Cogna Educacao S.a. · BMFBOVESPA:COGN3
Cogna Educacao — Q3 2023 Earnings Presentation
27 slides from Cogna Educacao's earnings presentation, Nov 9, 2023
Slide 1: 3Q23 Earnings Conference Call
3Q23 Earnings Conference Call November, 09, 2023
Slide 2: Disclaimer
Disclaimer The material that follows is a presentation of general information about Cogna Educação S.A. (“Cogna”). The information herein is not intended to be extensive, and it should not be considered by potential investors as a recommendation. This presentation is strictly confidential and may no
Slide 3: Message from CEO
Message from CEO Another quarter of Revenue, EBITDA and End of 2023 cycle with ACV of 18% growth Margin Growth compared the 2022 cycle; Cogna’s 3Q23 result represents the tenth consecutive quarter of strong recurring EBITDA growth and strong Second halt’s intake cycle reflects the compound Net Reven
Slide 4: Kroton Higher Education
Kroton Higher Education
Slide 5: Intake Cycle
Intake Cycle Number of students (Thousand) Intake Revenue (Change vs. 2H22) +5.3% 288 303 +1.5% +14.9% 77 78 High On-Site Attendance 225 +6.5% 211 +6.6% +0.9% Low On-Site Attendance 3Q22 3Q23 HOA LOA Total (1 (1) ) 5
Slide 6: Student base and Dropout
Student base and Dropout Undergraduate Dropout (% of base) -1.1 p.p. The dropout rate decrease by 1.4p.p in the High On-site Attendance 20.8% 19.7% (HOA) comparison between 3Q23 and 3Q22, reflecting 17.9% 16.5% -1.4 p.p. Total the quality of the base, improved student 13.1% satisfaction level (NPS)
Slide 7: Net Revenue
Net Revenue Net Revenue (R$ million) Quarter Accumulated Kroton's Net Revenue grew 8.4% in 3Q23 over 3Q22. +11.6% 2,394.1 2,672.3 Year-to-date, the Net Revenue achieves R$2,672.3 million, an increase of 11.6% growth versus 9M22; +8.4% 829.4 765.3 Fifth consecutive quarter of revenue growth, 3Q22 3Q2
Slide 8: Costs and Expenses
Costs and Expenses NOR % 3Q22 3Q23 D Costs and Expenses¹ - Quarter (R$ million) Total Costs 22.4% 22.0% -0.4pp +7.7% Corporate expenses 3.4% 4.3% +0.9pp 612.3 568.3 182.7 Operating expenses 28.9% 27.8% -1.1pp 171.6 36.1 26.2 Selling and Marketing +3.9pp 6.2% 10.1% 230.9 expenses 221.3 47.8 84.0 PDA
Slide 9: Average Collection Period (ACP) and Coverage Ratio (CR)
Average Collection Period (ACP) and Coverage Ratio (CR) Average Collection Period (ACP) (Out of Pocket) - 8 days The Average Collection Period (ACP) continues to 62 60 decrease, reflecting continued improvement in the - 1 day 55 54 53 student profile and the implementation of 48 48 47 45 improvement
Slide 10: Recurring EBITDA
Recurring EBTIDA Recurring EBTIDA and EBITDA Margin – Quarter (R$ million) 400.0 32.0% 350.0 29.4% 30.0% In 3Q23, the Recurring EBITDA reached R$243.9 million, an 27.1% 300.0 28.0% increase of 17.6%, with a 2.3p.p. increase in the Recurring 250.0 +17.6% 243.9 26.0% EBITDA Margin. For the year to dat
Slide 11: Productivity Increase by Campuses
Productivity Increase by Campuses Productivity by Kroton Campus Number of students High On-Site Attendance (HOA) by Campus (#) At the end of 3Q23 we had 112 campi, and the rationalization of Campuses, started in 2020, enabling a +54.6% 54.6% increase in the number of HOA/Kroton Campus students Kroto
Slide 12: KrotonMed
KrotonMed Net Revenue (R$ million) Quarter Accumulated +24.6% 499.9 401.1 Net Revenue continues to show consistent growth +11.5% 133.7 149.1 In the quarter, there was a reduction of 12.1% vs 3Q22. 9M22 9M23 This effect is due to the provisioning of FG-FIES retentions 3Q22 3Q23 in the amount of R$16.
