SUSTAINABILITY REPORT 2021 Letter From Our CEO

I am very pleased to introduce Houlihan Lokey’s first Sustainability Report. This report comes at a most exciting time for Houlihan Lokey, our clients, our employees, and our society. At Houlihan Lokey, our unwavering commitments to ethical behavior, community involvement, charitable giving, environmental stewardship, diversity, inclusion, and good governance have been the foundation of our success, and the success of our clients, throughout the firm’s history. While 2020 was a challenging year, Houlihan Lokey emerged more resilient than ever, thanks to the dedication and resourcefulness of our employees. Under the leadership of our board of directors, the Office of the Executives has worked with a talented group of employees and outside experts to compile this Sustainability Report. It pulls together a wide variety of information on Houlihan Lokey’s continuing efforts to address our environmental, social, and governance (ESG) responsibilities. In the pages that follow, you can read about how the Houlihan Lokey team works to promote diversity, equity, and inclusion in our workplace, to use our deep industry knowledge to advance the goals of our many clients with consideration for ESG issues and social impact, to give back to the communities in which we live and work around the world, and to be good stewards of our environment. We understand that ESG can be an amorphous and wide-ranging topic, but at Houlihan Lokey we believe that our ESG-related initiatives, as varied as they may be, come down to one guiding principle: “Do the right thing, every time.” Honesty, integrity, and trustworthiness have been our core values for decades, and this dedication to ethical behavior drives Houlihan Lokey’s commitment to helping our employees, clients, and communities promote sustainability and equity. In closing, I want to emphasize that this Sustainability Report is not the culmination of our efforts at Houlihan Lokey; rather, it marks a current status report of an ongoing journey. I look forward to delivering our future Sustainability Reports in 2022 and beyond, and I fully expect that we will be reporting continued progress in our ongoing effort to meet the firm’s goals.

Sincerely,

Scott Beiser Chief Executive Officer

FromFrom Our our CEOCEO From Our Board About HL ESG Framework Social Governance Environment HL 2 A Note From Our Board of Directors

The board of directors is pleased to present Houlihan Lokey’s inaugural Sustainability Report showcasing the company’s ongoing efforts to promote the well-being of our employees, our communities, and the environment. As stewards of a global enterprise, the board recognizes its obligation to provide leadership and guidance as Houlihan Lokey works to promote sustainability and social progress on multiple fronts as well its obligation to keep our stakeholders informed regarding these endeavors and their results. As a board, we have recognized the many benefits of diversity in board composition ever since Houlihan Lokey went public in 2015. Our board currently includes three women and two African Americans among its 10 members. We are committed to maintaining a board of directors that reflects the diverse global community served by Houlihan Lokey and its clients. Throughout its history, Houlihan Lokey has always built its success upon the strong foundation of a culture of compliance, ethical behavior, and systematic enterprise risk management. The board of directors shares these core values, which also drive our dedication to effective corporate governance and our increasing efforts to promote diversity, equity, and inclusion in our workplace, as well as to promote the long- term health of our planet. Houlihan Lokey’s Mission states that we should act “with honor and integrity” and “seek to improve our local and global communities.” In addition to pursuing these goals directly, the board also ensures that these mandates are integrated into the fabric of our business strategy. Our clients are increasingly demanding Houlihan Lokey’s world class advice to assist them as they pursue sustainability and social welfare as core business strategies. As a board, we will continue to monitor the company’s efforts to meet the growing demand for these services. Finally, in addition to our effort inside the boardroom, many of our board members are personally engaged in the company’s diversity, equity, and inclusion efforts. Recent examples include direct participation in a discussion of the Black Lives Matter movement, and as a panelist in a discussion hosted by Houlihan Lokey women employees. We look forward to continuing and expanding our personal participation in the future. Thank you for taking the time to review our first Sustainability Report. The board of directors is excited to be leading Houlihan Lokey’s efforts to make our workplaces and communities better environments in which to work and live, and we look forward to sharing the company’s progress in future reports.

June 2021

Los Angeles, California

FromFrom Our our CEOCEO From Our Board About HL ESG Framework Social Governance Environment HL 3 Our Vision We will be recognized globally for providing the finest financial advice and service to our clients and the best place to work for our colleagues.

