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
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:
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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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
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
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
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
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
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
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
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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