Global Listed Infrastructure:

In a Class of Its Own Edward P. Keating

Senior Vice President This presentation and all research and materials enclosed are property of Lazard Asset Management LLC.

Information and opinions presented have been obtained or derived from sources believed by Lazard to be reliable. Lazard makes no representation as to their accuracy or completeness. All opinions expressed herein are as of the date of this presentation and are subject to change.

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Inflation protection: stronger than commodities, REITS, timber, etc.

Stability: Robust, highly forecastable earnings; defensive companies

Yield : Stable earnings allow for sustainably high dividend yields

Attractive: Significantly undervalued today

Global Listed Infrastructure: In a Class of its Own Key Takeaways

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400+ Listed Infrastructure Companies, $3 Trillion+ in Market Capitalization Large, Diverse, Liquid Universe

Infrastructure comprises the physical assets that a society requires to facilitate its orderly operation. They include:

In recent years, there has been an international trend to increased private sector ownership and management of these assets.

Transport Toll roads

Airports

Seaports

Rail

Energy Gas & electricity

transmission, distribution & generation

Water Pipelines &

treatment plants

Communication Broadcast

Satellite

Cable

Social Hospitals

Schools

Prisons

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Privately Owned, Listed Airports (stocks!)

Mexico (30+): Monterrey, Los Cabos, Cancun, Guadalajara

Europe (20+): Charles de Gaulle, Zurich, Vienna, Heathrow, Milan, Rome

Asia/Australia (25+): Sydney, Melbourne, Auckland, Beijing, Guangzhou, Bangkok

USA (0)

As of 31 December 2010 The information identified above should not be considered a recommendation or solicitation to purchase or sell any security. It should not be assumed that any investment was, or will be profitable. Source: Lazard Asset Management.

Frankfurt, Germany

Copenhagen, Denmark

Zurich, Switzerland Vienna,

Austria

Sydney, Australia

Monterrey, Mexico

Tokyo, Japan

Heathrow, UK

Publicly listed infrastructure companies form the largest opportunity set for global infrastructure investors with a total market cap more than US$3.0 Trillion.

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Attractive characteristics that can be found in infrastructure:

Long-life

Low risk of capital loss

Inflation linked revenues

Low correlations with major asset classes

Key risks associated with investing in Infrastructure:

Regulatory and political

Leverage

Real interest rates

Attractive Investment Characteristics Why Invest in Infrastructure?

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Expected Risk and Return

For illustrative purposes only. Expected returns do not represent a promise or guarantee of future results and are subject to change.

Cash

Fixed Income

Listed Equities

Alternatives

Preferred Infrastructure

Expected Return

Expected Volatility

Real Assets

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Attractive Characteristics Offer Flexibility Allocating to Global Listed Infrastructure

Asset Class Rationale for Listed Infrastructure Alongside…

Infrastructure Largest infrastructure investment universe, diversification, liquidity, transparency

Private Equity infrastructure

Real Assets Contractual or regulated inflation protection REITS, Timber, Commodities

Equities Lower risk, sustainable yield premium, diversifying

Global Equities

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Not All Infrastructure Is Created Equal…

Preferred

The securities identified are not necessarily held by Lazard Asset Management and should not be considered a recommendation or solicitation to purchase or sell these securities.

Strict adherence a Preferred Infrastructure investment philosophy is critical to delivering on the attractive characteristics of infrastructure

Regulated Utility (e.g., Southern Company)

Non-Preferred

Other Preferred examples…

Merchant Electricity Generator (e.g., E.On; Exelon)

Toll roads

Airports

Broadcast towers

OECD nations

Construction companies, road services

Airlines, baggage handling

Telecommunication service companies

Most emerging market nations

Other Non-Preferred examples…

Monopoly like assets

Regulated return

Explicit/implicit inflation pass through

= Stable, consistent pattern of return

Competitive markets

Commodity price volatility

High fixed cost structure

= Volatile, uncertain pattern of return

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Not All Infrastructure is Created Equal…

Regulated Utility: Southern Company 5 Year Results EPS Growth: +20% Stock Performance: +15%

Merchant Electricity Generator : Exelon 5 Year Results EPS Growth: -44% Stock Performance: -63%

2.4

2.9

3.4

3.9

4.4

25

35

45

55

65

75

85

95

Jan08

Jun08

Nov08

Apr09

Sep09

Feb10

Jul10

Dec10

May11

Oct11

Mar12

Aug12

Jan13

Exelon Share PriceExelon EPS

2.2

2.3

2.4

2.5

2.6

2.7

2.8

25

30

35

40

45

50

Jan08

Jun08

Nov08

Apr09

Sep09

Feb10

Jul10

Dec10

May11

Oct11

Mar12

Aug12

Jan13

Southern Company Share PriceSouthern Company EPS

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Compelling Real Asset Characteristics of Preferred Infrastructure

“An Inflation Linked Bond with Rising Coupons”

- Warren Buffett

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Three key criteria investors need to consider when considering Real Assets:

Strength of Inflation Pass Through

• What is the inflation pass-through mechanism? Contractual or market reliant?

