Adobe Creative Cloud for education FY17 Q1 Update December 2016

Today’s presenters Ashley Malone Elaine Besh Product Marketing Manager, Adobe Education, Adobe Systems Elaine Besh Senior Account Manager, Education Channel Sales, Adobe Systems Warhawk Design Studios Ridgevue High School Adobe Certified Instructor @armsdan

Agenda Value of Adobe in education Strategies for FY17 Sales plays, program updates & offers Resources Q&A

Value of Adobe in education — building the skills employers want Adecco study of hiring managers showed 44% felt applicants lacked: Communication Creativity Critical Thinking Collaboration State of Create study showed creative people are: More confident More innovative Better problem solvers Happier Talking points – creative skills are important for employability, but they’re lacking. Adobe facilitates creativity. Creativity helps students X, Y, Z Start with Adecco — bring in how creativity helps students. Bring in stat on 13% more earning potential. And this will help your customers be more competitive. More attractive offer. Look into Tacy’s slide : Adobe launches student careers (500K certifications) Adobe CC facilitates the creative process and improves employability

Value of Adobe in education Students and teachers alike wish there was more of a focus on creativity in the classroom. Talking points – creative skills are important for employability, but they’re lacking. Adobe facilitates creativity. Creativity helps students X, Y, Z Start with Adecco — bring in how creativity helps students. Bring in stat on 13% more earning potential. And this will help your customers be more competitive. More attractive offer. Look into Tacy’s slide : Adobe launches student careers (500K certifications) Creativity helps students learn Creativity will help students succeed Creativity pays In recent research, self-described creators reported they earn 13% more than non-creators

Creative Cloud is the connected Creativity Platform Desktop Everything students, faculty and staff need to do their best work Community Mobile Assets Talking points – creative skills are important for employability, but they’re lacking. Adobe facilitates creativity. Creativity helps students X, Y, Z Start with Adecco — bring in how creativity helps students. Bring in stat on 13% more earning potential. And this will help your customers be more competitive. More attractive offer. Look into Tacy’s slide : Adobe launches student careers (500K certifications) Marketplace

Overview of software and services New Apps Design & Video Apps Adobe Marketplace Talking points – creative skills are important for employability, but they’re lacking. Adobe facilitates creativity. Creativity helps students X, Y, Z Start with Adecco — bring in how creativity helps students. Bring in stat on 13% more earning potential. And this will help your customers be more competitive. More attractive offer. Look into Tacy’s slide : Adobe launches student careers (500K certifications)

FY17 Strategies Higher Ed K12 Overarching Migrate the remaining base Expand into non-core Migrate the remaining base (including EEA) Increase awareness Improve relationships with educators Migration number = . We know which schools have opportunity and contact info for them. K12 penetration = Usage drives revenue, not adoption. Overarching Deployment Retention

The opportunity for Adobe CC — Extended Core US HED Market UK HED Market Extended Core 311k Extended Core 4.7m Total: 20m Core 0.9m Core 138k Total 1.9m Sales people don’t know term “core” — can we switch to “design” and “extended design”

Target customers Historically Students Faculty Administration IT Procurement

Target customers Historically Students Faculty Administration IT Procurement

Target customers In the future… Students Faculty Administration IT Procurement

Target customers In the future… Students Faculty Administration IT Procurement

Programs & Sales Plays

Q1 priorities & programs Migrate the remaining install base Convert EEA customers to VIP Expand Creative Cloud footprint Maximize customer retention Creative Cloud for education value CLP to VIP migration promo K12 School Site & District licenses VIP deployment support Adobe Education Exchange

Price comparison example Creative Cloud Talking Points Creative Cloud for education offers industry-leading applications at a discounted price. New Apps Design & Video Apps Price comparison example Emphasize the core value of Creative Cloud Helps students build relevant career skills Helps institutions stay competitive Hundreds of new features every update New apps and services (named-user) like Stock, CreativeSync and shared libraries Flexible licensing programs Significant cost savings over commercial offering Onboarding and deployment resources Commercial Edu — Named Edu — Device US Tier 1 $420 $300 $840 Tier 4 $252 $180 Talking points – creative skills are important for employability, but they’re lacking. Adobe facilitates creativity. Creativity helps students X, Y, Z Start with Adecco — bring in how creativity helps students. Bring in stat on 13% more earning potential. And this will help your customers be more competitive. More attractive offer. Look into Tacy’s slide : Adobe launches student careers (500K certifications) EMEA Tier 1 €372 €300 €840 Tier 4 €222 €180

