EX-99 2 dex99.htm SLIDE PRESENTATION Slide Presentation
CDI CORP.
Committed to creating shareholder value through long-term
profitable growth
©
2007
CDI
Corp
-
Proprietary
information.
Use
or
dissemination
without
prior
consent
is
strictly
prohibited
.
Exhibit 99


2
NYSE: CDI
CAUTION CONCERNING FORWARD-
LOOKING STATEMENTS
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.
Because
these
forward-looking
statements
are
based
on
estimates
and
assumptions
that
are
subject
to
significant
business,
economic
and
competitive
uncertainties,
many
of
which
are
beyond
our
control
or
are
subject
to
change,
actual
outcomes
and
results
may
differ
materially
from
what
is
expressed
or
forecasted
in
these
forward-looking
statements.
Important
factors
that
could
cause
actual
results
to
differ
materially
from
the
forward-looking
statements
include,
but
are
not
limited
to:
changes
in
general
economic
conditions
and
levels
of
capital
spending
by
customers
in
the
industries
that
we
serve;
possible
inaccurate
assumptions
or
forecasts
regarding
the
bill
rate,
profit
margin
and
duration
of
assignment
applicable
to
billable
personnel
(and
regarding
the
utilization
rate
of
billable
personnel
in
our
project
business);
competitive
market
pressures;
the
availability
and
cost
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;
the
ability
to
pass
on
to
customers
increases
in
costs
(such
as
those
relating
to
workers’
compensation,
unemployment
insurance,
medical
insurance
coverage
or
other
costs
which
may
arise
from
regulatory
requirements);
our
performance
on
customer
contracts;
the
possibility
of
incurring
liability
for
our
activities,
including
the
activities
of
our
temporary
employees;
adverse
consequences
arising
out
of
the
U.K.
Office
of
Fair
Trading
investigation;
and
government
policies
or
judicial
decisions
adverse
to
the
staffing
industry.
More
detailed
information
about
some
of
these
risks
and
uncertainties
may
be
found
in
our
filings
with
the
SEC,
particularly
in
the
"Risk
Factors"
section
of
our
Form
10-K's
and
the
"Management's
Discussion
and
Analysis
of
Financial
Condition
and
Results
of
Operations"
section
of
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.


3
NYSE: CDI
CDI AT A GLANCE
FOUR MAJOR BUSINESS UNITS
Management
Management
Recruiters
Recruiters
International
International
$67.4MM*
$67.4MM*
Todays Staffing
Todays Staffing
$151.9MM*
$151.9MM*
AndersElite
AndersElite
$217.2MM*
$217.2MM*
CDI
CDI
Business
Business
Solutions
Solutions
$828.8MM*
$828.8MM*
2006 Consolidated Revenue:  $1,265.3mm
2006 % Total Revenue
7.2%
7.2%
BS
BS
52.4%
52.4%
Anders
Anders
13.9%
13.9%
Anders
Anders
17.2%
17.2%
12.0%
12.0%
2006 % Total Operating Profit
(pre-corporate allocation)
*2006 Full Year Revenue
BS
BS
65.5%
65.5%
MRI
Todays
Todays
MRI
MRI
26.5%
26.5%


4
NYSE: CDI
TODAYS STAFFING
+1.9%
$149.1
$151.9
Total Revenue (in millions)
2.3%
2.6%
Permanent Placement
97.7%
97.4%
Staffing Services
2006
vs.  2005
Full Year
Positioned as provider of high-quality candidates while
delivering competitively superior value
65 company-owned and franchised offices in the U.S. and
Canada
Temporary, permanent placement and managed staffing of 
administrative, financial and legal professionals


5
NYSE: CDI
ANDERSELITE
+17.8%
$184.4
$217.2
Total Revenue (in millions)
10.1%
11.1%
Permanent Placement
89.9%
88.9%
Staffing Services
2006
vs.  2005
Full Year
Powerful candidate sourcing capability to deliver client value
in all levels of permanent, temporary and contract recruitment of
construction industry specialists
13 company-owned offices in the U.K, 2 in Australia
Focus is in U.K. and, to a lesser degree, Australia
Provides building and construction professionals for private
and government-funded design and construction projects


6
NYSE: CDI
MANAGEMENT RECRUITERS INTERNATIONAL
4.8%
5.5%
Franchise Fees
+8.4%
$62.3
$67.5
Total Revenue (in millions)
48.3%
41.6%
Permanent Placement & Royalties
46.9%
52.9%
Staffing Services
2006
vs.  2005
Full Year
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
executive, technical, professional managerial and sales personnel
Approximately 800 MRINetwork
franchised offices in the United
States and 2 International Master Licenses in the UK & Japan
Global franchise network and specialty staffing firm; One of the
world’s largest executive search and recruitment organizations


7
NYSE: CDI
CDI BUSINESS SOLUTIONS
37.6%
38.2%
Project Outsourcing
+12.3%
$737.8
$828.8
Total Revenue (in millions)
0.6%
0.5%
Permanent Placement
61.8%
61.3%
Staffing Services
2006
vs.  2005
Full Year
Leverages speed, skill and scale to enable clients to achieve
higher ROI utilizing skilled CDI professionals and superior
project management capabilities
61 offices in the U.S. as well 8 in Canada & Germany
Includes IT Services, Process & Industrial, Aerospace,
Government Services, and Life Sciences verticals
Offers single source engineering and IT outsourced
solutions, professional staffing and managed staffing services


