A European Perspective on e- Learning - zefly.com

 
A European Perspective on e- Learning - zefly.com
IBIS Capital | e-Learning

           A European
           Perspective on e-
           Learning

IBIS Capital | A European Perspective on e-Learning
A European Perspective on e- Learning - zefly.com
Important Notice

 The information in this report (“Report”), which does not purport to be comprehensive, has been prepared by IBIS Capital Ltd (“IBIS”)
 and has not been independently verified and may be subject to updating, completion, revision and amendment and such information
 may change materially. Although reasonable care has been taken to ensure that the facts stated in the Report are accurate and the
 opinions expressed are fair and reasonable, no representation or warranty, expressed or implied, is or will be made, and no
 responsibility or liability is or will be accepted by IBIS or by any of their respective shareholders, officers, employees or agents as to or
 in relation to the accuracy or completeness of the Report or any other written or oral information made available to any party and any
 liability therefore is hereby expressly disclaimed.

 The Report is being supplied to recipients solely for their information and may not be reproduced or redistributed, in whole or in part,
 to any other person, or published, in whole or in part, for any purpose without the prior consent of IBIS. Where source material has
 been reproduced the copyright remains the property of the copyright owner and material may not be reproduced in any form
 whatsoever without the owner’s prior consent. The distribution of the Report in certain jurisdictions may be restricted by law and
 therefore any person into whose possession the Report comes should inform himself about and observe any such restriction.

IBIS Capital | A European Perspective on e-Learning                                                                                              2
Glossary

 Adult education: Self-learning and personal development
 Capital expenditure: Expenditure on assets that last longer than a year, including construction, renovation or major repairs to buildings as well to equipment, furniture and computers
 Current expenditure: Current expenditure covers goods and services bought and used during the year
 Corporate training: Professional training and learning and development programmes for firms
 EM: Emerging markets
 Higher Education (HE): Formal education post 18 years of age
 Instructor-Led Training (ILT): Usually refers to traditional classroom training, in which an instructor teaches a class of students. The term is used synonymously with on-site training and
 classroom training
 ISCED 0: Pre-primary education: Pre-primary education is defined as the initial stage of organised instruction. It is school- or centre based and is designed for children aged at least 3 years
 ISCED 1: Primary education: This level begins between 5 and 7 years of age, is compulsory in all countries and generally lasts from four to six years
 ISCED 2: Lower secondary education: It continues the basic programmes of the primary level, although teaching is typically more subject focused. Usually, the end of this level coincides with the
 end of compulsory education
 ISCED 3: Upper secondary education: This level generally begins at the end of compulsory education. The entrance age is typically 15 or 16 years. Entrance qualifications (end of compulsory
 education) and other minimum entry requirements are usually needed. Instruction is often more subject-oriented than at ISCED level 2. The typical duration of ISCED level 3 varies from two to five
 years
 ISCED 4: Post-secondary non-tertiary education: These programmes straddle the boundary between upper secondary and tertiary education. They serve to broaden the knowledge of ISCED
 level 3 graduates. Typical examples are programmes designed to prepare pupils for studies at level 5 or programmes designed to prepare pupils for direct labour market entry
 ISCED 5: Tertiary education (first stage): Entry to these programmes normally requires the successful completion of ISCED level 3 or 4. This level includes tertiary programmes with academic
 orientation (type A) which are largely theoretically based and tertiary programmes with occupation orientation (type B) which are typically shorter than type A programmes and geared for entry into
 the labour market
 ISCED 6: Tertiary education (second stage): This level is reserved for tertiary studies that lead to an advanced research qualification (Ph.D. or doctorate)
 K-12: Formal education period up to 18 years of age
 Learning Management System (LMS): Software that automates the administration of learning/course delivery events. The LMS registers users, tracks courses in a catalogue, records data from
 learners and provides management reports. An LMS is typically designed to handle courses by multiple publishers and providers. It usually does not include its own authoring capabilities, instead, it
 focuses on managing courses created by a variety of other sources
 m-Education: Any form of e-Learning delivered to a mobile device, e.g. via smartphones or tablets
 Programme for International Student Assessment (PISA): International study that was launched by the OECD in 1997. It aims to evaluate education systems worldwide every three years by
 assessing 15-year-olds' competencies in the key subjects: reading, mathematics and science
 Rote Learning: A memorisation technique based on repetition
 RoE: Rest of Europe
 RoW: Rest of the world
 Shareable Content Object Reference Model (SCORM): A set of standards and specifications for e-Learning training materials
 Tin Can API: An e-learning software specification that allows learning content and learning systems to speak to each other in a manner that records and tracks all types of learning experiences
 Talent Management System (TMS): An integrated software suite that manages performance management, learning and development and other talent capital related tasks
 Virtual Learning Environment (VLE): A web-based education system that models traditional education in a virtual environment
 Web-based Training (WBT): Any instructional event that can be accessed via the Internet or the Web

IBIS Capital | A European Perspective on e-Learning                                                                                                                                                       3
Table of Contents

                     5 – 20   The European e-Learning Market

                    21 – 27   Active European e-Learning Corporates

                    28 – 34   The European Education Market

                    35 – 38   The European Corporate Learning Market

                    39 – 44   General European Investment Trends

                    45 – 46   The European EdTech 20

                    47 – 57   Appendix
                              ─ A Closer Look at the European Education Market

IBIS Capital | A European Perspective on e-Learning                              4
IBIS Capital | A European Perspective on e-Learning

            The European e-
            Learning Market

IBIS Capital | A European Perspective on e-Learning
The European e-Learning Overview

               Significant Market Size                                                                         Split Between Corporate & Academic
       1                                                                                        4
               Of the $4.1tn trillion spent on education and                                                   The spend on academic education and learning
               training, approximately 25% is in Europe, making it                                             outweighs the spend on corporate training by about
               the 2nd largest market to North America. In the                                                 18x. There is also a regional split between northern
               schools market, Europe boasts 27% more teachers                                                 and southern Europe where for example in the
               than the US, with 4.6m teachers as compared to                                                  Nordics workers are 4x more likely to be receiving
               3.6m in the US                                                                                  training than in southern Europe

               A Highly Fragmented Market                                                                      European M&A still Nascent
      2                                                                                         5
               The European e-Learning market is a highly                                                      The level of activity within e-Learning M&A in
               fragmented market comprising up to 3,000                                                        Europe is currently limited, with very few deals over
               predominantly small entrepreneurial companies.                                                  $20m. The market remains in development. The
               The fragmentation represents in part the early stage                                            increase in venture investment is expected to fuel
               nature of the industry and the market difference                                                expansion and in due course increase strategic
               within Europe                                                                                   activity

               Limited Invested Capital to Date                                                                IBIS Capital’s View on Europe
      3                                                                                         6
               Although the relative difference in the size of                                                 The evidence of increased investment in Europe in
               markets between the US and Europe is not                                                        the sector and anecdotal support that companies are
               significant yet there is a big difference in the volume                                         experience an upsurge in activity points to a market
               of venture deals in e-Learning. Since 2007, 60% of                                              on the turn. We expect the e-Learning market to be
               global venture investments in e-Learning have been                                              characterised over the next 3 years by a significant
               in the US. Europe only accounts for 6% over the                                                 increase in investment in the sector as well as a level
               same period                                                                                     of consolidation as companies seek scale

                                                         Source: McKinsey, Eurostat, Capital IQ, OECD, Eurypedia, National Statistic Offices, Ministries of Education
IBIS Capital | A European Perspective on e-Learning                                                                                                                      6
The EdTech Hype Cycle

                                                                                                                                                   Years to Adoption
                                                                                                                                                          0-2 years

       Expectations                                                                                                                                       2-5 years
                                                                                                                                                          5-10 years
                                                                                                                                                          >10 years

                                                     Adaptive Learning

                                   BYOD Strategy             Digital Preservation of Research Data

                                 Gamification

                                     MOOC                         Web-based Office Productivity Suites

                                                                                                                Social Media in Education                      Self-publishing

                                                                       Social Learning Platform for Education              ePortfolios

                               Big Data
                                                                            Mobile Learning                                                                 Open Source Portals

                                                                                                                                                      Personal Learning Networks
         Learning Record Store                                                   ITIL                                                    Game Consoles as Media Hubs
                                                                                   E-textbooks                            Web-based tools for education
        “Tin Can” Initiative                                                                                         SaaS Administration Applications
                                                Cloud email for staff and faculty

                                                                                                                Media Tablets
                                                                 Virtual Environments
                                                                    Learning Repositories                 Lecture Capture and Retrieval Tools

                                                                                                                                                                       Time
                 Technology                 Peak of Inflated               Trough of                           Slope of                           Plateau of
                   Trigger                   Expectations               Disillusionment                     Enlightenment                        Productivity

                                                                   Source: IBIS Capital, Gartner
IBIS Capital | A European Perspective on e-Learning                                                                                                                                7
Global Education and Corporate Learning Expenditure

 2011A Global Education Expenditure by Geography
                                                                                                                                                      Key Points
                Pre-K-12         K-12      Post-K-12        Vocational                                               Developed
 ($bn)                                                                                         Emerging                Asia-                           In 2011, global education expenditure
 1,500                                                                                           Asia-                Pacific         Europe
                                                                          1,266                 Pacific                14%             25%              was $3.9tn with global corporate
                                                                                                 17%                                                    learning expenditure amounting to
                                                                  966                                                                                   $207bn
 1,000
                                                                                            Latin
                                          668
                                                   558
                                                                                           America                                                     Similar to other regions, K-12
                                                                                             8%
  500                                                                                                                                                   represents the largest segment
                           319                                                                Middle                                                    nominally within the European
           126                                                                                East &
                                                                                              Africa                                                    education sector
    0                                                                                          3%
                                                                                                                     North
          Middle       Latin   Emerging Developed               Europe    North                                     America                            From a global perspective, Europe’s
          East &      America Asia-PacificAsia-Pacific                   America                                     33%
          Africa                                                                                                                                        contribution is largest within the Pre-
                                                                                                                                                        K-12 segment
 2011A Global Corporate Learning Expenditure by Geography

