2014 Results

Rogério Melzi | CEO

Virgílio Gibbon | CFO

Long Term→ Estácio 2020

Discipline to Strategy

Sector consolidation

FIES

Corporate Culture

Innovation

Quality System

Focus on the Students and their Employability

Investments in Service and Hospitality

Branding

2020 Academic Model

Adequate level of returns to ours shareholders

Corporate Governance2

Estácio: Pillars of Growth

Until 2008 2009 20102011 2012

2013

2015-2020

Disorganized Growth Turnaround Harvesting the Results Future

2014

We painted the entire Map Blue!

On-campus + DL

63%58% 59%

72%77%

2010 2011 2012 2013 2014

3

Harvesting the Results

Employee Satisfaction

56% 56%62%

65% 65%68%

73%

2008 2009 2010 2011 2012 2013 2014

58% 60%64% 64% 67% 68%

73%

2008 2009 2010 2011 2012 2013 2014

PESA – Student Satisfaction Survey (On-Campus) PESA – Student Satisfaction Survey (DL)

65,0 95,0 92,0 123,0210,0

320,0

533,0

6,6%

9,4% 9,1%10,7%

15,2%

18,5%

22,2%

2008 2009 2010 2011 2012 2013 2014

218 206 210 240

272

316

437

2008 2009 2010 2011 2012 2013 2014

4

Harvesting the Results

CAGR => 12.3%

CAGR => 42.1%

Post Secondary Student Base (excl. technical / short-term courses)

EBITDA(R$ million)

(000’ students)

Operational Performance

436,0

652,4

168,8

235,4

4Q13 4Q14

NET REVENUE - 4Q14

604.8

887.7+46.8%

+49.6%

Average Ticket (In R$) 4Q13 4Q14 Change

On-campus 525.6 580.6 10.5%

Distance Learning 179.6 189.7 5.6%

STUDENT BASE

255,0301,7

60,7

83,0

52,7

4Q13 4Q14

315.7

+38.5% 437.4

+18.3%

(000’ students)

Distance Learning

On Campus

Total Student Base

Aquisitions - 12 months

(In R$ million)

Net Revenue Deduction

Gross Revenue

Note:Total base including undergraduate and graduate students.

+36.7%

1.731,0

2.404,5

760,0

1.011,5

2013 2014

NET REVENUE - 2014

2,491.0

3,416.0+26.3%

+25.1%

(In R$ million)

Net Revenue Deduction

Gross Revenue

5

Cost and Operational Expenses

Vertical Analysis

(% of Net Operating Revenue)4Q13 4Q14 Change 2013 2014 Change

Cash Cost* -59.7% -54.1% 5.6 p.p. -57.1% -54.3% 2.8 p.p.

Personnel -36.1% -33.7% 2.4 p.p. -35.6% -34.7% 0.9 p.p.

Brazilian Social Security Institute (INSS) -8.1% -6.5% 1.6 p.p. -7.2% -6.8% 0.4 p.p.

Rentals. Condominium Fees and

Municipal Property Tax-8.3% -7.2% 1.1 p.p. -8.0% -7.3% 0.7 p.p.

Textbooks Materials -3.6% -3.5% 0.1 p.p. -2.8% -2.5% 0.3 p.p.

Others -3.6% -3.1% 0.5 p.p. -3.4% -2.9% 0.5 p.p.

Selling Expenses -10.1% -9.7% 0.4 p.p. -10.6% -9.9% 0.7 p.p.

PDA -7.5% -6.0% 1.5 p.p. -5.5% -4.3% 1.2 p.p.

Marketing -2.6% -3.7% -1.1 p.p. -5.1% -5.6% -0.5 p.p.

G&A Expenses* -15.2% -15.9% -0.7 p.p. -13.8% -13.7% 0.1 p.p.

