Slide 1: 1Q23 Presentation of Results
1Q23 Presentation of Results 1 May 12, 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 the CEO
Message from the CEO Excellence in all indicators. Best quarter of results Net Revenue grows 16.6% in Cycle 2023 Another quarter of strong growth in revenue and in the last 4 years; vs. 2022 and represents 65% of ACV operating income; guidance of R$1,230 million, in line with Third consecutive quart
Slide 4: Kroton - Higher Education
Kroton Higher Education 4
Slide 5: Intake Cycle
Intake Cycle Number of students (Thousand) Intake Revenue (Change vs. 1H22) +4.2% 470 451 -1.6% +8.0% 140 High On-Site Attendance 142 +2,8% 308 330 +7.0% +0.2% Low On-Site Attendance 1H22 1S22 1H23 1S23 HOA LOA Total Freshman (1) Freshman (1) Category Volume Revenue Ticket Category Volume Receita Ti
Slide 6: Student base and Dropout
Student base and Dropout Number of undergraduate students (No. in Thousands) 9.7% Kroton undergraduate student base 1,128 continues to grow for the 7th consecutive 1,029 +11.6% High On-Site Attendance 416 quarter YoY, reaching a level above 1 million 373 students: 712 +8.6% 656 Low On-Site Attendanc
Slide 7: Net Revenue
Net Revenue Net Revenue (R$ million) Quarter 820 806 Kroton's Net Revenue grew 14.9% in 1Q23 over 800 +14.9% 1Q22: 780 760 740 720 702 700 680 660 i. Compound effect of Growing intake and 640 re-enrollment cohorts 1T22 1Q22 1T23 1Q23 ii. Greater efficiency of discounts Evolution of Net Revenue (%) 2
Slide 8: Costs and Expenses
Costs and Expenses Costs and Expenses¹ - Quarter (R$ million) NOR % 1Q22 1Q23 D +9.4% 21.5% 19.4% - 2,1pp 600 544 Total costs 498 500 Corporate 4.0% 3.1% - 0,9pp 157 expenses 400 151 25 28 Operating 23.5% 23.8% + 0,3pp 300 expenses 192 165 200 Selling and marketing 8.9% 9.8% +0.9 p.p. expenses 100 6
Slide 9: Recurring EBITDA
Recurring EBITDA Recurring EBITDA and EBITDA Margin – Quarter (R$ million) 400,0 36,4% 37,0% Recurring EBITDA grew 23.3% in 1Q23, driven by the 2.5 p.p. margin gain and 14.9% 350,0 35,0% 300,0 33,9% +23.3% 293 growth in Net Revenue; 250,0 238 33,0% 200,0 31,0% 150,0 29,0% 100,0 27,0% 50,0 0,0 25,0%
Slide 10: Productivity Increase by Campuses
Productivity Increase by Campuses Productivity by Kroton Campus Rationalization of Campi, started in 2020, enabling a 23.2% increase in the number of Number of students High Attendance (HOA) by Campus (#) HOA/Kroton Campus students¹; +23.2% High success rate in the migration of students from closed
Slide 11: Average Collection Period (ACP) and Coverage Ratio (CR)
Average Collection Period (ACP) and Coverage Ratio (CR) Average accounts receivables (Out of Pocket) Reduction of 3 days in the Average -27 days 76 Collection Period (ACP) comparing 1Q23 to 72 - 3 days 1Q22, reflecting better average student 62 55 60 54 profile and adoption of stricter policies in 4
Slide 12: KrotonMed
KrotonMed Net Revenue – Quarter Growth of 35.7% in Net Revenue and 8.5 p.p. in (R$ million) Recurring EBITDA Margin make Recurring EBITDA +35.7% 156 grow 62.2% in 1Q23 115 These good results reflect: • Operating improvement: i. Decrease in commercial discounts; 1T22 1Q22 1T23 1Q23 ii. Maturation of
Slide 13: Vasta - K-12 Education
Vasta K-12 Education 13
