1. © 2014 Graduate Management Admission Council® (GMAC®) All rights reserved. Graduate Management Education Trends 2014 Glenda Lucas | Market Development, Senior Manager, Americas Graduate Management Admission Council MAACBA| October 2014

2. © 2014 Graduate Management Admission Council® (GMAC®) All rights reserved. Agenda Global Student Demand  Application Trends and Candidate Messaging  US Market Specifics Jobs and Corporate Recruiters

3. © 2014 Graduate Management Admission Council® (GMAC®) All rights reserved. GMAC Research GMAT Trend Analysis GMAC Survey Research GMASS Search Service

4. © 2014 Graduate Management Admission Council® (GMAC®) All rights reserved. Global Demand for Graduate Management Degrees GMAT Exams Taken Worldwide Since Testing Year 2001 243,529 Exams Taken TY2014 Source: GMAT® Exams Taken Data: TY2001 to TY2014 IR Impact

5. © 2014 Graduate Management Admission Council® (GMAC®) All rights reserved.

6. Global Demand for Graduate Management Degrees 243,529 Exams Taken TY2014 “Unique” Rate = 78% 188,927 Unique Examinees TY2014 Regional Differences: North America: 85% unique | APAC: 69% unique Source: GMAT® Data Analysis

7. © 2014 Graduate Management Admission Council® (GMAC®) All rights reserved. Discovering Talent Worldwide 188,927 Unique GMAT Examinees in TY2014 North American 79,037 Examinees -9% Compound Annual Growth Rate Since ‘10 European 19,248, -1% Mexican & Latin American 5,585, -2% Middle Eastern & African 11,279, -5% Asian-Pacific 73,778, +4% Source: GMAT® Examinees by Region of Citizenship

8. © 2014 Graduate Management Admission Council® (GMAC®) All rights reserved. Student Characteristic Trends Younger Candidates Women Specialized Masters Global Trends ‘10 to ‘14 Younger than 25 42%  48% Women 40%  42% Scores Sent 22%  30% Source: Unique GMAT examinees and scores reports sent.

9. © 2014 Graduate Management Admission Council® (GMAC®) All rights reserved. Youth Movement in Europe and Asia % of GMAT Examinees Younger Than 25 Regional Variation – European Example Younger: France (69%), Germany (68%) | Older: UK (31%), Portugal (35%) Source: GMAT® Unique Examinees by Citizenship

10. © 2014 Graduate Management Admission Council® (GMAC®) All rights reserved. More Women in Asia % Women among GMAT Examinees Regional Variation – APAC Example More Women: China (66%), Vietnam (59%) | Fewer Women: India (28%), S. Korea (33%) Source: GMAT® Unique Examinees by Citizenship

11. © 2014 Graduate Management Admission Council® (GMAC®) All rights reserved. The large portfolio of GME degrees Individuals sending GMAT score reports to various GME programs, TY2014 Up Since ‘10Down Since ‘10

12. © 2014 Graduate Management Admission Council® (GMAC®) All rights reserved. Interest in specialized business master’s programs has increased over the past five years, but MBA programs remain the dominant program type that mba.com registrants consider for their advanced business education % of mba.com Prospective Students indicating program consideration, 2013

13. © 2014 Graduate Management Admission Council® (GMAC®) All rights reserved. Unique Examinees Sending Scores in TY2014 by Degree Type Note: Unique GMAT examinees sending scores by program group 3 classification Distinct Pipelines

14. © 2014 Graduate Management Admission Council® (GMAC®) All rights reserved. Globally, fewer programs reported increases in specialized masters applications in 2014. Source: GMAC Application Trends Survey 2014. Note: previous year data may differ slightly from public reports due to late survey respondents. Differences, however, would be minor.

