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: Forward Looking Statements
Forward Looking Statements ‘This presentation includes statements that express Laureate's opinions, expectations, belies, plans, objectives, assumptions orprojections regarding future events or future results andtnerefore are, or may be deemedto be, Yorward-looking statements” within the meaning oft
Slide 3: Deep Commitment to Benefitting Society: Here for Good
Deep Commitment to Benefitting Society: Here for Good 4 In April 2010, PBC recognized as a corporate form Laureate re-domiciled in Delaware in October 2015 as a Public Benefit Corporation Public Benefit Corporation (PBC) Certified B Corp Laureate is an international community of universities that en
Slide 4: Global Leader in Large and Growing Higher Education Market
Global Leader in Large and Growing Higher Education Market 5 1993 students 200+ of students are outside the U.S. 95% Went public in 80%+ Historical retention rate of Campuses in 1,000,000+ Revenue from private pay ~75% 15+ 2007 Taken private in Consecutive years of enrollment growth 25 countries 200
Slide 5: Large, Growing and Underserved Global Market
Large, Growing and Underserved Global Market 6 Strong Economic Incentives Significantly Underpenetrated by Participation (higher education participation rates (2)) Brazil Mexico China India United States (average wage premium for those with a tertiary education) United States Brazil Chile EU Increas
Slide 6: Attractive Business Model with a Track Record of Performance
Attractive Business Model with a Track Record of Performance 7 Track Record of Consecutive Enrollment Growth Consistent Constant Currency Organic Growth (students in 000’s) +14% 2014 +11% 2015 2013 +15% +12% 2016 Analysis based on historical trends. Assumes stable retention / graduation rates and co
Slide 7: Proven & Replicable Growth Model
Proven & Replicable Growth Model 8 (total enrollment ‘000s) (total enrollment ‘000s) (total enrollment ‘000s) +9% CAGR +23% CAGR +10% CAGR Selected Case Studies Student outreach New product offerings New market segments Develop new locations Optimize campus operations Leverage network benefits Growt
Slide 8: Strong Presence and Brand Recognition Across Key Markets
UNESCO Institute for Statistics Strong Presence and Brand Recognition Across Key Markets 9 Market opportunity First Peruvian institution with U.S. accreditation 19th in Washington Monthly’s top 100 “Best Colleges for Adult Learners” Among the top 3 private universities in São Paulo Chile's largest u
Slide 9: 2017 Key Financial Priorities Built on 2016 Accomplishments
2017 Key Financial Priorities Built on 2016 Accomplishments 10 Organic Growth Margin Expansion Hybridity Expansion Increased Free Cash Flow Conversion
Slide 10: Academic Priority is Continued Focus on Outcomes & Quality
Academic Priority is Continued Focus on Outcomes & Quality Third Party Research(1) 12 of 13 institutions surveyed met or exceeded local market employment benchmarks Salary outperformance of 6% -118% vs. benchmark Market Studies Joint research with IFC in Mexico and Peru Laureate graduates have great
Slide 11: 2016 Performance Highlights
2016 PERFORMANCE HIGHLIGHTS
Slide 12: 2016 Financial Performance Highlights
2016 Financial Performance Highlights 13 Total Enrollment: 1,043,200 3% growth vs. 2015 (PF for asset sales) New Enrollment: 507,700 1% growth vs. 2015 (PF for asset sales) Revenue$1.2B +8% Organic constant currency growth Adj. EBITDA $285M +34% Organic constant currency growth Revenue$4.2B +6% Orga
Slide 13: Enrollment by Segment FY'16
Enrollment by Segment FY’16 New Enrollments increased 1% and Total Enrollments grew 3% versus prior year on an organic basis (excluding asset sales) Enrollments adversely impacted by the Brazil macro environment Excluding Brazil, organic New and Total Enrollments both increased 4% as compared to 201
Slide 14: Q4 '16 vs. Q4 '15 Revenue & Adj. EBITDA Bridge
Q4 ’16 vs. Q4 ’15 Revenue & Adj. EBITDA Bridge 15 Q4 ’16 financial results benefitted, in part, by expected favorable timing impact related to shifts in the academic calendar (largely timing of revenue recognition and related profits from the 2nd and 3rd quarter to the 4th quarter) Q4 ’16 Revenue of
Slide 15: FY '16 vs. FY '15 Revenue & Adj. EBITDA Bridge
FY ’16 vs. FY ’15 Revenue & Adj. EBITDA Bridge 16 FY ’16 New Enrollments increased 1% and Total Enrollments grew 3% versus prior year on an organic basis (excluding asset sales) FY ’16 Revenue increased $259 million or 6% vs. prior year on an organic constant currency1 basis FY ’16 Adjusted EBITDA i
Slide 16: FY '16 Revenue & Adj. EBITDA Bridge – LatAm Segment
FY ’16 vs. FY ’15 Revenue & Adj. EBITDA Bridge – LatAm Segment 17 FY ’16 New Enrollments increased 2% and Total Enrollments grew 4% with strong results in Peru offset by a challenging macro economic environment in Brazil LatAm New and Total Enrollments increased 6% and 5%, respectively, excluding Br
Slide 17: FY '16 Revenue & Adj. EBITDA Bridge – Europe Segment
FY ’16 vs. FY ’15 Revenue & Adj. EBITDA Bridge – Europe Segment 18 FY ’16 vs. FY ’15 Revenue Bridge FY ’16 Performance Highlights FY ’16 vs. FY ’15 Adj. EBITDA Bridge 1 Organic Operations excludes impacts from FX, Acquisitions, and Divestitures Note: Numbers may not foot due to rounding FY ’16 New E
