Services+1 212 418 3204marshall.phelps@lazard.com

Garrett Baker, Group HeadTelecom & Digital Media+1 212 418 3230garrett.baker@lazard.com

Deep Sector Expertise

Europe MiddleMarket Advisory

Charles Andrez*+33 1 44 13 08 69Francecharles.andrez@lazard.com

Giles Corner*+44 20 7187 2010United Kingdomgiles.corner@lazard.com

Antonio Da Ros*+39 02 7231 2227Italyantonio.daros@lazard.com

Belen del Valle-Iturriaga*+34 91 781 8491Spainbelen.delvalle@lazard.com

Michele Marocchino*+39 02 7231 2263Italymichele.marocchino@lazard.com

Christof Soendermann*+49 69 1700 73221Germanychristof.soendermann@lazard.com

Food & AgricultureDavid Iverson, Group Head+1 612 371 6503david.iverson@lazard.com

Adam Wieden+1 612 371 6536adam.wieden@lazard.com

Restructuring & Recapitalization

Jason Cohen +1 212 418 3228jason.cohen@lazard.com

Andrew Torgove, Group Head+1 212 418 3211andrew.torgove@lazard.com

Dermott O’Flanagan +1 212 418 3229dermott.oflanagan@lazard.com

CorporateFinanceMichael Schwartz, Group Head+1 212 418 3227michael.schwartz@lazard.com

John BresnahanOilfield Products & Services +1 713 423 8615john.bresnahan@lazard.com

Andrew Chang*Oilfield Products & Services+1 713 236 4639andrew.j.chang@lazard.com

Jeff ChenChemicals+1 612 371 6596jeffrey.chen@lazard.com

Dave HallettTransportation, Logistics & Distribution+1 612 371 6564david.hallett@lazard.com

Matt DaltonIndustrial Products & Services+1 612 371 6540matthew.dalton@lazard.com

Doug Fordyce*Oilfield Products & Services+1 713 236 4640doug.fordyce@lazard.com

Jim ReillyIndustrial Products & Services+1 612 371 6553james.reilly@lazard.com

Stephen Henry*Aerospace & Defense+1 310 601 3452stephen.henry@lazard.com

Doug LawsonPackaging & Plastics+1 704 719 5844doug.lawson@lazard.com

Michael Richter, Group Head*Aerospace & Defense+1 310 601 3444michael.richter@lazard.com

Jim ConniffEngineered IndustrialsIndustrial Products & Services+1 312 928 7074jim.conniff@lazard.com

Robert Frost, Group HeadChemicalsIndustrial Products & Services+1 612 371 6591robert.frost@lazard.com

Industrials

Deep Sector ExpertiseOur senior bankers are national leaders in their specific industry segments, bringing knowledge of sector dynamics and key participants.

Global Access to Decision MakersLazard’s long-term relationships with CEOs, board members and sponsors on a worldwide basis provide unparalleled buyer access and strategic insight for our middle market clients.

Transaction Craftsmanship, Trusted AdviceOur sophisticated professionals combine the highest level of transaction leadership with astute judgment to provide customized, analytically robust solutions.

43global offices

27countries

Our Differentiated Strategy

* Employees of Lazard Frères & Co. (United States), Lazard & Co., Limited (United Kingdom), Lazard Asesores Financieros S.A. (Spain), Lazard S.r.l. (Italy), or Lazard Frères SAS (France). Other bankers named are employees of Lazard Middle Market LLC. References to “Lazard” include entities named above and other subsidiaries of Lazard Ltd.

MINNEAPOLISLazard Middle Market LLC80 South Eighth StreetSuite 2700Minneapolis, MN 55402+1 612 339 0500

CHICAGOLazard Middle Market LLC300 North LaSalle StreetSuite 2300Chicago, IL 60654+1 312 928 0760

HOUSTONLazard Middle Market LLCJPMorgan Chase Tower600 Travis StreetSuite 2300Houston, TX 77002+1 713 423 8600

NEW YORKLazard Middle Market LLC600 Fifth AvenueSuite 800New York, NY 10020+1 212 758 8575

CHARLOTTELazard Middle Market LLC227 West Trade StreetSuite 1900Charlotte, NC 28202+1 704 208 5820

FRANKFURTLazard & Co., GmbHNeue Mainzer Strasse 69-75Frankfurt 60311+49 69 170073 0

LONDONLazard & Co., Limited50 Stratton StreetLondon W1J8LL+44 20 7187 2000

MADRIDLazard Asesores Financieros S.A.Edificio FortunyRafael Calvo 39 AMadrid 28010+34 91 781 8480

MILANLazard S.r.l.Via Dell’Orso 2Milan 20121+39 02 723121

PARISLazard Frères SAS121, Boulevard HaussmannParis Cedex 08Paris 75382+33 1 44 13 01 11