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 Our clients’ successes and the and are committed to creating lasting value for our firm’s growth and recognition are fundamentally attributable to the shareholders. We maintain an intellectually stimulating, quality of our people―their intellect, fair, and fun place to work. We seek to improve our local their drive, and their vision. and global communities through the responsible and direct actions of our firm and its people.

FromFrom Our our CEOCEO From Our Board About HL ESG Framework Social Governance Environment HL 4 Houlihan Lokey at a Glance At Houlihan Lokey, we guide clients through the complex financial and strategic challenges they face during each stage of their business lifecycle. As a leading advisory-focused independent investment bank, we serve as a trusted advocate to our clients across a number of key disciplines.

FY 2021 Accomplishments M&A Advisor for Six Straight Years in the U.S.* No. No. 1 138 Global Investment Banking Restructuring Advisor** U.S. Private Equity M&A Advisor*** Restructuring Transactions 360 1,540 Global M&A Fairness Opinion Advisor Over the Past 20 Years** Corporate Finance Transactions Financial and Valuation Fee Events *Based on Number1 of U.S. Transactions for 2015-2020. Source: Refinitiv. $11B **Source: Refinitiv. in Capital Raised ***Source: Pitchbook.

Balanced Client Mix(1) Diversified Industry Mix(1) Diversified Product Mix(1)

1972 Financial Institutions ESTABLISHED Public 15% Private Equity Healthcare Financial and Companies and Energy and Other 10% Valuation Government 7% Institutional Advisory Owned 37% 12% 22% Corporate 23 Consumer, Finance 53% LOCATIONS WORLDWIDE Food, & Industrials Retail 21% 16%

Private Non- Financial Business Sponsor Hedge Funds Technology, Media, Restructuring 1,000+ Services 36% 5% & Telecom 35% 11% Other CLIENTS SERVED ANNUALLY 12% 8% (1) Based on revenues for the LTM ended March 31, 2021.

FromFrom Our our CEOCEO From Our Board About HL ESG Framework Social Governance Environment HL 5 Evolving identification of ESG responsibilities most applicable to our Our Approach to ESG business through aggregation of findings from ESG diagnostics and stakeholder assessments:

We believe that thoughtful and consistent attention to our ESG • Talent Recruitment, Development and Retention responsibilities are integral to our operations, our long-term success, and our stakeholder relationships (our employees, • Diversity, Equity, and Inclusion clients, stockholders, regulators, and communities). • Employee Engagement Our process in identifying, assessing, and managing ESG • commitments includes: Integration of ESG Within our Client Services • Professional Integrity and Business Ethics • Formation of an ESG Working Group comprising members of • Enterprise Risk Management various internal departments and external advisors overseen by the Office of the Executives and board of directors; • Cybersecurity Oversight • Corporate Governance • Ongoing and consistent reviews of the firm’s policies and • practices, and proposing new and additional practices as Environmental Initiatives appropriate; and

• Continuous focus on ESG topics most relevant to our business and stakeholders based on leading ESG frameworks, rating agencies, stockholder analyses, best practices disclosures, and internal feedback, with an emphasis on the United Nations Sustainable Development Goals (UN SDGs).

FromFrom Our our CEOCEO From Our Board About HL ESG Framework Social Governance Environment HL 6 Alignment With the United Nations SDGs

As we evaluate the ESG issues most relevant to us, the impact of our actions and practices on our broader stakeholder base is central to our process. From this perspective, Houlihan Lokey has aligned our internal sustainability efforts with the UN SDGs.

The UN SDGs were adopted in 2015 with the aim of building broad scale support to address the toughest challenges of society, including severe poverty, gender, racial and economic inequality, and environmental devastation. As a responsible firm, we believe that aligning our contributions with the UN SDGs emphasizes our commitments and will support our future progress.

SDG 3 – Good Health and Well-Being SDG 5 and 10 – Gender Equality and Reduced Inequalities Our Healthy Living Committee promotes nutritional foods and Houlihan Lokey’s Diversity, Equity, and Inclusion Council drinks, activities and fitness, and well-being support for our advances representation through engagement opportunities, employees alongside our employee benefit programs. talent development and recruitment, and awareness-building activities.

