Laureate Education, Inc. · NASDAQ:LAUR

Laureate Education — Q2 2017 Earnings Presentation

30 slides from Laureate Education's earnings presentation, Aug 8, 2017

  1. Slide 1: Second Quarter 2017 Earnings Presentation

    Second Quarter 2017 Earnings Presentation August 8, 2017 1

  2. Slide 2: Forward Looking Statements

    Forward Looking Statements This presentation includes statements that express Laureate's opinions, expectations, beliefs, plans, objectives, assumptions or projections regarding future events or future results and therefore are, or may be deemed to be, "forw ard-looking statements" w ithin the meani

  3. Slide 3: Q2 2017 Performance Highlights

    Q2 2017 PERFORMANCE HIGHLIGHTS © 2017 Laureate Education, Inc. | Confidential & Proprietary 3

  4. Slide 4: Q2 and YTD Q2 2017 Financial Performance Highlights

    Q2 and YTD Q2 2017 Financial Performance Highlights 2nd Quarter 2017 YTD 2017 Adj. Adj. Revenue EBITDA Revenue EBITDA $1,277M $342M $2,133M $390M +8% +22% +6% +22% Organic constant Organic constant Organic constant Organic constant currency growth (1) currency growth (1) currency growth (1) currency

  5. Slide 5: New Segment Reporting

    New Segment Reporting • New organization structure created to enable a more streamlined and efficient operating model ONLINE & PARTNERSHIPS GPS CENTRAL AMERICA & U.S. CAMPUSES BRAZIL LATAM MEXICO ANDEAN & IBERIAN EMEAA EMEAA © 2017 Laureate Education, Inc. | Confidential & Proprietary 5

  6. Slide 6: YTD Q2 Enrollment by Segment

    YTD Q2 Enrollment by Segment • New Enrollments for YTD Q2 2017 increased 2% and Total Enrollments grew 3% versus Q2 2016 on an organic basis (excluding 2016 divestitures(1)) – The primary driver of GPS’ decline in new enrollment was an online calendar shift that pushed a start period from June to Ju

  7. Slide 7: Q2 '17 vs. Q2 '16 Revenue & Adj. EBITDA Bridges – Total Company

    Q2 ’17 vs. Q2 ’16 Revenue & Adj. EBITDA Bridges – Total Company Q2 ’17 vs. Q2 ’16 Laureate Revenue Bridge Q2 ’17 Performance Highlights ($ in USD millions) $11.2 $98.9  Second quarter results favorably impacted by year- +3% $1,277.4 $1,231.9 $(64.6) over-year timing related to shift in timing of cl

  8. Slide 8: YTD Q2 '17 vs. '16 Revenue & Adj. EBITDA Bridges – Total Company

    YTD Q2 ’17 vs. ’16 Revenue & Adj. EBITDA Bridges – Total Company YTD Q2 ’17 vs. YTD Q2 ’16 Laureate Revenue Bridge YTD Q2 ’17 Performance Highlights ($ in USD millions) $126.9 $7.8  First half of 2017 shows solid performance in +3% $2,138.4 $2,133.4 revenue and Adjusted EBITDA, with results +6% $(1

  9. Slide 9: Q2 '17 vs. Q2 '16 Revenue & Adj. EBITDA Bridges – LatAm Segment

    Q2 ’17 vs. Q2 ’16 Revenue & Adj. EBITDA Bridges – LatAm Segment Q2 ’17 vs. Q2 ’16 Revenue Bridge Q2 ’17 Performance Highlights ($ in USD millions) $831.1  Q2 ’17 Revenue increased $45 million or 6% vs. prior $22.7 +3%$75.1 year on an organic constant currency(1) basis when $733.3 adjusted for the 2

  10. Slide 10: YTD Q2 '17 vs. '16 Revenue & Adj. EBITDA Bridges – LatAm Segment

    YTD Q2 ’17 vs. ’16 Revenue & Adj. EBITDA Bridges – LatAm Segment YTD Q2 ’17 vs. YTD Q2 ’16 Revenue Bridge YTD Q2 ’17 Performance Highlights ($ in USD millions) $1,252.6  YTD Q2 ’17 LatAm New Enrollments and Total +3% $29.6 $85.8 Enrollments both increased 3% as compared to Q2 ’16 $1,137.2 +8% ‒ Gro

  11. Slide 11: Q2 '17 vs. Q2 '16 Revenue & Adj. EBITDA Bridges – EMEAA Segment

    Q2 ’17 vs. Q2 ’16 Revenue & Adj. EBITDA Bridges – EMEAA Segment Q2 ’17 vs. Q2 ’16 Revenue Bridge Q2 ’17 Performance Highlights ($ in USD millions) $18.3  Q2 ’17 Revenue increased $18 million or 8% vs. prior $261.1 year on an organic constant currency(1) basis $(11.1) +8% $245.5  Q2 ’17 Adjusted EB

  12. Slide 12: YTD Q2 '17 vs.'16 Revenue & Adj. EBITDA Bridges – EMEAA Segment

    YTD Q2 ’17 vs.’16 Revenue & Adj. EBITDA Bridges – EMEAA Segment YTD Q2 ’17 vs. YTD Q2 ’16 Revenue Bridge YTD Q2 ’17 Performance Highlights ($ in USD millions) $34.6  YTD Q2 ’17 EMEAA New Enrollments decreased (3%) $505.1 +3% $(20.9) while Total Enrollments increased 6%, on an organic +8% $472.7 bas