Slide 14: Net Revenue
Net Revenue Net Revenue (R$ '000) Quarter Cycle-to-date Net Revenue grew 16.6% in the 2023 +5.8% 403 +16.6% 908 Cycle versus 2022 and reached 381 779 R$ 908 million; 1T22 1Q22 1T23 1Q23 Ciclo 2022 2022 Cycle Ciclo 2023 2023 Cycle In the quarter, Net Revenue is 5.8% higher than 1Q22; Revenue from Sub
Slide 15: Costs and Expenses
Costs and Expenses Cost increase in 1Q23 versus 1Q22 due to In the comparison between cycles, the provision of 100% of the AR of a the increase in paper and printing costs; retailer in Judicial Recovey and the increase in the cost of paper and printing, impacting the margin for the year, but without
Slide 16: Recurring EBITDA
Recurring EBITDA Recurring EBITDA and EBITDA Margin - Quarter (R$ million) 400 70,0% 350 300 34,7% 31,0% 50,0% 1Q23 Recurring EBITDA decreases by 5.3%, 250 30,0% -5.3% 132 200 125 10,0% 150 -10,0% driven by the price readjustment of paper and printing; 100 50 -30,0% - -50,0% 1T22 1Q22 1T23 1Q23 Recu
Slide 17: Saber - NBTP, Red Balloon, SETs and Other Businesses
Saber NBTP, Red Balloon, SETs and Other Businesses 17
Slide 18: Financial Highlights
Financial Highlights Net Revenue (R$ million) Saber’s Net Revenue grew 30.8% in 1Q23, due Quarter to the good performance of all Saber operations +30, 8% and the longer NBTP purchasing cycle; 132 140 120 101 100 80 60 40 20 - 1T22 1Q22 1T23 1Q23 Recurring EBTIDA and EBTIDA Margin (R$ million) Saber’
Slide 19: Cogna
Cogna 19
Slide 20: Net Revenue and Recurring EBITDA
Net Revenue and Recurring EBITDA (%) Net Revenue (R$ million) Quarter +13.0% Growth of 13.0% in Net Revenue in 1Q23, driven by growth in the 3 1,330 1.750 1.700 1.650 business units; 1.600 1.550 1,177 1.500 1.450 1.400 1.350 1Q22 1T22 1Q23 1T23 Growth of 12.6% in Recurring EBITDA Recurring EBITDA an
Slide 21: Leverage and Indebtedness
Leverage and Indebtedness Leverage EBITDA EBITDAAjustado Adj. Dívida Líquida Net Debts (Net debt/Adjusted EBITDA) Dívida Líquida/EBITDA Net Debt/EBITDA Adj. Covenants Covenants Leverage reduced to 2.03x, with healthy 3.00x covenant distance to 3.00x, with 2,15x 2,09x 2,15x 2.10x 2,03x consistent Adj
Slide 22: Post-Capex Operating Cash Generation (OCG)
Post-Capex Operating Cash Generation (OCG) Post-Capex Operating Cash Generation (OCG) grew 27.4% in 1Q23, reaching R$ 227.0 million; Quarter (R$ million) 50.2% The conversion of Recurring EBITDA into OCG is 44.4% 50.2% in 1Q23, accounting for a growth of 5.8 p.p. 250 +27.4% 227 versus 1Q22 200 178 G
Slide 23: Cash and Indebtedness Position
Cash and Indebtedness Position Relevant liability management actions in 1Q23: Breakdown of net debt (R$ million) 1. Raising of R$ 500 million at CDI + 2.15% and 36- months term; 4,820 1,503 4,615 205 2. Debentures repurchase of R$ 1,042 million 3,317 traded below par, that would expire on Aug/23 (ga
Slide 24: Final considerations
Final considerations The 4th consecutive cycle of growing Operating leverage and improvement in Rationalization of Campi conducted revenue and volume, together with the quality of Revenue more than offset effectively, increasing efficiency and stable dropout, allows for student and the increase in m
Slide 25: IR Contact
IR Contact: dri@cogna.com.br https://ri.cogna.com.br/ 25