SDG 8 – Decent Work and Economic Growth SDG 12 – Responsible Consumption and Production Our Human Capital Group develops and executes Houlihan Lokey promotes environmentally responsible recruitment, career building, and operational initiatives practices across our offices through company-wide recycling providing opportunities for skills development, mentorship, and energy use programs, local procurement efforts, and and advancement within a safe and respectful work employee engagement opportunities, such as our London environment. office’s employee-led Sustainability Committee.

FromFrom Our our CEOCEO From Our Board About HL ESG Framework Social Governance Environment HL 7 An Evolving Approach to Human Capital Management As our firm has grown—and the needs of our clients, shareholders, and employees have evolved—we have made significant investments to adapt and build on our human capital strategies. Our dedicated Human Capital Group consists of specialized professionals, and every employee in our organization plays a role in shaping our strategies ranging from recruitment, training and development, mentorship, inclusion, rewards and recognition, and more.

In addition, the Human Capital Group provides oversight for firm-wide volunteer committees responsible for furthering our efforts in diversity, equity, and inclusion, employee health and wellness, and charitable giving. Our Human Capital Group is organized across seven Centers of Excellence Human Capital Centers of Excellence Operations and Talent Diversity, Equity, Benefits/ Employee Lifecycle / representing key areas of Business Partnering Talent Development focus. These teams work Data Analytics Acquisition and Inclusion Total Rewards Engagement closely together to ensure alignment and a consistent approach across the firm.

Commitment to Advancing Social Impact Houlihan Lokey’s commitment to acting in a socially responsible manner is central to our firm’s Mission. Our Human Capital strategies and employee-focused programs have been developed accordingly to promote:

Intellectual Thoughtful, Actions based in stimulation, caring advice honor and integrity fairness and fun

We take a long-term view toward talent acquisition and the development and retention of our people. We also believe that the contributions of our firm and its people should extend far beyond the services we provide to our clients.

FromFrom Our our CEOCEO From Our Board About HL ESG Framework Social Governance Environment HL 8 Shaping Our Future With Diversity, Equity & Inclusion

The Diversity, Equity, and Inclusion (DE&I) Council’s principles for action include: Shaping Our Future With Diversity, Equity,

• Increasing the representation and Inclusion and retention of our diverse Houlihan Lokey is committed to fostering a diverse culture that is inclusive of all individuals regardless of their talent; backgrounds. We make this commitment because we know that it makes us a stronger global organization, better • Cultivating a culture that celebrates able to serve our clients. different ideas, perspectives, and backgrounds to deliver better Since our founding, we have prioritized equal representation as an Equal Opportunity Employer and strive to embed outcomes for our people; diversity, equity, and inclusion as a hallmark of our programs. It is through these efforts that we continue to attract, • Engaging business leaders and motivate, and retain talented individuals that drive our long-term success and raise our competitive advantage. decision-makers to drive change; and As such, we continue to proactively expand our diversity, equity, and inclusion efforts. With the support of our Office of the Executives and board, we created our DE&I Council under the leadership of our Chief Human Capital Officer. • Communicating the firm’s commitment to diversity, equity, and inclusion and progress toward Recruiting and Culture and Policy and Program Communications Task desired results. 1 Pipeline Development 2 Community Building 3 Development 4 Force

FromFrom Our our CEOCEO From Our Board About HL ESG Framework Social Governance Environment HL 9 Diversity, Equity, and Inclusion Initiatives

In addition to setting the framework, we engaged in various internal and external activities to reinforce our commitments. Examples of our actions include:

• Joining the CEO Action for Diversity & Inclusion as our further commitment to advance diversity and inclusion in the workplace; • Providing diversity-themed guest speakers as part of our annual training program; • lHosting a eadership round table series for conversations on diversity and other topics between senior management and the firm’s financial analysts and associates; • Launching firm-wide unconscious bias training programs; • Holding a virtual career insights event in partnership with Sponsors for Educational Opportunity (SEO) London and other advisory firms; • Celebrating diversity awareness firm-wide with Global Diversity Awareness Month, Black History Month, Women’s History Month/International Women’s Day, and Pride Month; • Engaging experts on inclusion and community building to conduct focus groups and help launch the first employee resource group at the firm; and • Appointing two highly skilled, independent directors with diverse backgrounds in November 2020.

