Crawford & Company · NYSE:CRD.A
Crawford & — SunTrust Robinson Humphrey Investor Conference 2010
33 slides from Crawford &'s conference presentation, May 25, 2010
Slide 1: SunTrust Robinson Humphrey Investor Conference
SunTrust Robinson Humphrey Investor Conference Tuesday, May 25, 2010
Slide 2: Forward-looking Statements and Segment Operating Earnings
2 Forward-looking Statements and Segment Operating Earnings 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
Slide 3: Market-Leading Global Businesses
3 Market-Leading Global Businesses The world's largest fully-integrated independent provider of global claims management solutions. International Operations U.S. Property & Casualty Broadspire Legal Settlement Administration Serves the global insurance industry and multi-national corporations Serves
Slide 4: Our Global Strength
4 Our Global Strength $1 Billion in Revenue 700 Locations 63 Countries 8,900 Employees 8,900 Employees
Slide 5: Diversified Business and Clients
Legal Settlement Administration Broadspire International U.S. Property & Casualty Revenue 0.085 0.298 0.405 0.213 Diversified Business and Clients Fiscal 2009 Revenues of $970 Million Property and Casualty Services Global Technical Services Global Marine and Transportation Global Markets 40.4% 29.8%
Slide 6: 2010 Focus
2010 Focus Attract new business and retain customers Key account management/cross-selling through the "System" Grow Business Process Outsourcing Service and quality initiatives Global Technical Services (GTS) Support existing business operations with technology improvements Improve processes to deli
Slide 7: The Crawford System of Claims Solutions
The Crawford System of Claims SolutionsSM The Crawford System is the most comprehensive global, integrated solution for all corporate, insurer, and re-insurer claims administration. 7
Slide 8: Financial Review
Crawford Financial Review
Slide 9: 2009 Financial Performance
Crawford 2009 Financial Performance 2005 2006 2007 2008 2009 Consolidated Revenues before Reimbursements 772 819.5 975.1 1049 970 $ in millions 2005 2006 2007 2008 2009 Net Income Attributable to CRD before Impairment Charge 12.881 15.011 16.116 32.259 25.2 $ in millions 772 820 975 1,049 13 15 16 3
Slide 10: Factors Affecting the Insurance Claims Administration Industry
Factors Affecting the Insurance Claims Administration Industry 10 Ongoing pressure on Workers Compensation Claims Frequency 1Q 2Q 3Q 4Q 2008 4.97 5.3 6.03 6.97 2009 8.17 9.27 9.63 10.03 2010 9.7 U.S. Unemployment Levels in 2009 and 2010 Unemployment remained high at 9.7% Claims volumes continued to
Slide 11: First Quarter 2010 Financials
11 First Quarter 2010 Financials
Slide 12: First Quarter 2009 to 2010 Bridge
First Quarter 2009 to 2010 Bridge 12
Slide 13: First Quarter 2010 Financials
13 First Quarter 2010 Financials
Slide 14: First Quarter 2010 Financials
First Quarter 2010 Financials 14
Slide 15: Operating Segments
Crawford Operating Segments
Slide 16: First Quarter 2010 Financials
1Q 2010 1Q 2009 Revenue 104.451 90.872 Revenue at 2008 FX rates 1.223 1Q 2010 1Q 2009 Operating Earnings 6.552 7.465 Operating Earnings at 2008 FX rates 1 $ in millions $ in millions First Quarter 2010 Financials $104.5 $90.6 $7.4 Revenue grew 0.7% on a constant dollar basis Operating earnings decli
Slide 17: International Operations
International Operations 1Q 2010 4Q 2009 3Q 2009 2Q 2009 1Q 2009 International Claims 152.1 136.8 142 137.6 149.9 International claims referred (in 000s) 142.0 Grow revenue and market share New client acquisition Cross-selling Business Process Outsourcing Additional investment in EMEA Supporting mar
Slide 18: First Quarter 2010 Financials
1Q 2010 1Q 2009 Revenue 49.194 55.052 1Q 2010 1Q 2009 Operating Earnings 5.096 6.17 $ in millions $ in millions $55.3 $49.2 $6.2 $5.1 Catastrophe revenue in 2010 period was $1.7 million below prior year period Overall revenue declined due to lower claims volumes industrywide First Quarter 2010 Finan
