1

Disclaimer

Rio de Janeiro, March 15, 2017

2

AGENDA

1 HIGHLIGHTS

2 OPERATING PERFORMANCE

3 FINANCIAL PERFORMANCE

4 FINAL REMARKS

3

1.1 New Management’s Priorities

• Replacement of the entire Board of Executive Officers and some

of the main corporate managers;

Readjustment of the corporate structure with focus on the Company’s

core business, internal controls and compliance;

Review of significant accounting practices and policies, which were

responsible for adjustments in the results of 2Q16

Payment of extraordinary Dividends in November and December

4

1.2 Highlights

R$ Million

Recurring Net Revenue

Cost of Services

Selling, General and Administrative

Expenses - Cash

Other Operating Expenses

EBITDA

EBITDA Margin (%)

One-off Entries

Cash Cost of Services

FIES Provision

General and Administrative Expenses

Other Operating Revenue

New FIES Rate 2%

Internal restructuring

Ongoing M&A and non-recurring advisory

Sale of the Customer Portfolio

Comparable EBITDA

Comparable EBITDA Margin (%)

4Q15 4Q16 Chg.

736.6 796.9 8.2%

(404.7) (454.9) 12.4%

(242.6) (127.1) -54.0%

14.3 2.4 -83.2%

103.6 217.3 109.7%

14.1% 27.3% 13.2 p.p.

- - N.A.

- - N.A.

- (43.0) N.A.

- - N.A.

- - N.A.

- (7.2) N.A.

- - N.A.

- - N.A.

- (46.7) N.A.

103.6 134.8 30.1%

13.5% 16.9% 3.4 p.p.

2015 2016 Chg.

2,931.5 3,184.5 8.6%

(1,577.7) (1,715.8) 8.8%

(748.4) (814.6) 8.8%

27.6 (1.7) -106.2%

633.0 652.4 3.1%

21.6% 20.5% -1.1 p.p.

- 62.8 N.A.

- 18.1 N.A.

- - N.A.

- 28.9 N.A.

- 15.8 N.A.

- 7.1 N.A.

- 3.8 N.A.

- 4.9 N.A.

(7.3) (47.1) 763.9%

625.7 691.2 10.5%

21.1% 21.7% 0.6 p.p.

5 Note: Total student base includes undergraduate and graduate students.

Retention Rate:

2.1 Student Base (‘000 students)

On-campus Distance- Learning TOTAL

497.8

508.0

318.5 327.9

38.6 31.7 1.5

4Q15 4Q16

+3.4%

Distance Learning

On-campus

Total student base*

Acquisitions - 12 months

Graduate Acquisitions - 12 months

109.4 106.9

31.3 39.9

4Q15 4Q16

+27.2%

Graduate

Undergraduate Acquisitions - 12 months

Undergraduate

357.1 360.6

140.7 145.9

1.5

4Q15 4Q16

+2.0%

+3.7%

+1.0%

On-campus

Undergraduate Segment

89.9% 92.7%

4Q15 4Q16

Distance-Learning

Undergraduate Segment

85.1% 88.8%

4Q15 4Q16

+3.7 p.p. +3.8 p.p.

More sustainable

student base

6

602.1

186.7

634.5

198.8

Presencial EaD

2015

2016

616.0

180.6

674.7

222.5

Presencial EaD

4T15

4T16

Note: Total student base includes undergraduate and graduate students.

On-campus 4Q15 4Q16 Chg.

Undergraduate 654.1 700.1 7.0%

Graduate 213.1 276.0 29.5%

Total 616.0 674.7 9.5%

2.2 Average Ticket

2015 2016 Chg.

646.6 679.6 5.1%

236.2 238.7 1.1%

602.1 634.5 5.4%

Distance-Learning 4Q15 4Q16 Chg.

Undegraduate 191.8 236.2 23.2%

Graduate 112.7 129.5 14.9%

Total 180.6 222.5 23.2%

2015 2016 Chg.

197.8 210.1 6.2%

113.2 118.7 4.8%

186.7 198.8 6.5%

+23.2 %

(In Brazilian reais)

+5.4 %

+6.5 %

+9.5 %

Average Ticket Quarter

Average Ticket Year

7

Receita Líquida

• R$51.3 million reduction in Pronatec revenue Graduation of the last students taking a course

• R$17.0 million reduction in other revenue End of the trainings offered to the volunteers of the Olympic Games

• R$14.3 million increase in other deductions Transfer to distance-learning partners as of 4Q15

• 1.8 p.p. increase in scholarships and discounts as a

percentage of gross operating revenue Significant increase in monthly tuition exemption and discounts granted in 1Q16

3.1 Net Revenue (R$ Million)

[VALOR]

[VALOR]

4Q15 4Q16

+8.2 %

Quarter

Year

[VALOR]

[VALOR]

2015 2016

+8.6 %

Total Net Revenue increased by 8.6% in 2016, offset by the effects of the:

8

Custos e Despesas Operacionais

Vertical Analysis 4Q15 4Q16 Chg.