Risk Profile

• What are the underlying risks of the asset type & cash flow stream?

Valuation

• What are the key risks to valuation?

• Are current asset prices materially above or below intrinsic value?

A Framework for Evaluating Real Assets

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Contractual Asset Type TIPS Preferred Infrastructure Pricing Mechanism Contractual (CPI) Contractual or Regulated

(Tariffs/Rates)

Market Structure NA Monopoly

Demand Volatility NA Low

Risk of Capital Loss Low Low

Inflation Pass Through: Contractual or Market Forces?

Source: Lazard

Market Forces Asset Type Real Estate Timber Commodities Pricing Mechanism Supply & Demand

(Rents) Supply & Demand

(Marginal Cost) Supply & Demand

(Marginal Cost)

Market Structure Competitive Competitive Competitive

Demand Volatility Moderate Moderate High

Risk of Capital Loss Moderate Moderate Moderate/High

Stronger Inflation Protection

Weaker Inflation Protection

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120

100

80

60 1850

Equally-weighted Base Metals Real Price Index (Log)

1870 1890 1910 1930 1950 1970 1990 2010

Commodities: Inflation protection? Negative real returns since 1845

The Economist Industrial Commodity-price Index Real1 Terms, 1845-2010

Adjusted by US GDP deflator Source: The Economist

Over the long-run, as technology and efficiencies have improved, commodity prices have declined in real terms—that is, they have produced a negative real return

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0

20

40

60

80

100

120

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

MSCI WorldLazard PIU

Preferred Infrastructure vs. MSCI World Index Stability of Earnings: Preferred Infrastructure

As of 30 September 2013 Estimates based on historical financial accounts of companies held in the Lazard Global Listed Infrastructure strategy. Statistics are calculated using an index style construction methodology. Investment characteristics are based upon a portfolio that represents the proposed investment for a fully discretionary account. All estimates are based on current information and are subject to change. Past performance is not a reliable indicator of future results. Source: Lazard, UBS

2002 EPS: Lazard PIU -6.0% MSCI World -23.0%

2009 EPS: Lazard PIU -3.0% MSCI World -27.0%

Earnings $

Not all infrastructure companies will exhibit stable earnings – selectivity is critical

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3.6% Lazard GLI

3.3% UBS 50/50 Index

2.3% MSCI World Index

Stable Earnings Can Lead to Consistent Yield Premium Sustainable Yield Premium: Lazard GLI

As of 31 December 2013 Estimates based on historical financial accounts of companies held in the Lazard Global Listed Infrastructure strategy. Statistics are calculated using an index style construction methodology. Investment characteristics are based upon a portfolio that represents the proposed investment for a fully discretionary account. All estimates are based on current information and are subject to change. Past performance is not a reliable indicator of future results. Source: Lazard, UBS*, MSCI

2.0

3.0

4.0

5.0

6.0

7.0

8.0

Dec

05

Jun

06

Dec

06

Jun

07

Dec

07

Jun

08

Dec

08

Jun

09

Dec

09

Jun

10

Dec

10

Jun

11

Dec

11

Jun

12

Dec

12

Jun

13

Dec

13

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Real Assets: Risk Profiles Infrastructure Helps Increase Returns, Decrease Risk

Infrastructure is the lowest risk real asset (after TIPS) – risk/reward between equities and bonds

REITS and commodities have had higher risk than equities

Infrastructure has low correlations with REITS, Commodities and TIPS

As of 28 February 2013 1 Index data represented by monthly returns derived from the following indexes: CPI-U All Items Less Food And Energy US City Average SA, Barclays Capital US Aggregate, Barclays

Capital Global Aggregate Bond, Barclays Capital US Govt Inflation-Linked, UBS Global Infrastructure & Utilities 50-50 Index, S&P GSCII, FTSE NAREIT All Equity REITs, FTSE EPRA/NAREIT Developed Net Return , S&P 500, MSCI The World Index, MSCI EMF

Source: Factset

Annualized Returns and Volatility over 5, 10 & 15 years (31 December 2013)

5 Years 10 Years 15 Years Description1 Return Volatility Return Volatility Return Volatility U.S Inflation (CPI) 1.7 0.2 1.9 0.3 2.0 0.3 Bonds US Bonds 4.4 2.9 4.5 3.4 5.2 3.5 Global Bonds 3.9 5.7 4.5 5.8 4.8 5.9 Real Assets US TIPS 5.4 6.0 4.9 6.5 Infrastructure 9.9 14.6 9.5 14.9 6.5 14.6 Commodities 3.9 19.5 0.7 23.9 6.2 23.4 USA REITS 16.9 25.6 8.6 25.8 10.5 22.2 Equities S&P 500 17.9 15.7 7.4 14.6 4.7 15.5 MSCI World 15.7 17.1 7.6 15.9 4.8 16.0 MSCI EM 15.1 22.4 11.5 23.8 11.2 23.5

