Estácio: Estácio Day 2014 Presentation

Moment, Strategy, and Culture | Rogério Melzi

FRAMEWORK

Moment, Strategy, and

Culture

Continuing Education

Expansion

DL Strategy

Corporate Solutions

Assisted TransferUGF + UniverCidade

2014 2017 2020

Learning Systems

Priority Projects

Internationalization

Basic and High School

A/B Classes

TransformationalM&A

Reaping the Fruits Strategic Planning

Short Term Medium Term Long Term

New Fronts

1970 2008 2011 2014

3 pillars Exogenous Factors Fixed House FUTURE

FutureDisorganized

Growth Turnaround Reaping the Fruits

Management & Efficiency

Expansion & New Businesses

Differentiantion & Strategic Planning

Organizational Culture

Value Creation

Bad image & deteriorated product

Lack of standardized processes – lack of scale and quality controls

Low Morale & Credibility – Reputation??

Inflated student base

Growing external pressure (MEC & Society)

Labor tax (INSS) step-up – financial threat

Growing Pains

People

Collective construction of the New Academic Model

78 programs updated to labor market needs

Textbook material with the best chapters of

the best books (acquisition of copyrights)

Virtual library with over 2,000 titles

Tablet with textbook material included

Innovation, technology and convenience

SSC

Management System

Product Processes

Turnaround pillars

Culture & Management System

Turnaround

CompetitiveAdvantagesCompetitiveAdvantages

Positive Externalities


.4,8 94.9 92.4 123.0209.9

320.36.6%

9.4% 9.1%10.7%

15.2%

18.5%

2008 2009 2010 2011 2012 2013

EBITDA EBITDA Margin

+46.5% -2.6% +33.1% +70.7% +52.6%

Reaping the Fruits

1%

49% 48%

2% 0%0%13%

78%

8%0%

1 2 3 4 5

20092012

0%

52% 48%

0% 0%0%11%

83%

6%0%

1 2 3 4 5

20092012

CPC (Preliminar Course Concept) IGC (General Course Index)

Turnaround

CompetitiveAdvantagesCompetitiveAdvantages



Reaping the Fruits


58%60%

64% 64%

67%68%

2008 2009 2010 2011 2012 2013

56% 56%

62%65% 65%

68%

2008 2009 2010 2011 2012 2013

Student Satisfaction Employee Satisfaction

Turnaround

Vantagens Competitivas

Vantagens Competitivas

Externalidades Positivas

Externalidades Positivas

Financial ResultsFinancial ResultsNon Financial

ResultsNon Financial

Results

Reaping the Fruits


PreparationPreparation

Preparing for theFuture...

Reaping the Fruits

Growing demand

Low unemployment

Lack of qualifiedworkforce

FIES & Prouni

Competition in RJ

DL expansion

Competition more local

Few threats

Regulation as expected

Fixed house

Future Uncertainties?

More competition

Kroton + Anhanguera

New Players

Consolidators

New DL RegulatoryFramework

New Technologies

Replacementproducts

More Regulation

Society Questioning

RegulatoryFramework (FIES, Prouni, etc.)

AccomodationAccomodation

“The 20-Mile March”

Management & Efficiency

DISCIPLINED EXECUTION

Paulo Storani(Ex-BOPE)

GDO

Benchmarking

Excellence Program

Corporate Events2011

Expansion & New Businesses

SUSTAINABLE GROWTH

Carlos Britto (Ambev)

Vilfredo Schurmann


Return to Acquisitions

DL Coverage Increase


Differentiation & Strategic Planning

ACCELERATING GROWTH

José Roberto Guimarães

Roger Agnelli(Vale)

Strategic Planning

Innovation

Corporate University

Branding

Alumni


OrganizationalCulture

EDUCATE TO TRANSFORM

Fernando Henrique Cardoso

Luiza Trajano (Magazine Luiza)


3 pilares Fatores Exógenos Casa Arrumada FUTURO

Gestão & Eficiência

Expansão & Novos Negócios

Diferenciação & Plan. Estratégico

Cultura OrganizacionalDL

OrganicGrowth

DL CoverageIncrease

Academia doConcurso

EDUCON• Corp. Solutions

• Short termcourses

• ...

