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October 2017
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This Presentation contains forward looking statements, which reflect theCompany’s current views with respect to, among other things, its operations andfinancial performance. You can identify these forward looking statements by theuse of words such as “outlook,” “believes,” “expects,” “potential,” “continues,”“may,” “will,” “should,” “seeks,” “target,” “approximately,” “predicts,”“intends,” “plans,” “estimates,” “anticipates” or the negative version of thesewords or other comparable words. Such forward looking statements are subjectto various risks and uncertainties. Accordingly, there are or will be importantfactors that could cause actual outcomes or results to differ materially from thoseindicated in these statements. For a further discussion of such factors, youshould read the Company’s filings with the Securities and ExchangeCommission. The Company undertakes no obligation to publicly update orreview any forward looking statement, whether as a result of new information,future developments or otherwise.
Forward Looking Statements
Premier Global Independent Investment Bank
Global footprint— 19 geographic locations in the Americas, Europe, the Middle East,
Asia and Australia Trusted advisor
— Focus on M&A, Restructuring, Capital Markets Advisory and Private Funds Advisory
World class coverage — 115 MDs with an average of over 20 years of experience 1
Leading record of growth with significant opportunities ahead— Record 9M 2017 revenues of $515 million, up 26% from 9M 2016— Record 2016 revenues of $613 million, up 11% from 2015 Healthy balance sheet with strong cash position and no debt or
goodwill Commitment to return 100% of excess capital to shareholders
Note:1. As of 10/25/2017
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Moelis & Company Milestones
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2007 Founded and Raised Growth Capital from Global Institutional Investors
2008 – 2009
Japan Alliance with SMBC/SMBC Nikko & $93 million Investment (March 2011) Entered Hong Kong (April 2011), China (June 2011) & Middle East (October 2011) Launched in India (July 2012)
2010– 2012
IPO in April 2014 (NYSE: MC) Expanded into Brazil (April 2014) Formed Private Funds Advisory Business (June 2014)
2013 - 2014
Established German Presence (February 2015) Mexico Alliance with Alfaro, Dávila y Scherer, S.C. (September 2016) Australian Joint Venture listed on Australian Securities Exchange (April 2017)
2015 - 2017
Hired Restructuring Team (April 2008) Established European Business (September 2008) Formed Joint Venture in Australia (August 2009)
Our Business: Relationships, Judgment and Experience
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LOS ANGELES, US
LONDON, UK
HONG KONG, CN
JAPANStrategic Alliance with SMBC / SMBC Nikko
BOSTON, US
DUBAI, UAEHOUSTON, US
NEW YORK, USPALO ALTO, US BEIJING, CN
FRANKFURT, DE
MUMBAI, IN
PARIS, FR
SÃO PAULO, BRSYDNEY, AUSJoint Venture
CHICAGO, US
MELBOURNE, AUSJoint Venture
Global footprint to serve client needs with over 500 bankers ¹
WASHINGTON, DC, US
Note:1. As of 10/25/17
Globally integrated platform valuable to clients and difficult to replicate
MEXICO CITY, MXStrategic Alliance
with Alfaro, Dávila y Scherer, S.C.
Acquisition of EMC Corporation
$67.0bn
[ 5 ]
Premier Brand for World Class Advice
Sale toBerkshire Hathaway
and 3G Capital
$28bn
Sale of EMPAQUE to Crown Holdings Inc.
$1.2bn
Sale of Structured Retail Investor Products and Equity Derivatives Business to BNP
Paribas
£15.0bn
Consortium’s Acquisition of GE Capital Australia & New
Zealand Consumer Finance
A$8.2bn
$127.0bnCapital Markets and Debt Markets strategies related to Liability Management
$10.4bnSale to Emera Inc.
Acquisition of Economic Zones World FZE from Port and Free
Zone World FZE
$3.5bn
Merger with Sirona Dental Systems Inc.
$13.3bn$20.0bnMerger of equals with
Clariant AG
€15.4bnRestructuring
Public Takeover of Lexmark International, Inc.
$3.6bn
$9.3bnAcquisition of NetSuite Inc.
