1CONFIDENTIAL

Centro Escolar University

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Outline

• Overview of Centro Escolar University • Financial Information• Annex 1: Degree Programs Offered by CEU• Annex 2: Market Overview• List of References

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CENTRO ESCOLAR UNIVERSITY

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Background

• A private, nonsectarian higher education institution established in 1907• Attained university status and was registered as a corporation with the Securities and

Exchange Commission in 1932• Became a publicly listed corporation on November 10, 1986• Has three campuses: Manila, Makati and Malolos with an enrollment of 22,438 for the first

semester and 20,262 for the second semester of school year 2013-2014• Highly recognized for its programs in the health sciences (Dentistry, Pharmacy, Medical

Technology, Optometry and Nursing)• The recognitions from several institutions attest to its quality programs: Full Autonomy Status

from the Commission on Higher Education, Institutional Accreditation certified by the Federation of Accrediting Associations of the Philippines, Philippine Quality Award by the Philippine Government, ISO 9001:2008 System Certification and Papal Award Pro Ecclesia Et Pontifice (For the Church and the Pope)

• Recognized by the Institute of Corporate Directors (ICD) as one of the top 15 publicly listed corporations with the highest scores in ICD's 2008 Corporate Governance Scorecard, Silver Category

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Campus Location

Malolos Campus

Manila Campus

Makati Campus

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Ownership and ManagementUniversity Officers

Position NameChairman Basilio C. Yap Vice Chairman, President/ Chief Academic Officer Dr. Ma. Cristina D. Padolina Vice President for Administration Irineo C. Espino Corporate Secretary and Compliance Officer Atty. Sergio F. ApostolVice President for Academic Affairs Dr. Teresa R. PerezVice President for Research and Evaluation

Maria Clara Perlita Erna V. Yabut

Acting Vice President for University Registrar Dr. Rhoda C. AguilarVice President for Student Affairs Carlito B. OlaerVice President and Dean of Studies, Malolos Campus Flordeliza L. AnastacioVice President, Makati Campus Olivia M. LimuacoTreasurer/ Asst. Corporate Secretary and Asst. Compliance Officer Cesar F. TanAsst. Treasurer and Procurement Department Head Corazon M. TiongcoAsst. Controller Bernardita T. Traje

CEU Board of DirectorsPosition Name

Chairman Basilio C. Yap Vice Chairman Ma. Cristina D. Padolina Director Benjamin C. Yap Alejandro C. Dizon Emilio C. Yap III Johnny C. Yap Corazon M. TiongcoIndependent Director Emil Q. Javier Angel C. Alcala

Stockholder % OwnershipUSAUTOCO, Inc 34.00%U.S. Automotive, Co., Inc. 15.02%Alejandro C. Dizon 13.43%Southville Commercial Corporation 7.97%Others 29.58%Total 100.00%

Source: 2014 Annual Report

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School/ College Deans

School/ College DeansPosition Name

School of Accountancy & Management Prof. Melito S. SalazarSchool of Law & Jurisprudence, Makati Justic Josue N. BellosilloCollege of Medical Technology Dr. Charito M. BermidoSchool of Education, Liberal Arts, Music & Social Work Dr. Teresita G. CareyCollege of Business & Technology, Malolos Dr. Nilo V. FranciscoActing-School of Dentistry Dr. Pearly P. LimCollege of Education, Liberal Arts & Science, Malolos Dr. Elizabeth C. RocesSchool of Pharmacy Dr. Cecilia D. SantiagoSchool of Science & Technology Dr. Julieta Z. DungcaSchool of Nursing Dr. Teresita I. BarceloCollege of Optometry Dr. Jessica F. Torre School of Nutrition & Hospitality Management Dr. Cecilia C. Uncad

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Course OfferingsManila Makati Malolos

Undergraduate School of Education, Liberal Arts, Music and Social BS Nursing College of Education, School of Accountancy and Management BS Medical Technology Department of PharmacySchool of Dentistry BS Pharmacy Department of NursingSchool of Medical Technology BS Pharmacy specialized in Clinical Department of DentistrySchool of Nursing BS Psychology College of Management School of Nutrition and Hospitality Management Associate in Arts College of HospitalityCollege of Optometry BS Business Administration School of Pharmacy BS Tourism ManagementSchool of Science and Technology BS Computer Science

