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Covista — Adtalem Global Education — Investor Day (May 2018)

71 slides from Covista's investor day presentation, May 9, 2018

Slide 1: Adtalem Global Education Investor Day
ADTALEM GLOBAL EDUCATION Investor Day May 9, 2018
Slide 2: Safe Harbor & Non-GAAP Financial Measures
©2018 Adtalem Global Education Inc. All rights reserved. 2 \ Safe Harbor & Non - GAAP Financial Measures Certain statements contained in this presentation concerning Adtalem Global Education’s future performance, including those statements concerning expectations or plans, may constitute forward - l
Slide 4: Significant progress on priorities since 2017 Investor Day
©2018 Adtalem Global Education Inc. All rights reserved. 4 \ We have made significant progress on our priorities to transform Adtalem since our 2017 Investor Day Successful recovery/ business continuity from damaging hurricanes in the Caribbean DVU transaction announced in Q2 FY18 Focused ATGE aroun
Slide 5: Operational initiatives support strategic priorities for Fiscal 2018
©2018 Adtalem Global Education Inc. All rights reserved. 5 \ Our operational initiatives support our strategic priorities for Fiscal 2018 1 Heighten the culture of student - centric focus and academic excellence as positioning for all Adtalem institutions 2 Return to organic growth while continuing
Slide 6: Pursuing initiatives in verticals where we have the right to win
©2018 Adtalem Global Education Inc. All rights reserved. 6 \ We are pursuing initiatives in the verticals where we have the right to win • Expand American University of the Caribbean through international branch campus with non - U.S. citizen recruitment • Expand Medical Education Readiness Program
Slide 7: Achieving strategic goals through focused differentiation and efficiency
©2018 Adtalem Global Education Inc. All rights reserved. 7 \ We will achieve our strategic goals through focused differentiation and efficiency We have made progress in the last year focusing our attention on specific, growth - oriented verticals, pushing for further differentiation (e.g., payer sou
Slide 9: Serving Our Students Panel
9 Serving Our Students Panel ©2018 Adtalem Global Education Inc. All rights reserved . Lisa Sodeika Senior Vice President Corporate Relations James White Chair Adtalem Board of Directors Donna Jennings Senior Vice President Human Resources Catherine Anderson Vice President Strategy & Innovation MODE
Slide 12: Investment Thesis
©2018 Adtalem Global Education Inc. All rights reserved. 12 \ Investment Thesis • Mission - based organization focused on changing students’ lives through education • Large addressable markets with attractive supply/demand imbalances • Most diversified programmatic offerings in the sector offered th
Slide 13: Adtalem Global Education company overview
©2018 Adtalem Global Education Inc. All rights reserved. 13 \ FY14 FY15 FY16 FY17 • Operates eight educational institutions and companies across three verticals: Medical & Healthcare, Professional Education and Technology & Business • Provides educational services primarily across the U.S., Brazil a
Slide 14: DeVry University Transition
©2018 Adtalem Global Education Inc. All rights reserved. 14 \ DeVry University Transition • On December 4, 2017, Adtalem announced its sale of DeVry University and its Keller Graduate School of Management • Stock purchase agreement to transfer ownership to Cogswell Education LLC, a California - base
Slide 15: Improving the financial performance of the organization
©2018 Adtalem Global Education Inc. All rights reserved. 15 \ • Restarting organic revenue growth − Continued supply/demand imbalances expected to drive ongoing segment revenue growth within Medical & Healthcare − New market/vertical opportunities and geographic expansion to fuel Professional Educat
Slide 16: Financial Diversification
©2018 Adtalem Global Education Inc. All rights reserved. 16 \ 54% 46% 73% 27% Financial Diversification Operating Income Mix by Vertical Estimated Change in Government Funding Continued diversification of operating income due to expected growth in our Professional Education and Technology & Business
Slide 17: Segment Analysis: Medical & Healthcare
©2018 Adtalem Global Education Inc. All rights reserved. 17 \ • Continued supply/demand imbalances expected to drive ongoing segment revenue growth, with lower capital requirements • Potential upside revenue growth from partnerships with traditional education providers and international expansion •
Slide 18: Segment Analysis: Professional Education
