Cogna Educacao S.a. · BMFBOVESPA:COGN3
Cogna Educacao — Q1 2022 Earnings Presentation
23 slides from Cogna Educacao's earnings presentation, May 15, 2022
Slide 1: 1Q22 Results
1Q22 Results \ \ May 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: Message from the CEO
Message from the CEO • Getting closer to the turning point of • Net revenue beat the R$ 370 guidance • Trajectory of value generation: we revenue for the quarter; achieved revenue growth in addition to • The Enrollment cycle confirms the • More then 2/3 of the 2022 ACV the profitability increase sta
Slide 4: Kroton
Kroton \ \ May 2022 .
Slide 5: Kroton – undergraduate student base, enrollments and dropout
Kroton – undergraduate student base, enrollments and dropout • Student base exceeds 1 million students, an 11.4% growth with 105.5 thousand new students. • Student base growth due to improvements in student intake and reduction in dropout: • Student’s intake grew 21.9%: (i) high on-campus attendance
Slide 6: Kroton – Revenue, CAC and DL Centers
Kroton – Revenue, CAC e DL Centers • Revenue from freshman increased 6.3% in 1S22, with emphasis on the 22.1% growth in revenue raised in low on-site attendance • Change of mix towards greater digitalization occurs in HOA and LOA and allows for increased margins • Acquisition cost per student and re
Slide 7: Kroton – accounts receivable scenario
Kroton –accounts receivable scenario Another quarter with results that show improvement in the quality of Kroton's accounts receivable and attest to the effectiveness of the measures taken to this end: • Kroton reaches in Q1 2022 the lowest average collection period: 46 days;; • Value represents a r
Slide 8: Kroton – Release 2021: Volume and Revenue
Kroton – Release 2021: Volume and Revenue • During 2021, we improved the model for late enrollment program (“PMT”) for on-campus students; • Analyzing the volume of revenue on a comparable basis, excluding the effect of the PMT for the 1H21, we would present an increase in revenue from HOA of 8.8% a
Slide 9: Kroton – Working Capital and Accounts Receivable Management
Kroton – Working Capital and Accounts Receivable Management (undergraduate) CoverageRaton, Gross and Net Accounts Receiveble (AR) 67% 66% 69% 67% 69% Coverage • We changed the provisioning model in the last quarter of 2020. 65% Ratio Improved predictive model in conjunction with international 55% 50
Slide 10: Kroton – Revenue and EBITDA
Kroton – Revenue and EBITDA • 5th consecutive quarter shortening revenue gap: Positive results at the corner • Recurring EBITDA reaches R$238MM (+8.7% vs Q1 2021), Margin increases 420 bps and more than compensates 4.9% reduction in ROL. • This result reflects the company's strategic direction: (A)
Slide 11: Kroton Med – Highlights
Kroton Med – Highlights + 14% Pitágoras (Codó/MA) Pitágoras (Bacabal/MA) Seats: 1Q22: 60 | 2022e: 60 Seats: 1Q22: 60 | 2022e: 60 UNIME (Lauro de Freitas/BA) Seats approved Seats to be Guidance Seats: 1Q22: 120 | 2022e: 120 approved UNIC (Cuiabá/MT) 1Q22 Seats: 1Q22: 106 | 2022e: 120 Pitágoras (Eunáp
Slide 12: Vasta
Vasta \ \ May 2022 .
Slide 13: Vasta – Operations
Vasta – Operations • Vasta added 766 new schools to its platform in comparison with the 2021 cycle, surpassing the mark of 1.6 million students using the education system; • Growth of 187 new schools in the complementary solutions base, growing 30% in student base compared to the immediately previou
Slide 14: Vasta – Net Revenue
Vasta – Net Revenue • Revenue growth of 35.5% in the quarter, meeting the guidance of R$370 million presented in the Q4 2021 announcement; • In the 2022 cycle (Q4 2021 -Q3 2022), net revenue amounted to R$778,8 million, 24.7% higher year-on-year • The revenue from subscription products reached R$ 68
Slide 15: Vasta – Recurring EBITDA
Vasta – Recurring EBIDTA • Recurrent EBITDA accumulated in the 2022 cycle amounted to R$ 288 million, 45.8% higher than the previous cycle; • Important measures were taken regardin costs and expenses by changing staff, optimizing results by achieving estimated economies of scale expected by the 35%
Slide 16: Saber
Saber \ \ Maio 2022 .
Slide 17: Saber – Operating Results
Saber – Operating Results • Following the sale of the Saber schools operations to the Eleva Group, a transaction in line with the company's strategy to go asset light, in Q1 2022, the PDA & B2G solutions, Sets and Voomp ("other businesses" as previously categorized) are now part of Saber's results,
Slide 18: Cogna
Cogna \ \ May 2021 <
Slide 19: Cogna – Net Revenue and Recurring EBITDA
Cogna – Net Revenue and Recurring EBITDA • Net revenue¹ showed a growth of R$71,2 million in the period, mainly due to Vasta's solid performance, which showed a high growth (R$99,7 million) in comparison to the same period of the previous year; • 2021 was Cogna's inflection point and the pickup in n
Slide 20: Cogna – OCG after CAPEX
Cogna – OCG after CAPEX • Q1 2022 reaches R$178,2 million OCG and represents growth of R$116,7mm vs. Q1 2021 recurring OCG disclosed¹. Even when card anticipation is considered, OCG was R$8 million higher in the period. • Consistency in OCG positions Cogna as an sector standout; • Conversion of 44.4
Slide 21: Cogna – Indebtedness and Leverage
Cogna – Indebtdeness and Leverage • Cogna closes Q1 2022 with a net debt/ recurring EBITDA ratio of 2.15x for the last 12 months, a healthy figure and slightly lower than the 2.16x presented in Q4 2021 • Solid cash position amounting to R$3.8 billion allows to proceed with the share buyback projecte
Slide 22: Perspectives
Perspectives • Revenue retraction in 2022 will be compensated by operational improvement, leading to greater recurring EBITDA, reflecting higher profitability for LOA students • KrotonMed reached company’s guidance that were informed at Cogna Day; • From 2023 and on, the company will have growth in
Slide 23: Investor Relations
Investor Relations ri.cogna.com.br dri@cogna.com.br