Somos Educação — Abril Educação — Merger or Acquisition (July 2012)

5 slides from Somos Educação's merger presentation, Jul 20, 2012

Slide 1: Acquisition of Red Balloon English for Children and Teenagers
Acquisition of Red Balloon English for Children and Teenagers July 20, 2012
Slide 2: Strategic Rationale
Strategic Rationale The percentage of Brazil’s population proficiency in English is exceptionally low – between 2 1. and 3% (estimated) Growing demand for English learning thanks to the globalization of Brazilian companies, the 2. hosting of important international events in the next few years, espe
Slide 3: Transaction Details
Transaction Details 1. Total value of the acquisition of 51%: R$29.6 million (signing and closing) Capital injection of R$6.0 million, R$3.1 million from CAEP and the remaining part from 2. the sellers Estimated EBITDA in 2012 = R$8.5 million, with an EBITDA margin of 39% 3. Implicit multiple of 6.8
Slide 4: Financial and Operating Data
Financial and Operating Data (R$ mm) 2011e 2012e Net revenue 18.9 22.1 Costs and Expenses 11.8 13.6 EBITDA 7.1 8.5 % Margin 37% 39% • Minimum dividend distribution of 35% 2011 Number of students 12.9 Number of schools 34 (26 franchise 8 owned) Non-audited information. Note: Estimates were based on d
Slide 5: Investor Relations
Investor Relations ri@abrileducacao.com.br www.abrileducacao.com.br/investors Legal Disclaimer This document must not be considered a recommendation for investment in the Units. Before investing in the Units, the investors should conduct their own analysis and valuation of the Company, its business