©2018 Adtalem Global Education Inc. All rights reserved. 18 \ • ACAMS growth will be driven by international expansion and new product launches • ACAMS continues to experience healthy membership growth with new opportunities in custom programs for large global banks • Becker CPA remains the market l
Slide 19: Segment Analysis: Technology & Business
©2018 Adtalem Global Education Inc. All rights reserved. 19 \ • New student growth is expected across the ATB institutions • Segment cash flow generation continues to increase as ATB operations achieve scale • Executed name change for DeVry Brasil institutions to Wyden • New product offering in Damá
Slide 20: Segment Analysis: U.S. Traditional Postsecondary
©2018 Adtalem Global Education Inc. All rights reserved. 20 \ • Segment is currently comprised of Carrington College • Near - term focus remains offsetting revenue declines with cost - cutting measures, while redesigning program and service offerings (e.g., nursing expansion in certain existing mark
Slide 21: FY22E Financial Targets
©2018 Adtalem Global Education Inc. All rights reserved. 21 \ FY22E Financial Targets Key Metrics FY18 - 22E Strategic Plan Revenue 5% - 7% CAGR EBITDA 10% - 13% CAGR Tax Rates 18% - 22% CapEx/Revenue 3% - 4% ROIC 12% - 14% Financial Overview
Slide 22: Revenue and EBITDA Bridge
©2018 Adtalem Global Education Inc. All rights reserved. 22 \ Revenue and EBITDA Bridge Adtalem Revenue Bridge 1 Adtalem EBITDA Bridge 1 $0 $500 $1,000 $1,500 $2,000 $1,343 M $140 - 180M $85 - 100M $90 - 120M $15 - 30M $1,650 - 1,750M $0 $100 $200 $300 $400 $500 $291M ($ in Millions) $60 - 70M $45 -
Slide 23: Capital Allocation
©2018 Adtalem Global Education Inc. All rights reserved. 23 \  Enhance academic quality and differentiate through innovation  Programmatic expansion and new product development across the portfolio  Chamberlain new program and campus growth  Expansion of Ibmec and Damásio|Unifavip within Adtalem
Slide 26: Technology & Business vision and vertical strategy
©2018 Adtalem Global Education Inc. All rights reserved. 26 \ Vision: to become a leading global provider of world - class quality technology and business education, leveraging the strength of an integrated network of faculty and students • American universities are recognized globally for academic
Slide 27: Age demographics favor emerging countries for higher education
©2018 Adtalem Global Education Inc. All rights reserved. 27 \ Positive age demographics favor emerging countries and create larger markets for higher education operators % of Elderly (65+ Years Old) Citizens by Country • GDP per capita is highly correlated to infrastructure quality • Growth in emerg
Slide 28: Current Market and Segmentation in Brazil
©2018 Adtalem Global Education Inc. All rights reserved. 28 \ • There are 6M students in private institutions, corresponding to 75% of total enrollments • Adtalem diversification strategy led it to operate in the three different tiers Source: INEP data, 2016 Source: INEP data, 2016 ¹ Potential pool
Slide 29: ATB national footprint through four brands
©2018 Adtalem Global Education Inc. All rights reserved. 29 \ ATB’s right to win is demonstrated by its fast and relevant penetration across the country, achieved through subsequent successful inorganic initiatives, its pricing strategy and a consistent brand positioning Adtalem Educacional do Brasi
Slide 30: Premium Positioning and Distance Learning opportunities
©2018 Adtalem Global Education Inc. All rights reserved. 30 \ Premium Positioning Opportunity - Ibmec SP Distance Learning – Damásio|Unifavip  Ibmec SP was successfully launched to deliver a premium education experience through undergraduate and graduate programs  Focused on innovation and leaders
Slide 31: Technology & Business key growth drivers and positioning
©2018 Adtalem Global Education Inc. All rights reserved. 31 \ The Technology & Business vertical will provide superior academic experience across countries in which ATGE has a right to win; product differentiation through an integrated model will drive growth Key Growth Drivers Our Positioning Stron
Slide 33: Medical & Healthcare opportunities and growth mind-set
©2018 Adtalem Global Education Inc. All rights reserved. 33 \ Opportunity to: • Leverage the institutions in the portfolio by launching innovative inter - professional education • Harness expertise and resources to evaluate expansion into international markets • Expand on success in the markets we c
Slide 34: Medical & Healthcare Vertical Institutions
©2018 Adtalem Global Education Inc. All rights reserved. 34 \ Medical & Healthcare Vertical Institutions • Chamberlain offers undergraduate and graduate degrees in nursing and health professions • Chamberlain serves a diverse student population; its pre - licensure BSN program enrolls twice as many