FromFrom Our our CEOCEO From Our Board About HL ESG Framework Social Governance Environment HL 10 Employee Recruitment, SUMMARY STATISTICS Development, and Engagement 1972 23 1,000+ ESTABLISHED LOCATIONS CLIENTS SERVED At Houlihan Lokey, we recognize that our competitive WORLDWIDE ANNUALLY advantage is the expertise and quality of our talent and our ability to retain them. We have high standards of excellence that we strive to uphold through our recruiting practices, proactive and supportive career planning, skill building opportunities, and 1,132 198 32 YRS 600+ robust performance management process. Our approach to FINANCIAL MANAGING AVERAGE TENURE OF EMPLOYEE remaining a top employer is further informed through continuous PROFESSIONALS DIRECTORS(1) MANAGEMENT TEAM SHAREHOLDERS feedback from employees regarding their engagement and satisfaction.

(1) As of March 31, 2021; excludes Corporate MDs.

FromFrom Our our CEOCEO From Our Board About HL ESG Framework Social Governance Environment HL 11 Talent Acquisition

Our in-house talent acquisition team partners We recognize that a firm of employees with diverse By working synergistically with our partners, we are closely with our businesses to identify and recruit thoughts, experiences, and backgrounds enables able to build our pipeline of talented and diverse top candidates. Starting with early talent programs, us to better serve our clients. By investing in candidates while providing employees opportunities including internships and insight days to senior programs and strategic partnerships, we are to share their knowledge and skills through strategic hires to augment or expand our client developing a strong, diverse talent pipeline for our mentoring, educating, and positively engaging with offerings, Houlihan Lokey views talent acquisition at campus and internship hiring. Our training and this community. In addition to financial support, our all levels as critically strategic to our business. Our mentorship programs, such as the Rising Leaders employees are actively involved in guiding hiring process places as much of an emphasis on Program, deepen our engagement with diverse underprivileged youths who desire to obtain a cultural fit as on technical capabilities. student groups across campuses for historically foothold in our industry, which helps build the underrepresented populations. future—for them and for us.

Rising Leaders Program Partnerships Taking place during the summers in our New As part of the Rising Leaders program, we contributed York office, the Rising Leaders Program for $1.15 million in scholarship funds in addition to diverse students between their sophomore and establishing partnerships with three organizations that junior year of undergraduate studies offers: work with high-potential, diverse high school and college students: INROADS, Thrive Scholars, and The • 10 weeks of rotational programs across Opportunity Network. business units; • A full week of training with our Learning and In the U.K., we partnered with SEO London to host: Development team; and • An event for Black, Asian, Minority Ethnic (BAME) • Mentorship from members of our Executive youth to explore careers in finance; and Committee, senior leaders in our business, • A finance insight program for women in university. and junior talent.

FromFrom Our our CEOCEO From Our Board About HL ESG Framework Social Governance Environment HL 12 Career Development

Beginning with our internship program and continuing We empower our less experienced team members with from day one at Houlihan Lokey, our employees receive mentorship opportunities that cultivate meaningful best-in-class training with ongoing support from our in- relationships across the firm while providing benefits from house team throughout their careers, including: the expertise and guidance of the firm’s seasoned professionals. These relationships foster increased • Extended office hours for one-on-one coaching; connectivity and improve retention and professional • Continuing education programs; and development by imparting knowledge, skills, and values from our more senior leaders. • Tuition reimbursement programs for external learning.

Onboarding Performance Management Our new financial analysts and associates participate in a We continue to invest in our performance management four- to five-week immersive, global training program to systems and processes to be even more employee-centric equip them with the skills they need to excel. They benefit and data-driven. Through a focus on shared accountability from a training program designed and facilitated by an in- between individuals and managers, regular feedback is house expert with world-class financial training provided throughout the year to establish trust and a clear experience. path to success. Our program includes:

Professional Development • Self-assessments; We provide professional development opportunities • Manager effectiveness surveys; through our leadership training programs at critical • Peer feedback; and milestones in our employees’ careers, including: • Top-down performance reviews. • Access to global cross-functional leadership; These reviews encourage our managers to develop their • Immersive, high-impact training sessions; and people and foster inclusive work environments. • Interactive presentation experiences.

