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Building Futures One Success Story at a Time

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Building Futures One Success Story at a Time 2009 BUILDING FUTURES ONE SUCCESS STORY AT A TIME KAPLAN,INC. DUCATION IS A LIFELONG JOURNEY.WEBEGINLEARNING AS CHILDREN, BUTCONTINUEFORTHERESTOFOURLIVES. WE ALWAYS SEEK NEW AREAS THAT INSPIRE US, NEW SKILLS TO MASTER AND NEW PATHS TO PURSUE. EWhile each step in the educational process is a journey toward a specific goal – completing a degree, acing a high-stakes test, earning a new credential – the sum of our learning experiences helps pave the way for new opportunities and defines who we are to our families, our co-workers and ourselves. Kaplan is a company that helps students navigate that journey, whether they are kids in school or working professionals juggling careers and families. We are a learning partner for each of our students, helping them gain the confidence and skills they need to achieve their educational and career dreams. We can all remember a time when the light bulb went off, when we had an “ah-ha” moment – when we learned something that made us feel empowered, smart, capable and ready to take on the world. They are the moments that enable us to achieve, and at Kaplan, we live for those moments. We foster them in our students each day and they are what drive the dedication and commitment of our more than 31,000 employees around the world. Talent is something that no one can afford to waste. It is the basis of individual success and our progress as a society. Our innovative programs, courses and study materials are all designed to attract motivated individuals and ensure they realize the full potential of their talents. Inside, you’ll hear from some of these students as well as Kaplan employees who help our customers realize their dreams each day. Great student outcomes are not only our business, but our passion. Andrew S. Rosen Chairman and Chief Executive Officer 2 KAPLAN,INC. C HANGING L IVES T HROUGH E D U C AT I O N KAPLAN SERVES MORE THAN ONE MILLION STUDENTS EACH YEAR WE HAVE OVER 31,000 EMPLOYEES IN APPROXIMATELY 600 LOCATIONS W E’ RE A BOUT L IFELONG L EARNING CWE PROVIDE HIGH-QUALITY EDUCATIONAL SERVICES, ASSISTING STUDENTS THROUGHOUT THEIR SCHOOLING AND CAREERS KIDS AND SCHOOLS TEST PREP AND ADMISSIONS HIGHER EDUCATION PROFESSIONAL After-School Tutoring Programs College Prep Programs Pathway Programs Accounting K12 Services for Schools Graduate Prep Programs Diplomas and Certificates Insurance Online High School Programs English Language Programs Undergraduate Programs Securities Medical Licensing Programs Graduate Programs Real Estate Multi-State Bar Exam Review Financial Analysis & Planning Information Technology Compliance Solutions 3 KAPLAN,INC. KAPLAN ,INC. OUR REVENUE GREW 15% IN 2008 TO MORE THAN $2.3 BILLION 2,332 2,031 KAPLAN HIGHER EDUCATION 1,684 KAPLAN TEST PREP & ADMISSIONS 1,412 1,135 838 621 494 354 KAPLAN PROFESSIONAL 257 KAPLAN KIDS AND SCHOOLS 2001 2002 2003 2004 2005 2006 2007 2008 1999 2000 KAPLAN R EVENUE G ROWTH KAPLAN 2008 R EVENUE B REAKDOWN 1999-2008 (in millions of dollars) 4 KAPLAN,INC. APLAN HAS COME A LONG WAY SINCE ITS FOUNDING AS A TEST PREPARATION BUSINESS IN 1938, BUT OUR MISSION HAS REMAINED CONSTANT: TO HELP PEOPLE ACHIEVE THEIR EDUCATIONAL AND CAREER GOALS.TODAY,KAPLAN IS ONE OF THE WORLD’S LARGEST DIVERSIFIED EDUCATION COMPANIES WITH OPERATIONS IN MORE THAN 30 COUNTRIES. KWith more than $2.3 billion in revenue in 2008, we are a leading global provider of educational services, offering postsecondary education, test preparation, professional training and K12 services for children and schools. Our international operations include higher education, professional training, test prep and language instruction in Europe, the Middle East, Asia, Australia and Africa. Kaplan is a subsidiary of The Washington Post Company and its fastest-growing division, comprising more than half of its revenue. We serve students of all ages, from second-graders learning to read to professionals seeking postgraduate training. Our largest business, higher education, brings educational opportunities ranging from certificates to master’s degrees to students around the world. We operate more than 70 campuses in the U.S. and higher ed schools in the U.K., Ireland, Asia and Australia. We are also leaders in online education through Kaplan University. Kaplan is one of the largest providers of academic English language training in the world. We offer an array of academic preparation programs for international students seeking entry to western universities, primarily in Australia, the U.K. and the U.S. Kaplan continues to lead the test preparation industry. Through Kaplan Publishing, we produced more than 180 new titles in 2008 reflecting Kaplan’s full portfolio of offerings as well as select trade titles. Students