Cogna Educacao S.a. · BMFBOVESPA:COGN3
Cogna Educacao — Q1 2020 Earnings Presentation
22 slides from Cogna Educacao's earnings presentation, May 15, 2020
Slide 1: 1Q20 Results
EDUCAGAO 1Q20 Results May 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: Reaction Plan to COVID-19
Reaction Plan to COVID-19 Initiative structured on seven pillars: 1 2 3 4 5 6 7 Health Services Financial Operations Organization Strategy Society Guarantee the Guarantee the Implement Guarantee the Implement Strategic plan for Actions that continuity of restructuring health of our financial measure
Slide 5: 1H20 Enrollment: 8% growth, driven by DL
1H20 Enrollment: 8% growth, driven by DL Enrollments by Format Enrollments by Channel 1Q20 1Q19 % Chg. 1Q20 1Q19 % Chg. On-Campus 87,300 112,967 -22.7% Own Units (Campuses) 162,924 143,547 13.5% Distance Learning 254,578 202,626 25.6% Third Party Units (DL Centers) 178,954 172,046 4.0% Total 341,878
Slide 6: Guarantee the continuity of educational services with no impacts to students
2 Guarantee the continuity of educational services with no impacts to students Monitoring of the digital platform coverage and student engagement and satisfaction indicators POSTSECONDARY EDUCATION PRIMARY & SECONDARY EDUCATION • 100% of Saber and Vasta students on-board Coverage 100% of on-campus s
Slide 7: Guarantee financial health, liquidity and cash position
3 Guarantee financial health, liquidity and cash position Solid cash position and leverage Elongated debt amortization schedule -7,978 2.882 Short -5,368 -4,969 1.270 Term 2.250 2.182 6.708 Long 142 257 Term 2.926 400 250 -316 37 2020 2021 2022 2023 2024 2025 Loans and Other ST Cash and Cash ST Acco
Slide 8: Payments in April and May with a reduced impact
3 Payments in April and May with a reduced impact Receipt of active students - On-Campus Receipt of active students - DL 19.1 19.2 20.1 19.1 19.2 20.1 19.1 19.2 20.1 19.1 19.2 20.1 April May April May On-time Late On-time Late • On-time payments were practically not impacted • On-time and Late payme
Slide 9: Implement emergency restructuring measures seeking to preserve as many jobs as possible
Implement emergency restructuring measures seeking 4 to preserve as many jobs as possible Impact of measures being partially felt as of 2Q20 • Anticipation of holidays, freezing of open positions and salary increases • Application of temporary flexibilization measures regarding labor laws (MP 936) C
Slide 10: Operating Results
Operating Results
Slide 11: A New Release
A New Release • The new release allows for the analysis of the performance of the 4 companies that comprise Cogna • The aim is to allow a better understanding of the challenges and opportunities in each business vertical Greater disclosure in the presentation of results • Individual operational resu
Slide 12: Kroton and Platos Results
Kroton and Platos Results R$ million Kroton Net Revenue EBITDA1 • Decrease in revenue due to the -23.1% -49.7% reduction in the FIES base and 40.5% 1,245.4 26.5% COVID-19 impacts 504.4 17.3% • EBITDA impacted by the decrease in 882.7 957.7 153.0 253.5 revenue. Costs of the semester were 2 2 already
Slide 13: Vasta and Saber Results
Vasta and Saber Results R$ million Vasta Net Revenue EBITDA1 • 24% growth in revenue supported by +24.0% +26.0% the 25% increase in ACV 46.6% 402.5 36.6% 37.2% • Upturn of 26% in EBITDA, with 324.5 324.5 margin gain of 60 bps 151.1 118.8 149.7 2 2 1Q19 1Q19 PF 1Q20 1Q19 1Q19 PF 1Q20 EBITDA Margin Sa
Slide 14: Others and Cogna Results
Others and Cogna Results R$ million Others Net Revenue EBITDA1 • Comparison between segments is +190.0% -16.7% not appropriate, due to the 63.9% 51.7% 87.7% 179.9% seasonality of the businesses, 131.1 especially PNLD 114.9 55.6 55.6 46.3 35.6 28.8 83.4 2 3 2 3 1Q19 1Q19 PF 1Q20 1Q20 PF 1Q19 1Q19 PF
Slide 15: Financial Performance
Financial Performance
Slide 16: Accounts Receivable, Coverage Ratio and ART
Accounts Receivable, Coverage Ratio and ART Cogna Kroton Platos Vasta Saber Outros Accounts Receivable and PDA 16,7% 24,1% 11,6% 9,5% 19,4% 24,4% 14,0% 15,6% 39,1% 45,4% 40,2% 35,0% 66 (R$ million) 76 493 478 182 4.669 49 5.550 56 18 57 46 16 28 4.651 3.941 2.229 2.121 9 10 1.628 1.542 76 58 436 433
Slide 17: Accounts Receivable, Coverage Ratio and ART
Accounts Receivable, Coverage Ratio and ART Kroton Accounts Receivable and PDA Average Receivables Term (R$ million) (Days) 64.0% 49.6% 50.1% 31.6% 3,130 24.8% 23.1% 2,308 1,568 1,146 1,333 744 1,093 541 206 271 422 495 1,162 1,562 125 132 821 912 35 416 74 102 115 107 1Q19 1Q20 1Q19 1Q20 1Q19 1Q20
Slide 18: PDA Coverage – PEP
PDA Coverage – PEP NR Graduates / Total Loss Expectation Graduates 50.0% 45.3% % PEP PDA Increase of 2.5pp in PEP PDA due 20.0% 22.8% to the COVID-19 scenario Initial Estimate Actual Initial Estimate Actual 49.3% 2.5% Loss Expectation NR Dropouts / Total 50.0% 46.8% Dropouts 50.0% 54.7% Initial Esti
Slide 19: Capex, Investments in Expansion and Operating Cash Generation
Capex, Investments in Expansion and Operating Cash Generation Capex and Investments in Expansion OCG After Capex and Investments in Expansion R$ million and % NR R$ million -21% 1Q19 1Q20 1Q20 PF 8.3% 7.3% 45.1 27.2 106.7 92.0 -147 1Q19 1Q20 -275 -293 Capex Investments in Expansion In 1Q20, the sum
Slide 20: Closing Remarks
Closing Remarks
Slide 21: Closing Remarks
Closing Remarks • Systems and teams are prepared to guarantee the turn of the semester even if the quarantine persists Kroton 2H20 • 2020.2 enrollment already begun in a digital format (100% online admissions process) Enrollments • Acceleration of the migration to hybrid models supported by the digi
Slide 22: Investor Relations
Bruno Giardino bruno.giardino@kroton.com.br Pedro Gomes pedro.gsouza@kroton.com.br Investor Relations Ana Troster ir.cogna.com.br ana.mtroster@kroton.com.br