TransformationalM&A


A/B Classes

M&ASmall/Mid

Learning System


SP

UniSEB

Growth Waves

Conclusion

“Excessive” Growth” Turnaround

Competitive Advantages + Positive Externalities

Reaping the Fruits

Reaping the Fruits Preparing for Medium Term &

Building the Long Term

20-Mile March Responsibility

Beyond the Power Point!

Finance | Virgílio Gibbon

218 206 210 240272

316

65.0% 65.9% 66.2% 64.3%60.3% 57.1%

2008 2009 2010 2011 2012 2013

COGS*/Net Revenue

29.6%25.6% 25.9% 26.0% 25.8% 25.8%

2008 2009 2010 2011 2012 2013

2008 – 2013 RecapFinancial Indicators

64.8 94.9 92.4 123.0209.9

320.36.6%

9.4% 9.1%10.7%

15.2%

18.5%

2008 2009 2010 2011 2012 2013EBITDA EBITDA Margin Student Base

+46.5% -2.6% +33.1% +70.7% +52.6%

SG&A*/Net Revenue

*Ex-depreciação

413.3538.2

1Q13 1Q14

Net Revenues

265.3 316.1

61.578.4

1Q13 1Q14

Student Base

On-campus

DL

326.8

394.5

+20.7%+30.2%

(‘000) (R$ mn)

87.1129.4

21.1%

24.1%

15,0%

16,0%

17,0%

18,0%

19,0%

20,0%

21,0%

22,0%

23,0%

24,0%

25,0%

0

20

40

60

80

100

120

140

1Q13 1Q14

EBITDA & Margin(R$ mn)

+48.6%

Overcome premisses:

5%to 7% organic undergraudate student base growth 19 % in 1Q14On-campus average ticket to grow with inflation

10% in 1Q14

+300 bps

+19.1%

+27.5%

1Q14 Results

Expansion | Roberta Fransosi

M&As

GREENFIELDs2

3

Organic Expansion1

In cities where there is no opportunity for acquisition or

where we are already present

Plans for every region, every business division Big map with our vision for growth in Brazil for the next three years

TO BE PRESENT IN ALL MAJOR BRAZILIAN CITIES

We have a strategy and we stick to it – 2020 Vision

Market share gains & geographic expansionMarket share gains & geographic expansion

Our Strategy

NECESSITY NEEDS

EXPANSION PLAN DEVELOPMENT

PROSPECT/NEGOCIATE/

ACQUIRE

INTEGRATION &

POST AUDIT

PMOPLAN

IMPLEMENTATIOM

EXPANSION

Processes & Discipline

• Organization (structure to support the whole

process) unifying efforts from different areas

(Marketing, Operations, M&A....) view of the

whole

• Sales Force

• Courses and seats pipeline

• Greenfields pipeline

• University Centers autonomy / opportunity to

accelerate growth

Leading us to...

• Market share gains• Geographic expansion• Time to market• Exceeding targets• Sustainable results

EXPANSION

M&A GREENFIELD ORGANIC EXPANSION

INTEGRATION

EXPANSION & INTEGRATION

FINANCE & IR

Our Differential

Development of structured 3-year growth plans, considering needs, opportunities, and strategic planning (360º) view of the whole process, subsidizing decision making and investment allocation.

Use of methodology/specific tool.

1. Priority Locations development of business plan together with Regionals/Local Clusters

2. Other Clusters support in the use of methodology/specific tool; business plan validation

STANDARDIZING

WHO PARTICIPATES

AND HOW?

