Houlihan Lokey : October 2023 Investor Presentation

INVESTOR PRESENTATION

October 2023

Disclaimers

Forward-Looking Information

This presentation contains forward-looking statements. All statements other than statements of historical facts contained in this presentation may be forward-looking statements. The words "may," "will," "should," "expects," "plans," "anticipates," "could," "intends," "targets," "projects," "contemplates," "believes," "estimates," "predicts," "potential" or "continue" and other expressions that are predictions of or indicate future events and trends and that do not relate to historical matters identify forward-looking statements. Forward-looking statements involve known and unknown risks, uncertainties and other important factors, that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Important factors that could cause actual results to differ materially from expectations are disclosed under the "Risk Factors" and "Cautionary Note Regarding Forward-Looking Statements" sections of our annual report on Form 10-K for the year ended March 31, 2023, and subsequent filings with the Securities and Exchange Commission (the "SEC"). All written and oral forward-looking statements attributable to us, or persons acting on our behalf, are expressly qualified in their entirety by the cautionary statements. You should evaluate all forward-looking statements made in this presentation in the context of these risks and uncertainties. Because forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified, you should not rely on these forward-looking statements as predictions of future events. The events and circumstances reflected in our forward-looking statements may not be achieved or occur, and actual results could differ materially from those projected in the forward-looking statements. The forward-looking statements in this presentation are made only as of the date hereof. Except as required by law, we assume no obligation to update these forward-looking statements, or to update the reasons actual results could differ materially from those anticipated in the forward-looking statements, even if new information becomes available in the future.

Non-GAAP Financial Measures

Adjusted pre-tax income, adjusted net income, total and on a per share basis, and certain adjusted items used to determine adjusted net income, are presented and discussed in this presentation and are non-GAAP measures that management believes, when presented together with comparable GAAP measures, are useful to investors in understanding the Company's operating results. These adjusted items remove the significant accounting impact of one-time or non-recurring charges associated with the Company's one-time/non-recurring matters, as set forth in the tables at the end of this presentation.

The adjusted items included in this presentation as calculated by the Company are not necessarily comparable to similarly titled measures reported by other companies. Additionally, these adjusted amounts are not a measurement of financial performance or liquidity under GAAP and should not be considered as an alternative to the Company's financial information determined under GAAP. For a description of the Company's use of these adjusted items and a reconciliation with comparable GAAP items, see the section of this presentation titled "Reconciliation of GAAP to Adjusted Financial Information." Please refer to our financial statements, prepared in accordance with GAAP, for purposes of evaluating our financial condition, results of operations, and cash flows.

Houlihan Lokey | 2

Our Culture

Employee DNA

• Analytically Driven
• Client Service and Solution Driven
• Entrepreneurially Motivated
• Desirous of a Winning Culture
• Strong Loyalty to the Firm
• High Integrity

Firm's DNA

• Partnership Culture
• Not a "Star" Culture
• Consensual Decision-Making
• Measured Risk-Taking

Ownership and Controls

• Broad-Based,Long-Term Employee Ownership
• Sophisticated Corporate Procedures and Financial Systems
• New York Stock Exchange Listed Company
• Blue Chip Institutional Ownership

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Our Product Knowledge and Industry Expertise Deliver Superior Results

Product Expertise

Corporate Finance

Financial

Restructuring

Financial and

Valuation Advisory

Dedicated Industry Groups

Business Services	Financial Services	Industrials
Consumer, Food	FinTech	Real Estate, Lodging
and Retail		and Leisure
Energy	Healthcare	Technology

Key Facts and Figures

35

LOCATIONS WORLDWIDE

2,686

GLOBAL EMPLOYEES

311

MANAGING DIRECTORS1

$1.8B

REVENUE2

1. As of September 30, 2023; excludes Corporate MDs	Houlihan Lokey | 4
2. LTM ended September 30, 2023

Investment Tenets

Strong Track Record of Growth and Profitability

Strong and consistent financial performance since going public. Long history of growing senior banker headcount.

Lower Revenues and Earnings

Volatility Through Economic Cycles

Given our diversified business model, focus on mid-cap clients in our corporate finance business and the size of our restructuring practice, we believe we are less volatile than other investment banking firms.

Strong Growth Prospects

HL has significant room to grow all three businesses globally.

Long-Tenured Management Team

The average tenure of our executive leadership team is over 30 years.

High-Quality, Diversified Revenues

HL is diversified across clients, industries, geographies, transactions and financial professionals.

Market Fundamentals Are Favorable for Independent Advisors

We believe that independence is increasingly important to our clients and that our limited- service focus is more attractive to our clients than being a full-service investment banking firm.