  ($bn)                                                                                                                                               Breakdown of 2011 Total Expenditure
                                                                           74
    75                                                            71
                                                                                                   Developed
                                                                                                                               Europe
                                                                                                     Asia-
                                                                                                                                34%                                                     K-12
                                                                                                    Pacific
                                                                                                     19%                                                                               58.6%
   50
                                                       40                               Emerging                                                           Pre-K-12
                                                                                          Asia-                                                              6.6%
                                                                                         Pacific
                                                                                           7%
   25                                                                                                                                                  Corporate
                                                                                       Latin
                                          14                                          America                                                            5.0%
                           6                                                            3% Middle
            2                                                                                 East &                                                       Vocational
    0                                                                                         Africa                                                         4.8%
          Middle       Latin            Emerging Developed      Europe    North                1%                     North
          East &      America             Asia-    Asia-                 America                                     America                                            Post-K-12
          Africa                         Pacific  Pacific                                                             36%                                                25.0%

                                                                         Source: McKinsey
IBIS Capital | A European Perspective on e-Learning                      Note: K-12 is used as a synonym for formal education from kindergarten to 18 years of age                                8
Growing Education Market Driven by Growth of e-Learning

 Global Education Expenditure Forecast by Subsectors
                                                                                                                                    Key Points

  ($bn)                                                                                                                              Global education expenditure market is
  10,000                                                                                                                              projected to grow at 7.4% until 2017
                                                                       For profit
                                                6,334                  Test preparation / tutoring market
   8,000                                                                                                                             e-Learning expenditure projected to
                               5,482                                   Global language learning
                                                                                                                                      grow at 23.0% p.a. to $256bn from
   6,000       4,435                                                   Serious gaming
                                                                                                                                      2012P-2017P which comprises:
                                                                       Child care
   4,000                                                                                                                                 ‒ K-12 CAGR of 34.0%
                                                                       Social learning / communities
                                                                                                                                         ‒ Higher Education CAGR of 28.0%
                                                                       Corporate & government learning
   2,000                                                                                                                                 ‒ Corporate market CAGR of 13.0%
                                                                       Post secondary
                                                                       K-12
      0
               2012P           2015P           2017P

 e-Learning Expenditure Forecast by Subsectors

   ($bn)
     300
                                                256                    Corporate education
                                                                       Higher education
     200                                                               K-12
                                167

                91
     100

          0
               2012p           2015P           2017P

                                                        Source: IBIS Capital estimates, GSV education report, Ambient Insight research
IBIS Capital | A European Perspective on e-Learning                                                                                                                            9
Government Expenditure is Vital to Education

 Education Expenditures as a % of GDP (2000 vs. 2008)
                                                                                                                                                                                                                                                                                                                                              Key Points
                                   2008
  10%                              2000                                                                                                                                                                                                                                                                                                        Targeted government spending is an
   8%                                                                                                                                                                                                                                                                                                                                           important stimulus for enhancing the
   6%                                                                                                                                                                                                                                                                                                                                           skills within the labour force. In turn,
                                                                                                                                                                                                                                                                                                                                                investment in skills needed to drive
   4%
                                                                                                                                                                                                                                                                                                                                                economic prosperity
   2%

   0%                                                                                                                                                                                                                                                                                                                                          State of the labour market impacts
                                Iceland

                                                                                                               Belgium

                                                                                                                                                                                                      Mexico

                                                                                                                                                                                                                                                              Spain
                                                                                                                                                                                                                                                                      Ireland
                                                                                     France

                                                                                                       Korea

                                                                                                                         Canada

                                                                                                                                                          Poland

                                                                                                                                                                                                                                                    Germany

                                                                                                                                                                                                                                                                                Italy
                                                                                                                                                                   Austria

                                                                                                                                                                                                                                                                                                                                     Brazil
        OECD Average
                       Israel

                                                                   Chile

                                                                                                                                                Finland

                                                                                                                                                                                                                           Japan
                                                                                                                                                                             Portugal
                                                                                                                                                                                        Netherlands

                                                                                                                                                                                                                                                                                        Hungary
                                          United States
                                                          Norway

                                                                           Denmark

                                                                                              Sweden

                                                                                                                                  Switzerland

                                                                                                                                                                                                               Australia

                                                                                                                                                                                                                                   United Kingdom

                                                                                                                                                                                                                                                                                                  Czech Republic
                                                                                                                                                                                                                                                                                                                   Slovak Republic
                                                                                                                                                                                                                                                                                                                                                demand for vocational training:
                                                                                                                                                                                                                                                                                                                                                 ‒ changes to the economic base result
                                                                                                                                                                                                                                                                                                                                                   in changes to the skills requirement
                                                                                                                                                                                                                                                                                                                                                 ‒ unemployed seek to re-train in order
                                                                                                                                                                                                                                                                                                                                                   to return to the labour market
 Proportions of Educational Expenditure from Public and Private Sources (ISCED 0-6)
                        Private funding
                        Public funding

                                                                                                     31%
  40%
                                                                                                   17%

                                                                                                  18%
                                                                                                  16%
                                   15%

                                                                                                 13%

                                                                                                 13%
                                   13%

                                                                                                 12%

                                                                                                 10%
         14%

                                                                                                10%
                                  13%

                                                                                                10%
                                                                                                10%

                                                                                                 9%
                                                                                               10%
                                                                                                9%
                                  8%

                                                                                                8%
                                 6%

  20%

                                                                                               9%
        6%

                                 5%

                                n/a

                                                                                              n/a
                                                                                              n/a

                                                                                              n/a
                                                                                              5%

                                                                                              0%

                                                                                              0%
                                                                                              2%
                                                                                              3%
   0%                                                                                         3%

  20%

  40%

  60%

  80%

 100%
        BE
        BG

        EE
        EU

        EL

        PT
        CZ

        ES

        PL

        CH
        DE

        CY

        MT

        AT

        RO
        DK

         IE

         FI
        FR
         IT

         IS
        LV
        LT
        LU

        NL

        NO

        HR
        TR
        HU

        SK

        UK

         LI
         SI

        SE

                                                                                                                                                                         Source: Eurostat, UOE, World bank
IBIS Capital | A European Perspective on e-Learning                                                                                                                                                                                                                                                                                                                                        10
Investment Trends: Academic and Corporate e-Learning
Increased Focus on the Academic Market

 Direct Investments in the Academic e-Learning Market                         (1)                                                         Key Points

($m)                                               2008-2012 Est.                                             48%                          Direct investments in the academic e-
                                                   CAGR (%) (1)                                                                             Learning market have recovered from the
750
                                                                                                                                            lows of 2002 to 2004
600
                                                                                                                                           Since 2004, there has been a significant
450
                                                                                                                                            increase in funding within the academic
                                                                                                                                            e-Learning market
300
                                                                                                                                           Investment trends in corporate e-
150                                                                                                                                         Learning are correlate to the general
                                                                                                                                            economic environment, most likely as a
  0                                                                                                                                         consequence of the fluctuations of
       1999   2000   2001   2002   2003   2004   2005   2006   2007    2008      2009      2010      2011     2012                          corporate spend on training during the
                                                                                                                                            economic cycle
 Direct Investments in the Corporate e-Learning Market                         (1)
                                                                                                                                           Since 1999, direct investments in the
($m)                                                                                                                                        corporate e-Learning market hit an all-
750
                                                                                                                                            time low of $45m in 2010

600

450

300

150                                                                                                           (29%)

  0
       1999   2000   2001   2002   2003   2004   2005   2006   2007    2008      2009      2010      2011     2012

                                                                Source: Ambient Insight
IBIS Capital | A European Perspective on e-Learning             (1)   Estimated based on Ambient Insight’s report titled “The 2012 Boom in Learning Technology Investment ”. The scope   11
                                                                      of the data includes angel, venture capital, and private equity investments
The Rise of Consumer-Facing e-Learning

 Direct Investments By Type of Target Customer        (1)

                                                                                                                                Key Points
Deal Volume                                    Deal Value
                                                                                                                                Major themes in 2012:
 (Volume)                                      ($m)

80                                             750                                                                               Investment in consumer-facing e-
                  2010   2011   2012                                     2010       2011      2012                                Learning companies has increased
60                                             600
                                                                                                                                  nearly threefold year-on-year
                                               450
40
                                               300                                                                               By contrast investment in corporate-
20                                             150                                                                                facing e-Learning companies fell
  0                                              0
                                 (2)                                                            (2)
                                                                                                                                 Social learning has attracted significant
                                                                                                                                  interest from the investment
                                                                                                                                  community with an annual growth rate
                                                                                                                                  in new investment over the last 3 years
 Direct Investments in Consumer-Facing         Direct Investments by Emerging Product
                                                                                                                                  of 224%
 e-Learning Companies (1)                      Type (1)

                                                                                                                                 Mobile-based e-Learning continues to
($m)                                          ($m)          77%                 224%                    19%                       receive
 750                                          300

600                                           250

                                              200                     2010-12
 450                                                                  CAGR (%)
                                               150
 300
                                              100
 150                                           50

   0                                            0
       2004

       2010
       2001

        2011
       2012
       2002
       2000

       2003

       2005
       1999

       2006

       2008
       2009
       2007

                                                        Cognitive         Social Learning Mobile Learning
                                                        Learning
                                                                          2010       2011      2012

