How best to work with Brazilian agents to meet their needs

Market Research 2013 Segment of International Education and Exchange Programs in Brazil SUPPORT: MARCH 2013

Metodology and sample METHODOLOGY SAMPLE PERIOD OF DATA COLLECTION QUANTITATIVE Telephone Call 80 cases 08 to 21 January 2013

Profile of the respondent Work at the agency since Position at the agency Education Level Sex Male Female Graduation Postgraduation Less than 1 year Between 1 and 5 years Between 6 and 10 years Over than 15 years Between 11 and 15 years Shareholder / Owner Director Manager Coordinator Other Base 2013: 80 Base 2011: 71

Sample includes associate and non-associate Q. Is your agency a Belta member? (SPONTANEOUS AND UNIQUE) Q. In what year did your agency become associated with Belta? 11,3% ALREADY BEEN ASSOCIATED WITH, BUT ARE NOT MORE 43,8% NEVER BEEN ASSOCIATED Base:80 45,0% ASSOCIATES There is a balance between associate and non associate agencies. However the number of agencies becoming a Belta members was low last year. Among the 80 agencies contacted, there were only two new members associated in In 2011, 71 agencies were counted, with 56.3% (associate) and 43.7% (not associate).

Agency profile Base 2013: 80 Base 2011: 71 Q. In what city is your agency located? (SPONTANEOUS AND UNIQUE) LocationTempo de mercado Up to 5 years From 6 to 10 years From 11 to 15 years Over 15 years Southeast South Northeast North Midwest

Agencies works with small team Base 2013: 80 Base 2011: 71 Q. Currently how many employees work at the agency? (SPONTANEOUS AND UNIQUE) 45% 71,8%* 32,5% Up to 5 employees From 6 to 10 employees ,8%14,1%From 11 to 30 employees 8,8%14,1%More than 30 employees * In the research of 2011, the average of employees was up to 10 employees. In 2013, this average was dismembered.

All agencies work with languages course Q. In general, what are the activities of your company? More than anything else? (Spontaneous and multiple) COURSES Language Course100%97,2% High School Abroad77,5%84,5% Vocation Course81,3%76,1% Postgraduate47,5%33,8% Graduate33,8%29,6% Specialization40,1%19,7% Language Course with the possibility of working10%14,1% Combined Courses1,3%8,5% Professional Courses17,5%5,6% Courses for people over 50 years10%2,8% Master's degree2,6%2,8% Courses for Executives6,3% Educational Couseling1,4% WORK Working Abroad40,1%36,6% Internship10%22,5% Au pair8,8%15,5% Voluntary Program11,3%2,8% Business Travel1,4% Corporate Events1,4% CULTURAL TRAVELS Vocation Packages36,3%49,3% Summer Camp/Holiday2,8% Cultural Exchange in Brazil (High School)1,4% TRAVEL SERVICES Health Insurance for Travel43,8%22,5% Purchase and Sale of Foreign Currency2,6% Issuing of Tickets41,3%21,1% Reservation of Acomodation30%18,3% Assistance for Visa27,5%8,5% Exchange4,2% Base 2013: 80 Base 2011: 71 Other with 1 mention: Car rental / College preparation course / Sports / Food / Dance / Music /:

Course language is the main activity of the agencies Base 2013: 80 Base 2011: 71 Q. And which of these is the main activity of the agency? (SPONTANEOUS AND UNIQUE) Languages Course High School Vocation Course Vocation Package Work Programs Postgraduation Other

Increases average time in the period between 4 and 6 months Base 2013: 80 Base 2011: 71 Q. In general, how long, on average, students stay abroad? (STIMULATED AND UNIQUE) There was an increase of 11 percent for students who stay abroad between 4 and 6 months, whereas the percentage has fallen to the same degree, those who stay between 1 and 3 months abroad. Up to 1 month From 1 to 3 months From 4 to 6 months More than 6 months Did not know / Did not answer

Most students are aged 18 to 30 years Q. And which age range represents the largest share of students? (STIMULATED AND UNIQUE)) The agencies continue sending more students who are the range of 18 to 30 years abroad. Note that the research of 2011, the survey predicted a higher number of age groups (7), which were shorter. Therefore, the respondent could not choose a single range and the response that was originally single, became multiple. Base:80Base:71 Up 17 years old From 18 to 30 years old From 31 to 50 years old Up 17 years old From 18 to 30 years old From 31 to 50 years old

Ranking of destinations remain Q. Currently, what are the 3 main countries that have attracted more interest from students looking for courses abroad? (AND MULTIPLE SPONTANEOUS) The Countries USA, Canada and UK remain among the most favorite of the students. Note that both in 2011 and 2013, the significant interest in the UK is exclusively for England. Main countries of destination for students Base: Base: 71 Canada USA UK Ireland Australia Spain New Zealand Other Canada USA UK Australia Ireland New Zealand Other

