June, 2011

CORPORATE PRESENTATION

INVESTOR RELATIONS

WHY THIS IS “THE MOMENT” OF BRAZILIAN EDUCATION SECTOR?

STRENGTHENING THE FOUNDATIONS

Brazil

Chile

MexicoArgentina

France

South Korea

Germany

Japan

USA

Russia

Evolution

Per

form

ance

Zero

450

Performance and Evolution - Countries

Change in Educational Scenario in Brazil

57%

47%39%

32%25%

17%10%

1950 1960 1970 1980 1991 2000 2010

Illiteracy Rate - Brazil

2

Source: IBGE

3

Income Distribution(In millions of people)

Source: Cetelem - O Observador

Consumer’s Confidence

Unemployment Rate (%)

Source: BC, ACSP

Source: BC, ACSP

Aging Population

Source: IBGE

WHY THIS IS “THE MOMENT” OF BRAZILIAN EDUCATION SECTOR?

GOVERNMENT SUPPORT

Student Financing

Long-term financing to low-income students

3.4% p.a. nominal interests with 18-year term

No guarantor required from 2011 onwards

Allows further penetration in Classes C and D

Comparative Interest Rates

4

WHY THIS IS “THE MOMENT” OF BRAZILIAN EDUCATION SECTOR?

2004 2005 2006 2007 2008 2009 2010

2004 2005 2006 2007 2008 2009 20102004 2005 2006 2007 2008 2009

Credit in Brazil

Mortgage Lending in Brazil

Total Light Vehicle Sales

Financed Homes

+19%

+41%

+11%

+31%

CAGR

CREDIT EVOLUTION

5

WHY THIS IS “THE MOMENT” OF BRAZILIAN EDUCATION SECTOR?

New units constructed / acquired through housing finance in Brazil Source: BACEN

Evolution of brazilian mortgage amount financed. Source: CBIC/BACEN

Total number of light vehicles sold in Brazil(financed and non financed). Source: ANFAVEA.

Total amount of Credit in Brazil. Source: BACEN

2020 EDUCATION SECTOR 

6

Sensitivity Analysis– Annual Growth

Dro

p-ou

t Ra

te

“Conversion” of Working Adults

6,0 6,5 7,0 7,5 8,012,0 2,7 4,0 5,2 6,5 7,711,5 3,2 4,5 5,7 7,0 8,211,0 3,7 5,0 6,2 7,5 8,710,5 4,2 5,5 6,7 8,0 9,210,0 4,7 6,0 7,2 8,5 9,7

3,500Children Start High School 

Every Year

3,500Children Start High School 

Every Year

700 go straight to the Colleges

700 go straight to the Colleges

‐1,440 Graduated& Drop‐out

‐1,440 Graduated& Drop‐out

14,000 +  1,050 = 15,050Youngsters in Class C & D with High School Degree are out of the Colleges

14,000 +  1,050 = 15,050Youngsters in Class C & D with High School Degree are out of the Colleges

350 Private Higher Education Institutions

350 Public Institutions

350 Private Higher Education Institutions

350 Public Institutions

1,603 New Enrollments1,603 New Enrollments

163 New Students “Net" per Annum163 New Students “Net" per Annum

2.7% Growth Rate per Annum

2.7% Growth Rate per Annum

7,637 Total Enrollments Estimated for 2020

7,637 Total Enrollments Estimated for 2020

1,750 Graduated in High School

1,750 Graduated in High School

1,750 Drop‐out 

High School

1,750 Drop‐out 

High School 50%

1,050 stop studing

1,050 stop studing

60%

‐720 Graduated‐720 Drop‐out‐720 Graduated‐720 Drop‐out

12%

12%

903 Young Adults in Private Higher Education Institutions

903 Young Adults in Private Higher Education Institutions

6%

6,000 Total Base of The System

6,000 Total Base of The System

WHY THIS IS “THE MOMENT” OF BRAZILIAN EDUCATION SECTOR?

Governmenttarget: 

10,000 studentsby 2020

Governmenttarget: 

10,000 studentsby 2020

Break‐even CAGR:5% per year

Break‐even CAGR:5% per year

.

..

.

...

..

...

.

.

..

.

.