                                                      Source: Ambient Insight
IBIS Capital | A European Perspective on e-Learning   (1)   Estimated based on Ambient Insight’s report titled “The 2012 Boom in Learning Technology Investment ”. The scope   12
                                                            of the data includes angel, venture capital, and private equity investments
                                                      (2)   Refers to higher education
Significant m-Education Growth and App Downloads

 m-Education Market by Region(1)
                                                                                                                                                           Key Points
   ($bn)
    40.0                                                                                 37.8            2011-2020 CAGR                                     The investment in m-Education is
                                                                                                                                                             estimated to have grown annually by
                                                                                                           North America: 31%
    30.0                                                                       28.3                                                                          approximately 19% for the last 3 years,
                                                                                                           Europe: 29%                                       according to Ambient Insight
                                                                        21.4
    20.0                                                         16.2                                      Developied Asia-Pacific: 23%
                                                                                                                                                            The Serious Gaming & Gamification
                                                        12.4
                                             9.5                                                           Emerging Asia-Pacific: 54%                        sector is forecasted to grow from
    10.0                            7.3                                                                                                                      $2.0bn in 2012 to $7.4bn in 2015
                   4.4     5.6
            3.4                                                                                            Latin America: 54%

     0.0                                                                                                   Middle East & Africa: 50%                        Games and simulation based tools are
           2011A 2012P 2013P 2014P 2015P 2016P 2017P 2018P 2019P 2020P                                                                                       expected to grow at a 37% CAGR to
                                                                                                                                                             2020
 Free Education App Downloads(2)                                        Paid For Education App Downloads(2)
 2009-2011 CAGR (%)                                                     2009-2011 CAGR (%)                                                                  Education app downloads are greater
                                                                                                                                                             than the overall average in both free
                  News                                         342                    Business                                  221                          and paid for downloads
                 Travel                           270                      Healthcare & Fitness                                213
             Education                      239                                           Music                                212
   Healthcare & Fitness                    234                               Social Networking                                206
               Lifestyle                   232                              Books & Reference                                201
     Social Networking                    223                                             News                        175
    Books & Reference                     226                                   Entertainment                           185
                  Music                   226                                        Education                         180
              Business              193                                                  Sports                      174
                 Sports           177                                                  Lifestyle                     171
        Entertainment             175                                                    Games                     156
                 Games      145                                                          Travel                  136
        Overall average            188                                          Overall average                       178

                                                                               Source: McKinsey, Research reports
IBIS Capital | A European Perspective on e-Learning                            (1)   m-Education includes all internet connected devices, such as smartphones or tablets                               13
                                                                               (2)   List of categories not exhaustive
Global e-Learning Fundraising Summary

 Direct Investment and Deal Volume Since 2007(1)
                                                                                                                                                              Key Points
   ($m)
                    3              5                     3                 4                  6                  10                   2
   2,500                                                                                                                                                       The US is the most active global fundraising
                                                                       2,024                                                                                    market for e-Learning, accounting for 59.7%
  2,000                                                                                                                         Total Capital Raised            of total deals, with high-growth markets,
                                                                                                                                (Global)
                                                                                                                                                                India and China, trailing with 11.3% and
               1,436                                                                                                            Total Capital Raised
   1,500                                                                                                                        (Europe)                        8.4% respectively(2)
                                                                                          1,192
                                                                                                              1,063
   1,000
                                 928                  857                                                                                   Volume             Since 2007, Europe accounted for 6.0% of
                                                                                                                                            (Europe)(3)         global deal volume
                                                                                                                                   430
    500
                        107                                                                                                                                    As consumer-faced e-Learning companies
                                         30                   23               31                 21                  42                  45
                                                                                                                                                                are on the rise, the distribution sector has
        0
                    2007          2008                  2009              2010               2011                2012            2013 YTD                       been attracting an increasing volume of
                                                                                                                                                                capital

 Global Education Fundraising Volume                                           Global Education Fundraising Volume                                             The two largest fundraisings in 2013 were
 by Geography Since 2007                                                       by Sector Since 2012                                                             lynda.com (Accel, MeriTech, Spectrum
                                                                                                                                                                investing $103m) and Open English
                                                                                                                                                                (Insight, Redpoint, TCV investing $65m)
                                                                                                                                                                − The lynda.com investment was the first
                     59.8%

                                              11.3%

                                                      8.4%

                                                             6.0%
                                                                    4.9%
                                                                    4.6%
                                                                    2.9%
                                                                    2.0%

                                                                                                                           Management                              major round for the company since being
                                                                                                                            Systems                                founded in 1995
                                                                                                                              17%
                                                                                                                                                                − The investment represents the largest
                                                                                              Distribution                     Content                             single US venture financing round on
   US       India       China   Europe        RoW       Canada       Australia      UK            74%                            9%                                record for an online education company
                                                                                                                                                                − Open English previously raised a $43m
 …With Europe accounting for 6.0% of global                                                                                                                        round in May 2012 from Flybridge,
 e-Learning fundraising since 2007 and the                                                                                                                         Insight, Kaszek and Redpoint bringing it’s
                                                                                                                                                                   total capital raised to $120m
 UK accounting for 2.0%

                                                                                    Source: Capital IQ as at 9 Jun 2013
IBIS Capital | A European Perspective on e-Learning                                 (1)   Refers to global equity investments where transaction values are disclosed and are above $1m                          14
                                                                                    (2)   Refers to transactions since 2007
                                                                                    (3)   Refers to transactions where the target was headquartered in Europe
US M&A and Investment More Active than Europe

e-Learning’s Most Active Corporate Acquirers & Investors                                                                                    Key Points
By Number of Acquisitions and Investments (2010-2013)(1)
                                                                                                                                             Pearson has been the most acquisitive e-
                                Acquirer / Investor      # of
     Company     Headquarters
                                 (Public / Private)   Acquisitions
                                                                           # of Investments                  Total                            Learning buyer with recent acquisitions of
                                                                                                                                              Learning Catalytics, Exam Design,
                                      Public                12                        3                        15
                                                                                                                                              IndiaCan Education and TutorVista
                                      Private               7                         0                        7

                                      Private               4                         3                        7                             Private equity-backed Blackboard
                                      Public                1                         4                        5                              (Providence Equity) has been the most
                                      Public                2                         3                        5                              acquisitive private company in the sector.
                                                                                                                                              The most recent acquisition (Mar 2012)
                                      Private               4                         0                        4
                                                                                                                                              were Moodlerooms and Netspot, two
                                      Private               3                         0                        3
                                                                                                                                              providers of open source online learning
                                      Public                2                         1                        3                              technology
                                      Public                3                         0                        3

                                      Public                2                         0                        2                             Macmillan is primarily active through its
                                                                                                                                              two digital venture arms - Macmillan New
Top Global e-Learning Fundraisings in 2012 (US vs. Europe)                                                                                    Ventures and Macmillan Digital
                                                                                                                                              Education
                   (2)

 1                        $43m                          1                                       $6.5m                                        The size of investments in US companies
                                                                                                                                              for the top 5 deals in 2012 were on average
 2                        $32m                          2                                       $5.1m                                         8x larger than those in Europe, despite
                                                                                                                                              Europe being a larger market
 3                        $31m                          3                                       $5.0m
 4                        $26m                          4                                       $5.0m
 5                        $25m                          5                                       $4.6m
                                                                Source: CB Insights as at 16 May 2013
IBIS Capital | A European Perspective on e-Learning             (1)   Refers to acquisitions and equity investments in private e-Learning companies. The list excludes financial investors   15
                                                                (2)   Based in Florida despite headquarters in Panama
Recent e-Learning Fundraising Across Europe & the US

Europe

Date of                                                                                                                                                              Total Capital
            Capital                                                                                                                             Year
Last                      Target       Investors                                       Company Overview                                                   Domicile   Raised To Date
            Raised ($m)                                                                                                                         Founded
Round                                                                                                                                                                ($m)

                                       Bill Gates, Benchmark Capital, Dragoneer
                                                                                       Offers a social, crowdsourced platform designed for
Jun-13      35.0                       Investment Group, Tenaya Capital, The                                                                    2008                 35.0
                                                                                       researchers
                                       Founders Fund, Thrive Capital

                                       IBB Beteiligungsgesellschaft, Kizoo
                                       Technology Capital, Nokia Growth                Creates online and mobile-based language learning
Mar-13      10.0                                                                                                                                2007                 10.8
                                       Partners, Reed Elsevier Ventures, VC            courses
                                       Fonds Technologie Berlin

                                                                                       Provides open source and agile training programmes and
Dec-12      5.0                        Beringea                                                                                                 2003                 5.0
                                                                                       events for software professionals

                                                                                       Online community that teaches people languages through
Nov-12      5.1                        Undisclosed                                                                                              2010                 6.3
                                                                                       crowdsourcing

Oct-12      4.6                        PROfounders Capital                             Free online community for learning languages             2008                 9.4

United States

Date of                                                                                                                                                              Total Capital
            Capital                                                                                                                             Year
Last                      Target       Investors                                       Company Overview                                                   Domicile   Raised To Date
            Raised ($m)                                                                                                                         Founded
Round                                                                                                                                                                ($m)
                                       Bessemer Venture Partners, EPIC                 Best known for its Canvas learning management platform,
Jun-13      30.0                       Ventures, OpenView Venture Partners,            which was launched in 2011 and now counts over 6 million 2008                 50.0
                                       TomorrowVentures                                users in over 425 K-12 and HE(1) institutions

                                       Capricorn Investment Group, Expansion           Learning marketplace that lets students connect with
May-13      2.0                                                                                                                                 2012                 2.5
                                       VC, Learn Capital                               experts in one-on-one video chats

                                                                                       Cloud-based talent management software specifically
May-13      6.5                        Mainsail Partners                                                                                        2001                 6.5
                                                                                       developed for K-12 educational organisations

                                       American Public Education
May-13      4.0                                                                        Accredited military transition college                   2011                 6.5
                                       (NasdaqGS:APEI)

                                       Redpoint Ventures, Bill Campbell (Former Marketplace that aims to help students and teachers
May-13      7.5                                                                                                                                 2011                 7.5
                                       Chairman of Apple), Jesse Rogers         connect around a range of subjects

