E N D
Certain statements contained in these presentation concerning DeVry’s future performance, including those statements concerning DeVry’s expectations or plans, may constitute forward-looking statements subject to the Safe Harbor Provision of the Private Securities Litigation Reform Act of 1995. These forward-looking statements generally can be identified by phrases such as DeVry Inc. or its management “believes,” “expects,” “anticipates,” “foresees,” “forecasts,” “estimates” or other words or phrases of similar import. Actual results may differ materially from those projected or implied by these forward-looking statements. Potential risks, uncertainties and other factors that could cause results to differ are described more fully in Item 1A, “Risk Factors,” in the Company's most recent Annual Report on Form 10-K for the year ending June 30, 2006 and filed with the Securities and Exchange Commission on September 13, 2006. Forward-Looking Statements
Daniel Hamburger President and Chief Executive Officer
Julio Torres, President, DeVry University-Florida Rick Gunst, Chief Financial Officer Dave Pauldine, President, DeVry University Paul Eppen, Chief Marketing Officer Tom Vucinic, President, Becker Professional Review Steve Riehs, Vice President, DeVry University Online Tom Shepherd, President, Ross University Joan Bates, Director of Investor Relations Philip Kranz, Dresner Corporate Services DeVry Management
Compelling long term investment From turnaround to growth mode Unmet education need Diversified portfolio, common purpose Focused on our students’ success DeVry Inc.
Medical & Healthcare Professional & Training DeVry University • DeVry University • Keller Graduate School of Management • Assoc., Bach., Master’s degrees • 52,000 students; 84 locations • Best-in-classonline • Ross University • 3,700 students; Dominica, St. Kitts and Miami • Largest supplier of MDs • Chamberlain College of Nursing • ASN, BSN • 600 students; Missouri and Ohio • Unique online programs • Becker CPA Review • Stalla CFA Review • Becker-Gearty CPE • Center for Corporate Education • 43,000 students; 30 countries
Compelling Investment Opportunity Attractive industry structure Opportunity to significantly increase operating margin Management committedto growth plan Best risk-adjusted investment Quality and integrity
Education IndustryCollege Enrollment (in millions) Total Enrollment Is 17.7 Million Students Privately - Funded 13.1 Publicly - Funded 3.4 Market - Funded 1.2 • 75 million adults without a college degree • Biggest growth areas: Technology, Businessand Healthcare Source: U.S Department of Education
Attractive Industry Structure Supplier Power (Low) The postsecondary education industry is highly attractive • High barriersto entry • Low threat of substitutes • Low buyer power Barriers to Entry (High) Competitive Rivalry (Low) Threat of Substitutes (Low) • Buyer Power • (Low) • Positive cash cycle Source: Michael Porter, Competitive Strategy: “5 Forces Analysis”
Demographics Minorities Are Fastest Growing Segment of College Enrollments CAGR Native American +30% Asian American +28% Hispanic/Latino +30% African American +27% White + 6% Source: U.S Department of Education, NCES, IPEDS
Serving Minority Students WellTop Degree Producers Computer and Information Sciences and Support Services – Total Minority Baccalaureates 1. DeVry University – California 2. American Intercontinental University 3. DeVry University – Illinois 4. University of California – Irvine 5. University of Maryland – University College 6. DeVry University – Georgia 7. Strayer University – Washington Campus 8. University of Maryland – Baltimore County 9. University of Phoenix – Online 10. New Jersey Institute of Technology Source: Diverse Issues in Higher Education, June 2006
Five-Year Strategic Plan Optimize the Core Business Aggressively Grow Online Expand Internationally Diversify Build Infrastructure for Growth
Optimize the Core Increase high school enrollment and continue adult student growth Implement market-driven, local strategies Improve execution Optimize real estate configuration
Five-Year Strategic Plan Optimize the Core Business Aggressively Grow Online Expand Internationally Diversify • “Vertical” curricula • “Horizontal” levels Build Infrastructure for Growth
Aggressively Grow Online • Best of both: online and onsite • Improve service and retention • New programs for associate degree market • Graduate education programs
Five-Year Strategic Plan Optimize the Core Business Aggressively Grow Online Expand Internationally Diversify • “Vertical” curricula • “Horizontal” levels Build Infrastructure for Growth
Technology BSTM Business HIT BMET RN-to-BSN Education Healthcare Applied Arts Diversify – Vertical Curricula
Diversify – Horizontal Levels DeVry focused on higher level programs PhD PhD ’ ’ s s MASTER’S MASTERS BACHELOR BACHELOR ’ ’ S S ASSOCIATE ASSOCIATES Career college market opportunity: • 7 of top ten fastest growing occupations • Enhanced lead conversion • Online capabilities • We intend to re-enter the career college market
Diversify – Horizontal Levels PhD PhD ’ ’ s s MASTERS MASTER’S BACHELOR BACHELOR ’ ’ S S ASSOCIATE ASSOCIATES
Diversify – Horizontal Levels Integrated onsite, online and self-study Enhance B2B relationships Build brands, eg: double the pass rate Grow internationally
Five-Year Strategic Plan Optimize the Core Business Aggressively Grow Online Expand Internationally Diversify Build Infrastructure for Growth
Expand Internationally • Identify high-priority opportunities • Specific entry strategy for each market • Acquisitions • Leverage Online, Becker International
Five-Year Strategic Plan Optimize the Core Business Aggressively Grow Online Expand Internationally Diversify • “Vertical” curricula • “Horizontal” levels Build Infrastructure for Growth Financial | Technology | Human Resources
Human Resources Strategy • New managers • Become employer of choice • Strong internal training programs • Culture of high performancewith integrity
Five-Year Strategic Plan Optimize the Core Business Aggressively Grow Online Expand Internationally Diversify • “Vertical” curricula • “Horizontal” levels Build Infrastructure for Growth Financial | Technology | Human Resources
Why Invest in DeVry? Attractive industry structure Increasing operating margins Strong team executing5-part growth strategy Best risk-adjusted investment Quality and integrity
“Doing Well by Doing Good” Solving shortage of nurses, doctors Scholarships First in family to go to college