Financial Restructuring$50.0bn
Acquisition of Avista Corporation
$5.3bn
$8.8bn
Restructuring
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Differentiated Model
Global Collaboration
Global partnership approach
One firm P&L (non commission-based compensation)
Optimal structure for client advice and talent development
High ROIC Profitable organic growth
Internal talent development (25% of current MDs are promotes) 1
Commitment toShareholders
Return 100% of excess cash
Disciplined expense management
Clean balance sheet with no debt or goodwill
Note:1. Based on 115 MDs as of 10/25/17
Leading Record of Organic GrowthMOELIS & COMPANY REVENUES
M&A Y-o-Y Change 1 13.7% (3.0)% (4.0)% 11.9% (4.5)% (6.9)% (5.4)%
Default Rates 2 1.9% 2.6% 2.8% 2.1% 2.5% 4.4% 3.8%Source: Thomson ReutersNotes:1. Based on global completed number of M&A transactions greater than $100 million2. Based on average trailing twelve month default rate from Moody’s “Annual Default Study: Corporate Default and Recovery Rates”
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Revenue ($mm)
$268
$386 $411
$519$552
$613
$720
$200
$300
$400
$500
$600
$700
2011 2012 2013 2014 2015 2016 LTM Q32017Market Metrics
Substantial Organic Growth and Cash Flow Generation
Notes:1. Based on fiscal year 2013 revenues of $411 million and LTM Q3 2017 revenues of $720 million2. Represents dividend contemplated at time of IPO3. Based on closing price on October 24, 2017
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Significant Growth Since our IPO…
Generates High Cash Returns
With Focus on Managing the Business…
75% 1 revenue growth
86 MDs at IPO and 115 today
Entered new markets and products
Raised regular dividend almost 120% from $0.17 2 to $0.37 per quarter
Returned $8.17 in cash per share in dividends
Returned over 105% since IPO − 75% in share price
appreciation 3 and over 30% in dividends
No debt
No acquisitions
No goodwill
Expense management
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Strong Balance Sheet and Disciplined Capital Management
Strong financial position
— Cash and liquid investments of $244 million 1
— No debt or goodwill
Minimal capital requirements
Commitment to return all excess capital to shareholders through dividends and share repurchases
— Declared special dividend of $1.00 in Q2 2017, fourth special dividend declared since our 2014 IPO
— Raised regular quarterly dividend by 16% in Q4 2016
• Fourth regular dividend increase since our IPO
Note:1. As of 9/30/2017
MATURATION & MANAGEMENT OF
FRANCHISE & TALENT BASE
Pay off from years of investment in client coverage and talent development
Maximizing revenue through fee expansion and continued collaboration
Expanding global brand recognition
GLOBAL MARKET ENVIRONMENT & MARKET
SHARE GROWTH
Growing demand for global, unconflicted advice
US M&A market to continue given US macro economic environment and CEOs’ need to grow or create synergies through mergers
Recapitalization & Restructuring opportunities to continue given continued depressed commodity prices and amounts of leverage in the market
TARGETED HIRING & PROMOTION TO EXPAND
COVERAGE
Focus on expanding sector expertise through internal promotions and external hires
Selective expansion into new markets or regions
Stay focused on high margin, capital light advisory businesses
Growth Opportunities Ahead
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Stay Focused on High ROIC Growth and Shareholder Returns
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Compelling Investment Opportunity
Leading track record of growth
Differentiated model
— Strong partnership culture
— One-Firm philosophy with one global P&L
— Focus on internal development
Significant shareholder returns since IPO
Strong, asset light balance sheet with no debt and no goodwill
Appendix
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Reconciliation of GAAP to Adjusted (non-GAAP) Financials
Source: Company filingsNote:1. Includes amortization of equity awards granted to employees and MDs in connection with the IPO
Our Adjusted results remove the impact of compensation expenses specifically related to the Firm’s IPO awards, and apply the corporate tax rate to all earnings under the assumption that all outstanding Class A partnership units of Moelis & Company Group LP have been exchanged into Class A common stock of Moelis & Company. We believe the Adjusted results, when presented together with comparable GAAP results, are useful to investors to compare our performance across periods and to better understand our operating results.
