fte guidance china dc oct 2016 v final 09102016

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1 Nord Anglia Education October 2016 Update October 10, 2016

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Page 1: Fte guidance china dc oct 2016 v final 09102016

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Nord Anglia EducationOctober 2016 Update

October 10, 2016

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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.

Disclaimer

Page 3: Fte guidance china dc oct 2016 v final 09102016

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student enrollment

for 2016/17

Page 4: Fte guidance china dc oct 2016 v final 09102016

2,225

446

September 2015 Same Schoolgrowth

China DC Schools September 2016

organic enrollment growth for the start of 2016/17

4

average 4% tuition fee increases implemented across the group for 2016/17

FTEs1

2

1 Full time equivalent students.

2 As at September 2016 China Dual Curriculum Schools comprises Nord Anglia Chinese International School, Shanghai (‘NACIS’)

Page 5: Fte guidance china dc oct 2016 v final 09102016

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capacity expansion

Fiscal 2017 starting utilization 6

( excluding NACIS)

New build expansion:

NACIS, Shanghai

seats

New campus British

International School of Houston

seats (net increase

seats)

seats existing school

expansion across 5 regions

Capacity

2,365

3,450

September 2015 Existing schoolexpansion

New buildSchools

September 2016

Page 6: Fte guidance china dc oct 2016 v final 09102016

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dual curriculum strategy

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Chinese dual curriculum school successful opening

NACIS opened September 2016

446 starting FTEs / 2,250 seat capacity (20%

utilization)

Investment ~$31m

Expected breakeven1 year 1 / maturity2 year 3

~40%+ adjusted EBITDA margin expected at maturity

ROI3 74% at maturity

1 Breakeven measured at Adjusted EBITDA level

2 Maturity means 80% utilization.

3 ROI calculated as Adjusted EBITDA / total capital investment, including

capital expenditure to opening and operating losses prior to break

even, at maturity.

-

5

10

15

20

25

-

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2,000

Year 1 FY17 Year 3 FY19F

Enrolment Adjusted EBITDA

Avera

ge F

TE

’s

Adju

ste

d E

BIT

DA

US

Dm

Page 8: Fte guidance china dc oct 2016 v final 09102016

market with strong fundamental drivers

Parents prioritize child’s education

Growth of school age population

Increasing disposable income

Access to foreign universities

Government support for private

investment in education

Key drivers of private K12

education growth in China:

Shanghai premium dual curriculum

market1:

1 Private dual curriculum schools charging more than

$10,000 per annum in tuition.

2 Company estimates 2015.

Market size

Growth rate

Students

Page 9: Fte guidance china dc oct 2016 v final 09102016

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Establishing dedicated

Jian Tang - CEO Nord Anglia Chinese International Schools

15 years experience as Managing Director Nord Anglia International Schools in China

Co-founder of the first Nord Anglia School in China – British International School

Shanghai

Opened or integrated all existing Nord Anglia schools in China

Strong knowledge and experience of K-12 education in China

Corporate

Development

Team

IT

TeamFinance

Team

HR

Team

Marketing and

Communications

Team

IT

Team

Expected cost to establish dedicated China Dual Curriculum team in fiscal 2017

(to be added back in calculating Adjusted EBITDA)

Education

Team

Page 10: Fte guidance china dc oct 2016 v final 09102016

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and roll out plan

Schools Schools

2016/17NACIS Shanghai

opened Sept. 2016

2017/18Launch one new

additional school

2018/19Launch two new

additional schools

2019/20Launch five new

additional schools

SchoolsSchools

Page 11: Fte guidance china dc oct 2016 v final 09102016

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performance

Page 12: Fte guidance china dc oct 2016 v final 09102016

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organic FTE growth

seats of capacity added to

Guangzhou

average tuition increases

Excludes new dual curriculum

school

China

Commentary

5,727 5,858

8,9269,242

September 2015 September 2016

FTEs Capacity

Page 13: Fte guidance china dc oct 2016 v final 09102016

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organic FTE growth

seats of capacity added to

Madrid, Warsaw, Bratislava and

Budapest

average tuition increases

Europe

Commentary

6,4566,856

8,617

9,691

September 2015 September 2016

FTE Capacity

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organic FTE growth

seats of capacity added to Dubai

and Al Khor

Tuition increases subject to

government approval

Middle East

Commentary

5,2645,611

5,8516,187

September 2015 September 2016

FTE Capacity

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organic FTE growth

seats of capacity added to

Singapore and Bangkok

average tuition increases

South East Asia

Commentary

7,295

8,190

12,09712,561

September 2015 September 2016

FTE Capacity

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organic FTE growth

seats of capacity added to

Houston (new campus) and Miami

average tuition increases

North America

Commentary

9,4359,887

13,507

14,882

September 2015 September 2016

FTE Capacity

Page 17: Fte guidance china dc oct 2016 v final 09102016

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fiscal 2017

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Nord Anglia Education is providing its full year

outlook for fiscal 2017:

1. Diluted weighted average shares of approximately 104.5 million

FY17 guidance

Revenue $925 – $945 million

Adjusted EBITDA $207 – $217 million

Adjusted Net Income$67 – $72 million

Adjusted EPS1

$0.64 – $0.69

Page 19: Fte guidance china dc oct 2016 v final 09102016

Adjusted EBITDA

19

207.5 212.0

FY16 Midpoint ofGuidance

FX(Constant Currency)

Organic EBITDAgrowth

SLB &new Houston rent

New Global CampusExpenses

FY17 Midpoint ofGuidance

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