nord anglia education 3 qfy2014 presentation vfinal2

For the period ended May 31, 2014

Nord Anglia Education Third Quarter Fiscal 2014 Results Presentation

July 16, 2014

Disclaimer

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.

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29 K-12 schools in 13 countries

Over 4,000 teachers and teaching support staff

Over 18,500 students representing 100+ nationalities

Over 23,500 seats of capacity

Nord Anglia Education is the world’s leading premium schools organization

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$58 billion global market

Outstanding Education

• Focus on premium K-12 education

• Distinctive educational features:

– Global Classroom for our students

– Nord Anglia University for our teachers

• Superior academic results

• Students continue to outperform national and global averages in 2014 results

Educational Quality

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IB Diploma Average Score

IB Diploma Results 2014

Nord AngliaEducation

Global Average

14.4% of our students achieve over 40 points

6.5%

14.4%

29.6 29.8 29.8 29.8

31.9 33.0 33.0 33.7

FY2011 FY2012 FY2013 FY2014

Global Average Nord Anglia Education Average

N.B. Maximum IB score = 45 points

Same school expansion New campus in Aubonne for the La Côte School to open September 2014 with 840 seats

Recent Developments

Greenfield development June 11, 2014 – We celebrated the ground breaking for our new 1,100 seat campus in Chicago to open September 2015

Acquisitions July 10, 2014 – Acquired Northbridge International School Cambodia

Full Time Equivalent Students (FTEs) Approximately 18,654 FTEs at 2014 academic year end including 500 FTEs for Northbridge

Key management appointments David Graves (Laureate) – Regional Managing Director, North America (started April 2014)

Alison Copus (TripAdvisor/Virgin) – Chief Admissions and Marketing Officer (started July 2014)

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NORTHBRIDGE INTERNATIONAL SCHOOL Phnom Penh, Cambodia

Operational - Average full time equivalent students (FTEs) up 78.0% from 9,920 to 17,653

- Capacity up 77.9% from 12,503 seats to 22,237 seats

- Utilization unchanged at 79%

- Revenue/FTE down 9.5% from $8.4k to $7.6k (mix impact)

Third Quarter Fiscal 2014 Highlights

Financial - Revenue up 54.9% from $89.4 million to $138.5 million

- Adjusted EBITDA up 60.6% from $28.0 million to $45.0 million

- Adjusted Net Income up from $2.9 million to $14.7 million

- Maintained strong Adjusted EBITDA margin at 32.7%

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Financial Performance

Third Quarter Fiscal 2014 Results Presentation

Group Performance Summary

$ millions Q3 FY14(1) Q3 FY13 Variance Premium Schools(2) 132.8 79.0 68.1%

Loss making start-up schools 0.9 4.0 (77.5%)

Sub total Premium Schools 133.7 83.0 Actual: 61.1% CC(3): 59.2%

Other 4.8 6.4 (25.0%)

Total Revenue 138.5 89.4 Actual: 54.9% CC(3): 53.2%

Gross Profit 77.4 48.4 59.9%

Gross Profit Margin 55.9% 54.1% 1.8%

Adjusted EBITDA 45.0 28.0 Actual: 60.6% CC(3): 60.7%

Adjusted EBITDA Margin(4) 32.7% 32.8% (0.1%)

Adjusted Net Income 14.7 2.9 406.9%

Adjusted EPS (in $)(5) 0.15 0.03 (1) Fiscal year end August 31 (2) Premium schools revenue excluding loss making start-up schools (3) CC denotes Constant Currency (4) Adjusted EBITDA margin calculated by excluding the revenue and EBITDA from loss making start-up schools (5) Adjusted earnings per share on a fully diluted basis pro forma for our initial public offering

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Q3 FY14 Premium Schools Revenue Bridge

$ millions

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113.9

133.7

30.9 9.3

10.5

83.0

0

20

40

60

80

100

120

140

Q3 FY13 RevenueActual

Q3 FY13 WCLRevenue

Q3 FY13 RevenuePro forma

Q3 FY14 Revenueex acquisitions

Q3 FY14Guangzhou,

Bangkok andSingapore Revenue

Q3 FY14 RevenueActual

$25.1m

Q3 FY14 Revenue & Adjusted EBITDA Performance by Region

Europe North America Middle East / South East Asia China

$48.0m

$40.0m

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$24.7

$9.1m

$7.5m NEW REGION

REVENUE

ADJ. EBITDA

REVENUE

ADJ. EBITDA

REVENUE

ADJ. EBITDA

356% ADJ. EBITDA

$19.7m NEW REGION

$8.0m

24% 17%

18% 275%

REVENUE

17%

Highlights

• Utilization 70% down from 77% due to capacity expansion over the summer of 2013

• Q3 FY14 Average Revenue/FTE $9.9k down from $10.0k due to weaker RMB and the mix effect of the Guangzhou school acquisition