15. © 2014 Graduate Management Admission Council® (GMAC®) All rights reserved. One Possible Reason Source: GMAT® Examinees by Citizenship. TY2012 and TY2013 smoothed to adjust for IR testing spike in TY2012. Note: Testing in China has jumped in July and Aug 2014

16. © 2014 Graduate Management Admission Council® (GMAC®) All rights reserved. Why are new pipelines so important? 36,085 Citizens 23,747 Citizens GMAT Examinees TY2014 Student Age Population Change 2012 to 2020 205m  225m +18m, +9% 225m  188m -38m, -17% Source. GMAT Testing Data TY2014. US Census Bureau International Data Base. Retrieved April 2013 Expectations for Tomorrow

17. © 2014 Graduate Management Admission Council® (GMAC®) All rights reserved. Globally, FT MBA programs show signs of stabilization while PT MBAs struggle Source: GMAC Application Trends Survey 2014. Note: previous year data may differ slightly from public reports due to late survey respondents. Differences, however, would be minor.

18. © 2014 Graduate Management Admission Council® (GMAC®) All rights reserved. Will Specialized Masters Degrees Erode MBA Pipelines of Tomorrow? How likely are you to consider an MBA now that you’ve earned a specialized masters? Source. GMAC Graduate Management Education Graduate Survey (GMEGS) 2014. Question answered by 2014 grads!

19. © 2014 Graduate Management Admission Council® (GMAC®) All rights reserved. Time Frame When Students Develop Short List of Business Schools, by Average Number of Months Before the GMAT Exam, and by Citizenship mba.com Prospective Students, 2013

20. © 2014 Graduate Management Admission Council® (GMAC®) All rights reserved. Top Motivations Increase Job Opportunities (66%) Increase Salary Potential (64%) Develop Business Knowledge, Skills, & Abilities (63%) Source: GMAC mba.com Prospective Students Survey, 2013 Moving Beyond One-Dimensional Student Motivations 1 = Not at all Important 7 = Extremely Important Psychographic Drivers of Prospects

21. © 2014 Graduate Management Admission Council® (GMAC®) All rights reserved. US Testing Specifics

22. © 2014 Graduate Management Admission Council® (GMAC®) All rights reserved. US Business Schools – Professional Degrees % of Programs with Application Growth by Year Source: GMAC Application Trends Survey 2013. Note: previous year data may differ slightly from public reports due to late survey respondents. Differences, however, would be minor.

23. © 2014 Graduate Management Admission Council® (GMAC®) All rights reserved. US Business Schools – Full-Time Degrees % of Programs with Application Growth by Year Source: GMAC Application Trends Survey 2013. Note: previous year data may differ slightly from public reports due to late survey respondents. Differences, however, would be minor. 201220132014 Domestic Candidates 22%38%48% Foreign Candidates 41%56%65% US FT 2-Year MBA Programs with increasing applications by applicant type Programs with Growth by US Region Overall Apps vs. Domestic Apps Midwest: 67% vs. 34% West: 65% vs. 52% South: 63% vs. 55% Northeast: 54% vs. 44%

24. © 2014 Graduate Management Admission Council® (GMAC®) All rights reserved. US Schools GMAT Scores Received% of total 1. FT MBA 2-Year246,54049% 2. PT MBA59,53512% 3. Master's in Accounting58,71512% 4. Master's in Finance33,3227% 5. FT MBA 1-Year21,0844% Top 5 Subtotal419,19683% US Total503,708100% Top 5 Program Types Receiving GMAT Score Reports in TY2014 Source: GMAT Score-Sending Trends TY2014

25. © 2014 Graduate Management Admission Council® (GMAC®) All rights reserved. US Student Pipeline Characteristics % Women % Younger Than 25 Source: GMAT® Unique Examinees by Residence

