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Knowledge. Performance. Impact. GP Strategies INVESTOR Presentation MBI – GP Strategies Company Confidential November 2016

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Page 1: GP Strategies INVESTOR Presentation · 2018. 7. 2. · GP Strategies AWARDS 5 Engineering New Record Leadership Excellence 2015 2014ENR Top 500 Design Firms Elearning!Magazine 2015

Knowledge. Performance. Impact.

GP Strategies INVESTOR Presentation

MBI – GP Strategies Company Confidential

November 2016

Page 2: GP Strategies INVESTOR Presentation · 2018. 7. 2. · GP Strategies AWARDS 5 Engineering New Record Leadership Excellence 2015 2014ENR Top 500 Design Firms Elearning!Magazine 2015

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Safe Harbor

This presentation has been prepared by GP Strategies. This presentation does not constitute

an offer to any person or to the general public to acquire securities issued in any jurisdiction or

an inducement to enter into investment activity.

The information contained in this presentation has not been independently verified. No representation or warranty expressed or implied is

made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or the opinions

contained herein. The Company or any of its respective affiliates shall not have any liability whatsoever (in negligence or otherwise) for any

loss howsoever arising from any use of this presentation or its contents or otherwise arising in connection with the presentation.

This presentation is only for persons having professional experience in matters relating to investments and must not be acted or relied on by

persons who are not such persons.

This presentation includes ‘forward-looking statements’. These statements contain the words “anticipate”, “believe”, “intend”, “estimate”,

“expect” and words of similar meaning. All statements other than statements of historical facts included in this presentation, including,

without limitation, those regarding the Company’s financial position, business strategy, plans and objectives of management for future

operations (including development plans and objectives relating to the Company’s products and services) are forward-looking statements.

Such forward-looking statements involve known and unknown risks, uncertainties and other important factors that could cause the actual

results, performance or achievements of the Company to be materially different from future results, performance or achievements

expressed or implied by such forward-looking statements. Such forward-looking statements are based on numerous assumptions regarding

the Company’s present and future business strategies and the environment in which the Company will operate in the future. These forward-

looking statements speak only as at the date of this presentation. The Company expressly disclaims any obligation or undertaking to

disseminate any updates or revisions to any forward-looking statements contained herein to reflect any change in the Company’s

expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based.

Past performance cannot be relied upon as a guide to future performance.

Page 3: GP Strategies INVESTOR Presentation · 2018. 7. 2. · GP Strategies AWARDS 5 Engineering New Record Leadership Excellence 2015 2014ENR Top 500 Design Firms Elearning!Magazine 2015

3 3

INVESTMENT DATA

Common Shares Outstanding – Fully Diluted 16.8 million

Market Capitalization @ $25.00 per share $419 million

Revenue – TrailingTwelve Months Ended 09/30/2016 $490 million

EBITDA – Trailing Twelve Months 09/30/2016, Excluding Severance $39 million

Corporate Contacts: Scott Greenberg, CEO 443-367-9640

Sharon Esposito-Mayer, CFO 443-367-9636

Investor Relations:

Ann Blank, Director, Investor Relations 443-367-9925

Exchange: NYSE (GPX)

Business: Custom Training & Performance Improvement

Web Address: www.gpstrategies.com

Headquarters: Columbia, Maryland USA

Page 4: GP Strategies INVESTOR Presentation · 2018. 7. 2. · GP Strategies AWARDS 5 Engineering New Record Leadership Excellence 2015 2014ENR Top 500 Design Firms Elearning!Magazine 2015

GP Strategies AWARDS

5

Engineering New Record

2015 ENR Top 500 Design Firms

Elearning! Magazine

2015 Winner for Best Outsource Learning Services provider 2014 Excellence for Best Managed Learning Services provider

Training Industry, Inc.

