Cogna Educacao S.a. · BMFBOVESPA:COGN3
Cogna Educacao — Q4 2020 Earnings Presentation
31 slides from Cogna Educacao's earnings presentation, Mar 15, 2021
Slide 1: 4Q20 Results
4Q20 Results \ \ Mar 2021 -
Slide 2: Disclaimer
\ Uj Disclaimer The material that follows is a presentation of general information from Cogna Educagao S.A (“Cogna”). These are summarized information without the intention of being complete, which should not be considered by potential investors as a recommendation. This presentation is strictly con
Slide 3: 2020: A difficult year, but we prepare the company for the next trajectory of value generation
2020: A difficult year, but we prepare the company for the next trajectory of value generation Consistently increase profitability, prioritizing asset light business segments and models, with greater growth potential and greater ROIC kroton* ®@ Complete restructuring of the Campus operation conclude
Slide 4: Cogna - Operating Cash Generation
ML Y Cogna - Operating Cash Generation Despite the impacts on revenue and EBITDA, we delivered a 17% growth in Post- Capex Operational Cash Generation (GCO) in 2020 Post-Capex OCG (BRL million) and Conversion? — 2020 Cash Conversion? — 2020 +4% H17% — a a = i 2020 Ex-PDA 2019 2020 Guidance 2020 Adju
Slide 5: Cogna - Guidance 2020 and Leverage
Cogna - Guidance 2020 and Leverage + Recurring EBITDA of BRL 690 million, impacted by an extraordinary adjustment to allowance for doubtful accounts in the amount of BRL 415 million. + Excluding the allowance for loan losses carried out in 4Q20 (non-cash effect), recurring EBITDA exceeds the guidanc
Slide 6: Kroton
cu Kroton Mar 2021 \ \ \
Slide 7: Kroton Restructuring - Movements and Impacts
YY A Reestruturagdo da Kroton — Movimentos e Impactos Kroton did the biggest restructuring in its history, significantly reducing expansion costs but maintaining service in 100% of the municipalities 45 Units Handled Rent, Urban Real Estate Tax IPTU) and Condominium 124 176 ee 7 Utilities and Facili
Slide 8: Restructuring Expenses (R$ Millions) 4Q20
Impactos em Resultado Impactos em Caixa Gastos de Reestruturação (R$ Milhões) 4T20 2021E Total 4T20 2021E Total Sumário Executivo Total Multas 100 100 Rescisões 39 39 Recomposição de investimentos 61 61 Outros 15 15 Total Opex com efeito caixa 131 85 217 62 155 217 Investimentos (R$ milhões) 268 Bai
Slide 9: Kroton — Accounts Receivables
Y Yy Kroton — Accounts Receivables U, In 4020, we made adjustments to the provision that brought Kroton’s accounts receivable to another level ... Impact ART Green aye Out-of- —_ Mplementation of a new provisioning model, based on student profile attributes pocket Greater conservatism in the recover
Slide 10: Kroton — Accounts Receivables
\ Yy “ Kroton — Accounts Receivables ... that put accounts receivable from paying Kroton students at one of the safest levels in the industry: + Coverage ratio of 57%, the highest among the selected pairs + Average receivables term (ART) of 74 days, the shortest among the selected pairs Coverage Rat
Slide 11: Kroton — Operating Results
ZY Ui YY Kroton — Operating Results Relevant drop in revenue: significant reduction in the FIES base and effects of the pandemic on-site Digital growing 18% in student volume EBITDA with sharp drop, due to the drop in revenue and the higher provisioning Net Revenue (BRL million) Recurring EBITDA (BR
Slide 12: Kroton Summary
Yyy Resumo Kroton Ig , kroton* WHAT WAS 2020? @ Falling revenue (FIES graduations + pandemic effect) led to a major drop in profitability. To reverse the situation, Kroton underwent a deep turnaround, already concluded @ In parallel, we made a complete adjustment to accounts receivable, which placed
Slide 13: Vasta
Vasta Mar 2021 \ \ \
Slide 14: Cogna + Eleva: A highly value-generating transaction
Cogna + Eleva: A highly value-generating transaction Operation independently assessed by Vasta and approved by an independent committee 30% of revenues come from USS ITT proprietary schools (zero churn) EV/EBITDA Synergies BRL20 mm/year2 Post Secs 10.5x Transaction Value BRL580 million == mz EV/EBIT
Slide 15: Vasta - 23% Organic Growth in ACV 2021
