Laureate Education, Inc. · NASDAQ:LAUR
Laureate Education — The Baird 2017 Global Consumer, Technology & Services Conference
28 slides from Laureate Education's conference presentation, Jun 7, 2017
Slide 1: Company Presentation
Company Presentation June 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 Performance Highlights
FINANCIAL PERFORMANCE HIGHLIGHTS © 2017 Laureate Education, Inc. | Confidential & Proprietary 11
Slide 12: 2016 Financial Performance Highlights
2016 Financial Performance Highlights 4th Quarter 2016 Full Year 2016 Adj. Adj. Revenue Revenue EBITDA EBITDA $1.2B $4.2B $285M $766M +8% +6% Organic constant +34% Organic constant +12% currency growth Organic constant currency growth Organic constant currency growth currency growth Total Enrollment
Slide 13: Q1 2017 Financial Performance Highlights
Q1 2017 Financial Performance Highlights 1st Quarter 2017 Adj. Revenue EBITDA $856M $49M +3% Organic constant +22% currency growth Organic constant currency growth 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
Slide 14: 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 15: 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
Slide 16: 2017 Outlook & Strategic Operating Review
2017 OUTLOOK & STRATEGIC OPERATING REVIEW © 2017 Laureate Education, Inc. | Confidential & Proprietary 16
Slide 17: FY 2017 Guidance
Guidance as of May 11, 2017, provided during Q1 2017 Earnings Call. Laureate is FY 2017 Guidance not reaffirming or updating this guidance as of the time and date of this presentation. Total Enrollment Revenue 4.5% - 6.0% 2.0% - 3.5% growth on an organic organic growth constant currency basis Adjust
Slide 18: Laureate Roadmap To Achieve Financial Priorities
Guidance as of May 11, 2017, provided during Q1 2017 Earnings Call. Laureate is Laureate Roadmap To Achieve Financial Priorities not reaffirming or updating this guidance as of the time and date of this presentation. 2017 Stated Financial Priorities Accelerator Plan – Launched in Q2 2017 Focus on fr
Slide 19: 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. 10 countries account for ~85% of revenues 15 countries account for ~15% of revenues – 8 – 1
Slide 20: Company Goals and Expected Impact on Outlook
Guidance as of May 11, 2017, provided during Q1 2017 Earnings Call. Laureate is Company Goals and Expected Impact on Outlook not reaffirming or updating this guidance as of the time and date of this presentation. Accelerator Guidance for 2017 Accelerator Plan Ramp-up/Timing 4.5% - 6.0% + 1.0 - 2.0 p
Slide 21: Appendix
APPENDIX © 2017 Laureate Education, Inc. | Confidential & Proprietary 21
Slide 22: FY 2016 Enrollment by Segment
FY 2016 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 c
Slide 23: FY '16 vs. FY '15 Revenue & Adj. EBITDA Bridge
FY ’16 vs. FY ’15 Revenue & Adj. EBITDA Bridge FY ’16 vs. FY ’15 Laureate Revenue Bridge FY ’16 Performance Highlights ($ in USD millions) $258.7 FY ’16 New Enrollments increased 1% and Total $4,291.7 +6% Enrollments grew 3% versus prior year on an organic $4,244.2 $(180.4) $(125.8) basis (excludi
Slide 24: 1Q 2017 Enrollment by Segment
1Q 2017 Enrollment by Segment • New Enrollments for Q1 2017 increased 4% and Total Enrollments grew 3% versus Q1 2016 on an organic basis (excluding 2016 divestitures(1)) and adjusted for timing of the intake in Peru related to the floods in that country +4% New and Total Enrollment growth, adjusted
Slide 25: Q1 '17 vs. Q1 '16 Revenue & Adj. EBITDA Bridge
Q1 ’17 vs. Q1 ’16 Revenue & Adj. EBITDA Bridge Q1 ’17 vs. Q1 ’16 Laureate Revenue Bridge Q1 ’17 Performance Highlights ($ in USD millions) $27.8 The first quarter represents the largest enrollment $906.5 +3% $(3.3) intake for our Southern Hemisphere institutions, but $855.9 $(75.1) from a P&L pers
Slide 26: Foreign Currency & Asset Sales Impact on 2017 FY Guidance
Guidance as of May 11, 2017, provided during Q1 2017 Earnings Call. Laureate is Foreign Currency & Asset Sales Impact on not reaffirming or updating this guidance as of the time and date of this presentation. 2017 FY Guidance Adjusted ($ millions, rounded) Revenue EBITDA 2016 Reported Results $4,244
Slide 27: Q2 2017 Guidance
Guidance as of May 11, 2017, provided during Q1 2017 Earnings Call. Laureate is Q2 2017 Guidance not reaffirming or updating this guidance as of the time and date of this presentation. Adjusted ($ millions, rounded) Revenue EBITDA 2Q 2016 Reported Results $1,232 $308 2016 Divestitures Impact for 2Q
Slide 28: © 2017 Laureate Education, Inc. | Confidential & Proprietary
© 2017 Laureate Education, Inc. | Confidential & Proprietary 28
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