Crawford & Company · NYSE:CRD.A
Crawford & — Non-Deal Roadshow (April 2013)
29 slides from Crawford &'s roadshow presentation, Apr 3, 2013
Slide 1: Crawford & Company: New York Trip with William Blair
Crawford & Company New York Trip with William Blair April 3, 2013 Exhibit 99.1
Slide 2: Forward-Looking Statements and Additional Information
FORWARD-LOOKING STATEMENTS AND ADDITIONAL INFORMATION Forward-looking Statements –This presentation contains forward-looking statements, including statements about the future financial condition, results of operations and earnings outlook of Crawford & Company. Statements, both qualitative and quant
Slide 3: Crawford & Company at a Glance
Crawford & Company at a Glance Exchange/Tickers: NYSE: CRDA and CRDB Trailing 52 week High/Low: CRDA: $3.13-$5.98 CRDB: $3.25-$8.60 Market Capitalization (3/27/13): $333.3 million Annual Dividend/Yield (3/27/13): CRDA: $0.16 or 3.2% CRDB: $0.12 or 1.6% Analyst Coverage: Adam Klauber, William Blair (
Slide 4: A Business Services Leader since 1941
A Business Services Leader since 1941 The world’s largest independent provider of global claims management solutions Multiple globally recognized brand names: Crawford, Broadspire, GCG Clients include multinational insurance carriers, brokers and local insurance firms as well as 200 of the Fortune 5
Slide 5: $1.2 Billion Revenue Company Locations
$1.2 Billion Revenue Company 700 Locations 70+ Countries 8,500 Employees OUR GLOBAL STRENGTH
Slide 6: Diversified Business and Clients
Diversified Business and Clients 2012 Revenues of approximately $1.2 Billion • Property and Casualty Services • Global Technical Services • Third Party Administration • Global Markets EMEA/AP Americas • Property and Casualty Services • Catastrophe Management Services • Contractor Connection • Centra
Slide 7: Catalysts/Drivers
Catalysts/Drivers Cyclical Positive Industry Claim Trends: Increased underwriting pressure creates a positive claim trend. Weather/Catastrophe Trends: Catastrophic events worldwide are increasing in severity and frequency. Crawford is uniquely positioned to serve these markets. Healthcare Reform: In
Slide 8: Crawford Provides More Than Claims Services
Crawford Provides More Than Claims Services P&C outsourced claims services provided about $575 million, or 49%, of total Crawford revenue in 2012 • Claims services is a mature business in most geographies • Revenues are driven by claims volume, which is affected by regional economies, economic growt
Slide 9: Crawford's Expertise
Crawford’s Expertise Claims Services: Thai Flooding Catastrophe Response Business Process Outsourcing: Deepwater Horizon Consulting: Medical Management
Slide 10: Catastrophe Response: Thai Flooding
Catastrophe Response: Thai Flooding Top ten historic insurance loss Crawford handling losses in excess of $4 billion Flooding affected an area the size of South Carolina Leveraged global capabilities through deployment of 160 staff including 50 support staff and 35 senior adjusters from other locati
Slide 11: Natural catastrophes worldwide 1980 –
Natural catastrophes worldwide 1980 – Natural catastrophes per year more than doubled over period Crawford is uniquely positioned to respond on a global basis Number of Events Meteorological events (Storm) Hydrological events (Flood, mass movement) Climatological events (Extreme temperature, drought
Slide 12: High-Volume Claims Services: Deepwater Horizon
High-Volume Claims Services: Deepwater Horizon The Garden City Group ( GCG) is the recognized leader in legal administration services for class action settlements and other claims administration, bankruptcy cases and legal noticing programs. Largest program is the combined GCCF/Deepwater Horizon set
Slide 13: Consulting: Medical Management
Consulting: Medical Management • Case managers proactively manage medical treatment in the rehabilitation process, enabling our clients’ employees to recover as quickly as possible in the most cost-effective manner. • Medical costs are currently 60% of workers compensation cost and are estimated to