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Asset Type Preferred Infrastructure

Real Estate Timber Commodities

Key Valuation Drivers

Allowed Returns/Tolls

Capital Expenditures

Long Run Traffic/PAX/Volume

Rental Yields

Local Supply & Demand

Capitalization Rate

Timber Growth Rates

Harvest Rates

Global Supply & Demand

Short, Medium & Long Run Supply & Demand

Marginal Cost

Resource Lives

Forecasting Risk Low Moderate Moderate High

Valuation Risk Low Moderate Moderate High

Real Assets: Valuation

Preferred Infrastructure assets have relatively low valuation risk As regulated monopolies, assessing supply & demand and long run market pricing is

largely irrelevant when valuing Preferred Infrastructure assets

Preferred Infrastructure valuations should therefore be relatively stable over time

We believe valuation is the most important criteria: overpayment = underperformance

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Market Opportunity: Transurban

As of 12 July 2013 Past performance is not a reliable indicator of future results. The security identified above is not necessarily held by Lazard for all client portfolios, and should not be considered a recommendation or solicitation to purchase or sell this security. It should not be assumed that any investment in this security was, or will be profitable. Source: Factset, Lazard

Share prices oscillate around intrinsic value thus creating both buying and selling opportunities

Transurban Intrinsic Value to Share Price

-60%

-40%

-20%

0%

20%

40%

60%

Jan-00 Oct-00 Jul-01 Apr-02 Jan-03 Oct-03 Jul-04 Apr-05 Jan-06 Oct-06 Jul-07 Apr-08 Jan-09 Oct-09 Jul-10 Apr-11 Jan-12 Oct-12 Jul-13

Intrinsic Value

% Share price above/below Intrinsic value

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Summary Allocating to Global Listed Infrastructure

Investors seeking increased inflation protection, lower risk and attractive returns are increasingly allocating to Infrastructure

Existing Allocation

Rationale for Preferred Infrastructure

TIPS Increased return Tips offer very little real yield and debt market return expectations are muted

Commodities Increased inflation protection Commodities have provided negative real returns over the long run and recently have been very volatile

REITS Lower risk profile REITS have been one of the more volatile global asset classes

Importantly, we believe many listed infrastructure companies are trading at very attractive valuations, presenting an attractive opportunity for long term investors

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Jay Boothby Capital Advisory Group Office: 212.632.6326 James.Boothby@lazard.com

Contact Information Lazard Asset Management

Edward Keating Global Listed Infrastructure Office: 212.632.6953 Edward.Keating@lazard.com

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Equity securities will fluctuate in price; the value of your investment will thus fluctuate, and this may result in a loss. Securities in certain non-domestic countries may be less liquid, more volatile, and less subject to governmental supervision than in one’s home market. The values of these securities may be affected by changes in currency rates, application of a country’s specific tax laws, changes in government administration, and economic and monetary policy. Emerging market securities carry special risks, such as less developed or less efficient trading markets, a lack of company information, and differing auditing and legal standards. The securities markets of emerging market countries can be extremely volatile; performance can also be influenced by political, social, and economic factors affecting companies in emerging market countries. Securities and instruments of infrastructure companies may be more susceptible to adverse economic or regulatory occurrences affecting their industries. Infrastructure companies may be subject to a variety of factors that may adversely affect their business or operations, including additional costs, competition, regulatory implications and certain other factors. Certain information included herein is derived by Lazard in part from an MSCI index or indices (the “Index Data”). However, MSCI has not reviewed this product or report, and does not endorse or express any opinion regarding this product or report or any analysis or other information contained herein or the author or source of any such information or analysis. MSCI makes no express or implied warranties or representations and shall have no liability whatsoever with respect to any Index Data or data derived there from.

Disclosures

�Global Listed Infrastructure: �In a Class of Its OwnKey TakeawaysLarge, Diverse, Liquid UniversePrivately Owned, Listed Airports (stocks!)Why Invest in Infrastructure? Expected Risk and ReturnAllocating to Global Listed InfrastructureNot All Infrastructure Is Created Equal…Not All Infrastructure is Created Equal…Compelling Real Asset Characteristics�of Preferred InfrastructureA Framework for Evaluating Real Assets Inflation Pass Through: Contractual or Market Forces? Commodities: Inflation protection? Stability of Earnings: Preferred InfrastructureSustainable Yield Premium: Lazard GLIReal Assets: Risk ProfilesReal Assets: Valuation�Market Opportunity: TransurbanAllocating to Global Listed InfrastructureLazard Asset ManagementDisclosures