Slide Presentation

EX-99.2 3 dex992.htm SLIDE PRESENTATION Slide Presentation

CDI Corp.

Committed to creating shareholder value through long-term

profitable growth

Exhibit 99.2

NYSE: CDI

This presentation contains forward-looking statements within the meaning of the Private

Securities Litigation Reform Act of 1995. All statements that address expectations or

projections about the future, including statements about our strategy for growth, expected

expenditures and future financial results are forward-looking statements. Some of the forward-

looking statements can be identified by words like "anticipates," "believes," "expects," "may,"

"will," "could," “intends," "plans," "estimates," and similar expressions. These statements are

not guarantees of future performance and involve a number of risks, uncertainties and

assumptions that are difficult to predict. Actual outcomes and results may differ materially from

what is expressed or forecasted in these forward-looking statements depending on a variety of

factors, including the following: changes in general economic conditions and levels of capital

spending by customers in the industries we serve; possible inaccurate assumptions or forecasts

regarding the bill rate, profit margin, duration of assignment and utilization rate applicable to our

billable personnel; competitive market pressures; the availability of qualified labor; changes in

customers' attitudes towards outsourcing; our level of success in attracting, training, and

retaining qualified management personnel and other staff employees; our ability to pass onto

customers

increases

our

costs

(such

those

relating

workers’

compensation

insurance

which may arise from regulatory requirements); our performance on our customer contracts; the

possibility of our incurring liability for our activities, including the activities of our temporary

employees;

and

government

policies

judicial

decisions

adverse

the

staffing

industry.

detailed

information

about

some

these

risks

and

uncertainties

may

found

our

filings

with

the

SEC,

particularly

the

“Risk

Factors”

section

our

Form

10-K’s

and

the

“Management’s

Discussion

and

Analysis

Financial

Condition

and

Results

Operations”

section

our

Form

10-K ‘s and Form 10-Q’s. Readers are cautioned not to place undue reliance on these forward-

looking statements, which speak only as of the date hereof. We assume no obligation to update

such statements, whether as a result of new information, future events or otherwise.

Caution Concerning Forward-Looking Statements

NYSE: CDI

CDI At A Glance

FOUR MAJOR BUSINESS UNITS

Management

Recruiters

International

$62.3MM*

Todays Staffing

$149.1MM*

AndersElite

$184.4MM*

CDI

Business

Solutions

$737.8MM*

2005 Consolidated Revenue: $1,133.6mm

2005 % Total Revenue

9.3%

BSG

38.1%

Anders

16.0%

Anders

16.3%

13.2%

2005 % Total Operating Profit

(pre-corporate allocation)

*2005 Full Year Revenue

BSG

65.0%

MRI

Todays

MRI

36.6%

NYSE: CDI

Todays Staffing

•

Temporary, permanent placement and managed staffing

of administrative, financial and legal professionals

•

75 company-owned and franchised offices in the U.S.

and Canada

•

Positioned as provider of high-quality candidates while

delivering competitively superior value

$149.1mm

(+22.0%)

$122.3mm

Total Revenue

100.0%

Total %

2.3%

2.8%

Permanent Placement & Royalties

97.7%

97.2%

Staffing Services

2005

(Full Year)

2004

(Full Year)

Revenue Source

NYSE: CDI

AndersElite

•

Provides building and construction professionals for private

and government-funded design and construction projects

•

Focus is in U.K. and, to a lesser degree, Australia

•

16 company-owned offices principally in the U.K.

•

Powerful candidate sourcing capability to deliver client value

in all levels of permanent, temporary and contract

recruitment of built environment specialists

$184.4mm

(+11.1%)

$166.1mm

Total Revenue

100.0%

Total %

10.1%

9.6%

Permanent Placement &

Royalties

89.9%

90.4%

Staffing Services

2005

(Full Year)

2004

(Full Year)

Revenue Source

NYSE: CDI

Management Recruiters International

•

Global franchise network and specialty staffing firm; One of the

world’s largest executive search and recruitment organizations

•

Approximately 900 franchised offices in the U.S. and 200

franchised offices in over 35 countries

•

Provides comprehensive support and training services to

franchisees, who in turn, provide permanent placement

services and temporary staffing services to their customers to

find and place “Impact Players”

48.3%

49.5%

Permanent Placement &

Royalties

$62.3mm

(+11.1%)

$56.0mm

Total Revenue

100.0%

Total %

4.8%

7.5%

Franchise Fees

46.9%

43.0%

Staffing Services

2005

(Full Year)

2004

(Full Year)

Revenue Source

NYSE: CDI

CDI Business Solutions

•

Offers engineering and IT outsourced solutions, professional

staffing and managed staffing services

•

Includes Aerospace, Government Services, IT Services, Life

Sciences and Process & Industrial verticals

•

69 offices in the U.S. as well as offices in Canada, Germany

and Mexico

•

Leverages speed, skill and scale to enable clients to achieve

higher ROI utilizing skilled CDI professionals and superior

project management capabilities

47.8%

40.0%

Project Outsourcing

$737.8mm

(+5.3%)

$700.8mm

Total Revenue

100.0%

Total %

0.6%

0.4%

Permanent Placement

51.6%

59.6%

Staffing Services

2005

(Full Year)

2004

(Full Year)

Revenue Source

NYSE: CDI

CDI Business Solutions: Key Verticals

Financial, Banking, Insurance, Travel, Automotive

Sample

Services:

Staffing,

Outsourcing

Solutions

CDI-IT Services –

36.0%*

Chemicals, Oil, Gas, Refining, Telecom, Power Generation

Sample Services:

Engineering, Procurement, Construction

Management, Feasibility Studies & Process Consulting, Turnaround

Services

CDI-Process & Industrial –

45.3%*

Commercial & Military Aerospace, Satellite/Space Systems

Sample

Services:

Mechanical

Design

Structural

Analysis,

Electronics,

Technical

Publications,

Logistics

CDI-Aerospace –

11.2%*

% 2005 Business Solutions Revenue

NYSE: CDI

CDI Business Solutions: Key Verticals (cont.)

