News Corporation · NASDAQ:NWS
News — UBS conference December 2012
56 slides from News's conference presentation, December 2012
Slide 1: Cautionary Statement Regarding Forward-Looking Statements
Amplify. Cautionary Statement Regarding Forward-Looking Statements This document contains certain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on management's views and assumptions regarding future events and busi
Slide 2: Amplify. Joel Klein, CEO
Amplify. Joel Klein, CEO
Slide 3: Slide 3
Slide 4: Starting now, digital technology will forever change the way we educate students
starting now, digital technology will forever change the way we educate students.
Slide 5: Why change the way we educate students?
Why change the way we educate students?
Slide 6: We're spending more, but not seeing results
Why change the way we educate students? We’re spending more, but not seeing results.
Slide 7: US per student spending vs. student performance, 1970-2008
US per student spending vs. student performance, 1970-2008 $11,500 500 Constant NAEP 2009-10 Spend test dollars scores Math . a (a ESSE $3,000 Reading 250 1970 2008 Source: NCES. Digest of Education Statistics, 2011; National Assessment of Educational Progress (NAEP), Long Term Trends, 2012
Slide 8: We're falling behind the rest of the world
Why change the way we educate students? We’re falling behind the rest of the world.
Slide 9: Global per student spending and student performance, 2008
Global per student spending, 2008 Student performance, 2008 USA EE $10,995 KOR i 546 UK i 9.1.69 FIN 541 FRA SE 8,559 JPN as 52° CAN i 8,583 CAN i 52” JPN i 8,501 AUS i 514 FIN SE 8,063 CER i 515 GER EE 7,859 FRA Ss 49” AUS i 7.214 UK a 492 KOR i 6,723 USA i 437 RUS BJ 4,071 RUS EE 4.63 MEX BM 2,284
Slide 10: Schools have not changed with the times
Why change the way we educate students? schools have not changed with the times.
Slide 11: Slide 11
Slide 12: The next generation of Americans deserves better
Why change the way we educate students? The next generation of Americans deserves better.
Slide 13: Slide 13
Slide 14: Why start now?
Why start now?
Slide 15: States are adopting Common Core Standards
Why start now? states are adopting Common Core Standards.
Slide 16: States adopting Common Core Standards, 2014
i States adopting Common Core Standards, 2014 Source: Common Core State Standards Initiative, 2012
Slide 17: US K-12 education market, 2010
US K-12 education market, 2010 13.8K K-12 districts 99K K-12 schools 49.8M K-12 students $673B in K-12 expenditures Source: NCES, Digest of Education Statistics, 2011
Slide 18: Our teaching force is changing
Why start now? Our teaching force is changing.
Slide 19: Age and experience of US teaching force, 1988-2008
Age and experience of US teaching force, 1988-2008 5 Ot. old ence 40% By, 25% 17% | —s 1988 2008 1988 2008 Source: NCES, Digest of Education Statistics, 2010
Slide 20: We're seeing shifts in spending
Why start now? We’re seeing shifts in spending.
Slide 21: Largest US school districts
20 Largest US school districts Source: Amplify Education, Inc., 2012 10% ofthe top 20 US school districts indicate interest in rethinking education delivery
Slide 22: Potential cost savings through blended learning model
Potential cost savings through blended learning model $10,000 Student services & School operations L_ Technology & —— | Content Faculty & _ L__ Administration —— Traditional model Blended model Source: Parthenon Group, 2012 —\
Slide 23: Mobile hardware costs are decreasing
Why start now? Mobile hardware costs are decreasing.
Slide 24: Average tablet cost
Average tablet cost Source: Gartner, 2012 2010 $543 2015* $263 *projection
Slide 25: Why digital technology?
Why digital technology?
Slide 26: Other industries have already benefited
Why digital technology? Other industries have already benefited.
