Forward-Looking Statements Certain statements contained in this presentation concerning DeVry’s future performance, including those statements concerning DeVry’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 Inc. 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’s most recent Annual Report on Form 10-K for the year ending June 30, 2010 and filed with the Securities and Exchange Commission on August 25, 2011.
Business,Technology Medical & International, K-12 and & Management Healthcare Professional Education
Financial Highlights (in millions) Revenue Net Income $1,636 $255 $1,584 -3% -48% $187* $54** $133 FY11 FY12 FY11 FY12 1st Nine Months 1st Nine Months *Represents YTD FY12 net income before impairment charge and gain on sale.**Discrete item of Carrington impairment charge net of sale of Stalla.
DeVry Inc. Total Enrollment 140,000 130,957 126,165 120,000 -3.7% 100,000 80,000 60,000 40,000 20,000 0 2011 2012Spring 2012 enrollment for DeVry’s degree-granting institutions.Excludes Becker and Advanced Academics.
DeVry’s Performance 2014-2016 2007-2011 2012-2013 Recovery and Performance Transition Growth • Strong enrollments • Revenues down • Modest enrollment • Exceptional operating • Earnings down growth at DeVry leverage University • Transitioning back to growth • 2011 onsite enrollment levels at Carrington • Other institutions continue growth
5 Point Performance Improvement Plan
5 Point Performance Improvement Plan1. Aligning costs with enrollment levels • $25m since 3Q11 • Additional $50m in FY13 • Focused on DeVry University and Carrington Colleges
5 Point Performance Improvement Plan1. Aligning costs with enrollment levels2. Enhance recruiting process3. Improve awareness building
5 Point Performance Improvement Plan1. Aligning costs with enrollment levels2. Enhance recruiting process3. Improve awareness building4. Targeted investments to drive growth
Growth Investments acquires
5 Point Performance Improvement Plan1. Aligning costs with enrollment levels2. Enhance recruiting process3. Improve awareness building4. Targeted investments to drive growth5. Invest in DeVry’s people
Developing our Faculty
Delivering Long-Term Value
Our Strategic Plan
Our Strategic Plan Superior student outcomes • High-quality, career-oriented academics • Service excellence • Innovative educational technology
Our Strategic Plan and diversify • Program areas • Levels of education • Geographic
Diversification: Program Areas Total Enrollment: Total Enrollment: 43,300 120,000+ 30% Business 27% Healthcare 45% Business 70% Technology 28% Technology Fall 2002 Fall 2010* Based on data provided to IPEDs; excludes enrollments at Advanced Academics and Becker Professional Education.
Diversification: Level of Education Total Enrollment: Total Enrollment: 43,300 120,000+ 5% Doctoral 14% Master’s 21% Master’s 68% Bachelor’s 56% Bachelor’s 18% Associate/ Associate/ Certificate 19% Certificate Fall 2002 Fall 2011* Based on data provided to IPEDs; excludes enrollments at Advanced Academics and Becker Professional Education.
Diversification: Geographic4% International 13% International96% USA 87% USA2002 2011
• Market dynamics favorable to private-sector education• Organic growth: sharing best practices and DeVry brand• Growth via acquisitions
Our Strategic Plan High-quality infrastructure • Technology • Human resources • Operational excellence • Reputation
Our Strategic Plan Strengthen our Core Grow our Core and Invest to Support our Strategy Diversify and Organization
Allocating Capital • Strengthen and grow the core • Diversify beyond the core • Dividends and share repurchases