BS Information TechnologyBS Hotel and Restaurant Doctor of Dental Medicine

Graduate Master of Arts Master of Business AdministrationMaster of Arts in EducationMaster of Arts in NursingMaster of Business AdministrationMaster of Public AdministrationMaster of Science in Hospitality ManagementMaster of Science in Health Science EducationMaster in Information TechnologyDoctor in PhilosophyDoctor of EducationDoctor in Public AdministrationPost Doctoral Course in Total Quality Management

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FINANCIAL INFORMATION

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Stock Information: CEU:PM

Source: Bloomberg (As of 14 April 2015)

Market Capitalization (in PHP) 3,746,488,864.00

Outstanding Shares 372,414,400

Listed Shares 372,414,400

Issued Shares 372,414,400

Free Float Level (%) 26.76%

Last Traded Price 10.06

Open 10.06

High 10.06

Low 10.06

Average Price 10.06

52-week high 12.00

52-week low 9.80

Volume 2,700

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Income Statement (in PHP mn) 31-Mar-12 31-Mar-13 31-Mar-14 31-Mar-15 ERevenues Tuition and other school fees 1,405.58 1,448.42 1,550.56 1,641.77 Interest income 5.41 6.51 4.22 5.58 Auxiliary services 0.30 (0.98) 1.72 1.54 Miscellaneous 26.71 26.39 27.25 20.52 Total Revenues 1,438.01 1,480.34 1,583.75 1,669.42

% Growth 2.9% 7.0% 5.4% Expenses Cost of services 966.24 965.77 1,076.30 General and administrative expenses 149.72 170.55 160.04 Interest expense 15.41 13.02 10.41 Loss on sale/retirement of assets 1.28 0.24 0.71 Provision for impairment losses - 5.29 -

% Growth 1,132.64 1,154.87 1,247.45 1,289.38 2.0% 8.0% 3.4% Income before income tax 305.37 325.47 336.30 380.04 Provision for income tax (32.18) (34.84) (34.87) (39.41)Net Income 273.19 290.63 301.43 340.63

% Growth 6.4% 3.7% 13.0%

Financial Highlights

Source: Company filings

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Financial Highlights

Source: Company filings

Balance Sheet (in PHP mn) 31-Mar-12 31-Mar-13 31-Mar-14

Current Assets 243.96 293.16 384.61

Total Assets 3,145.66 3,222.84 3,342.33

Current Liabilities 318.77 363.44 387.89

Total Liabilities 807.64 877.98 881.28

Retained Earnings/(Deficit) 782.09 793.41 871.38

Stockholders' Equity 2,338.02 2,344.87 2,461.05

Book Value per share (PHP/share) 6.28 6.30 6.61

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Comparable Companies

FEU CEU Mapua STIMarket Capitalization (in PHP mn) 15,653 4,074 8,912 7,131 Revenues T12M (in PHP mn) 2,563 1,620 2,236 2,148 EBITA T12M (in PHP mn) 1,105 476 912 779 Net Income T12M (in PHP mn) 909 912 638 531 Assets FY2014 (in PHP mn) 8,503 779 4,729 8,299 P/E TTM 17.2x 11.3x 14.0x 13.4x Current EV/Revenue TTM 7.0x 2.2x 3.8x 3.5x Current EV/EBITDA TTM 16.2x 7.4x 9.3x 9.7x P/B 2.4x 1.7x 2.7x 1.0x ROE 13.9% 14.6% 19.1% 7.5%

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Valuation

Net Income x P/E

Revenue x Current EV/Revenue

EBITDA x Current EV/EBITDA

1,000,000,000

3,000,000,000

5,000,000,000

7,000,000,000

9,000,000,000

11,000,000,000

13,000,000,000

Low High Average MedianP/E TTM 11.3x 17.2x 14.0x 13.7x Current EV/Revenue TTM 2.2x 7.0x 4.1x 3.7x Current EV/EBITDA TTM 7.4x 16.2x 10.7x 9.5x P/B 1.0x 2.7x 1.9x 2.0x

