Slide 1: Forward Looking Statements
Forward Looking Statements 2 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, "forward-looking statements" within the meani
Slide 2: Q2 2017 Performance Highlights
Q2 2017 PERFORMANCE HIGHLIGHTS
Slide 3: Q2 and YTD Q2 2017 Financial Performance Highlights
Q2 and YTD Q2 2017 Financial Performance Highlights 4 Total Enrollment: 1,070,900 3% organic growth vs. June 30, 2016 New Enrollment: 295,900 2% organic growth vs. YTD Q2 2016 Revenue $2,133M +6% Organic constant currency growth (1) Adj. EBITDA $390M +22% Organic constant currency growth (1) YTD 201
Slide 4: New Segment Reporting
New Segment Reporting New organization structure created to enable a more streamlined and efficient operating model GPS LATAM EMEAA ONLINE & PARTNERSHIPS CENTRAL AMERICA & U.S. CAMPUSES MEXICO BRAZIL ANDEAN & IBERIAN EMEAA Online & Partnerships U.S. Campus Based Operations Costa Rica, Panama, Hondur
Slide 5: 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 July 6
Slide 6: Q2 '17 vs. Q2 '16 Revenue & Adj. EBITDA Bridges – Total Company
Q2 ’17 vs. Q2 ’16 Revenue & Adj. EBITDA Bridges – Total Company 7 Second quarter results favorably impacted by year-over-year timing related to shift in timing of classes in Chile in 2016 Q2 ’17 Revenue of $1,277 million increased 4% vs. Q2 ’16 on a reported basis On an organic constant currency(1)
Slide 7: YTD Q2 '17 vs. '16 Revenue & Adj. EBITDA Bridges – Total Company
YTD Q2 ’17 vs. ’16 Revenue & Adj. EBITDA Bridges – Total Company 8 First half of 2017 shows solid performance in revenue and Adjusted EBITDA, with results favorably impacted by year-over-year timing shifts related to class starts and timing of expenses YTD Q2 ’17 Revenue of $2,133 million essentiall
Slide 8: Q2 '17 vs. Q2 '16 Revenue & Adj. EBITDA Bridges – LatAm Segment
Q2 ’17 vs. Q2 ’16 Revenue & Adj. EBITDA Bridges – LatAm Segment 9 Q2 ’17 vs. Q2 ’16 Revenue Bridge Q2 ’17 Performance Highlights Q2 ’17 vs. Q2 ’16 Adj. EBITDA Bridge +3% +17% ($ in USD millions) ($ in USD millions) Q2 ’17 Revenue increased $45 million or 6% vs. prior year on an organic constant curr
Slide 9: YTD Q2 '17 vs. '16 Revenue & Adj. EBITDA Bridges – LatAm Segment
YTD Q2 ’17 vs. ’16 Revenue & Adj. EBITDA Bridges – LatAm Segment 10 YTD Q2 ’17 vs. YTD Q2 ’16 Revenue Bridge YTD Q2 ’17 Performance Highlights YTD Q2 ’17 vs. YTD Q2 ’16 Adj. EBITDA Bridge +3% +17% ($ in USD millions) ($ in USD millions) YTD Q2 ’17 LatAm New Enrollments and Total Enrollments both inc
Slide 10: Q2 '17 vs. Q2 '16 Revenue & Adj. EBITDA Bridges – EMEAA Segment
Q2 ’17 vs. Q2 ’16 Revenue & Adj. EBITDA Bridges – EMEAA Segment 11 Q2 ’17 vs. Q2 ’16 Revenue Bridge Q2 ’17 Performance Highlights Q2 ’17 vs. Q2 ’16 Adj. EBITDA Bridge ($ in USD millions) ($ in USD millions) Q2 ’17 Revenue increased $18 million or 8% vs. prior year on an organic constant currency(1)
Slide 11: YTD Q2 '17 vs. '16 Revenue & Adj. EBITDA Bridges – EMEAA Segment
YTD Q2 ’17 vs.’16 Revenue & Adj. EBITDA Bridges – EMEAA Segment 12 YTD Q2 ’17 vs. YTD Q2 ’16 Revenue Bridge YTD Q2 ’17 Performance Highlights YTD Q2 ’17 vs. YTD Q2 ’16 Adj. EBITDA Bridge +3% ($ in USD millions) ($ in USD millions) YTD Q2 ’17 EMEAA New Enrollments decreased (3%) while Total Enrollmen
Slide 12: Q2 '17 vs. Q2 '16 Revenue & Adj. EBITDA Bridges – GPS Segment
Q2 ’17 vs. Q2 ’16 Revenue & Adj. EBITDA Bridges – GPS Segment 13 Q2 ’17 vs. Q2 ’16 Revenue Bridge Q2 ’17 Performance Highlights Q2 ’17 vs. Q2 ’16 Adj. EBITDA Bridge +3% ($ in USD millions) ($ in USD millions) Q2 ’17 Revenue increased $5 million or 3% vs. prior year on an organic constant currency(1)
