Yduqs Participacoes Sa · BMFBOVESPA:YDUQ3
Yduqs Participacoes Sa — Investor Presentation (March 2025)
28 slides from Yduqs Participacoes Sa's investor presentation, March 2025
Slide 1: Corporate Presentation
Corporate Presentation March 2025 Produced by MSCI ESG Research as of November 2024 1 THE USE BY YDUQS Participações S.A. OF ANY MSCI ESG RESEARCH LLC OR ITS AFFILIATES (“MSCI”) DATA, AND THE USE OF MSCI LOGOS, TRADEMARKS, SERVICE MARKS OR INDEX NAMES HEREIN, DO NOT CONSTITUTE A SPONSORSHIP, ENDORSE
Slide 2: Key messages
Key messages There are more than 32.2 million Brazilians that could triple their income by using our services. This number is growing We have reinvented our business, with intense digital transformation and gained full independence from government incentives Yduqs has delivered growth, high margins
Slide 3: Key messages
Key messages There are more than 32.2 million Brazilians that could triple their income by using our services. This ‘ number is growing We have reinvented our business, with intense digital transformation and gained full independence from government incentives Yduqs has delivered growth, high margin
Slide 4: Several sources demonstrate the impact of higher education on Brazilians’ income
Several sources demonstrate the impact of higher education on Brazilians’ income… Increase in average salary – OECD Average salary – JPM/IBGE Immediate salary increase for our (%, Higher Education vs. High School) (R$/month, 1Q24) students upon graduation (1) (%, 2023) 117% 6,000 6.000 94% +119% 73.
Slide 5: … and employability
… and employability Unemployment rate (%, 1Q24) 12,0% -3.6 p.p. 10,0% 8,0% 6,0% 4,0% 2,0% 0,0% Sem No Ensino High No School High Ensino High School High Ensino HigherHigher Education Médio School Médio School Superior Education Sources: JP Morgan/IBGE - Considers unemployed people between 25 and 34
Slide 6: There are 32.2 million Brazilians who could benefit from an investment in higher education
There are 32.2 million Brazilians who could benefit from an investment in higher education The “inventory” is huge… …it is growing… … and the solution is in the private sector Education level of the Brazilian population Graduates in Brazil Freshmen (In million, 2020) (In million, 2022) (%, 2023) Gap
Slide 7: Key messages
Key messages There are more than 32.2 million Brazilians that could triple their income by using our services. This number is growing We have reinvented our business, with intense digital ‘ transformation and gained full independence from government incentives Yduqs has delivered growth, high margin
Slide 8: Company Profile
Company Profile One of the largest players in the Higher Education Sector in Brazil Focus on Higher Multi-brand National Education strategy Presence +100 Campi +1Students million +17 Employees k +9 k Medicine students +1.5 Cities k +2.0DL centers k On-campus Medicine IBMEC DL centers (present in all
Slide 9: Robust Brand Portfolio
Robust Brand Portfolio Brazil’s biggest Training Undergraduate and Graduate brand in education Solver of the future All Classes Consolidated and Integrated into the aggregated All Models Medicine Local force ecosystem in Brazil From Oiapoque to Chuí Businesses New Reference in Startup to National Th
Slide 10: Each Business Unity plays an important role
Each Business Unity plays an important role On-campus Digital Premium On-campus Digital IDOMED 3-4 days per week at one of our 88 100% on-line through mobile devices, 18 medical schools campuses supported by our more than 2,000 DL centers More than 2,000 annual seats Semi On-campus Life-long educati
Slide 11: We present products for different types of routine and with a high range of price points
We present products for different types of routine and with a high range of price points for the student’s entire life Approximate ticket range (R$/month) Not Regulated Free courses R$39 R$349 R$499 R$1.1k R$1.5k +840 COURSES R$129 R$399 DL/FLEX R$299 R$449 Semi On-campus Undergraduate R$299 R$329 L
Slide 12: We transformed our business, became independent from the government
We transformed our business, became independent from the government, with a significant expansion of Digital and Premium Higher margin businesses have grown faster Net Revenue EBITDA margin (R$ billion) CAGR % in 2024 5.4 5.1 4.4 4.6 45% 48% 3.9 1.3 1.4 3.6 3.6 0.3 1.1 3.4 0.4 0.7 1.0 0.7 0.5 22% 38
Slide 13: Medicine: exceptional results in perfect alignment with Public Policies
Medicine: exceptional results in perfect alignment with Public Policies Undergraduate Student Base Approval Rate for Additional Seats (in thousands) 18% YDUQS Other players 64% without YDUQS MAIS 72% CAGR 9.6 MÉDICOS I 51% 3.6 287 / 400 1,701 / 3,300 MATURED SEATS Considering the increase in Mais Mé
Slide 14: Leap in teaching quality