Slide 36: Demand for Nursing Education
©2018 Adtalem Global Education Inc. All rights reserved. 36 \ Demand for Nursing Education Medical & Healthcare RN Age Distribution 18-25 25-39 40-64 65+ 4% 4% 58% 33% 1 Source: Bureau of Labor Statistics Occupational Outlook Handbook 2 Source: Campaign for Action, https://campaignforaction.org/wp -
Slide 37: Chamberlain broad geographic presence
©2018 Adtalem Global Education Inc. All rights reserved. 37 \ Columbus Irving Troy Las Vegas Houston Charlotte Atlanta North Brunswick Sacramento Pearland Jacksonville Miramar Cleveland Indianapolis St. Louis Addison Chicago Tinley Phoenix Arlington New Orleans Broad Geographic Presence 21 Campus Lo
Slide 38: Chamberlain FY18 Program Enrollment
©2018 Adtalem Global Education Inc. All rights reserved. 38 \ Chamberlain FY18 Program Enrollment Medical & Healthcare Pre - licensure BSN competition is locally driven • Governed by individual state boards of nursing and higher education boards • Barriers to entry include clinical relationships and
Slide 39: Investment Thesis: Chamberlain University
©2018 Adtalem Global Education Inc. All rights reserved. 39 \ Investment Thesis Chamberlain University is well positioned to serve the market’s continued supply/demand imbalance in nursing, as well as achieve growth through new program offerings and market expansion Key Growth Drivers Our Positionin
Slide 41: Demand for Medical Education
©2018 Adtalem Global Education Inc. All rights reserved. 41 \ Demand for Medical Education 2030 Range Projected Total Physician Shortfall Range, 2015 – 2030 1 Total # of Applicants to US Medical Schools vs. Matriculants 2 42,231 42,268 42,741 43,919 45,266 48,014 49,480 52,549 53,042 51,680 22,986 2
Slide 42: AUC Program Overview
©2018 Adtalem Global Education Inc. All rights reserved. 42 \ Implementing rapid recovery plan post Hurricane IRMA  Most students moved back to St. Maarten for May semester; normal operation anticipated by September  Campus is in full working order  Crisis preparedness plan in place leveraging hu
Slide 43: AUC key growth drivers and positioning
©2018 Adtalem Global Education Inc. All rights reserved. 43 \ Key Growth Drivers Our Positioning Demand for U.S. medical school still outpaces supply  Established reputation as a top U.S. style international medical school with state - of - the - art facilities and global electives offered through
Slide 45: RUSM business continuity and differentiation
©2018 Adtalem Global Education Inc. All rights reserved. 45 \ • Successfully managing educational and business continuity through main + satellite campus model – Arrangement with Lincoln Memorial University in Knoxville, TN, USA allows American students to be taught on purpose built campus in US – I
Slide 46: Raising the profile of RUSM as a Caribbean-accredited provider
©2018 Adtalem Global Education Inc. All rights reserved. 46 \ Raising the profile of RUSM as a Caribbean - accredited medical education provider Medical & Healthcare Caribbean - accredited medical schools often face misconceptions around student preparedness, instructional quality, and postgraduate
Slide 47: Raising the profile of RUSM: social purpose
©2018 Adtalem Global Education Inc. All rights reserved. 47 \ Raising the profile of RUSM as a Caribbean - accredited medical education provider Towards nurturing social justice in health, RUSM is creating a path to expand professional opportunities for aspiring students who do not meet a prescripti
Slide 48: RUSM key growth drivers and positioning
©2018 Adtalem Global Education Inc. All rights reserved. 48 \ Key Growth Drivers Our Positioning Demand for slots in U.S. medical schools still outpaces their availability  Established reputation as an international medical school with an American - based curriculum, high quality U.S. clinical expe
Slide 50: Demand for Veterinary Education
©2018 Adtalem Global Education Inc. All rights reserved. 50 \ 7,286 3,922 6,783 4,400 6,769 6,600 7,071 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 10,000 19 years 18 years 2,657 2,704 2,766 3,331 3,449 3,968 4,116 4,038 4,230 4,214 4,227 4,363 5,194 5,740 5,920 6,208 6,143 6,265 6,305 6
Slide 51: RUSVM Program Overview
©2018 Adtalem Global Education Inc. All rights reserved. 51 \ • State - of - the - art campus to enhance student education; developing new research and pathology building and Academic Hub • Accredited by the American Veterinary Medical Association (AVMA), the gold - standard for institutions offerin
Slide 52: RUSVM key growth drivers and positioning
