GP Strategies — Investor Presentation (January 2021)
21 slides from GP Strategies's investor presentation, Jan 5, 2021
Slide 1: Investor Presentation January 2021
INVESTOR PRESENTATION 50+ years of providing insight and innovation January 2021 Together we make trans٦ormation happen
Slide 2: Cautionary Note About Forward-Looking Statements and Non-GAAP Financial Measures
CAUTIONARY NOTE ABOUT FORWARD-LOOKING STATEMENTS AND NON-GAAP FINANCIAL MEASURES This presentation contains ٦orward-looking statements within the meaning o٦ Section 27A o٦ the Securities Act o٦ 1933, as amended, and Section 21E o٦ the Securities Exchange Act o٦ 1934, as amended (the “Exchange Act”).
Slide 3: Your Workforce Transformation Partner
YOUR WORKFORCE TRANSFORMATION PARTNER INCREASE EFFICIENCY OPTIMIZE PERFORMANCE MAXIMIZE POTENTIAL Together we make trans٦ormation happen H E L P I N G
Slide 4: Investment Data: Operating Highlights and Market Data
INVESTMENT DATA OPERATING HIGHLIGHTS: • Proactive approach by the Management team in dealing with the impact o٦ the pandemic • Management re٦ocused e٦٦ort on growing core industries a٦ter success٦ully completing selective divestitures and reorganization o٦ operations • Low leverage, strong balance s
Slide 5: Why GP Strategies?
We bring big ideas WHY GP STRATEGIES? FOCUSED ON: • Margin Expansion • Port٦olio Management • Selective Strategic Acquisitions 04 STRONG BAL ANCE SHEE T02 STRONG CASH FLOW GENERATION03 GROWT H CYCL ICAL COMPANY01
Slide 6: GPX Highlights
GPX HIGHLIGHTS 60% average revenue ٦rom multi-year contracts Additional 30% o٦ revenue ٦rom existing customers Operate in more than 80 countries Deep Industry Expertise Strong Client Retention Global Capability Blue Chip Customer Base Large Addressable Market Operate in more than 80 countrie
Slide 7: Strong Competitive Position
Largest Competitor Internal Training Departments a) During economic down cycles internal training sta٦٦ are ٦requently reduced b) During economic recoveries, organizations have typically been slow to add internal training department costs GP historically emerges from economic cycles in a stronger po
Slide 8: Global Operations
* Satellite Locations Building strong trusted partnerships, one client at a time N O R T H A M E R I C A Canada, United States E M E A Cyprus*, Denmark, Egypt, Finland, France, Germany, Hungary*, Ireland*, Netherlands, Poland, Portugal*, Romania, Spain, Sweden, Switzerland, South A٦rica, Turkey, Uni
Slide 9: Deep expertise in key industries
Deep expertise in key industries A U T O M OT I V E 23% F I N A N C I A L S E R V I C E S 19% A E R O S PA C E & D E F E N S E 13% T E C H N O LO G Y 8% E N E R G Y 8% L I F E S C I E N C E S 5% OT H E R 24% Keep your people inspired, connected and moving ٦orward INDUSTRIES WE SERVE
Slide 10: Our purpose is to enable people and businesses to perform at their highest potential
Our purpose is to enable people and businesses to per٦orm at their highest potential B U S I N E S S C O N S U LT I N G & O R G A N I Z AT I O N A L D E V E L O P M E N T Align your vision and strategy ٦or sustained superior results L E A D E R S H I P S O L U T I O N S Create your leadership edge L
Slide 11: Awards & Recognition
AWARDS & RECOGNITION Asia-Pacific Stevie Awards GOLD (2019) AVANGRID Supplier of the Year for Health & Safety (2019) Brandon Hall HCM Excellence 3 GOLD | 3 SILVER | 6 BRONZE (2018) 3 GOLD | 4 SILVER | 3 BRONZE (2019) 4 GOLD | 4 SILVER | 4 BRONZE (2020) Chief Learning Officer Learning in Practice 2 G
Slide 12: Portfolio Management and Financial Strategy
AND FINANCIAL STRATEGY
Slide 13: Portfolio Management
PORTFOLIO MANAGEMENT Expand FootprintExpand Service RollupConsolidation RWD (2011) Option Six (2009) Martonhouse (2010) UK Skills Funding Academy o٦ Training (2010) Ultra Training (2011) Beneast (2011) In٦ormation Horizons (2012) Prospero (2013) Jencal (2016) YouTrain (2017) Hu
Slide 14: Capital Allocation Strategy
CAPITAL ALLOCATION STRATEGY 14 ACQUISITION STRATEGY POTENTIAL RETURN OF CAPITAL The Company will ٦ocus on strategic acquisitions in complementary competencies in core industries with the ٦ollowing criteria: 1. Selective discipline on acquisitions to complement current core industries and competencie
Slide 15: Strong Balance Sheet
REVOLVING CREDIT AGREEMENT STRONG BALANCE SHEET THE COMPANY HAS HISTORICALLY GENERATED STRONG NET CASH FLOW FROM OPERATING ACTIVITIES. $13.4M 2019 $11.2M 2018 $26.3M 2017 $119.7M Borrowings under revolver as o٦ 6/30/19 $12.7M Borrowings under revolver as o٦ 12/31/2020 $45.4M 2020 (as o٦ 9/30/2020) $
Slide 16: Looking Forward
45.0 49.3 37.9 40.9 30.5 490.6 509.2 515.2 583.3 505.4 Adjusted EBITDA Revenue 7.4%9.7% LOOKING FORWARD 2016 2017 ($ in millions) 2018 2019 7.0% 9.0% TTM 9/30/2020 6.0% Adjusted EPS $1.26 $1.43 $0.90 $0.84 $0.56 OUR FOCUS IS ON MARGIN EXPANSION, INTEREST EXPENSE REDUCTION, and EPS IMPROVEMENT
Slide 17: Let's Work Together
L E T ’ S W O R K T O G E T H E R
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Slide 19: Adjusted EBITDA Reconciliation
TTM September 30, 2020 Nine Months Ended September 30, 2020 Three Months Ended December 31, 2019 Year Ending December 31, 2019 Year Ending December 31,2018 Year Ending December 31, 2017 Year Ending December 31, 2016 Net income (loss) $ 8,116 $ (1,379) $ 9,495 $ 15,189 $ 9,836 $ 12,891 $ 20,247 Inter
Slide 20: Adjusted EPS Reconciliation
TTM September 30, 2020 Nine Months Ended September 30, 2020 Three Months Ended December 31, 2019 Year Ending December 31, 2019 Year Ending December 31,2018 Year Ending December 31, 2017 Year Ending December 31, 2016 Diluted EPS $ 0.48 $ (0.08) $ 0.56 $ 0.90 $ 0.59 $ 0.76 $ 1.21 Stock compensation se
Slide 21: Thank You!
THANK YOU! Presented by www.gpstrategies.com © 2021 GP Strategies Corporation. All rights reserved. GP Strategies and GP Strategies with logo design are registered trademarks o٦ GP Strategies Corporation. All other trademarks are trademarks or registered trademarks o٦ their respective owners. Propri