Bridgepoint Education Inc at J.P. Morgan Ultimate Services Investor Conference

J.P. MORGAN ULTIMATE SERVICES CONFERENCE November 14, 2012

FORWARD-LOOKING STATEMENTS This presentation contains forward-looking statements including, without limitation, statements regarding the Company’s initiatives, their anticipated impact, institutional accreditation, the Company’s financial model highlights, 2012 outlook and related commentary. These statements involve risks and uncertainties, and the Company’s actual performance may differ materially from those expressed in or suggested by such statements. Risks and uncertainties include, without limitation:

• Failure to comply with the extensive regulatory framework applicable to the Company and its institutions, including Title IV of the Higher Education Act and its regulations, state laws and regulatory requirements, and accrediting agency requirements;

• Adverse regulatory or legislative changes affecting the Company's institutions, including, but not limited to decisions by regional accrediting bodies WASC and HLC;

• The imposition of fines or other corrective measures against the Company's institutions; • Competition in the postsecondary education market and its potential impact on the Company's market share

and recruiting costs; and • Reputational and other risks related to potential compliance audits, regulatory actions, negative publicity or

service disruptions.

More information on potential factors that could affect the Company’s performance is included from time to time in the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of the Company’s periodic reports filed with the SEC, including the Company’s Annual Report on Form 10-K for the year ended December 31, 2011 and Quarterly Report on Form 10-Q for the quarter ended September 30, 2012, which have been filed with the SEC. Forward-looking statements are made on the basis of management’s views and assumptions regarding future events and business performance as of the time the statements are made, and the Company assumes no obligation to update any forward-looking statements or information, which speak as of their respective dates, except as required by law.

• MA, PsyD, PhD • Social & Behavioral Sciences • Colorado Springs Campus • HLC Accredited

99% Online 72% Female 49% Minority 36 Years Old

University of The Rockies Ashford University • AA, BA, MA, MBA • 17 NAIA Sports Teams • Clinton, IA Campus • HLC Accredited; WASC in process

RECOGNIZED BRANDS

Bus 40%

Lib Arts; 17%

Edu 19%

Hcare 21%

Non-D 2%

AU Programs

AA, 13%

BA, 74%

MA, 12%

Doc, <1% AU and UOR Students

2011 2010 2009

Fall-to-Fall Persistence Rates 61% 60% 62%

Bachelors Graduation Rates 51% 50% 49%

Masters Graduation Rates 74% 80% 73%

Bachelors’ Degree salary % increase from salary at enrollment

11.6% 14.0% 16.7%

Graduate Degree salary % increase from salary at enrollment

11.0% 11.5% 23.0%

ASHFORD Students and Alumni: Persistence, Graduation & Salary Increases

* Survey not conducted in 2012

Our Approach to Quality Education

LEADERSHIP

Dr. Greg Geoffroy Chairman-elect, AU Trustees 38 Yrs Academic Leadership President Emeritus, Iowa St. 10 Years as President:

Expanded Diversity Built Infrastructure Bioeconomy Institute

SVP & Provost, U. Maryland Ph.D. Chemistry, Caltech

Dr. Richard Pattenaude Ashford U. President Chairman, NEASC Higher Ed 23 Yrs. Academic Leadership Chancellor, U. Maine System

7 years

President, U. Southern Maine 16 Years

Ph.D. Political Science, U. of Colorado

ASHFORD UNIVERSITY & UNIVERSITY of the ROCKIES

AFFORDABILITY ACCESS SUCCESS QUALITY

Delivering value to students through FOUR PILLARS

AFFORDABILITY AFFORDABILITY ACCESS QUALITY SUCCESS

47% 37%

15%

0%

-100%

-80%

-60%

-40%

-20%

0%

20%

40%

$-

$100

$200

$300

$400

$500

$600

DeVry - DV UoP - APOL

Strayer - STRA

Grand Canyon - LOPE

Ashford - BPI

Ashford Military

AMU - APEI

% D

iffer

ence

$ pe

r Cre

dit

51% Affordable

ACCESS AFFORDABILITY ACCESS QUALITY SUCCESS

• Better Student Benchmarking Data • Rich Data on Outcomes • Used By 40 Institutions • Assessment of Learning Data