NATIONAL COVERAGE

241k students

72 campuses in 36 major cities in Brazil

51 accredited Distance-learning Centers

78 programs

ESTACIO’s Regional Footprint¹Highlights

ESTACIO AT‐A‐GLANCE

Key Figures

(1) Estácio also owns a University in Paraguay with 2.7 thousand students

University Center

University

College

In process to Upgrade to University Center

. Distance Learning Center

Nationwide operations, covering states that account

for 86% of GDP and 82% of population– Largest private post-secondary education group in Brazil

– Leading presence in the large and underserved working adults target group

– Diversified portfolio of programs with differentiated quality and competitive pricing

– First Brazilian education company listed in Novo Mercado

7

2335

141

178

218 206 210 241

1.9%

14.8%

COMPANY´S BACKGROUND

KEY MILESTONES

– New academic model

– 2005 – 2007: for-profit transformation

Greenfield Growth

Consolidation ofnational leadership

Listed Company

and preparation for growth

1970 … … 2002 … … 2007 2008… 80’s - 90’s …

# of students (‘000)

CAGR

Turn aroundTurn aroundIPO

OnFollow-On

– Acquisitions in the São Paulo market – GP acquires

20% of Estácio

– Estácio joins in Novo Mercado

– Organic growth

– M&A

– Efficiency gains

– Distance Learning

– Beginning of management restructuring

Note: Until 2007 the student base did not include graduate students.

2009 2010 2011

1.5%

41.7%

4.8%

22.5% (5.5%)

8

– Distance learning launching

– Shared Services Center (“SSC”)

MANAGEMENT TEAM WITH LARGE EXPERIENCE

9

Holds a bachelor’s degree in business administration from FGV and a bachelor’s degree in law from the USP Joined GP in 2005 as a Partner More than 15 years of investment banking experience as Head of M&A at DLJ-Brazil and Banco Garantia and as a Partner of Singular Served as Senior Vice President for Business Development and Board Member at UOL and Grupo Folha

Eduardo AlcalayChief Executive Officer

Rogerio MelziCFO and Investor Relations Officer

João Luís BarrosoDevelopment and Corporate Relations

Miguel de PaulaHuman Resources Officer

Paula CaleffiChief Academic Officer

Pedro GraçaChief Marketing Officer

Holds a bachelor’s degree in Mechanical Engineering from Mackenzie University, a bachelor’s degree in Business Administration from FGV and Master in Business Administration from Stanford University.

Suplly Chain Planning & Performance at Inbev/Labatt , Financial Planning Officer at Suzano Holding and Associate at Booz-Allen.

Virgilio GibbonChief Operating Officer

Holds a bachelor’s degree in Economy from the University Gama Filho, master and doctorate’s degree in Economy from the FGV Institutional Relations Officer at Vivo, CEO at CBS Security System, Corporate Support Director at CSN. RJ Secretary of the Treasury Chief and Assistant Secretary for Economic Policy of the Ministry of Economy, Planning and Finance

Holds a bachelor’s degree in Business Administration from Ulbra University, master in Business Administration at USP and STC Executive at Kellog University, Strategic Human Resources Planning at Michigan University.

HR general manager at Gerdau, HR Officer at Farmasa and HR Officer at Votorantim Cimentos Ltda.

Holds a bachelor’s degree in History from Universidade Católica/RS and doctorate’s degree at Universidad Complutense de Madrid. Served as Academic Development officer at University of Vale do Rio dos Sinos.

Holds a bachelor’s degree in System Analysis from Mackenzie University and postgraduate in Business Administration at FGV. Co-owner of ENAD and Sistema Energia de Ensino. Responsible for the Estacio’s Distance Learning start-up, expansion and consolidation.

Holds a bachelor’s degree and a graduate degree in Economy from PUC-RJ. Partner and Director at TOTVS Consulting and responsible for implementing Estácio’s Shared Services Center. More than 10 years experience at Consulting, mostly dedicated to Operations and Efficiency related projects.

TURN AROUND AND RESTRUCTURING

10

People & Culture

Processes & IT

Product & Marketing

PLATFORM FOR GROWTH & INNOVATION

KEY MILESTONES Seeding Harvesting

2335

141

178

218 206 210 241

1.9%

14.8%

COMPANY´S BACKGROUND

– New academic model

– 2005 – 2007: for-profit transformation

Greenfield Growth

Consolidation ofnational leadership

Listed Company

and preparation for growth

1970 … … 2002 … … 2007 2008… 80’s - 90’s …

# of students (‘000)

CAGR

IPO

Follow OnFollow-On

– Acquisitions in the São Paulo market – GP acquires

20% of Estácio

– Estácio joins in Novo Mercado

– Organic growth

– M&A

– Efficiency gains

– Distance Learning

– Beginning of full management restructuring

Note: Until 2007 the student base did not include graduate students.