Slide 19: U.S. Property & Casualty
U.S. Property & Casualty 1Q 2010 4Q 2009 3Q 2009 2Q 2009 1Q 2009 U.S. P&C Claims 114.1 103.3 113.8 118.5 115.7 CAT claims 12.5 6.5 U.S. Property and Casualty Claims (in 000s) 113.8 118.5 115.7 114.1 103.3 Grow revenue and market share Emphasis on casualty Expand Global Technical Services (GTS) Busin
Slide 20: U.S. and International Property & Casualty Growth Opportunities
U.S. and International Property & Casualty Growth Opportunities Strategic Growth Target insurers who are consolidating their vendor lists and strive to ensure Crawford is named an approved vendor Continuous quality improvement Efforts toward training and product development Target markets Small and
Slide 21: First Quarter 2010 Financials
1Q 2010 1Q 2009 Revenue 61.963 74.601 1Q 2010 1Q 2009 Operating Loss -2.333 -1.954 $ in millions $ in millions $62.0 $74.6 ($2.3) ($2.0) Revenues declined due to lower workers' compensation claim referrals and non-renewal of significant contract Ongoing cost control activities First Quarter 2010 Fin
Slide 22: Broadspire
Broadspire 1Q 2010 4Q 2009 3Q 2009 2Q 2009 1Q 2009 Broadspire Claims 46.6 53.2 56.7 57.2 55.4 Claims referred (in 000s) 56.7 57.2 55.4 46.6 53.2 Previously-announced loss of customer is expected to limit 2010 growth Claims volume, linked to U.S. employment, is expected to decline year over year Cros
Slide 23: Broadspire Positioning
Broadspire Positioning Third Largest TPA in Workers' Compensation/Liability Market Products and Services: Workers' Compensation Claims Services Auto and General Liability Claims Services Medical and Disability Management Services Long-Term Care Services Risk Management Information Systems (Risk Scie
Slide 24: First Quarter 2010 Financials
24 1Q 2010 1Q 2009 Revenue 20.658 15.558 1Q 2010 1Q 2009 Operating Earnings 3.283 1.527 $ in millions $ in millions $20.7 $15.6 $1.5 $3.3 Revenue and operating earnings increase reflects benefit of significant bankruptcy and securities class action administration cases Backlog of $50.7 million versu
Slide 25: Legal Settlement Administration
Legal Settlement Administration 1Q 2010 1Q 2009 Backlog 50.7 39 Backlog (in millions) $50.7 $39.0 Grow revenue and profitability Challenged by pricing pressures Consolidation in the market place Expand class action markets Increase bankruptcy business Currently a growth market Large market share Imp
Slide 26: Products and Services
Products and Services The Garden City Group, Inc. (GCG) provides these core services: GCG Class Action Services provides technology-intensive administrative services for plaintiff and defense counsel and corporate defendants to expedite high-volume class action settlements. GCG Bankruptcy Services o
Slide 27: Summary
Crawford Summary
Slide 28: Crawford is "Positioned for Growth"
Crawford is "Positioned for Growth" Access to growing global markets Increasing market share both domestic and internationally Crawford expects to benefit from global consolidation of TPA vendors Diverse customer base High customer retention rates Emphasis on quality and value provided sustains clie
Slide 29: 2010 Guidance
2010 Guidance Full Year 2010 Guidance Reaffirmed: Consolidated revenue before reimbursements between $970 million and $990 million Consolidated operating earnings between $54.3 million and $60.3 million Consolidated cash provided by operating activities between $30 and $35 million After reflecting s
Slide 30: 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 31: Reconciliation of Non-GAAP Items
Reconciliation of Non-GAAP Items 31
Slide 32: Reconciliation of Non-GAAP Items (cont.)
Reconciliation of Non-GAAP Items (cont.) 32
Slide 33: SunTrust Robinson Humphrey Investor Conference
SunTrust Robinson Humphrey Investor Conference Tuesday, May 25, 2010
Crawford & — SunTrust Robinson Humphrey Investor Conference 2010 on 6ix