FromFrom Our our CEOCEO From Our Board About HL ESG Framework Social Governance Environment HL 13 Managing Employee Engagement We conducted an employee engagement survey in collaboration with Glint, our survey provider, which assisted us to develop and administer the survey, interpret the results, and consider action items. The survey sought feedback from every employee across the firm and, while anonymous, provided insights across each line of business, corporate department, geography, and a variety of other demographics. Overall, 1,115 employees responded to the survey, representing 71% of employees.

17 Survey Categories Benchmarked The survey provided insights across 20 Against the Finance Industry different categories, including: • Overall employee engagement, leadership, and equal opportunity; % Exceeded, 15 • Career development; 71 Equal, 1 Participation of • Collaboration; and Below, 1 Global Staff • Culture.

Seventeen of the surveyed categories had benchmarked scores available from Glint. We were pleased to receive higher favorability scores than the finance industry benchmark in 15 of the categories, equal with the benchmark in one category, and below the benchmark in just one category.

The survey helped us uncover opportunities for areas of improvement. Based on firm-wide responses, we have established a working group to consider potential actions and/or programs to address two specific opportunities: (i) employee comfort in challenging the status quo and (ii) employee satisfaction with received recognition. In addition, leaders across the firm are working with their teams to address specific feedback unique to their groups.

FromFrom Our our CEOCEO From Our Board About HL ESG Framework Social Governance Environment HL 14 Employee Health and Well-Being The health and well-being of our employees and their families are among our highest priorities. We offer a variety of benefits, including robust medical, dental, and vision insurance coverage; disability and life insurance benefits; time- off policies; employee assistance programs; retirement plans; leaves of absence programs based on specific circumstances; working parent resource groups; and more.

During 2020, we sought to better support our employees’ mental health through the launch of additional benefits and resources, including a partnership with Talkspace to provide free on-demand mental health counseling to all employees and their families.

Our firm-wide, volunteer-based Healthy Living Committee promotes, enables, and encourages healthy lifestyle choices focusing on sustenance and nutrition, activities and fitness, and stress management and well-being across our global offices. Events and activities include:

• STEPtember step challenge in support of the Cerebral Palsy Alliance Research Foundation • Cycle for Survival event in support of Memorial Sloan Kettering • Annual flu shots • Meditation and yoga classes • In-office healthy snack and drink choices • Team workouts, walking groups, and 5k runs • Expert webinars on nutrition, ergonomics, etc. • Fitness membership subsidies and discounts • Blue-light-blocking glasses subsidy

FromFrom Our our CEOCEO From Our Board About HL ESG Framework Social Governance Environment HL 15 As we have navigated these extraordinary times, our primary concern has been the Our Response protection and well-being of our Houlihan Lokey community. At the onset, we acted swiftly to transition our employees to remote work, where possible, and to enhance our in-office health and safety procedures through deep-cleaning operations, masking and to COVID-19 social distancing protocols, and employee and visitor health screens.

APPROXIMATELY Our response efforts have been managed centrally through our COVID-19 Task Force. The Task Force meets weekly to address immediate questions and to develop and maintain broader health and safety $1.8M plans and procedures. In every instance, our decisions have been informed by all available facts and DIRECT COMPANY DONATIONS RELATED TO COVID-19 EFFORTS information as well as feedback received throughout the year from our employee survey platform, discrete round table discussions, and one-on-one conversations between managers and their teams.

We have been impressed by, and grateful for, the adaptability of our employees. They have adopted new $680K $128K technologies, embraced alternative methods of communication, and balanced shifting personal priorities, DIRECT GRANTS BY SPECIAL EMPLOYEE all the while staying intensely focused on delivering excellence to our clients and colleagues. As we HOULIHAN LOKEY MATCHING FUNDS continue to monitor the pandemic and implement new protocols, we remain vigilant in protecting the health $1M and well-being of our employees and clients. PERSONAL CONTRIBUTION FROM We also designated Direct Relief and NHS Charities Together—two organizations dedicated to providing OPERATING COMMITTEE MEMBERS support and necessary supplies to the heroic medical teams fighting the battle on the front lines—as firm- wide core charities eligible for matched donations. In making this designation, the firm made a direct grant to these organizations and others totaling $680,000; our Operating Committee members made personal donations totaling more than $1 million; and we made an additional $1 million available in special employee matching funds.