2009 2010 2011

1.5%

41.7%

4.8%

22.5% (5.5%)

11

– Distance learning launching

– Shared Services Center (“SSC”)

Turn aroundTurn around

Focus on the means towardsustainable results

12

PROCESSES ‐ SSC

PROCESSES STANDARDIZATION AND CENTRALIZATION

72 CAMPUSES7.2K TEACHERS3.5K ADM. EMPLOYEES241K STUDENTS36 LOCATIONS

INTE

GRA

TIO

N

SERV

ICE

LEVE

L AG

REEM

NEN

TCENTRALIZATION SCALE

STANDARDIZATION EFICCIENCY

HUMAN RESOURCES & PAYROLL

ACCOUNTING

BILLING & COLLECTION

INTEGRATION

ACADEMIC OPERATIONS & REGULATORY

PROCUREMENT

TECNOLOGY

300 FTE250k invoice/month8k payment/month17k MEC processes360k candidates18 balance sheets

SSC

2009

13

Academic Solution400 thousand

students

Over the next 3 years Estácio will invest R$30 mm to completely redefine its technology platform in order to boost performance and increase reliability to users.

CHANGING THE PLATFORM FOR GROWTH

Adding New Features

CRM

Students briefcase (scanned documents)

High performance

PROCESSES – LOOKING AHEAD

NEW IT ARCHICTECTURE

PRODUCT 

14

NEW ACADEMIC MODEL

Reduced costs …

Improved gross margin

Integrated curricula with shared disciplines

20% of distance learning content in on-

campus programs

20% of self-learning activities

OTHERS

Innovation and product reengineering aiming at better quality at competitive pricing

... with quality and differentiation

Higher attraction and retention of

students

41 programs updated to labor market

demands (90% of Estácio’s current student

base)

Tailor made text books bundled in tuitions

Comprehensive student portal

On-line library with more than 2,000 titles

ESTACIO

UNIQUE PRODUCT OFFERING

Quality curricula

Improved access to learning tools

Accessible prices

Bundled in financing

15

CONTINUOUS INNOVATION

16

PEOPLE & CULTURE

Getting the right people at the right place– Expertise in education combined with experience from several industries

– Visits to campuses are constant in CEO’s agenda– Monthly Performance Meetings with regional divisions– COO visited all units more than once over the last 2 years

Aligning people through meritocracy & variable compensation– Stock option to 48 senior executives (up to 4.5% of capital to be granted)– More than 300 managers with individual, monthly tracked goals driving their variable compensation (financial and

non financial)– 20% of professors with variable compensation based on performance

CULTURE

Estacio’sway

Attracting and retaining new talents– Trainee programs and accelerated career planning based on meritocracy– Culture set to groom internal talents for self-sustained growth– Excellence in human talents in all levels is top priority

– Zero-based budgeting– Matrix budgeting– Business Intelligence

– “Gestão a vista”– Six Sigma – Benchmarking

Using managerial tools to develop and improve processes & results

Managing by “walking around” to guarantee execution and disseminate culture

CHALLENGE TO IMPLEMENT ALL THE CHANGES...

17

Fixing the company – Ex.: returning with program coordinators (R$ 12 mm/year)

Developing an entirely new product

Cleaning up student base

Creating a new culture

Revamping company’s image

Investing in infra structure, technology and services

Holding inflationary pressures and…

Dealing with labor tax (INSS) ramp up (@ R$16mm/year)

15

30

45

60

2007 2008 2009 2010

INSS RAMP UPBrazilian Social Security Institute(in R$ millions)

...WITHOUT LOSING MARGINS

EBITDA MARGIN 

Main Operating Indicators(‘000)

2008 2009 2010

Total Student Base 218.3 205.7 210.0

On-Campus 218.3 196.1 183.8

Distance Learning - 9.6 26.2

Main Financial Indicators¹(R$ million)

2008 2009 2010

Net Revenue 980.0 1,008.8 1,016.2

Cost of Services (629.1) (656.6) (657.5)

Sales (83.9) (91.6) (95.3)

G&A (177.7) (151.7) (148.8)

EBITDA 98.4 119.1 127.3

Margin EBITDA 10.0% 11,8% 12.5%

¹ Excluding Depreciation and non recurring items.

18

10.0%11.8% 12.5%

17.4%

16.8%

19.9%21.7%

26.2%

2008 2009 2010 1Q11

EBITDA Margin EBITDA Margin ex. the Brazilian Social Security Institute (INSS)

RESULTS 

Changing the tire without parking the car

...AND IMPROVING QUALITY

COURSES EVALUATION ON‐SITE VISITS 2010/11

19

58

60

64

56 56

62

2008 2009 2010

PESA Corporate Climate

PESA AND CORPORATE CLIMATE 

46 Courses

50 Courses

9 Courses7 Courses

Grade 3 Grade 4 Grade 5 No grade

Source: Copernicus, Hay.

