CSFB 7th Annual Global Services Conference March 15, 2005

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CSFB 7th Annual Global Services ConferenceMarch
15, 2005
Making Education Achievable for Working Adults
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Safe Harbor Language
This presentation contains statements that are
forward-looking and are made pursuant to the
"safe-harbor" provisions of the Private
Securities Litigation Reform Act of 1995 ("Reform
Act"). The statements are based on the Company's
current expectations and are subject to a number
of uncertainties and risks. In connection with
the Safe Harbor provisions of the Reform Act, the
Company has identified important factors that
could cause the Company's actual results to
differ materially. The uncertainties and risks
include the pace of growth of student enrollment,
our continued compliance with Title IV of the
Higher Education Act and the regulations
thereunder, as well as state and regional
regulatory requirements, competitive factors,
risks associated with the opening of new
campuses, risks associated with the offering of
new educational programs and adapting to other
changes, risks associated with the acquisition of
existing educational institutions, risks relating
to the timing of regulatory approvals, our
ability to implement our growth strategy, and
general economic and market conditions. Further
information about these and other relevant risks
and uncertainties may be found in the Company's
annual report on Form 10-K and its other filings
with the Securities and Exchange Commission, all
of which are incorporated herein by reference and
which are available from the Commission. We
undertake no obligation to update or revise
forward-looking statements.
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Strayer Education, Inc.

• Strong industry fundamentals
• Established brand
• High product quality
• Consistent operating history
• Owner-oriented management team
• Compelling financial model
• Double digit revenue and net income growth
• Sustainable high operating margins
• Strong free cash flow and return on capital
• Multiple channels for long-term growth

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Widening Earnings Gap
80,000
69,804
4 Years of College
70,000
60,000
58,249
95
50,000
43
40,593
40,000
30,000
High School Diploma
35,744
20,000
1970
1999
Source U.S. Census Bureau. Represents most
recent data available.
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Strayer University

• 23,000 students
• 113-year history
• Focus on working adults
• Middle States accredited programs
• Convenient program offerings / high quality
  faculty
• 32 campuses in 8 states and Washington, D.C.
• Robust online program offering

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High Quality Academic Programs
Programs
Academic Majors
ComputerInformationSystems30
Undeclared4
Business /Economics52
Diploma2
Associates12
Masters24
Other 4
Bachelors58
Accounting14
Winter Term 2005
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Our Strategic Vision
Maintain High Academic Quality
Ensure Stable Performancein Our Mature Markets
Open New Campuses
Internal Growth
Expand Strayer University Online
Develop Corporate / Institutional Alliances
External Growth
Careful Deployment of Excess Cash
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Mature Markets Ensure Stable Performance
Strayer has 17 campuses classified as mature in
2005 Winter term.
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Strayer Campuses 2001

• Concentrated in the Washington, D.C. region

• Baltimore, MD (2)
• Washington, D.C. (6)
• Northern Virginia (4)
• Richmond, VA (2)

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Strayer Campuses Today

• Strategically situated in attractive East Coast
  metro areas

• Baltimore, MD (3)
• Washington, D.C. (6)
• Northern Virginia (4)
• Richmond, VA (2)
• Philadelphia. PA (3)
• Norfolk, VA (2)
• Raleigh-Durham, NC (2)
• Charlotte, NC (2)
• Nashville, TN (1)
• Memphis, TN (2)
• Greenville, SC (1)
• Atlanta, GA (2)
• Tampa, FL (2)

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A Leading Online Program Offering
Strayer University OnlineWinter Term Enrollment

• 826 courses offered in the 2005 Winter Term
• Synchronous and asynchronous programs
• Ability to learn anytime, anywhere
• Students from all 50 states and multiple countries

12,276
Students taking 100 classes Online
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Corporate Alliances

• Potentially large recurring volume
• Minimal credit risk
• Some classes offered on site
• Strayer has maintained approximately 20 of
  revenue from sponsored students
• 4 largest accounts in 2001 have grown at 40 CAGR
  to 2004

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Deployment of Excess Cash
Sources and Uses of Cash (2001-2004)
190
190
Millions
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Enrollment Growth
Enrollment (Winter Term)
18.7 CAGR
8.4 CAGR
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Financial Performance
Revenues( in Millions)
Earnings Per Share (, diluted)
Operating Income( in Millions)
Excluding 2003 asset sales
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Significant Cash Generation

• The majority of net income each year is
  distributable cash flow

(Dollars in millions)
Excluding 2003 asset sales
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Q4 2004 Results/Q1 2005 Outlook
Q4 2004 Results
Q1 2005 Outlook

• Total Winter Term Enrollment up 18
• Online Enrollment up 53
• EPS Guidance 0.91-0.93

• Total Revenues up 21
• Income from Operations up 23 (excluding 2003
  gain on asset sale)
• EPS of 0.89, up 24 (excluding 2003 gain on
  asset sale)

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2005 Business Model

• New Campuses 5
• Enrollment 15 - 18 growth
• Tuition 5 increase
• Revenue 19 - 22 growth
• Operating Margin 35.0 - 35.5
• Diluted EPS 3.20 - 3.30
• Diluted Shares Outstanding 15,000,000

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Summary

• The post-secondary education market is a large,
  rapidly growing, and highly attractive industry
• Strayer is a high-quality education company with
  an excellent business model which generates
  strong free cash flow and has no debt
• If successful in executing our strategy, Strayer
  should deliver substantial growth in shareholder
  value

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CSFB 7th Annual Global Services ConferenceMarch
15, 2005
Making Education Achievable for Working Adults