• China contribution to total Premium Schools EBITDA 50% Q3 FY14 vs 68% Q3 FY13

• Nord Anglia International School Hong Kong to open in September 2014

• Continued strong pricing power and moderate FTE growth across region

China

Q3 FY14 Revenue $48.0m from $41.2m 17% Q3 FY14 Adj. EBITDA $24.7m from $21.0m 18%

4,121

4,859 FTEs

Q3 FY13 Q3 FY14


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Highlights

• Utilization unchanged at 85%

• Q3 FY14 Average Revenue/FTE $8.8k up from $8.5k

• Moderate enrollment and fee growth in line with macroeconomic climate

Europe


3,779

4,532

FTEs

Q3 FY13 Q3 FY14


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Highlights

• Utilization 89% up from 83%

• Q3 FY14 Average Revenue/FTE $4.6k down from $5.5k due to acquisitions and growth in lower fee locations

• Acquired Dover Court School Singapore on April 22, 2014

• Acquired Northbridge International School Cambodia on July 10, 2014

• Nord Anglia International School Dubai to open in September 2014

• Continued strong growth across the region

Middle East / South East Asia


992

5,495 FTEs

Q3 FY13 Q3 FY14


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Highlights

• Utilization 81% up from 78% pro forma

• Q3 FY14 Average Revenue/FTE $7.4k down from $7.6k pro forma due to one off revenue benefit following the acquisition of WCL Group in FY13

• Construction commenced at new campus in Chicago to open in September 2015 with ~1,100 seats

• Strong demand for premium schools with multiple opportunities for growth

North America

Q3 FY14 Revenue $19.7m

NEW REGION

Q3 FY14 Adj. EBITDA $8.0m

NEW REGION

2,669 FTEs

Q3 FY13 Q3 FY14


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Highlights

• Q3 FY14 Net Debt $405.9m(1)

• LTM Q3 FY14 Net Leverage 3.2x

• Pro forma for the refinancing, interest expense would have been approximately $5.8m lower in Q3 FY14

Balance Sheet & Cash flow

Summary Cash flow

Nine Months Ended May 31,

($ millions) 2014 2013

Cash generated from operations 10.3 7.0

Interest paid (66.9) (35.1)

Tax paid (18.1) (17.4)

Net cash (used in)/from operating activities

(74.7) (45.5)

Net cash used in investing activities

(40.2) (105.6)

Net cash from financing activities 81.0 162.6

Net increase/(decrease) in cash and cash equivalents

(33.9) 11.5

Cash and cash equivalents at end of the period

138.2 124.0

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Deleveraging post IPO

4.5x

3.6x 3.2x

0x

1x

2x

3x

4x

5x

LTM Q2 FY14 LTM Q2 FY14 Proforma IPO

LTM Q3 FY14

Net Leverage

(1) Net debt calculated as the principal of debt outstanding less cash


Outlook

Set out below are the Company’s expectations for the full fiscal year 2014:

Outlook for Fiscal 2014

$ millions

Revenue $468 - $472

Adjusted EBITDA $125 - $127

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Planned capacity expansion over the Summer of 2014 includes:

• Aubonne

• Warsaw

• Budapest

• Bangkok

• Doha

• Al Khor

• Guangzhou

Business strategy - three growth methods

Dubai - opening September 2014

Hong Kong - opening September 2014

Chicago - new campus to open September 2015

Continually assessing new strategic opportunities.

Dover Court School Singapore acquired April 22, 2014

Northbridge International School Cambodia acquired July 10, 2014

Developing and working on strong pipeline of potential acquisitions.

Same school expansion

Greenfield development

Acquisitions

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Total capacity for September 2014 of c. 27,000 seats

Appendix


Set forth below is a reconciliation of EBITDA, Adjusted EBITDA and Adjusted Net Income to the most directly comparable IFRS measure, (loss)/profit for the following periods.

Reconciliation of Non-GAAP Financial Data

Three Months Ended May 31,


$ millions 2014 2013 2013 2014 2013 2013 (unaudited) Actual Actual Pro forma Actual Actual Pro forma

(Loss)/profit for the period (83.9) (3.1) 1.1 (65.8) 5.6 13.0 Income tax expense 9.5 6.4 7.9 22.7 18.7 18.0 Net financing expense(1) 13.4 16.1 18.9 46.4 35.5 43.9 Exceptional items(2) 94.3 2.9 (5.7) 96.8 5.6 (3.0) Amortization 2.4 0.9 2.0 7.3 2.8 5.9 Depreciation 6.9 2.4 3.8 17.6 7.4 11.7 EBITDA 42.6 25.6 28.0 125.0 75.6 89.5

Loss on disposal of PP&E(3) - - - - 0.1 0.1 FX loss/(gain) (4) 2.0 1.5 1.7 (2.7) 0.6 2.8 Loss making start-up schools(5) 0.2 0.3 0.6 0.4 1.2 2.1 Pre-acquisition & business integration costs(6)

- - 0.8 - - 0.8

Share based payments(7) 0.0 - 6.3 2.5 - 6.3 Management fees – Sponsor(8) 0.2 0.6 0.6 1.2 2.9 2.9 Other (0.0) 0.0 0.0 0.1 0.0 (0.1) Adjusted EBITDA 45.0 28.0 38.0 126.5 80.4 104.4

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*Please refer to the footnotes on our Form 6-K quarterly report.

