Transaction Overview: GCA Corporation

Overview of

GCA Corporation

Transaction

August 2021

GCA Corporation Overview

• Founded in 2004, GCA Corporation ("GCA" or the "Company") is a global technology-focused investment bank providing M&A advisory and capital markets advisory services in Europe, Japan/Asia, and North America.
• The Company is publicly traded on the Tokyo Stock Exchange with a market capitalization of approximately $428 million as of August 2, 2021.
• As of June 30, 2021, GCA employs more than 500 employees in 24 locations around the globe.
• GCA is forecasting CY2021 revenues¹ of approximately $355 million.
• Approximately 68% of YTD June 30, 2021 revenues are in the technology and related sectors.

Note: Per GCA's website, public financials, and CapitalIQ. Figures converted from JPY to USD using exchange rate of ¥110 to $1.

1. Based on GCA's non-GAAP public disclosure in Tokyo on August 3, 2021.

Office Locations

New York

San Francisco

		Stockholm
Manchester	Leeds
	London
Birmingham	Frankfurt
Munich
	Paris
	Zurich
	Lausanne
	Milan
		Tokyo

Tel Aviv	New Delhi	Shanghai	Nagoya
		Kyoto
	Mumbai		Osaka
	Singapore	Ho ChiMinh City	Fukuoka

Houlihan Lokey | 2

GCA is Technology-Oriented, Global, and Sell-Side Focused

GCA is strategically focused on technology, specifically

digital, software, and related sectors.

The Company generates revenues across the globe.

GCA's global platform results in significant cross-border

activity.

Industry

Q2 YTD		68%	32%
2021

Region

Q2 YTD		56%	26%	18%
2021

Domestic vs. Cross-Border

Q2 YTD		62%	38%
2021

Technology and

Related Sectors

Other

Europe

Japan/Asia

U.S.

Domestic Cross-Border

The majority of GCA's engagements are sell-side M&A.

Source: Per GCA's public financials.

Service Type

Q2 YTD					Sell-Side
59%	16%	25%
Buy-Side
2021
				Cap.Mkts / Other

Houlihan Lokey | 3

Financial Results

($ in millions)			GCA							HLI
	CY 2018	CY 2019	CY 2020	YTD Q2 2021	CY 2021E ¹					FY 2021 Adj.²
Revenues	$243	$214	$198	$170	$355		$1,525
Expenses
Compensation	162	142	134	123	--		953
Non-Compensation	45	41	39	23	--			140
Total Expenses	208	183	173	146	305		1,093
Operating Profit	$35	$31	$25	$24	$50		433
Net Income	$26	$21	$16	$17	$34		$317
Operating Ratios
Compensation Ratio	66.9%	66.2%	67.9%	72.5%	--		62.5%
Non-Compensation Ratio	18.7%	19.3%	19.7%	13.2%	--		9.1%
Operating Margin	14.4%	14.5%	12.4%	14.3%	14.1%		28.4%
Key Performance Metrics			GCA							HLI CF
Number of Transactions	145	165	160	133	--		360
Revenue Per Closed Transaction	$1.7	$1.3	$1.2	$1.3	--		$2.2

Note: Per GCA's website and public financials. Based on non-GAAP metrics converted from JPY to USD using exchange rate of ¥110 to $1. Figures may not sum due to rounding.

1. Based on GCA's non-GAAP public disclosure in Tokyo on August 3, 2021.
2. Adjusted figures represent non-GAAP information. For an explanation of the adjustments and reconciliation to the comparable GAAP numbers, please see our 8-K filed May 12, 2021, which includes our fourth quarter and fiscal year ended March 31, 2021 earnings release.

Houlihan Lokey | 4

Rationale for Combination of Business

• GCA's corporate culture, and the nature of its business, is highly complementary with Houlihan Lokey's Corporate Finance Group. This complementary fit is paramount to effectively integrating the two companies, enhancing the services we offer our clients, and maintaining our continued success.
• GCA addresses an important gap in our technology coverage, and positions us as a leading global technology investment banking firm, capable of offering a wide range of sector expertise to our clients. We believe expanding our technology capabilities is critical to meeting the needs of our clients, as technology increasingly touches every business sector.
• GCA brings a strong platform in the Asia Pacific region, which meaningfully increases our presence there, and allows us to begin to reach for scale and serve clients in this rapidly growing part of the world.
• GCA is a highly complementary fit, consistent with the types of transactions we have been doing for over a decade. GCA complements Houlihan Lokey by bringing:
• • A management team and firm culture that are a strong fit with Houlihan Lokey;
  • Industry presence and expertise that positions us to better serve our clients around the world;
  • Growth to our core industry groups outside of our predominately US presence; and
  • Expansion in the mid-cap space with room to grow transaction sizes and fees as the combined company takes advantage of a larger platform.
• This acquisition is projected to be accretive to Houlihan Lokey's EPS.

Houlihan Lokey | 5