32 BUSINESS CLUSTERS

(“NÚCLEOS”) CONTEMPLATED

Organic Expansion

PMO

Marketing

LocationProducts

Base Forecast

Operations Real State / PPO

Physical SpaceConstruction Work

CAPEX

OperationsRegionals / Clusters

BP development

Expansion

PMOForecast & Financial

Analysis

EXPANSION PLAN

PLAN EXECUTION = OPERATIONS (CLUSTERS/UNITS)

0

2260

4299

2013.1 2013.2 2014.1

23

10

CC 3 CC 4

• 12 protocols for the opening of new institutions (2013) 12 new HEIs 12 new municipalities 60 new courses

• 6 ongoing projects to be protocolled in 2014.2 (new HEIs)

• 6 new campuses operating: Sulacap – Rio de Janeiro – RJ (2011) Via Brasil – Rio de Janeiro – RJ (2012) Angra – Angra dos Reis – RJ (2013) Teresópolis – Teresópolis – RJ (2013) Parangaba – Fortaleza – CE (2013) Bueno – Goiânia – GO (2014)

• 10 ongoing projects to open new campuses –operation beginning in 2014.2 and 2015.1

PARANGABA Case

Student Base

1.577

2.062

20132013

EBITDA & EBITDA Mg

+19,0 pp

5-year projection expected to be surpassed in the 2nd year

20%

39%

ActualBP

Greenfield

• Consolidation of a NATIONAL brand

• Entering priority locations (taking higher education to every region in Brazil)

• Prospects must be aligned with our values

• Assets with recognized academic standards

• Adequate infrastructure with expansion capacity

• Synergy gains

• Scale gains

Value Creation for Shareholders

Strategy

M&A

ATUALR$20 mn4.5K stud.

FALR$12.5 mn2.4K stud.

FATERNR$22 mn3.3K stud.

SEAMAR$21.7 mn2.7K stud.

FACSÃOLUISR$28 mn4K stud.

iDEZR$2.8 mn0.5K stud.

FARGSR$9.3 mn1.1K stud.

UNIUOLR$1.7 mn0.3K stud.

FACITECR$29 mn3.6K stud.

ASSESCR$5.8 mn0,9K stud.

UNISEBR$615.3 mn38.7K stud.

ANAC & FABECR$16.5 mn29K stud.

JAN/11 FEB/11 2014NOV/13APR/13SEP/12AUG/12AUG/12JUN/12APR/11 APR/11 APR/12

Total InvestmentR$ 784.3 million

Our Figures*• 11 acquisitions (Higher Education)• 14 new campuses• 7 new municipalities• 308 new DL centers• + than 60k new students

* Excluding Academia do Concuso (Prep Courses for Civil Service Exams)

M&A

• PLANNING

• DISCIPLINE

• FOCUS

• MANAGEMENT

• RESPECT TO PEOPLE

• TAKE ADVANTAGE FROM POSITIONING & BRAND

• SALES FORCE

PR

OV

EN

RE

SU

LTS

ATUAL (RORAIMA) Case SÃO LUIS (MARANHÃO) Case

EBITDA and EBITDA Mg EBITDA and EBITDA Mg

+9.7 pp +27.0pp +24.8pp

ActualBP

+6.1 pp +10.1 pp

2.02.5

2,93.4

5.16.0

2011* 2012 2013

0.8

3.91.9

13.7

2012** 2013

* 11 months** 4 months

12%18% 12%

22%13%

23%

# Students

5,3334,709 5,019 3,731 5,068

1% 28%16%

41%

Value Creation

M&A

Expansion supported by a structured Integration process – respecting the students, using and leveraging internal talents, getting involved with the local community, and executing with discipline

People Management of the

ChangesCulture and

values

People awareness

CommunicationOrganizational

Climate

Training

Product AcademicModel Textbook

material

DistanceLearning

Collectiveconstruction of

content

Processes andSystems

Policies Operation andRelationship

modelsStandards

Sales approachAcademic,

backoffice andteaching support

systems

IntegrationManagement

Central coordination

Internal mobilization(integration pillars)

Total alignment withrelated areas“Integrator ” as

facilitator

Attention to regulatoryaspects

SU

ST

AIN

AB

LE R

ES

ULT

S

Integration

Distance Learning | Pedro Graça

9.6

26.2

39.448.9

60.7

78.4

0

10

20

30

40

50

60

70

80

90

2009 2010 2011 2012 2013 1T14

DL Student Base(‘000)

185

504

758

940

1,167

1,508

0

200

400

600

800

1000

1200

1400

1600

2009 2010 2011 2012 2013 1T14

DL students per center( 52 active DL centers)

A very successful story, based solely on organic growth so far...