                                                           Source: Capital IQ, TechCrunch, press releases, as at 9 Jun 2013
IBIS Capital | A European Perspective on e-Learning        (1)   Refers to higher education                                                                                       16
Global e-Learning M&A Activity

 Total Deal Value and Volume of Global and European e-Learning M&A Transactions                                                                        Key Points
 Since 2007 and above $20m(1)
                                              (2)                                                          (2)
                                                                                                                                                        North America continues to dominate
                  ($m)       40%          NR          17%           20%             24%                NR               33%
                                                                                                                                                         activity by value and number of deals above
              14,000                                                                                                                      25             $20m

              12,000      11,482
                                                                                                                                                        Limited European M&A opportunities
                                                                                                                 20                       20
                                                                                 9,955                                                                   above $20m
              10,000
                                                                                            17
                                                                                                   8,039                                                Fragmented market has meant a range of
                                                                           15                                                             15
              8,000
                                                                                                                                                         smaller acquisitions from private equity
                                                                                                                                                         backed companies:
                  6,000
                                   10                                                                                                     10
                                                                                                                                                            −   PlaySay / Babbel
                  4,000                                           3,026
                                                             6                                                                   6                          −   lynda.com / video2brain
                               1,841                                                                                                      5
                  2,000                                                                                                                                     −   Desire2learn / Wiggio + Degree Compass
                                                    1,015
                                        290                 546           287             389                          248 130                              −   Echo360 / ThinkBinder + LectureTools
                                               1
                     0                                                                                                                    0
                             2007        2008         2009          2010             2011               2012           2013 YTD

                                        Global e-Learning Deal Value ($m)                  Eur Deal Value ($m)

                                                                                             Europe % of
                                        Volume (Global)
                                                                                             Global Volume
                                                                                                                                                       Global e-Learning M&A Volume by
                                                                                                                                                       Sector Since 2007
% of Total Volume:
 North America              50%          100%
                                            (2)
                                                      67%           67%               47%               95%                17%
                                                                                                           (2)
 Europe                     40%           NR          17%           20%               24%               NR                 33%
                                                                                                                                                                                    Management
% of Total Deal                                                                                                                                                                      Systems
Value:                                                                                                                                                                                 36%
                            83%          100%(2)      32%           78%               87%               99%                16%
 North America                                                                                             (2)
                            16%           NR          54%           10%               4%                NR                 52%                                      Distribution
 Europe
                                                                                                                                                                        49%
Strategic Acquirer %
                            40%          100%         83%           47%               71%               70%                83%                                                     Content
of Global Volume
                                                                                                                                                                                    15%

                                                                     Source: Press releases, SEC filings, Capital IQ as at 9 Jun 2013
IBIS Capital | A European Perspective on e-Learning                  (1)    European data refers to M&A transactions whereby the target’s headquarters were in Europe                                    17
                                                                     (2)    Refers to not relevant as there is no data
2013: Select Global M&A Transactions
3 of the 21 Private M&A Transactions in 2013 Involved European Targets(1)

Offer                                  Target /                                                             Target                                                                                         Transaction
         Target        Acquirer                       Company Overview                                                                          Deal Rationale
Date                                   Buyer HQ                                                             Metrics                                                                                        Value ($m)
                                                      Social collaboration tool that enables peer-to-
                                                                                                                                                Adds online collaboration tools to its distance learning
Apr-13   ThinkBinder   Echo360         US / US        peer functionality within centralized online          "Tens of thousands of users"                                                                   Undisclosed
                                                                                                                                                platform
                                                      study groups
                       Houghton
                                                      Develops and publishes educational programs,
Apr-13   Tribal Nova   Mifflin         Canada / US                                                          NA                                  Increases adaptive digital content for the pre-K market    Undisclosed
                                                      games and apps for pre-K audiences
                       Harcourt

                                                                                                             2.3m users                         Expands researcher workflow offerings and builds
                                       UK /           Cloud-based research management and social                                                                                                                            (2)
Apr-13   Mendeley      Reed Elsevier                                                                         Over 340m documents                 greater engagement with its users                        c. $69-100m
                                       Netherlands    collaboration platform
                                                                                                             206k research groups               Allows for content to be collaborative and open
                                                      Online service for language-learning                  Over 16m members from c.            Allows Rosetta Stone to offer its language packages                   (2)
Apr-13   Livemocha     Rosetta Stone   US / US                                                                                                                                                             c. $8.5m
                                                      communities                                           196 countries                       online via Livemocha’s cloud platform

                                                                                                                                          Entry into US market
                                                                                                            100k users within a month of
                                                      Develops language learning mobile software                                          Applies PlaySay’s learnings around gameplay to
Mar-13   PlaySay       Babbel          US / Germany                                                         launching its iOS-based                                                                        Undisclosed
                                                      products and applications                                                            Babbel's wider portfolio of services
                                                                                                            service in May 2012
                                                                                                                                          Strengthens mobile-based offering

                                                                                                                                                 Technology acquisition
                       Noodle                         Socially integrated LMS focused on higher             Used by professors on more
Mar-13   Lore                          US / US                                                                                                   Used to build another business model around Noodle       Undisclosed
                       Education                      education                                             than 600 campuses
                                                                                                                                                  Launch

                                                      Online free toolkit that enables users to work in  1.1m users                             Expand presence in US higher education market
Mar-13   Wiggio        Desire2Learn    US / Canada                                                                                                                                                         Undisclosed
                                                      groups                                             100k collaboration groups              Opens up office in Boston, a large hub for e-Learning

                                                      Developed OpenMinds, a free platform that                                                  "acqui-hire" plus adds 5 apps
Mar-13   Root-1        Edmodo          US / US        allows teachers to instantly customize                5 apps                               Supports Edmodo’s goal of being a distribution           Undisclosed
                                                      education apps                                                                              channel for classroom content

                                                                                                                                                 Allows entry into fast-growing Indian education sector
                                                                                                            35 schools with intention to
Feb-13   TutorVista    Pearson         India / UK     Online tutoring and test preparation provider                                              Supports Pearson's inorganic expansion plan within       $25.7m
                                                                                                            grow to 100 within a year
                                                                                                                                                  India

                                                      Online video training company offering courses  1,700 video courses                       Adds multi-lingual educational content
Feb-13   video2brain   lynda.com       Austria / US                                                                                                                                                        Undisclosed
                                                      in English, German, French and Spanish          400k subscribers                          Putting cash to work post $103m fundraising

                                                                                                                                                 Broadens suite of learning, e-portfolio and analytics
         Degree                                       Course recommendation engine that helps
Jan-13                 Desire2Learn    US / Canada                                                          Used by 3 universities                tools                                                    Undisclosed
         Compass                                      students complete their degrees on time
                                                                                                                                                 Growing demand for data-driven tools

                                                                                                            LearnSmart: Over 300 titles,         Strengthens McGraw-Hill Education's leadership in
                                                    Provides software technologies that help
                       McGraw-Hill                                                                          1.5m students and has                 adaptive learning
Jan-13   Area9                         Denmark / US content providers to develop personalized                                                                                                              Undisclosed
                       Education                                                                            delivered over 1bn questions         Technology behind McGraw-Hill’s LearnSmart and
                                                    educational and training solutions
                                                                                                            to students                           SmartBook series

                                                                                                             c. 3k tutors
Jan-13   Tutor.com     IAC             US / US        Online tutoring and homework help services             c. 8.8 million online              Large untapped growth potential                          c. $40m (3)
                                                                                                              tutoring sessions to-date

                                                                        Source: EdSurge, Capital IQ, TechCrunch, press releases as at 9 Jun 2013
IBIS Capital | A European Perspective on e-Learning                     (1)   The highlighted deals above are select examples of the 21 private M&A transactions taking place in 2013                                 18
                                                                        (2)   According to TechCrunch
                                                                        (3)   According to The Next Web
Venture Capital Funding: Europe vs. US

 Total Venture Capital Deal Value By Year                                                                                                                          Key Points
                           27.2        11.6         9.1         9.6        7.2      4.9        22.3      20.5        14.0         18.3         23.3         22.4
                  ($bn)                                                                                                                                             The venture market in the US is
                           38.1
                  40                       Europe         US                                                                                                         significantly larger than in Europe;
  Difference                                                                                   30.8      30.5                                                        $26.5bn in the US in 2012 compared to
  between                                                                                                                                  28.4
                  30                                                            26.6                                                                    26.5         $4.1bn in Europe
  US & Eur.                                                              22.9 21.7                                            23.3
                                      20.9                     22.4
  VC                                            18.6                                                                 19.7
  Funding         20                                                  15.8
                                                           12.8                                                                                                     Early stage investments are more
  ($bn)                10.9
                                    9.3       9.5                                            8.5      10.1                                                           common in the US, whereas European
                  10                                                                                             5.7        5.0          5.1          4.1            VCs invest more in revenue generating
                   0                                                                                                                                                 and profitable businesses
                          2001      2002       2003        2004        2005        2006      2007      2008      2009       2010         2011         2012           − Revenue generating and profitable
    Europe (yoy                                                                                                                                                        businesses represent 59% of all first-
                          -40%       -15%       2%             35%       24%       37%        -61%       19%      -43%       -13%          3%          -20%
     growth%)                                                                                                                                                          time investments in Europe and 43%
 US (yoy growth%)         -62%       -45%      -11%            20%       3%         16%        16%       -1%      -35%       18%          22%           -7%            in the US (1)