Malta, South Africa and China: new destinations in 2012 Q. Compared with 2012 the previous years, you identify the development of new countries to the destinations? (MULTIPLE and SPONTANEOUS) Base :80

New Zealand: object of desire of students Approximately 90% of the contacted agencies offer New Zealand as a destination for students. The greatest demand is for languages course, with almost 70%. There is one feature in particular that this country stands for students. The cost / benefit ratio comes in 1st place, closely followed by the issue of security and easy visa. Q. What is the most popular course looked by the students traveling to New Zealand? (STIMULATED AND UNIQUE) Q. From the situations which I will quote, which you associate New Zealand in first? And second place? And thirdly? (STIMULATED AND ONE PER LINE) Base: 69 1st place 2nd place 3rd place 33,8% - Cost / benefit 25,0% - Security 23,0% - Easy visa Languages Course High School Other

Investment varies according to the course The average investment of the students varies with the course. The language courses and vocation courses, as well work and travel, are those that cost less on average compared to the others. The courses with a longer duration, such as High School, Graduation and Postgraduation are therefore more expensive. Q. Could you tell me what is the average investment per student in VALUES (dollars)? (STIMULATED AND MULTIPLE) Investment of the students (dollar) Minimum valueMaximum valueAverage Language courses$ 1500,00$ 16000,00$ 4868,30 High School$ 4000,00$ 78000,00$ 14975,40 Graduation$ 3100,00$ 70000,00$ 21764,20 Postgraduation$ 6000,00$ ,00$ 25238,00 Vocation courses$ 2000,00$ 50000,00$ 5823,50 Work programs$ 1500,00$ 15500,00$ 6235,80

Most agencies send up to 300 students It is noted stability in the amount of students. From the year 2008 until 2012, remains an approximate average of 70% in sending up to 300 students. When analyzed by associates agencies and not associates there is no difference in the volume of students. Q. On average, how many students were sent abroad in 2011? And in 2012? Base 61 Base 62Base 70Base 73 Up to 10041,0%34,4%30,7%34,3%30,1% 101 to 20024,0%26,2%22,6%20,0%23,3% 201 to 3006,6%13,1%17,7%8,6%11,0% 301 to 50013,1%9,8%11,3%17,1%16,4% 501 to 10004,9%8,2%8,1%10,0%9,6% 1001 to 20004,9%3,3%4,8%4,3%2,7% 3001 to 55003,3% 3,2%4,3%5,5% or more 1,6% 1,4%

U$ Number of students sent Investment YEAR BASE 96 (UNIVERSE) U$ (SAMPLE) U$ (PROVIDED DATA) U$ (UNIVERSE) U$ (SAMPLE) U$ (PROVIDED DATA) Average of students sent

Canada wins with languages course, high school, vocation course and work programs Q. Thinking in the last decade, which country won more students (read each modality type)? (SPONTANEOUS AND ONLY ONE PER LINE) WORK RELATED PROGRAMS WINLOST Canada USA Ireland Australia South Africa Do not apply Do not know UK USA Australia Canada Ireland Germany Do not apply Do not know 22,5% 18,8% 21,3% 7,5% 1,3% 6,3% 22,5% 26,3% 20,0% 6,3% 5,0% 1,3% 6,3% 29,6% VOCATION COURSE WINLOST Canada UK USA South Africa Ireland Do not apply Do not know USA UK Australia New Zealand Canada South Africa Germany Spain No country Do not apply Do not know 37,5% 26,3% 25,0% 2,5% 1,3% 2,6% 6,3% 32,5% 16,3% 6,3% 5,0% 2,5% 1,3% 18,8% 1,3% 13,8% LANGUAGES COURSE WINLOST Canada USA UK Ireland Australia South Africa New Zeland Do not know USA UK Australia New Zealand Canada South Africa Spain Ireland Italy Do not apply Do not know 60,0% 11,3% 10,0% 8,8% 6,3% 1,3% 38,8% 25,1% 8,8% 6,3% 5,0% 2,5% 1,3% 2,5% 8,5% HIGH SCHOOL WINLOST Canada USA New Zealand Australia UK Do not apply Do not know USA Australia UK New Zealand Canada Germany Spain Switzerland Do not apply Do not know 42,5% 25,0% 11,3% 5,0% 2,5% 3,8% 8,8% 46,3% 11,3% 8,8% 5,0% 2,5% 1,3% 3,8% 18,8% Base: 80

USA wins with graduation and postgraduation Q. Thinking in the last decade, which country won more students (read each modality type)? (SPONTANEOUS AND ONLY ONE PER LINE) GRADUATION WINLOST USA Canada UK Australia Spain Switzerland Do not apply Do not know USA UK Canada Australia New Zealand No country Do not apply Do not know 32,6% 11,3% 6,3% 3,8% 1,3% 6,6% 36,3% 13,8% 3,8% 2,5% 10,0% 6,3% 47,5% POSTGRADUATION WINLOST USA UK Canada Australia Spain Switzerland Do not apply Do not know USA UK Canada Australia France Ireland No country Do not apply Do not know 27,5% 15,0% 8,8% 3,8% 2,5% 6,3% 32,6% 18,8% 15,0% 2,5% 1,3% 10,0% 6,3% 42,5% Base: 80