1Q14 1Q14

52 DL centers48 DL centerts16 DL centers

UNESA CoverageIncrease

• Protocol year: 2012• Authorization expected by: 2015• 49 projected visits• 2 visits done by MEC so far• 4 visits scheduled

+• Protocol year: 2011• Authorization expected by: 2H14• 16 visits projected• 16 visits done by MEC

+

... and with a strong growth path ahead.116 DLCs35.9% Coverage

52 DLCs 16.8% coverage

68 DLCs24.8% Coverage

Santa Catarina Accreditation

UniSEB appears as a high quality asset which strategically fits our operation.

The acquisition will strongly accelerate our expansion strategy, especially in the SP state.

Online

Recorded classes

Textbooks - ABDR

Question Bank

Broadcastedclasses

Proprietary books

Banco de Questões

Product integration will bring the best of both Institutions....

+

OnLine

Aulas Gravadas

Livros Próprios

Banco de Questões

... And will allow for the creation of an unique and broad product, increasing evenfurther Estácio’s competitive product differentiation

+

Online

Aulas Gravadas

Livros Próprios

Question Bank

... And will allow for the creation of an unique and broad product, increasing evenfurther Estácio’s competitive product differentiation

+

... And will allow for the creation of an unique and broad product, increasing even further Estácio’s competitive product differentiation

Integration withUniSEB

Online

Recordedclasses

Proprietarybooks

Question Bank

... And will allow for the creation of an unique and broad product, increasing even further Estácio’s competitive product differentiation

Integration withUniSEB

+

Online

Recordedclasses

Proprietarybooks

Question Bank

Fully integrated components within each other

Plan and operate the business

Support the business Back Office

Operate the business Front Office

Content Develop

mentStudent Intake

Operate DLC

Teacher Management

Plan and operate the business

Support the business Back Office

Operate the business Front Office

Content Develop

mentStudent Intake

Operate DLC

Teacher Management

X

DL Partner’s responsibility Institution’s responsibility

DL center has the responsibility for marketing efforts to support student intake

Transfer of 30% of revenues to DL center

HEI (Estácio) has the responsibility for marketing efforts to support student intake

Transfer of 20% of revenues to DL center

There are differences in the sales strategy between Estácio and UniSEB...

Sales Strategy

Location # Students Market share # Students Market Share

Maj

or

citi

es

Rio de Janeiro (RJ) 15.310 75% 108 1%

Belo Horizonte (MG) 4.344 21% 595 3%

Salvador (BA) 2.079 13% 379 2%

Natal (RN) 502 18% 92 3%

Goiânia (GO) 1.156 17% 412 6%

Sm

allc

itie

s

Rio Branco (AC) - - 1.236 27%

Jundiaí (SP) - - 1.250 49%

Pouso Alegre(MG) - - 587 24%

Santa Inês (MA) - - 572 72%

Divinópolis (MG) - - 478 31%

...which are reflected in the difference in performance both in small and large locations.

39

The change in Partner strategy already happened, generating positive results in the 1H14 intake process.

Period Enrollments Growth(YoY)

Sem Prouni

Prouni TotalWithout Prouni With Prouni

2013.1 4,126 814 4,940 - -

2013.2 1,278 170 1,448 - -

2013.1 + 2 5,404 984 6,388 - -

2014.1 6,521 -

6,521 58% 32%

2014.2 1,645 202

1,847 29% 28%

2014.1 + 2 8,166 202 8,368 51% 31%

2013

2014

CADE’s approval and

closing(until June/14)

Aug/14 or Jan/15

Migrate DLCs to Estácio’s campuses

TBD

Begin intake in migrated DLCs in the online modality (SAI/Webaula)

DLC to DLC “Big Bang”: SIA Veterans/ WebAula + SIA Freshmen/WebAula

Block 1 Block 2 Block KBlock 3 ...