seeking licensing and advanced designations in their fields can turn to our professional training business, where last year we provided approximately 425,000 courses, many to the world’s leading financial institutions. We also offer a range of services for children and schools, including academic intervention programs, teaching materials, assessment tools and after-school tutoring. While we have dramatically expanded the breadth of our business, we have stayed true to our roots. Throughout our 71-year history, we have remained student-focused, results-driven and committed to helping individuals reach their goals. Kaplan is a company that broadens access to educational and professional opportunities in new communities, including many that have been underserved. We help people gain new skills, higher credentials and better jobs. Each day, we change lives through education. 5 KAPLAN HIGHER EDUCATION “ APLAN UNIVERSITY IS REWRITING THE RULES OF EDUCATION TO HELP STUDENTS ACHIEVE THEIR DREAMS AND ADVANCE PROFESSIONALLY.WE’RE HERE TO GUIDE STUDENTS THROUGH THE ENTIRE LEARNING PROCESS.WE PROVIDE A SUPPORT NETWORK THAT MAKES IT POSSIBLE FOR THEM TO HAVE A SUPERIOR LEARNING EXPERIENCE AND GET A GREAT EDUCATION WHILE MANAGING THEIR DAY-TO-DAY LIVES.” DAVE CLINEFELTER,PH.D.; KAPLAN UNIVERSITY PROVOST KKaplan Higher Education’s schools and programs span the globe. Our U.S. operations include more than 70 campuses in 20 states, as well as Kaplan University’s online offerings. Our schools’ programs prepare students for employment in fields such as healthcare, business, legal and paralegal services, information technology, criminal justice and design. Each U.S. institution is accredited by one of several national or regional accrediting bodies approved by the U.S. Department of Education. Throughout the years, Kaplan has leveraged its strength in career-focused education and distance learning to introduce higher education programs in the U.K., Ireland, Asia and Australia. Our offerings range from pre-university foundation programs to undergraduate and graduate degree studies. Our international institutions include Dublin Business School, Ireland’s largest private undergraduate college, as well as Kaplan International Colleges, Kaplan Law School and Holborn College. Kaplan International Colleges partners with some of the U.K.’s leading universities to provide international students seeking admission to these institutions with academic preparation and English language training. Kaplan Law School operates in London in collaboration with Nottingham Trent University’s Nottingham Law School. Holborn College, also in London, offers various pre-university, undergraduate and postgraduate and professional programs, primarily focusing on law and business, in which students receive degrees from affiliated universities in the U.K. Additionally, Kaplan Open Learning in the U.K. offers online degree programs in disciplines such as business and management, internet marketing and criminal justice. In Asia, APMI Kaplan offers a broad range of undergraduate and postgraduate management programs in Singapore and Hong Kong through affiliations with Australian, British and U.S. institutions. Kaplan also offers mainland Chinese students pre-university foundation programs as well as degree offerings from other Western universities which they can study either domestically or abroad. Kaplan also recently expanded its presence in Vietnam and in other areas of Southeast Asia, preparing students for international studies abroad. 8 KAPLANPROFESSIONAL GIVING PROFESSIONALS AN EDGE With operations in North America, Europe, Asia, Australia and Africa, Kaplan Professional is one of the premier providers of licensing and continuing education to businesses and individuals in the accounting, insurance, compliance solutions, securities, real estate, financial planning and information technology industries. Through classroom instruction and hundreds of online courses, Kaplan Professional serves customers who must comply with regulatory requirements and who want to earn advanced professional designations to help them progress in their careers. We provide many of the world’s leading financial and accounting institutions with educational products that prepare students to earn qualifications including the CFA®, CFP®, CIMA, CAIA, GACCA, ACA and CPA. In addition, our technology-based compliance solutions help companies manage learning initiatives and track corporate compliance activities – all critical to doing business in an increasingly complex regulatory environment. We also develop and provide software for companies to create their own online training. 11 KAPLANPROFESSIONAL “ IFELONG LEARNING IS THE KEY TO SUCCESS IN TODAY’S RAPIDLY CHANGING BUSINESS WORLD.KAPLAN HELPS PROFESSIONALS DEMONSTRATE PROFICIENCY IN THEIR FIELDS BY SUCCESSFULLY PREPARING
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