GP StrategiesInvestor PresentationFebruary 2012                        Training | Consulting | Engineering
GP Presentation Template (white bkgrnd) 3.8.10.ppt    Safe Harbor    This presentation has been prepared by GP Strategies....
GP Presentation Template (white bkgrnd) 3.8.10.ppt    GP Strategies Investment Data     Exchange:                 NYSE (GP...
GP Presentation Template (white bkgrnd) 3.8.10.ppt    GP Strategies Today                   GP Strategies is a leading    ...
GP Presentation Template (white bkgrnd) 3.8.10.ppt    GP Strategies    ► GP‟s platform of being a complete training servic...
GP Presentation Template (white bkgrnd) 3.8.10.ppt    GP Industry Drivers    ► Industry Drivers      ■ Outsourcing - compa...
GP Presentation Template (white bkgrnd) 3.8.10.ppt    Training is a Large and    Fragmented Market    ► Total training ind...
GP Presentation Template (white bkgrnd) 3.8.10.ppt    GP Strategies Today    2500 Employees Worldwide      UNITED STATES  ...
GP Presentation Template (white bkgrnd) 3.8.10.ppt    Acquisition Timeline                                                ...
GP Presentation Template (white bkgrnd) 3.8.10.ppt     RWD Purchase Transaction     ► Transaction Description       ■ Purc...
GP Presentation Template (white bkgrnd) 3.8.10.ppt     GP Strategies Revenue     By Offering/Segment11
GP Presentation Template (white bkgrnd) 3.8.10.ppt     Product Sales Training 24%                                         ...
GP Presentation Template (white bkgrnd) 3.8.10.ppt     Custom E-Learning Product     Sales Training     ► GP has expanded ...
GP Presentation Template (white bkgrnd) 3.8.10.ppt     Custom Product Sales Training     ►    Automotive dealership sales ...
GP Presentation Template (white bkgrnd) 3.8.10.ppt     Commercial Training &     Technical Services 44%                   ...
GP Presentation Template (white bkgrnd) 3.8.10.ppt      Training Business Process      Outsourcing (BPO)      ►   Strategi...
GP Presentation Template (white bkgrnd) 3.8.10.ppt     Manufacturing and     International Training     ►    Lean Training...
GP Presentation Template (white bkgrnd) 3.8.10.ppt     Energy & Process 15%                                               ...
GP Presentation Template (white bkgrnd) 3.8.10.ppt     Energy & Process     Related Services     ►    GP iLearn – over 30,...
GP Presentation Template (white bkgrnd) 3.8.10.ppt     Government Services 17%                                            ...
GP Presentation Template (white bkgrnd) 3.8.10.ppt     Acquisitions Strategy of UK Job Skills     Training Companies     J...
GP Presentation Template (white bkgrnd) 3.8.10.ppt     Government Services     ►    Government Hosting of Learning Managem...
GP Presentation Template (white bkgrnd) 3.8.10.ppt     Strong Financial Position     ►    Strong incremental operating mar...
GP Presentation Template (white bkgrnd) 3.8.10.ppt       GP Strategies Yearly       Revenue Trending                  $300...
GP Presentation Template (white bkgrnd) 3.8.10.ppt       GP Strategies EBITDA                     $30.0                   ...
GP Presentation Template (white bkgrnd) 3.8.10.ppt     GP Backlog                                                         ...
GP Presentation Template (white bkgrnd) 3.8.10.ppt     GP Strategies Balance Sheet                                        ...
GP Presentation Template (white bkgrnd) 3.8.10.ppt     Summary     ► Recognized leader in a large training market     ► Bl...
