Wendel Se · EURONEXT:MF
Wendel — Merger or Acquisition (October 2019)
17 slides from Wendel's merger presentation, Oct 15, 2019
Slide 1: Acquisition of Crisis Prevention Institute ("CPI")
Acquisition of Crisis Prevention Institute ("CPI") October 15, 2019 Titre du document | Date 1 Crisis Prevention Institute | Oct 2019
Slide 2: Transaction overview
Transaction overview On October 14, Wendel signed binding transaction documentation to acquire Crisis Prevention Institute ("CPI" or the "Company"), the leading provider of behavior management and crisis prevention training programs. CPI’s offerings help professionals respond to anxious, hostile and
Slide 3: Company snapshot (1/2)
Company snapshot (1/2) The philosophy underpinning CPI's core training, Nonviolent Crisis Intervention®, is to first, prevent violence from occurring, then de-escalate crisis situations that could lead to violence, and finally, to use safe physical interventions but only as a last resort Very strong
Slide 4: Company snapshot (2/2)
Company snapshot (2/2) 2018 FY sales by sector 2018 FY sales by geography Healthcare ~40% Australia, Ireland, New Zealand, and United Education Other 78% States 4% United 8% ~40% Others (1) Kingdom ~20% 9% Canada (1) Retail, customer service, security and law enforcement 4 Crisis Prevention Institut
Slide 5: CPI fits well with Wendel CSR commitments and policies
CPI fits well with Wendel CSR commitments and policies CPI is a mission-driven organization that promotes workplace safety for all members of its clients’ communities – including their employees and the populations they serve ▪ CPI’s services enable its instructors and learners to keep their workpla
Slide 6: A "train the trainer" business model of a recurring nature
A “train the trainer” business model of a recurring nature WHO ARE THE KEY CONSTITUENCIES ? HOW DO THEY IMPACT CPI ECONOMICS? o Global Professional Instructors (GPIs) are o CPI’s 60 GPIs are full-time employees of the 60 Global Professional Company with an average tenure of trainers employed by CPI
Slide 7: CPI addresses growing need for training as crisis incidents rise
CPI addresses growing need for training as crisis incidents rise Increasing demand for safety at Top 500 customers have an average tenure of 20 work to: years ▪ keep employees safe ▪ improve job satisfaction 95% of organizations agree that CPI improved staff de- ▪ improve standard of care / escalati
Slide 8: Investment thesis
Investment thesis 1 Attractive and growing market 2 Leading player of scale in crisis prevention 3 Cash generative financial profile with resilience to economic cycles 4 Abundant adjacent growth opportunities to drive future performance 5 Leading management team enhanced by recent key hires 8 Crisis
Slide 9: CPI addressable market is growing and contains significant whitespace
CPI addressable market is growing and contains significant whitespace $130 billion in annual losses are attributed to workplace assaults A large US adressable market through existing products and customers, with growth prospects (1) Over 17,000 U.S employees affected by workplace violence; more than
Slide 10: The largest player in the US, with unrivalled reputation and brand
The largest player in the US, with unrivalled reputation and brand CPI is meaningfully larger than the closest competitor and has the scale to serve both national and local customers on a real time basis with ongoing support, a key competitive advantage relative to its smaller direct competitors The
Slide 11: Very strong financial performance even through recession
Very strong financial performance even through recession Long-term trend of sales and EBITDA 100 90 86 81 80 71 70 59 60 53 50 47 38 40 34 30 37 39 30 42 24 24 33 20 27 23 19 10 14 15 16 8 9 11 0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 LTM August 2019 Revenue ($M) EBITDA An impressive
Slide 12: Abundant opportunities to drive incremental growth
Abundant opportunities to drive incremental growth • Ample room for continued growth within its existing core customer base of hospitals and K-12 schools Expansion of CPI’s footprint and capture of whitespace within the addressable market, leveraging on Core Market • recent investment in sales infra
Slide 13: Strong management team, supplemented with key recent hires
Strong management team, supplemented with key recent hires Tony Jace Susan Driscoll Lori Eppel Chief Executive Officer President Chief Financial Officer Industry: 25 years Industry: 25 years CPI: 2 years Industry: 20 years CPI: 10 years CPI: 6 years 13 Crisis Prevention Institute | Oct 2019
Slide 14: CPI fits Wendel's capital deployment strategy
CPI fits Wendel’s capital deployment strategy • Over 9,000 customers Well established business model benefiting from strong barriers to entry and limited substitution risk P • Top 500 customers have tenure of 20+ years on average • CPI’s scale translates into “best-in-class” content and services pro
Slide 15: CPI is a unique asset with many attractive characteristics
CPI is a unique asset with many attractive characteristics LTM August Adj. Metrics CPI Characteristics • Sales CAGR 13% since 2008 • $86M revenue Size • A scalable business model with • $39M EBITDA attractive growth potential CPI is a unique asset that has a number of attractive characteristics • Tr
Slide 16: Q&A
Q&A 16 Crisis Prevention Institute | Oct 2019
Slide 17: Valuation in NAV
Valuation in NAV Wendel Net Asset Valuation methodology (extracts) • New, unlisted investments are valued at cost for the first 12 months following their acquisition. After this period, the company is valued on listed peer-group multiples’ method • For small portfolio companies whose average revenue