Apple™/ Android™ MOBILE ACCESS

• Constellation • Students • Grade Book

• Admin • Classroom • Faculty

} • More Affordable • Proprietary Learning Platform • Rapid uptake • Patent Pending &

ACCESS through TECHNOLOGY

QUALITY AFFORDABILITY ACCESS QUALITY SUCCESS

Quality Initiatives Learning • Additional Full-Time Faculty • Smaller Class Sizes • Continued Technology Investment • InsideTrack

University Advisors

• Extend relationship to 26 wks • Problem-solving Focus

Student Support

• 2 Advisors thru 4th Course • Predictive Modeling • Better Persistence

SUCCESS AFFORDABILITY ACCESS QUALITY SUCCESS

Student Inquiry • First Contact with Students • 200 Staff • Data Analytics • Goal: Student Readiness

Orientation

• 2 Weeks • 100% Free • All AAs & BAs w/ zero credits

The Ashford Promise

• 3-Week Refund Policy • Drop Underperforms • All Tuition, Fees Refunded • No Debt Incurred

Career Support • Career Support Services

– Resume building – Job Search – Interview Prep

• Alumni Networking • Employer Awareness

Student Success Initiatives

Branding

BRANDING STRATEGY

• Data Analytics: Target Best Performing Lead Sources Based on Persistence

• Increased Awareness by National Target Audience

• Messages Reinforce Four Pillars

• Working Adult Demographic • Messaging Reflects Working Families • Reinforces Technology and Increased Access

• Increased Lead Cost Offset by Better Persistence

BRANDING STRATEGY

“Technology Changes Everything”

90% of Potential Students Think the Future of Education is Virtual

BRANDING STRATEGY

“Technology Changes Everything”

RESULTS:

• 80% increase in Organic traffic on Ashford’s website

• 100% increase in Brand Awareness

• 114% increase in Awareness among fully employed

• Positive Sentiment Up 40% in August

• Ashford seen as Innovative, Forward Thinking

• 19% Increase in Non-Aggregator Enrollments

Financial Review

AFFORDABILITY ACCESS QUALITY SUCCESS

Financial Model Highlights

• Highly Competitive Tuition Pricing One of the lowest in the sector Below Title IV Loan Limits

• Branding: Recalibrate Marketing Mix

• Capital Efficient Business

• Strong Cash Position, No Debt


History of Consistent Performance

31,558

53,688

77,892 86,642

91,358

5,000

25,000

45,000

65,000

85,000

105,000

2008 2009 2010 2011 Q3 12 YTD

Enrollments

$218.3

$454.3

$713.2

$933.3

$758.8

$50.0

$250.0

$450.0

$650.0

$850.0

$1,050.0

2008 2009 2010 2011 Q3 12 YTD

Revenue


Operating Margin

15.3% 18.0%

30.3% 29.3%

23.4%

0.0%

10.0%

20.0%

30.0%

40.0%

2008 2009 2010 2011 Q3 12 YTD


Cash Flow and EPS

$70.7

$131.7

$189.9 $220.8

$93.6

$0

$70

$140

$210

$280

2008 2009 2010 2011 Q3 12 YTD

Net Cash Provided By Operating Activities

$0.16

$0.74

$2.14

$3.02

$2.00

$0.00

$0.80

$1.60

$2.40

$3.20

2008 2009 2010 2011 Q3 12 YTD

Fully-Diluted Earnings Per Common Share


Consistent Regulatory Metrics

Well Positioned for Gainful Employment: Repayment Rates Debt to Income Debt to Discretionary Income

2011 2010 2009 2008 2007

Ashford 2-Yr. CDR --- 10.2% 15.3% 13.3% 13.3%

Rockies 2-Yr. CDR --- 4.0% 3.3% 2.5% 0%

Ashford 90 /10 Ratio 86.8% 85.0% 85.5% 86.8%

Rockies 90 /10 Ratio 85.0% 85.9% 84.6% 80.8%

REGULATORY TIMELINE AFFORDABILITY ACCESS QUALITY SUCCESS

2013 2012

Data Submissions Site Visit Substantial

Presence Plan HLC Board

Meeting

Site Visit Re-Application Submittal

WASC Board Meeting

June July Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun Jul

Bridgepoint Education Inc at J.P. Morgan Ultimate Services Investor Conference

Education

Transcript of Bridgepoint Education Inc at J.P. Morgan Ultimate Services Investor Conference