Alive & Well

New CBT Exam –We Nailed it! New CBT Exam –We Nailed it!

PicsPics Go HereGo Here

Alive & Well

Pass rates –

Double the rate of non-Becker candidates

Pass rates –

Double the rate of non-Becker candidatesPicsPics Go HereGo Here

Alive & Well

Growth in distance learning product – from 25% to 40% of total revenue

Our revenue is steady

Growth in distance learning product – from 25% to 40% of total revenue

Our revenue is steady

Candidate numbers down 21%,number of exam sections down 57%

140,228

116,907 115,498106,079 108,573 109,729

87,127

020,00040,00060,00080,000

100,000120,000140,000160,000

1993 1998 2000 2001 2002 2003 2004*

Number of CPA Exam Candidates 1993-2003

Note * = first year of CBT (candidates from 4/5/04 - 3/31/05)

Source: Texas State Board of Public Accountancy Agency Strategic Plan 2005-2009 (citing NASBA); Illinois Board (citing NASBA)

Demand for qualified accountants is strong and getting stronger

Top 100 Accounting Firms’ Revenues ($Billions)

$28.3 $28.5$30.6

$33.2

$24$26$28$30$32$34

2001 2002 2003 2004Source: Accounting Today (3/14/05; 4/1/04; 3/17/03)

Strong affiliations

Firms

Universities

Firms

Universities

Not Resting On Our LaurelsIt’s All About The Candidates…

New For You –

SmartFinancing™

(May 05)

New For You –

SmartFinancing™

(May 05)

Not Resting On Our LaurelsIt’s All About The Candidates…

New For You –

Final Review

(July 05)

New For You –

Final Review

(July 05)

Not Resting On Our Laurels

Review Course– All-New lectures (Aug 05)

– PassMaster™: Next Generation (Aug 05)

– Extra mock final exam (Aug 05)

Review Course– All-New lectures (Aug 05)

– PassMaster™: Next Generation (Aug 05)

– Extra mock final exam (Aug 05)

It’s All About The Candidates…

“We can take a punch…”

Non-disclosed exam 1996

150-hour rule 1999-2001

Industry scandals 2001-2002

Computer based/on-demand exam 2004

Non-disclosed exam 1996

150-hour rule 1999-2001

Industry scandals 2001-2002

Computer based/on-demand exam 2004

“…and still stand strong”

CFA Market is at a CrossroadsHistorical Low Pass Rates

CFA Level 1 Exam Pass Rates

34%42%44%

49%52%

64%

0%10%20%30%40%50%60%70%

1999 2000 2001 2002 2003 2004

Perc

enta

ges

Source: CFA Institute

…and candidate counts are down 11%

Stalla Positioned As The New Solution

“Books & notes” alone aren’t getting the job done

Market ready for a clear alternative – “instruction & coursework”

Stalla has significantly enhanced its course offering, combining Becker expertise with consumer research

“Books & notes” alone aren’t getting the job done

Market ready for a clear alternative – “instruction & coursework”

Stalla has significantly enhanced its course offering, combining Becker expertise with consumer research

Getting More Aggressive WithSales & Marketing

New branding, society partnering and B2B selling force are combining to clearly differentiate Stalla from Schweser

New branding, society partnering and B2B selling force are combining to clearly differentiate Stalla from Schweser

Leveraging Channels in New Ways

Washington Societyof Investment Analysts

Leveraging our Brands

Continuing Professional Education– Targeting Fortune 500 companies

– Educating and training accounting and finance department staffs

• Sarbanes-Oxley 404 Compliance

Leverage our brands to sell life-long learning to meet regulatory and global market requirements

Continuing Professional Education– Targeting Fortune 500 companies

– Educating and training accounting and finance department staffs

• Sarbanes-Oxley 404 Compliance

Leverage our brands to sell life-long learning to meet regulatory and global market requirements