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Estácio: 4Q10 and 2010 Conference Call Presentation

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Estácio: 4Q10 and 2010 Conference Call Presentation

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Estácio: 4Q10 and 2010 Conference Call Presentation

  1. 1. 4Q10 AND 2010 RESULTSEduardo Alcalay Rogério MelziCEO CFO and Investor Relations Officer March. 2011
  2. 2. HIGHLIGHTS 40 years of history and looking to the future New Academic Model: more than 70 thousand students received the new textbooks Among the leaders in distance learning (EAD): more than 26 thousand students in just 18 months of operations Structured sales force: 20% increase in enrollments in 2H10 Working capital and cash: comfortable position to invest in business growth 2
  3. 3. RESULTS’ HIGHLIGHTS Recurring EBITDA margin in line with guidanceMain Indicators 4Q09 4Q10 Change 2009 2010 Change(R$ MM)Net Revenue 244.4 252.5 3.3% 1.008.8 1.016.1 0.7%Recurring EBIT 15.0 17.3 15.3% 77.5 94.6 22.1%Recurring EBIT Margin 6.1% 6.9% 0.7 p.p. 7.7% 9.3% 1.6 p.p.Recurring EBITDA 25.9 27.0 4.2% 119.1 127.4 7.0%Recurring EBITDA Margin 10.6% 10.7% 0.1 p.p. 11.8% 12.5% 0.7 p.p.Net Income 10.7 22.2 107.5% 63.4 80.6 27.1%Recurring Net Income 12.3 27.7 125.2% 77.1 101.7 31.9% 3
  4. 4. OPERATING PERFORMANCE – STUDENT BASE EDUCATIONAL SEGMENT (In thousand students) On-Campus Distance Learning Total Student Base +2.1% 210.0 205.7 9.6 26.2 196.1 183.8 2009 2010Distance learning student base has 26.2 thousand students in just 18 months of operations 4
  5. 5. OPERATING REVENUE OPERATING REVENUE (In R$ million) Average on-campus ticket grew 5.3% in 2010 1.459.7 1.454.3 Net Revenue from distance learning grew 356.7% in the year 450.9 438.2 2.4 p.p. decline in Gross Operating Revenue deductions in 4Q10357.2 356.3 1.008.8 1.016.1 (R$) 4Q09 4Q10 ∆% 2009 2010 ∆%112.8 103.8 Average 392.8 398.2 1.4% 420.1 420.3 0.0% Ticket244.4 252.5 On-campus 402.4 432.2 7.4% 424.5 446.9 5.3%4Q09 4Q10 2009 2010 Distance 186.4 161.5 -13.3% 203.8 182.0 -10.7% LearningNet Revenue Deductions Gross Revenue 5
  6. 6. COST OF SERVICESVertical Analysis 4Q09 4Q10 Change 2009 2010 Change(% Net Operating Revenue)Cash Cost* 62.4% 66.8% 4.3 p.p. 65.1% 65.3% 0.2 p.p. Personnel and Payroll Charges 40.7% 40.0% -0.7 p.p 42.8% 40.7% -2.1 p.p. Brazilian Social Security Institute 7.0% 8.0% 1.0 p.p. 7.4% 8.2% 0.8 p.p. (INSS) Rentals / Real Estate Taxes 9.3% 12.0% 2.7 p.p. 9.7% 10.1% 0.4 p.p. Expenses Textbooks Materials 0.2% 2.7% 2.6 p.p. 0.1% 1.6% 1.5 p.p. Others 5..% 4.1% -1.1 p.p. 5.2% 4.8% -0.4 p.p.* Excluding non recurring and depreciation 6
  7. 7. SELLING. GENERAL & ADMINISTRATIVE EXPENSES (SG&A)Vertical Analysis 4Q09 4Q10 Change 2009 2010 Change(% Net Operating Revenue) SG&A* 27.8% 23.2% -4.6 p.p. 24.1% 23.4% -0.7 p.p. Selling Expenses 8.6% 9.1% 0.5 p.p. 7.3% 8.2% 0.9 p.p. Provision for Doubtful Debts 8.2% 6.0% -2.2 p.p. 4.3% 4.1% -0.2 p.p. Marketing 0.4% 3.1% 2.7 p.p. 3.0% 4.1% 1.1 p.p. General Administrative Expenses* 19.2% 14.1% -5.1 p.p. 16.8% 15.2% -1.6 p.p. Personnel and Payroll charges 8.8% 8.4% -0.4 p.p. 6.9% 6.9% 0.0 p.p. Others 10.4% 5.7% -4.7 p.p. 9.9% 8.3% -1.6 p.p.*Excluding non recurring and depreciation. 7