Slide 14: Financial Review and Operational Focus
Financial Review and Operational Focus
Slide 15: 2012 Business Summary
1,177 1,125 110.2 78.6 2012 Business Summary Record revenues of $1.177 billion Record consolidated operating earnings of $110.2 million Record operating cash flow of $92.9 million Including special payment, dividends of $0.20 per CRDA and $0.16 per CRDB
Slide 16: Crawford Segment Performance 2012
Crawford Segment Performance 2012 Americas Revenues ($in millions) 2012 Revenues $400 $360 $300 - $250 $200 ~ $150 ~ $100 ~ $60 $0 2011 ©2012 Broadspire Revenues (Sin millions) ; $300, 2012 Operating Earnings $250 | $200 : $150 ~ z = $100 — — ‘=Americas $50 ie | sEMENAP = —, sBroadspie Total Workers
Slide 17: Crawford Segment Performance 2012
Crawford Segment Performance 2012 Crawford & Company
Slide 18: 2013 Operational Focus
2013 Operational Focus Sustain Operating Performance through Improved Profitability Americas improvement in U.S. Property & Casualty and Canada Continued progress in Broadspire Strengthen the Balance Sheet Manage debt levels and pension obligations Drive operating cash flow to support business growt
Slide 19: Most Recent 2013 Guidance
Most Recent 2013 Guidance On February 25, 2013, Crawford reaffirmed initial full year 2013 guidance as follows: Consolidated revenues before reimbursements between $1.05 and $1.08 billion Consolidated operating earnings between $85.0 and $93.0 million Consolidated cash provided by operating activiti
Slide 20: Enhanced Return to Shareholders
Enhanced Return to Shareholders Dividends and Buyback: During the first quarter, paid a regular quarterly dividend of $0.04 on CRDA and $0.03 on CRDB Crawford also paid a special dividend of $0.06 per share on both classes of stock during the 2012 fourth quarter During 2012, Crawford paid dividends
Slide 21: Crawford Capital Structure
Crawford Capital Structure Improving Balance Sheet Supports Return to Shareholders Debt reduced by $62 million, or 25% since 2010 Pension risk management implemented in 2009 Material improvement in cash flow from both operations and working capital management Net debt of $95.2 million at December 31
Slide 22: Management Alignment with Shareholders
Management Alignment with Shareholders Short-Term Incentive Compensation Plan Matrix: Business Metric: Corporate: Units: Revenues 30% 30% Operating Earnings 25% 25% Operating Margin 25% 25% DSO 20% 20% Stock Ownership Guidelines: Multiple of Officer: Base Salary: President/CEO 3x CFO/EVPs 2x Balance
Slide 23: Capital Structure and Governance
Capital Structure and Governance Class A and B Shares: As of March 5, 2013, there were approximately 29.6 million shares of Class A Common Stock and 24.7 million shares of Class B Common Stock outstanding. The two classes are substantially identical, except with respect to the voting rights of the C
Slide 24: Crawford Is Positioned for Strong Returns
CRAWFORD IS POSITIONED FOR STRONG RETURNS
Slide 25: Appendix
Crawford & Company Appendix
Slide 26: Non-GAAP Financial Information
Non-GAAP Financial Information Measurements of financial performance not calculated in accordance with GAAP should be considered as supplements to, and not substitutes for, performance measurements calculated or derived in accordance with GAAP. Any such measures are not necessarily comparable to oth
Slide 27: Non-GAAP Financial Information
Non-GAAP Financial Information Unaudited ($ in thousands) Revenues Before Reimbursements Total Revenues 1,135,916 $ 1,048,202 $ 1,110,801 $ 1,211,362 $ 1,266,138 $ Reimbursements (87,334) (78,334) (80,384) (86,007) (89,421) Revenues Before Reimbursements 1,048,582 $ 969,868 $ 1,030,417 $ 1,125,355 $
Slide 28: Non-GAAP Financial Information, continued
Non-GAAP Financial Information, continued Unaudited ($ in thousands) December 31, Net Debt Short-term borrowings 13,275 $ Current installments of long-term debt and capital leases $ Long-term debt and capital leases, less current installments 152,293 $ Total debt 166,406 $ Less: Cash and cash equiva
Slide 29: Crawford & Company
Crawford & Company