Caldwell Partners International Inc. · TSX:CWL
Caldwell Partners International — Shareholder Meeting (February 2023)
29 slides from Caldwell Partners International's shareholder meeting presentation, Feb 21, 2023
Slide 1: Annual General and Special Meeting
CALDWELL ANNUAL GENERAL AND SPECIAL MEETING Starting soon! February 21, 2023 Elias Vamvakas Chair of the Board
Slide 2: Forward Looking Statements
FORWARD We endeavour to be open and informative in our presentations. LOOKING However, we are not always correct in our expectations, and many STATEMENTS circumstances can cause our forecasts and opinions to change; possibly materially so. Any statements that we make today that may be considered to
Slide 3: Forward Looking Statements (Cont.)
FORWARD Forward-looking statements in this document are based on current expectations that are subject to the significant risks and uncertainties cited. These forward-looking statements generally can be identified by use of statements that include phrases such as “believe,” “expect,” “anticipate,” “
Slide 4: Disclaimer
Disclaimer This presentation is not, and under no circumstances is to be construed as, a prospectus, offering memorandum, or advertisement or a public offering of securities. Offers to sell, or the solicitations of offers to buy, any security can only be made through official offering documents that
Slide 5: Agenda
Introduction Approval of minutes of last year’s meeting Approval of audited financial statements Agenda Election of Board Directors Appointment of auditors Approval of shareholder rights plan Termination of meeting Presentation by management John Wallace – Chief Executive Officer
Slide 6: Election of Directors
Election of Directors Rosemary Zigrossi Director and President, Director Nominee Caldwell and Chief Financial Officer • Appointment of Directors 6
Slide 7: Appointment of Auditors
Appointment of Auditors • It is proposed that KPMG be appointed as auditors of the Corporation 7
Slide 8: Shareholder Rights Plan
Shareholder • To consider and, if deemed advisable, reconfirm the shareholder Rights Plan rights plan of the Corporation and the Shareholder Rights Plan Agreement, as amended, made between the Corporation and Computershare Trust Company of Canada. 8
Slide 9: Management Presentation
Management Presentation John Wallace Chief Executive Officer
Slide 10: A Special Thank You
= Caldwell ASPECIAL THANK YOU KATHRYN A. WELSH Director and Chair of the Audit Committee
Slide 11: Presentation Overview
A year of change: • Coming off tremendous fiscal 2022 Presentation • Slowing began at IQTalent in Q4 fiscal 2022 Overview • Significant downturn in both business segments in Q1 fiscal 2023 • Actions taken at IQTalent to adjust to reduced client hiring demand in Q1 and into Q2 fiscal 2023 • Uncertain
Slide 12: Caldwell Executive Search
Caldwell Executive Search Chris Beck President, Caldwell and Chief Financial Officer
Slide 13: Historical Revenue Trend
Annual Professional Fees Trend (CAD $ in millions) HISTORICAL REVENUE $180.0 TREND $160.0 $155.6 Fiscal Years Ending August 31st Caldwell’s executive $140.0 search operations have $119.4 $51.6 $120.0 a historical CAGR of 12.3%. Accelerated $100.0 $23.3 growth experience with the addition of post- $8
Slide 14: Caldwell: Executive Search
• Exiting the pandemic, we experienced a “post-pandemic surge” of CALDWELL: hiring activity. We anticipated this elevated demand would ease back EXECUTIVE to historical norms. SEARCH • Caldwell experienced a significant reduction in our client’s hiring demands during Q1 fiscal 2023--a pullback to be
Slide 15: Caldwell Practice Diversification
Caldwell Practice Diversification Partner Conference | January 2023 ANSEC Life Sciences 2.4% 6.4% Professional Services 7.6% Financial Services Alternative Real Estate Investments 45.0% 0.8% (Hedge Funds/PE) TMT/IT Insurance 14.3% 8.4% 33.9% Asset Management 11.9% Global Diversified Banking & Consum
