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Nord Anglia EducationOctober 2016 Update
October 10, 2016
2
Neither Nord Anglia Education, Inc. (NYSE: NORD) nor any of its subsidiaries or affiliates
is making any representation or warranty, expressed or implied, as to the accuracy or
completeness of the attached materials.
Please note that the attached materials and our oral explanations of the attached materials
may constitute forward-looking statements within the meaning of applicable U.S. securities
laws and such forward-looking statements are made based on our current
expectations. Forward-looking statements relate to events involving certain risks and
uncertainties, and actual results may differ materially from the views expressed.
A number of potential risks and uncertainties are outlined in our public filings with the
Securities and Exchange Commission. Nord Anglia Education, Inc. does not undertake
any obligation to update any forward-looking statement, except as required under
applicable law. You are cautioned not to place undue reliance on any forward-looking
statements.
Disclaimer
3
student enrollment
for 2016/17
2,225
446
September 2015 Same Schoolgrowth
China DC Schools September 2016
organic enrollment growth for the start of 2016/17
4
average 4% tuition fee increases implemented across the group for 2016/17
FTEs1
2
1 Full time equivalent students.
2 As at September 2016 China Dual Curriculum Schools comprises Nord Anglia Chinese International School, Shanghai (‘NACIS’)
5
capacity expansion
Fiscal 2017 starting utilization 6
( excluding NACIS)
New build expansion:
NACIS, Shanghai
seats
New campus British
International School of Houston
seats (net increase
seats)
seats existing school
expansion across 5 regions
Capacity
2,365
3,450
September 2015 Existing schoolexpansion
New buildSchools
September 2016
6
dual curriculum strategy
7
Chinese dual curriculum school successful opening
NACIS opened September 2016
446 starting FTEs / 2,250 seat capacity (20%
utilization)
Investment ~$31m
Expected breakeven1 year 1 / maturity2 year 3
~40%+ adjusted EBITDA margin expected at maturity
ROI3 74% at maturity
1 Breakeven measured at Adjusted EBITDA level
2 Maturity means 80% utilization.
3 ROI calculated as Adjusted EBITDA / total capital investment, including
capital expenditure to opening and operating losses prior to break
even, at maturity.
-
5
10
15
20
25
-
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
Year 1 FY17 Year 3 FY19F
Enrolment Adjusted EBITDA
Avera
ge F
TE
’s
Adju
ste
d E
BIT
DA
US
Dm
market with strong fundamental drivers
Parents prioritize child’s education
Growth of school age population
Increasing disposable income
Access to foreign universities
Government support for private
investment in education
Key drivers of private K12
education growth in China:
Shanghai premium dual curriculum
market1:
1 Private dual curriculum schools charging more than
$10,000 per annum in tuition.
2 Company estimates 2015.
Market size
Growth rate
Students
9
Establishing dedicated
Jian Tang - CEO Nord Anglia Chinese International Schools
15 years experience as Managing Director Nord Anglia International Schools in China
Co-founder of the first Nord Anglia School in China – British International School
Shanghai
Opened or integrated all existing Nord Anglia schools in China
Strong knowledge and experience of K-12 education in China
Corporate
Development
Team
IT
TeamFinance
Team
HR
Team
Marketing and
Communications
Team
IT
Team
Expected cost to establish dedicated China Dual Curriculum team in fiscal 2017
(to be added back in calculating Adjusted EBITDA)
Education
Team
10
and roll out plan
Schools Schools
2016/17NACIS Shanghai
opened Sept. 2016
2017/18Launch one new
additional school
2018/19Launch two new
additional schools
2019/20Launch five new
additional schools
SchoolsSchools
11
performance
12
organic FTE growth
seats of capacity added to
Guangzhou
average tuition increases
Excludes new dual curriculum
school
China
Commentary
5,727 5,858
8,9269,242
September 2015 September 2016
FTEs Capacity
13
organic FTE growth
seats of capacity added to
Madrid, Warsaw, Bratislava and
Budapest
average tuition increases
Europe
Commentary
6,4566,856
8,617
9,691
September 2015 September 2016
FTE Capacity
14
organic FTE growth
seats of capacity added to Dubai
and Al Khor
Tuition increases subject to
government approval
Middle East
Commentary
5,2645,611
5,8516,187
September 2015 September 2016
FTE Capacity
15
organic FTE growth
seats of capacity added to
Singapore and Bangkok
average tuition increases
South East Asia
Commentary
7,295
8,190
12,09712,561
September 2015 September 2016
FTE Capacity
16
organic FTE growth
seats of capacity added to
Houston (new campus) and Miami
average tuition increases
North America
Commentary
9,4359,887
13,507
14,882
September 2015 September 2016
FTE Capacity
17
fiscal 2017
18
Nord Anglia Education is providing its full year
outlook for fiscal 2017:
1. Diluted weighted average shares of approximately 104.5 million
FY17 guidance
Revenue $925 – $945 million
Adjusted EBITDA $207 – $217 million
Adjusted Net Income$67 – $72 million
Adjusted EPS1
$0.64 – $0.69
Adjusted EBITDA
19
207.5 212.0
FY16 Midpoint ofGuidance
FX(Constant Currency)
Organic EBITDAgrowth
SLB &new Houston rent
New Global CampusExpenses
FY17 Midpoint ofGuidance
20