6. History and Current Status Begin National Expansion 1970/96 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Turnaround and Preparation for IPO Strong Organic Growth National Leadership North and Northeast: subsidiaries for profit status Main subsidiary with for profit status (Feb/07) (Accounting and Management Systems) IPO (July/07) GP (May/08) Efficiency Gains and Consolidation CAGR of 25.7% - 1997/2005 (Vs 13.5% for Brazil) Asset Light Model: Long Term Leasing Agreements (Campuses) 1H09 Undergraduate Students (in thousand) Early Stages Corporate Presentation 2Q09
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14. Financial Highlights 60 (R$ million) 16% 20% 20% 124 164 762 829 851 (4) 73 229 (48) 11% 56 96 95 166 12% 7% (1) Adjusted in 2007, to the payment of taxes in January 07 (SESES became for profit in February 2007), Law 11.638 in 2008 and one-off expenses in 2008 and 2009 (2) Excluding goodwill amortization from acquisitions and one-ff expenses 980 98 10% 182 19% 72 191 476 513 51 61 11% 12% 92 106 19% 21% 39 44 256 224 Corporate Presentation 2Q09 Adjusted Net Income 2 2005 2006 2007 EBITDA Margin ex-rental EBITDA ex-rental 1 Net Revenue 1 Net Cash 23 Adjusted EBITDA 1 Adjusted EBITDA Margin 1H08 1H09 2008
16. Sector Overview – Significantly Untapped Demand Fonte: INEP/MEC Post-secondary Enrollments – (Unesco – 2007, million) Gross Enrollment Rate (Unesco - 2007) Largest market in Latin America, with low penetration rates and increasing demand for qualified labour Post-secondary Institutions in Brazil (units) Total Enrollments (million) Corporate Presentation 2Q09 High Growth Potential
17. Sector Overview: Highly Fragmented Market Up to 499 Top10 largest post-secondary institutions account for less than 25% of total enrollments 1 Top 10 Non-Government Institutions Market Share Based on Number of Enrolled Students Non-Government Institutions (number & Size) 2K < 4.9K 1,001 687 204 Number of institutions 500 < 1.9K 5K or more 140 Number of students 22.6% 77.4 % 10+ Others Corporate Presentation 2Q09 High Potential for Consolidation 2,032 Institutions 3.5 million enrollments
18. Undergraduate Student Base and Revenue Growth Students (thousand) Net Revenue (R$ million) CAGR: 8.5% CAGR: 8.7% + 7.9% + 4.7% Corporate Presentation 2Q09
19. Cost of Service and SG&A (R$ million) Cost of Services *NR = Net Revenue SG&A Gross Margin : 39.3% Gross Margin : 38.3% R$111.2 M R$28.4 M R$35.3 M R$105.2 M Corporate Presentation 2Q09
20. Adjusted EBITDA and Net Income (R$ million) Adjusted Net Income 2 Adjusted EBITDA 1 1 - Adjusted in 2007 to the payment of taxes in January 2007 , Law 11.638 in 2008 and to the one-off expenses in 2008/2009 2 - Excluding goodwill amortization from acquisitions and one-off expenses 7.3% 11.6% 11.1% 10.0% 10.7% 11.9% Corporate Presentation 2Q09
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22. IR Contacts and Disclaimer Visit our website: www.estacioparticipacoes.com Investor Relations Team: Lorival Luz – CFO Daniella Guanabara – [email_address] Fernando Santino – [email_address] e-mail: [email_address] Phone: (55) 21 3311 9789 / 9790 / 9791 Fax: (55) 21 3311 9700 Disclaimer: This presentation may contain forward-looking statements concerning the industry’s prospects and Estácio Participações’ estimated financial and operating results; these are ere projections and, as such, are based solely on the Company management’s expectations regarding the future of the business and its continuous access to capital to finance Estácio Participações’ business plan. These considerations depend substantially on changes in market conditions, government rules, competitive pressures and the performance of the sector and the Brazilian economy as well as other factors and are, therefore, subject to changes without previous notice. We are a holding company, and our only assets are our interests in SESES, STB, SESPA, SESCE, SESPE and IREP, and we currently hold 99.9% of the capital stock of each of these subsidiaries. Considering that the Company was incorporated on March 31 2007, the information presented herein is for comparison purposes only, on a proforma unaudited basis, relative to the first three months of 2007, as if the Company had been organized on January 1 2007. Additionally, information was presented on an adjusted basis, in order to reflect the payment of taxes on SESES, our largest subsidiary, which from February 2007, after becoming a for-profit company, is subject to the applicable taxation rules applied to the remaining subsidiaries, except for the exemptions arising out of the PROUNI – University for All Program (“PROUNI”). Information presented for comparison purposes should not be considered as a basis for calculation of dividends, taxes or for any other corporate purposes. Av. Embaixador Abelardo Bueno, 199 – Office Park – 6 th floor Cep 22775-040 Barra da Tijuca - Rio de Janeiro Corporate Presentation 2Q09