 Breakdown of Venture Capital Deal Volume by Investment Stage (1980-2011)                                                                                           The amounts invested in venture
 By % of Total Volume                                                                                                                                                capital and the associated valuations
                                                                                      56%                                                                            are higher in the US than in Europe
                   60%
                                  Europe      US                                                                                                                     − Across all stages, average amount
                   50%
                                                                                               39%                                                                     invested in the US is $5.7m and
                   40%                                    33%
                                                                                                                                                                       $3.1m in Europe (1)
                   30%                         25%
                                                                                                                                                                     − Across all stages, average post-
                   20%        15% 17%
                                                                                                                                                                       money valuation in the US is $18m
                   10%                                                1%      3%                          3%    4%                                      4%             and $11m in Europe (1)
                                                                                                                            0% 0.2%             0%
                    0%
                              Startup           Product Production in Generating                         Profitable         Restart                   NA
                                              Development Beta Test    Revenue

 Avg. 1st VC Investment
                              2.4/2.8           3.3/6.2                3.1/4.3            3.1/6.5        4.0/10.1           1.4/3.8              NA/3.3
      Size ($m) (2)

Avg. Valuation @ 1st VC
                                 7.1/7.8        9.1/15.3              10.0/13.3       12.1/23.2          26.9/36.7          5.4/6.9             NA/12.8
 Investment ($m) (2)

                                                                                           Source: BVCA – European Venture Capital: Myths and Facts
IBIS Capital | A European Perspective on e-Learning                                        (1)   Refers to deals between 1980-2011                                                                              19
                                                                                           (2)   In 2005 equivalent USD
European e-Learning: Identifying the Key Trends

                                                                                                                                                                                        Select European
          Trend                                             Proof: Precedent Fundraisings & Acquisitions (1)
                                                                                                                                                                                           Companies

                                   Target         Buyer / Investor (2)      Overview (Target)                                                    Other Geographies (3)

                                   Babbel         Reed Elsevier             Online learning system for foreign languages
                                                                                                                                                     Livemocha / Rosetta Stone
 1      “Tower of Babel”           LinguaLeo      Runa Capital
                                                                            Cloud-based language tutorial service with focus on                      EnglishUp / Macmillan
       ELT and Language Training                                            teaching English to Russian speakers                                     GlobalEnglish / Pearson
                                   Busuu          ProFounders               Language learning community                                              Open English / Insight VP
                                                                                                                                                     MindSnacks / Sequoia
                                   tolingo        Acton Capital             Online translation platform                                              PlaySay / Babbel

                                   Memrise        Undisclosed               Supplemental flashcard game for language learning

                                   SofaTutor      Acton Capital             Online tutoring platform
                                                                            Online solution for sourcing offline private tutoring and                TutorVista / Pearson
                                   Tutoria        Macmillan                                                                                          tutor.com / IAC
                                                                            accessing trusted pedagogic advice in Germany
 2       Online Tutoring                                                                                                                             Tutorspree / Sequoia
                                                                            Mathematics tuition service, offering home visits and                    OnlineTutorSolutions.com
                                   Maths Doctor   Macmillan
                                                                            online instruction                                                        / Credo
                                   HeyTutor       Macmillan                 Online tutoring platform

                                                                            Through a Q&A format, helps people learn things in a
                                   Quipper        Benesse                                                                                            Fingerprint Digital / Corus
                                                                            game-like feel
                                                                                                                                                      Entertainment, Reed
                                                                            Provides middle and high school-level math education
                                                  PROfounders,                                                                                        Elsevier Ventures
          m-Learning &             MangaHigh
                                                  Revolution Learning
                                                                            using casual games
                                                                                                                                                     Duck Duck Moose /
 3
         Serious Gaming            Moshi                                    Online game where users can adopt their own pet
                                                                                                                                                      Sequoia, LVP
                                                  Accel                                                                                              Kidaptive / Menlo
                                   Monsters                                 monster and go on adventures together
                                                                                                                                                      Ventures
                                                                            Develops a series of educational apps targeted at
                                   MindShapes     Index, Richmond                                                                                    LocoMotive Labs /
                                                                            children ages 2 -12
                                                                                                                                                      NewSchools
                                   Babbel         Reed Elsevier             Online learning system for foreign languages

 4     Social Collaboration        Mendeley       Reed Elseiver
                                                                            Cloud-based research management and social
                                                                                                                                                     Scoot & Doodle / Pearson
                +                                                           collaboration platform
                                                                                                                                                     Grockit / Benchmark,
              Content                                                                                                                                 Discovery
                                                  Benchmark, Tenaya,                                                                                 Piazza / BVP
          Management               ResearchGate
                                                  Accel, Bill Gates
                                                                            Leading social network for scientists
                                                                                                                                                     Sokikom / Undisclosed
                                                                                                                                                     Lore / Noodle

                                                                    Source: Company websites, press releases, TechCrunch
IBIS Capital | A European Perspective on e-Learning                 (1)   Refers to historical fundraisings and acquisitions of targets headquartered in Europe                                       20
                                                                    (2)   Where relevant it only includes select investors
                                                                    (3)   Refers to transactions whereby the target is domiciled outside of Europe and only includes select investors
IBIS Capital | A European Perspective on e-Learning

            Active European
            e-Learning
            Corporates

IBIS Capital | A European Perspective on e-Learning
e-Learning: Active European Corporates
Pearson

         Company Snapshot                                    Relevant News                                                                                    Financial Summary

 Headquartered in London (UK),                     May-13: Camfed and Pearson launch                              Digital & Services Revenue                                2012 Revenue by Geography (%)
  founded in 1894 and employs c. 32,300              partnership for girls' education                                                                         50%
                                                                                                                    (% Sales)                          45%
  personnel                                                                                                                            40%
                                                    Apr-12: Buys-out Educomp's                                                34% 37%

                                                                                                                                                                                                                   22%
                                                                                                                                                                                           59%
                                                                                                                       29% 31%

                                                                                                                                                                                                                           13%
                                                                                                                                                                                                                                  6%
 Operates through 3 business segments:              shareholding in IndiaCan
  Education, FT Group and Penguin
                                                    Apr-13: Acquires Learning Catalytics
 North American Education is Pearson’s                                                                                                                                       North America            Europe      Asia     RoW
                                                    Mar-13: Invests in Scoot & Doodle
  largest business, with 2012 revenue of                                                                               06'   07'   08'    09'    10'    11'   12'
  £2.7bn and operating profit of £536m              Mar-13: Pearson VUE acquires Exam                                 2012 Education Revenue                                 2012 Revenue by Segment (%)
                                                     Design
 Since 2007, Pearson has acquired 18                                                                                  by Segment (%)
  companies; 14 of them were acquired               Feb-13: Announces launch of EdTech                                                                                 (1)
                                                                                                                                   8.4%                 NA Education

                                                                                                                                                                                                 76%
  after 2010 and all were digital-based / e-         incubator, Pearson Catalyst

                                                                                                                                                                                                                          17%

                                                                                                                                                                                                                                  7%
  Learning businesses                                                                                                  34.0%
                                                    Jan-13: Announces plans to exit UK                                                                 Int'l Education
 From 2002-2012, Pearson has spent                  vocational market                                                       £4.6bn (2)
                                                                                                                                                        Professional
  £3.4bn on education acquisitions                                                                                                    57.6%                                    Education           Penguin           FT Group

Offer                    Acquisition /    Target                                                                                                                                                                          Transaction
          Target                                      Founded    Company Overview                                            Sector                             Deal Rationale
Date                     Investment       HQ                                                                                                                                                                              Value ($m)

                                                                                                                                                                Supports Pearson’s focus on social collaboration
Mar-13    Scoot & Doodle Investment       US          2012       Operates a real time and social creativity platform         Social Collaboration                                                                         $2.5m
                                                                                                                                                                within the education market

          Learning                                                                                                           Student Response System            Supports “flipped classrooms” and digital learning
Apr-13                   Acquisition      US          2011       Cloud-based learning analytics and assessment system                                                                                                     Undisclosed (3)
          Catalytics                                                                                                         (Analytics & Assessment)           analytics

          IndiaCan                                               Provides vocational education and training for                                                 Together with the TutorVista buyout, it confirms
Apr-13                   Acquisition      India       2008                                                                   Vocational Training                                                                          $22.0m
          Education                                              educating and employing the youth in India                                                     Pearson's inorganic expansion plan within India

                                                                 Provider of examination development software used in                                           Pearson VUE publishes exams created through
Mar-13    Exam Design    Acquisition      US          2007                                                                   Testing (Assessment)                                                                         Undisclosed
                                                                 high-stakes testing                                                                            ExamDeveloper

                                                                                                                                                                Supports Pearson's acquisition expansion plan within
Feb-13    TutorVista     Acquisition      India       2005       Online tutoring and test preparation provider               Tutoring                                                                                     $25.7m
                                                                                                                                                                India

          Embanet                                                Provides technology-enabled services to traditional         Online Learning                    Caters to fast-growing demand for online learning in
Oct-12                   Acquisition      US          1993                                                                                                                                                                $650.0m
          Compass                                                non-profit postsecondary educational institutions           (Higher Education)                 higher education

          Global                                                                                                             English Language Training          Supports two major themes of Pearson: ELT and a
May-12                   Acquisition      US          1997       Business English software for global enterprises                                                                                                         $90.0m
          English                                                                                                            (ELT)                              strong focus on emerging markets

                                                                 Adaptive learning platform that customizes                                                     Pearson uses Knewton’s software to power its online
Oct-11    Knewton        Investment       US          2008                                                                   Adaptive Learning                                                                            $33.0m
                                                                 educational content based on student needs                                                     reading, writing and math courses

                                                                          Source: Pearson 2012 annual report, company filings, press releases, TechCrunch
IBIS Capital | A European Perspective on e-Learning                       (1)   Refers to North America                                                                                                                                22
                                                                          (2)   Refers to 2012 total revenue
                                                                          (3)   Rumoured to be well above $10m
e-Learning: Active European Corporates
Reed Elsevier

                                Company Snapshot                                                                                                            Financial Summary

 Headquartered in London (UK), founded in 1844 and employs c. 30.4k personnel
                                                                                                               Revenue by Format (%)                                            2012 Revenue by Geography (%)
  throughout 70+ countries
                                                                                                           100%