8
NYSE: CDI
CDI BUSINESS SOLUTIONS:  KEY VERTICALS
Sample Services:
Marine Design, Systems Development, Military
Aviation Support, IT Solutions
U.S. Government Agencies & U.S. Allies
CDI-Government Services –
7.0%*
Sample
Services:
Mechanical
Design
&
Structural
Analysis,
Electronics,
Technical Publications, Logistics
Commercial & Military Aerospace, Satellite/Space Systems
CDI-Aerospace –
10.0%*
Sample Services:
Engineering, Procurement, Construction
Management, Feasibility Studies & Process Consulting, Turnaround
Services
Chemicals, Oil, Gas, Refining, Telecom, Power Generation, Alternative
Energy
CDI-Process & Industrial –
44.7%*
*
2006 Business Solutions Revenue


9
NYSE: CDI
CDI BUSINESS SOLUTIONS:  KEY VERTICALS (CONT.)
Sample
Services:
IT
Staffing,
Outsourcing
Solutions
Financial, Banking, Insurance, Travel, Automotive
CDI-IT Services –
36.9%*
Sample
Services:
Feasibility
Studies,
Site
Selection,
Facility
Design,
Start Up Services, Validation, Pharmaceutical & Biotechnology Staffing
Pharmaceutical, Biotechnology
CDI-Life Sciences –
1.4%*
*
2006 Business Solutions Revenue


10
NYSE: CDI
A UNIQUE SINGLE-SOURCE PROVIDER
Permanent Placement
Engineering Staffing
Professional Staffing
IT Staffing
Temporary Staffing
Engineering Solutions
Regulatory Compliance
Validation
IT Solutions
Engineering Outsourcing
IT Outsourcing
Design & Drafting
Technical Manufacturing
Project Management
Construction
Management
Managed Staffing
SOURCE
SOURCE
TALENT
TALENT
ENGINEER
ENGINEER
SOLUTIONS
SOLUTIONS
MANAGE
MANAGE
SOLUTIONS
SOLUTIONS


11
NYSE: CDI
VALUE CONTINUUM
SERVICE OFFERING
SERVICE OFFERING
CDI VALUE CONTINUUM
CDI VALUE CONTINUUM


12
NYSE: CDI
3-PHASE REPOSITIONING
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
MRI shift to fully franchised organization
Build strategies to move up customer value continuum


13
NYSE: CDI
3-PHASE REPOSITIONING (CONT.)
Phase III (2005-2006):  Create Profitable Growth
Implement and execute strategic growth plan
Revenue momentum vs. year-ago period
Full year 2005:
+8.5%
Full year 2006
+11.6%
Profit momentum
Pre-tax earnings increased 65.8% vs. 2005
Within a strong business environment characterized by:
Solid GDP growth
Solid demand for permanent and contingent hiring
Robust capital spending patterns in key verticals


14
NYSE: CDI
Robust Capital Spending –
A Critical
CDI Growth Factor
High Energy Costs
+$60/bl
10
20
30
40
50
60
$70
Three CapEx Growth Drivers;
Asset Age, Capacity Utilization and Cost of Energy


15
NYSE: CDI
Robust Capital Spending –
A Critical
CDI Growth Factor
Revenue Driven by CapEx Cycle
Peer Companies in Capital Spending Environment
Fluor (FLR)
Washington Group Int’l (WGII)
Jacobs (JEC)
Foster Wheeler (FWLT)
Shaw Group (SGR)
Over 50% of total CDI revenue


16
NYSE: CDI
VALUE PROPOSITION
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.


17
NYSE: CDI
STRATEGIC GROWTH PLAN
Reposition CDI to be a single-source provider of engineering and IT
solutions and professional staffing –
accelerating shift up the value
continuum
Beginning Q1 2007, CDI to report CDI Engineering Solutions (4 verticals) and
CDI IT Solutions to more clearly identify engineering and IT financial dynamics
Capture market share in key verticals by:
Continuing to execute business solutions focusing on higher knowledge content
and longer cycle areas
Leveraging industry expertise in key verticals to provide skills
across verticals
(i.e., apply Life Sciences skills to alternative energy projects)
Developing strategic off-shoring capabilities
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


18
NYSE: CDI
STRATEGIC GROWTH PLAN (CONT.)
Leverage cash-generative business model and available debt capacity
to support organic growth initiatives
Target to achieve pre-tax return on invested capital of 20%+ and
redeploy any assets unable to meet target
Maintain financial discipline and lean headquarter operations to
generate highly-leveraged variable contribution and, over time, seek to
generate 5% operating profit margin
Derive at least 60% of revenues from higher-margin, longer cycle
business
Maintain or establish a top five leadership position in targeted
verticals


19
NYSE: CDI
INVESTMENT SUMMARY
A strong balance sheet and lean cost structure
Strength in client capital expenditure, strong pipeline of new wins and 
continued strength in hiring demand could produce full year 2007
organic revenue growth of 7 –
9% and 7 –
9% YOY growth in Q1 2007
Business model produces solid cash flow to enable organic growth
and dividend payments
Paid quarterly dividends totaling $0.40 per share –
2004
Paid two special dividends of $2.00 per share –
2003 and 2004
Paid quarterly dividend totaling $0.44 per share –
2005 and 2006


20
NYSE: CDI
INVESTMENT SUMMARY (CONT.)
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 500
companies
Poised to leverage highly favorable incremental margins as permanent
placement marketplace continues to expand
Poised to leverage client increases in capital spending through
business model which can create variable contribution margin in the
low to mid teens


www.cdicorp.com
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