Canada, France and Spain still being the preference for learning languages Q. Today, what is the main destination for students who want to study English? / Q. And what is the main destination for those who want to learn French? / Q. And who wants to learn Spanish? (SPONTANEOUS AND UNIQUE) Comparing the data from 2011 and 2013, the three countries most wanted to learn English, French and Spanish, remain the same. France Canada Do not know Canada USA UK Australia Ireland Spain Argentina Chile Do not know / Do not work Chile

Class C: new market opportunity Q. To finish I will read a few sentences and I would like you say if you agree or disagree with each one. (STIMULATED AND ONLY IN LINE) 92,0% 88,8% Today the class C looking for education programs abroad Totally agree Partially agree Partially disagree Disagree Do not know Today the exchange programs are more accessible to class C Totally agree Partially agree Partially disagree Disagree Base:80

Internet expands the access Base:80 When asked about the easy offer by the internet to the students interested in planning an exchange program, over 95% of the respondents realized this scenario (strongly agree + partially agree). The internet has facilitated the direct access of students to perform an exchange program Totally agree Partially agree Partially disagree Disagree

The business for the next years will be successful Base:80 Q. Thinking about the future, how is the development of business in the international education market? (MULTIPLE AND SPONTANEOUS) 75,0% POSITIVE ASPECTS 31,3% NEGATIVE ASPECTS 7,5% NEUTRAL ASPECTS

Positive and negative aspects Base:80 Q. Thinking about the future, how it is the development of business in the international education market? (MULTIPLE AND SPONTANEOUS) Investment in professional career Increase in demand for language courses Popularization of the exchange programs Economic stability Purchasing power of the class C The internet can disrupt the market Market stability

Conclusions The market of the educational and cultural travel organizers in Brazil remains concentrated, a limited number of agencies are responsible in a large part of sending students abroad. With the information collected is estimated that the market moved U$1,027,775,065 in Most exchange agencies are formed by micro and small companies, with up to 10 employees. The class C has a growing market share, is the new public of the exchange agencies. The predominant age range of the exchange students is 18 to 30 years old. Canada appears as the most preferred destination of students and as the country that won in various types of courses

Conclusions There is a traditional choice when the student choose a country to learn a language. Canada, France and Spain dominate in preference Malta, South Africa and China were the new countries of destination of students in 2012 Course language is the most popular, and according to the data collected, it can expand its market share The internet can be combined as a way to publicize the agencies, but can also threatens the services offered by the companies due to facilitate the access of students to conduct their own travels. The perspectives for the market are positive and promise an increase in business for the exchange agencies.

BELTA

Non-profit civil society, founded in st association into the International Education field in Latin America Congregates 72 members Covered by Regional Coordinators all over Brazil New members admission: upon demonstration of integrity before the market and a conduct in accordance to the Social Statute and association’s Code of Ethics Associated companies are committed to acquainting, promoting, intermediating and executing education and exchange program services in Brazil and overseas Partnership with Embratur and Ministry of Tourism

BELTA STM Language Star Awards Winner for five time the Agency Association by STM (Study Travel Magazine) Language Star Awards and had enter to Hall of Fame

SÃO PAULO (21) ABC International BIL BOS CI Cultural Global Education Abroad EF Experimento Friends in the World Intercâmbio Connexion Intercâmbio Global Just Intercâmbios London Connexion Moinho Traveller Mundial Intercâmbio SIS STB Study N’Travel This Way Upward Yázigi Travel RIO DE JANEIRO (4) AFS CP4 ICCE International Schools ESPÍRITO SANTO (1) IE MINAS GERAIS (10) Beth Coutinho Central do Estudante DMP ETC FIT IEP Intervip Master Exchange Number One Upgrade SALVADOR (1) BEX SANTA CATARINA (3) Cultural Adventure Intercultural Travelmate CURITIBA (2) Improvement World Study GOIÁS (2) Aiusa/Inter-Brasil High Connections RIO GRANDE DO NORTE (1) Cia do Intercâmbio CEARÁ (1) International Center PIAUÍ (1) Embarque Educacional MARANHÃO (1) Via Mundo 48 Belta associates Around 600 agencies in Brazil 90% of the Brazilian market

BELTA Belta Magazine (EI! Magazine) Associate’s Profiles and Information 30,000 copies distributed for free plus online version Targeted for final clients and students all over Brazil

BELTA Belta Online – 35,000 visits per month 31,000 registered users

BELTA Feira do Intercambista March 02, th edition São Paulo - Brazil

THANK YOU Carlos Robles