2014Investor Presentation

FORWARD-LOOKING STATEMENTS

This presentation may contain forward-looking statements including, without limitation, statements with respect management’s expectations regarding student demand, student persistence, the results of the Company's initiatives, emerging trends, productivity, Q3 2013 campaign, 2014 outlook, financial results, and related commentary. These statements involve risks and uncertainties, and the Company's actual performance may differ materially from those expressed in or suggested by such statements. Risks and uncertainties include, without limitation:

• the outcome of the Company's ongoing internal analysis of the impact of the correction of its methodology for evaluating collectability in connection with revenue recognition;

• failure to comply with the extensive regulatory framework applicable to the Company and its institutions, including Title IV of the Higher Education Act and its regulations, state laws and regulatory requirements, and accrediting agency requirements;

• adverse regulatory or legislative changes affecting the Company's institutions;• the imposition of fines or other corrective measures against the Company's institutions;• competition in the postsecondary education market and its potential impact on the Company's market share and

recruiting costs; and• reputational and other risks related to potential compliance audits, regulatory actions, negative publicity or

service disruptions.

More information on potential factors that could affect the Company's performance is included from time to time in the “Risk Factors” and “Management's Discussion and Analysis of Financial Condition and Results of Operations” sections of the Company's periodic reports filed with the SEC, including the Company's Annual Report on Form 10-K for the year ended December 31, 2013, filed with the SEC on March 17, 2014, and Quarterly Report on Form 10-Q for the quarter ended March 31, 2014, to be filed with the SEC. Forward-looking statements are made on the basis of management's views and assumptions regarding future events and business performance as of the time the statements are made, and the Company assumes no obligation to update any forward-looking statements or information, which speak as of their respective dates, except as required by law.

• MA, PsyD, PhD, Certificates

• Social & Behavioral Sciences

• Colorado Springs Campus

• Denver Instructional Site

• HLC Accredited

AU and UOR Student

Demographics

98% Online

72% Female

49% Minority

37 Years Old

University of The RockiesAshford University• AA, BA, MA, MBA

• 17 NAIA Sports Teams

• Online & Clinton, IA Campus

• WASC Accredited -- 5 years*

• Forbes Alliance

RECOGNIZED BRANDS

*On July 10, 2013, the WASC granted Initial Accreditation to Ashford University for five years, subject to, among other things, approval of U.S. Department of Education, which was obtained later in 2013. 

Forbes COBPS,

38%

Edu; 21%

Health, 24%

Lib. Arts, 16%

NDS; 1%

AU Programs

AA; 7%

BA; 78%

MA; 13%

Doc; 1% NDS/ HS/ Cert, 1%

AU and UOR Students

DIFFERENTIATION…TU

ITIO

N

OTHERS

AUAffordable Innovative

Quality

VALUE

“Ashford strategically and thoughtfully reallocated significant resources across the entire student life cycle in

order to positively impact student success.”

AFFORDABILITY

DeVry

Kapla

n

Capel

la

Straye

rUoP

Grand

Cyn

.

AZ Sta

te

Ashfo

rd

So. N

H U

Ashfo

rd M

il.

AMU

$-

$100

$200

$300

$400

$500

$600

-100%

-80%

-60%

-40%

-20%

0%

20%

40%35%

25%15%

-23%

-39% -39%

$ p

er

Eq

uiv

ale

nt

Cre

dit

Ho

ur*

% D

iffe

ren

ce

13% 12% 11%

47%

* $ per credit hour before applicable fees, discounts or scholarships

INNOVATION

Apple™/ Android™

MOBILE ACCESS

• Constellation • Students• Classroom

• Admin• Faculty• Grade Book

&

“… these systems hold tremendous promise for ensuring educational quality …“*

Ralph Wolff, WASC

R.E.A.L. Dashboard&

*A copy of the WASC action letter and visiting team report from the review of Ashford University is available on the WASC website at www.wascsenior.org