Cash Cost of Services -54.9% -57.1% -2.2 p.p.

Personnel -42.1% -44.9% -2.8 p.p.

Rent, condominium fees and municipal property tax

-7.6% -7.7% -0.1 p.p.

Textbook Materials -1.4% -0.9% 0.5 p.p.

Third-Party Services and Others -3.9% -3.6% 0.3 p.p.

Receita Líquida 3.2 Operating Costs and Expenses

(% of Net Operating Revenue)

2015 2016 Chg.

-53.8% -53.9% -0.1 p.p.

-41.4% -41.9% -1.0 p.p.

-7.4% -7.7% -0.3 p.p.

-1.6% -1.0% 0.6 p.p.

-3.4% -3.3% 0.1 p.p.

R$ million 4Q15 4Q16 Chg.

Net Operating Revenue 736.6 796.9 8.2%

Cost Personnel (310.1) (357.8) 15.4%

Cost Personnel / Net Revenue -42.1% -44.9% -2.8 p.p.

(1) Collective bargaining

agreements - 14.5 N.A.

(2) Internal restructurings - 6.9 N.A.

(3) Difference in Vacation Days

Granted (17.9) - N.A.

Comparable Cost Personnel (328.0) (336.4) 2.5%

Comparable Cost Personnel / Net

Revenue -44.5% -42.2% 2.3 p.p.

Main Impacts:

Excluding the impacts:

2.3 p.p

(1) Payment of retroactive amounts

(2) Faculty severance and Restructuring in the offer of courses (3) 15 fewer vacations days granted in 4Q16, granted in 3Q16 due to the Rio 2016 Olympic Games

9

Custos e Despesas Operacionais

Vertical Analysis 4Q15 4Q16 Chg.

Selling Expenses -19.0% -3.5% 15.5 p.p.

PDA -9.2% 1.7% 10.9 p.p.

Marketing -9.7% -5.2% 4.5 p.p.

G&A Expenses -14.0% -12.4% 1.5 p.p.

Personnel -4.8% -5.5% -0.7 p.p.

Others -9.2% -6.9% 2.3 p.p.

Other Operating Revenue/Expenses 1.9% 0.3% -1.6 p.p.

Receita Líquida 3.3 Operating Costs and Expenses

(% of Net Operating Revenue)

2015 2016 Chg.

-12.7% -11.8% 0.8 p.p.

-5.6% -5.1% 0.5 p.p.

-7.1% -6.7% 0.3 p.p.

-12.8% -13.8% -1.0 p.p.

-4.8% -5.3% -0.4 p.p.

-8.0% -8.5% -0.5 p.p.

0.9% -0.1% -1.0 p.p.

• PDA: Reversal of R$43 million from the provision and sale of the receivables portfolio • Marketing expenses: End of the Olympic Games’ institutional campaigns and review of the

Company’s marketing campaigns.

Main Impacts:

10

Lucro Líquido

R$ million 4Q15 4Q16 Chg.

EBITDA 103.6 217.2 109.7%

Financial Result 0.8 (25.3) N.A.

Depreciation and Amortization (47.8) (54.7) 14.4%

Social Contribution (1.2) (4.0) 233.3%

Income Tax (2.2) (9.0) 309.1%

Net Income 53.3 124.3 133.2%

Custos e Despesas Operacionais Receita Líquida 3.4 Net Income

(R$ million)

109.7% increase in EBITDA:

Exceeded the increase in

depreciation and amortization and the negative financial result of the period 53.3

124.3

4Q15 4Q16

+71MM

2015 2016 Chg.

633.0 652.4 3.1%

(31.6) (86.3) 173.1%

(164.5) (193.3) 17.5%

(0.2) (2.5) N.A.

3.6 (2.2) 161.1%

440.3 368.1 -16.4%

Net Income Quarter

11

Prazo Médio de Recebimento

R$ million 4Q15 4Q16

Accounts Receivable Net of non-APV 1,122.0 1,178.1

Non-FIES Accounts Receivable and APV 353.1 349.4

Non-FIES Net Revenue 1,630.3 1,918.3

Average non-FIES Receivables Days 78 66

Average Receivables Days – non-FIES

R$ million 4Q15 4Q16

FIES Accounts Receivable 768.8 828.7

FIES Revenue (last 12 months) 1,401.2 1,408.4

FGEDUC Deductions (last 12 months) (72.0) (87.4)

Taxes (last 12 months) (28.1) (54.8)

FIES Net Revenue (last 12 months) 1,301.1 1,266.2

Average FIES Receivables Days 213 236

Average Receivables Days – FIES

Lucro Líquido Custos e Despesas Operacionais Receita Líquida 3.5 Average Receivables Days

Improvement of 12 days:

Focus on improving collection

campaign and student debt

renegotiation policies.

Delay in amending FIES contracts

for the second semester of 2016

generated consequences on the

flow of transfers this quarter.

