Slide 1: Company Presentation May 2011
Company Presentation May 2011
Slide 2: Forward-Looking Statements
Forward-Looking Statements Except for historical statements and discussions, this discussion consists of "forward-looking statements." All plans, projections, and future estimates are forward-looking statements, which in some, but not all, cases, are identified by words such as "anticipate," "estima
Slide 3: Proprietary information notice
® Contains proprietary information. Not for distribution without specific written authorization from Learning Tree International.
Slide 4: Who Is Learning Tree?
Who Is Learning Tree? • Learning Tree International, founded in 1974, is the world’s leading vendor- independent Information Technology and Management training company • Corporate C t and d governmentt clients li t train t i their th i managers and IT professionals at Learning Tree Education Centers
Slide 5: Third-party management and IT training: Large, highly fragmented markets
Third-party management and IT training: Large, highly fragmented markets • Management Training—$73 billion worldwide market • IT Training—$22 billion worldwide market • No single competitor with significant market share • Instructor-led training comprises more than 2/3 of spend on formal training Pe
Slide 6: Skills Gaps Have Specific Drivers
Skills Gaps Have Specific Drivers • Information Technology skills gap drivers — Waves of new technology – typically 15 – 20-year span of influence — Continually expanding skill sets required of IT professionals — Ever-broadening IT workforce • Management g Training g skills gap g p drivers — Evolvin
Slide 7: Market Landscape—IT Training
Market Landscape—IT Training IT Training ent or Independe Colleges and Universities Vendo SkillSoft Global Technology ATECs / CTECs ependent Vendors (e.g., New Horizons, Global Knowledge, (e.g., IBM, ExecuTrain, Productivity Point and many Oracle, SAP, HP, others) Sun and many Vendor De others) Nume
Slide 8: Market Landscape—Management Training
Market Landscape—Management Training Management Training or-Profit For-profit post-secondary Small and large education p providers Fo independent of management management training courses companies Not-For-Profit Non-profit universities and Professional and colleges offering industry associations ex
Slide 9: Learning Tree Market Strengths
Learning Tree Market Strengths • Global presence—approximately half of revenues outside US • Brand recognition g and multi-tiered sales and marketing g • Extensive, blue chip customer base • Impeccable client retention • Breadth B d h andd quality li off proprietary i course library lib • Vendor ind
Slide 10: Longstanding Global Presence
Longstanding Global Presence Los Angeles Washington, D.C. Ottawa New York -- City with Learning Tree Education Center -- City where Learning Tree delivered on-site course Tokyo Toronto Chicago Paris Stockholm London ® Contains proprietary information. Not for distribution without specific written au
Slide 11: Multi-tiered Sales and Marketing
Multi-tiered Sales and Marketing Customers Learning Tree Direct Sales WW Program program managers Managers Telemarketing Locall Program L P program managers Managers Direct Marketing • Mail Line managers Managers • Email • Web HR Professionals professionals Training managers Managers Fi t li S First
Slide 12: Blue Chip Customer Profile
Blue Chip Customer Profile US Clients International Clients All trademarks are owned by their respective organizations. ® Contains proprietary information. Not for distribution without specific written authorization from Learning Tree International.
