2. Disclaimer
This presentation contains forward-looking statements relating to the prospects of the business, estimates for
operating and financial results, and those related to growth prospects of Estácio Participações. These are
merely projections and, as such, are based exclusively on the expectations of Estácio Participações’
management concerning the future of the business and its continued access to capital to fund the Company’s
business plan. Such forward-looking statements depend, substantially, on changes in market conditions,
government regulations, competitive pressures, the performance of the Brazilian economy and the industry,
among other factors and risks disclosed in Estácio Participações’s filed disclosure documents and are,
therefore, subject to change without prior notice. Since the Company was constituted only on March 31, 2007,
we present, for the sole purpose of comparison, the non-audited pro-forma information for the nine months of
2006 and 2007, as if the company's constitution had occurred on January 1, 2006. In addition, certain
information was presented adjusted to reflect the payment of taxes at SESES, our largest subsidiary, which,
starting in February 2007 and as a result of its transformation into a for-profit company, being subject to the
tax laws applicable to other legal entities, notwithstanding the exemptions arising under the University for All
Program (PROUNI). The information presented for comparison purposes should not be used as a base for
the purpose of calculating dividends, taxes or any other corporate purpose. We are a holding company, and
our only assets are our interests in SESES, STB, SESPA, SESCE, SESPE and UniRadial, and we currently
hold 99.9% of the capital stock of each of these subsidiaries. We are a holding company incorporated on
March 31, 2007 as a result of a corporate restructuring that segregated the post-secondary education
operations of our subsidiaries SESES, STB, SESPA, SESCE and SESPE under our common control.
1
3. 1. Visão Geral
Company Overview
Brazilian Post-Secondary Education Market
Business Strategy
Operating and Financial Highlights
2
5. Geographic Coverage
State of Rio de Janeiro
2,753 students 11,672 students 2nd largest market in Brazil
12.6% of GDP
15.4 million inhabitants
677 students 425 thousand students enrolled
in post-secondary programs
116 thousand students (ESTC)
4,817 students Source: SINAES/2005
5,553 students
1,745 students 11,206 students
1,677 students 2,983 students
1,804 students 1,376 students
2,679 students
10,141 students
4,168 students
Subsidiaries :
4
6. Growth and Profitability
Turnaround
Number of undergraduate
Organic Growth National 174
179
Leadership 162
students (000)
166
135 UniRadial
144 North and Acquisition
141 SESES for- Aug/07
Northeast
profit status (SP / PR)
institutions for-
118 achieved
profit status
Beginning of (feb/2007)
achieved (2007)
national
expansion
project
70
51
35
23 26
1970/96 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 JUN SEP
2007
5
7. Estácio: The Leading Player
Market share
Rio de Janeiro (number of students) – 2005 Brazil (number of students) – 2005
Smaller Institutions
3.7%
27.3%
Unip 2.4%
Ulbra 1.5%
Universo
13.7%
Universo 1.3%
Other
88.1%
Other Unipac 1.1%
27.1% UniverCidade
7.4%
Uninove 1.0%
SUAM
4.5%
Uniban 0.9%
UVA UniGranrio
2.4% UGF 4.2% 11.9%
PUC RJ UNIG UCAM
3.9%
2.6% 3.0% 3.8%
Total: 425 thousand students Total: 4.5 million students
Source: SINAES Source: SINAES/MEC/INEP
6
8. Perception of Quality
Average 2004, 2005 and 2006 ENADE’s Evaluation 2006 Brazilian Bar Association Pass Rate in Rio de Janeiro
AVERAGE 3.10
3.15 95%
88%
85%
Unipac 3.05
76% 75% AVERAGE 63%
Ulbra 2.98 61% 58%
56%
Anhanguera 2.93 43%
Uninove 2.86
Universo 2.85
UERJ UFRJ Cândido Gama UNIVERSO
Unip 2.76 Mendes Filho
Veiga de
PUC-RJ UniverCidade
Almeida
ENROLLED
STUDENTS
Uniban 2.58
204 268 282 2,225 1,203 1,245 373 199 483
Source: Ministry of Education – ENADE (National Evaluation) Source: Ordem dos Advogados do Brasil (OAB - RJ)
7
9. Opportunities for Expansion
Operational Increase in market
synergies in the share and improved
acquisitions and margins
business
turnaround plan on
course
Price, Quality and
Convenience
‘Asset Light’
Growth Model Consolidation
4
Structured
Expansion
Better Value 3
Proposition for the
Student
Higher return on 2
capital invested
1
8
10. 1. Visão Geral
Company Overview
Brazilian Post-Secondary Education Market
Business Strategy
Operating and Financial Highlights
9
11. Sector Overview
Largest market in Latin America and 5th in the world, with low penetration rate
