GP Strategies INVESTOR Presentation · PDF fileGP Strategies INVESTOR Presentation MBI ......

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Knowledge. Performance. Impact. GP Strategies INVESTOR Presentation MBI – GP Strategies Company Confidential June 2016

Transcript of GP Strategies INVESTOR Presentation · PDF fileGP Strategies INVESTOR Presentation MBI ......

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Knowledge. Performance. Impact.

GP Strategies INVESTOR Presentation

MBI – GP Strategies Company Confidential

June 2016

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Safe Harbor

This presentation has been prepared by GP Strategies. This presentation does not constitute an offer to any person or to the general public to acquire securities issued in any jurisdiction or an inducement to enter into investment activity.

The information contained in this presentation has not been independently verified. No representation or warranty expressed or implied is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or the opinions contained herein. The Company or any of its respective affiliates shall not have any liability whatsoever (in negligence or otherwise) for any loss howsoever arising from any use of this presentation or its contents or otherwise arising in connection with the presentation.

This presentation is only for persons having professional experience in matters relating to investments and must not be acted or relied on by persons who are not such persons.

This presentation includes ‘forward-looking statements’. These statements contain the words “anticipate”, “believe”, “intend”, “estimate”, “expect” and words of similar meaning. All statements other than statements of historical facts included in this presentation, including, without limitation, those regarding the Company’s financial position, business strategy, plans and objectives of management for future operations (including development plans and objectives relating to the Company’s products and services) are forward-looking statements. Such forward-looking statements involve known and unknown risks, uncertainties and other important factors that could cause the actual results, performance or achievements of the Company to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements. Such forward-looking statements are based on numerous assumptions regarding the Company’s present and future business strategies and the environment in which the Company will operate in the future. These forward-looking statements speak only as at the date of this presentation. The Company expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statements contained herein to reflect any change in the Company’s expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based.

Past performance cannot be relied upon as a guide to future performance.

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INVESTMENT DATA

Common Shares Outstanding – Fully Diluted 16.8 million

Market Capitalization @ $23.25 per share $391 million

Revenue –Twelve Months Ended 12/31/2015 $490 million

Corporate Contacts: Scott Greenberg, CEO 443-367-9640

Sharon Esposito-Mayer, CFO 443-367-9636

Investor Relations: Ann Blank, Director, Investor Relations 443-367-9925

Exchange: NYSE (GPX) Business: Custom Training & Performance Improvement Web Address: www.gpstrategies.com Headquarters: Columbia, Maryland USA

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GP Strategies AWARDS

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Engineering New Record 2015 ENR Top 500 Design Firms

Elearning! Magazine 2015 Winner for Best Outsource Learning Services provider

2014 Excellence for Best Managed Learning Services provider

Training Industry, Inc. 2016 Top 20 Sales Training Company (9th Consecutive Year) 2016 Top 20 Leadership Training Company (4th Consecutive Year) 2015 Top 20 IT Training Company (8th Consecutive Year) 2015 Top 20 Gamification Company (2nd Consecutive Year) 2015 Top 20 Learning Portal Company (6th Consecutive Year) 2015 Top 20 Workforce Development Company (4th Consecutive Year) 2015 Top 20 Content Development Company (5th Consecutive Year) 2015 Top 20 Training Outsourcing Company (12th Consecutive Year)

Brandon Hall Group 2015 Gold | Best Custom Content Gold | Best Sales Training Program Gold | Best Advance in Benefits Strategy and Administration Silver | Best Advance in Custom Content Silver | Best Learning Team Bronze | Best Advance in Compliance Training Bronze | Best Unique or Innovative Leadership Development Program Bronze | Best New Hire Onboarding Program Bronze | Best Advance in Succession and Career Management

Leadership Excellence 2014 Leadership Partners and Providers Large Consulting Groups (50+employees); Ranked #3 (7th Consecutive Year)