Phased deployment DLC per DLC: continuos improvement in the migration process – risk and student impact mitigation

Converge to Estácio’s system: SAI / Webaula / SAP

Integration planning is already in its advanced stages and foresees the use of Estácio’s technological platforms

Continuing Education | Marcos Noll

Context

• Accelerate growth in the core business of Higher Education

• Transition from Higher Education to Education for Adults

2020 StrategicPlanning 2020 StrategicPlanning

Seize market opportunities

Diversify sources ofrevenue

44

Continuing Education and New Businesses Office

Expand our presence in Education for Adults

Increase our role outside of our core business

Enter new segments in the education sector

(Graduate, Short Term, Prep Courses) (Corporate Solutions, Vocational Courses)

Mission

New modelPartnership model

G. PhorteCentral PósRestructure

BranchesDL

PlataformPortfolioPartners

SEES ProjectOpportunities

ProspectionChannelsOperation

IntakeAcademicOperationExpansion

Six Fronts



BranchesDL





Six Fronts

FRONT 1

Strategic View

Make quality graduate programs available in a large scale

Generate relevant results Strenghten Institution’s image Test new ideas (experimenting)

Efficient processesEffective communication

Compatible servicesAdequate conditions

Operational Quality

New methodologyNew elements

Converged formatCompetitive advantages

New Model

ContentProfessorsDistribution

Aggregating Platform

Most relevant graduate institution of the country in terms of impact and market share

The new graduate course model was built after an extensive survey with grad students, prospects, and recent graduates...

FRONT 1

New Generation of theGraduate Segment

• Students want more dynamic classes; also want to take more part in them...

• Students would like to see real case studies and current topics...

• Students have more than 2.8 hours per week to prepare for classes...

• Students would like a practical “TCC” (paper required to graduate)...

• Students seek graduate courses to link practice and theory...

Março 2013 49Plano Pós-graduação

Estácio’s grad programs should aim practice and currenttopics, effectively enabling the student to use what he/she

learns. Estácio’s grad programs should also fit people’s lives.

Grad Programs for the real world

FRONT 1


asdasdasdasdasdasdad

FRONT 1


MethodologyMethodology

SupportingMaterials

SupportingMaterials

TeachersTeachers

programprogram

discip

lined

iscipline

evaluationevaluation

TCC

TCC

Follow‐up RCA – 28/Maio/2013

Proposal: Ideal Graduate Course (Rio de Janeiro)“Focused on practice and current topics, effectively enabling the student to grow as one uses what is indeed learnt. The ideal graduate course fits people’s lives.”

FRONT 1


FRONT 1


The “Rede Pós” (Grad Network) will take our grad courses to new markets.

FRONT 1

“Rede Pós”

Solid and differentiated operating model

FRONT 1

“Rede Pós”

The Grad Network is already becoming reality...

FRONT 1

“Rede Pós”

With over 20 years of experience, Grupo Phrote comprises PhortePublisher, Phorte Education Institute and the Graduate Courses Center.

The partnership with Grupo Phorte brings an increased courses portfolio, know-how and technology focused on the graduate segment.

Grupo Phorte:

FRONT 1

Grupo Phorte

NÍVEL 1

NÍVEL 2

ENROLLMENT

LEVEL 2LEVEL 1

AUTOMATION AND QUALIFICATION•Automatic e-mail•Phone call in up to 5 minutes from lead.•Understand the needs.

RELATIONSHIP AND SALES•Scheduled attendance•Lots of information about the programs•Direct mail + free gift•Interview scheduling

New way to attract students, using IT, close relationship with prospects and technology for quick and efficient actions.

FRONT 1

“Central Pós”

12,159

13,626

22,085

jan/12 jan/13 jan/14

Student Base

Nota: 2014 figures includes students from Grad programs with Partners.

First Results

FRONT 1



BranchesDL





Six Fronts

FRONT 2

Academia do Concurso


FRONT 2

Build a profitable business with sustainable growth

Goal

FRONT 2


The turnaround underway has two work fronts:

FRONT 2

Two Fronts

Business Model• Directions• DL Platform• Geographic expansionOperational Efficiency

• Structure & Team• Management System• Fixed costs• Intake processes

Multiplataform

FRONT 2

Classroom

Computer

TabletMobile

Handouts&

Textbooks

TheoryDiscipline by subject

MockEvaluation

Unification: Theory + Exercises + Mock Exams

Student• Individual performance• Course ranking• Errors

Operation• Individual performance• Performance by discipline• Performance by course• Performance by region• Point-of-view: Student

