Cogna Educacao S.a. · BMFBOVESPA:COGN3
Cogna Educacao — Q4 2021 Earnings Presentation
27 slides from Cogna Educacao's earnings presentation, Mar 15, 2022
Slide 1: Earnings 4Q21
Earnings 4Q21 \ \ March 2022
Slide 2: Disclaimer
Disclaimer The following material presents general information about Cogna Educação S.A (“Cogna”). As there was no intent of providing full information, no potential investors shall deem the data herein as recommendations. This presentation is strictly confidential and shall not be disclosed to anyo
Slide 3: Highlights Cogna
Highlights Cogna • Recurring EBITDA from R$ 295M negative in • In 4Q21 (first quarter of the trade cycle 2022) the • 2021 Recurring EBITDA increased 96%, 4Q20 to R$ 191M in 4Q21, an increase of R$ net revenue increased 15.9%, with subscription with margin of 25.6% (an increase of 486M revenue growin
Slide 4: Kroton
Kroton \ \ March 2022
Slide 5: Kroton – Highlights
Kroton – Highlights Student’s base and Average Ticket Turnaround em Campus e Melhora de Performance • Student base grew 5.2% in 2021 led by DL courses, with stabilized average ticket: • Optimization of the portfolio of courses per unit allowed Digital student’s growth both in # of students and reven
Slide 6: Kroton – Student's base
Kroton – Student’s base • In 4Q21, the student’s base (undergraduate and graduate) grew 5.2%, due to the increase of 15.1% in DL, aligned with the company's strategy to explore the hybrid/digital learning as one of the main growth drivers • We present a stability in the average ticket, both for on-c
Slide 7: Kroton – Student's Intake and CAC
Kroton – Student’s Intake and CAC • Increase of 14.7% in student’s intake compared to the previous year • Reduction of R$104M in marketing expenses (-25.9%) • The two actions combined generated an efficiency (reduction) of 35.4% in costumer acquisition cost (CAC) Student’s Intake (’000 students) Mar
Slide 8: Kroton – Accounts Receivable and Timely Payments
Kroton – Accounts Receivable and Timely Payments (out-of-pocket students -undergraduate) • The Accounts Receivable Coverage Index reached 59.9% in 4Q21, a high level that brings security to accounts receivable • The Collection Period (PMR) of out-of-pocket students reached 60 days, 14 days lower tha
Slide 9: Kroton – Working capital management and accounts Receivable
Kroton – Working capital management and accounts Receivable (undergraduate) Coverage Ratio, Gross and Net Accounts Receiveble (AR) • We changed our provision model in the 4T20. New predictive 67% 66% 69% 67% Coverage Ratio model improved in conjunction with an international 65% consultancy with 88%
Slide 10: Kroton – Net Revenue
Kroton – Net Revenue • Net revenue decrease due to the reduction of on-campus student base • The reduction at on-campus revenue was partially offset by the growth of 12.3% and 10.0% in DL revenue in 4Q21 and 2021, respectively Net Revenue (R$ million) – 4Q Net Revenue (R$ million) – 12M 963 3,727 84
Slide 11: Kroton – Recurring EBITDA
Kroton – Recurring EBITDA • Recurring EBITDA increased R$ 788 million in 2021 due to, mainly, restructuring operation, timely payment improvements with consequent PDA reduction and corporative and marketing expenses. Disregarding the extraordinary PDA adjustments made in 2020, we had growth of R$ 37
Slide 12: Vasta
Vasta \ \ March 2022
Slide 13: Vasta – Operating Results
Vasta – Operating Results • Net revenue increase of 15.9%, with subscription revenue (including PAR) growing 22.2%. Disregarding PAR, subscription revenue grew R$ 72 million or 34.2% • Non-subscription in line with 4Q20, but reducing share in Vasta’s net revenue of 4.5 p.p. aligned with the strategy
Slide 14: Vasta – ACV Evolution
