Caldwell Partners International Inc. · TSX:CWL
Caldwell Partners International — The Caldwell Partners International — Investor Presentation (January 2023)
22 slides from Caldwell Partners International's investor presentation, Jan 12, 2023
Slide 1: Investor Overview
Investor Overview Updated with Q1 results ending November 30, 2023 Current as of January 12, 2023
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: Caldwell Transitions
Leveraging executive search as relationship engine CALDWELL • Trusted client relationships are with CEO/CHRO/Head of TRANSITIONS Talent Acquisition • Opportunity to expand service lines into higher growth/margin adjacencies organically and with M&A Caldwell Tomorrow • Enabling organizations to thriv
Slide 6: Caldwell Today: Seamless talent acquisition
CALDWELL TODAY Caldwell is a technology-powered talent acquisition firm specializing in recruitment at all levels. We leverage the latest innovations in AI to offer an integrated spectrum of services delivered by teams with deep knowledge in their respective areas, allowing us to have a more signifi
Slide 7: Caldwell Snapshot
50+ YEARS ~600/YR ~ $175K CAD CALDWELL of transforming talent with a C-suite and executive average executive search fee SNAPSHOT heritage in executive search level searches FISCAL 2022 PUBLICLY-TRADED ~$150M CAD TSX: CWL; OTCQX: CWLPF Fiscal 2022 revenue 20 LOCATIONS Globally Please refer to the For
Slide 8: Investing for the Future
INVESTING FOR THE FUTURE GEOGRAPHIES SOLUTIONS Multiple We foresee continued opportunities to expansion in the United There are complementary services that would invest and grow States, and further TECHNOLOGIES expand our spectrum of solutions: expansion into Europe − Diversity, Equity and Inclusion
Slide 9: 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 10: Economic Environment
ECONOMIC The overall recruitment industry has experienced a recent reduction in hiring demand. ENVIRONMENT Caldwell has seen reduced demand, with IQTalent even more influenced based on our weighted concentration in the technology sector. In response to lower demand, we reduced costs to existing hiri
Slide 11: 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 12: 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 F'10 F'11 F'12 F'13 F'14 F'15 F'16 F'17 F'18 F'
Slide 13: IQTalent: On-Demand Talent Acquisition
IQTALENT: — IQTalent was particularly impacted by our weighted concentration in the ON-DEMAND technology sector. TALENT — IQTalent’s cost base has very little variable compensation to offset revenue ACQUISITION declines. — In response to materially reduced demand, we took decisive action, reducing c
Slide 14: IQTalent Growth Path
IQTALENT GROWTH — 25%-35% annual organic growth seen under stable economic conditions; even PATH greater coming out of the pandemic. — Growth is cyclical to talent acquisition cycles and is negatively impacted by economic conditions such as those currently being experienced. Heavy weighting in techn
Slide 15: IQTalent Metrics
IQTP Revenue (USD $000s) IQTP Average Daily Billing Rate (USD $000s) IQTALENT 4,500 4,000 200 180 METRICS 3,500 160 140 3,000 120 2,500 100 2,000 80 KEY METRICS 1,500 1,000 60 40 500 20 - - Sep Nov Jan Mar May Jul Sep Nov Jan Mar May Jul Sep Nov Sep Nov Jan Mar May Jul Sep Nov Jan Mar May Jul Sep No
Slide 16: Positioning for Strength
POSITIONING FOR While in a challenging part of the economic cycle, we are positioning for strength on our exit. STRENGTH Staffing will be lean and efficient. We have the industry’s highest caliber search partners and execution teams. Our lack of client and candidate restrictions faced by the largest
Slide 17: Vision
VISION — IQTalent remains a compelling differentiator for Caldwell relative to our competitors. — Multiple opportunities to expand talent solutions across all life-cycle stages — Leadership team and Board – together owning more than 40% of Caldwell’s shares – aligned with shareholders and committed
Slide 18: Appendix 1A: Leadership
APPENDIX 1A: LEADERSHIP John Wallace David Windley John is chief executive officer of Caldwell. Since becoming Chris Beck David is president of IQTalent Partners and serves on CEO in 2008, John has effected Chris is chief financial officer of Caldwell’s board of directors. a strategic growth plan fo
Slide 19: Appendix 1B: Board of Directors
Elias Vamvakas, Director and Chair of the Board (2019) Mr. Vamvakas is the Chairman, CEO and founder of Greybrook Capital, and Chairman of Greenbrook-TMS NeuroHealth centers, (TSX:GTMS). He is also Founder of TLC Vision. APPENDIX 1B: Chris Beck, Director; President, Caldwell and Chief Financial Offi
Slide 20: Appendix 2: Reporting Shareholders
APPENDIX 2: Name Title/Relation Shares Owned % Darcy Morris Director (CEO, Ewing Morris & Co.) 3,820,250 14.8% REPORTING David Windley President, IQTalent; Director 1,840,904 7.1% Tom Milic VP, Accounts Management and Co-founder, IQTalent 1,638,886 6.3% SHAREHOLDERS Chris Murdock Chief Sourcing Offi
Slide 21: Appendix 3A: Financial Highlights
• Adjusted EBITDA is a non-GAAP measure without any standardized meaning prescribed by IFRS and is therefore unlikely to be comparable to similar measures presented by other issuers APPENDIX 3A: • Government stimulus received in both US and Canada—now complete • Acquisition costs represent IQTalent
Slide 22: Appendix 4: Impact of Share Price on Earnings
• Our compensation plans, and therefore earnings, are impacted by the price per share of our APPENDIX 4: common stock. • A meaningful component of executive and director compensation are Performance Share Units IMPACT OF (PSUs) and Deferred Share Units (DSUs). PSUs and DSUs are annual grants as a po
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