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People & Culture

Processes & IT

Product & Marketing

STRONG FOUNDATION

2011 – LAST YEAR OF LABOR TAX STEP‐UP…

TIME TO HARVEST

ORGANIC GROWTH & MARGIN GAINS

21

3% Market growth + inflation pass-through

800 basis points over 4 years (2011-2014)

200

200

150

250

800

New academic model

Faculty costs

Other costs

G&A

Total

Benchmarking / Matrix and Zero-based Budgeting/ Centralization

Dilution through M&A and Distance Learning

Online / Sharing / Off-class activities

Academic planning

DISTANCE LEARNING

22

From zero to 30 thousand students in 1.5 years

Expect to reach 80 thousand students in 4 years

High-quality product, using campuses as centers

11 programs and growing

Opportunity to increase coverage

6.2 7.5

14.919.2

22.3 23.728.2

1.62.1

1.5

1.7

2.42.5

2.7

3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11

(Students in thousands)

+296.2%

24.7

20.9

16.4

9.67.8

Graduate

Undergraduate

26.2

30.9

DISTANCE LEARNING GROWTH

NEW PRODUCTS

23

Revamp Graduation Programs

Preparatory courses

Take advantage of Distance Learning platform

Cross Selling

Academia do Concurso

Over 29,000 students in 2010

R$ 10.4 million net revenue in 2010

Corporate Universities

Non regulated short-term products

EXECUTIVE DIRECTOR FOCUSED ON NEW PRODUCTS

M&A

24

ACQUISITIONS WITH DISCIPLINE

North and NE48

Central Brazil30

SP and South32

Rio de Janeiro10

Region><# of Targets>

120

2.314 privateEntities

IRR Valuation

Post-Audit

Targets for variable compensation

linked to Business Plan

Size over 2 thousand students Attractive cities Strategic fit Assets quality

Main Financial Indicators(R$ million)

1Q10 1Q11 Chg

Net Revenue 256.0 275.8 7.7%

Cost of Services (158.6) (168.7) 6.4%

Gross Margin 35.9% 36.8% 2.5%

Sales (24.4) (29.0) 18.9%

G&A (36.6) (36.1) -1.4%

EBITDA 39.6 47.9 21.0%

Margin EBITDA 15.5% 17.4% 1.9 p.p.

* Excluding depreciation and non recurring items.

1Q11 FIRST RESULTS

25

2nd time in a row… all times record for intakes

48.9 61.5

10.212.0

1Q10 1Q11

59.173.5

Distance LearningOn‐Campus Total Student

+24.4%

33.0 39.26.4

11.1

3Q09 3Q10

39.6 50.3+27.0%

STUDENT INTAKES

2 new greenfield campuses Sulacap

Chacara Flora

4 M&A Atual

FAL

Academia do Concurso

FATERN

EXPANSION

4.500 students

2.400 students

29.000 students

3.350 students

Chacara Flora 

Sulacap

Atual

Quality + Profitability = Sustainability

CONCLUSION

26

Investor Relations:Flávia de Oliveira

E‐mail: flavia.oliveira@estacio.brPhone: +55 (21) 3311‐9789Fax: +55 (21) 3311‐9722

Address: Av. Embaixador Abelardo Bueno, 199 – Office Park – 6thfloorCEP: 22.775‐040 – Barra da Tijuca – Rio de Janeiro – RJ – Brazil

Website: www.estacioparticipacoes.com/ir

This presentation may contain forward‐looking statements concerning the industry’s prospects and Estácio Participações’ estimated financial and operating results; these are ereprojections and, as such, are based solely on the Company management’s expectations regarding the future of the business and its continuous access to capital to finance EstácioParticipações’ business plan. These considerations depend substantially on changes in market conditions, government rules, competitive pressures and the performance of thesector and the Brazilian economy as well as other factors and are, therefore, subject to changes without previous notice. We are a holding company, and our only assets are ourinterests in SESES, SESSA and IREP, and we currently hold 99.9% of the capital stock of each of these subsidiaries. Considering that the Company was incorporated on March 312007, the information presented herein is for comparison purposes only, on a proforma unaudited basis, relative to the first three months of 2007, as if the Company had beenorganized on January 1 2007. Additionally, information was presented on an adjusted basis, in order to reflect the payment of taxes on SESES, our largest subsidiary, which fromFebruary 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 thePROUNI – University for All Program (“PROUNI”). Information presented for comparison purposes should not be considered as a basis for calculation of dividends, taxes or for anyother corporate purposes.

IR CONTACTS

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