Crawford & Company · NYSE:CRD.A
Crawford & — New York Society of Security Analysts (March 2015)
34 slides from Crawford &'s conference presentation, Mar 16, 2015
Slide 1: Crawford & Company
Exhibit 99.1 Crawford & Company New York Society of Security Analysts March 16, 2015
Slide 2: Forward-Looking Statements, Additional Information, and Subsequent Events
FORWARD-LOOKING STATEMENTS, ADDITIONAL INFORMATION, AND SUBSEQUENT EVENTS • 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
Slide 3: Forward-Looking Statements, Additional Information, and Subsequent Events (continued)
FORWARD-LOOKING STATEMENTS, ADDITIONAL INFORMATION, AND SUBSEQUENT EVENTS (continued) • Earnings Per Share —The Company's two classes of stock are substantially identical, except with respect to voting rights and the Company's ability to pay greater cash dividends on the non-voting Class A Common St
Slide 4: Crawford & Company at a Glance
Crawford & Company at a Glance at market close March 10, 2015 Exchange/Tickers: NYSE: CRDA and CRDB Trailing 52 week High/Low: CRDA: $7.20-$10.03 CRDB: $8.04-12.12 Market Capitalization: $467.31 million Quarterly Dividend: CRDA: $0.07/share CRDB: $0.05/share Analyst Coverage: Greg Peters, Raymond Ja
Slide 5: A Business Services Leader since 1941
A Business Services Leader since 1941 The world’s largest independent provider of global claims management solutions Multiple globally recognized brand names: Crawford, Broadspire, GCG Clients include multinational insurance carriers, brokers and local insurance firms as well as over 200 of the Fort
Slide 6: Integrated Approach to Customer Service
Integrated Approach to Customer Service 6
Slide 7: Driving Future Performance
Driving Future Performance Revenues • Revenue growth declined in 2013-14 asUnaudited ($ in millions) special project revenues have run offFor $1,200 the years ended December 31, Revenues • Diversification of revenue streams $1,150 provides a foundation for growth $1,100 • Growth in Contractor Connec
Slide 8: Strategic Plan
2015-2017 Strategic Plan Crawford is focused on deliveringshareholdervalue, providing a meaningful dividend to its shareholders, and further investing in developing high growth businesses. Crawford is acting on opportunities to grow revenue, manage costs effectively and leverage resources around the
Slide 9: 2015-17 Strategic Plan
2015-17 Strategic Plan Continue to grow profitable businesses
Slide 10: Acquisition of GAB Robins
Acquisition of GAB Robins - Acquisition makes Crawford the UK leader in claims management - Initial purchase price of $71.8 million - Revenues before reimbursements for GAB Robins of approximately $64 million in 2014 - Significant synergies have been targeted and a restructuring charge of $7 million
Slide 11: Crawford Contractor Connection
Crawford Contractor Connection SM Contractor Connection is a technology-enabled BPO platform and best-in-class industry leader of contractor managed repair networks for residential and commercial losses. Record 2014 revenues in the U.S. of over $50 million North American network of 4,800 general and
Slide 12: Global Technical Services
Global Technical Services A global resource that serves reinsurers, international corporate market, major loss / catastrophe divisions of composite insurers such as the London market, Lloyd’s syndicates as well as captives, risk managers and their brokers. The definitive solution for large, complex
Slide 13: Crawford Covers the Loss Pyramid
Crawford Covers the Loss Pyramid Technical services with highly experienced large and complex loss 2% 2%of ofClaims Claims adjusters GTS 80% 80%ofofIndemnity Indemnity $500K Enhanced field $250K operations Higher Value More Complex 18% of Claims 10% of Indemnity New $50K $50K technology- enabled ser
Slide 14: 2015-17 Strategic Plan
2015-17 Strategic Plan Continue to grow profitable businesses Improve the operational effectiveness of our claims models
Slide 15: Introducing Crawford iQ
Introducing Crawford iQ™ Crawford iQ is how we categorize and market Crawford’s innovative suite of technological products and services Crawford iQ makes state-of-the-art technology approachable, accessible, and uncomplicated Crawford iQ consists of high-quality technology, data and processes catego
Slide 16: Intelligent Technology
– Intelligent Technology Paperless Agile & Flexible Supports Crawford’s Social Rapid application green initiatives and Collaboration development that is drives efficiencies. Knowledge sharing, flexible to tackle changing problem solving, client needs. and innovation harnessing. Process Mobility Impr
Slide 17: Award-Winning Technology & Service
Award-Winning Technology & Service Gartner BPM Excellence Award (2014) BPM Excellence CIO100 -Creating business value through the innovative use of IT (2014) Global Award for Excellence in Case Management (2014) InformationWeekElite 100 –Top business technology innovators (2014) ForresterGroundswell
Slide 18: 2015-17 Strategic Plan
2015-17 Strategic Plan Continue to grow profitable businesses Improve the operational effectiveness of our claims models Create a Global Business Services Center