Slide 13: YTD Q2 '17 vs. '16 Revenue & Adj. EBITDA Bridges – GPS Segment
YTD Q2 ’17 vs. ’16 Revenue & Adj. EBITDA Bridges – GPS Segment 14 YTD Q2 ’17 vs. YTD Q2 ’16 Revenue Bridge YTD Q2 ’17 Performance Highlights YTD Q2 ’17 vs. YTD Q2 ’16 Adj. EBITDA Bridge +3% +17% ($ in USD millions) ($ in USD millions) YTD Q2 ’17 New Enrollment decreased (2%) and Total Enrollments de
Slide 14: YTD Q2'17 vs. '16 Revenue & Adj. EBITDA Bridges - GPS Segment
YTD Q2’17 vs. '16 Revenue & Adj. EBITDA Bridges - GPS Segment (Sh USO matlons) $502.4 $53 ry (0.9) $412.9 $(93.6) YTD'6 Organic” —-FX_——Divestiture. YTD "17 Revenue Growth (Switz) Revenue YTD Q2'17 vs. YTD Q2 16 Adj. EBITDA Bridge ($n USO mitons) $135.0 $6.5 s a |_| $(23.1) YTD'16 Organic” Adj.EBITD
Slide 15: Accelerator Plan
Accelerator Plan 16 Asset Sales 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
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 proforma revenue impact of approx. $200M - $250M with expected EBITDA ma
Slide 17: FY 2017 Updated Guidance
FY 2017 Updated Guidance 18 Represents the contribution from France and Switzerland to Revenue and Adjusted EBITDA during 2016 Based on actual FX rates for Jan – Jun 2017, and current spot FX rates (local currency per U.S. dollar) of MXN 17.67, BRL 3.16, CLP 648.00, PEN 3.25, EUR 0.86 for Jul – Dec
Slide 18: 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 Chil
Slide 19: Share Count and Capital Structure
Capital Structure Share Count Share Count and Capital Structure 21 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 remaini
Slide 20: 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% Replaceme
Slide 21: 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 large int
Slide 22: 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) 24 Revenue Seasonality Adj. EBITDA Seasonality New Enrollments Seasonality Factors Affecting Seasonal
Slide 23: Financial Tables: Revenue and Adjusted EBITDA by Segment
Financial Tables 26 Note: Dollars in millions, except per share amounts, and may not sum to total due to rounding Revenue and Adjusted EBITDA by segment IN MILLIONS % Change $ Variance Components For the quarter ended June 30, 2017 2016 Reported Organic Constant Currency(4) Total Organic Constant Cu
Slide 24: Financial Tables: Consolidated Balance Sheets
Financial Tables 27 Note: Dollars in millions, except per share amounts, and may not sum to total due to rounding Financial Tables Consolidated Balance Sheets IN MILLIONS June 30, 2017 December 31, 2016 Change Assets Cash and cash equivalents $ 367.2 $ 465.0 $ (97.8) Receivables (current), net 499.4
Slide 25: Financial Tables: Consolidated Statements of Cash Flows
Financial Tables 28 Note: Dollars in millions, except per share amounts, and may not sum to total due to rounding Financial Tables Consolidated Statements of Cash Flows IN MILLIONS For the six months ended June 30, 2017 2016 Change Cash flows from operating activities: Net (loss) income $(3.3) $246.
Slide 26: Financial Tables: Non-GAAP Reconciliation
Financial Tables 29 Note: Dollars in millions, except per share amounts, and may not sum to total due to rounding Non-GAAP Reconciliation For the Three For the six months ended months ended June 30, June 30 IN MILLIONS 2017 2016 Change 2017 2016 Change Net income (loss) $117.1 $349.2 $(232.1) $(3.3)
Slide 27: Financial Tables: Non-GAAP Reconciliation
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Slide 28: Laureate Education Inc
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