FromFrom Our our CEOCEO From Our Board About HL ESG Framework Social Governance Environment HL 16 Charitable Giving Houlihan Lokey’s Charitable Giving Program was established to enhance the culture of charitable giving at all levels of the organization through our dedication to promoting the economic, social, and environmental well-being of the global communities in which we live and work. We support a broad range of charitable activities, and we devote our expertise and time to the advancement of the next generation of citizens through educational programs and personal and team volunteering. We encourage our employees to develop close community ties that make a positive impact. We also make financial contributions on behalf of our employees and clients, assisting many local, national, and global charities.

Give a Day to Charity Charitable Contributions Houlihan Lokey strives for community Houlihan Lokey promotes social responsibility through multifaceted collaboration and partnership through involvement, making charitable contributions in support of the efforts of our its Give a Day to Charity program. We employees and clients by matching their charitable contributions. As an invite employees to volunteer up to two embodiment of this commitment, we also sponsor various causes and events. working days each year with charities Some of the many organizations to which we contribute include: that are important to them. In addition to paid time off for these volunteer activities, the firm provides a monetary contribution to the charities for which the employees volunteer. Employees are encouraged to combine their personal efforts with organizing team volunteering events for their charities.

Charitable Contributions During Fiscal Year 2021

APPROXIMATELY + APPROXIMATELY across MORE THAN Select National Core Charities $3.6M $410,000 900 DIRECT COMPANY DONATED BY HOULIHAN LOKEY EMPLOYEE DONATIONS THROUGH GIVE A DAYS GIVE A DAYS

FromFrom Our our CEOCEO From Our Board About HL ESG Framework Social Governance Environment HL 17 Thematic Approach – Women-Led Enterprises Delivering Insight and Impact to Our Clients Houlihan Lokey strives to elevate clients that provide solutions To support this evolving marketplace, key members of our In September 2020, we hired to challenges of significant social and environmental Financial Sponsors Group have developed our Impact Alexandra Lebenthal, a financial importance. Leveraging our global presence, deep industry Advisory Practice, focused specifically on assisting ESG and services industry leader and expertise, transaction acumen, and extensive relationships, impact-minded investors to identify opportunities, invest capital longtime champion of diversity we assist our clients with achieving successful merger, supporting the growth of ESG solutions, and manage their and inclusion. Alexandra is acquisition, and capital raising transactions that promote the portfolio companies in compliance with ESG regulations and helping formalize our efforts to advancement of their corporate missions. directives. provide client advisory services that bring women-led companies Sustainability, as an example, represents a fast-growing As we continue to develop our ESG strategies, we anticipate to the next level of growth. frontier for our clients. Houlihan Lokey has a wide-ranging refining our product and service offerings to meet our clients’ Recommendations on prospective opportunity to lead the interchange of ideas among companies expanding needs and to further integrate these approaches 7 female board members and investors who have developed initiatives and technologies across the wider Houlihan Lokey platform. Assists on bankers' transactions, with truly global applications in this emergent field. including pitch participation and 6 diverse buyer identification Introductions across teams Industry-Specific ESG Approach – Advancing Solutions with female-led companies and funds, and funds with Our deep industry knowledge is the differentiating element that enables us to provide trusted advice at critical times to 55+ gender-based strategies clients who are committed to addressing ESG issues. We facilitate our clients’ initiatives by pairing them with partners with similar strategic criteria. Industries where we have directly assisted such clients include: • Agricultural firms employing water purification and methane reduction and capture technologies; “The important thing is to take • Environmental services firms advancing water quality, landfill avoidance, beneficial reuse, recycling, and remediation; the discussion about women • Consumer goods companies developing healthier foods, beverages, and protein alternatives or employing organic and out of checking the box and sustainable approaches within production processes and supply chains; feeling good about it into how • Healthcare companies improving access to care through enhanced IT solutions that improve effectiveness and compliance; does this help the economy, • Power producers utilizing renewable or low-carbon energy sources such as wind, solar, geothermal, and bio-fuels; and what does this mean for returns. • Manufacturing companies developing technologies for the electrification of transportation and power grids, such as battery This is about business.” storage and fuel cell advancements. —Alexandra Lebenthal

FromFrom Our our CEOCEO From Our Board About HL ESG Framework Social Governance Environment HL 18 Our success is dependent on all Houlihan Lokey employees consistently working to Commitment to advance our Mission. These efforts are enhanced by our organizational structures, risk management strategies, and consistent dialogues across our teams and with our senior Good Governance leadership.