Nine Months Ended September 30, 2017
($ in thousands) U.S. GAAP AdjustmentsAdjusted
(non-GAAP)
Revenues $515,448 - $515,448
Expenses
Compensation and Benefits $302,228 $(3,235)¹ $298,993
Non Compensation Expenses $87,599 - $87,599
Total Operating Expenses $389,827 $(3,235) $386,592
Operating Income $125,621 $3,235 $128,856
Compensation Ratio 58.6 % 58.0 %
Non-Compensation Ratio 17.0 % 17.0 %
Operating Income Margin 24.4 % 25.0 %
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%of
Tot
alD
ealC
ount
Source: Thomson ReutersNotes: Represents percent of total company deal count; based on completed M&A transactions from 1/1/2013 to 12/31/2016; excludes transactions less than $100 million and
those with no transaction value disclosed1. PJT’s data represents Blackstone M&A from 1/1/2013 to 9/30/2015; PJT M&A from 10/1/15 – 12/31/16
1
Historical Deal Distribution by Transaction Size
52.3% 49.8%41.0%
64.8%
43.0% 45.7%
17.8% 20.3%22.0%
15.5%
18.4% 14.3%
29.9% 29.8% 37.0%19.7%
38.6% 40.0%
0%
20%
40%
60%
80%
100%
Moelis Evercore Greenhill Houlihan Lazard PJT
$100mm - $500mm $500mm - $1.0bn >$1.0bn
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Quarterly Revenue SummaryQUARTERLY REVENUE (Q1 2013 – Q3 2017)
Revenue ($mm)
Source: Company filingsNotes: Management primarily focuses on annual revenue measures as revenues in any quarter may not be indicative of full year results and the results of any period may vary
significantly from quarter to quarter and year to year. For the purpose of understanding the Company’s historical experience for the 7-year period of 2010-2016, revenues on average were distributed over the four calendar quarters as follows: Q1: 19%; Q2: 24%; Q3: 25%; Q4: 32%. The quarterly revenue data for Q1 2013 through Q3 2017 was derived from our unaudited financial statements included in our Form 10-Qs and our audited financial statements included in our Form 10-Ks. The quarterly revenue data for 2010, 2011 and 2012 was prepared on substantially the same basis as the unaudited financial statements in our Form 10-Qs and our audited financial statements in our Form 10-Ks and include all normal and recurring adjustments that we consider necessary for a fair presentation of revenue for these periods.
1. Sum of four quarters may not add up to 100% due to rounding
% of Full Year Revenue 1 15% 24% 24% 38% 22% 25% 25% 28% 18% 23% 28% 32% 21% 21% 25% 33% N/A N/A N/A
$59.8
$98.5 $98.7
$154.3
$114.5 $131.7
$128.7 $143.9
$99.4
$125.9
$151.8
$174.8
$126.4 $131.7
$150.7
$204.6
$173.3 $172.1 $170.0
$50.0
$85.0
$120.0
$155.0
$190.0
$225.0
Q12013
Q22013
Q32013
Q42013
Q12014
Q22014
Q32014
Q42014
Q12015
Q22015
Q32015
Q42015
Q12016
Q22016
Q32016
Q42016
Q12017
Q22017
Q32017
Share Count Summary
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Type of Equity At IPO September 30, 2017Weighted–Average Class A Common Stock 15.3 million 32.5 million 2
Exchangeable Class A Partnership Units 39.0 million 24.4 million
Weighted-Average Basic Class A Shares / Exchangeable Units 54.3 million 56.9 million 2
Weighted-Average Diluted Class A Shares / Exchangeable Units 54.3 million 64.1 million 2
Notes:1. The Company granted 2.4 million RSUs on February 23, 2017 in connection with 2016 incentive compensation. The majority of the RSUs are subject to a 5-year MD vesting
schedule where 1/5th vests in each year, while others are subject to a non-MD 4-year ratable vesting schedule 2. Represents weighted-average Class A common stock, basic and diluted shares for the three month period ending September 30, 2017
Near-term, expect an increase in share count given issuance of annual incentive equity awards yet modest share repurchases due to limited public float
— Granted 2.4 million RSUs in February 2017 primarily subject to 5-year vesting schedule 1
Lock-Up Summary
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HoldersClass A Shares /
Exchangeable Units Lock-Up Terms
All Executive Officers and Managing Directors 1 21.8 million
4 to 6 year lock-up (2% on the fourth 2, 40% on the fifth 2 and 58% on the sixth anniversary of the IPO closing date)
Pre-IPO Strategic Investor 2.6 million Currently transferable, subject to open exchange window
Other Equity Not Subject to Lock-Up 3 32.5 million None
Total Class A Shares / Exchangeable Units @ September 30, 2017
56.9 million
Notes: Moelis & Company concluded a public offering of 6.0 million shares of Class A Common Stock on July 28, 2017 1. Includes former Managing Directors and Employees2. Balance of shares remaining in first and second tranche after public offerings in November 2014, January 2017 and July 20173. Includes 1.0 million of shares and exchangeable units which are subject to certain vesting requirements
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