Education Development International plc Final Results Presentation 24 November 2009

1. Education Development International plc • Final Results Presentation • 24 November 2009 • Nigel Snook, Chief Executive • Paul Bird, Finance Director

2. Introduction • Breakthrough year. • Acquisitions fully integrated. • Winning market share. • Operational gearing. • Margin growth. • Currency exchange rates.

3. Revenue up by 32% to £28.3m (2008: £21.5m). Operating profit £8.1m (2008: £2.7m). Adjusted operating profit £8.6m (2008: £3.3m)*. Tax losses of £4.3m utilised, effective corporation tax rate of 25%. Basic earnings per share 11.3p (2008: 6.0p). Adjusted earnings per share 16.2p (2008: 6.2p). Net cash generated from operations £8.5m (2008: £4.5m). Final dividend of 1.2p per share recommended bringing total dividend to 1.6p (2008: 0.42p). * Profit on ordinary activities before taxation adjusted for the amortisation charge on acquired intangible assets. Financial Headlines

4. Growth Analysis Main revenue movements: £000s

5. Margins

6. Cash Generation Net cash from operations £8.5m (2008: £4.5m). Cash conversion ratio 93%. Net free cash flow £6.6m (2008: £400k). Hedging Forward contracts to sell, totalling £7.6m, in place to September 2012. US Dollar and linked, £4.2m from $1.52 to $1.66. Euro, £3.4m from €1.10 to €1.15. Treasury Cash at year end £9.5m (2008: £3.2m). Working capital requirement £2.5m (2008: £2.5m). No debt or borrowings. Free cash deposited with three major UK clearing banks. Cash and Treasury

7. Proforma Profit/EPS Adjusted fully diluted EPS comprises profit after tax adjusted for amortisation charge on acquired intangible assets.

8. Net Assets Key Points: Goodwill £7.2m – no impairment. Acquired intangible assets – net book value £589k to be amortised over next 14 months. AEC Education plc investment £670k. 3m shares (7.0%) – 1m purchased in March placing. Capital policy to expense development costs wherever possible. Trade debtors £2.8m (2008: £2.3m): - Year end debtor days 36 (2008: 38) - Bad debt provision, 0.9% of revenue

9. Financial Trends

10. Segmental Performance UK Qualifications and Assessment Services Vocational qualifications sales up 55% (10/12% market share). Main sectors: business skills, care, road passenger transport and key skills. Major contract win with esg Group. Blue chip clients – Sainsbury’s, Virgin Media, Qantas. Review of sales to schools. International Qualifications Like-for-like sales up 10%. New South East Asia agency arrangements bedded-in. Five year agreement with Germany agent. Actively recruiting new representatives. Strategic projects with governments – Germany, Malaysia, Hong Kong, China. Support and Broadband Services i-assess softwaresales flat but usage up 3%. Phasing out low margin administration contracts. Broadband products/sales strategy. Revenue Split Support services 10% International services 27% UK services 63% UK Competition Edexcel - Market share growing - BTEC growth in college market - New MD City and Guilds - Market share falling - Slow growth, bureaucratic - New CEO OCR - Market share flat - Focus on academic qualifications All - Distraction of new Qualifications and Credit Framework - Reorganisation of funding bodies

11. Organisation Development • Senior team strengthened and new structure implemented: • High level IT expertise • Integrated sales and product teams for UK and international services • Research and innovation team • Sales and marketing capacity increased: • Set up marketing and communications department • Middle management structure for expanded sales teams • Major upgrade of Campus administration platform commenced: • £2.0m investment over two years • Staff training and development focus: • Strengthened HR department • Investors in People and ISO 9001:2000

12. Business Fundamentals • Government accredited and regulated. • Business to business service provider – partnership approach. • Growing market share and profile in UK. • International exposure – exclusive rights to LCCI brand. • Operational leverage – bespoke operating system. • Strong cash generation and reserves. • Experienced Board and management. • Focus on excellence – Investors in People, ISO 9001:2000, EFQM and environmental policy.

13. Market Fundamentals • Complex regulatory and administrative context. • No significant exposure to economic cycle – demographic influence. • Both main UK political parties committed to vocational education and training. • Global investment of public, corporate and personal funds in skills development. • Visibility of revenues – annual education cycle and long-term customer relationships. • High level of customer retention – limited ‘churn’/long sales cycle. • Growing demand for ‘just-in-time’ and customised services.

14. Strategy for Growth Potential Acquisition Areas Specialist publishing. Specialist software. Business psychometrics. Professional training services. Organic Investment Programme Campus/IT infrastructure upgrade. Marketing and sales capacity. Research and innovation. Management and staff development. • UK Vocational Qualifications (market size £350m+, college and work-based) • Grow revenues organically 20% year-on-year. • Become market leader in work-based learning market. • International Qualifications (market size £1bn+) • Grow revenues organically 10% year-on-year. • Exploit the status of LCCI brand. • Support Services (market size £100m+) • Consolidate around high value software contracts.

15. Background Annex

16. What We Do • Provide government regulated assessments and quality assurance for education and training programmes. • Education Expertise • Design and implement assessment strategies for vocational training programmes. • Endorse and certificate in-company training programmes. • Prepare syllabi and examination papers, and administer international business qualifications. • Software Engineering Expertise • Design, build and operate sophisticated online assessment and testing services. • Design, build and operate sophisticated online administration systems. • Provide customised software and broadband services. • Business Operations Expertise • Partner and critical friend, not inspector. • Professional, structured approach to marketing and selling. • Industry leading customer service and support.

17. Marketplace Illustrative course costs The Players Awarding Bodies/Exam Boards Exams and Assessments. EDI, Edexcel, City and Guilds, OCR, AQA, professional bodies and 100’s of others £50 (High margin) Publishers Pearson, Nelson Thornes, Hodder and Stoughton and 1000’s of others Learning materials, books and online. £150 (Mid margin) Schools and Colleges Primary and secondary schools, FE colleges, private trainers – BPP, Melorio – and 10,000’s of others £800 (Low margin) Education and training programmes. £1000 In-house and/or outsourced Delivery and administration software. Logistics.

18. Business Segments • UK • 1,500 customers and extensive product range of over 380 vocational qualifications. • Market leader with private training companies and for service sector qualifications. • 10/12% share of vocational qualifications market, up from 3% in 2003. • Growing demand from corporate clients. • Limited exposure to schools’ market – over 650 users of GOAL online assessments. • International • 4,000+ customers in over 100 countries for a range of 65 business qualifications: • - Accountancy, mainly South East Asia • - English for Business, mainly Europe • Branded London Chamber of Commerce and Industry under licence. • Agency operations and/or representatives in 17 countries. • Support Services • Small scale software/logistics/broadband services.

19. Corporate Background • April 2000: IPO, as GOAL plc. • December 2002: Education Development International plc formed through a merger with the London Chamber of Commerce and Industry Examinations Board (founded 1887). • 2004 – 2007: Seven bolt on company and product acquisitions, all fully integrated. • Major organisation and systems development programmes completed. • Management and Staff • NXD’s: Richard Price, Sir Bryan Nicholson and Barrie Clark. • Senior team: education, software and business expertise. • 182 full-time staff, 263 associates, 17 international agents/representatives.