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Certain statements contained in this presentation concerning DeVry Education Group’s future performance, including those statements concerning DeVry Group’s expectations or plans, may constitute forward-looking statements subject to the Safe Harbor Provision of the Private Securities Litigation Reform Act of 1995. These forward-looking statements generally can be identified by phrases such as DeVry Group or its management “believes,” “expects,” “anticipates,” “foresees,” “forecasts,” “estimates” or other words or phrases of similar import. Actual results may differ materially from those projected or implied by these forward-looking statements. Potential risks, uncertainties and other factors that could cause results to differ are described more fully in Item 1A, “Risk Factors,” in DeVry Group ’s most recent Annual Report on Form 10-K for the year ending June 30, 2012 and filed with the Securities and Exchange Commission on August 28, 2013.
Medical & Healthcare International and Professional Education Business,Technology & Management
Thesis on DeVry Group + + = Quality Diversification Long-term Thinking Growth
Quality: Student Outcomes 90 / 44 Figure based on 2013 graduates self-reporting data to DeVry University Career Services who were employed at graduation or actively seeing employment in their field after graduation. Does not include graduates who were not actively seeking employment, as determined by DeVry University Career Services, or who did not report data on employment status to DeVry University Career Services.
Quality: Student Outcomes • More than 1,000 residency placements • 97% first-time pass rates on Step 1 • of USMLE at RUSM and AUC Confidential
Quality: Student Outcomes 90%+ Watts Sells recipients who prepared with Becker Confidential
Diversification: DeVry Education Group Geographic Diversification: Revenues by Geography2 Vertical Diversification: Enrollments by Program1 Horizontal Diversification: Enrollments by Award Level1 Technology Business Healthcare Associate/Certificate USA Non-USA2 Bachelor’s Master’s Doctoral Based on Fall 2013 data; excludes enrollments at Becker Professional Education, and DeVry Brasil Non-USA includes DeVry Brasil, DMI institutions and other miscellaneous international revenue Confidential
Nearly 18,000 students in 13 campuses 4 new locations in 2015
One of the Largest provider of new Physicians
Diversification: Adds Value • Diversification strategy adds valueas students enroll across our institutions
Investments on Long-Term Growth • Strong enrollment growth driven by MSN and DNP programs • 4 campuses in FY15 • “Acquirer of choice” in Brazil • Proven integration playbook • 4 successful acquisitions in last 5 years • Nine new degree programs
Key Priorities Turn Around and Transform DeVry University Continue Our Growth Through Diversification
Four-Point Plan Stabilize Enrollments Reduce Costs &Enhance Service Regain Technology Edge Develop theTeam
Turnaround Plan • Stabilize enrollment and position theuniversity for growth • Programmatic focus • Optimizing our pricing • More effective marketing and recruiting
Turnaround Plan • Reducing our cost structure while enhancing student services • Increased sense of urgency • $100 million FY14 target • Example: consolidating IT systemsfor better service, lower cost
FY14 Full-Year Results (in millions) Revenue $1,923 $1,964
FY14 Full-Year Results (in millions) Net Incomeas Reported Net Income(Excl. Special Items)
Medical and Healthcare Provides nearly 2/3 of DeVry Group operating income
Total Enrollment 112,000+ students Up 2% from 2013 Note: Excludes Becker Professional Education(50,000 students).
Strong Financial Position (in millions) Cash Debt
Allocating Owners’ Capital • Deploy capital to strengthen currentpostsecondary operations • Growth via diversification • Create long-term value through dividends and share repurchases
Demand for career-oriented education • Quality programs and service to students • Financial flexibility • Accelerating efforts to improve DeVry Groups’ performance Positionedfor Long-term Growth
+ + = Quality Diversification Long-term Thinking Growth