Share Structure Sustainability Oversight Houlihan Lokey is a “controlled company” under the New York Stock Exchange Our board is fully committed to maintaining a strong focus on ESG and rules through the Houlihan Lokey Voting Trust, which holds high-vote class B accountability. They have been providing feedback on our ESG approaches in shares owned by current and former employees and members of our collaboration with the management team and have approved our inaugural ESG management, instituted when we became a publicly traded company. At such report. Additionally, they are directly engaged with our diversity, equity, and time, approximately 48% of the company was owned by our employees. Now, our inclusion strategic developments and participate in employee outreach programs employees own roughly 26% of our outstanding shares. As part of the Houlihan to reinforce their commitments. Lokey Voting Trust Agreement, we have imposed a 20% employee-held Our board also ensures it reflects a diversity of experience, qualifications, skills, threshold as a trigger to eventually cease the controlled ownership structure. perspectives, and backgrounds and that each director and potential candidate Board Composition possesses a high level of personal and professional integrity, strong ethics, and the ability to make sound business judgements. The board is served by three standing committees: Audit, Compensation, and Nominating and Corporate Governance. Each committee’s charter is available on Board Independence our Investor Relations website along with our Corporate Governance Guidelines, which codifies our corporate governance and responsibility. The Audit Committee, which is composed solely of independent directors, directly oversees Houlihan Management Lokey’s compliance with laws and regulations as well as the implementation of Directors compliance programs, policies, and procedures. 40% Independent Directors Though we are granted exemptions from certain typical public company 60% requirements as a controlled company, we have a majority independent board with six of our 10 directors who are independent.

FromFrom Our our CEOCEO From Our Board About HL ESG Framework Social Governance Environment HL 19 Professional Integrity and Business Ethics

Houlihan Lokey’s Core Policies Our Code of Ethics is the essential guide for all employees. It details our expectations for employee behavior, conduct, and compliance and is supplemented with specific policies for certain lines of business. Annually, we conduct compliance training and certification programs to ensure that all our employees are familiar with the policies Anti-Bribery and Personal /Private and procedures. Corruption Investments

All employees are encouraged Anti-Money Outside Business to raise concerns of actual or Laundering Activities perceived unethical behavior or Our reputation depends on the misconduct to a senior officer or judgement and integrity of our supervisor, general counsel, chief Client Due Diligence Gifts, Entertainment, officers, directors, and employees to corporate governance or compliance and Background and Charitable Checks Contributions act in accordance with our officer, internal auditor, and/or head of principles. 1 2 the Human Capital Group.

Political Conflicts of Interest Contributions

Our Legal and Compliance’s and We value utmost discretion and Data Privacy / Human Capital Group’s senior confidentiality through our non- Whistleblower 4 3 Confidentiality / Protection management oversee our global retaliation policy and the Navex Cybersecurity compliance, ethics, and risk Global’s EthicsPoint hotline, an management strategies, and our industry-leading, independently board’s Audit Committee reviews operated, anonymous ethics hotline Non-Retaliation Records Retention on a quarterly and annually basis available online or by phone 24/7 from our compliance and whistleblower anywhere in the world for confidential activities. issue reporting.

Restricted List/ Communications and Insider Trading Public /Social Media

FromFrom Our our CEOCEO From Our Board About HL ESG Framework Social Governance Environment HL 20 Data Security Enterprise Risk Because we rely on information technology platforms and services to conduct our business, cybersecurity is one of our primary risk factors. As a financial advisory firm, we are entrusted to preserve and protect confidential Management business information for our clients.