2016 Top 20 Sales Training Company (9th Consecutive Year)

2016 Top 20 Leadership Training Company (4th Consecutive Year)

2015 Top 20 IT Training Company (8th Consecutive Year)

2015 Top 20 Gamification Company (2nd Consecutive Year)

2015 Top 20 Learning Portal Company (6th Consecutive Year)

2015 Top 20 Workforce Development Company (4th Consecutive Year)

2015 Top 20 Content Development Company (5th Consecutive Year)

2015 Top 20 Training Outsourcing Company (12th Consecutive Year)

Brandon Hall Group

2015 Gold | Best Custom Content

Gold | Best Sales Training Program

Gold | Best Advance in Benefits Strategy and Administration

Silver | Best Advance in Custom Content

Silver | Best Learning Team

Bronze | Best Advance in Compliance Training

Bronze | Best Unique or Innovative Leadership Development Program

Bronze | Best New Hire Onboarding Program

Bronze | Best Advance in Succession and Career Management

Leadership Excellence

2014 Leadership Partners and Providers

Large Consulting Groups

(50+employees); Ranked #3

(7th Consecutive Year)

Leadership Excellence

2007-2015 Leadership 500

Deere & Company

2015 “Partner-Level Supplier” Recognition

(6th Consecutive Year)

What CLIENTS say about us: What INDUSTRY says about us:

Page 5: GP Strategies INVESTOR Presentation · 2018. 7. 2. · GP Strategies AWARDS 5 Engineering New Record Leadership Excellence 2015 2014ENR Top 500 Design Firms Elearning!Magazine 2015

Our LOCATIONS

6

EMEA AMERICAS

Argentina Brazil

Canada Colombia Mexico

United States

APAC

Australia* Hong Kong

India Japan

Mainland China Malaysia

Philippines Singapore

South Korea Taiwan

Denmark Egypt *

Finland * France

Germany Hungary *

Netherlands Poland

South Africa Turkey

United Arab Emirates United Kingdom

* Registered Entity – Office Location Pending

Page 6: GP Strategies INVESTOR Presentation · 2018. 7. 2. · GP Strategies AWARDS 5 Engineering New Record Leadership Excellence 2015 2014ENR Top 500 Design Firms Elearning!Magazine 2015

7

1

7

x 152 Fortune 500 Customers

119 Global 500 List Customers

7

Organization Growth — CUSTOMERS

Page 7: GP Strategies INVESTOR Presentation · 2018. 7. 2. · GP Strategies AWARDS 5 Engineering New Record Leadership Excellence 2015 2014ENR Top 500 Design Firms Elearning!Magazine 2015

8

• Competitive Strengths:

– Global Delivery and Single-Source Custom Training Solutions Provider

– Outstanding Reputation in the Industry

– Diverse and Stable Client Base

– Scalable Technology Platform

– Legacy Technical Expertise

– Business Model Supports Visibility of Revenue

– Highly Qualified and Dedicated Employees and Tenured Management

GP Strategies COMPETITIVE STRENGTHS

• Industry Drivers:

– Outsourcing - companies focusing on core competencies and reducing costs

– Cost effectiveness of E-Learning solutions

– New products, changing technology and regulations

– Global expansion and alignment

Page 8: GP Strategies INVESTOR Presentation · 2018. 7. 2. · GP Strategies AWARDS 5 Engineering New Record Leadership Excellence 2015 2014ENR Top 500 Design Firms Elearning!Magazine 2015

Training is a LARGE and FRAGMENTED MARKET

9

• Total training industry is over $100 billion

• Currently, in excess of 60% of training is performed by in-house

departments, but the trend to outsource increased in 2015

Page 9: GP Strategies INVESTOR Presentation · 2018. 7. 2. · GP Strategies AWARDS 5 Engineering New Record Leadership Excellence 2015 2014ENR Top 500 Design Firms Elearning!Magazine 2015

We are focused on expanding our SERVICES and PRODUCT LINES

10

Page 10: GP Strategies INVESTOR Presentation · 2018. 7. 2. · GP Strategies AWARDS 5 Engineering New Record Leadership Excellence 2015 2014ENR Top 500 Design Firms Elearning!Magazine 2015