Reconciliation of Non-GAAP Financial Data Continued

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$ millions 2014 2013 2013 2014 2013 2013 (unaudited) Actual Actual Pro forma Actual Actual Pro forma

Adjusted EBITDA 45.0 28.0 38.0 126.5 80.4 104.4

Depreciation (6.9) (2.4) (3.8) (17.6) (7.4) (11.7) Net Financing Expense(1) (13.4) (16.1) (18.9) (46.4) (35.5) (43.9) Income Tax Expense (9.5) (6.4) (7.9) (22.7) (18.7) (18.0) Tax Adjustments(9) (0.5) (0.2) (0.4) (1.5) (0.6) (1.2) Adjusted Net Income 14.7 2.9 7.0 38.3 18.2 29.6 Adjusted EPS(10) Basic 0.13 0.02 0.05 0.29 0.13 0.21 Diluted 0.13 0.02 0.05 0.29 0.13 0.21 Pro forma Adjusted EPS(11) Basic 0.15 0.03 0.07 0.39 0.19 0.30 Diluted 0.15 0.03 0.07 0.39 0.19 0.30


Detailed Profit & Loss



$ millions 2014 2013 2014 2013 (unaudited)

Revenue 138.5 89.4 410.5 268.0 Cost of sales (61.1) (41.0) (185.8) (123.5) Gross Profit 77.4 48.4 224.7 144.5

SG&A (34.8) (22.8) (99.7) (68.9) Depreciation (6.9) (2.4) (17.6) (7.4) Amortisation (2.4) (0.9) (7.3) (2.8) Exceptional expenses (94.3) (2.9) (96.8) (5.6) Total expenses (138.4) (29.0) (221.4) (84.7)

Operating (loss)/profit (61.0) 19.4 3.3 59.8 Finance income 0.3 0.4 1.4 1.6 Finance expense (13.7) (16.5) (47.8) (37.1) Net finance expense (13.4) (16.1) (46.4) (35.5)

(Loss)/profit before income tax (74.4) 3.3 (43.1) 24.3 Income tax expense (9.5) (6.4) (22.7) (18.7) (Loss)/profit for the period (83.9) (3.1) (65.8) 5.6 Earnings per ordinary share(1) (in dollars) Basic (0.76) (0.02) (0.50) 0.04 Diluted (0.76) (0.02) (0.50) 0.04

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Key Operating Data

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2014 2013 2013 2014 2013 2013 Actual Actual Pro forma Actual Actual Pro forma

Full-time equivalent students (average for the period)(1) China 4,859 4,121 4,121 4,828 4,067 4,067 Europe 4,532 3,779 4,455 4,512 3,769 4,447 Middle East/South East Asia 5,495 992 2,423 5,141 960 2,351 North America 2,669 - 2,469 2,642 - 2,417 Sub-total 17,555 8,892 13,468 17,123 8,796 13,282 Loss making start-up schools(2) 98 1,028 1,099 97 1,001 1,070 Total 17,653 9,920 14,567 17,220 9,797 14,352

Capacity (average for the period)(3) China 6,964 5,380 5,380 6,964 5,373 5,373 Europe 5,322 4,423 5,175 5,322 4,419 5,156 Middle East/South East Asia 6,191 1,200 3,291 5,858 1,200 3,291 North America 3,280 - 3,180 3,280 - 3,180 Sub-total 21,757 11,003 17,026 21,424 10,992 17,000 Loss making start-up schools(2) 480 1,500 1,980 480 1,500 1,980 Total 22,237 12,503 19,006 21,904 12,492 18,980


Key Operating Data Continued

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2014 2013 2013 2014 2013 2013 Actual Actual Pro forma Actual Actual Pro forma

Utilization (average for the period)(4) China 70% 77% 77% 69% 76% 76% Europe 85% 85% 86% 85% 85% 86% Middle East/South East Asia 89% 83% 74% 88% 80% 71% North America 81% - 78% 81% - 76% Sub-total 81% 81% 79% 80% 80% 78% Loss making start-up schools(2) 20% 69% 56% 20% 67% 54% Total 79% 79% 77% 79% 78% 76%

Revenue per FTE (in $ thousands)(5) China 9.9 10.0 10.0 30.0 29.4 29.4 Europe 8.8 8.5 8.1 26.6 26.5 25.1 Middle East/South East Asia 4.6 5.5 5.4 13.8 15.7 15.1 North America 7.4 - 7.6 22.2 - 21.6 Sub-total 7.6 8.9 8.1 23.0 26.6 24.0 Loss making start-up schools(2) 9.6 3.9 4.3 28.0 13.2 14.2 Total 7.6 8.4 7.8 23.1 25.3 23.3


For further information please contact [email protected]

nord anglia education 3 qfy2014 presentation vfinal2

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