                                                                                                                                                                                          52%

                                                                                                                                                                                                       19%

                                                                                                                                                                                                                   19%
 Primary listing on the LSE with a market cap of c. $13.7bn (1)

                                                                                                                                                                                                                         3%
                                                                                                                                                                                                                         7%
                                                                                                                                                                      15% 21%
                                                                                                                                                            15% 22%
                                                                                                                                                  14% 25%
                                                                                                                                            27%
                                                                                                                                      33%
 Reed’s education business, Harcourt Education, was largely acquired in July 2001 as

                                                                                                                                37%
                                                                                                            80%

                                                                                                                          51%
                                                                                                                    52%
  part of its acquisition of Harcourt General. In July 2007, Reed sold its education                                                                                                 North America      RoE

                                                                                                                                            14%
  business for $5bn to Houghton Mifflin Company                                                                                                                                      RoW                UK

                                                                                                                                      17%
                                                                                                            60%                                                                      Netherlands

                                                                                                                                15%
 Reed wanted to focus on the growing digital opportunities in its Scientific & Medical,

                                                                                                                          12%
                                                                                                                    13%
  Legal and Business divisions                                                                              40%                                                                 2012 Revenue by Segment (%)

                                                                                                                                                                      64%
                                                                                                                                                            63%
                                                                                                                                                  61%
                                                                                                                                            59%
                                                                                                                                      50%
                                                                                                                                48%
 Currently operates across 4 professional segments: (1) Scientific, Technical & Medical

                                                                                                                          37%
                                                                                                                    35%
                                                                                                            20%

                                                                                                                                                                                    34%

                                                                                                                                                                                                26%

                                                                                                                                                                                                                   14%
                                                                                                                                                                                                             15%

                                                                                                                                                                                                                         11%
  (2) Risk Solutions & Business Information (3) Legal (4) Exhibitions
 M&A is generally done through the operating group and investments are held through                         0%
  Reed Elsevier Ventures                                                                                                                                                            Scientific, Technical & Medical
                                                                                                                                                                                    Legal
 Reed Elsevier Ventures key focus areas; Healthcare IT, large scale data / analytics,                                                        (2)                                   Risk Solutions
  media                                                                                                                    Digital      F2F         Print                           Exhibitions
                                                                                                                                                                                    Business Information

                                               Recent e-Learning M&A and Fundraising Activity

Apr 2013                                                                                  Mar 2013                                                                                   Sep 2011
 Elsevier, Reed Elsevier’s scientific, technical and medical information division,        Reed Elsevier’s corporate venture arm, Reed Elsevier                                      Reed Elsevier Ventures
  acquired 100% of Mendeley from Access Industries, Ambient Sound,                          Ventures, lead a Series B investment of $10m in                                            participated in a $1.4m seed
  Andurance Ventures and Passion Capital                                                    Babbel.com                                                                                 round in Fingerprint Digital
 Based in the UK, Mendeley is a cloud-based research management and social                Other investors included IBB Beteiligungsgesellschaft,                                    Other investors included K2
  collaboration platform                                                                    Kizoo Technology Capital, Nokia Growth Partners and VC                                     Media, THQ and Suffolk Ventures
                                                                                            Fonds Technologie Berlin
 Mendeley claims 2.3m users, over 340m documents and c. 206k research                                                                                                                Fingerprint Digital creates mobile
  groups                                                                                   Based in Germany, Babbel creates online and mobile-based                                   learning apps for kids (3-8 years
                                                                                            language learning courses                                                                  old) and grown ups (the childrens’
 Deal rationale: (1) allows for research content to be collaborative and open (2)
                                                                                                                                                                                       parents)
  expands researcher workflow offerings and builds greater engagement with its             Babbel employs 18o personnel and claims c. 15m users and
  users                                                                                     8m downloads
 Transaction value was rumoured to be between $69-100m (3)
                                                                       Source: Reed Elsevier 2012 annual report, company filings, TechCrunch
IBIS Capital | A European Perspective on e-Learning                    (1)   As at 12-Jun-13                                                                                                                               23
                                                                       (2)   Refers to face-to-face
                                                                       (3)   As per TechCrunch
e-Learning: Active European Corporates
Holtzbrinck Publishing Group

                                             Company Snapshot                                                                                              Holtzbrinck's Investment Vehicles

 Headquartered in Stuttgart (Germany), founded in 1971 and employs c. 13.8 k employees                                                 Strong focus on
                                                                                                                                                                Location
                                                                                                                                                                                Year
                                                                                                                                                                                                      Focus
                                                                                                                                                                                                                              # of Portfolio
                                                                                                                                        e-Learning                            Founded                                          Companies
 Georg von Holtzbrinck is a family-owned publishing group
 Holtzbrinck Publishing Group operates through three global divisions:                                                                                                                       Stage: Late stage deals
                                                                                                                                                                     NYC        2012                                                   5
                                                                                                                                                                                                  Sector: US HE
            −     Global Trade (Consumer books)
            −     Global Science & Education                                                                                                                                                  Stage: Venture deals
                                                                                                                                                                 London         2012        Sector: Global consumer                    8
            −     Holtzbrinck Digital Information & Services                                                                                                                               education with focus on EM
 Takes advantage of e-Learning opportunities primarily through the following entities:
  Macmillan New Ventures (MNV), Macmillan Digital Education and Macmillan
  Education                                                                                                                                                      Munich         2000          Internet (B2B & B2C)                     19

 In Jan and Jul 2012, Macmillan launched MNV and Macmillan Digital Education,
  respectively to both serve as corporate venture arms
                                                                                                                                                                 Munich         2000          Internet (B2B & B2C)                     55
            −     MNV is a $100m venture fund and is slated to add 10-15 companies to its
                  portfolio by 2015

                      Select Holtzbrinck e-Learning Investments & Acquisitions                                                                                                           Relevant News
                                                                                                                                                                            Jun-13: Macmillan Science & Education launches
Macmillan New Ventures                                     Digital Education                                                   Macmillan Education
                                                                                                                                                                             Chinese head office in Shanghai
Late Nite       Produces virtual online simulations for                 Online video platform that aggregates and curates                     Online math learning
Labs            science education
                                                           Veduca
                                                                        publicly available educational content
                                                                                                                               bettermarks
                                                                                                                                              system
                                                                                                                                                                            May-13: Digital Science introduces Projects for
                                                                                                                                                                             scientific researchers – a new technology tool to
                Focused on adaptive assessment in HE                    Online educational marketplace that makes it easy                                                    organise their data
PrepU                                                      easyaula
                and advanced placement courses (2)                      for people to learn anything from anyone
                                                                                                                                                                            May-13: Macmillan Education teams up with Knewton
                Empowers college educators to positively                                                                                                                     to bring adaptive learning beyond K-12 and HE
                                                                        Tutoring service for individual tutoring at
EBI             impact student retention, success,         tutoria
                                                                        students’ homes                                                                                     Mar-13: MNV acquires Late Nite Labs
                learning and satisfaction

iClicker
                Enables active learning and formative      Maths        Provides live one-to-one home tutoring via the                                                      Feb:13: Macmillan Education announces plans to
                assessment in classrooms                   Doctor       internet, plus worksheets and tutoring videos
                                                                                                                                                                             expand within the UAE
                Provides interactive homework and
Sapling
                instruction materials covering HE and      English Up
                                                                        Cloud-based English learning platform for busy                                                      Feb-13: Macmillan Digital Education invests in
Learning                           (2)                                  adults and young professionals
                high school topics                                                                                                                                           Brazilian startups, Veduca and Easyaula
                                                                         Provides tools and learning algorithms for                                                         Nov-12: MNV acquires Sapling Learning
                                                           Cramlr
                                                                        teachers in order to create effective online courses

                                                                                             Source: Company websites, TechCrunch
IBIS Capital | A European Perspective on e-Learning                                          (1)   1971 refers to the year that Verlagsgruppe Georg von Holtzbrinck GmbH holding company was founded. In 1948, Georg von Holtzbrinck        24
                                                                                                   launched Die Stuttgarter Hausbuecherei together with a small publishing list
e-Learning: Active European Corporates
Bertelsmann

                                                 Company Snapshot                                                                                                        Company Structure

 Headquartered in Gutersloh (Germany), founded in 1835 and employs c. 104.3k                                                                                                                   Overview
  personnel
 Engages in the production, servicing, and marketing of media worldwide                                                                                                                 #1 European broadcaster

 Core divisions encompass television, book publishing, magazine publishing and services
  in more than 50 countries
                                                                                                                                                                                   World's largest book-publishing group
 Berteslmann takes advantage of e-Learning opportunities primarily through the
  following entities:
                                                                                                                                                                                    Europe's biggest magazine publisher
                −     Bertelsmann Digital Media Investments (BDMI): $63m corporate venture
                      fund launched in 2006 and based out of NYC
                −     Bertelsmann AG: Parent company                                                                                                                                   Provides outsourcing services
                −     University Ventures: $100m fund launched in Jan 2012, of which
                      Bertelsmann committed $50m. The other major investor is the University of
                      Texas Investment Management Company. The fund is focused on global                                                                               Produces magazines, catalogues, brochures, books and calendars
                      higher education and is based out of NYC