  8. 8. BAD DEBTS AND RECEIVABLES Accounts Receivable (R$ mm) 4Q09 1Q10 2Q10 3Q10 4Q10Gross Accounts Receivable 196.8 208.8 249.9 256.3 201.8 FIES 2.3 4.6 5.4 17.5 15.3 Tuition monthly fees 174.7 179.5 220.0 207.9 168.2 Financed Tuition 19.8 24.7 24.6 30.9 18.3 Cards receivable 2.7 1.1 6.0 11.8 6.9 Checks receivable 16.3 15.5 16.8 16.2 6.9 Fees receivables 0.9 8.2 1.8 2.9 4.4Provision for bad debts (78.8) (85.1) (102.2) (107.3) (45.4)Net Accounts Receivable 118.0 123.7 147.7 148.9 156.4 (-) FIES (2.3) (4.6) (5.4) (17.5) (15.3)Net Accounts Receivable Ex. FIES 115.7 119.1 142.3 131.5 141.1Net revenue (last twelve months) 1,008.8 1,000.3 1,010.0 1,008.1 1,016.2Days Receivables Ex. FIES 41 43 51 47 50 8
  9. 9. EBITDA AND NET INCOME EBITDA NET INCOME (In R$ million) (In R$ million) 12.5% 10.0% 11.8% 7.6% 101.7 127.4 119.1 77.1 11.0%10.6% 10.2% 5.0% 27.725.9 27.0 12.34Q09 4Q10 2009 2010 4Q09 4Q10 2009 2010 Recurring EBITDA Margin Recurring EBITDA Recurring Net Margin Recurring Net Income 9
  10. 10. CASH FLOW 2010 CASH FLOW (In R$ million) 47.9 127.4 70.5 9.0 21.1 1.4 30.5 3.9 69.9 64.8 6.8 201.0 165.4 Cash Positive Variation Negative Variation* Financial Result except Operating Financial Result (included in Recurring EBITDA) 10
  11. 11. OUTLOOK 2011 Growth with quality and profitability 1 Management: Optimization of faculty and infrastructure 2 Quality: Focus on SINAES indicators and student’s satisfaction 3 Tablet: Result of the revolutionary New Academic Model 4 Organic Expansion: Inauguration of 5 units 5 Acquisitions: Opportunities in the pipeline 11
  12. 12. IR CONTACTS Investor Relations: Flávia de Oliveira Email: flavia.oliveira@estacio.br Phone: +55 (21) 3311-9789 Fax: +55 (21) 3311-9722 Address: Av. Embaixador Abelardo Bueno. 199 – Office Park – 6th floor CEP: 22.775-040 – Barra da Tijuca – Rio de Janeiro – RJ – Brazil Website: www.estacioparticipacoes.com/irThis presentation may contain forward-looking statements concerning the industry’s prospects and Estácio Participações’ estimated financial and operating results;these are ere projections and. as such. are based solely on the Company management’s expectations regarding the future of the business and its continuousaccess to capital to finance Estácio Participações’ business plan. These considerations depend substantially on changes in market conditions. government rules.competitive pressures and the performance of the sector and the Brazilian economy as well as other factors and are. therefore. subject to changes withoutprevious notice. We are a holding company. and our only assets are our interests in SESES. STB. SESPA. SESCE. SESPE. SESAL. SESSE. SESAP. UNEC. SESSA andIREP. and we currently hold 99.9% of the capital stock of each of these subsidiaries. Considering that the Company was incorporated on March 31 2007. theinformation presented herein is for comparison purposes only. on a proforma unaudited basis. relative to the first three months of 2007. as if the Company hadbeen organized on January 1 2007. Additionally. information was presented on an adjusted basis. in order to reflect the payment of taxes on SESES. our largestsubsidiary. which from February 2007. after becoming a for-profit company. is subject to the applicable taxation rules applied to the remaining subsidiaries.except for the exemptions arising out of the PROUNI – University for All Program (“PROUNI”). Information presented for comparison purposes should not beconsidered as a basis for calculation of dividends. taxes or for any other corporate purposes. 12

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