“I don’t have budget for that” Higher Ed Sales Plays I don’t need CC It’s too expensive I can’t deploy that “CS is good enough” “I don’t have budget for that” “Seems hard to manage” CONCERNS CONCERNS CONCERNS Maintaining competitive edge, student enrollment, preparing students for the future Student & educator success & business success, profitability, wants to maximize value Deployment and administrative support, student & educator success TALKING POINTS TALKING POINTS TALKING POINTS CC value prop, creativity is essential to student success, new features, Adobe EdEx Edu pricing is 50% off Com, CLP migration promo, flexible terms, VIP Select, linked membership VIP Admin Console, Creative Cloud packager, deployment support, EdEx as a free resource ASSETS ASSETS ASSETS State of Create study, CC Datasheet, Conversation Guide VIP Program Guide, CLP Migration summary, Linked Membership & VIP Select overviews Getting Started Guide, Customer Resource Guide, Adobe EdEx overview

“I don’t have budget for that” K12 Sales Plays I don’t need CC It’s too expensive I can’t deploy that “CS is good enough” “I don’t have budget for that” “Seems hard to manage” CONCERNS CONCERNS CONCERNS Budget constraints, need predictability, student and educator success Student and educator success, limited resources, need to deploy quickly Time constraints, student success TALKING POINTS TALKING POINTS TALKING POINTS CC value prop, CS is out of date, K12 District & School Site licensing K12 program value, free teacher resources with EdEx, budget predictability VIP Admin Console, Creative Cloud packager, deployment support, EdEx as a free resource ASSETS ASSETS ASSETS State of Create study, K12 programs overview, EdEx overview K12 programs overview, Adobe EdEx overview, Customer Resource Guide Getting Started Guide, Customer Resource Guide, Adobe EdEx overview

Program Details

Current offers — Higher Ed & K12 Classrooms & labs Small workgroups & departments Benefits Device Named-user New versions of CC apps available upon release  Flexible licensing options Predictable budgeting for one or multi-year contracts Allows multiple students to use the same application on a single computer Built-in collaboration with online services Easy deployment and management with web-based admin console

Term-based licensing program for primary and secondary schools Current offers — K12 only Term-based licensing program for primary and secondary schools Complete set of Creative Cloud desktop applications (services not included) Minimum purchase of 100+ license pack for individual schools (EMEA 25+ license minimum) Purchase through Value Incentive Plan (VIP) Minimum purchase of 500+ license pack for districts Flexible site license terms from 1-4 years Available for teacher home use and student-owned devices Scalable software deployment for a single school site or legal entity (e.g., district) Price $25USD or 25€ per license for all VIP tiers

For qualified CLP customers: CLPM VIPs get appropriate level lock CLP Migration For qualified CLP customers: CLPM VIPs get appropriate level lock CLP-1 customers  VIP Level 2 CLP-2 customers  VIP Level 3 CLP-3 customers  VIP Level 4 Duration is based on level lock start date & VIP renewal periods (max of 1 renewal period) Level lock beings date CLPM level is set (ends 31 days before start of 2nd year VIP renewal period) After the level lock period, VIP is re-leveled based on the standard VIP look-back process* *Re-leveling has been suspended since March 11, 2016 and will continue to be suspended until further notice

Supporting Activities Program updates The EEA program, and the ability to renew existing EEA agreements, has been discontinued as of December 3, 2016 Supporting Assets Supporting Activities EEA EOL email template Transition guide LWS notification email (localized) Call campaigns to customers whose EEAs are set to expire

Top reasons to migrate from EEA to VIP Simplify license purchasing — all license types on one agreement 1 Simplify and centralize license management with the Admin Console 2 Flexible deployment options and timing 3 Automatic notifications for license renewal 4 Immediate access to the latest product updates 5

Resources — Deployment Ambassador The Deployment Ambassador program offers customers personal support to help them get up and running with Creative Cloud. The program has been extended through February, 2017. Available to HED customers purchasing 25+ seats of Creative Cloud & K12 District License customers Complimentary 1-hour session with an Adobe deployment specialist (‘Deployment Ambassador’) Sessions must be completed by March 2, 2017 Add ACA – free additions.

Resources Deployment support Education Exchange Q1 Toolkit NEW NEW NEW Add ACA – free additions. ACA Research Admin Console Video Device License Video

Toolkit detail Deployment resource guide Email series (4) NEW Deployment resource guide Email series (4) Customer deck Email Deck Asset + Call to action assets: Infographic Digital Literacy paper CC student videos Deployment video NEW K12 School Site & District assets EEA transition guide Education Exchange Email Asset Asset Datasheets Emails Banners

Next Steps 1. Download and review program assets. Reach out to your Adobe Channel Account Manager or distributor with questions. Reach out to customers to guide them on program offerings. Close the sale. 2. 3.

Q&A