GP Strategies REVENUE BY SEGMENT

11

Sandy Training

& Marketing,

21%

Learning

Solutions, 42%

Performance

Readiness

Solutions, 16%

Professional &

Technical

Services, 21%

• Product Sales Training

• Marketing

• Managed Global Learning

Services

• Content Design &

Development

• Organization &

Leadership Development

• Sales Solutions

• Technical & Engineering

• Energy Products

• Government Services

Page 12: GP Strategies INVESTOR Presentation · 2018. 7. 2. · GP Strategies AWARDS 5 Engineering New Record Leadership Excellence 2015 2014ENR Top 500 Design Firms Elearning!Magazine 2015

13

Managed Global Learning Services Content Design & Development Skills Funding Human Capital • Managed Global Learning Services

– Training Administration

– Instructor Resource Management

– Vendor Management

– Tuition Program Management

• Custom Content Development – Instructor Led

– Elearning Learning

– Mobile Training

– Blended Learning

• Skills Funding Agency

• Human Capital Training – Success Factors

GP Strategies LEARNING SOLUTIONS

Page 13: GP Strategies INVESTOR Presentation · 2018. 7. 2. · GP Strategies AWARDS 5 Engineering New Record Leadership Excellence 2015 2014ENR Top 500 Design Firms Elearning!Magazine 2015

14

Organization & Leadership Development

• Sales Solutions

• ERP Solutions

• Organization Leadership

• Executive Leadership Development Services

• Coaching (Mentoring)

• Organizational Change and Transition Services

• Platform Adoption Solutions

• Customer Loyalty

GP Strategies

PERFORMANCE READINESS SOLUTIONS

Page 14: GP Strategies INVESTOR Presentation · 2018. 7. 2. · GP Strategies AWARDS 5 Engineering New Record Leadership Excellence 2015 2014ENR Top 500 Design Firms Elearning!Magazine 2015

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Technical & Engineering

• Energy, Oil & Gas

– Power Plant Performance Consulting and Operator Training

– Design/Build/Maintenance of LNG, LCNG and Hydrogen Fueling

– EtaPRO™ and GPiLearn+™

• Technical and Engineering

– Government

– Technical Documentation

– Maintenance and Reliability Training and Tactics

– Engineering Design/Construction Management

– Process Safety, Risk Management and Compliance Solutions

GP Strategies

PROFESSIONAL & TECHNICAL SERVICES

Energy, Oil & Gas

Technical & Engineering

Page 15: GP Strategies INVESTOR Presentation · 2018. 7. 2. · GP Strategies AWARDS 5 Engineering New Record Leadership Excellence 2015 2014ENR Top 500 Design Firms Elearning!Magazine 2015

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• Strong incremental operating margins

• Variable cost structure

• Strong cash flow

• $65 million credit facility

• Recurring client base

• Backlog visibility

Strong FINANCIAL POSITION

Page 16: GP Strategies INVESTOR Presentation · 2018. 7. 2. · GP Strategies AWARDS 5 Engineering New Record Leadership Excellence 2015 2014ENR Top 500 Design Firms Elearning!Magazine 2015

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GP Strategies REVENUE

$0

$50

$100

$150

$200

$250

$300

$350

$400

$450

$500

$550

$600

2012 2013 2014 2015 Nine Months

2015

Nine Months

2016

$294.5 $307.6 $350.3 $371.2

$273.5 $286.3

$107.1 $129.1

$151.6 $119.1

$90.3 $77.0

$ M

illio

ns

Professional and Technical Services

$401.6

$436.7

$501.9 $490.3

$363.8 $363.3

Page 17: GP Strategies INVESTOR Presentation · 2018. 7. 2. · GP Strategies AWARDS 5 Engineering New Record Leadership Excellence 2015 2014ENR Top 500 Design Firms Elearning!Magazine 2015