Slide 13: Large Base of Loyal Repeat Customers
Large Base of Loyal Repeat Customers • At the organizational level: — More than 8,200 organizations served in FY2010 — Client base developed over 36 36-year year history — Diversity of revenues across many clients, industries and geographies — Largest client is less than 4% of revenues — All 100 lar
Slide 14: Proprietary, Growing Library of Course Titles
Proprietary, Growing Library of Course Titles # of Curriculum Titles Windows Systems and Exchange 18 Business Intelligence and SQL Server 15 Visual Studio and .NET Development 15 SharePoint, Access and Office 18 RDBMS and Oracle Databases 10 Web Development, Adobe and XML 15 146 IT Security 10 Cours
Slide 15: Comprehensive Delivery Model
Comprehensive Delivery Model Events in Education Centers Events at customer locations (“Public” courses) • Marketing (“On-site” courses) • Content • Systems • Instructors • Operations 70% of Revenues 30% of Revenues Additional Participants Join Classroom Events Online using AnyWare™ ® Contains propr
Slide 16: Proprietary, Highly Effective Delivery Technology
Proprietary, Highly Effective Delivery Technology • Patented MagnaLearn™ Instructional Enhancement System — Superior presentation capability allows active instructor manipulation p and enhancement of course content — Visual reinforcement improves participant attention span and increases key concept
Slide 17: AnyWare: Live On-line Interface Brings On-Line Attendees into Classrooms
AnyWare™: Revolutionary Live On-line Interface Brings On-Line Attendees into Live Classroom Sessions • 7,500 on-line attendees as of March 31, 2011 • On-line attendees use Internet browser to participate in live classroom instructor-led training — Real-time audio and video connection to classroom —
Slide 18: The AnyWare Classroom Portal
The AnyWare™ Classroom Portal ® Contains proprietary information. Not for distribution without specific written authorization from Learning Tree International.
Slide 19: Highest Quality Worldwide Instructor Team
Highest Quality Worldwide Instructor Team • 620 highly qualified instructors — All are part-time, used “as needed” — Exclusive teaching agreements with Learning Tree — “Real world” IT & management professionals — Average over 26 years of practical experience • Teach an average of 9 events per year •
Slide 20: Experienced Management Team
Experienced Management Team Years With Years Of Name Title Company Experience Nick c Sc Schacht ac t CEO C Oaand d President es de t 9 30 Bob Waldron Chief Financial Officer 4 38 Magnus Nylund Chief Information Officer 17 17 David Booker Chief Operating p g Officer 17 26 Jonathan Alcorn VP, Marketin
Slide 21: Revenue
Revenue 200 175 150 ons 125 US $ in millio 100 75 50 25 0 2006 2007 2008 2009 2010 Fiscal Year (ends 9/30) ® Contains proprietary information. Not for distribution without specific written authorization from Learning Tree International.
Slide 22: Operating Income
Operating Income 20 15 ons 10 US $ in millio 5 0 -5 2006 2007 2008 2009 2010 Fiscal Year (ends 9/30) Note: FY09 figures include one-time G&A provision of $4.2 million in anticipation of settlement of a contract dispute ® Contains proprietary information. Not for distribution without specific written
Slide 23: Business Momentum—the Right Time to Invest in Growth
Business Momentum—the Right Time to Invest in Growth • FY 2007-2008 experience with growth initiatives — Steady, accelerating revenue growth — Consistent, material profitability improvements — Growth initiatives contributed as predicted • Recession interrupted growth plans — Conservative fiscal post
Slide 24: Three Proven Revenue Growth Initiatives
Three Proven Revenue Growth Initiatives • Initiative 1: Significantly increase rate of introduction of new course titles — Resume title growth initiative interrupted by recession — Accelerate expansion into new topic areas • Initiative 2: Resume g growth of on-site sales force — Sales force growth a
Slide 25: Summary Operating Model
Summary Operating Model Potential(2) 2006 2007 2008 2009(1) 2010 Long Term Revenues 100% 100% 100% 100% 100% 100% Gross Profit 51% 56% 58% 55% 54% 60-62% Course Development 7% 5% 5% 6% 6% 5% Sales and Marketing 28% 25% 24% 24% 24% 26% General & Administrative 18% 18% 18% 24% 20% 12% Operating Income
Slide 26: Investment Opportunity
Investment Opportunity • The world’s leading vendor-independent Information Technology and Management training company — No dependence p on g government funding g - all tuition p paid by y employers p y — Outstanding brand name built over 37 years • Revenue growth opportunities as world economies re
Slide 27: Productivity Through Training
Productivity Through Training® Learning Tree International 1805 Library Street Reston, Virginia USA 20190 +1.703.709.9119 www.learningtree.com ® Contains proprietary information. Not for distribution without specific written authorization from Learning Tree International.