Slide 1: 3Q20 Results
EDUCAGAO 3Q20 Results November 2020
Slide 2: Disclaimer
Disclaimer The following material is a presentation of general information on Cogna Educação S.A. ("Cogna"). The information herein is summarized and does not purport to be complete, and should not be construed by potential investors as a recommendation. This presentation is strictly confidential an
Slide 3: Opening Remarks
Opening Remarks
Slide 4: Overview of 9M20 performance
Overview of 9M20 performance • Recurring EBITDA growth in 9M20 in all the group’s companies, except undergraduate education • Operating cash generation after capex of R$183 million in 3Q20, representing 80% of recurring EBITDA conversion • Maintenance of a solid cash position (R$3.7 billion by the e
Slide 5: Kroton – 9M20 Performance Analysis
Kroton – 9M20 Performance Analysis • 9M20 results impacted by revenue loss and higher provisions, owing to the graduation of FIES students and the Covid-19 effect • Efficiency gains and savings of R$ 318 million in costs, G&A expenses and corporate expenses • Revenue, despite lower, is more solid an
Slide 6: Kroton – 2S20 Intake Results
Kroton – 2S20 Intake Results • Student intake fell only 2% in the comparison with the 2S19, with the recovery on the growth of digital courses (+32%) being offset by a relevant drop in the on-site intake • Drivers for the drop in the on-site intake: • Drop in the demand for on-site education, driven
Slide 7: Vasta – Strong ACV Growth
Vasta – Strong ACV Growth • Subscription revenue of R$ 692 million in the 2020 commercial year (4Q19-3Q20), just 3% short of the guidance of annual contract value (ACV) announced in the beginning of the year • To date, Vasta has signed a total of R$ 835 million in contracts to the 2021 school year (
Slide 8: Operating Results
Operating Results
Slide 9: Kroton and Platos Results
Kroton and Platos Results R$ million Kroton Net Revenue Recurring EBITDA1 • Revenue impacted by reduction in student -31,5% -70,2% base and lower average ticket, partially 39,3% compensated by increase in the digital student 17,1% base 1.113,2 762,2 437,6 130,4 • EBITDA impacted by the revenue loss
Slide 10: Vasta and Saber Results
Vasta and Saber Results R$ million Vasta Net Revenue Recurring EBITDA1 • Revenue growth driven by the recovery of non- +2,6% subscription sales with the return of activities 6,1% 7,5% 7,5% • Subscription revenue 8% lower, due to the anticipation 137,9 137,9 141,4 141,4 0,6% of the recognition revenu
Slide 11: Others and Cogna Results
Others and Cogna Results R$ million Other Businesses Net Revenue Recurring EBITDA1 • Revenue and EBITDA favored by the sales to -37,7% -28,8% the 2021 PNLD 70,0 • 289,6 49,8 Decline in the proforma view reflects the higher level of sales of 2020 PNLD 180,3 62,6 -37,2 2 2 3Q19 3Q19 PF 3Q20 3Q19 3Q19
Slide 12: Financial Performance
Financial Performance
Slide 13: Accounts Receivable, Coverage Ratio and ART
Accounts Receivable, Coverage Ratio and ART Cogna Kroton Platos Vasta Saber Outros Accounts Receivable and PDA 38,7% 54,5% 50,1% 19,5% 29,9% 13,9% 24,0% 23,6% 10,1% 27,9% 21,3% 37,2% 4.455 4.814 87 (R$ million) 80 5.433 71 72 26 268 129 4.888 1.723 2.624 14 10 19 185 27 100 28 1.819 2.724 44 28 2.73
Slide 14: Kroton – Considerable improvement in accounts receivable, coverage and receivables term
Kroton – Considerable improvement in accounts receivable, coverage and receivables term of out-of-pocket students In 12 months, we brought the accounts receivable of Kroton out-of-pocket students to a new level: • Net accounts receivable fell 28% (from R$ 1,05 billion to R$ 0,75 billion), while cove
Slide 15: Conversão de caixa de 80% no 3T20
Conversão de caixa de 80% no 3T20 • Operating cash flow after capex and investments in expansion was R$ 183 million, a significant increase in relation to the previous year, despite the decline in the operating result • In 9M20, this line totaled R$ 181 million, versus a consumption of R$ 101 millio
Slide 16: Solid cash position and leverage under control
Solid cash position and leverage under control • Solid cash position: R$ 5.3 billion in cash by the end of September • Leverage under control: net debt/EBITDA at 2.2x by the end of September – we are on-track to deliver the commitment of not breaching debentures’ covenants in 2020 – and maintaining
Slide 17: Closing Remarks
Closing Remarks
Slide 18: Closing Remarks
Closing Remarks • R$ 368 million contract signed for the 2021 PNLD, referring to the replacement of books from previous editions Other Businesses • Choice of books to the high school was postponed to 2021. Saber had 100% of approval in the titles available to the choice of Object I (Integrating Proj
Slide 19: Investor Relations
Bruno Giardino bruno.giardino@kroton.com.br Pedro Gomes pedro.gsouza@kroton.com.br Investor Relations ir.cogna.com.br