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ANNEX 1: DEGREE PROGRAMS

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Undergraduate Degrees in CEU Manila• School of Education, Liberal Arts, Music and Social Work

– Bachelor of Secondary Education major in • English • Mathematics • Biological Science • Physical Science

– Bachelor of Elementary Education Specialization in • Pre-school Education • Special Education

– Bachelor of Science in Social Work – Bachelor in Library and Information Science

- Associate in Library and Information Science – Bachelor of Arts (Curriculum A) major in

• Mass Communication - Broadcast • Mass Communication - Journalism • Mass Communication - Performing Arts • Political Science

– Bachelor of Arts with 18 units of Education (Curriculum B) major in • Mass Communication - Broadcast • Mass Communication - Journalism • Mass Communication - Performing Arts • Political Science

– Bachelor of Music – Bachelor of Music – Music Education – Secondary Teacher Certificate (STC) 18 units of Education – Elementary Teacher Certificate (ETC) 18 units of Education

• School of Accountancy and Management – Bachelor of Science in Business Administration in

• Financial Management • Marketing Management • Operations Management • Management Accounting

- Associate in Accounting Technology • Management

– Bachelor of Science in Accountancy (5 years) – Bachelor of Science in Legal Management

• School of Dentistry – Doctor of Dental Medicine

- Associate in Arts (Pre-Dental Course)

• College of Medical Technology – Bachelor of Science in Medical Technology

• School of Nursing – Bachelor of Science in Nursing

• School of Nutrition and Hospitality Management – Bachelor of Science in Hotel and Restaurant Management

- Associate in Hotel and Restaurant Management – Bachelor of Science in Tourism Management – Bachelor of Science in Nutrition and Dietetics

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Undergraduate Degrees in CEU Manila• College of Optometry

– Doctor of Optometry

• School of Pharmacy – Bachelor of Science in Pharmacy (4 years)

– Bachelor of Science in Pharmacy specialized in Clinical Pharmacy (5 years)

– Doctor of Pharmacy (6 years)

• School of Science and Technology – Bachelor of Science in Psychology

– Bachelor of Science in Biology

– Bachelor of Science in Cosmetic Science

– Bachelor of Science in Computer Science- Associate in Computer Science

– Bachelor of Science in Information Technology- Associate in Information Technology

– Bachelor of Science in Computer Engineering

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Undergraduate Degrees in CEU Makati• Gil Puyat

– Bachelor of Science in Nursing

– Bachelor of Science in Medical Technology

– Bachelor of Science in Pharmacy (4 years)

– Bachelor of Science in Pharmacy specialized in Clinical Pharmacy (5 years)

– Bachelor of Science in Psychology

– Associate in Arts (Pre-Dental Course)

• Legaspi – Bachelor of Science in Business Administration major in Management

– Bachelor of Science in Tourism Management

– Bachelor of Science in Computer Science - Associate in Computer Science

– Bachelor of Science in Information Technology- Associate in Information Technology

– Bachelor of Science in Hotel and Restaurant Management- Associate in Hotel and Restaurant Management

– Doctor of Dental Medicine

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Undergraduate Degrees in CEU Malolos• College of Education, Liberal Arts and Science

– Bachelor of Science in Psychology

– Bachelor of Arts in Mass Communication (Curriculum A) • Broadcast

• Journalism

– Bachelor of Arts with 18 units of Education in Mass Communication (Curriculum B) • Broadcast

• Journalism

– Bachelor of Elementary Education Specialization in Special Education

• Department of Pharmacy– Bachelor of Science in Pharmacy

• Department of Nursing– Bachelor of Science in Nursing

• Department of Dentistry– Doctor of Dental Medicine

• Associate in Arts (Pre-Dental Course)

• College of Management and Technology– Bachelor of Science in Business Administration major in

• Marketing Management

• Financial Management

• Management Accounting - Associate in Accounting Technology

• Management

– Bachelor of Science in Information Technology- Associate in Information Technology