U.S. Government Agencies & U.S. Allies

Sample Services:

Marine Design, Systems Development,

Military Aviation Support, IT Solutions

CDI-Government Services –

6.4%

Pharmaceutical, Biotechnology

Sample Services:

Feasibility Studies, Site Selection, Facility

Design, Start Up Services, Validation, Pharmaceutical &

Biotechnology Staffing

CDI-Life Sciences –

1.1%

% 2005 Business Solutions Revenue

NYSE: CDI

Permanent Placement

IT Staffing

Engineering Staffing

Professional Staffing

Temporary Staffing

IT Solutions

Engineering Solutions

Design & Drafting

Technical

Manufacturing

Regulatory Compliance

Validation

Engineering

Outsourcing

IT Sourcing

Project Management

Construction

Management

Managed Staffing

SOURCE

TALENT

ENGINEER

SOLUTIONS

MANAGE

SOLUTIONS

A Unique Single-Source Provider

NYSE: CDI

•

Phase I (2002-2003): Restructure

–

Exit non-strategic business

–

Cut costs

•

Phase II (2004): Create Industry-Focused Organization

–

CDI Business Solutions aligned in five industry verticals

–

New National Sales organization

–

Build strategies to move up customer value continuum

•

Phase III (2005 -

2006): Create Profitable Revenue Growth

–

Implement and execute strategic growth plan

3-Phase Repositioning

NYSE: CDI

3-Phase Repositioning (cont.)

SERVICE OFFERING

CDI VALUE CONTINUUM

NYSE: CDI

•

2005 Key Results

–

Positive organic year-over-year revenue growth of 8.5%

–

Revenue

momentum

into

2006

–

exit

revenue

growth

11.3%

with

strength

in virtually all CDI business sectors

–

Solid growth in net earnings despite increased compliance and regulatory

expenses and other out-of-pattern expenses

–

Significant new account wins and strong pipeline of new business

–

Within a strong business environment characterized by:

•

Solid GDP growth

•

Robust capital spending patterns in key verticals

•

Solid demand for permanent and contingent hiring

3-Phase Repositioning (cont.)

NYSE: CDI

CDI’s customers leverage our skill, speed and scale to achieve

a faster and higher return on capital investment. CDI offers

clients a single-source provider of best-of-breed engineering

and IT solutions and professional staffing; freeing our

customers to focus on their core competencies, accelerate

change and drive profitable growth.

Value Proposition

NYSE: CDI

•

Reposition CDI to be a single-source provider of engineering and

IT solutions and professional staffing

•

Capture market share in key verticals by:

–

Continuing to execute business solutions focusing on higher knowledge

content and longer cycle areas

–

Increasing recruiter productivity

–

Leveraging industry expertise in key verticals to provide tailored products

to customers

•

Expand permanent placement business, including MRI growth

into new international markets with master franchise model

•

Build skill and scale to enhance core capabilities and expand

company’s range of services

Strategic Growth Plan

NYSE: CDI

•

Leverage cash-generative business model to support organic growth

and anticipated capital spending

•

Expect to achieve pre-tax return on invested capital of 20%+ by end of

2006 and redeploy assets unable to meet target

•

Maintain financial discipline and lean headquarter operations to

generate highly-leveraged variable contribution and, over time, return

to above historic operating margins which were, at their peak,

approximately 5%

•

Derive at least 60% of revenues from higher-margin, longer cycle

business

•

Maintain or establish a top five leadership position in targeted

verticals

Strategic Growth Plan (cont.)

NYSE: CDI

•

A strong balance sheet and lean cost structure

•

Forward visibility –

strong pipeline of new wins, continued strength in

hiring demand and strength in client capital expenditure could produce

full year 2006 organic revenue growth of 10 –

12%

•

Business model produces solid cash flow to enable organic growth

and

dividend payments

–

Paid

quarterly

dividends

totaling

$0.40

per

–

2004

–

Paid

two

special

dividends

$2.00

per

–

2003

and

2004

–

Paid

quarterly

dividend

totaling

$0.44

per

–

2005

Investment Summary

NYSE: CDI

•

Unique player in the Professional Services sector

–

Less cyclical with more than 50% of revenues from higher-margin, longer-cycle

engineering and IT business

–

Only single-source provider of engineering and IT solutions and professional

staffing

•

Long-term client relationships at senior levels in Fortune 1000

companies

•

Poised to leverage highly favorable incremental margins at MRI as

recovery in permanent placement marketplace continues

•

Poised to leverage anticipated increase in capital spending through

business model which can create variable contribution margin in the

low to mid teens

Investment Summary (cont.)