Leadership Excellence 2007-2015 Leadership 500

Deere & Company 2015 “Partner-Level Supplier” Recognition (6th Consecutive Year)

What CLIENTS say about us: What INDUSTRY says about us:

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Our LOCATIONS

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EMEA AMERICAS

Argentina Brazil

Canada Colombia Mexico

United States

APAC

Australia* Hong Kong

India Japan

Mainland China Malaysia

Philippines Singapore

South Korea Taiwan

Denmark Egypt *

Finland * France

Germany Hungary *

Netherlands Poland

South Africa Turkey

United Arab Emirates United Kingdom

* Registered Entity – Office Location Pending

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1

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x 152 Fortune 500 Customers

119 Global 500 List Customers

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Organization Growth — CUSTOMERS

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• Competitive Strengths: – Global Delivery and Single-Source Custom Training Solutions Provider – Outstanding Reputation in the Industry – Diverse and Stable Client Base – Scalable Technology Platform – Legacy Technical Expertise – Business Model Supports Visibility of Revenue – Highly Qualified and Dedicated Employees and Tenured Management

GP Strategies COMPETITIVE STRENGTHS

• Industry Drivers: – Outsourcing - companies focusing on core competencies and reducing costs – Cost effectiveness of E-Learning solutions – New products, changing technology and regulations – Global expansion and alignment

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Training is a LARGE and FRAGMENTED MARKET

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• Total training industry is over $100 billion • Currently, in excess of 60% of training is performed by in-house

departments, but the trend to outsource increased in 2015

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We are focused on expanding our SERVICES and PRODUCT LINES

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GP Strategies REVENUE BY SEGMENT

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Sandy Training & Marketing,

19%

Learning Solutions, 43%

Performance Readiness

Solutions, 16%

Professional & Technical

Services, 22%

• Product Sales Training • Marketing

• Managed Global Learning Services

• Content Design & Development

• Organization & Leadership Development

• Sales Solutions

• Technical & Engineering • Energy Products • Government Services

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Automotive Product Sales Training SANDY TRAINING & MARKETING

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• Automotive dealership sales training • 35+ years experience – Sandy branding • Predominant player at General Motors (largest customer) North

America • Automotive solutions offering includes technical training,

publications, and product launch services • Received major contract renewals in 2015 • Large publication award in 2015 • Expansion into new customers and using global platform • 5 customers in top 20

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Managed Global Learning Services

• Training Administration • Instructor Resource Management • Vendor Management • 24/7 Call Center Services • Tuition Program Management

GP Strategies LEARNING SOLUTIONS

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Content Design & Development

GP Strategies LEARNING SOLUTIONS

• Custom Content Design, Development and Delivery of training solutions that address specific levels of your organization and are in tune with local cultures and languages. Our delivery mediums include:

– Instructor-Led, Facilitative and Lecture-Based Training – E-Learning – Paper-Based Training – Technology-Based Training (WBT/CBT/CAI) – Video – Mobile – Virtual Instructor-Led Training (VILT) – Structured On-the-Job Training (OJT) – Blended Learning

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Organization & Leadership Development

• Executive Development Services • Leadership Development • Employee Engagement Services • Coaching (Mentoring) • Organizational Change and Transition Services • Platform Adoption Solutions • Role Excellence Profile

GP Strategies PERFORMANCE READINESS SOLUTIONS

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Sales Solutions

• Product Sales Training • Sales Performance Consulting • Sales Enablement Strategies • Sales Program Development • Customer Loyalty Training

GP Strategies PERFORMANCE READINESS SOLUTIONS

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Technical & Engineering

• Technical Documentation Development • Maintenance and Reliability Training and Tactics • Engineering Design/Construction Management • Process Safety, Risk Management and Compliance Solutions • Design/Build/Maintenance of LNG, LCNG and Hydrogen

Fueling Stations and Other Facilities • Power Plant Performance Consulting and Operator Training

