Somos Educação — Abril Educação — 3Q11 Earnings Presentation
23 slides from Somos Educação's earnings presentation, Dec 15, 2011
Slide 1: APIMEC Meeting / December 15, 2011
APIMEC Meeting / December 15, 2011
Slide 2: Legal Disclaimer
Legal Disclaimer This material does not constitute an offer, or invitation, or solicitation or an offer, to subscribe for or purchase any securities. This presentation contains forward-looking statements within the meaning of the Securities Exchange Act of 1934. Such forward-looking statements are o
Slide 3: Overview of Abril Educação
Overview of Abril Educação 1st publicly-held company dedicated to primary and secondary education and preparatory courses for university admission Focus exams One of the largest primary and secondary education companies in Brazil in terms of number of students and schools served Leadership Around 71
Slide 4: Abril Educação Offers Diversified Educational Solutions
Abril Educação Offers Diversified Educational Solutions Technical/ Preparatory Vocational Courses Courses Distance Textbooks Learning Learning Language Systems Training Digital content and Learning systems Own schools textbooks 1,141 16 50.4 million 2012 National Textbook associated schools (*) own
Slide 5: To Consolidate its Leadership, Abril Educação Has a New Focus
To Consolidate its Leadership, Abril Educação Has a New Focus Long tradition in education New focus “Spin-off” IPO Spin-off of Abril S.A., 100% controlled by 2011 Civita Family (56.4%) Civita Family New management The controlling shareholder of the Abril Group, a large team media conglomerate, with
Slide 6: Ownership Structure
Ownership Structure CIVITA MANAGEMENT BR EDUCACIONAL MARKET FAMILY 0.49% 56.43% 18.50% 24.58% 100% 100% 100% 100% 5.9% Gráfica e Editora Editora Ática S.A. Editora Scipione S.A. CAEP Ltda. Livemocha Inc. Anglo S.A. 100% 100% 54.69% 100% Sistema PH de Nice Participações Maxiprint Gráf. e Curso PH Ltd
Slide 7: Industry Turns over R$38bn per year and is Undergoing Constant Expansion
Industry Turns over R$38bn1 per year and is Undergoing Constant Expansion K-12 Education Segments Breakdown of Number of K-12 Students (mn students in 2009) 91% of the students in Brazil enrolled in K-12 education (% in 2009) Low penetration in the private market Private 5.1 5.8 14% 8.3 57.7 52.6 31
Slide 8: 2011 Highlights
2011 Highlights PUBLISHERS: ⁻ Innovation at the Publishers with the launch of new products: (i) the Ápis Book Collection for the Elementary School segment in August, and (ii) the American More Collection, the first partnership project with Cambridge University Press; ⁻ In September, the Publishers s
Slide 9: 2011 Highlights
2011 Highlights OWN SCHOOLS: ⁻ Successful enrollment campaign for Anglo courses, with the largest annual upturn in the number of students in the last 5 years (9% vs. 2010); ⁻ Exceptional results of pH in the entrance exams for the State University of Rio de Janeiro (UERJ), one of the largest in the
Slide 10: 2011 Highlights
2011 Highlights CAPITAL STRUCTURE ⁻ Conclusion, of the Initial Public Offering (IPO) of units worth R$371.1 million in July; the units appreciated by 4.25% through December 13, 2011. ⁻ Prepayment of debt totaling R$111.4 million in September, as foreseen in the IPO‟s use of Proceeds. ⁻ Also in Septe
Slide 11: Quarterly Consolidated Evolution – Corporate Law