Multifaceted Information Security Program NIST Cybersecurity Framework as a basis for assessing and developing NIST Cybersecurity information security controls, and guiding key decision points about risk management activities 1 Routine audits to identify risks, evaluate our controls, and confirm Identify, Routine Audits compliance with regulatory requirements Monitor & Mitigate Crisis Response Plans and Business Continuity Plans to provide robust Risks Crisis Response Plans processes and procedures to ensure minimal impact to our clients and Business Continuity Plans operations in the event of a significant business disruption

Annual employee training on cybersecurity risks, compliance requirements, Annual Employee Training and the handling of proprietary information 4 2 Board & ERM Audit Strategies and Multilayered Organizational Structure Committee Operational Board Level Oversight Procedures Audit Committee: oversees enterprise risk management, including cybersecurity

Executive Level 3 Chief information officer Management Review (Legal, Cross-Organization Level Compliance & Cybersecurity working group Internal Co-chaired by Houlihan Lokey’s chief information officer and chief Audit) corporate governance and compliance officer Other members include: VP of network operations, network security manager, and membersof Houlihan Lokey’s legal and compliance teams

FromFrom Our our CEOCEO From Our Board About HL ESG Framework Social Governance Environment HL 21 Protecting Our Planet

Environmental Stewardship We have also engaged an experienced design firm for our new New York office space with eco-designs under consideration, from enhanced ventilation and air In addition to finding innovative solutions to help our clients grow their quality monitoring to green procurement, universal design, and waste diversion businesses through our Impact Advisory Practice, we strive to be policies. environmentally responsible within each of our offices and within the communities in which we do business to promote sustainable and safe Climate Resiliency and the Task Force on Climate-related Financial communities for our employees, clients, and neighbors. Disclosures (TCFD) We have implemented a number of company and office-wide environmental To date, we have conducted streamlined energy savings and carbon reporting stewardship programs in our day-to-day operations, such as: audits at our London office. As a service-based firm, Houlihan Lokey has not • Responsible consumptions initiatives that promote recycling and conducted a scenario-based climate impact analysis for this initial report. procurement of local products and food; However, the board and management evaluate our ESG risks and opportunities • Sustainable transportation programs, including cycling to work utilizing the framework TCFD recommends: governance, strategy, and risk schemes and carpooling; management. As we grow and further develop our ESG program, we intend to • Energy-saving practices through the use of LED lighting with timed evaluate the relevance of disclosure related to the quantifiable financial impact sensors and conscious air conditioning usage; under various global warming scenarios. • Paperless operations, such as eliminating filing cabinets in our London In addition, we are working with our business partners to review certain travel- office; and based programs that could positively impact our carbon footprint. For example, • Creation of an employee-led Sustainability Committee in our London office. our air travel partners offer carbon emission offset Our real estate has provided additional opportunities to reduce our programs on roundtrip flights and overall tickets, which environmental impact: may include collaborations with organizations that support forestry conversation and restoration. • Approximately 70% of our U.S. offices are Green Building Certified; and • Our Madrid office has been awarded LEED Gold precertification.

FromFrom Our our CEOCEO From Our Board About HL ESG Framework Social Governance Environment HL 22 Important Information Published in June 2021.

This document reflects the views of Houlihan Lokey, Inc. or its affiliates (“Houlihan Lokey”) based upon information believed to be reliable as of the publication date and Houlihan Lokey makes no representation as to the accuracy or completeness of such information. There is no guarantee that any forecast or opinion will be realized. All opinions expressed herein are as of the published date and are subject to change. This document is provided by Houlihan Lokey for informational purposes only.

Nothing herein constitutes investment advice or a recommendation relating to any security, commodity, derivative, investment management service or investment product. Investments in securities, derivatives and commodities involve risk, will fluctuate in price, and may result in losses. Any mention of securities should not be considered a recommendation or solicitation to purchase or sell such securities. It should not be assumed that any investment in these securities was, or will prove to be, profitable, or that the investment decisions we make in the future will be profitable or equal to the investment performance of securities referenced herein.

This document is intended only for persons residing in jurisdictions where its distribution or availability is consistent with local laws and Houlihan Lokey’s local regulatory authorizations.

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 the substance of such statements to not be realized in the future. 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. CORPORATE FINANCE FINANCIAL RESTRUCTURING

FINANCIAL AND VALUATION ADVISORY

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