The American School of Milan

1. The American School of Milan ASM Team 1 Elena Churilova Felipe Cruvinel Iacopo von Wunster Seok-yoon Yeo

2. Agenda • History and background • Business model and financial performance • Competitive analysis and result of the survey • SWOT and next steps for ASM

3. Brief Introduction • The American School of Milan (ASM) is a private international school situated in the outskirts of Milan, Italy • ASM incorporates over 40 different countries amongst its student population • It provides a US-structured education for grades Pre-kindergarten up to the end of High School • The Primary school (grades 1~2) offers education in English for young learners • The Intermediate school (grades 3~5) is arranged in what is called the “Mixed-age” • The Middle school (grades 6~8) follows the Middle Years Program (MYP) • The High school (grades 9~12) offers the International Baccalaureate (IB) course • University prospects world wide: UK and US, but also Switzerland, Korea, France, etc. • Environment is very open and welcomes ethnic, cultural and religious diversity Despite the name, the American School of Milan is a very international school

4. The American School always placed more importance on education rather than on profits since its foundations • In the last few years, ASM has experienced increasing demand, especially from the international communities and hence is planning on building additional facilities to the current structure. • Founded by Daniel E. Gilioli • Group of parents who wanted to give an American education to their children • Started as a subset of the Anglo-American School Srl. • Parents’ aim was creating an educational, non-profit institution. • In the last few years, ASM has experienced increasing demand, especially from the international communities and hence is planning on building additional facilities to the current structure.

5. The school has widened its appeal and attracted an increasingly international student population Entire school population divided by nationality High school population Number of foreign students nearly tripled while number of Americans fell by nearly 40%

6. Agenda • History and background • Business model and financial performance • Competitive analysis and result of the survey • SWOT and next steps for ASM

7. Most of ASM’s revenues are from tuition, but it has other sources of income which must not be neglected Weight of revenue 84.1 % 6.3 % Total ASM 2008 revenue Tuition Bus service fees Interest (from tuition) US Government Grant Miscellaneous xxxx K€ xxxx K€ xxxx K€ xxxx K€ xxxx K€ xxxx K€ 0.3 % 2.4 % 6.8 %

8. The American School of Milan is a Non-Profit Organization 09/10/2014 8

10. P&L analysis (II) Y Axis Revenues variable expenses fixed expenses Profit 09/10/2014 10

11. Agenda • History and background • Business model and financial performance • Competitive analysis and result of the survey • SWOT and next steps for ASM

12. ASM’s competitors are primarily three • ASM’s playing field can be defined as: • Private • Pre-kindergarten to 12° grade (high school) • University application preparations for colleges world-wide • ASM = American School of Milan • SJHS = Sir James Henderson School • ISM = International School of Milan ISM Via Gentile Bellini 1 International private school following the full IB program SJHS Via Pisani Dossi Carlo Alberto 16 British private school following the IB for students going to UK. ASM Via Karl Marx 14 International private school for students of all nationalities following IB program

13. ASM’s geographical location is not so attractive to newcomers ASM’s location is a comparative weakness. (It’s degree can be seen in the next slide)

14. ASM currently has the lowest number of students in its market segmentation Number of students (2008) 09/10/2014 14

15. In the past the American School of Milan lost its position as the largest international school in Milan. CAGR (1981~2008) (2003~2008) 5.7% ** 4.0% ** 3.5% ** 4.1% ** 1.3% 6.6% * Count includes the Monza school as well ** Estimates based on recorded data points In the last 5 years ASM has accelerated its growth and it appears to be catching up with SJHS.

16. Comparison / promotion Schools prices Header Header Header Header • Text • Text • Text • Text • Text • Text • Text • Text • Text • Text • Text • Text • Text • Text • Text ASM zzz xx

17. ASM and SJHS achieve comparatively high levels in overall student satisfaction Sectors weighted based on number of questions Very poor Excellent Survey areas Though ISM location is rated highest, it does not offer transport services Average: 3.02 3.00 2.32 Standard deviation: 0.29 0.36 0.58 ASM has consistently good satisfaction in all areas, while SJHS displays wide variations in satisfaction across survey areas and ISM lags behind in all areas

18. The educational program offered is the most appealing aspect of ASM Also includes university prospects If because he/she knows someone there or the family is related to the school somehow. ASM has the best educational prospect to offer: college applications to US, UK, and many other schools world-wide; relation, location and extracurricular activities are more important for SJHS and ISM students

19. Quality of education

20. The weaknesses of ASM can be countered with certain factors only unique to itself The poor location of ASM can be countered by its sport facilities, cafeteria and auditorium; all factors which the other schools have difficulty scoring high due to difficulties regarding space

21. Agenda • History and background • Business model and financial performance • Competitive analysis and result of the survey • SWOT and next steps for ASM

22. SWOT Analysis If ASM maintains its high standards, with the construction of the new site, it will be able to surpass the other international schools

23. Future development plans • From Iacopo • Expectation: to increase student number to 850 by 2011