  13. Slide 13: Q2 '17 vs. Q2 '16 Revenue & Adj. EBITDA Bridges – GPS Segment

    Q2 ’17 vs. Q2 ’16 Revenue & Adj. EBITDA Bridges – GPS Segment Q2 ’17 vs. Q2 ’16 Revenue Bridge Q2 ’17 Performance Highlights ($ in USD millions) $241.7 $5.1  Q2 ’17 Revenue increased $5 million or 3% vs. prior +3% +3% $(0.4) year on an organic constant currency(1) basis $204.6 $(41.8)  Q2 ’17 Adju

  14. Slide 14: YTD Q2 '17 vs. '16 Revenue & Adj. EBITDA Bridges – GPS Segment

    YTD Q2 ’17 vs. ’16 Revenue & Adj. EBITDA Bridges – GPS Segment YTD Q2 ’17 vs. YTD Q2 ’16 Revenue Bridge YTD Q2 ’17 Performance Highlights ($ in USD millions) $502.1 $5.3  YTD Q2 ’17 New Enrollment decreased (2%) and Total +3% $(0.9) +1% Enrollments decreased (5%), respectively, vs. prior $412.9 yea

  15. Slide 15: Accelerator Plan

    ACCELERATOR PLAN © 2017 Laureate Education, Inc. | Confidential & Proprietary 15

  16. Slide 16: Accelerator Plan

    Accelerator Plan  Process underway to exit 5 - 7 markets in EMEAA that are deemed unlikely to reach a scale that will be meaningful for Laureate – Expected indicative and final offers in Q4 2017 with closings in Q1 2018 – 2017 pro-forma revenue impact of approx. $200M - $250M with expected EBITDA m

  17. Slide 17: 2017 Outlook

    2017 OUTLOOK © 2017 Laureate Education, Inc. | Confidential & Proprietary 17

  18. Slide 18: FY 2017 Updated Guidance

    FY 2017 Updated Guidance • Total Enrollments: reiterate 2.0% - 3.5% organic growth • Revenue: increasing bottom end of the range; 5.0% - 6.0% growth on an organic constant currency basis • Adjusted EBITDA: with H1 2017 completed, narrowing the range to 8.5% - 9.5% growth on an organic constant curre

  19. Slide 19: Q3 2017 Guidance

    Q3 2017 Guidance • Q3 2017 revenue is expected to only show modest year-over-year growth, unfavorably impacted by the Q3 2016 shift of classes due to the Chile nationwide student protest in Q2 2016 • Q3 2017 Adjusted EBITDA is expected to be down year-over-year due to the 2016 make- up of classes in

  20. Slide 20: Other Updates

    OTHER UPDATES © 2017 Laureate Education, Inc. | Confidential & Proprietary 20

  21. Slide 21: Share Count and Capital Structure

    Share Count and Capital Structure  Following the refinancing of the corporate debt during the second quarter, on August 2, 2017 Laureate notified the holders of the 9.25% Replacement Senior Notes due 2019 that the conditions precedent had been met and that the remaining outstanding 9.25% Replacemen

  22. Slide 22: Appendix

    APPENDIX © 2017 Laureate Education, Inc. | Confidential & Proprietary 22

  23. Slide 23: Seasonality: Main Enrollment Intakes

    Seasonality: Main Enrollment Intakes • Q1 and Q3 are peak intake quarters, but seasonally weak earnings quarters as institutions are largely out of session during the summer season – Q1 represents the large intake for our Southern Hemisphere institutions (Brazil, Peru, Chile) – Q3 represents the lar

  24. Slide 24: Intra-Year Seasonality Trends

    Intra-Year Seasonality Trends • Large intake cycles at end of Q1 (Southern Hemisphere) and end of Q3 (Northern Hemisphere) drive seasonality of earnings (Q2 and Q4 are our strongest earnings quarters) Revenue Seasonality Adj. EBITDA Seasonality Academic Calendar Academic Calendar 46% 46% 29% 28% 30%

  25. Slide 25: Financial Tables

    Financial Tables Note: Dollars in millions, except per share amounts, and may not sum to total due to rounding © 2017 Laureate Education, Inc. | Confidential & Proprietary 25

  26. Slide 26: Financial Tables

    Financial Tables Note: Dollars in millions, except per share amounts, and may not sum to total due to rounding © 2017 Laureate Education, Inc. | Confidential & Proprietary 26

  27. Slide 27: Financial Tables

    Financial Tables Note: Dollars in millions, except per share amounts, and may not sum to total due to rounding © 2017 Laureate Education, Inc. | Confidential & Proprietary 27

  28. Slide 28: Financial Tables

    Financial Tables Note: Dollars in millions, except per share amounts, and may not sum to total due to rounding © 2017 Laureate Education, Inc. | Confidential & Proprietary 28

  29. Slide 29: Financial Tables

    Financial Tables Note: Dollars in millions, except per share amounts, and may not sum to total due to rounding © 2017 Laureate Education, Inc. | Confidential & Proprietary 29

  30. Slide 30: © 2017 Laureate Education, Inc. | Confidential & Proprietary

    © 2017 Laureate Education, Inc. | Confidential & Proprietary 30

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