©2018 Adtalem Global Education Inc. All rights reserved. 52 \ Ross University School of Veterinary Medicine is well positioned to serve the market’s continued supply/demand imbalance, as well as achieve growth through its differentiated offering and international recruiting efforts Key Growth Driver
Slide 55: Carrington College Update
©2018 Adtalem Global Education Inc. All rights reserved. 55 \ Carrington College Update Key Facts Footprint • Carrington’s regional footprint is supported by online capabilities • There are 19 locations in eight Western states +5 ,500 Students 22 Programs Founded in 1967 +65 ,000 Alumni Acquired in
Slide 56: Allied health programs are in high demand
©2018 Adtalem Global Education Inc. All rights reserved. 56 \ Allied health programs are in high demand • According to The Association of Schools of Allied Health Professionals (ASAHP), estimates have suggested that as much as 60% of the U.S. healthcare workforce may be classified as allied health •
Slide 57: Investment Thesis: Carrington College
©2018 Adtalem Global Education Inc. All rights reserved. 57 \ Investment Thesis Carrington College serves an important and growing allied health market, offering in - demand programs with strong student outcomes in locations with favorable market dynamics and opportunities for growth Key Growth Driv
Slide 59: Professional Education Market is Vast and Highly Fragmented
©2018 Adtalem Global Education Inc. All rights reserved. 59 Current State: Market Overview The Professional Education Market is Vast and Highly Fragmented ATGE has the opportunity to become a market leader through targeted expansion of offerings and geographies Accounting/ Finance GRC Healthcare Inf
Slide 60: Future State Vision for the Vertical
©2018 Adtalem Global Education Inc. All rights reserved. 60 Future State Vision for the Vertical • To be the preferred learning partner for aspiring professionals and the professions they serve: – Leadership through diversified offerings across industry clusters globally – Excellence through highly
Slide 61: Markets & Areas of Opportunity
©2018 Adtalem Global Education Inc. All rights reserved. 61 Markets & Areas of Opportunity Meaningful Expansion Into New Industries/Categories is Core to Growth Strategy Expansion opportunities evaluated across a spectrum of criteria Market Opportunity Customer Product • High stake exams, licensure,
Slide 62: Business Overview and Growth Strategies
©2018 Adtalem Global Education Inc. All rights reserved. 62 Business Overview and Growth Strategies Our Professional Education vertical today is comprised of three institutions that collectively provide global reach Becker currently serves three business verticals: Accounting CPA, Accounting CPE, an
Slide 63: Professional Education key growth drivers and positioning
©2018 Adtalem Global Education Inc. All rights reserved. 63 \ Adtalem Professional Education will be a significant contributor to overall growth in enterprise value through expansion of non - degreed education offerings globally and delivery of superior outcomes Key Growth Drivers Our Positioning Fo
Slide 66: Adtalem Global Education brand portfolio by vertical
©2018 Adtalem Global Education Inc. All rights reserved. 66 \ Adtalem Global Education brand portfolio Marketing Overview Medical & Healthcare Professional Education Technology & Business
Slide 67: Marketing Center of Excellence: three strategic pillars
©2018 Adtalem Global Education Inc. All rights reserved. 67 \ In FY18, we introduced a Marketing Center of Excellence focused on three strategic pillars Branding • Develop compelling Brand Value Proposition • Amplify the message to drive brand relevance and consideration • Identify key drivers of st
Slide 68: Simplifying organizational structure and identifying synergies
©2018 Adtalem Global Education Inc. All rights reserved. 68 \ A first priority was simplifying the organizational structure and identifying synergistic opportunities to support sustained growth Marketing Overview Key Operational/Organizational Activities Select Accomplishments • Institution and team
Slide 69: Closing Remarks Q&A
69 Closing Remarks Q&A ©2018 Adtalem Global Education Inc. All rights reserved . Patrick Unzicker Chief Financial Officer Lisa Wardell President and Chief Executive Officer
Slide 71: Non-GAAP Financial Information
©2018 Adtalem Global Education Inc. All rights reserved. 71 \ Non - GAAP Financial Information Medical & Healthcare Professional Education Technology & Business U.S. Traditional Postsecondary 2013 2017 2013 2017 2013 2017 2013 2017 Operating Income (Loss) from Continuing Operations ¹ $147M $187M $35