*Cost of Services and G&A expenses excluding depreciation.6

7

EBITDA

EBITDA – 4Q14

65,8

133,1

15,1%

20,4%

4Q13 4Q14

EBITDA EBITDA Margin

EBITDA – 2014

EBITDA EBITDA Margin

(In R$ million) (In R$ million)

1EBITDA in accordance with the CVM instruction 527, does not consider Operating Financial Result

+102.2% +66.3%

320,3

532,6

18,5%

22,2%

2013 2014

Net Average Days Receivables

Accounts Receivables (R$ MM) 4Q13 1Q14 2Q14 3Q14 4Q14

Gross Accounts Receivables 423.8 528.4 520.9 641.5 573.2

FIES 78.9 147.2 128.6 222.2 149.7

Tuition Monthly Fees 289.4 305.3 329.0 333.5 354.0

Agreement Receivables 30.2 43.0 35.0 47.4 38.7

Others 26.1 31.6 24.2 31.7 24.0

Provision for Doubtful Accounts (90.0) (92.0) (93.1) (101.7) (115.0)

Net Accounts Receivables 334.6 435.2 423.7 533.0 451.4

Net Revenues (Last 12 months) 1,731.0 1,856.0 2,001.5 2,315.5 2,518.5

Days Receivables 70 84 76 83 65

Net Revenue Ex. FIES (Last 12 months) 1,179.2 1,193.4 1,216.4 1,410.5 1,472.7

Days Receivables Ex. FIES and FIES Revenue 78 87 87 79 74

8

FIES

FIES Accounts Receivable (R$ MM) 4Q13 1Q14 2Q14 3Q14 4Q14

Opening Balance 100.2 78.9 147.2 128.6 222.2

(+) FIES Net Revenue 171.4 225.7 289.6 296.3 321.8

(-) Transfer 180.9 146.5 293.8 190.6 378.3

(-) FIES Deduction/Provision 11.1 10.8 14.5 14.8 16.0

(+) Acquisitions -0.7 - - 2.6 -

Ending Balance 78.9 147.2 128.6 222.2 149.7

FIES Carry-Forward Credits (R$ MM) 4Q13 1Q14 2Q14 3Q14 4Q14

Opening Balance 0.3 44.4 63.6 82.4 50.0

(+) Transfer 180.9 146.5 293.8 190.6 378.3

(-) Tax payment 50.7 40.5 70.8 70.2 78.9

(-) Repurchase auctions 86.2 86.8 204.3 152.8 265.9

(+) Acquisitions - - - - -1.8

Ending Balance 44.4 63.6 82.4 50.0 81.7

FIES Average Days Receivables 4Q13 1Q14 2Q14 3Q14 4Q14

FIES Days Receivables 80 115 97 108 809

10

Cash Flow

Cash Flow Statement (R$ million) 4Q13 4Q14 2013 2014

Profit before income taxes and social contribution 50.6 81.2 256.7 432.9

Adjustments to reconcile profit to net cash generated: 57.0 93.8 187.6 222.5

Result after reconciliation to net cash generated 107.6 175.0 444.3 655.4

Changes in assets and liabilities: (109.7) (50.4) (245.0) (232.7)

Net cash provided by (used in) operating activities: (2.2) 124.7 199.3 422.7

CAPEX (Ex-Acquisitions) (56.0) (61.6) (132.3) (189.1)

Operational Cash Flow: (58.2) 63.1 67.0 233.6

Other investing activities: (7.1) (70.1) (40.6) (1,016.0)

Net cash provided by (used in) investing activities (65.2) (7.0) 26.4 (782.4)

Cash flows from financing activities: (1.6) 287.2 572.3 758.3

Net cash provided by (used in) financing activities (66.9) 280.2 598.7 (24.1)

Cash and cash equivalents at the beginning of the period 806.1 434.9 140.5 739.2

Increase in cash and cash equivalents (66.9) 280.2 598.7 (24.1)

Cash and cash equivalents at the end of the period 739.2 715.1 739.2 715.1

11

UniSEB Integration

Distance-learning undergraduate intake

- 2014.3 → +165%

- 2014.4 → +20%

Migration of a portion of the student base from the

telepresence model to the 100% online model

Conclusion of the first wave of students migrating

from partner centers to Estácio’s own units

43% of the centers will be accredited to offer

distance-learning undergraduate courses under

the Estácio system

Medical course → 40 places - 41,6 candidates for

each place

More:- Standardization of visual identity

- Relationship and training actions of UniSEB’s

employees

Distance Learning Operation

CSC

Integração de Processos

Back-office integration

Standardization of financial and accounting

processes

Synergy gains

Significant improvement of 4T14 x 3T14

results, with increasing revenue and earnings

in G&A Expenses

12

UniSEB Results

Income Statement UniSEB(R$ million)

3Q14 4Q14 2H14

Gross Operating Revenue 30.7 35.3 66.1

Gross Revenue Deductions (5.8) (7.0) (12.9)

Net Operating Revenue 24.9 28.3 53.2

Cash Cost of Services (8.5) (12.1) (20.6)