Video (Scorm) Video (Scorm)

System

Course/Discipline/Matter

FRONT 2

Distance Learning

Rio de Janeiro

Brazil

FRONT 2

2014

2015

Expansion of On-Campus Sites



BranchesDL





Six Fronts

FRONT 3

University

Undergrad& Grad

M.A. andPhD Extension

Complementantion

Upselling

Open Market

B2B

Short Term Courses

Vision

FRONT 3

Internal Public External Public

Working Adults B and C classes

Students needing coursesto complement the

undergraduate courseand/or extracurricular

credits

Targets

Short Term Courses

ITProfessional Certifications

OAB (Law)

CRC (Accounting)

MgmtLaw

EngineeringLanguages À la carte

disciplines

Focus on training, personal improvement and career benefits

FRONT 3

Portfolio

FRONT 3

Platform

FRONT 3

Platform

FRONT 3

Portfolio

FRONT 3

DL CoursesEnable scale andscope.We will use ourown courses andfrom third-parties.

On-Campus CoursesWill be offered byregion depending onthe geographiclocation. We will use our own courses andfrom third-parties.

LoyaltyInitiativesWill be ourdifferential againstthe competition.We will offer short term courses, proprietary andthird-party, tosupplement thecontent offered tostudents.

Multi Company / White LabelAllow selling short termcourses on our platformand to other institutionsand, subsquentially, ouracademic model.

EVOLUTIONEVOLUTION

Business Lines



BranchesDL





Six Fronts

FRONT 4

FRONT 4

RIO DE JANEIRO

BRAZIL

25 courses23 campuses32k seats granted130 coordinators650 professors

2014.1

2014.2

x 25

FRONT 4

79

FRONT 4

Intake

29,840seats offered

184,000entries

29,840applicants

24,100enrollments

32,880seats granted

32,880Maximizing offer according to Pronatec 2014.1 bid

Total adherence to the bidIntelligent pricing strategy

Adherence to Estácio’s values

Proactivity for the intake process

Effective intake strategy

Intensive convertion

(100%)

(100%)

(81%)

Reception

FRONT 4

Corporate Solutions | Eduardo Pitombo

Our Mission

To develop customized solutions for

private and public companies that seek to

train/capacitate their employees, aiming

sustainable results for the company’s

business.

The vision of this business unit is based on

the development of an “educational chain”

for companies.

Brief History

Conducting research on the corporate solutions business in Brazil and

business expectations about the services provided by teaching institutions

and consulting firms. Feb to April/13

Strategy development. Feb to May/13

Structuring processes to begin offering corporate solutions to the market.

Mar to Dec/13.

Beginning of team training. Jun/13

Beginning of prospecting and company visiting. Jun/13

Highlights

Seeking to help companies in the development of their employee training programs, the Corporate Solutions area presents its highlights:

• HIGH LEVEL OF CUSTOMIZATION: exclusive team with large market and academic experience focused on companies needs and realities.

• BROAD PORTFOLIO: basic free courses, already built and structured.

• CONTENT FACTORY: customize educational projects for training and formation

• CAPILLARITY & SCALE: infrastructure to serve 10k people in 20 states

• CERTIFICATION: academic certification from a university

• TOP NOTCH TECHONOLOGICAL PLATFORM: LMS, academic system, broadcasting system, integrated data.

Solution Development

Corporate solutions is highly

customized, by a team of

Professors, Coordinators and by

our Academic Central, where

specialists adequate content,

methodology, and practical and

current cases.

