Wendel : Crisis Prevention Institute presentation - Tony Jace

Crisis Prevention Institute

2020 Wendel Investor Day	2020

L O N G - T E R M I N V E S T O R

2020 Investor Day | November 4, 2020	1

CPI

$569m

equity invested since 2019(1)

96.3%

equity stake

(1) Amount of equity invested by Wendel as of December 31, 2019

2020 Investor Day | November 4, 2020

Leading provider of crisis management

behavior training in the US

• Leading provider of de-escalation training
• Market opportunity across many countries
• Critical tool to reduce workplace violence
• Large installed base with recurring revenue
• Attractive financial profile
• Digital product innovation helped to manage through difficult current market conditions

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Tony Jace- CEO of CPI

Tony Jace has been CPI's CEO since 2009.

Built CPI into leader for workplace violence reduction training.

Increased revenues at a 14% CAGR while accelerating the company's expansion into healthcare, international markets and new products, including its digital and e-learning offering.

Prior global management experience with large multinationals including Oracle, CapGemini Ernst & Young, and Kimberly Clark.

CPI is a mission driven organization that overachieves the needs of our 3 key stakeholders-customers, employees, and owners. We do this by growing our societal impact by providing premium training and content for professionals worldwide.

Our standards of behavior are paramount and focus on customer value, financial stewardship, and unparalleled quality.

We recognize loyalty is a reciprocal obligation to our stakeholders and this common purpose is embedded in our work environment.

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Business model

70 Global Professional Instructors (GPIs), full- time experts employed by CPI

Train

36,000 Active	Train	1.4+ million learners
Certified Instructors	per annum

Worldwide leader in de-escalation and

Most popular programs:

Verbal

Intervention™

Nonviolent Crisis

• Certified Instructors (CIs) are nurses, teachers and other professionals selected by CPI's customers
• CPI requires each CI to renew bi-annually

• Learners (co-workers of the CI) utilize CPI's workbooks and online training content for their Blue Card certification.

• Materials are purchased by their employer from CPI and their certification is on an annual basis

crisis prevention

training and dementia

care services

Intervention®

Nonviolent Crisis Intervention® plus Advanced Skills

Dementia Capable

Care

End markets, as % of 2019 sales

Healthcare	c.40%	United States	c.78%
Education	c.40%	Canada	c. 9%
Social Services,	c.20%	United	c. 9%
Retail, Security		Kingdom
& Law Enforcement			c. 4%
		Others

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Business transformations to adapt to the situation

1. Innovate to adapt to evolving customer needs

 Accelerate Rebound: Moved to fully virtual renewals in 2020 and reduced classroom time by 50% for new instructors (CIs). Online learning up 105% YOY.

 Amplify Customer Confidence: Quickly developed training and resources to help customers feel safe to teach at their facilites and attend our hosted events. These guides/tools have increased the training rate 15% over past 6 months.

1. Advance the investment in new programs to drive future growth
2. • Address Adjacencies: Penetrate underserved end-markets by launching programs related to mental health, enhancing classroom culture, and providing content extensions to support families and caregivers.
3. Generate mid and long-term demand
4. • Demonstrate Relevancy: Provided industry-leading services, programs, and support during Covid-19 to drive demand and increase accessibility to training and products.
   • Increase Awareness: Drove large-scale PR campaigns (eg holiday retail anxiety, US Elections, Covid-19) to create urgency and grow a pipeline of interest for 2021 and beyond (>500M media impressions* and a 28%

increase to site traffic** in October post launch).

*PR Impression Data: Trend Kite PR Analytics Tool, **Website Traffic: Google Analytics
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2020 Investor Day | November 4, 2020

Long track record of consistent growth

Long-term trend of sales and EBITDA

88

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2008	2009	2010	2011	2012	2013	2014	2015	2016	2017	2018	2019
						Revenue ($M)			EBITDA

An impressive track record of growth that is almost entirely organic 3 small acquisitions completed since 2009

A very high cash flow conversion (>90% FCF conversion rate(1))

(1) Free cash flow conversion rate: (Adjusted EBITDA-CAPEX)/ Adjusted EBITDA

2020 Investor Day | November 4, 2020

Figures are presented as per US GAAP 2019 non audited

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Financial impact following the crisis

Monthly sales
160			2019		2020	Basis 100: January 2019 sales
140
120
100
80
60
40
20
-
Jan	Feb	Mar	Apr	May	June	Jul	Aug	Sept

Net debt and leverage

330.4	342.1
		Net debt $m
	10.0	Leverage
7.2
Dec-19	June-20

EBITDA ($m)

	17.00
		c. -60% YoY
		7.10
	H1-2019	H1-2020
EBITDA margin, %	n/a	27.2%

• Quick rebound following spring lockdown
• Leverage impacted by low 2Q EBITDA
• Amendment provides flexibility through mid-2021
• Recent months reflect historic EBITDA margins
• Strong cash flow conversion ratio: >90% (1)
• Ample liquidity and free cash flow
• 1. Free cash flow conversion rate: (Adjusted EBITDA-CAPEX)/ Adjusted EBITDA

2020 Investor Day | November 4, 2020	EBITDA before goodwill allocation entries, management fees and non-recurring items. EBITDA is post IFRS 16 impacts; pre IFRS 16, H1 2020 EBITDA is $6.6 million.	8
For CPI direct costs linked to Covid19 pandemic (masks, alcoholic gel purchases and travels' cancellations) are excluded from the EBITDA presented above and
		monitored by management.) YoY EBITDA decline is calculated on a pre IFRS 16 basis due to data availability

How we prepare/see to the rebound

Continue to:

• Focus on serving customers to ensure their compliance in providing safe work environments whilst assisting in their pandemic resiliency.
• Execute our strategies in managing the short-term volatility until the pandemic abates.
• Maintain our contemporaneous focus on growth:
• • Gaining market share in core markets (recovery lift and pure organic growth)
  • New products and programs (eg Mental Health and Dementia Care)
  • Continued digitalization of core content for micro and refresher trainings
  • International expansion
  • New market penetrations including call centers, walk-in clinics and home health
• Invest in team excellence as we recently welcomed a new CFO, Managing Director of International (London-based) and VP of Human Resources.
• Leverage our relationship with Wendel as we manage this accelerated growth and finalize this summer's work on refreshing CPI's 5 year strategy.

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As a mission-driven organization, ESG is a key lever for growth

CPI promotes workplace safety for all members of its clients' communities - including their employees and the populations they serve

• CPI's services enable its instructors and learners to keep their workplaces safer. The Company has a reputation for teaching effective ways to prevent, and de- escalate, potentially dangerous situations using safe techniques, which
  is particularly important when caring for fragile populations like children with special needs or patients with behavioral challenges.
• As incidents of school and workplace violence continue to rise, CPI plays a critical role in ensuring the consequences of these events are mitigated.
• Additionally, the use of psychotropic drugs by seniors living with dementia is increasing - CPI training greatly reduces the need for pharmacological interventions which subsequently increases the life expectancy of these seniors.

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Key takeaways

Global leader with attractive business model, large installed base and defensible moats (in-person, online and digital offerings).

Large, underserved market with growing demand to help manage crisis moments in society.

Innovative, mission-driven culture helped adapt to ensure customers were well prepared and maintained compliance during COVID- driven changing marketplace.

2020 Investor Day | November 4, 2020

Quick response to COVID enabled quick recovery and unlocked new growth areas.

Positive societal contribution in helping reduce workplace violence and protect professionals, patients, customers and their families.

Intent focus on long-term growth by using current environment to invest in key strategic growth pillars, including international expansion, product development, digitalization and new markets.

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