Slide 16: Fiscal 2022
FISCAL 2022 $000s CAD Fiscal 2022 (12 months 8/31/22) Caldwell IQTalent Consolidated Professional fees 103,964 51,596 155,560 8% 122% 30% Operating profit 11,356 (766) 10,590 Depreciaton and Amortizaton 417 55 472 Amortization of purchase price - 2,643 2,643 Adjusted EBITDA 11,773 1,932 13,705 Adjus
Slide 17: Q1 Fiscal 2023 (3 Months Ending 11/30/2022)
A reversal for both top and bottom line Q1 FISCAL 2023 (3 MONTHS ENDING $000s CAD 11/30/2022) Q1 f'23 (3 months 11/30/22) Caldwell IQTalent Consolidated Professional fees 16,975 6,714 23,689 -36% -43% -38% Operating profit (loss) (186) (5,344) (5,530) Depreciaton and Amortizaton 100 24 124 San Franc
Slide 18: Caldwell Executive Search Metrics
CALDWELL Average Fee per Assignment (CAD $000s) Average # of Partners EXECUTIVE $200.0 50.0 $180.0 Q1 F'23, 47.8 45.0 SEARCH METRICS $160.0 40.0 $140.0 Q1 F'23, 35.0 $120.0 Growth in partner $100.0 $150.2 30.0 count offset by $80.0 25.0 reduced volumes Q1 F'23 F'10 F'11 F'12 F'13 F'14 F'15 F'16 F'17
Slide 19: Celebrating Successes: The Counsel Network
CELEBRATING • $3 to $4 million Canadian boutique focused on the legal industry: SUCCESSES Law firms (partners, associates, infrastructure/administrative roles) Corporate in-house counsel THE COUNCIL NETWORK • 2 partners—Dal Bhathal (Toronto) and Sameera Sereda (Calgary) • 9 total employees • htt
Slide 20: Celebrating Successes: New Partners and Principals
CELEBRATING SUCCESSES NEW PARTNERS AND PRINCIPALS! # of Partners 50.0 45.0 40.0 35.0 30.0 25.0 Q1 F'23 F'10 F'11 F'12 F'13 F'14 F'15 F'16 F'17 F'18 F'19 F'20 F'21 F'22 Total partners and principals currently = 50
Slide 21: IQTalent
IQTalent David Windley President, IQTalent
Slide 22: IQTalent: What Happened?
— Record FY’22: $40 million USD revenue IQTALENT — Peak in May 2022 at a run-rate of $47 million USD WHAT HAPPENED? — In May, 75% of clients in the tech sector — Tech recruiting pullback started in June — Worked through our cushion of contractors over the next few months—reduced by 90%+ — By the fal
Slide 23: IQTalent Growth Path
IQTALENT GROWTH PATH LONG-TERM GROWTH ACROSS INTERMITTENT CYCLICAL DOWNTURNS PATTERN FOLLOWED US TECH JOB POSTINGS BY MONTH 23
Slide 24: IQTalent: Where Are We Now?
IQTALENT — Revenue has stabilized over the last 8 weeks — Enacted cost cutting measures to break-even and bring cost of WHERE ARE WE service margins in line NOW? — Tech sector clients only 25% — Diversifying client base into healthcare, manufacturing, industrial — Spinning-out IQRecruit (candidate r
Slide 25: IQTalent: Where Do We Go From Here?
— Manage through the current macroeconomic environment IQTALENT — Building the foundation for the next stage of growth WHERE DO WE GO — Build more flexibility into our model by using more contractors FROM HERE? — Building stronger business-development approach to revenue growth — Bullish as we move
Slide 26: Recap
Recap John Wallace Chief Executive Officer
Slide 27: Value to Client
Value to Client Partner Conference | January 2023 Together, Caldwell and IQTalent leverage AI and innovative technology to offer a full spectrum of services delivered by teams with deep knowledge in their respective areas. IQTalent Caldwell All Hiring Levels All Hiring Levels Mid-Level Executive & B
Slide 28: Positioned for the Next Cycle
POSITIONED FOR • While in a challenging part of the economic cycle for talent THE NEXT CYCLE acquisition, we are positioning for strength on our exit. • We are committed to building balanced and diversified sectors as we return to revenue growth at IQTalent. • Staffing will be efficient and fully ut
Slide 29: The Opportunity
= caltwell = Caldwell Qiua@tALeNT’ THE OPPORTUNITY TRANSFORMING THE WORLD OF TALENT,
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