Slide 27: Slide 27
Slide 28: Schools are already demanding it
Why digital technology? Schools are already demanding it. ae
Slide 29: US adoption rates of educational technologies, projected by 2014
US adoption rates of educational technologies, projected by 2014 of states plan to adopt online assessments of schools plan to implement or expand use of digital textbooks of school plan to implement or expand use of mobile devices Source: Common Cores State Standards Initiative, 2012; Federal Commu
Slide 30: It can improve learning
Why digital technology? It can improve learning. ne
Slide 31: Positive effects of digital technology on student performance
Positive effects of digital technology on student performance Engagement Efficiency Performance Source: The Digital Textbook Collaborative, 2012
Slide 32: Slide 32
Slide 33: Learning
Learning
Slide 34: Data-driven assessments and analytics
data-driven assessments and analytics
Slide 35: Amplify Insight
Amplify Insight Founded in 2000 as Wireless Generation Market leader in educational analytics and assessment Serves educators in all 50 states, including 40% of the top 200 school districts Product areas - Assessment and Analytics - Enterprise Data Systems - Professional Services
Slide 36: Insight results
Soh! Increased number of Increased average score students scoring proficient of 1st grade students on on 3rd grade state test by literacy measures by 10 percentage points 15 percentage points
Slide 37: Amplify Insight: enterprise data systems
Amplify Insight: enterprise data tasystems F & m™™& SHARED Smarter )” LEARNING Balanced COLLABORATIVE Assessment Consortium
Slide 38: Indiana results
@00/ oss = > — The Future Of State Interve... % \_ DEDOE 2022 state test score... =) € > S fF B&F heep://stateimpact.npr.org/indiana/2012/11/27/the-future-of-state-interventions-in-struggling-indiana-schools/ wat A reporting project of local public media and [| p|r | About Statelmpact Other States +
Slide 39: Tablet-based distribution platform
tablet-based distribution platform
Slide 40: Amplify Access
Amplify Access Open tablet-based platform Subscription-based bundle Optimized for the K-12 market - Affordable, high-end tablets - Anywhere, anytime learning - Curated third-party content - High-impact instruction - One-to-one computing * Mobile device management
Slide 41: Amplify Access: pilot sites
Amplify Access: pilot sites
Slide 42: Adaptive digital curriculum
adaptive Learning digital curriculum
Slide 43: Amplify Learning
Amplify Learning Cross platform, core curricula K-12 Reading, Math and Science Designed for the 21st Century classroom - Immersive digital experiences * Classroom orchestration * Sophisticated analytics » Personalized learning
Slide 44: Amplify Learning: pilot sites
Amplify Learning: pilot sites
Slide 45: How the businesses relate
How the businesses relate Content Learning Platform Access Analytics Insight
Slide 46: US K-12 spending/yr
US K-12 spending/yr $673B > $40B > $17B total purchased instructional products & materials & services technology
Slide 47: Convergence comes to education
Large caps Convergence comes to Education publishers Large technology platforms | Got Content Analytics Distribution Startup content plays Startup platform plays Startups
Slide 48: Amplify investment thesis
Amplify investment thesis Amplify is a balanced investment opportunity in the disruptive innovation in education
Slide 49: Amplify historical financials
Amplify historical financials 100M _ 75M 7 =f . Now achieving $100M in revenues, with 22% average 50M annual growth rate over the past 5 years. 25M - — a [| FY09 FY03 FY06 FY12
Slide 50: Amplify disciplined investment
Amplify disciplined investment FY13 Operating losses, USD Millions $180M LOM $24M Insight Learning Access Corp. Amplify
Slide 51: Amplify revenue mix
Amplify revenue mix Today Projected ok Insight 100% Learning
Slide 52: Amplify revenue mix
Amplify revenue mix Today Projected Subsc Enterprise Software Development Enterprise Software Development
Slide 53: Market drivers and milestones
Market drivers and milestones RTT Federal Digital Competition © Common Core Textbook Plan ($400M) State Standards Vv A Vv FY13 FY14 FY15 FY16
Slide 54: Amplify our advantage
Amplify our advantage. Track record of success in K-12 education market Foundation in educational data and analytics Content and curriculum built for a digital world Distribution and delivery designed for the classroom Experienced team who understands how to disrupt education and deliver results
Slide 55: Thank you
Thank you.
Slide 56: Amplify. www.amplify.com
Amplify. www.amplify.com