• College of Hospitality– Bachelor of Science in Tourism Management

– Bachelor of Science in Hotel and Restaurant Management

- Associate in Hotel and Restaurant Management

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Graduate School Degrees in Manila• Master or Arts

– Educational Management – Southeast Asian Studies – In Applied Linguistics (English) – Teaching – Music Education

• Master of Arts in Education– Childhood Education – Library Science – Special Education

• Master of Arts in Nursing– Administration

• Master of Business Administration

• Master of Business Administration– Financial Analysis

• Master of Public Administration

• Master of Science in – Biology – Cosmetic Science – Dentistry Field of Specialization:

• Orthodontics • Periodontics

– Guidance and Counseling – Mathematics Education – Nursing (Medical-Surgical Nursing) – Nutrition and Dietetics – Pharmacy – Psychology – Science Education – Social Work

• Master of Science in Hospitality Management – Tourism Management – Hotel and Restaurant Management – Leisure Management

• Master of Science in Health Science Education – Dental Education – Medical Technology Education – Optometry Education

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Graduate School Courses in Manila and Makati

• Master in Information Technology

• Doctor in Philosophy– Business Management – Guidance and Counseling – Southeast Asian Studies – Higher Education Management

• Doctor in Philosophy in – Mathematics Education – Pharmacy

• Doctor in Philosophy/ Doctor of Education– Curriculum and Supervision – Educational Management – Science Education

• Doctor in Public Administration

• Post Doctoral Course in– Total Quality Management in Higher Education

• Master of Business Administration

MakatiManila

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OVERVIEW

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2005 2010 2015 2020 2025 2030 2035 2040Philippines

Population 85,261,000 94,013,200 102,965,300 111,784,600 120,224,500 128,110,000 135,301,100 141,669,900

% Growth 2.07% 10.27% 9.52% 8.57% 7.55% 6.56% 5.61% 4.71%

Student Base* 46,769,300 49,617,400 51,983,800 53,829,000 55,490,300 56,472,100 56,661,600 56,132,800% Growth 1.38% 6.09% 4.77% 3.55% 3.09% 1.77% 0.34% -0.93%

Student % 54.85% 52.78% 50.49% 48.15% 46.16% 44.08% 41.88% 39.62%National Capital Region

Population 10,787,300 11,552,100 12,220,500 12,775,900 13,216,700 13,545,900 13,740,300 13,788,000

% Growth 8.21% 7.09% 5.79% 4.54% 3.45% 2.49% 1.44% 0.35%

Student Base* 5,314,000 5,440,300 5,544,700 5,489,000 5,277,300 4,998,800 4,709,700 4,416,300

% Growth 1.20% 2.38% 1.92% -1.00% -3.86% -5.28% -5.78% -6.23%

Student % 49.26% 47.09% 45.37% 42.96% 39.93% 36.90% 34.28% 32.03%Bulacan

Population 2,613,600 2,986,200 3,364,600 3,746,900 4,125,400 4,489,300 4,830,500 5,141,900

% Growth 15.97% 14.26% 12.67% 11.36% 10.10% 8.82% 7.60% 6.45%

Student Base* 1,132,600 1,235,900 1,306,500 1,355,000 1,404,200 1,435,200 1,445,200 1,429,700

% Growth 11.10% 9.12% 5.71% 3.71% 3.63% 2.21% 0.70% -1.07%

Student % 43.33% 41.39% 38.83% 36.16% 34.04% 31.97% 29.92% 27.80%

Philippine Forecast on Population and Student Base

* Student Base – Population from 0 to 25 years old Source: National Statistics Office 2000

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Regional Snapshot

NCR REGION QUICK FACTS

GDP (Regional) (2013)

P4,290 B

GDP Growth (Regional) (2013)

7.2%

Income Per Capita (2012) 379,000

Poverty Incidence (2012)

2.6

Inflation Rate (2014)

5.6%

Labor Force Participation (2014)

64.4%

Employment Rate (2014)

94.0%

Underemployment Rate (2014)

18.7%

• The City of Manila is the economic and political capital of the Philippines.