Over 50 years of

SEASONED INSIGHTS

Serving a Diverse CLIENT BASE

18

Page 18: GP Strategies INVESTOR Presentation · 2018. 7. 2. · GP Strategies AWARDS 5 Engineering New Record Leadership Excellence 2015 2014ENR Top 500 Design Firms Elearning!Magazine 2015

19

GP Strategies EBITDA

$0.0

$5.0

$10.0

$15.0

$20.0

$25.0

$30.0

$35.0

$40.0

$45.0

$50.0

$55.0

2012 2013 2014 2015* Nine Months

2015*

Nine Months

2016**

$44.0 $47.5

$53.4

$38.9

$27.1 $27.5

$ M

illio

ns

*Inclusive of Currency Losses, Restructuring & Contingent Consideration totaling $4.0M in 2015.

**Inclusive of severance of $0.5M in 2016.

Page 19: GP Strategies INVESTOR Presentation · 2018. 7. 2. · GP Strategies AWARDS 5 Engineering New Record Leadership Excellence 2015 2014ENR Top 500 Design Firms Elearning!Magazine 2015

20

GP Strategies BACKLOG

$0

$25

$50

$75

$100

$125

$150

$175

$200

$225

$250

$275

$300

$325

2013 2014 2015 Q3 2015 Q3 2016*

$239.5 $234.1 $239.1 $246.8

$302.3

$ M

illio

ns

*Includes approximately $34M for oil and gas client to be performed over 5 years.

Page 20: GP Strategies INVESTOR Presentation · 2018. 7. 2. · GP Strategies AWARDS 5 Engineering New Record Leadership Excellence 2015 2014ENR Top 500 Design Firms Elearning!Magazine 2015

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GP Strategies BALANCE SHEET

December 31, September 30

2015 2016

Cash 21,030$ 15,695$

Accounts Receivable 90,912 89,939

Costs in Excess of Billings 46,061 53,137

Prepaid Expenses & Other 9,173 14,028

Total Current Assets 167,176 172,799

Property, Plant & Equip. 6,245 4,902

Goodwill & Intangibles 128,196 126,442

Other Assets 733 3,158

Total Assets 302,350$ 307,301$

Short Term Borrowings 34,084$ 44,849$

Current Portion of LT Debt 13,333 13,333

Accounts Payable 61,071 67,066

Billings in Excess of Costs 18,366 13,759

Total Current Liabilities 126,854 139,007

Long-Term Debt 11,111 1,111

Other Non-Current Liabilities 6,041 5,116

Stockholders' Equity 158,344 162,067

Total 302,350$ 307,301$

Page 21: GP Strategies INVESTOR Presentation · 2018. 7. 2. · GP Strategies AWARDS 5 Engineering New Record Leadership Excellence 2015 2014ENR Top 500 Design Firms Elearning!Magazine 2015

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• Recognized leader in a large training market

• Blue chip customers in multiple markets

• Clear growth strategy

• Strong financial position

• Successful acquisition strategy in highly fragmented markets

POISED for SUCCESS

Page 22: GP Strategies INVESTOR Presentation · 2018. 7. 2. · GP Strategies AWARDS 5 Engineering New Record Leadership Excellence 2015 2014ENR Top 500 Design Firms Elearning!Magazine 2015

gpstrategies.com

© 2016 GP Strategies Corporation. All rights reserved. GP Strategies, GP Strategies and logo design, BlessingWhite, Rovsing Dynamics, Asentus, Information Horizons, PMC, GP Sandy, Bath Consultancy Group, Academy of Training,

Martonhouse, Via Training, Beneast Training, Ultra, RWD, Communication Consulting, Option Six, Milsom, Clutterbuck Associates, PerformTech, Future Perfect, Smallpeice Enterprises, Prospero Learning Solutions, Lorien Engineering Solutions,

Effective-People, Effective-Learning, GPiLEARN, GPCALCS, GPSteam, EtaPRO, and VirtualPlant are trademarks or registered trademarks of GP Strategies Corporation in the U.S. and other countries. All other trademarks are trademarks or

registered trademarks of their respective owners. Proprietary to GP Strategies Corporation

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