26. © 2014 Graduate Management Admission Council® (GMAC®) All rights reserved. GMAT Examinees by US Metro Area of ResidenceTY2014 5 Year Growth Rate Change from TY2013 New York-Northern New Jersey-Long Island, NY-NJ-PA 10,384-9%-4% Los Angeles-Long Beach-Santa Ana, CA 4,114-9%1% Chicago-Naperville-Joliet, IL-IN-WI 3,925-9%-5% Washington-Arlington-Alexandria, DC-VA-MD-WV 3,319-8%0% Boston-Cambridge-Quincy, MA-NH 3,038-11%-7% Houston-Sugar Land-Baytown, TX 2,793-6%1% Dallas-Fort Worth-Arlington, TX 2,500-8%-10% San Francisco-Oakland-Fremont, CA 2,393-8%0.3% Atlanta-Sandy Springs-Marietta, GA 2,186-11%-7% Philadelphia-Camden-Wilmington, PA-NJ-DE-MD 2,137-8%-1% Seattle-Tacoma-Bellevue, WA 1,509-5%4% Miami-Fort Lauderdale-Pompano Beach, FL 1,445-6%4% San Diego-Carlsbad-San Marcos, CA 1,239-6%-1% Minneapolis-St. Paul-Bloomington, MN-WI 1,184-10%-7% Detroit-Warren-Livonia, MI 1,121-8%-5% San Jose-Sunnyvale-Santa Clara, CA 1,100-11%-4% Denver-Aurora, CO 1,039-8%-6% Pittsburgh, PA 914-4%-2% Tampa-St. Petersburg-Clearwater, FL 882-5%-11% St. Louis, MO-IL 849-8%-6% Source: GMAT® Unique Examinees by Residence Change in GMAT Examinees from TY2013 Growth Seattle: 4% Miami: 4% Houston: 1% LA: 1% Decline Atlanta: -11% Boston: -11% San Jose: -11% Minneapolis: -10% GMAT Examinees by US Metro Area

27. GMAT Examinees by US Metro Area of ResidenceWomen Younger Than 25 MBA or EMBA Interest Business Undergrads New York-Northern New Jersey-Long Island, NY-NJ-PA 41%40%74%51% Los Angeles-Long Beach-Santa Ana, CA 41%32%76%45% Chicago-Naperville-Joliet, IL-IN-WI 37%33%77%50% Washington-Arlington-Alexandria, DC-VA-MD-WV 39%29%79%40% Boston-Cambridge-Quincy, MA-NH 40%39%74%45% Houston-Sugar Land-Baytown, TX 42%36%69%54% Dallas-Fort Worth-Arlington, TX 40%41%61%57% San Francisco-Oakland-Fremont, CA 44%29%79%40% Atlanta-Sandy Springs-Marietta, GA 40% 66%61% Philadelphia-Camden-Wilmington, PA-NJ-DE-MD 38%39%76%53% Seattle-Tacoma-Bellevue, WA 42%33%71%48% Miami-Fort Lauderdale-Pompano Beach, FL 42%56%55%66% San Diego-Carlsbad-San Marcos, CA 37%30%75%44% Minneapolis-St. Paul-Bloomington, MN-WI 40%34%80%51% Detroit-Warren-Livonia, MI 38%45%73%55% San Jose-Sunnyvale-Santa Clara, CA 42%26%80%34% Denver-Aurora, CO 41%39%56%55% Pittsburgh, PA 39%48%79%57% Tampa-St. Petersburg-Clearwater, FL 41%49%59%68% St. Louis, MO-IL 40%52%65%61% Source: GMAT® Unique Examinees by Residence Characteristics of GMAT Examinees by US Metro Area

28. © 2014 Graduate Management Admission Council® (GMAC®) All rights reserved. GMAT Scores Received by School Location TY2014 5 Year Growth Rate Change Since TY2013 California72,327-3%8% New York62,829-4%-2% Massachusetts52,563-4%2% Illinois39,678-4%1% Texas36,893-3%1% Pennsylvania30,801-5%2% North Carolina19,483-5%1% Florida16,593-6% Michigan12,936-5%-1% Georgia11,271-9%-2% Ohio11,162-8%-5% Indiana10,388-5%2% Virginia9,045-6%-2% Maryland8,9596%15% District Of Columbia8,257-8%-2% Connecticut8,229-2%7% Washington8,040-1%14% Missouri7,013-5%1% Tennessee6,992-5%3% New Jersey6,528-9% Source: GMAT® Score Sending Data GMAT Score Reports Received by US State Change in GMAT Score Volume from TY2013 Growth Maryland: 15% Washington: 14% California: 8% Connecticut: 7% Decline New Jersey: -9% Florida: -6% Ohio: -5% New York: -2%