Leap in teaching quality General CPC | Participating Student base YDUQS 2022 2018 Player A 0.9% 94.2% 4.9% Player A 53.3% 46.7% 10.6% 12.5% 11.4% 22.8% YDUQS YDUQS 3.9% 84.7% 11.4% Player E 33.4% 66.6% Player B 5.9% 73.2% 20.9% Player C 0.5% 35.3% 64.3% Player C 6.4% 75.3% 18.3% Player F 0.5% 85.6%
Slide 15: We are the best positioned to create value by accelerating the adoption of innovation and AI
We are the best positioned to create value by accelerating the adoption of innovation and AI WHERE WE ARE GOING Workability at Scale Journey personalization 360° View 8 of the Student WHERE WE ARE Experience and Results 7 Academic with AI Robust Excellence Intelligence Infrastructure Complete Teachi
Slide 16: We are the best positioned to create value by accelerating the adoption of innovation and AI
We are the best positioned to create value by accelerating the adoption of innovation and AI Robust Complete Excellence Infrastructure Digital Teaching and Integrated Ecosystem Model Data • Stack designed to scale • Digital ecosystem integrating • Pedagogical model focused new Technologies with the
Slide 17: We are the best positioned to create value by accelerating the adoption of innovation and AI
We are the best positioned to create value by accelerating the adoption of innovation and AI Academic Experience Intelligence and Results at Scale with AI • Academic intelligence powered by • 30+ solutions expanding AI across data and AI to measure learning • the business • Assessment of the Real Pr
Slide 18: Key messages
Key messages There are more than 32.2 million Brazilians that could triple their income by using our services. This number is growing We have reinvented our business, with intense digital transformation and gained full independence from government incentives Yduqs has delivered growth, high margins
Slide 19: We have a history of growth, margin and payment of dividends…
We have a history of growth, margin and payment of dividends… Net Revenue Dividends and Share Buyback² CAGR (R$ million) (R$ billion) +9% Dividends Buyback 5.1 5.4 250 4.4 4.6 4.1 3.6 Macro Scenario 501 154 • End of FIES 201 146 153 153 142 80 80 150 38 • Economic Crisis 2019 2020¹ 2021 2022 2023 20
Slide 20: … establishing a healthy cash flow…
… establishing a healthy cash flow… Recurring Free Cash Flow (R$ million) 867 Covid + 736 580 514 505 188 2019 2020 2021 2022 2023 2024 20
Slide 21: … with 2024 strengthening our commitment with our shareholders' return.
… with 2024 strengthening our commitment with our shareholders' return. We delivered the guidance for the year and registered strong cash generation, which allowed us to carry out a robust buyback program (R$300MM), make important opportunistic acquisitions, pay dividends, and still reduce leverage.
Slide 22: Key messages
Key messages There are more than 32.2 million Brazilians that could triple their income by using our services. This number is growing We have reinvented our business, with intense digital transformation and gained full independence from government incentives Yduqs has delivered growth, high margins
Slide 23: Strategic Horizon
Strategic Horizon We are market Leaders Our cash generation will surprise you Triggers will be ours The industry is at a time of Very strong Our cash generation gives us many opportunity relative positioning degrees of freedom Margin at a new level as a mix, and operating Market: 32 M people can inc
Slide 24: Our net income will grow more than 250% in the coming years
Our net income will grow more than 250% in the coming years Adjusted EPS Evolution³ (R$) Revenue and Adjusted 2.5 – 3.5 3-4 EBIDTA² CAGR¹ 1.2 1.7 2-3 Mid to High Single Digit 2029 vs. 2024 2023 2024 2025 2026 2027 2028 2029 (1) CAGR: Compound annual growth rate. (2) Adjusted EBITDA for non-recurring
Slide 25: Over the next years, we will be focused on transforming this result into Cash Generation
Over the next years, we will be focused on transforming this result into Cash Generation of up to R$10 Billion in 5 years … Net Debt/EBITDA of 1.61x in 2024 Debt (1.53x ex-buyback) 8 - 10 Cash Generation¹ 2025-29 R$80MM paid in 2024 and R$150MM Dividends (R$ billion) proposed for 2025, a rise of 88%
Slide 26: Key messages
Key messages There are more than 32.2 million Brazilians that could triple their income by using our services. This number is growing We have reinvented our business, with intense digital transformation and gained full independence from government incentives Yduqs has delivered growth, high margins
Slide 27: ESG Agenda
ESG Agenda Large social capital, extensive experience in high-impact actions and one of the best ESG management systems in the country Produced by MSCI ESG E Our digital learning platform allows us to promote a significant impact on the S Highly recognized for its commitment G Apractices, global ben
Slide 28: IR Contact
IR Contact ri@yduqs.com.br www.yduqs.com.br 28
YDUQS Participações — Investor Presentation (March 2025) on 6ix