Slide 13: Vasta K-12 Education
Vasta K-12 Education
Slide 14: Net Revenue
Net Revenue Net Revenue – Quarter (R$ million) In the quarter, Net Revenue is 36.6% higher than 3Q22 totaling R$257.9 million due to: +36.6% 257.9 188.9 (i) 20.0% growth in Net Underwriting Revenue ex- par 3Q22 3Q23 (ii) 16.0% growth in Non-Subscription Net Revenue – Cycle (R$ million) (iii) Recogni
Slide 15: Net Revenue
Net Revenue Net Revenue - Subscription (R$ million) -11.2% PAR +17.9% Subscription Revenue grew 17.9% between 2022 1,207.2 1,024,1 112.0 and 2023 Cycles; 126.1 157.8 +42.5% Complementary 110.8 Solutions Revenue from Complementary Solution grew by 787.2 937.4 42.5% between the 2023 and 2022 cycle, re
Slide 16: Costs and Expenses
Costs and Expenses % NOR Cycle 2022 Cycle 2023 D Costs and Expenses¹ - Cycle (R$ million) Total Costs 36.5% 39.2% +2.6p.p +23.0% Corporate Expenses 3.1% 3.2% +0.1p.p 1,048.6 Operational 852.7 46.0 15.3% 10.8% -4.5p.p 154.8 Expenses 35.9 55.5 176.8 229.2 Selling and Marketing 27.9 16.3% 15.9 -0.4p.p
Slide 17: Recurring EBITDA
Recurring EBITDA Recurring EBITDA and EBITDA Margin – Quarter (R$ million) 140.0 18.0% 16.0% 120.0 14.0% Recurring EBITDA grew 123.8% in 3Q23, reflecting the 100.0 10.0% 12.0% 80.0 10.0% good performance of complementary products and the 6.1% new avenue growth for B2G; 8.0% 60.0 6.0% 40.0 +123.8% 25
Slide 18: Saber: PNLD, Red Balloon, SETs and Other Businesses
Saber PNLD, Red Balloon, SETs e Other Businesses
Slide 19: Financial Highlights
Financial Highlights Net Revenue (R$ million) Quarter Accumulated +56.7% 405.8 Saber’s Net Revenue grew 62.0% in 3Q23, due to the 259.0 +62.0% 186.6 good performance of all operations: NBTP (+181.9%) 115.2 and Languages (+6.4%); 3Q22 3Q23 9M22 9M23 Recurring EBITDA grew 93.6% in 9M23 due to the seas
Slide 20: Cogna
Cogna
Slide 21: Net Revenue e Recurring EBITDA
Net Revenue e Recurring EBITDA Net Revenue (R$ million) Quarter Accumulated +19.3% +17.4% 3,986.6 Growth of 19.3% in Net Revenue in 3Q23, 3,396.2 1,270.0 driven by growth in the three business 1,064.3 units; 3Q22 3Q23 9M22 9M23 Recurring EBITDA and EBITDA Margin (R$ million) Growth of 31.9% in Recur
Slide 22: Operating Cash Generation (OCG) after Capex
Operating Cash Generation (OCG) after Capex Quarter (R$ million) 650 90.0% 83.3% 550 80.5% 85.0% Post-Capex Operating Cash Generation (OCG) grew 36.6% in 3Q23, reaching R$254.8 million; 80.0% 450 75.0% 350 70.0% +36.6% 254.8 65.0% 250 186.5 150 60.0% In 9M23, we surpassed the OCG for the full year 5
Slide 23: Net Profit
Net Profit Adjusted Net Profit and Adjusted Net Margin (R$ million) 700 2.0% 500 2.1% In the quarter there was an improvement of 1.0% 300 +165.7% 84.6 0.0% 100 -1.0% R$103.4 million in Adjusted Net Income; -100 -2.0% -300 -128.8 -3.0% -500 -4.0% -700 -3.8% -5.0% Adjusted Net Income grew by R$213.4 m
Slide 24: Leverage and Indebtedness
Leverage and Indebtedness The Leverage indicator reduced to 1.88x, reaching the lowest level since 4Q20, as a result of the consistent growth of the Company’s EBITDA and cash generation; st t t t t Co nants 24
Slide 25: Cash Position and Indebtedness
Cash Position and Indebtedness Breakdown of Net Debt (R$ million) We remain committed to reducing Financial Expenses; 4,403 201 4,604 1,296 3,308 Repurchase of R$1,024 million in debt traded below par on the secondary market with an Loans and Accounts Gross Debt Cash Net Debt estimated positive impa
Slide 26: Final Considerations
Final Considerations The 5th consecutive period of growing The Gross Margin Expansion Rationalization of Campi conducted revenue and volume, together with a demonstrates operational leverage and effectively, increasing efficiency and controlled dropout, supports growth in improvement in PDA, indicat
Slide 27: IR Contact
IR Contact: dri@cogna.com.br https://ri.cogna.com.br/ 27