QUALITY

Quality Initiatives

Learning

• Smaller Class Sizes

• Continued Technology Investment

• InsideTrack

• 120 Constellation titles

• Waypoint in more than 200 AU courses

University Advisors

• Extend relationship to 26 wks

• Problem-solving Focus

Student Support

• 2 Advisors thru 4th Course

• Measure Student Engagement

• Predictive Modeling

• Better Persistence

Quality Matters

• > 85% of AU Courses Certified

• Clear Industry Leader

Faculty• More Full-Time Faculty

• Faculty Forums: Course, Program Development

• Faculty Training, Mentoring

• Measure Faculty Effectiveness

Forbes School of Business

Biz School Applications Up 11% in Q1 2014

Biz School Web Page Visits Up 36% Q4 ‘13 to Q1 ‘14

Forbes Brand Expands AU Corporate Relationships

Forbes Digital Presence Reaches Online Students

Unique Online Speaker Events;

More Than 1200 Forbes Contributors

Unique Learning Material Creates Value for Students

BRAND STRATEGY

ASHFORD UNIVERSITY

BRAND STRATEGY

• Branding Reinforces the Value Proposition

• Combines Traditional & Interactive Media: Attract learners most likely to persist / graduate

• Media Mix Optimization: Advanced analytics targets effective media channels Increases organic student inquiries

• Brand Strength: Build on and maintain positive momentum, perception and sentiment

• Overall Goal: “Organic” Inquiries

BRAND CAMPAIGN TECHNOLOGY CHANGES EVERYTHING.

Q3 2013 Campaign -- Early Results

Organic channels show continued strength --

Since campaign launch:

35% increase in Organic inquiries

41% increase in new enrollments from Organic channels

11% increase in conversion of Organic applications

Even greater increase in Total Conversion (inc. non-Organic)

FINANCIAL REVIEW

FINANCIAL MODEL HIGHLIGHTS

• Highly Competitive Tuition Pricing One of the lowest in the sector Below Title IV Loan Limits

• Increasing Investment in Student Success

• Emerging Trends: Continued Student Demand

Increasing Advisor Productivity

Branding: Increasing Organic Interest

Improving Persistence

No Accreditation Headwind

• Strong Cash Position, No Debt

CONSISTENT REGULATORY METRICS

2013 2012 2011 2010 2009

Ashford 2-Yr. CDR NA 10.1% 10.2% 15.3%

Rockies 2-Yr. CDR NA 4.8% 4.0% 3.3%

Ashford 3-Yr. CDR --- 15.4%* 16.3% 19.8%

Rockies 3-Yr. CDR --- 7.4%* 8.0% 3.3%

Ashford 90 /10 Ratio 85.6% 86.4% 86.8% 85.0% 85.5%

Rockies 90 /10 Ratio 87.6% 87.3% 85.0% 85.9% 84.6%

*draft data

FOCUSED ON A TURNAROUND

2009 2010 2011 2012 2013 Q2 '145,000

25,000

45,000

65,000

85,000

105,000

53,688

77,89286,642

81,810

63,624 61,117

Enrollments

2009 2010 2011 2012 2013 H1 '14$50.0

$250.0

$450.0

$650.0

$850.0

$1,050.0

$445.5

$699.9

$915.2$943.4

$751.4

$328.8

Revenue ($ millions)

OPERATING MARGIN

2009 2010 2011 2012 2013 H1 '140.0%

10.0%

20.0%

30.0%

17.8%

30.6%29.6%

20.3%

9.1%

4.4%

CASH FLOW AND EPS

2009 2010 2011 2012 2013 H1 '14-$5.0

$45.0

$95.0

$145.0

$195.0

$245.0

$116.1

$177.0

$216.0

$149.9

$85.6

-$3.8

Net Cash Provided (Used) By Operating Activities

($ millions)

2009 2010 2011 2012 2013 H1 '14$0.00

$0.50

$1.00

$1.50

$2.00

$2.50

$3.00

$3.50

$0.72

$2.11

$2.99

$2.17

$0.83

$0.19

Fully-Diluted Earnings Per Common

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