Laureate Education, Inc. · NASDAQ:LAUR
Laureate Education — Deutsche Bank 2017 Leveraged Finance Conference
23 slides from Laureate Education's conference presentation, Oct 3, 2017
Slide 1: Company Presentation
Company Presentation October 2017 1
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, "forward-looking statements" within the meaning
Slide 3: Company Overview
COMPANY OVERVIEW © 2017 Laureate Education, Inc. | Confidential & Proprietary 3
Slide 4: Deep Commitment to Benefitting Society: Here for Good
Deep Commitment to Benefitting Society: Here for Good “ Laureate is an international community of universities Employers that encourages learning Communi Community ty Students without boundaries…We believe that when our Governments & Faculty students succeed, countries Governments Regulators Faculty
Slide 5: Global Leader in Large and Growing Higher Education Market
Global Leader in Large and Growing Higher Education Market Massive market opportunity $1.5T 2015 3.2B Global middle class expected to almost double in size 5.2B 2016 2028 population population 200m+ higher education students worldwide…. students …has more than doubled since 2000 1,000,000+ 95% of st
Slide 6: Large, Growing and Underserved Global Market
Large, Growing and Underserved Global Market Massive Global Market Increasing Reliance on the Private Sector (private enrollment as a % of total higher education enrollment in OECD countries (1)) $1.5T 200m+ 26% 31% 2015 higher education students 1 million students 2003 2013 (~0.5% global market sha
Slide 7: Attractive Business Model with a Track Record of Performance
Attractive Business Model with a Track Record of Performance Long-term Programs Drive Revenue Visibility Private Pay Model (3) (% of total students by program length) Private Pay Public Funding 66% 25% 33% 47% 63% 77% 100% 100% 75% 53% 1% 37% 23% < 2 years 2 years – 4 years 4 years + Bright Nord Lau
Slide 8: Proven & Replicable Growth Model
Proven & Replicable Growth Model Growth Through Leveraging Best-in-Class Operating Model Student outreach Develop new locations New product offerings Optimize campus operations New market segments Leverage network benefits Selected Case Studies (total enrollment ‘000s) 19 130 (total enro
Slide 9: Strong Presence and Brand Recognition Across Key Markets
Strong Presence and Brand Recognition Across Key Markets Rest of Mexico Brazil Chile Peru United States World Traditional campus-based programs Developed Limited public Limited public infrastructure market for online capacity Market opportunity Heavy reliance on private sector Strong gro
Slide 10: Academic Priority is Continued Focus on Outcomes & Quality
Academic Priority is Continued Focus on Outcomes & Quality Third Party Research(1) Market Studies • 12 of 13 institutions surveyed met or • Joint research with IFC in Mexico exceeded local market employment and Peru benchmarks • Laureate graduates have greater • Salary outperformance of 6% -118% adv
Slide 11: Financial Highlights
FINANCIAL HIGHLIGHTS © 2017 Laureate Education, Inc. | Confidential & Proprietary 11
Slide 12: 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 $390M +8% +22% +6% +22% Organic constant Organic constant Organic constant Organic constant currency growth (1) currency growth (1) currency growth (1) currency
Slide 13: YTD Q2 '17 vs. '16 Revenue & Adj. EBITDA Bridges – Total Company
YTD Q2 ’17 vs. ’16 Revenue & Adj. EBITDA Bridges – Total Company YTD Q2 ’17 vs. YTD Q2 ’16 Laureate Revenue Bridge YTD Q2 ’17 Performance Highlights ($ 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 $(139.7
Slide 14: Capital Structure
CAPITAL STRUCTURE © 2017 Laureate Education, Inc. | Confidential & Proprietary 14
Slide 15: Recent Capital Structure Actions
Recent Capital Structure Actions • Significant progress made to Laureate’s capital structure during 2016 to prepare the company for the IPO • Pro forma for the IPO and the Note Exchange, net debt was $2.8B at 12/31/16 resulting in 3.8x net leverage Net debt / Adj. EBITDA 6.1x 4.7x 3.8x (2) (1,2,3) F
Slide 16: Recent Capital Structure Actions
Recent Capital Structure Actions • In April 2017, the company completed a refinancing of its corporate debt capital structure, extending the maturity wall and reducing our cost of capital – The Company entered into a new $1.6 billion term loan facility, maturing in 2024, and a $385 million revolving
Slide 17: Pro-Forma Interest Savings
Pro-Forma Interest Savings • Application of IPO proceeds, conversion of Exchanged Notes to Class A common stock, and lower cost of capital on refinanced debt expected to yield approximately $118M in run- rate interest savings – Savings began in 2H 2017, with full year run-rate realization in 2018 Ru
Slide 18: Capital Structure – Latest Updates
Guidance as of August 8, 2017, provided Capital Structure – Latest Updates during Q2 2017 Earnings Call. Laureate is not reaffirming or updating this guidance as of the time and date of this presentation. On August 11, 2017 the 9.25% Replacement Senior Notes due 2019 were converted into shares of
Slide 19: Accelerator Plan
ACCELERATOR PLAN © 2017 Laureate Education, Inc. | Confidential & Proprietary 19
Slide 20: 2017 Key Financial Priorities Built on 2016 Accomplishments
2017 Key Financial Priorities Built on 2016 Accomplishments Organic Growth Hybridity Margin Expansion Expansion Increased Free Cash Flow Conversion © 2017 Laureate Education, Inc. | Confidential & Proprietary 20
Slide 21: Accelerator Plan Launched in Q2 2017
Guidance as of May 11, 2017, provided during Q1 2017 Earnings Call. Laureate is Accelerator Plan Launched in Q2 2017 not reaffirming or updating this guidance as of the time and date of this presentation. • Plan expected to provide 150 – 200 bps of margin improvement by the end of 2018 10 countrie
Slide 22: Accelerator Plan
Guidance as of August 8, 2017, provided during Q2 2017 Earnings Call. Laureate is Accelerator Plan not reaffirming or updating this guidance as of the time and date of this presentation. Process underway to exit 5 - 7 markets in EMEAA that are deemed unlikely to reach a scale that will be meaningf
Slide 23: © 2017 Laureate Education, Inc. | Confidential & Proprietary
© 2017 Laureate Education, Inc. | Confidential & Proprietary 23
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