Personnel (6.7) (9.8) (16.5)

Rentals / Real Estate Taxes Expenses (1.0) (1.0) (2.0)

Textbooks Materials (0.4) (0.7) (1.2)

Third-Party Services and Others (0.3) (0.6) (0.9)

Cash Gross Income 16.4 16.2 32.6

Gross Margin 65.9% 57.2% 61.2%

Selling Expenses (2.5) 1.4 (1.2)

Provisions for Doubtful Accounts (1.9) 1.6 (0.3)

Marketing (0.7) (0.2) (0.9)

General and Administrative Expenses (5.6) (1.4) (7.0)

Personnel (2.6) (0.0) (2.6)

Others (3.0) (1.4) (4.4)

EBITDA 8.2 16.1 24.3

EBITDA Margin 33.1% 56.9% 45.8%

Financial result (1.2) (1.0) (2.3)

Depreciation and amortization (1.4) (1.4) (2.8)

Social Contribution (0.3) (0.6) (1.0)

Income Tax (1.0) (1.8) (2.8)

Net Income 4.4 11.2 15.6

Net Income Margin 17.5% 39.6% 29.3%

13

New Loan

Final cost of the operation

Principal in US$ = 61.2MM

Term = 361 days

Rate in USD = 1.4625% p.y. + Income Tax

Technical Features - Loan Technical Features - Swap

Principal in US$ = 61.2MM

Principal in R$ = 200.0MM

Term = 361 days

Rate in USD = 1.9500% p.a.

Rate in R$ = CDI + 0.12% p.a.

(100.8% of CDI)

14

About FIES

Government Students

• Do not discuss matters related to the size of the FIES...

• We are putting all our efforts to respect the contracts which were previously agreed

• FIES program is important for the student’s professional development and for Brazil in general. In this

context, we will continue working for its sustainable expansion

15

About FIES –Estácio’s Strategy

• We are fully confident about our growth potential and the student’s interests for enrollment

due to our Product, our market recognition and our team

Assessing the

student´s profile

proactively

Searching financial

alternatives

Reducing exposure

gradually

Focusing even more in

Estacio attributes

Not depending on FIES

especially when it

comes to attract new

students

Focusing on student

with financial problems

Minimizing adverse

selection

Remaining below the

national average

penetration FIES

2011 - 2014 2015 – Future

16

2015 Intake Process

“This intake paves the way for another set of great results in 2015, thus keeping the pace of our 20-Mile March

and showing the strength of our management model, our brand, and our team.”

Thousand 1Q141Q15

Min Max

On-Campus Undergraduate 302.8 18% 20%

On-Campus Same Shops 296.1 15% 17%

Intake (Same Shops) 99.0 8% 13%

Renewal (Same Shops) 197.1 18% 19%

On-Campus Asquisitions1 - 17.9

Assisted Transfer Process (PTA) 6.7 - -

Distance Learning Undergraduate2 73.0 41% 44%

Intake (Same Shops)3 29.017% 21%

Intake (UniSEB)3 7.0

Renewal (Same Shops) 44.0 15% 16%

Distance Learning Acquisition4 - 18.9

Total Undergraduate 375.8 23% 25%

1On-Campus acquisitions in 1Q15 (17,900 students).2 For comparability, we do not consider UniSEB’s intake in the 1Q14 student base.31Q15 growth considering proforma figures for UniSEB (7,000 new enrollments).4UniSEB’s distance learning undergraduate (renewal).

17

Inspiring

“Brazil is never as good as it could be, but it's not as bad as

they say. We may not be at our best time, but the larger

operations we had happened in times of crisis. The market

and the entrepreneurs of Brazil are very good, so it's best to

look forward, to see how to make the best of the troubles,

and what you can do more. "

• Keep the same EBITDA target that had been negotiated with our Board of Directors before

the announcement of the changes in FIES program

• Seek an equivalent cash position for this years’ end which is equivalent to the one we

projected before the publication of the Ordinances.

IR Contacts

This 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.

Investor Relations:

Flávia de Oliveira

Arthur Assumpção

Fernanda Assis

Email: ri@estacio.br

Phone: +55 (21) 3311-9789

Fax: +55 (21) 3311-9722

Address: Av. Embaixador Abelardo Bueno. 199 – Office Park – 6th floor

ZIP Code: 22.775-040 – Barra da Tijuca – Rio de Janeiro – RJ – Brazil

Website: www.estacioparticipacoes.com/ir