Adtalem Global Education — Investor Day (May 2018) on 6ix

Covista — Adtalem Global Education — Investor Day (May 2018)

Slide 1: Adtalem Global Education Investor Day

Slide 2: Safe Harbor & Non-GAAP Financial Measures

Slide 3: Lisa Wardell, President and Chief Executive Officer

Slide 4: Significant progress on priorities since 2017 Investor Day

Slide 5: Operational initiatives support strategic priorities for Fiscal 2018

Slide 6: Pursuing initiatives in verticals where we have the right to win

Slide 7: Achieving strategic goals through focused differentiation and efficiency

Slide 8: 8 ©2018 Adtalem Global Education Inc. All rights reserved.

Slide 9: Serving Our Students Panel

Slide 10: 10 ©2018 Adtalem Global Education Inc. All rights reserved.

Slide 11: Financial Overview

Slide 12: Investment Thesis

Slide 13: Adtalem Global Education company overview

Slide 14: DeVry University Transition

Slide 15: Improving the financial performance of the organization

Slide 16: Financial Diversification

Slide 17: Segment Analysis: Medical & Healthcare

Slide 18: Segment Analysis: Professional Education

Slide 19: Segment Analysis: Technology & Business

Slide 20: Segment Analysis: U.S. Traditional Postsecondary

Slide 21: FY22E Financial Targets

Slide 22: Revenue and EBITDA Bridge

Slide 23: Capital Allocation

Slide 24: Portfolio Review

Slide 25: Technology & Business

Slide 26: Technology & Business vision and vertical strategy

Slide 27: Age demographics favor emerging countries for higher education

Slide 28: Current Market and Segmentation in Brazil

Slide 29: ATB national footprint through four brands

Slide 30: Premium Positioning and Distance Learning opportunities

Slide 31: Technology & Business key growth drivers and positioning

Slide 32: Medical & Healthcare

Slide 33: Medical & Healthcare opportunities and growth mind-set

Slide 34: Medical & Healthcare Vertical Institutions

Slide 35: Susan Groenwald, President, Chamberlain

Slide 36: Demand for Nursing Education

Slide 37: Chamberlain broad geographic presence

Slide 38: Chamberlain FY18 Program Enrollment

Slide 39: Investment Thesis: Chamberlain University

Slide 40: Heidi Chumley, Executive Dean

Slide 41: Demand for Medical Education

Slide 42: AUC Program Overview

Slide 43: AUC key growth drivers and positioning

Slide 44: William Owen, Dean and Chancellor

Slide 45: RUSM business continuity and differentiation

Slide 46: Raising the profile of RUSM as a Caribbean-accredited provider

Slide 47: Raising the profile of RUSM: social purpose

Slide 48: RUSM key growth drivers and positioning

Slide 49: Sean Callanan, Dean

Slide 50: Demand for Veterinary Education

Slide 51: RUSVM Program Overview

Slide 52: RUSVM key growth drivers and positioning

Slide 53: All rights reserved.

Slide 54: U.S. Traditional Postsecondary, Donna Loraine

Slide 55: Carrington College Update

Slide 56: Allied health programs are in high demand

Slide 57: Investment Thesis: Carrington College

Slide 58: Professional Education

Slide 59: Professional Education Market is Vast and Highly Fragmented

Slide 60: Future State Vision for the Vertical

Slide 61: Markets & Areas of Opportunity

Slide 62: Business Overview and Growth Strategies

Slide 63: Professional Education key growth drivers and positioning

Slide 64: Marketing Overview

Slide 65: Adtalem Global Education brand portfolio

Slide 66: Adtalem Global Education brand portfolio by vertical

Slide 67: Marketing Center of Excellence: three strategic pillars

Slide 68: Simplifying organizational structure and identifying synergies

Slide 69: Closing Remarks Q&A

Slide 70: Appendix

Slide 71: Non-GAAP Financial Information