• The City of Makati is the financial center of the Philippines; it has the highest concentration of multinational and local corporations in the country.

• The City of Malolos is the capital of the province of Bulacan and serves as the seat of the provincial government. It is hailed as one of the centers of education in Central Luzon region of the Philippines. The city is host to numerous schools in the primary, secondary and tertiary level.

Source: NSCB & Interstar Research

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Educational Attainment

4.7%

16.0%

22.7%

56.7%

National Capital Region

7.8%

24.8%

28.7%

38.7%

Philippines

No Grade Completed / Preschool

Some Elementary

Elementary Graduate and Some High School

High School Graduate and Higher

Source: National Statistics Office 2008

5.5%

21.5%

28.9%

44.1%

Central Luzon

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Educational level/s offered Public Private Total

Primary - 35 35

Elementary 24 1 25

Secondary 6 1 7

Tertiary 1 23 24

Primary & Elementary - 20 20

Elementary & Secondary 4 2 6

Primary , Elementary & Secondary - 22 22

Primary, Elementary, Secondary & Tertiary - 1 1

TOTAL 35 105 140

Educational Landscape – City of Makati

Breakdown of Academic Institutions in Makati

Source: Department of Education

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Educational Landscape – City of Manila

Breakdown of Academic Institutions in Manila

Source: Department of Education

Educational level/s offered Public Private Total

Primary - 10 10

Elementary 66 1 67

Secondary 26 7 33

Tertiary 4 38 42

Primary & Elementary - 26 26

Elementary & Secondary 12 13 25

Secondary & Tertiary - 6 6

Primary , Elementary & Secondary - 45 45

Elementary, Secondary & Tertiary - 8 8

Primary, Elementary, Secondary & Tertiary - 10 10

TOTAL 108 164 272

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Educational Landscape – City of Malolos

Breakdown of Academic Institutions in Malolos*

Source: Department of Education* Due to limited information on the schools in Bulacan, a school offering multiple levels may be counted twice (i.e. Primary and Elementary, Elementary and Secondary)

Educational level/s offered Public Private Total

Primary 5 61 66

Elementary 38 59 97

Secondary 9 41 50

Tertiary 1 24 25

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Economic Environment – City of Makati

• Makati is the country’s premier business district. It has the largest concentration of commercial activities in the Philippines, and the country’s primary link to international finance and the global economy. The City has 2.75 million square meters of prime office space and accounts for 60% of Metro Manila’s prime office space inventory.

• The number of establishments showed an increasing trend from 2007 to 2010; from 55,129 to 60,304.

• For 2011, services comprised a majority of establishments, followed by General Merchandise, and Real Estate. Manufacturing represents the lowest number of business establishments, which can be attributed to the shifting of manufacturing companies to other peripheral areas.

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Industry 2006 2007 2008 2009 2010 2011

General Merchandise20,402 16,481 16,650 16,611 17,644 17,546

Services19,825 18,842 19,117 19,353 20,655 19,629

Real Estate 10,043 9,616 9,726 9,797 10,150 9,703

Convenience Stores, Restaurants, and Amusement Places

4,518 4,163 4,194 4,389 4,745 4,473

Import/Export1,971 1,453 1,471 1,702 2,115 2,747

Manufacturing1,390 1,131 1,144 1,197 1,261 1,123

Banks and Finance-Related Business

3,825 3,443 3,477 3,529 3,734 3,594

Special Business Permits- - - - - 105

Total61,974 55,129 55,779 56,578 60,304 58,920

Number of establishments

Economic Environment – City of Makati

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References

• Centro Escolar University website – ww.ceu.edu.ph• Department of Education website – www.deped.gov.ph• City of Manila website – manila.gov.ph• City Government of Malolos website – www.maloloscity.gov.ph• City of Makati website – www.makati.gov.ph• Philippine Statistics Authority, October 2014 Labor Force Survey• National Statistics Office, 2000 Census-based Population Projection in collaboration with the

Inter-Agency Working Group on Population Projections• National Statistics Office, 2008 Functional Literacy, Education and Mass Media Survey

Thank You.

Centro Escolar University

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