SUBJECT AREAS

Arts andCommunicati

on

Education

Business and Mgmt

ITHealth

Law / PublicSafety

Engineering

Planning and Design of Corporate Universities

Solution Development Execution and Monitoring

• Planning and Educational Structure of the Corporate University

• Skill mapping• Learning tracks structuring

• Solution customization through coordination team and Estácio’sAcademic

• Estácio academic content• Assessment• Coaching• Game Center• Technology• Faculty with market experience• Content generation and

technological platform• Consulting

• National coverage with Estácio’sunits and distance learning centers

• National operational with logistics support

• Performance reports for clients

Corporate University Management

Corporate Solutions“Educational Chain”

Learning Tracks

Diagnosis Academic Model

Skill mapping

Recruitment and selection based on skills

Skill analysis gap

CertificationLearning Tracks

Evaluation (educational solution and skills)

ReactionLearning Behaviour Results

Customization Process

Diagnosis and alignment needs

Definition of technical staff for

customization

Customized project design

Content validation with

the client

Adequation of the contents of each

discipline

Definition of media and supporting

technologies

Training of the execution team

Validation of faculty with the

client

Planning and calendar

Scaling of infrastructure

Definition of dynamic and

practical activitiesStart of project

Corporate SolutionsPortfolio Offering

Undergraduate courses

(regular and technological)

Executive programs

Management skills programs

Technical courses

Systemic goals of the company (FUTURE)

Tech

nica

l and

Op

erat

iona

l

Manager and

leaders

Problems and specific challenges (PRESENT)

Long

Short

Duratio

n

Structure for Project Delivery

Operations Manager -

GOP

Academic Coordinators

FacultyOperational

Analysts

Area Coordination

Academic Central

Responsible for project customization

Responsible for supporting technical coordinators in the customization process

Responsible for coordinating the entire project delivery

Responsible for managing customization

Responsible for mapping clients’ needs and briefing

Account Managers Executives

Account Managers Executives

Corporate Solutions

Coordinators

Corporate Solutions

Coordinators

Corporate Solutions

Coordinator and Analysts

Corporate Solutions

Coordinator and Analysts

gCommercial Management

Academic Managementg

Operations Management

Customized Projects

Loca

l op

erat

ion

Sha

red

st

ruct

ure

(2nd

leve

l su

pp

ort)

Co

rpo

rate

S

olu

tio

ns

Op

erat

ions

Str

ateg

ic

Man

agem

ent

Model for Sales Channels

Commercial Management

Estácio’s Units

Account Managers

Niche Organizations

Dealers

Corporate SolutionsSome Clients

Undergraduate course (technological) for 4,000 Contax employees

Project and processes management

Management developmentprogram

Occupational medicine graduateprogram

Management program

Political management and publicsafety graduate program

Leadership and negotiation

6 customized grad programs

Public administration program

Additional Advantages ofGetting Closer to

Companies

Get closer to employers;

Alignment with market practices, which help us to update undergraduate

and graduate courses;

Corporate support to Estácio’s brand;

Contact with new methodologies and technologies directed to corporate

education.

Assisted Transfer | Vinicius Scarpi

Assisted Transfer Program – PTA (HEIs which lost MEC’s accreditation in jan.2014):

Bid No. 1: Transfer of 4,510 former students from UniverCidade.

Bid No. 2: Transfer of 6,874 former students from Universidade Gama Filho.

Bid No. 3: Transfer of 2,031 former students from Gama Filho’s Medical School.

Eligibility conditions: satisfactory grades in quality evaluation metrics – CPC, CC, CI and IGC – and cash flow generation – Kanitz method.

Basic requirements: no transfer charges, keeping scholarships, including FIES and ProUNI, higher use of academic credits; and same tuition value.

PTA

The Consórcio Rio Universitário was signed between three Higher EducationInstitutions in Rio (Universidade Estácio de Sá , Universidade Veiga de Almeidaand Faculdade de Tecnologia do Senac-Rio) to allow the admission of all studentsin the three bids, in accordance with the table below:

Consórcio Rio Universitário

UniverCidade Univ. Gama Filho UGF – Medical School

UniversidadeEstácio de Sá

17 courses 22 courses 1 course

UniversidadeVeiga de Almeida

4 courses 15 course -

SENAC 1 course 1 course -

UniverCidade UGF UGF –Medicine

TOTAL

Estácio 1,218 students 3,797 students 1,749 students 6,764 students

The Consórcio Rio Universitário won the three bids after MEC’s evalulation. Estácio hasreceived students from 40 courses, including all the students from UGF’s Medicine course.We may still get new students from these institutions in 2H14 through PTA.

