Caldwell Partners International Inc. · TSX:CWL
Caldwell Partners International — Investor Presentation (April 2023)
24 slides from Caldwell Partners International's investor presentation, Apr 13, 2023
Slide 1: Investor Overview
Investor Overview Updated with Q2 results ending February 28, 2023 Current as of April 13, 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: 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 11: Caldwell Practice Diversification
Caldwell Practice Diversification Partner Conference | January 2023 ANSEC Life Sciences 2.4% 6.4% Professional Services 7.6% Financial Services Alternative Real Estate Investments 45.0% 0.8% (Hedge TMT/IT Caldwell Funds/PE) 14.3% Insurance 8.4% Fiscal 2022 33.9% Asset $104.0 million Management 11.9%
Slide 12: Caldwell Executive Search Metrics
# of Assignments per Partner per Year Average Fee per Assignment ($000s) 16.0 CALDWELL $180.0 15.0 14.0 EXECUTIVE $160.0 13.0 $140.0 Q2 F23: 12.0 SEARCH METRICS $120.0 $158 11.0 10.0 $100.0 Q2 F23: 9.0 8.8 Growth in partner $80.0 F'10 F'11 F'12 F'13 F'14 F'15 F'16 F'17 F'18 F'19 F'20 F'21 F'22 F'23
Slide 13: Recent Acquisition: The Counsel Network
RECENT • $3 million revenue Canadian boutique focused on the legal industry: ACQUISITION Law firms (partners, associates, infrastructure/administrative roles) Corporate in-house counsel THE COUNCIL NETWORK • 2 partners—Dal Bhathal (Toronto) and Sameera Sereda (Calgary) • 9 total employees • http
Slide 14: Celebrating Successes Fiscal 2023
CELEBRATING SUCCESSES FISCAL 2023 NEW PARTNERS AND PRINCIPALS! Avg # of Partners 55.0 50.0 Q2 F'23, 49.3 45.0 40.0 35.0 30.0 25.0 F'10 F'11 F'12 F'13 F'14 F'15 F'16 F'17 F'18 F'19 F'20 F'21 F'22 Q2 F'23 Total partners and principals currently = 51
Slide 15: 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 16: IQTalent Growth Path
IQTALENT GROWTH — 25%-35% annual organic growth seen under stable economic conditions; far 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 LONG-TERM weighting
Slide 17: Strategy Shift
STRATEGY SHIFT Growth staffed by contractors vs. employees — Prior strategy was to minimize contractors as they were more costly than employees. — We are now close to 100% employees as contractors were first let go and then employees down to full utilization rates. — Grow back strategy is to leverag
Slide 18: IQRecruit Spin Off
IQRecruit Spin Off — IQTalent had internally developed its operating and client delivery software platform. — Vision was to commercialize and sell to third parties. — Heavy additional development needs led to the strategic decision to focus on Caldwell and IQTalent being managed service providers an
Slide 19: Recap: Positioned for Strength
RECAP: • While in a challenging part of the economic cycle for talent acquisition, we are positioned for strength on our exit. POSITIONED FOR STRENGTH • We are committed to building balanced and diversified sectors as we return to revenue growth at IQTalent. • Staffing will be efficient and fully ut
Slide 20: Transforming the World of Talent
=icaitwell = Caldwell Qiua@tALeNT’ TRANSFORMING THE WORLD OF TALENT,
Slide 21: Appendix 1: Leadership
APPENDIX 1: 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 for
Slide 22: Appendix 2: 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 2: Chris Beck, Director; President, Caldwell and Chief Financial Offic
Slide 23: Appendix 3: Reporting Shareholders
APPENDIX 3: Name Title/Relation Shares Owned % REPORTING Darcy Morris David Windley Director (CEO, Ewing Morris & Co.) President, IQTalent; Director 3,820,250 1,840,904 14.8% 7.1% SHAREHOLDERS Chris Murdock Chief Sourcing Officer and Co-founder, IQTalent 1,555,847 6.0% (PER SEDI) John Wallace CEO, C
Slide 24: Appendix 4: 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 4: • Government stimulus received in both US and Canada—now complete • Acquisition costs represent IQTalent d
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