gpx investor presentation 2012

Training | Consulting | Engineering

GP StrategiesInvestor Presentation

February 2012

GP StrategiesInvestor Presentation

February 2012

GP Presentation Template (white bkgrnd) 3.8.10.ppt

2

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.


3

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: 410-379-3725


4

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.


5

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 America


6

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 TechnologiesTotal solutions provider


7

Training is a Large andFragmented 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

2005 2006 2007 2008 2009 2010$30

$40

$50

$60

$70

$51.1

$55.8$58.5

$56.2

$52.2 $52.8

$ B

illi

on

s

Data Source: Training Magazine’s 2010 Industry Report *Commercial market only


8

GP Strategies Today2500 Employees Worldwide

CANADA UNITED KINGDOM FRANCE

GERMANY

CHINA

MALAYSIA

SINGAPOREIRELAND INDIA

MEXICO

UNITED STATES


9

Acquisition Timeline

Other Smaller Acquisitions

PCS - 2008Clutterbucks - 2008Future Perfect - 2008Bath Consulting - 2010Academy of Training - 2010Ultra Training - 2010Van Hee - 2011


10

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, 2011


11

GP Strategies RevenueBy Offering/Segment


12

Product Sales Training 24%

Sandy Sales Automotive Training

14%

Product E-Learning Sales

10%Product E-Learning Sales 10%

Sandy Sales Training 14%


13

Custom E-Learning ProductSales Training

► GP has expanded into sales training outside of the automotive industry

http://rds.yahoo.com/_ylt=A0WTb_jl54lJCbAAwHmJzbkF;_ylu=X3oDMTBpZTByOGFiBHBvcwMyBHNlYwNzcgR2dGlkAw--/SIG=1gekc6vr1/EXP=1233860965/**http:/images.search.yahoo.com/images/view?back=http://images.search.yahoo.com/search/images?_adv_prop=image&fr=yfp-t-501&va=microsoft+logos&sz=all&w=140&h=60&imgurl=www.satmc.com/images/logos-microsoft.gif&rurl=http://www.satmc.com/images?S=A&size=1.1kB&name=logos-microsoft.gif&p=microsoft+logos&type=gif&oid=cca483ec9d29ef46&no=2&tt=4,403&sigr=10vb9akn9&sigi=118ut9qc8&sigb=133revf6r

http://www.pamperedchef.com/

http://shop.avon.com/shop/default.asp?col=2

http://www.viatraining.com/index.php


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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 Hyundai

http://en.wikipedia.org/wiki/File:09_Hyundai_Genesis.jpg

http://en.wikipedia.org/wiki/File:2009_Ford_Flex_(1).jpg

http://www.netcarshow.com/jaguar/2009-xf/800x600/wallpaper_32.htm

http://rds.yahoo.com/_ylt=A0WTb_trdMRLz2QAV9WJzbkF;_ylu=X3oDMTBpZm5udGl1BHBvcwM1BHNlYwNzcgR2dGlkAw--/SIG=1ir784krb/EXP=1271252459/**http:/images.search.yahoo.com/images/view?back=http://images.search.yahoo.com/search/images?_adv_prop=image&b=1&ni=20&va=white+1982+corvette&xargs=0&pstart=1&fr=yfp-t-701&w=600&h=264&imgurl=www.contes.com/carpics/82whiteJULY-(3).jpg&rurl=http://www.contes.com/82whiteJULY.html&size=20k&name=82whiteJULY+3+jp...&p=white+1982+corvette&oid=763d5db47e669770&fr2=&no=5&tt=83&b=1&ni=20&sigr=116ss15fl&sigi=11aik6t19&sigb=13rv75b2p


15

Commercial Training & Technical Services 44%

Manufacturing BPO 25%RWD Acquisition 19%


16

Training Business ProcessOutsourcing (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 clients

http://www.comcast.com/default.html

http://www.corning.com/index.aspx

http://www.cisco.com/en/US/hmpgs/index.html

http://www.lilly.com/



17

Manufacturing andInternational Training

► Lean Training► Supervisory Training► Reliability and Maintenance Training► Call Center Support► Skills Training► Leadership Training

http://rds.yahoo.com/_ylt=A0geu.NQ6YlJRy0AFjVXNyoA;_ylu=X3oDMTB2YzQxYms0BHNlYwNzYwRjb2xvA2FjMgR2dGlkA01BUDAxMV8xMDA-/SIG=1ntc81kr4/EXP=1233861328/**http:/images.search.yahoo.com/images/view?back=http://search.yahoo.com/search?ei=UTF-8&p=RBS+Logo&w=385&h=185&imgurl=business.timesonline.co.uk/multimedia/archive/00335/04OL-RBS_385x185_335736a.jpg&size=13.5kB&name=04OL-RBS_385x185_335736a.jpg&rcurl=http://business.timesonline.co.uk/tol/business/industry_sectors/banking_and_finance/article4039047.ece&rurl=http://business.timesonline.co.uk/tol/business/industry_sectors/banking_and_finance/article4039047.ece&p=rbs+logo&type=jpeg&no=1&tt=693&oid=49bbc87dc84abe7c&tit=04OL-RBS_385x185_335736a.jpg&sigr=136o0tsso&sigi=12g6hjv79&sigb=11i65cnbt