Post-secondary Enrollment in 2005 (000) Gross Enrollment Rate1 – Post-secondary (2005)
83%
23.4
17.3 71%
65%
11.8 48%
9.0
22% 24% 24%
4.5 4.0
11%
China USA India Russia Brazil Japan India China Brazil Mexico Chile Argentina Russia USA
1. Percentage of students completing high school directly enrolling in post-secondary
Source: Unesco/INEP/MEC/SINAES education
Source: Unesco
Enrollment in Brazil – Post-secondary (million) Post-secondary Institutions in Brazil (in number of units)
4.5
4.2 Private
3.9 Private
CAGR
3.5 CAGR
12.2%
3.0 12.5%
72% 73%
71% 1,934
70% 1,789
69% 1,652
1,442
1,208
31% 30% 29% 28% 27%
183 195 207 224 231
2001 2002 2003 2004 2005 2001 2002 2003 2004 2005
Public Private Public Private
Source: INEP/MEC Source: INEP/MEC 10
12. Strong Growth Potential
Demand for qualified professionals should drive enrollment in post-secondary institutions
Proportion of Post-Graduate Enrolled Students between 20 and 24 years old
45 2010 Brazil 5.7 million
40 Estimate (CAGR 4.8%)
35
30
Brazil Average: 21.6% Source: Hoper Educacional
25
20
15 2010 Brazil 7.1 million
10 Target* (CAGR 21.7%)
5
0
•Taget of 30% penetration (18-24 years old population)
DF RS SC RJ MS SP PR GO TO ES MT AM MG PI AP RN AC RO PB PE SE RR AL CE PA BA MA (Penetration 2005: 10.9%)
Source: Plano Nacional de Educação/IBGE
Source: IBGE/MEC/INEP/Paulo Renato Souza Consultores
Number of young working adults in post-secondary education (million)
3.0
2.6
2.3
2.0
1.8
1.6
2005 2006 2007E 2008E 2009E 2010E
Source: Gismarket / IBGE / INEP 11
13. Highly Fragmented Market
Top 10 largest post-secondary institutions account only for 17% of total enrolled students
Top 10 Private Institutions Market Share (2005) Top Players in Brazil in 2005 (in 000 students)
Based on Number of Enrolled Students
166.5
17.4%
106.9
82.6%
Total: 3.3 million of enrollments 66.0
58.2
Source: Hoper Educacional 47.8 43.8 41.5
Private Institutions vs. Students (2005)
131 5K or more
173 2K < 4.9K
Unip Ulbra Universo Unipac Uninove Uniban
500 < 1.9K
616
For-profit institutions Non-profit institutions
Source: SINAES
Up to 499
1,014
Total: 1,934 Institutions
High potential for Consolidation
Source: Hoper Educacional 12
14. 1. Visão Geral
Company Overview
Brazilian Post-Secondary Education Market
Business Strategy
Operating and Financial Highlights
13
15. Value Proposition: Seizing Market Opportunities,
Growth and Profitability
Convenience
Location
DEFINITION OF OUR
TARGET MARKET
Competitive price
SUPPLY TRIGGERS
Youth aged 18 to 24
Job seekers
Quality fit
Workers who also study
Self-financed students
Labor-market oriented
Adequate facilities
Growth Strategy Operational Improvement
Organic Acquisition Business Turnaround
14
16. Organic Growth
New programs to attract and retain students
Job Placement programs
Consolidation
Marketing efforts
Competitive prices in all markets
Transformation into university centers
Growth
Open of new units/Campuses
Related Business Distance Learning
15
17. Acquisition: Target Market
Strategic Fit Growth Synergies
Potential
Full Companies Operating Units
Over 5,000 students
Any size but with preference to
those with over 1,000 students
Compatible stand
Compatible market position
Priority for university centers
Only for expanding already
Priority for institutions existing units
expediting capture of operating
synergy
Administrative and academic
synergy
16
18. Aquisições: UniRadial
Radial University Center Acquisition Expansion of operations in 2 of Brazil’s
largest markets: São Paulo and Paraná
Company structure Location
Over 40 years of tradition and quality
8 campuses (1 university center)
New Campuses
São Paulo
10,100 students (sept/07) 2008/2009
23 Campuses (undergraduation,
technology and Lato sensu post- 7 campuses
Paraná
graduate programs)
1 campus
31% of Brazilian GDP
21.6% of Brazilian population
GDP per capita of R$13.7 thousand (US$ 7.8
thousand)
1.2 million students enrolled
28.5% of the enrolled students between 20 and 24
years old 17
19. Operational Improvement
Optimization and standardization of Rollout of SAP and SIA (academic)
courses and centralization of systems in all units
backoffice.
Cost Reduction / Continuous Improvement
Management Targets
Increasing use of Distance
(bonus program) Learning
18
20. 1. Visão Geral
Company Overview
Brazilian Post-Secondary Education Market
Business Strategy
Operating and Financial Highlights
19
21. Revenue
Enrolled Students (thousands) 172.2 172.5 -0.2%
Average Tuition 415.8 400.0 3.9%
Net Revenue (R$ million)
20
24. Net Income
Net Income (R$ million) Net Income (R$ million)
Excluding the extraordinary IPO expenses (R$15.5 million in the 3Q07 and R$17.2 million in the 9M07
23