Laureate Education, Inc. · NASDAQ:LAUR
Laureate Education — Q1 2017 Earnings Presentation
26 slides from Laureate Education's earnings presentation, May 11, 2017
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: Q1 2017 Performance Highlights
Q1 2017 PERFORMANCE HIGHLIGHTS
Slide 3: Q1 2017 Financial Performance Highlights
Q1 2017 Financial Performance Highlights 4 Total Enrollment: 1,085,100 3% growth vs. Q1 2016 (Adj. Peru flood timing) New Enrollment: 227,000 4% growth vs. Q1 2016 (Adj. Peru flood timing) Revenue $856M +3% Organic constant currency growth Adj. EBITDA $49M +22% Organic constant currency growth 1st Q
Slide 4: Enrollment by Segment
Enrollment by Segment New Enrollments for Q1 2017 increased 4% and Total Enrollments grew 3% versus Q1 2016 on an organic basis (excluding 2016 divestitures(1)) and adjusted for timing of the intake in Peru related to the floods in that country 5 +4% New and Total Enrollment growth, adjusted for the
Slide 5: Q1 '17 vs. Q1 '16 Revenue & Adj. EBITDA Bridge
Q1 ’17 vs. Q1 ’16 Revenue & Adj. EBITDA Bridge 6 The first quarter represents the largest enrollment intake for our Southern Hemisphere institutions, but from a P&L perspective is seasonally low as all our institutions are out of session for some portion of the quarter (winter in the Northern Hemisp
Slide 6: Revenue & Adj. EBITDA Bridge – LatAm Segment
Q1 ’17 vs. Q1 ’16 Revenue & Adj. EBITDA Bridge – LatAm Segment 7 Q1 ’17 vs. Q1 ’16 Revenue Bridge Q1 ’17 Performance Highlights Q1 ’17 vs. Q1 ’16 Adj. EBITDA Bridge +3% +17% ($ in USD millions) ($ in USD millions) Q1 ’17 LatAm New Enrollments and Total Enrollments both increased 4% as compared to Q1
Slide 7: Revenue & Adj. EBITDA Bridge – EMEAA Segment
Q1 ’17 vs. Q1 ’16 Revenue & Adj. EBITDA Bridge – EMEAA Segment 8 Q1 ’17 vs. Q1 ’16 Revenue Bridge Q1 ’17 Performance Highlights Q1 ’17 vs. Q1 ’16 Adj. EBITDA Bridge +3% ($ in USD millions) ($ in USD millions) Q1 ’17 New and Total Enrollments both increased 6% versus Q1 ’16 on an organic basis (exclu
Slide 8: Revenue & Adj. EBITDA Bridge – GPS Segment
Q1 ’17 vs. Q1 ’16 Revenue & Adj. EBITDA Bridge – GPS Segment 9 Q1 ’17 vs. Q1 ’16 Revenue Bridge Q1 ’17 Performance Highlights Q1 ’17 vs. Q1 ’16 Adj. EBITDA Bridge +3% +17% ($ in USD millions) ($ in USD millions) Q1 ’17 New Enrollment increased 5%, while Total Enrollments decreased (6%), respectively
Slide 9: Revenue & Adj. EBITDA Bridge - GPS Segment
Q1’17 vs. Q1 16 Revenue & Adj. EBITDA Bridge - GPS Segment (Sh USO matons) $260.4 02 Q1'16 Organic” ~—-FX_——Divest Acq. Qt 17 Revenue Growth Revenue Q1 17 vs. Q1 "16 Adj. EBITDA ($n USD mations) $63.7 a | $114.2) Q1'16 Organic” FX ~—Divest/Acq. Qt "17 ‘Adj EBITDA Growth Ad, EBITDA (1) Croan Opratons
Slide 10: 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 fac
Slide 11: 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 to begin in 2H 2017, with full year run-rate realization in 2018 12 B
Slide 12: 2017 Outlook & Strategic Operating Review
2017 Outlook & Strategic OPERATING Review
Slide 13: Q2 2017 Guidance
Q2 2017 Guidance 14 1 Represents the contribution from France and Switzerland to Revenue and Adjusted EBITDA during 2016 for the second quarter of 2016 2 Based on actual FX rates for April 2017, and current spot FX rates (local currency per US dollar) of MXN 18.80, BRL 3.20, CLP 666.00, PEN 3.24, EU
Slide 14: Laureate Roadmap To Achieve Financial Priorities
Laureate Roadmap To Achieve Financial Priorities Focus on free cash flow generation Organic Growth: Rising participation rates and supply/demand balance in key markets Margin Expansion: Scale, EiP and back-office projects Hybridity Expansion: 25% goal of on-line teaching hours by end of 2019 15 2017
Slide 15: Accelerator Plan
Accelerator Plan Launched in Q2 2017 16 10 countries account for ~85% of revenues 15 countries account for ~15% of revenues 8 – 10 of these 15 countries have potential to reach scale meaningful for Laureate or can be operated as a branch of an existing market Remaining 5 – 7 countries (1) are unlike
Slide 16: Company Goals and Expected Impact on Outlook
4.5% - 6.0% growth on an organic constant currency basis Revenue Company Goals and Expected Impact on Outlook 17 CapEx Note: An outlook for 2017 net income and reconciliation of the forward-looking 2017 Adjusted EBITDA outlook to net income are not being provided as the company does not currently ha
Slide 17: Company Goals and Expected Impact on Outlook
Company Goals and Expected Impact on Outlook Guidance for 2017 Accelerator Plan Ramp-up/Timing 4.5% - 6.0% Revenue growth on an organic constant currency basis. + 1.0 - 2.0 pts from price/volume 8.0% - 10.0% 1.5% - 2.0% incremental Adjusted EBITDA growth on an organic margin improvement or 2018 run-
Slide 18: 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 in Southern Hemisphere; Q3 in Northern Hemisphere) Q1 represents the large intake for our Southern Hemisphere institu
Slide 19: 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) 20 Revenue Seasonality Adj. EBITDA Seasonality New Enrollments Seasonality Factors Affecting Seasonal
Slide 20: Financial Tables
Financial Tables 21 Note: Dollars in millions, except per share amounts, and may not sum to total due to rounding
Slide 21: Financial Tables
Financial Tables 22 Note: Dollars in millions, except per share amounts, and may not sum to total due to rounding
Slide 22: Financial Tables
Financial Tables 23 Note: Dollars in millions, except per share amounts, and may not sum to total due to rounding
Slide 23: Financial Tables
Financial Tables 24 Note: Dollars in millions, except per share amounts, and may not sum to total due to rounding
Slide 24: Financial Tables
Financial Tables 25 Note: Dollars in millions, except per share amounts, and may not sum to total due to rounding
Slide 25: Financial Tables – Non-GAAP Reconciliation
Financial Tables ‘Non-GAAP Reconciliation vations Tia 216i Netiow 3 ana s GES G8 Ph: Equity in net os of afitits, net of tx = 93 @3) “Iacome tax (benefit expense er) 00 a7) "Toss fom continsing operations befor come tes and equity minet low ofaifiates (47) @22) G52) Phas: Foreign cuency exchange gai
Slide 26: Laureate Education Inc
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