Country Template

1
UVM Strategy
Luis Lopez, Vice President Mexico City, Mexico
January 11-12, 2006
2
The Chile Case Market Share Growth
Post-Secondary Enrollments
2004
425,000
Higher Participation Rates Drive Market Growth
and Revenues
30
2000
Revenue (1) 167 million
319,000
Participation Rate
Revenue 19 million
LAUR Market Share Increases in Growing Market
20
1.2
10
0
Market Share
10
University Market for Undergraduate and Graduate
Enrollment Chart Not To Scale (1) Chile Region
Revenues
3
Mexico Attractive Opportunity for Market Share
Post-Secondary Enrollments
2010
3.6 million
30
2004
2.3 million
Participation Rate
Revenue 700-800 million
Revenue 182 million
Market Share Growth
10
1.9
5
0
Market Share
8
University Market for Undergraduate and Graduate
Enrollment Chart Not To Scale
4
New Markets
Tijuana
Cities with population over 500,000
Mexicali
Cd. Juarez
Existing UVM campuses
Chihuahua
Potential
Monterrey
Reynosa
Population 2006 ('000)
Culiacan
Tampico
4,500
Merida
Cancun
4,042
4,000
3,714
Leon
3,500
Veracruz
Morelia
3,000
2,500
2,085
Cuernavaca
Oaxaca
Acapulco
2,000
1,569
1,513
1,484
1,500
1,161
1,114
937
919
896
895
809
1,000
751
721
712
679
658
645
623
623
603
595
571
533
516
510
500
0
León
Tuxtla
Toluca
Mérida
Saltillo
Oaxaca
Puebla
Tijuana
Morelia
Torreón
Mexicali
Veracrúz
Cancún
Tampico
Acapulco
Culiacán
Reynosa
Monterrey
Cd. Juárez
Querétaro
Chihuahua
Cuernavaca
Hermosillo
Guadalajara
Villahermosa
Aguascalientes
San Luis Potosí
Source CONAPO
5
Market Segmentation
Elite
Full-time campus-based
Mexico New Platforms
Working Adult
Technical / Vocational
Non-degree / Short courses
6
Working Adult Engine for Growth

• Characteristics of Program
• Traditional undergraduate degree catered to adult
  students
• Modular (two or three courses at a time)
• 2 or 3 nights a week and Sat. morning
• 12 class hours and 3 online hours weekly
• Finish in 3 years (vs. 4.5)
• Requirements to Enter
• High school degree
• 24 years of age
• Work Experience
• Student Profile
• Average Age 32
• Majority have never studied post-secondary
• Scale
• Degrees Offered 11
• Campuses 19
• Scale of mid-sized UVM campus

Today I made the decision to fill this blank
space, without sacrificing my family or my job.
7
Multiple Avenues for Growth in Mexico

• Market Share (grow or maintain)
• Analytics
• Quality
• Positioning
• Marketing and Sales
• Infrastructure

• Working Adult
• Different price categories
• Online

• Build vs. Buy

• Hospitality
• Health Sciences

8
Replicable Campus Development Model
Risk Management
BUY
BUILD

• Market Research
• Target Identification
• Due Diligence

• Market Analysis (market size, competition, public
  vs. private)
• Site Identification
• Land Purchase

Analytics

• Price Deal Structure
• Profitability

Economics

• Margin Ramp-up

• Standard Construction Model architecture plans,
  permits, construction, scaling of speciality
  infrastructure over time

• CapEx requirements to meet UVM quality threshold

Key Investments

• UVM Brand Launch
• Laureate Network Programs
• UVM Sales and Marketing Methods

Marketing
9
Dynamic Focused Operation The Mexico Case
Base Business
New Campuses

• New Programs
• Campus Expansions
• Permanent Competitive Edge (UEM, Glion, Walden)
• PR / Govt. Affairs

• Construction
• (CAPEX, permits, marketing)
• Aguascalientes
• Puebla
• Toluca
• Guadalajara
• Saltillo
• Torreon
• New

• Acquisition
• (Integration, CAPEX, MA ...)
• Lago
• Hispano
• UNO
• New

• ENROLLMENT
• BUDGETING
• ORGANIZATION
• EXECUTION

Enrollment / Retention
New Business Lines

• Working Adult (LX)
• 7 to 19 Campuses (2003-05)
• New Market Segment
• Team and Strategy in Place
• Online
• Walden, LX, Targeted Undergraduate Content

• Academic Quality
• Service Quality

10
Luis Lopez, Vice President Mexico City, Mexico
January 11-12, 2006