Vasta – ACV Evolution • 35% of ACV increase (R$ 1 billion) compared to the subscription revenue in 2021, being 22% of organic growth (ex Eleva’s Learning System) • The complementary solutions accounted for the highest growth rate amongst business segments (47% compared to the subscription revenue in
Slide 15: Vasta – 1Q22 Net Revenue Guidance
Vasta – 1Q22 Net Revenue Guidance • Due to seasonality of delivers of new products and reduction of PAR revenue, 2022 ACV 2022 is less concentrated on the first's months than previues Years ACV Revenue (1) 38% 2Q22+3Q22 = 33.3% 35% 33% 32% 2Q21+3Q21 = 28.2% 16% 13% 4Q20 4Q21 1Q21 1Q22 2Q21 2Q22 3Q21
Slide 16: Other Business
Other Business \ \ March 2022
Slide 17: Other Business – Operating Results
Other Business – Operating Results • Net Revenue grew R$50 million (24.8%) in 4Q21 mainly due to the sales to the National Textbook Program (PNLD), growing R$34 million (19.3%) compared to 4Q20. • Recurring EBITDA reached R$ 72 million, growing 39.5% compared to 4Q20 Net Revenue (R$ million) Recurri
Slide 18: Cogna
Cogna \ \ March 2022
Slide 19: Cogna – Net Revenue
Cogna – Net Revenue • Reduction of the net revenue resulting from the mix change of undergraduate, with a higher share of the hybrid/digital learning and ACV break in Vasta's during the 2021 trade cycle (4Q20 to 3Q21) • 2021 represented an inflection point for the Cogna's revenue and we expect a res
Slide 20: Cogna – Recurring EBITDA
Cogna – Recurring EBITDA • Change mix of undergraduate courses, focusing on hybrid/digital learning led to a significant increase of margin, opposing the net revenue decrease. Disregarding the extraordinary PDA adjustments, we had R$ 250 million increase in recurring EBITDA • Margin EBITDA increase
Slide 21: Cogna – Operating Cash Generation
Cogna – Operating Cash Generation • Positive Operating cash Generation after capex of R$ 494 million, an increase of R$254 milhões, or 105.6% in 2021 • OCG performance shows the clear evolution in our ability to convert EBITDA into cash, which increased 1.6 p.p, de 34.8% in 2020 to 36.5% in 2021 OCG
Slide 22: Cogna – Leverage
Cogna – Leverage • As result of improvements mentioned and strong cash generation, the net debt/Recurring EBITDA ratio reeached 2.16x, in line wiwth 3Q21, the last quarter that had the waiver in the covenant calculation • In february 2022 the new stock buyback program was approved, totaling R$250 mi
Slide 23: Cogna – Cash flow and Indebtedness
Cogna – Cash flow and Indebtedness • Solid cash position of R$ 4.0 billion, an amount enough to amortize the short-term debts. • Net Debt of R$ 3.0 billion. We maintained the net debt in line with the last 4 quarters, despite the interest rate increase • Net Debit/Recurring EBITDA of 2.16x • Average
Slide 24: Summary of 2021 results
Summary of 2021 results Net Revenue: Recurring EBITDA: OCG after Capex - 10.5% + 96.4% + 105.6% From: R$ 5,899 milhões From: R$ 690 milhões From: R$ 240 milhões To: R$ 5,282 milhões To: R$ 1,355 milhões To: R$ 494 milhões DL/Hybrid Students (increased Positive Impacts on Operating Result On-campus u
Slide 25: Perspectivas
Perspectivas • Maintenance with some opportunity for increasing in profitability • Student’s intake growing in both on-campus and DL, with increase of revenue from freshman students, i.e., healthy growth of our harvest • Student’s Base continues to grow. Smaller decrease in on-campus courses, tendin
Slide 26: Perspectivas
Perspectivas • B2C platform of young people and adults walking progressing as expected • Solid balance sheet and leverage at healthy levels • Stock Buyback Program approved and running • Individual investment plan in Cogna’s shares by three of the company main executives • From Monday, 28/3, Roberto
Slide 27: Relações com Investidores
Relações com Investidores ri.cogna.com.br dri@cogna.com.br