” Masta - 23% Organic Growth in ACV 2021 + Annual Contract Value (ACV) of BRL 853 million for the commercial year 2021, 23% higher than the subscription revenue recognized in the commercial cycle 2020 + Growth driven by new schools (+ 189k new students) and cross / up-sell; in terms of product, trad
Slide 16: Vasta — Operating Results
Vasta — Operating Results + Double-digit organic growth in net revenue, driven by successive increases in ACV + Efficiency gains combined with dilution of costs and fixed expenses lead to margin expansion Net Revenue (BRL million) Recurring EBITDA (BRL million) and EBITDA Margin ALES 25,6% +25% aon%
Slide 17: Vasta Summary
Resumo Vasta Vv VASTA WHAT WAS 2020? EDUCACAO @ Organic revenue growth, derived mainly from the underwriting business, which already represents more than 75% of the total © Acquisitions of startups to increase the service offerings of the Vasta Platform @ Implementation of the Plurall Store, offerin
Slide 18: Platos
cu Platos Mar 2021 \ \ \
Slide 19: Platos — Operating Results
Y Yj Platos — Resultados Operacionais + Net revenue continues to grow due to the expansion of digital postgraduate students (+ 35% yoy) * Stabilization of EBITDA margin expansion - at a high level - despite greater investment in sales and marketing and greater need for provisioning Net Revenue (BRL
Slide 20: Summary Platos
Y Y Summary Platos Z WHAT WAS 2020? * OPM Client Kroton PLATOS * Revenue and EBITDA growth despite the effects of the pandemic * Digital product intake grew by 35%, reflecting the correct decision to focus on the modality * Continuous increase in student satisfaction (i) with +33 p.p. in NPS (vs. 20
Slide 21: Saber
Saber Mar 2021 \ \ \
Slide 22: Saber - Operating Results
Saber - Operating Results \ \\ + Net revenue suffered the effects of the pandemic, with dropout of students in the initial years and compulsory discounts (which offset the monthly fee adjustments) + Despite the drop in revenue, there was an expansion of EBITDA margin in 2020 due to efficiency gains
Slide 23: Summary Saber
Summary Saber +e0 SABER*:" WHAT WAS 2020? * Drop in revenue due to the pandemic, especially in early childhood education and in the early years of elementary school Expansion of 2.2 percentage points in the EBITDA margin, even with a drop in revenue NPS post stoppage recovered 9 points in schools an
Slide 24: Other Businesses
Other Businesses YYyyYYy, Mar 2021 -
Slide 25: Other Businesses — Operating Results
\ Other Businesses — Operating Results Yy p 9g In 2020, net revenue grew by 4%. Reduced scope of PNLD 2021 was offset by the gain in the participation of our publishers and the recognition, in 1Q20, of BRL 85 million in sales of PNLD 2020 Net Revenue (BRL million) Recurring EBITDA (BRL million) and
Slide 26: Cogna
Cogna Mar 2021 \ \ \
Slide 27: Cogna — Operating Results
\ Yj Cogna — Resultados Operacionais Wit + Net revenue impacted by the drop in higher education revenue and the lower PNLD revenue, partially offset by the growth of Vasta The effects mentioned above, added to the greater need for provisioning, were the main offenders to recurring EBITDA Net Revenue
Slide 28: Cogna — Net Income
Gy Y Cogna — Net Income itt iY + Net result affected by a series of extraordinary events, with no cash effect, in the amount of BRL 5.4 billion + Excluding extraordinary effects and / or no cash effect from 2020, Cogna would have reported a net income of BRL 55 million Adjusted Net Income (BRL milhé
Slide 29: Cogna | Indebtedness
_/, Cogna | Endividamento Win + Net debt of BRL 2.9 billion at the end of December, 3.23x the adjusted EBITDA of the last twelve months. + Excluding allowances for allowance for loan losses realized in 2020, totaling BRL 644 million (of which BRL 229 million in 2Q20 and BRL 415 million in 4Q20), the
Slide 30: Prospects for Cogna
Prospects for Cogna In 2021, more than 80% of Vasta’s revenue comes from the subscription business, which continues with strong organic growth. Acquisitions under analysis The sale of Saber Schools with the receipt of part of the price in Eleva shares allows Cogna to continue generating value with t
Slide 31: Investor Relations
Investor Relations ri.cogna.com.br dri@cogna.com.br