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Strong Financial Performance

• Strong revenue growth with a five-year CAGR of 13%

• Fiscal year 2022 experienced record results during

extremely bullish market conditions

• Adjusted pre-tax income grew at a CAGR of 12% over the same

five-year period

• Maintained solid adjusted pre-tax margins throughout, with higher

pre-tax margins for fiscal years 2021 and 2022 as a result of

Revenues

$963	$1,084
15%
15%
29%
30%
55%	56%

$1,159 14%

30%

56%

$1,525 12%

35%

53%

$2,270

13%

17%

70%

$1,809

16%

22%

62%

temporarily lower non-compensation expenses as a result of

COVID-19

Adjusted Pre-tax Income1

$680

$434$428

$244 $264 $282

2018

2019

2020

2021

2022

2023

2018	2019	2020	2021	2022	2023
Corporate Finance	Financial Restructuring	Financial and Valuation Advisory

Adjusted Pre-tax Margin1

			28.4%	29.9%
25.3%
24.4%	24.3%		23.7%

2018

2019

2020

2021

2022

2023

Note: For fiscal years ended March 31. All dollar amounts in millions unless otherwise noted.	Houlihan Lokey | 6
1. Adjusted Pre-tax Income and Adjusted Pre-Tax Margin are non-GAAP financial measures. See page 29 for comparable GAAP figures.

Strong Partnership Culture with Experienced Leadership

Deep and Experienced Executive Management Team

Scott L. Beiser	Irwin N. Gold
CEO	Executive Chairman

Scott J. Adelson	David A. Preiser
Co-President	Co-President

1. Lindsey Alley
   CFO

Long Tenure Results in

Collaborative Culture

Tenured Management Team

Over 30-year average tenure of

1 our Executive Management Team and over 25-year average tenure of our 16 person Operating Committee team

High Retention

2 12-year average tenure of Managing Directors across all business segments¹

3	Strong Loyalty
More than 63% of Managing Directors
reached their respective positions
	through internal promotions¹

No "Star" Culture

4 No single individual generated more than 2% of revenues²

1. As of March 31, 2023. Excludes Managing Directors from acquisitions.
2. For the fiscal year ended March 31, 2023.	Houlihan Lokey | 7

Community Involvement

HL has a matching charitable contribution program for active employees, which results in a number of donations to causes around the globe, and a give-a-day program that results in significant participation by our employees in programs local to our offices. Listed below are several of the beneficiaries of our programs:

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Market Leader in All Three Business Segments

Top Global M&A Firm1

Investment Banks by Number of Global M&A Deals in CY 2022

Houlihan Lokey	381
Rothschild & Co
369
JP Morgan
217
Lazard
206

Goldman Sachs 203

• No. 1 U.S. M&A Advisor
• Leading Capital Markets Advisor

Top Global Restructuring Firm

CY 2022 Global Distressed Debt and Bankruptcy Restructuring Deals

Houlihan Lokey
58
PJT Partners
30
Lazard
29
Rothschild & Co
25
Moelis & Co
21

• No. 1 Global Restructuring Advisor, Based on Total Deal Value and Number of Transactions Closed
• Advised on 12 of the 15 Largest U.S. Bankruptcies Since 2000
• 1,500+ Transactions/Valued Over $3.0 Trillion

Top Global Fairness Opinion Firm

Global M&A Fairness Advisors: Announced or Completed Deals (CY 1998 to CY 2022)

Houlihan Lokey	1,232
JP Morgan	1,030
Duff & Phelps	938
Morgan Stanley	725
BofA Securities	710

• No. 1 Global M&A Fairness Opinion Advisor Over the Past 25 Years
• No. 1 U.S. M&A Fairness Opinion Advisor Over the Past 25 Years
• 1,000+ Annual Engagements

Source: Refinitiv.	Houlihan Lokey | 9
1. Transactions under $1 billion in total deal value. M&A ranking excludes accounting firms and brokers.

Market-Leading Advisor Across Industries in the U.S.

Business Services

Consumer, Food, & Retail

Financial Services1

Houlihan Lokey

Lincoln International

Goldman Sachs

Robert W Baird & Co Inc

William Blair & Co

			Houlihan Lokey
		32
			Goldman Sachs & Co
21
			William Blair & Co
20		JP Morgan
17			Lincoln International

17Robert W Baird & Co Inc

21

18

17

16

13

13

Houlihan Lokey

Goldman Sachs & Co

Piper Sandler & Co

JP Morgan

MarshBerry & Co Inc

26

18

15

13

13

Healthcare2

Industrials

Technology2

Houlihan Lokey

Jefferies LLC

Piper Sandler & Co

SVB Financial Group

Edgemont Partners

18Houlihan Lokey

			Lincoln International
	16
			Goldman Sachs & Co
14
		Stout
14			Benchmark International
13			Jefferies LLC

35

33

26

26

25

25

Houlihan Lokey
49
Canaccord Genuity
37
Lincoln International
37
William Blair & Co
33
Moelis & Co
32

Source: Refinitiv. Excludes accounting firms and brokers.

Note: Advisory rankings based on total number of U.S. M&A transactions completed in CY 2022.

1. Excludes bank transactions.
2. Transactions under $1 billion in total deal value.

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