                                     Select Bertelsmann e-Learning Investments                                                                                                           Relevant News
                                                                                                                                                                           Jan-13: Bertelsmann announces $4m investment in
BDMI (Current & Exited Portfolio
Companies)
                                                    Bertelsmann AG                               University Ventures                                                        WizIQ and merges authorSTREAM into WizIQ
                    Largest publisher of open                Offers tools to help teachers                       Partners with non-profit, traditional colleges and        Dec-12: University Ventures announces the launch of
Flatworld                                                                                        Synergis
                    college textbooks for           WizIQ    around the world run virtual                        universities to help expand their student base to          UV Labs, a company that will partner with schools to
Knowledge                                                                                        Education
                    students worldwide                       classrooms                                          include the “21st Century Student”
                                                                                                                                                                            build new online learning products
                    High quality foreign                     Online platform for PowerPoint                      Network of online and on-campus schools devoted
Learnship                                           author                                       University                                                                Oct-12: BDMI announces investment in Learnship
                    language training via the                users around the world to share                     to making postsecondary education affordable and
Interactive                                         STREAM                                       Now
                    Internet                                 and collaborate on presentations                    accessible                                                 Interactive
          (1)       Provides e-books to a wide                                                   Ameritas        Offers degree programs targeting Hispanic                 Oct-12: Pearson and Bertelsmann announce an
Ebrary
                    range of sectors                                                             College         Americans                                                  agreement to create the world’s leading consumer
                                                                                                                                                                            publishing organization by combining Penguin and
                                                                                                                 Works with postsecondary institutions to build
The                 Standardized test
                                                                                                                 products to solve issues of accessibility,                 Random House (Bertelsmann will own 53% and
Princeton           preparation and admissions                                                   UV Labs
Review
       (1)
                    consulting company
                                                                                                                 affordability, quality and accountability facing HE        Pearson will own 47%)
                                                                                                                                                                           May-12: University Ventures announces investment in
                                                                                                                 Leading higher education company in the EU
Xlibris
          (1)       Self publishing and print on-
                                                                                                 EDEX            (portfolio includes University of Nicosia,
                                                                                                                                                                            Ameritas College
                    demand
                                                                                                                 Intercollege, Global Training)

                                                                                                Source: Company websites, press releases, TechCrunch
IBIS Capital | A European Perspective on e-Learning                                             (1)   Refers to exited portfolio companies                                                                                              25
e-Learning: Active European Corporates
Sanoma

                                  Company Snapshot                                                                                                    Financial Summary

 Headquartered in Helsinki (Finland), founded in 1999 and employs c. 13.7k personnel                     2012 Revenue by Segment (%)                               2012 Revenue by Geography (%)
 Primary listing on the Helsinki Stock Exchange with a market cap of c. $1.3bn (1)
                                                                                                                         13% 6%
 Sanoma reports through 3 primary business units: Media, News and Learning (2)                                                                    Media

                                                                                                                                                                                        74%

                                                                                                                                                                                                             11%

                                                                                                                                                                                                                   11%
                                                                                                                                                                                                                         4%
                                                                                                                 18% €312m
 Sanoma Learning, Sanoma’s education business, employs c. 1.8k personnel and                                                 2012
                                                                                                                                                   News
                                                                                                                            Learning
  generated €312.4m of revenue in 2012                                                                                      Revenue                Learning
                                                                                                                                                                            Holland & Finland      Belgium
 Sanoma Learning operates in 6 European countries through 7 companies: Van In,                                                    63%             Other                    Other EU               RoW
  Sanoma Pro, NTK-Perfekt, Malmberg, Young Digital Planet (YDP), Nowa Era, and
  Sanoma Utbildning
                                                                                                          Key e-Learning Developments in                            2012 Revenue by Format (%)
 In Jun 2012, Malmberg acquired Bureau ICE, a testing and examinations company                           2012
 In May 2010, Sanoma Learning acquired the remaining 50% of YDP. Sanoma originally                      Centralised learning platform development

                                                                                                                                                                                                      30%
                                                                                                                                                                                  53%

                                                                                                                                                                                                                   13%
                                                                                                                                                                                                                         4%
  acquired a stake in YDP in 1999 and increased its ownership in 2004                                    Piloting online tutoring
 Sanoma Pro, Malmberg and Nowa Era accounted for c. 80% of Sanoma Learning’s total                      Mobile learning content and tools introduced
  revenue in 2012                                                                                        Digital learning methods grew double-digit                     Print     Hybrid     Pure Digital     Services

                        Overview of Sanoma’s Education Businesses                                                                                                 Relevant News
                                                                                                                                                     23-Apr-13: Malmberg announces launch of new Arithmetic
                                             Revenue      # of
                                                                        Year of                                        3.5m                           Test app
Company         Overview                                                Group           HQ                        students are learning
                                             (€m) (3)     Employees                                            from Nowa Era’s textbooks
                                                                        Inclusion                                                                    22-Apr-13: Sanoma Pro Online is renamed to Fokus and
                Provider of learning and
                                                                                                                        94%                           announces a new focus on team leading and supervising
Sanoma Pro      competence development       90m          211           1999            Finland
                                                                                                                      of Hungarian
                solutions                                                                                           schools are using
                                                                                                                                                     16-Apr-13: Sanoma Pro introduces a new e-bookshelf
                                                                                                                      NTK methods                     service containing professionals books focused on the
Malmberg        Educational publisher        90m          321           2004            Holland
                                                                                                                                                      corporate market
Nowa Era        Educational publisher        70m          290           1999            Poland
                                                                                                                         35k
                                                                                                           # of users of Sanoma Pro Teachers’        12-Apr-13: NTK announces development of interactive e-
                Primary and secondary textbook                                                                        Online Service
VAN IN                                         30m        122           2004            Belgium                                                       book player
                publisher
Sanoma          One of Sweden’s leading
                                                                                                                        50%                          11-Apr-13: Sanoma Pro announces introduction of digital
                                               25m        65            2011            Sweden                    of all pupils in primary
Utbildning      educational publishers                                                                    schools use a textbook in English from      textbooks for upper secondary schools
                                                                                                                    Sanoma Utbildning
NTK-Perfekt     Textbook publisher           20m          213           2006            Hungary                                                      22-Jan-13: Young Digital Planet announces launch of
Young Digital   Educational and language
                                                                                                                        95%                           Nicole and Tommy, a course for children offered in 5
                                             15m          290           1999            Poland                   of Finnish schools use               languages
Planet          digital publisher                                                                             Sanoma Pro’s digital services

                                                                      Source: Annual reports, press releases, company website, Capital IQ
IBIS Capital | A European Perspective on e-Learning                   (1)   As at 12-Jun-13                                                                                                                          26
                                                                      (2)   Excludes “other and eliminations”, which represented 6% of 2012 revenue
                                                                      (3)   Refers to approximate revenue figures as per Sanoma Learning’s capital market day presentation dated 14-Jun-13
e-Learning: Active European Corporates
Grupo Planeta & Lagardère

                                    Company Snapshot                                                                                                           Company Snapshot

 Headquartered in Barcleona (Spain) and founded in 1949                                                               Headquartered in Paris (France), restructured and renamed to Lagardère SCA in 1996
                                                                                                                        and employs c. 22.5k personnel
 Grupo Planeta is a leading family-owned Spanish publishing and communication group
  that offers a broad range of services                                                                                Primary listing on the Paris Euronext with a market cap of c. $3.5bn (1)
 Areas of activity include publishing, major works, bookstores and reading clubs,                                     Lagardère is a global media group that operates in c. 30 countries through four business
  collectibles, media, cinema and audio-visual production, training and professional and                                units: Lagardère Publishing (Book and e-Publishing), Lagardère Active, Lagardère
  internet                                                                                                              Services and Lagardère Unlimited
 Grupo Planeta offers a wide range of specialist educational & training courses from                                      Education operates within the Lagardère Publishing business, which generated €2.0bn
  language learning to university studies and MBAs                                                                          of sales (28% of total group revenue) in 2012, of which education represented 18%
 The company’s educational & training courses are focused on the needs of the Spanish                                     Lagardère is the world’s 2nd ranking publisher and the #1 book distributer in France
  labour market in addition to incorporating new forms of distribution models via
                                                                                                                           e-Books contribution to 2012 publishing revenue: Lagardère Publishing (8%), US
  technology (e.g. – e-Learning, virtual campuses, video)
                                                                                                                            Publishing (23%), UK Publishing (23%), France Publishing (2%)

               Overview of Training & Professional Businesses                                                                  Financial Summary & Overview of Education Brands

Company               Overview                                                               Digital?               Lagardère’s Select Education Brands                                 2012 Publishing Revenue by
Aula Planeta
                      Online educational tool that enriches classrooms with audio-
                                                                                             ✓                       Company      Overview                              Market
                                                                                                                                                                                        Activity (%)
                      visual and interactive tools and contents
                                                                                                                   Hachette       Publishes works for classroom and
                                                                                                                                                                                                                                General
CEAC                  Study centres in vocational training courses                           ✓                     Education      home use
                                                                                                                                                                        France                    15%          4%               Literature
Deusto Formacion      Training for technicians and middle managers                           ✓                                   Leading educational publishers in                                                              Other
                                                                                                                   Hatier        France offering 2,500 different        France            18%
Deusto Salud          Specialist training for positions in the healthcare jobs market        ✓                                   book titles                                                       €374m
                                                                                                                                                                                                     2012                       Education
                                                                                                                   Armand        Leading HE publisher in the fields                                Education
                      Undergraduate and graduate business school with two Spanish                                                                                       France                                      40%
EAE Business School
                      campuses and international campuses                                                         Collin        of human and social sciences                                       Revenue

                                                                                                                                                                                                                                Illustrated
                                                                                                                                 Publishes books and teaching tools
English Today         Online English learning platform                                       ✓                     Hatier        tailored to the needs of teachers in
                                                                                                                                                                        France
                                                                                                                                                                                            23%                                 Books
                                                                                                                   International Africa and French overseas
                                                                                                                                                                                                                                Reference
Home English          Personalised language teaching                                         ✓                                   territories
                                                                                                                                 Publishes for schools, vocational,
                                                                                                                   Hodder
Laudeo Oposiciones    Training programme for public sector entrance examinations                                  Education
                                                                                                                                 higher education and self-learning
                                                                                                                                 markets
                                                                                                                                                                        UK-AUS-NZ
                                                                                                                                                                                        2012 Publishing Revenue by
Online Business                                                                                                                                                                         Geography (%)
School
                      First Spanish-language online business school                          ✓                     Dynamic
                                                                                                                   Learning
                                                                                                                                 Online teaching and learning
                                                                                                                                 resource s
                                                                                                                                                                        UK-AUS-NZ
Planeta Formacion                                                                                                  Philip Allan  Publishes a wide range of
Corpotiva
                      Corporate training provider                                            ✓                     Updates       educational resources
                                                                                                                                                                        UK-AUS-NZ