Quarterly Consolidated Evolution – Corporate Law Consolidated Net Revenue (R$mm) Consolidated EBITDA (R$mm) 100.6 203.6 124.1 105.4 39.7 80.3 66.6 10.9 16.8 (17.0) (16.4) 1Q 2Q 3Q (28.4) 1Q 2Q 3Q 2010 2011 2010 2011 11
Slide 12: Net Revenue by Business
Net Revenue by Business Net Revenue - 3Q11 R$mm 6.7 23.7 6% 19% 52.5 Anglo 1.5 42% 1% Ática and Scipione ETB 39.8 PH 32% SER 12
Slide 13: 3Q11 Financial Results – Corporate Law
3Q11 Financial Results – Corporate Law Abril Educação - Income Statement (R$mm) 3Q11 3Q10 Change Net revenue 124.1 66.6 86% Gross profit (loss) 73.5 32.3 128% Margin (%) 59% 48% 11 p.p. Operating income (loss) 0.8 (23.9) n/a Margin (%) 1% -36% 37 p.p. EBITDA 10.9 (16.4) n/a Margin (%) 9% -25% 33 p.p
Slide 14: 9M11 Financial Results – Corporate Law
9M11 Financial Results – Corporate Law Abril Educação - Income Statement (R$mm) 9M11 9M10 Change Net revenue 407.9 188.8 116% Gross profit (loss) 261.9 96.7 171% Margin (%) 64% 51% 13 p.p. Operating income (loss) 54.0 (27.9) n/a Margin (%) 13% -15% 28 p.p. EBITDA 94.5 (5.0) n/a Margin (%) 23% -3% 26
Slide 15: Net Income
Non-cash impacts over results 17.4 22.3 R$mm EBT 4.9 9M11 EBT reported Amortization of surplus value of 9M11 EBT excluding surplus value intangible assets amortization 16.6 2.2 R$mm IT/SC -14.3 9M11 income tax/social contribution Deferred IT/SC related to the fiscal 9M11 IT/SC excluding deferred IT/
Slide 16: 9M11 Financial Results (pro forma)
9M11 Financial Results (pro forma) Abril Educação - Pro-forma Income Statement (R$mm) 9M11 9M10 Change Net Revenue 423.6 318.2 33% Gross profit (loss) 272.2 183.7 48% Margin (%) 64% 58% 6 p.p. Operating income (loss) 60.2 5.7 952% Margin (%) 14% 2% 12 p.p. EBITDA 102.0 42.6 139% Margin (%) 24% 13% 1
Slide 17: Consolidated Capital Structure
Consolidated Capital Structure Consolidated Debt Position – September 2011 Capital Structure evolution R$mm R$mm Capital Structure Trends R$mm 248.6 516.4 21% 434.1 47% 44% 912.9 79% 548.7 577.2 53% 56% DEC 10 JUN 11 SEP 11 Shareholders' Equity Net Debt Debt profile: 82% long-term 100% of debt i
Slide 18: Publishers
Publishers Operational evolution Financial evolution Books Sold – ‟000 units Net Revenues (R$mm) 199.1 +55% 128.1 16,453 +120% 7,476 9M10 9M11 EBITDA (R$mm) 29.9 15% 9M10 9M11 -7% (8.8) 9M10 Margin % 9M11 18
Slide 19: SER Learning System
SER Learning System Operational evolution Financial evolution Number of Students – „000 Net Revenues (R$mm) 25.0 +65% 15.1 115.6 +49% 77.6 9M10 9M11 EBITDA (R$mm) 3.1 12% 9M10 9M11 -74% (11.2) 9M10 9M11 Margin % 19
Slide 20: Grupo Anglo (pro forma)
Grupo Anglo (pro forma) Operational evolution Financial evolution Number of Students – „000 Net Revenues (R$mm) 143.1 +13% 257.0 126.7 +7% 240.0 9M10 9M11 EBITDA (R$mm) 74.9 +31% 9M10 9M11 57.0 52% 45% 9M10 Margin % 9M11 20
Slide 21: pH Schools (pro forma)
pH Schools (pro forma) Operational evolution Financial evolution Number of Students – ‟0001 Net Revenues (R$mm) 54.0 +12% 48.4 +1% 4.3 4.2 9M10 9M11 EBITDA (R$mm) 16.4 +21% 9M10 9M11 13.5 30% 28% 9M10 Margin % 9M11 Note: 1. Excludes the pre-university admission exam courses 21
Slide 22: Abril Educação – A unique investment opportunity!
Why Abril Educação? • We are the leaders in the primary, secondary and pre-university education segment in Brazil, the largest and with the fastest growth rate in the country, with annual revenues of about R$38bn; • Our strategy is based on a platform of high-quality products, content, services and
Slide 23: Thank You!
Thank You! 23