Houlihan Lokey, Inc. · NYSE:HLI
Houlihan Lokey — Investor Presentation (November 2016)
24 slides from Houlihan Lokey's investor presentation, November 2016
Slide 1: Investor Presentation
Investor Presentation NOVEMBER 2016
Slide 2: Disclaimer
Disclaimer 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,” “int
Slide 3: Our Culture
Our Culture Analytically Driven Client Service and Solution Driven Employee DNA Entrepreneurial Desirous of a Winning Home Partnership Culture Not a “Star” Culture Firm’s DNA Consensual Decision Making Measured Risk Taking Ownership Broad-Based, Long-Term Employee Ownership and Con
Slide 4: A Leading Independent Global Investment Bank
A Leading Independent Global Investment Bank Expertise Global Integrated Platform Growth Mergers & Acquisitions Seamlessly Combining 2000–2016 Capital Markets Advisory Product and Industry Expertise Revenue CAGR1 of 10% Financial Restructuring worldwide Unadjusted2 Net Income CAGR1 of 10% Financial
Slide 5: Principal Investment Highlights
Principal Investment Highlights Strong Track Record of Growth and Profitability Low Revenue and Earnings Volatility Through Economic Cycles High Quality Earnings Long-Tenured Management Team Differentiated, Cyclically Balanced Business Model Strong Sector Fundamentals for Independent Adv
Slide 6: Our Three Primary Business Segments
Our Three Primary Business Segments Our business is diversified across clients, services, industries and geographies, as well as cyclically balanced, allowing us to succeed in both bull and bear markets. Corporate Financial Financial Finance Restructuring Advisory Services Financial Opinions M&A Out
Slide 7: Diversified Revenue Base
Diversified Revenue Base More than 1,000 clients served annually Balanced Client Mix1 No single transaction fee represented more than 2% of Public Private Equity our revenues Companies & & Other Government Institutional No individual banker was responsible for more than 3% of Owned 29% 23% our
Slide 8: Market Leader in All Three Business Segments
Market Leader in All Three Business Segments Top U.S. M&A Advisor Top Global Restructuring Advisor Top Global Fairness Opinion Advisor CY 2015 Financial Advisors by Number CY 2015 Global Distressed Debt & Bankruptcy U.S. M&A Fairness Advisors: Announced or of U.S. M&A Deals Restructuring Deals Compl
Slide 9: Organic Growth Strengthened by Strategic Acquisitions
Organic Growth Strengthened by Strategic Acquisitions Continental European Consumer, Food & Retail Media-Focused Joint Venture Expanding Adds Strategic Investment Banking Firm Focused Investment Investment Banking Firm Presence in Australia Consulting Capabilities to Banking Firm C-Suite Relationshi
Slide 10: Comprehensive Coverage and Global Scale
Comprehensive Coverage and Global Scale Global 1,186 Employees1 24 Global Locations 1 427 Corporate Finance 19 Houlihan Lokey Offices 2010-Present 204 Financial Restructuring 5 Joint Venture Offices Mumbai 216 Financial Advisory Services Singapore 339 Corporate & Administrative Miami 2000-2009
Slide 11: Strong Partnership Culture with Experienced Leadership
Strong Partnership Culture with Experienced Leadership Deep and Experienced Management Team Long Tenure Results in Collaborative Culture Scott L. Beiser CEO 32+ years with Houlihan Lokey Tenured Management High Banker Team Retention Irwin N. Gold 27-year average tenure of 12-year average tenure Exec
Slide 12: Overview of Product Lines
Overview of Product Lines
Slide 13: Corporate Finance Business
Corporate Finance Business Corporate Finance is a leader in the U.S. mid-cap space, which represented approximately 98% of M&A volume in CY 2015 Our market share in the U.S. mid-cap space is less than 2%, based on the number of M&A transactions we completed in CY 2015 The mid-cap space is mean
Slide 14: Corporate Finance Business
Corporate Finance Business Announced U.S. M&A volume has a 5-year CAGR of 4.4% U.S. M&A revenues in our corporate finance business have a 5-year CAGR in excess of 15%, reflecting continued market share gains during the measurement period We continue to increase market share as a result of comp
Slide 15: Financial Restructuring Business
Financial Restructuring Business Deepest bench in the industry, with 43 MDs and 204 total Top Global Restructuring Advisor finance professionals as of September 30, 2016 2015 Global Distressed Debt & Bankruptcy Restructuring Deals A true global player, having closed transactions in more than 60
Slide 16: Financial Advisory Services Business
Financial Advisory Services Business Transaction Opinions Financial Reporting Opinions Services Offered Dispute Resolution Portfolio Valuations Strategic and Financial Consulting More than 1,000 fee events each year Diversified Approximately one-third of our FAS business is recurring i
Slide 17: Robust Growth Opportunities
Robust Growth Opportunities In order to effectuate our growth drivers: Corporate Finance Continued market share gains Increasing deal size and deal fees We will continue to grow Expansion into Europe and Asia-Pacific (replicating the U.S. model) our talent pool through: Complementary product
Slide 18: Financial Overview
Financial Overview
Slide 19: Strong Top-Line Growth and Disciplined Expense Management
Strong Top-Line Growth and Disciplined Expense Management Long history of revenue growth through various market Revenue cycles 10% CAGR Revenue CAGR of 10% from FY 2000 to FY 2016 and 10% 21% Growth $681 $694 from FY 2013 to FY 2016 $592 $520 $305 $367 Resilient business mix consisting of cycl
Slide 20: Segment Financials
Segment Financials Total Revenue by Segment Segment Profit1,2 ’15-’16 ’15-’16 Growth Growth $694 +2% $681 $189 +6% 17% +14% $178 $592 15% 16% +25% $520 14% 17% $149 21% Growth 18% 31% 29% $130 17% 22% Growth (3)% 29% 29% 5% $367 16% 39% $95 $305 16% 41% 38% $78 14% 19% 45% 31% 17% 26% 32% 54% 54% 26
Slide 21: Our Mission
Our Mission We help our clients achieve superior outcomes by providing thoughtful, caring advice while acting with honor and integrity. We are strategic in our approach to growth and are committed to creating lasting value for our shareholders. We maintain an intellectually stimulating, fair, and fu
Slide 22: Appendix
Appendix
Slide 23: Reconciliation of GAAP to Adjusted Financial Information
Reconciliation of GAAP to Adjusted Financial Information (Unaudited and in thousands, except share and per share data) Three Months Ended Six Months Ended September 30, September 30, 2016 2015 2016 2015 Fee revenue $186,537 $158,380 $367,311 $304,646 Employee Compensation and Benefits Note: Figures
Slide 24: HL.com
CORPORATEFINANCE FINANCIALADVISORYSERVICES FINANCIALRESTRUCTURING STRATEGICCONSULTING HL.com
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