Somos Educação — Abril Educação — Investor Presentation (May 2012)
29 slides from Somos Educação's investor presentation, May 2012
Slide 1: Abril Educação – May 2012
ft Abril EpucacAo
Slide 2: Overview of Abril Educação
Overview of Abril Educação 1st publicly-held company dedicated to primary and secondary education and preparatory courses for university Focus admission exams One of the largest primary and secondary education companies in Brazil in terms of number of students and schools served Leadership Around 76
Slide 3: Abril Educação Offers Diversified Educational Solutions
Abril Educação Offers Diversified Educational Solutions Portfolio offered to students and Public & Private K-12 Schools Learning Schools & Technical New Systems Textbooks Prep Courses Courses Businesses & Digital content and Learning systems Own schools textbooks 1,700 17 50.4 million 2012 National
Slide 4: To Consolidate its Leadership, Abril Educação Has a New Focus
To Consolidate its Leadership, Abril Educação Has a New Focus Long tradition in education New focus “Spin-off” IPO Spin-off of Abril S.A. , 100% owned by 2011 Civita Family (56.4%) Família Civita New management The controlling shareholder of the Abril Group, a large team media conglomerate, with net
Slide 5: Milestones
Milestones 2011 jan fev mar abr mai jun jul ago set out nov dez 2012 jan fev mar abr 5
Slide 6: Corporate Structure
Corporate Structure CIVITA FAMILY BR EDUCACIONAL MARKET 56.4% 18.5% 25.1% 100% 100% 100% 100% 100% 100% 100% 5,9% Maxiprint Editora Gráfica e Sistema PH Editora C.A.E.P. Curso PH Gráfica e Livemocha Scipione Editora de Ensino Ática S.A. Ltda. Ltda. Editora Inc. S.A Anglo S.A Ltda. Ltda. 54,69% 20,00
Slide 7: Industry Turns over R$38bn per Year and is Undergoing Constant Expansion
Industry Turns over R$38bn1 per year and is Undergoing Constant Expansion Primary and Secondary Education Segments Number of Primary and Secondary Education Students per Level (mn students in 2009) 91% of the students in Brazil enrolled in primary and secondary education (% in 2009) Low penetration
Slide 8: Financial Information – 2011 | 4Q11
Financial Information – 2011 | 4Q11 8
Slide 9: Financial Highlights - 2011
Financial Highlights - 2011 1. Consolidated net revenues R$772.1 million, up 51% 2. Consolidated EBITDA R$218.2 million, 113% increase 3. Consolidated net income R$48.3 million, up 235% 4. IPO in July 2011 provided prudent capital structure 5. 2011 Operational cash generation of R$187.4 million Cons
Slide 10: Business Highlights
Business Highlights in the delivery of 50.4 million textbooks to the federal government’s 1. Record National Textbook Program (PNLD) Anglo preparatory courses and pH schools and preparatory courses: 2. excellent approval ratios in the entrance examinations for top Universities in the states of São P
Slide 11: Key Operational Indicators
Key Operational Indicators Number of Students Number of Schools Number of Books Sold +56% +45% +18% 1,589 59.837 482,408 16 20.373 333,250 1,020 12 16.038 1.573 50.883 462,035 1.008 317,212 2010 2011 2010 2011 2010 2011 Learning Systems 1,600 of schools (+565) 462,000 of students (+145,000) Learning
Slide 12: 4Q11 and 2011 Financial Results
4Q11 and 2011 Financial Results Quarter Year Change (%) (R$ mm) 4Q11 4Q10 2011 2010 4Q11/4Q10 2011/2010 Net Revenue 364.2 323.3 772.1 512.2 13% 51% Gross Profit 212.2 183.9 474.1 280.6 15% 69% Gross Margin (%) 58% 57% 61% 55% 1 p.p. 6 p.p. Operating income (loss) 96.9 89.8 150.8 62.0 8% 143% Operati
Slide 13: Net Revenue Evolution
Net Revenue Evolution Consolidated Net Revenues Growth per Business R$ mm Lines over 2010 - R$ mm 2010 2011 +51% +51% 772,1 0,9 772,1 19,1 3,6 +13% 60,1 96,2 512,2 80,2 364,2 323,3 512,2 203,6 105,4 124,1 80,3 16,8 66,6 1Q 2Q 3Q 4Q Year 2010 Editoras Anglo Publishers pH SER ETB MAXI 2011 Note: Anglo
Slide 14: Net Revenues per Business
Net Revenues per Business Net Revenues – 4Q11 (R$mm) Net Revenues – 4Q10 (R$mm) pH SER SER Anglo Anglo 3.3 ETB 21.7 12.5 22.1 Publishers 20.8 1% 1.2 6% 3% Publishers 7% 298.0 6% 0% 307.2 92% MAXI 85% 0.9 0% Net Revenues - 2011 (R$mm) Net Revenues - 2010 (R$mm) SER SER pH 37.5 18,4 Anglo 60.1 5% Angl
Slide 15: Non-cash impacts over results
Non-cash impacts over results 113.0 89.4 EBIT (R$ mm) 23.7 2011 EBIT Amortization of surplus value of intangible assets 2011 EBIT excluding surplus value amortization 14.2 IT/SC (R$ mm) (27.5) (41.7) 2011 Income Tax and Social Contribution Anglo Deferred Income Tax and Social Income Tax and Social C
Slide 16: Financial Results – 2011 (Pro forma)
Financial Results – 2011 (Pro forma) Pro forma figures exclude pH prep courses, ETB, Maxi Printt Consolidated net revenues - (R$ mm) Gross profit (R$ mm) & Margin (%) +18% +28% 62% 779.5 57% 481.1 376.2 658.4 2010 2011 2010 2011 Net income (R$ mm) & Margin (%) EBITDA (R$ mm) & Margin (%) 7% 30% +202
Slide 17: Financial Information – 1Q12
Financial Information – 1Q12 17
Slide 18: 1Q12 - Highlights
1Q12 - Highlights 1. Consolidated net revenue reached R$248.8 million, up 22% Learning Systems net revenue totaled R$72.1 million, up 30% 2. 538,000 students enrolled in schools that use the Company’s Learning Systems (+ 43% vs. 377,000 students) 3. Publishers net revenue stood flat at R$143.6 milli
Slide 19: 1Q12 - Highlights (cont.)