29. GMAT Scores Received by School Location % Non-US Citizens % US Citizens % MBA and EMBA Programs % Non-MBA Masters Programs % Other Programs (e.g., PhD) California 56%44%79%19%2% New York 62%38%65%32%3% Massachusetts 65%35%75%22%3% Illinois 56%44%75%22%2% Texas 47%53%60%35%4% Pennsylvania 55%45%78%18%3% North Carolina 42%58%71%26%3% Florida 38%62%52%42%5% Michigan 52%48%71%26%3% Georgia 38%62%70%26%4% Ohio 55%45%57%39%4% Indiana 54%46%72%24%4% Virginia 41%59%70%27%3% Maryland 68%32%41%56%3% District Of Columbia 51%49%63%36%2% Connecticut 56%44%82%16%3% Washington 47%53%67%28%5% Missouri 44%56%51%30%20% Tennessee 24%76%66%31%2% New Jersey 51%49%58%38%4% Characteristics of GMAT Examinees Sending Scores to Top 20 US States

30. © 2014 Graduate Management Admission Council® (GMAC®) All rights reserved. Job Outcomes in 2014

31. © 2014 Graduate Management Admission Council® (GMAC®) All rights reserved. How students view their economy % of prospects perceiving regional economy as stable or strong Until 2011, prospects worldwide sensed a modest recovery Source: GMAC mba.com Prospective Students Survey. Data by residence and smoothed by three months.

32. © 2014 Graduate Management Admission Council® (GMAC®) All rights reserved. A tale of three regions since 2011 How students view their economy % of prospects perceiving regional economy as stable or strong Source: GMAC mba.com Prospective Students Survey. Data by residence and smoothed by three months.

33. © 2014 Graduate Management Admission Council® (GMAC®) All rights reserved. More Companies are Hiring * 2014 Planned MBA Hiring Source: GMAC Corporate Recruiters Survey, 2014 The percent of companies planning to hire MBAs reached 8-year high in 2014.

34. © 2014 Graduate Management Admission Council® (GMAC®) All rights reserved. Hiring Expectations Among US Companies Source: GMAC Corporate Recruiters Survey 2014. Not enough 2014 data available for Middle Atlantic and Southwest. 2012 planned shown for these regions.

35. © 2014 Graduate Management Admission Council® (GMAC®) All rights reserved. The MBA Premium Expected Median Starting Salaries for Recent Business Graduates $95,000 US Companies $69,000 European Companies MBA Source. GMAC Corporate Recruiter Survey 2014

36. © 2014 Graduate Management Admission Council® (GMAC®) All rights reserved. The MBA Premium Expected Median Starting Salaries for Recent Business Graduates $95,000$75,000*$73,000$63,000 US Companies $69,000$55,000$57,000$52,000 European Companies MBA Masters in Management Masters in Finance Masters of Accounting Source. GMAC Corporate Recruiter Survey 2014 *Source. GMAC Corporate Recruiter Survey 2013

37. © 2014 Graduate Management Admission Council® (GMAC®) All rights reserved. The MBA Premium Expected Median Starting Salaries for Recent Business Graduates $95,000$75,000*$73,000$63,000$50,000 US Companies $69,000$55,000$57,000$52,000$41,000 European Companies MBA Masters in Management Masters in Finance Masters of Accounting Bachelors Degree (All Fields) Source. GMAC Corporate Recruiter Survey 2014 *Source. GMAC Corporate Recruiter Survey 2013

38. © 2014 Graduate Management Admission Council® (GMAC®) All rights reserved. Summary GMAT trends indicate general softening World regions with strong interest in specialized masters programs tend to have a greater share of women and younger candidates taking the GMAT App trends show a mixed picture for MBAs and moderating for specialized masters as China slows The US job market continues to stabilize for graduates

39. © 2014 Graduate Management Admission Council® (GMAC®) All rights reserved. Questions? Glenda Lucas I lucas@gmac.comlucas@gmac.com Thank You!