GP Presentation Template (white bkgrnd) 3.8.10.ppt     Comments/Questions29
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Gpx investor presentation 2012

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GP Strategies Corporation Investor Presentation 2012. NYSE: GPX

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Gpx investor presentation 2012

  1. 1. GP StrategiesInvestor PresentationFebruary 2012 Training | Consulting | Engineering
  2. 2. GP Presentation Template (white bkgrnd) 3.8.10.ppt 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.2
  3. 3. GP Presentation Template (white bkgrnd) 3.8.10.ppt GP Strategies Investment Data Exchange: NYSE (GPX) Business: Custom Training & Performance Improvement Web Address: www.gpworldwide.com Headquarters: Elkridge, Maryland USA Common Shares Outstanding – Fully Diluted 19.0 million Market Capitalization @ $15.00 per share $285 million Adjusted EBITDA – Twelve Months Trailing 9/30/2011 $31.8 million Adjusted EBITDA – Three Months Ending 9/30/2011 $9.3 million Aggressive Acquisition Strategy Corporate Contacts: Scott Greenberg-CEO – Telephone: 410-379-3640 Sharon Esposito-Mayer-CFO – Telephone: 410-379-3636 Investor Relations: Ann Blank-Director of Investor Relations – Telephone: 410-379-37253
  4. 4. GP Presentation Template (white bkgrnd) 3.8.10.ppt GP Strategies Today GP Strategies is a leading custom training and performance improvement company. The company enables Fortune 1000 Companies, Utilities, and Government Organizations to sell more products and improve operating efficiency.4
  5. 5. GP Presentation Template (white bkgrnd) 3.8.10.ppt GP Strategies ► GP‟s platform of being a complete training services organization with strong technical abilities is being recognized by the Training Community. ► Industry Awards ■ Number 1 Training Provider (Black Book of Outsourcing) ■ Top “Breadth of Service” Learning Provider (HRO Today) ■ Top Learning Portal Company (Training Industry.com) ■ Top 20 Sales Methodology Training Company (Training Industry, Inc.) ■ Two Awards from Chief Learning Officer Magazine ■ Two Awards from Brandon Hall (Gold and Bronze) ► Proof of Concept ■ Major contract from Microsoft ■ Hyundai (Top Five Customer) ■ Contract award in 2011 from Bank of America5
  6. 6. GP Presentation Template (white bkgrnd) 3.8.10.ppt GP Industry Drivers ► Industry Drivers ■ Outsourcing - companies focusing on core competencies and reducing costs ■ Cost effectiveness of E-Learning solutions ■ New products and changing technology necessitate continuous training ■ Global expansion and alignment ■ Aging workforce ► Key Differentiators ■ Training industry reputation ■ Strong technical background (industry expertise) ■ Global delivery ■ Acquisitions in fragmented industry • Purchased RWD Technologies Total solutions provider6
  7. 7. GP Presentation Template (white bkgrnd) 3.8.10.ppt Training is a Large and Fragmented Market ► Total training industry is $52.8 billion* ► Currently, in excess of 60% of training is performed by in- house departments, but GP believes that the trend will be to outsource and focus on core competencies $70 $58.5 $60 $55.8 $56.2 $51.1 $52.2 $52.8 $ Billions $50 $40 $30 2005 2006 2007 2008 2009 2010 Data Source: Training Magazine’s 2010 Industry Report *Commercial market only7
  8. 8. GP Presentation Template (white bkgrnd) 3.8.10.ppt GP Strategies Today 2500 Employees Worldwide UNITED STATES CANADA UNITED KINGDOM FRANCE GERMANY CHINA MEXICO MALAYSIA IRELAND INDIA SINGAPORE8
  9. 9. GP Presentation Template (white bkgrnd) 3.8.10.ppt Acquisition Timeline Other Smaller Acquisitions PCS - 2008 Clutterbucks - 2008 Future Perfect - 2008 Bath Consulting - 2010 Academy of Training - 2010 Ultra Training - 2010 Van Hee - 20119
  10. 10. GP Presentation Template (white bkgrnd) 3.8.10.ppt RWD Purchase Transaction ► Transaction Description ■ Purchase price of $28 million ■ 2010 revenue approximately $65 million ■ Transaction closed effective April 15, 2011 ■ Accretive in Six Month Ended September 30, 201110
  11. 11. GP Presentation Template (white bkgrnd) 3.8.10.ppt GP Strategies Revenue By Offering/Segment11
  12. 12. GP Presentation Template (white bkgrnd) 3.8.10.ppt Product Sales Training 24% Product E-Learning Sales Product E-Learning Sales 10% 10% Sandy Sales Training 14% Sandy Sales Automotive Training 14%12
  13. 13. GP Presentation Template (white bkgrnd) 3.8.10.ppt Custom E-Learning Product Sales Training ► GP has expanded into sales training outside of the automotive industry13
  14. 14. GP Presentation Template (white bkgrnd) 3.8.10.ppt Custom Product Sales Training ► Automotive dealership sales training ► 35 years experience – Sandy branding ► Predominant player at General Motors North America ► Stable Profit % despite reduced revenue in 2009 ► Expansion with Jaguar and Hyundai14
  15. 15. GP Presentation Template (white bkgrnd) 3.8.10.ppt Commercial Training & Technical Services 44% Manufacturing BPO 25% RWD Acquisition 19%15