1Q12 - Highlights (cont.) 5. Consolidated EBITDA of R$110.1 million, up 13% (44% margin) 6. SG&A expenses totaled R$93.3 million, up 39% 7. Consolidated net income increased by 26% to R$53.9 million None of the works submitted by Ática and Scipione were rejected in the 8. technical assessment for th
Slide 20: 1Q12 - Financial Results
1Q12 - Financial Results (R$ mm) 1Q12 1Q11 Changes (%) Net Revenue 248.8 203.8 22% (=) Gross Profit 184.4 143.8 28% Gross margin (%) 74% 71% 3 p.p. (=) Operating income (loss) 91.2 76.6 19% Operating Margin(%) 37% 38% -1 p.p. (=) Net Income (loss) 53.9 42.8 26% Net Margin (%) 22% 21% 1 p.p. (=) EBIT
Slide 21: Net Revenue per Business Line ("As is")
Net Revenue per Business Line (“As is”) +22% 1Q11 1Q12 R$ 203.8 million R$ 248.8 million Schools and Preparatory Schools and Courses Preparatory 2% Courses 13% Cursos Preparatórios 13% Sistemas Learning de Systems Ensino 27% Learning Sistemas Publishers Editoras de Systems Ensino 58% 29% Publishers
Slide 22: Net Revenue
Net Revenue Net Revenue Evolution Net Revenue Evolution “As Is” (R$ mm) Comparable Basis (R$ mm) +22% +30% 26.1 1.7 261.5 26.1 1.7 248.8 6.2 0.3 13.7 6.2 0.8 12.8 4.5 (3.3) 8.1 203.8 (0.1) 201.8 1Q11 Publishers Anglo SER MAXI Anglo Grupo pH ETB 1Q12 1Q11 Publishers Anglo SER MAXI Anglo Grupo pH ETB
Slide 23: Gross Margin
Gross Margin Gross Margin 1Q11 1Q12 83% 81% 77% 74% 74% 71% 72% 73% 59% 59% 42% 19% 13% AE A&S Anglo SER Maxi Anglo pH Group ETB (System) (Courses) Publishers Learning Systems Schools and Prep Courses 23
Slide 24: 1Q12 – SG&A Expenses Evolution
1Q12 – SG&A Expenses Evolution Organic Acquisitions & New Businesses 93.3 7.7 14.1 Corporate Management 1.1 13.0 4.3 2.4 2.4 -0.5 67.2 1Q11 Business Holding SOP Acquisitions Goodwill Organic 1Q12 24
Slide 25: Non-cash impact over net income
Non-cash impact over net income 25
Slide 26: Consolidated Capital Structure
Consolidated Capital Structure Consolidated Debt Position (March 2012)- R$ mm Capital Structure Capital Structure - -R$R$ mmmm Shareholders Equity Net Debt Shareholders Equity Net Debt 277,8 219,7 245,4 18% 516,4 1.015,7 219,7 277,8 959,0 912,9245,4 18% 516,4 22% 21% 1.015,7 959,0 314,7 912,9 379,5
Slide 27: Stock Performance
Stock Performance Price (R$) vs. Volume (R$ mm) (07/26/2011 a 05/11/2012) 30 + 36% Appreciation 27.10 30 R$ million Share price - R$ 25 25 20 20.00* 20 15 15 10 10 5 5 0 0 27-Jul 17-Aug 8-Sep 29-Sep 21-Oct 14-Nov 6-Dec 27-Dec 18-Jan 9-Feb 5-Mar 26-Mar 17-Apr 9-May Volume (R$) Price *IPO price ADTV N
Slide 28: Abril Educação – A unique investment opportunity!
Why Abril Educação? • We are the leaders in the primary, secondary and pre-university education segment in Brazil, the largest and with the fastest growth rate in the country; • Our strategy is based on a platform of high-quality products, content, services and technology, with national benchmark br
Slide 29: Investor Relations
Investor Relations ri@abrileducacao.com.br www.abrileducacao.com.br/investors Legal Disclaimer This document must not be considered a recommendation for investment in the Units. Before investing in the Units, the investors should conduct their own analysis and valuation of the Company, its business