Slide 18: FY '16 Revenue & Adj. EBITDA Bridge – AMEA Segment
FY ’16 vs. FY ’15 Revenue & Adj. EBITDA Bridge – AMEA Segment 19 FY ’16 vs. FY ’15 Revenue Bridge FY ’16 Performance Highlights FY ’16 vs. FY ’15 Adj. EBITDA Bridge FY ’16 New Enrollments were down (7%) vs. prior year whereas Total Enrollment increased 2% New enrollment growth was impacted by the pl
Slide 19: FY '16 Revenue & Adj. EBITDA Bridge – GPS Segment
FY ’16 vs. FY ’15 Revenue & Adj. EBITDA Bridge – GPS Segment 20 FY ’16 vs. FY ’15 Revenue Bridge FY ’16 Performance Highlights FY ’16 vs. FY ’15 Adj. EBITDA Bridge FY ’16 New and Total Enrollments decreased (1%) and (5%), respectively, vs. prior year on an organic basis (excluding the sale of Switze
Slide 20: Capital Structure
Capital Structure Significant progress made on our capital structure during 2016 to prepare the company for the IPO Pro forma for the IPO and the Note Exchange, net debt was $2.8B at 12/31/16 resulting in 3.8x net leverage 21 ($ in millions) Pro forma capitalization (1) Net debt / Adj. EBITDA (3) (1
Slide 21: Capital Structure
Capital Structure * Significant progress made on our 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 Pro forma capitalization Net (Sin mifons) As of 123116 ‘As Reported | Adj
Slide 22: FY 2017 Guidance
FY 2017 Guidance 23 Total Enrollment 2.0% - 3.5% organic growth Revenue 4.5% - 6.0% growth on an organic constant currency basis Adjusted EBITDA 8.0% - 10.0% growth on an organic constant currency basis Capex 7.0% - 8.0% of organic constant currency revenue Total Class A Shares Outstanding Increase:
Slide 23: Foreign Currency & Asset Sales Impact on 2017 Guidance
Foreign Currency & Asset Sales Impact on 2017 Guidance 24 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 have sufficient data to accurately estimate the variables and i
Slide 24: 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 25: 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) 26 Revenue Seasonality Adj. EBITDA Seasonality New Enrollments Seasonality Factors Affecting Seasonal
Slide 26: 1Q 2017 Guidance
1Q 2017 Guidance 27 Seasonality impact amplified in 1Q 2017 due to floods in Peru which are expected to shift Revenue and Adjusted EBITDA from 1Q to 2Q (timing impact only) Will also affect 1Q enrollments as activity will be recognized in early April 2017 (vs. March), thus y-o-y reported enrollments
Slide 27: 1Q 2017 Guidance
1Q 2017 Guidance + Seasonality impact amplified in 1Q 2017 due to floods in Peru which are expected to shift Revenue and Adjusted EBITDA from 1Q to 2Q (timing impact only) — Will also affect 1Q enrollments as activity will be recognized in early April 2017 (vs. March), thus y-o-y reported enrollment
Slide 28: Unparalleled global higher education network
Unparalleled global higher education network 29 Brazil Universidade Anhembi Morumbi Universidade Potiguar Universidade Salvador Business School São Paulo Centro Universitário do Norte Faculdade de Desenvolvimento do Rio Grande do Sul Faculdade dos Guararapes Instituto Brasiliero de Medicina de Reabi
Slide 29: Diversified Platform Addressing Global Education Opportunities
Diversified Platform Addressing Global Education Opportunities 30 Note: Geographic revenue mix based on 12/31/16 revenues. Level of study, program and modality mix based on 12/31/16 enrollments Program diversity limits risk Focus on in-demand STEM and business disciplines – nearly 2/3rd of enrollmen
Slide 30: Superior Outcomes for Students vs. Peer Universities
Superior Outcomes for Students vs. Peer Universities (% of Laureate Mexico students that advance their socioeconomic status) JOINT RESEARCH +7 pts (% of students with a positive change in socioeconomic level) +41% (Monthly income in Peruvian Nuevo Soles) vs. Peer Universities vs. Peer Institutions M
Slide 31: Foreign Currency Exposure – 2016 Revenue
Foreign Currency Exposure – 2016 Revenue 32 2016 Currency Profile - Revenue United States 17% Brazil 16% Mexico 15% Chile 13% Peru 9% Spain 5% Other 25%
Slide 32: Financial Tables
Financial Tables 33 Note: Dollars in millions, except per share amounts, and may not sum to total due to rounding
Slide 33: Financial Tables
Financial Tables 34 Note: Dollars in millions, except per share amounts, and may not sum to total due to rounding
Slide 34: Financial Tables
Financial Tables 35 Note: Dollars in millions, except per share amounts, and may not sum to total due to rounding
Slide 35: Financial Tables
Financial Tables 36 Note: Dollars in millions, except per share amounts, and may not sum to total due to rounding
Slide 36: Financial Tables
Financial Tables 37 Note: Dollars in millions, except per share amounts, and may not sum to total due to rounding
Slide 37: Financial Tables – Non-GAAP Reconciliation
Financial Tables Non-GAAP Reconciliti Torte Taree month cade Torte year coded December 3h, December 3, INMILLIONS Tyre 2018 Change 2016 «20S Change come (los) SSS GENS S46 S 3662 3 GISHS G20 Pius Equity in net income of affiliates, net of tas 1) 4) 03, oy ey 24 Tacome tax expense (benefit) ns 361) e
Slide 38: Laureate Education Inc
EDUCATION INC sf LAUREATE HERE