GP Strategies PROFESSIONAL & TECHNICAL SERVICES

Technical & Engineering

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GP Strategies PROFESSIONAL & TECHNICAL SERVICES

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• GPiLEARN – over 50,000 power plant workers in over 40 countries access their training on a subscription basis with over 1,600 lessons available

• EtaPRO – performance and condition monitoring software on 1,400+ generating units in 37 countries worldwide. GP Strategies real time monitoring helps plants achieve improved performance and reduced emissions

Energy Products

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GP Strategies PROFESSIONAL & TECHNICAL SERVICES

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• Federal and State First Responder Training • Chemical Demilitarization Training & Support • Engineering and Technical Services

Government Services

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• Strong incremental operating margins • Variable cost structure • Strong cash flow • $65 million credit facility • Recurring client base • Backlog visibility

Strong FINANCIAL POSITION

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GP Strategies REVENUE

$0

$50

$100

$150

$200

$250

$300

$350

$400

$450

$500

$550

2012 2013 2014 2015 Q1 2015 Q1 2016

$401.6 $436.7 $501.9 $490.3

$115.3 $115.8

$ M

illio

ns

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Over 50 years of

SEASONED INSIGHTS

Serving a Diverse CLIENT BASE

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GP Strategies EBITDA

$0.0

$5.0

$10.0

$15.0

$20.0

$25.0

$30.0

$35.0

$40.0

$45.0

$50.0

$55.0

2012 2013 2014 2015 Q1 2015 Q1 2016

$44.0 $47.5

$53.4

$38.9

$9.2 $8.0

$ M

illio

ns

*Inclusive of Currency Losses, Restructuring & Contingent Consideration totaling $4.0M in 2015.

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GP Strategies BACKLOG

$0$25$50$75

$100$125$150$175$200$225$250$275$300

Dec-12 Dec-13 Dec-14 Dec-15 Mar-16

$221.3 $239.5 $234.1 $239.1 $254.0 $ M

illio

ns

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GP Strategies BALANCE SHEET

December 31, March 31,

2015 2016

Cash 21,030$ 16,470$

Accounts Receivable 90,912 86,483

Costs in Excess of Billings 46,061 41,953

Prepaid Expenses & Other 9,173 11,963

Total Current Assets 167,176 156,869

Property, Plant & Equip. 6,245 5,960

Goodwill & Intangibles 128,196 130,866

Other Assets 733 822

Total Assets 302,350$ 294,517$

Short Term Borrowings 34,084$ 33,092$

Current Portion of LT Debt 13,333 13,333

Accounts Payable 61,071 57,057

Billings in Excess of Costs 18,366 17,950

Total Current Liabilities 126,854 121,432

Long-Term Debt 11,111 7,778

Other Non-Current Liabilities 6,041 6,356

Stockholders' Equity 158,344 158,951

Total 302,350$ 294,517$

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• Recognized leader in a large training market • Blue chip customers in multiple markets • Clear growth strategy • Strong financial position • Successful acquisition strategy in highly fragmented markets

POISED for SUCCESS

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gpstrategies.com

© 2016 GP Strategies Corporation. All rights reserved. GP Strategies, GP Strategies and logo design, BlessingWhite, Rovsing Dynamics, Asentus, Information Horizons, PMC, GP Sandy, Bath Consultancy Group, Academy of Training, Martonhouse, Via Training, Beneast Training, Ultra, RWD, Communication Consulting, Option Six, Milsom, Clutterbuck Associates, PerformTech, Future Perfect, Smallpeice Enterprises, Prospero Learning Solutions, Lorien Engineering Solutions, Effective-People, Effective-Learning, GPiLEARN, GPCALCS, GPSteam, EtaPRO, and VirtualPlant are trademarks or registered trademarks of GP Strategies Corporation in the U.S. and other countries. All other trademarks are trademarks or registered trademarks of their respective owners. Proprietary to GP Strategies Corporation

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