                                                                                                                                                                                                                         20%
                                                                                                                                                                                            33%

                                                                                                                                                                                                           23%

                                                                                                                                                                                                                                    17%

                                                                                                                                                                                                                                          8%
Revistas Harvard                                                                                                   Anaya          Textbook publisher                    Spain-LatAm
Deusto
                      Reference journals for the business world                              ✓
                                                                                                                   Hachette                                             Arab Speaking
                                                                                                                                  Textbook publisher
                      Provides teaching projects to accompany parents during the                                   Antoine                                              Countries
Superpadres
                      process of educating their children
                                                                                             ✓                                                                                            France      RoW           US         UK    Spain

                                                                                  Source: Annual reports, press releases, company website, Capital IQ
IBIS Capital | A European Perspective on e-Learning                               (1)   As at 12-Jun-13                                                                                                                                   27
IBIS Capital | A European Perspective on e-Learning

            The European
            Education Market

IBIS Capital | A European Perspective on e-Learning
Distribution of Companies

 Breakdown of European e-Learning Companies by Country in 2012
                                                                                                                                                                                   Key Points
 1,000
                                                                                                                                                                                    Kompass International found c.3,000
  750    671                                                                                                                                                                         European companies in the e-Learning
                   532                                                                                                                                                               sector
  500
                         378
                                   303                                                                                                                                              Poland’s government is investing
  250
                                             127
                                                                                                                                                                                     heavily with the aid of EU structural
                                                      109               98      92        92            88       84         76                               104
                                                                                                                                      64          54                                 funds into e-Learning and learning
                                                                                                                                                                                     technologies for education

                                                                                                        Spain
         France

                         Germany

                                                                                                                                                             Other
                                    Poland

                                                                        Italy

                                                                                                                  Belgium
                                                                                Denmark

                                                                                          Norway

                                                                                                                            Romania

                                                                                                                                      Finland
                                             Sweden

                                                      Czech Republic

                                                                                                                                                  Slovakia
                   UK

                                                                                                                                                                                    The UK market has approximately 260
                                                                                                                                                                                     e-Learning software development
                                                                                                                                                                                     companies, more than double France
                                                                                                                                                                                     (2.5x), the next largest market in
 Breakdown of European e-Learning Companies by Sector in 2012
                                                                                                                                                                                     Europe
 1,000            908
                                                                                                                                                     862                            In France, 1% of any company’s salary
                                                                                                                                                                                     bill must be spent on training and
  750                                                                                                                                                                                development or it is levied as a tax on
                                                                                                                                                                                     employers partially explaining the large
  500                                                                                       430                                                                                      amount of corporate training
                                       321                             350                                                                                                           companies in France
  250
                                                                                                                                                                                    Despite being the largest market in
                                                                                                                            8                                                        Europe, the number of UK e-Learning
                                                                                                                                                                                     software development companies have
          Software for             Software              Consultants                Training courses                 Language                   Web-based
         education and                                                                                                courses                    training                            fallen by 11% p.a. for the last 2 years, in
            training                                                                                                                                                                 part due to consolidation within the
                                                                                                                                                                                     industry

                                                                                                   Source: Kompass International
IBIS Capital | A European Perspective on e-Learning                                                Note: The figures represent the companies who have registered with Kompass International, and should not be taken as a true                            29
                                                                                                   reflection of market size and activity. Nevertheless it is a good indication of activity within markets in the absence of other comparable data sets
Learning Populations Across Europe

 Projected 2015 Student Population Across Different Age Groups
                                                                                                                                                                                                                                                                                                                                                                     Key Points
                                                                                                                                    5-14                     15-20                  20-29
 (m)
 20.0    17.9                                                                                                                                                                                                                                                                                                                                                         The total enrolled student population
                    13.9 13.1                                                                                                                                                                                                                                                                                                                                          in Europe is approximately 111m as
                                              12.1                                                                                                                                                                                                                                                                                                                     compared to US with approximately
  10.0
                                                        9.4                                                                                                                                                                                                                                                                                                            77m enrolled students. European
                                                                   7.5 6.9
                                                                                                                                                                                                                                                                                                                                                                       governments (EU 27) spent
                                                                                                      3.5                                                                                                                                                                                                                                                              approximately Euro 674bn in 2011,
                                                                                                                       2.3 2.0 2.0 1.9 1.8 1.7 1.5 1.4
                                                                                                                                                       1.2 1.1 1.1 1.0 0.9 0.4                                                                                                                                                                                         equivalent to approximately 5.3% of
                                                                                                                                                                               0.2 0.1
  0.0                                                                                                                                                                                                                                                                                                                                                                  GDP. Denmark and Iceland allocating

                                                                                                                                                                                                                                               Denmark

                                                                                                                                                                                                                                                                                          Ireland

                                                                                                                                                                                                                                                                                                                                                       Iceland
                                                                       Spain
                     Germany

                                   France

                                                        Italy

                                                                                  Poland

                                                                                                                       Belgium

                                                                                                                                                                                                                 Austria
         Turkey

                                                                                                       Netherlands

                                                                                                                                                                                 Hungary

                                                                                                                                                                                                                                                                                                                           Slovenia
                                                                                                                                                                   Portugal

                                                                                                                                                                                                                                                             Finland

                                                                                                                                                                                                                                                                                                                                         Estonia
                                                                                                                                                                                                                                                                           Norway
                                              UK

                                                                                                                                     Greece

                                                                                                                                                    Sweden

                                                                                                                                                                                                                              Switzerland
                                                                                                                                                                                              Czech Republic

                                                                                                                                                                                                                                                                                                         Slovak Republic
                                                                                                                                                                                                                                                                                                                                                                       the largest share of GDP (7.8%).

                                                                                                                                                                                                                                                                                                                                                                      The working population in Europe is
                                                                                                                                                                                                                                                                                                                                                                       also significantly larger than that of the
                                                                                                                                                                                                                                                                                                                                                                       US, with approximately 239m workers
 2012 Employed Working Population for Persons in between 20-64 Years Old                                                                                                                                                                                                                                                                                               in Europe as compared to 155m in the
                                                                                                                                                                                                                                                                                                                                                                       US

                                                                                                                                                                                                                                                                                                                                                                      The key markets can be seen by the
         38.4

  (m)
  40.0                                                                                                                                                                                                                                                                                                                                                                 population sizes, however students and
                                                                                                                                                                                                                                                                                                                                                                       workforce numbers do not directly
                   27.7
                          25.2

                                                                                                                                                                                                                                                                                                                                                                       correlate
                                     23.3
                                              22.3
                                                      16.7
                                                              15.3

  20.0                                                                                                                                                                                                                                                                                                                                                                European market has a significant
                                                                                                                                                                                                                                                                                                                                                                       addressable market for e-Learning
                                                                        8.8
                                                                                  7.7

                                                                                                                                                                                                                                                                                                                                                                       with an already sizeable commitment
                                                                                                4.8

                                                                                                                           4.4
                                                                                                                 4.5

                                                                                                                                    4.2

                                                                                                                                                             3.9
                                                                                                                                                                       3.9
                                                                                                                                               4.1

                                                                                                                                                                                 3.6
                                                                                                                                                                                           2.9

                                                                                                                                                                                                                     2.4
                                                                                                                                                                                                           2.5

                                                                                                                                                                                                                              2.3
                                                                                                                                                                                                                                            2.3
                                                                                                                                                                                                                                                       1.8

                                                                                                                                                                                                                                                                                                                                                                       to education
                                                                                                                                                                                                                                                                                       0.9
                                                                                                                                                                                                                                                                                                    0.9
                                                                                                                                                                                                                                                                 1.3

                                                                                                                                                                                                                                                                                                                 0.6
                                                                                                                                                                                                                                                                           1.2

                                                                                                                                                                                                                                                                                                                           0.4
                                                                                                                                                                                                                                                                                                                                      0.2
                                                                                                                                                                                                                                                                                                                                                   0.2
                                                                                                                                                                                                                                                                                                                                                           0.2
   0.0
                                                                                                                                               Switzerland

                                                                                                                                                                                                                                                                                                                                                   Malta
                          France
         Germany

                                              Italy

                                                                                                                                                                                                                     Norway

                                                                                                                                                                                                                                                       Ireland

                                                                                                                                                                                                                                                                                                    Latvia

                                                                                                                                                                                                                                                                                                                                                           Iceland
                                                      Spain
                                                              Poland

                                                                                                                 Belgium

                                                                                                                                                             Austria

                                                                                                                                                                                           Bulgaria
                                     Turkey

                                                                                                                                                                                                                                                                                       Slovenia
                                                                                                                                                                       Hungary
                                                                        Romania

                                                                                                                                    Portugal

                                                                                                                                                                                                                              Finland

                                                                                                                                                                                                                                                                 Croatia
                                                                                  Netherlands
                   UK

                                                                                                Czech Republic

                                                                                                                           Sweden

                                                                                                                                                                                 Greece

                                                                                                                                                                                                           Denmark

                                                                                                                                                                                                                                                                                                                 Estonia
                                                                                                                                                                                                                                                                                                                           Cyprus
                                                                                                                                                                                                                                                                                                                                      Luxembourg
                                                                                                                                                                                                                                            Slovakia

                                                                                                                                                                                                                                                                           Lithuania

                                                                                                                                                                                           Source: OECD, Eurostat
IBIS Capital | A European Perspective on e-Learning                                                                                                                                                                                                                                                                                                                                                                 30
You can also read