By the end of the process, Estácio shall have additional 170 seats for the Medicine courseand all the seats necessary to absorb the students from other courses on permanentbasis.

Also, we won 18 “fastpasses” which grants us priority with MEC’s Regulation department.

Our capacity to absorb these many students so fast and help MEC and societyaggregated a lot of value to Estácio’s brand.

PTA

Jan, 14

Feb, 13Consórcio Rio Universitáriodeliver its proposal to MEC,

PTA

Feb, 28MEC’s Regulation Secretary publishes notice announcing Estácio’s victory in the bid for Gama Filhos’s Medical students.

Feb, 21MEC announces the results of bids No.1and No.2 of the assisted transfer of GamaFilho and UniverCidade students.

Consórcio Rio Universitário, composed byUniversidade Estácio de Sá (UNESA), byUniversidade Veiga de Almeida (UVA) andby Faculdade de Tecnologia Senac Rio(Fatec), was the winner.

Feb, 26 to Mar, 14Enrollment of 5,000 students through PTA.

PTA

Mar, 10 to Mar, 31Enrollment of 1,749 Medicine students fromGama Filho.

Apr, 4Medicine students who had already concludedtheir courses in Gama Filho and were approvedin Medical residency programs had their degreesissued by Estácio.

Mar, 31Public Hearing with the Public Defender in RJwith representatives from MEC’s RegulationSecretary, Ministry of Justice, Student Bodies,students and parents. From Estácio, Vice-Rector of Undergraduate Courses and coursecoordinators.

PTA

Apr, 17Medicine students who came through PTA had their Graduation ceremony with us.

May, 3Meanwhile...

PTA

PTA

Value added to our Brand.

Society recognition for receiving the students.

Strengthening our image with several stakeholders: Ministry of Education,Prosecution, Public Defender, PROCON, etc (goodwill).

Allocation of 800 students in the boarding of the Medical School in record time.

Increase in 170 seats for our Medicine course. Market share gains as we shouldbecome the largest Medicine course in the country.

Initial investment of R$5 million in laboratory infrastructure.

PTA

Conclusão | Rogério Melzi

FRAMEWORK

Moment, Strategy, and

Culture


Expansion

DL Strategy

Corporate Solutions

Assisted TransferUGF + UniverCidade

2014 2017 2020

Learning Systems

Priority Projects



A/B Classes

TransformationalM&A

Reaping the Fruits Strategic Planning

Short Term Medium Term Long Term

New Fronts

HIGHER EDUCATION?

REGULATORY?

CLIENTS?

BRAND?

REVENUEMODEL?

PORTFOLIO?

?

SIACSC

Learning Systems


To consider:

•Time to prospect? •Strategy? •DL? On-Campus? •Geography?•Languages?•Go-to-Market?• Partnerships? • Standards?• Centralization?

108Evento Corporativo 2014 – EDUCAR PARA TRANSFORMAR

STUDENTS

SERVICES TEACHING

MANAGEMENT + CULTURE + GOVERNANCE

SCALE

A/B ClassesBasic and High School

New scenario after Kroton-Anhanguera merger

Constant prospection

Building a positive image with the Market

CEO and Board of Directors directly involved

Networking Essential

Respect the limits (Culture / Capacity / People /

Capital / Resources in General)

Transformational M&A

Modus Operandi

Growth with (a lot) of discipline know when to say “NO”

Building Fundamentals Sustainable Growth

20-Mile March Respect the Limits

Long Term View Constant Planning

Attention to Opportunities / External Scenario New Fronts

Networking Opens Doors

Estácio’s Image & Institutional Leadership

Focus on the Student and on Service Quality... Value

comes as consequence!

Mission, Vision, andValues

We integrate academy and management to offer a transformative education to the largest possible number of

people, impacting the society in a positive way..

EDUCATE TO TRANSFORM

Mission

Values

Focus on the Student

Simplicity

Hospitality

Innovation

People & Meritocracy

Results

Excellence

Ethics

Vision

To be recognized as the educational institution with the best options for students, faculty and shareholders.

Thank you!Now let’s go beyond the Powerpoint!

Investor Relations

Estácio: Estácio Day 2014 Presentation