http://rds.yahoo.com/_ylt=A0WTb_rx6YlJBlsBf4aJzbkF;_ylu=X3oDMTBpc2ozM2gzBHBvcwM0BHNlYwNzcgR2dGlkAw--/SIG=1fm3mr6kt/EXP=1233861489/**http:/images.search.yahoo.com/images/view?back=http://images.search.yahoo.com/search/images?_adv_prop=image&fr=yfp-t-501&va=barclays+logo&sz=all&w=463&h=95&imgurl=www.vsl3d.com/barclays_logo.jpg&rurl=http://www.vsl3d.com/fly-barclays.htm&size=13kB&name=barclays_logo.jpg&p=barclays+logo&type=JPG&oid=6563773c3b091690&no=4&tt=440&sigr=115abgp4r&sigi=10vmge6rr&sigb=131p1nd2j

http://www.fedex.com/us/

http://www.wyeth.com/

http://www.rolls-royce.com/


http://rds.yahoo.com/_ylt=A0WTb_yn6YlJ3j0BZIGJzbkF;_ylu=X3oDMTBpaWhqZmNtBHBvcwMzBHNlYwNzcgR2dGlkAw--/SIG=1ins0tb36/EXP=1233861415/**http:/images.search.yahoo.com/images/view?back=http://images.search.yahoo.com/search/images?_adv_prop=image&fr=yfp-t-501&va=us+steel+logo&sz=all&w=125&h=121&imgurl=www.streetinsider.com/images/summaries/117/thumb_US%20Steel%20Logo.jpg&rurl=http://www.streetinsider.com/stock_lookup.php?q=X&size=9.5kB&name=thumb_US+Steel+Logo.jpg&p=us+steel+logo&type=JPG&oid=39b4929a69cbe6c6&no=3&tt=833&sigr=11hu3gnec&sigi=126qrkshq&sigb=131ef6isf

http://www.bms.com/


18

Energy & Process 15%

RWD Acquisition 3%Alternative Fuels & Process 5%

Energy 7%


19

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 industries

http://rds.yahoo.com/_ylt=A0geu66_r4lJPFsAwBdXNyoA;_ylu=X3oDMTB2YzQxYms0BHNlYwNzYwRjb2xvA2FjMgR2dGlkA01BUDAxMV8xMDA-/SIG=1kbu90ua9/EXP=1233846591/**http:/images.search.yahoo.com/images/view?back=http://search.yahoo.com/search?ei=UTF-8&p=Duke+Energy+Logo&y=Search&w=1148&h=390&imgurl=www.miamitwp.org/commrel/images/duke-logo-color.jpg&size=26.9kB&name=duke-logo-color.jpg&rcurl=http://www.miamitwp.org/commrel/news_archives/1107_duke.htm&rurl=http://www.miamitwp.org/commrel/news_archives/1107_duke.htm&p=duke+energy+logo&type=jpeg&no=1&tt=53&oid=66231b03c6b989ec&tit=duke-logo-color.jpg&sigr=11r1n17qi&sigi=11j72hkej&sigb=123ail366

http://www.eskom.co.za/


20

Government Services 17%

E-Learning/UK Job Skills 10%

Government Training Services 7%


21

Acquisitions Strategy of UK Job SkillsTraining 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 Contracts


22

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

Services

http://www.dhs.gov/


23

Strong Financial Position

► Strong incremental operating margins► Variable cost structure► Strong cash flow ► $35 million credit facility


24

GP Strategies YearlyRevenue Trending

2008 2009 2010 YTD Q3 2010 YTD Q3 2011$0

$50

$100

$150

$200

$250

$300

123.198.9

146.7

105.9126.4

50.4

52.0

43.1

32.0

29.8

22.0

22.7

23.0

16.6

16.9

72.5

45.6

47.1

39.3

26.9

Manufacturing & BPO Process & Govt Energy Sandy RWD

$ M

illio

ns

$267.9

34.6

$219.2

$259.9

$189.1

$239.3


25

GP Strategies EBITDA

2008 2009 2010 YTD Q3 2010 YTD Q3 2011$0.0

$5.0

$10.0

$15.0

$20.0

$25.0

$30.0$23.6

$17.2

$25.3*

$18.1

$24.5

$ M

illi

on

s

*Includes $1.3M gain in fair value of contingent consideration partially offset by $0.4M loss on restructuring


26

GP Backlog

Dec-08 Dec-09 Dec-10 Sep-11$0.0

$20.0

$40.0

$60.0

$80.0

$100.0

$120.0

$140.0

$160.0

$180.0

$200.0

$131.7 $125.2

$136.1

$185.4

$ M

illio

ns


27

GP Strategies Balance Sheet

Reported ReportedDecember 31, September 30,

2010 2011Cash 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$ 208,778$


28

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 success


29

Comments/Questions

www.gpworldwide.com