  16. 16. GP Presentation Template (white bkgrnd) 3.8.10.ppt Training Business Process Outsourcing (BPO) ► Strategic assessment & planning ► Technology integration ► Training program development ► Administration/logistical functions ■ Student enrollment ■ Call Center/Help Desk ■ Learning event planning & logistics ■ Vendor and program management ■ Tuition reimbursement administration management ► Long-term relationships for administration services 2012 initiative is to continue to cross-sell other training services to BPO clients16
  17. 17. GP Presentation Template (white bkgrnd) 3.8.10.ppt Manufacturing and International Training ► Lean Training ► Supervisory Training ► Reliability and Maintenance Training ► Call Center Support ► Skills Training ► Leadership Training17
  18. 18. GP Presentation Template (white bkgrnd) 3.8.10.ppt Energy & Process 15% Energy 7% RWD Acquisition 3% Alternative Fuels & Process 5%18
  19. 19. GP Presentation Template (white bkgrnd) 3.8.10.ppt Energy & Process Related Services ► GP iLearn – over 30,000 power plant workers access their training on a subscription basis with over 1,600 lessons available ► EtaPRO – performance monitoring and optimization software on 800+ generating units worldwide. GP real time monitoring helps plants achieve improved performance and reduced emissions ► $7.9 million of awards announced with Eskom, over 85 generating units ► Alternate Energy – GP is a leader in the design/build of liquid natural gas and hydrogen fueling stations ► Custom training and consulting to the process and power industries19
  20. 20. GP Presentation Template (white bkgrnd) 3.8.10.ppt Government Services 17% E-Learning/UK Job Skills 10% Government Training Services 7%20
  21. 21. GP Presentation Template (white bkgrnd) 3.8.10.ppt Acquisitions Strategy of UK Job Skills Training Companies Job Skills Apprentice Training funded by UK Government SFA (Skills Funding Agency) ► Proposed SFA minimum contract regulations will reduce number of suppliers over the next 5 years. Suppliers will have to generate in excess of £5 million revenue to continue to receive funding. Year 2011/12 began the first process, eliminating all companies below £0.5 million. ► GP currently at $28 million up from $8 million in 2009 of revenue funded by SFA for 2011/12. ► Highly profitable GP business unit as a percentage to revenue ► GP‟s strategy is to generate sufficient service level and geographic reach to qualify for National Contracts21
  22. 22. GP Presentation Template (white bkgrnd) 3.8.10.ppt Government Services ► Government Hosting of Learning Management Systems ► E-Learning Services ► Federal and State First Responder Training ► Chemical Demilitarization Training Facilities ► Environmental, Engineering and Technical Services22
  23. 23. GP Presentation Template (white bkgrnd) 3.8.10.ppt Strong Financial Position ► Strong incremental operating margins ► Variable cost structure ► Strong cash flow ► $35 million credit facility23
  24. 24. GP Presentation Template (white bkgrnd) 3.8.10.ppt GP Strategies Yearly Revenue Trending $300 $267.9 $259.9 $239.3 $250 $219.2 72.5 47.1 $189.1 26.9 $200 45.6 23.0 39.3 $ Millions 22.0 43.1 34.6 16.9 22.7 $150 50.4 16.6 29.8 52.0 32.0 $100 146.7 123.1 126.4 $50 98.9 105.9 $0 2008 2009 2010 YTD Q3 2010 YTD Q3 2011 Manufacturing & BPO Process & Govt Energy Sandy RWD24
  25. 25. GP Presentation Template (white bkgrnd) 3.8.10.ppt GP Strategies EBITDA $30.0 $25.3* $24.5 $23.6 $25.0 $18.1 $20.0 $17.2 $ Millions $15.0 $10.0 $5.0 $0.0 2008 2009 2010 YTD Q3 2010 YTD Q3 2011 *Includes $1.3M gain in fair value of contingent consideration partially offset by $0.4M loss on restructuring25
  26. 26. GP Presentation Template (white bkgrnd) 3.8.10.ppt GP Backlog $185.4 $200.0 $180.0 $160.0 $131.7 $136.1 $140.0 $125.2 $ Millions $120.0 $100.0 $80.0 $60.0 $40.0 $20.0 $0.0 Dec-08 Dec-09 Dec-10 Sep-1126
  27. 27. GP Presentation Template (white bkgrnd) 3.8.10.ppt GP Strategies Balance Sheet Reported Reported December 31, September 30, 2010 2011 Cash $ 28,902 $ 5,447 Accounts Receivable 47,874 58,497 Inventory 305 223 Costs in Excess of Billings 12,929 20,332 Prepaid Expenses & Other 5,813 8,087 Total Current Assets 95,823 92,586 Property, Plant & Equip. 2,965 4,660 Goodwill & Intangibles 82,791 109,796 Other 1,617 1,736 Total Assets $ 183,196 $ 208,778 Current Portion of LT Debt $ - $ - Short Term Borrowings - 6,154 Accounts Payable 32,694 41,631 Billing in Excess 15,807 15,058 Total Current Liabilities 48,501 62,843 Other Non-Current Liabilities 9,908 8,422 Stockholders Equity 124,787 137,513 Total $ 183,196 $ 208,77827
  28. 28. GP Presentation Template (white bkgrnd) 3.8.10.ppt Summary ► 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 GP is poised for success28
  29. 29. GP Presentation Template (white bkgrnd) 3.8.10.ppt Comments/Questions29

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