Slide 19: Global Business Services Center
Global Business Services Center Located in Manila, Philippines • Expected to employ 1,000+ people when fully operational in 2018. Crawford-owned and staffed by Crawford employees. • Should allow the Company to consolidate operations and gain efficiency, consistency, improve service levels and lower
Slide 20: Benefits of Global Business Services Center
Benefits of Global Business Services Center Optimize Create scale SIMPLIFICATION resource cost Absorb transaction model volume growth Simplify how we do things today, Drive economies Leverage key skills both across and within divisions of scale & capabilities Reduce rework Remove Business duplicatio
Slide 21: Global Business Services Center Financial Impact
Global Business Services Center Financial Impact • Operations in the Center are expected to deliver cumulative expense savings of approximately $60 million through 2019 and annual cost savings of approximately $20 million per year thereafter • The Company expects to record special charges totaling a
Slide 22: 2015-17 Strategic Plan
2015-17 Strategic Plan Continue to grow profitable businesses Improve the operational effectiveness of our claims models Create a Global Business Services Center Be a great place to work Build long term shareholder value
Slide 23: Management Alignment with Shareholders
Management Alignment with Shareholders Balanced short and long term compensation system focused on strategic priorities and aligned with shareholders Short-Term Incentive Compensation Plan Stock Ownership Guidelines: Matrix: Multiple of Metric: Weight: Officer: Base Salary: Revenues 30% President/CE
Slide 24: Capital Structure and Governance
Capital Structure and Governance Class A and B Shares: As of December 31, 2014, there were approximately 30.0 million shares of Class A Common Stock and 24.7 million shares of Class B Common Stock outstanding. The two classes of stock are substantially identical, except with respect to voting rights
Slide 25: 2015 Guidance
2015 Guidance The Company expects to incur pretax special charges in 2015, currently estimated at approximately$7.0 millionfor the integrationof GABRobinsand$9.0 millionrelatedto the establishment of the Global Business Services Center in Manila, Philippines. Crawford & CompanyisreiteratingitsFebrua
Slide 26: Crawford is Focused On Shareholder Returns
Crawford is Focused On Shareholder Returns Global Footprint World’s Largest Independent Provider of Innovative Technology Claims Management Solutions Platforms Global BPO Platform Global Catastrophe Response Crawford iQ Command Center Specialized Resources Global Technical Services (GTS) Gaining Mar
Slide 27: Appendix
Appendix
Slide 28: Americas
Americas 2014 vs.2013 At a glance: Revenues by Geographic Region 2014 Revenues: $359 million ($ in millions) 2014 Operating earnings: $23.7 million $250 Market presence $200 $150 No. 1 or 2 market share in North American vertical: U.S., Canada and Latin American markets $100 Fully integrated service
Slide 29: EMEA/AP
EMEA/AP 2014 vs.2013 At a glance: 2014 Revenues: $344 million Revenues by Geographic Region ($ in millions) 2014 Operating earnings: $19.7 million $140 $120 $100 Global footprint $80 $60 Global resources enable the ability to service the largest $40 multinational corporations, global insurers and br
Slide 30: Broadspire
Broadspire 2014 vs.2013 At a glance: 2014 Revenues: $269 million Revenues by Service Line ($ in millions) 2014 Operating earnings: $15.5 million $160 Delivering profitable growth $140 $120 Leading third party administrator (TPA) for workers’ $100 $80 compensation, liability, medical management, and
Slide 31: Legal Settlement Administration
Legal Settlement Administration At a glance: Revenues 2014 Revenues: $170 million ($ in millions) 2013 Operating earnings: $22.8 million $250 $200 Garden City Group (“GCG”) is a recognized leader in legal $150 settlement administration services providing full service class $100 action, bankruptcy, r
Slide 32: Appendix: Non-GAAP Financial Information
Appendix: Non-GAAP Financial Information Measurements of financial performance not calculated in accordance with GAAP should be considered as supplements to, and not substitutes for, performance measurements calculated or derived in accordance with GAAP. Any such measures are not necessarily compara
Slide 33: Reconciliation of Non-GAAP Items
Reconciliation of Non-GAAP Items Unaudited ($ in millions) 2010 2011 2012 2013 2014 2015G* Revenues Before Reimbursements Total Revenues $ 1,111 $ 1,211 $ 1,266 $ 1,253 $ 1,217 $ 1,255 Reimbursements (81) (86) (89) (90) (74) (80) Revenues Before Reimbursements $ 1,030 $ 1,125 $ 1,177 $ 1,163 $ 1,143
Slide 34: Crawford
Cm Crawford BROADSPIRE” | CONTRACTOR CONNECTION™ | EDUCATIONAL SERVICES | GCG° GLOBAL TECHNICAL SERVICES™ | PROPERTY & CASUALTY | RISK SCIENCES GROUP® SPECIALIST LIABILITY SERVICES” | STRATEGIC WARRANTY SERVICES™
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