12

Capitalização e Caixa

R$ million 12/31/2015 12/31/2016

Shareholders’ Equity 2,573.0 2,434.7

Cash and Cash Equivalents 693.8 404.0

Gross Debt (1,172.4) (1,164.4)

Loans and financing (1,049.6) (1,022.5)

Short term (291.3) (468.1)

Long term (758.3) (554.4)

Commitments Payable (acquisitions) (103.1) (125.9)

Taxes Paid in Installments (19.6) (15.9)

Cash / Net Debt (478.6) (760.4)

Prazo Médio de Recebimento Lucro Líquido Custos e Despesas Operacionais Receita Líquida 3.6 Capitalization and Cash

R$ million 4Q15 4Q16 Chg.

Maintenance 61.4 60.0 -2.2%

Discretionary and Expansion 14.5 18.3 26.9%

Total CAPEX 75.9 78.4 3.3%

Capex 3.7 2015 2016 Chg.

137.3 118.8 -13.5%

84.8 67.9 -19.8%

222.1 186.8 -15.9%

[VALOR] [VALO

R]

2015 2016

Total Capex Year

-15.9%

13

R$ million 4Q15 4Q16 2015 2016

Profit before taxes and after results from discontinued operations 56.7 137.2 436.8 372.8

Net cash provided by (used in) operating activities 54.3 175.1 53.9 537.1

Acquisition of property and equipment (50.3) (123.5) (145.3) (197.4)

Operating Cash Flow (OCF) 3.9 51.7 (91.4) 339.7

Cash flow from investing activities (40.4) (21.2) (125.3) (80.5)

Cash flow from financing activities 9.1 (201.9) 205.1 (549.2)

Net cash provided by (used in) financing activities (27.4) (171.4) (21.3) (289.8)

Cash and equivalents at the beginning of the period 721.2 575.4 715.1 693.8

Increase (reduction) in cash and cash equivalents (27.4) (171.4) (21.3) (289.8)

Cash and equivalents at the end of the period 693.8 404.0 693.8 404.0

EBITDA 103.6 217.2 633.0 652.9

Net Cash provided by (used in) operating activities / EBITDA 52.4% 80.6% 8.5% 82.3%

OCF / EBITDA 3.8% 23.8% -14.4% 52.1%

3.8 Cash Flow

14

Maintain the organizational climate:

Focal points appointed to meet the needs and concerns about the new

challenges faced by the Company

Annual Climate Survey: participation of 73% of the employees, reaching an

overall engagement result of 74%

Redesign of the intake process:

New pricing strategy

Regionalization of marketing campaigns

Resizing of sales force

New goals and compensation system

4. Final Remarks

2017 Goals

15

Diretrizes para 2017

Recover operating and financial results focusing on the

generation of cash:

Redesign of Collection and Charging processes

Prazo Médio de Recebimento Lucro Líquido Custos e Despesas Operacionais Receita Líquida 2017 Goals

Culture of timely payment (creation of policies to encourage timely payments)

Focus on Collection (since the beginning of the debt)

Debts charged exclusively through specialized companies contracted for such purpose

Rigorous Charging Process (short contact intervals, blacklisting and protest, using cluster strategies based

on the debtor’s profile

Launch of Estácio’s Installment Payment Program

Financing of monthly tuition without interest • 1st Year: 70%

• 3rd Sem: 60%

• 4th Sem: 50%

• Other Sem: 40%

16

Diretrizes para 2017 Prazo Médio de Recebimento Lucro Líquido Custos e Despesas Operacionais Receita Líquida 2nd Result of the Academic Model

0%

11%

80%

8%

0% 0% 2%

48% 49%

2%

1 2 3 4 5

0%

10%

85%

5% 0% 0% 3%

78%

20%

0%

1 2 3 4 5

CPC – Preliminary Course Concept (2012 x 2015) IGC – General Course Index (2012 x 2015)

98%

satisfactory

(+9 p.p.)

97%

satisfactory

(+7 p.p.)

2012 2015

20

12

x 2

01

5 C

ycle

s (M

anag

em

en

t an

d L

aw)

+41 p.p.

Grade 4

+15 p.p.

Grade 4

17

Disclaimer

The content of this presentation may include expectations regarding future

events and results estimated by Management. However, such forward-looking

statements are no guarantee of future delivery and/or performance, given the

risks and uncertainties inherent to the business environment, including the

country's economic performance, the global economy, the capital market,

regulatory aspects of the industry, and governmental and competitive issues,

among other factors, as well as the risks presented in the disclosure documents

filed by Estácio, which are subject to change without prior notice.

18

Investor Relations:

E-mail: ri@estacio.br

Phone: (21) 3311-9700

Fax: (21) 3311-9722

THANK YOU!

Website: www.estacioparticipacoes.com.br

Pedro Thompson | CEO and Investor Relations Officer

Flávia Oliveira | Head of Investor Relations