Yduqs Participacoes Sa · BMFBOVESPA:YDUQ3
Yduqs Participacoes Sa — Investor Presentation (June 2024)
28 slides from Yduqs Participacoes Sa's investor presentation, June 2024
Slide 1: Corporate Presentation
Corporate Presentation June 2024 Produced by MSCI ESG Research as of October, 2023 1 THE USE BY YDUQS Participações S.A. OF ANY MSCI ESG RESEARCH LLC OR ITS AFFILIATES (“MSCI”) DATA, AND THE USE OF MSCI LOGOS, TRADEMARKS, SERVICE MARKS OR INDEX NAMES HEREIN, DO NOT CONSTITUTE A SPONSORSHIP, ENDORSEM
Slide 2: Key messages
Key messages There are more than 32.2 million Brazilians that could triple their income by using our services. This number is growing We have reinvented our business, with intense digital transformation and gained full independence from government incentives Yduqs has delivered growth, high margins
Slide 3: Key messages
Key messages There are more than 32.2 million Brazilians that could triple their income by using our services. This ‘ number is growing We have reinvented our business, with intense digital transformation and gained full independence from government incentives Yduqs has delivered growth, high margin
Slide 4: Several sources demonstrate the impact of higher education on Brazilians’ income…
Several sources demonstrate the impact of higher education on Brazilians’ income… Increase in average salary – OECD Average salary – JPM/IBGE Increase in our students’ salary (%, Higher Education vs. High School) (R$/month, 3Q23) immediately after graduation (%, 2022) 6,000 +129% 81.8% 183% 5,000 17
Slide 5: … and employability
… and employability Unemployment rate (%, 3Q23) 12% 10% -4.1 p.p. 8% 6% 4% 2% 0% No High School High School Higher Education Sources: JP Morgan/IBGE. 5
Slide 6: There are 32.2 million Brazilians that could benefit from an investment in higher education
There are 32.2 million Brazilians that could benefit from an investment in higher education The “inventory” is huge… …it is growing… … and the solution is in the private sector Education level of the Brazilian population Graduates in Brazil Freshmen (In million, 2020) (In thousand, 2022) (%, 2022) G
Slide 7: Key messages
Key messages There are more than 32.2 million Brazilians that could triple their income by using our services. This number is growing We have reinvented our business, with intense digital ‘ transformation and gained full independence from government incentives Yduqs has delivered growth, high margin
Slide 8: Company Profile
Company Profile One of the largest players in the Higher Education Sector in Brazil Focus Multi-brand National on Higher Education strategy Presence +100 +1 Campi Students million +17Employees k +8 +1.5 +2.0 On-campus k k k Medicine Medicine students Cities DL centers IBMEC DL centers (All States) 8
Slide 9: Robust Brand Portfolio
Robust Brand Portfolio Brazil’s biggest Training Undergraduate Solvers of All Classes and Graduate brand in education the future Consolidated Integrated into the All Models and aggregated Medicine Local force ecosystem in Brazil From Oiapoque to Chuí Businesses Throughout New Reference in Startup to
Slide 10: We divide our services in three Business Units
We divide our services in three Business Units History Brief description Public 3-4 days a week on one of our 87 campi, complemented by lots of digital content 52 years of tradition, Classes B/C, mostly from public On-campus high-schools our original service 1-2 days a week on one of our campi with
Slide 11: We present products for different types of routine and with a high range of price points
We present products for different types of routine and with a high range of price points for the student’s entire life Aprox ticket range (R$/month) Free courses R$39 R$349 R$499 R$1.1k R$1.5k +840 Not Regulated COURSES R$129 R$399 DL/FLEX R$299 R$449 Semi On-campus Undergraduate Live courses R$299
Slide 12: Over the past years we have transformed into a digital institution, independent from the Government
Over the past 6 years we have transformed into a digital institution, independent from the Government Higher margin businesses have grown faster Net Revenue (R$ billion) CAGR EBITDA % 5.3 in 2023 5.1 4.4 4.6 44% 1.3 1.3 42% 3.9 0.3 3.4 3.6 3.6 1.1 0.4 0.7 Fies 0.7 1.0 0.5 1.7 1.8 23% 40% fading 1.3
Slide 13: Medicine: exceptional results in perfect alignment with Public Policies
Medicine: exceptional results in perfect alignment with Public Policies Student Base (in thousands) 16% 68% CAGR 8.9 Approval Rate for Additional Seats at 3.6 MATURED SEATS MAIS MÉDICOS I 2018 2024 1 YDUQS Adjusted EBITDA Margin Other players 72% Adjusted EBITDA without YDUQS (R$ million) (in %) 37%
Slide 14: Leap in teaching quality
Leap in teaching quality General CPC | Participating Student base YDUQS 2022 2018 Player A 0.9% 94.2% 4.9% Player A 53.3% 46.7% 10.6% 12.5% 11.4% 22.8% YDUQS YDUQS 3.9% 84.7% 11.4% Player E 33.4% 66.6% Player B 5.9% 73.2% 20.9% Player C 0.5% 35.3% 64.3% Player C 6.4% 75.3% 18.3% Player F 0.5% 85.6%
Slide 15: We are the best positioned to create value by accelerating the adoption of innovation and AI
We are the best positioned to create value by accelerating the adoption of innovation and AI WHERE WE ARE GOING Workability at Scale Journey personalization 360° View 8 of the Student WHERE WE ARE Experience and Results 7 Academic with AI Robust Excellence Intelligence Infrastructure Complete Teachi
Slide 16: We are the best positioned to create value by accelerating the adoption of innovation and AI
We are the best positioned to create value by accelerating the adoption of innovation and AI Robust Infrastructure Complete Excellence and Integrated Digital Teaching Data Ecosystem Model • Stack designed to scale • Digital ecosystem integrating • Pedagogical model focused new technologies with the
Slide 17: We are the best positioned to create value by accelerating the adoption of innovation and AI
We are the best positioned to create value by accelerating the adoption of innovation and AI Academic Experience Intelligence and Results at Scale with AI • Academic intelligence powered by • 30+ solutions expanding AI across data and AI to measure learning the business • Assessment of the Real Prof
Slide 18: Key messages
Key messages There are more than 32.2 million Brazilians that could triple their income by using our services. This number is growing We have reinvented our business, with intense digital transformation and gained full independence from government incentives Yduqs has delivered growth, high margins
Slide 19: We have a history of growth, margin and payment of dividends…
We have a history of growth, margin and payment of dividends… Net Revenue Dividends and Share Buyback 2 (R$ billion) CAGR (R$ million) +8% 5.1 5.3 4.4 4.6 4.1 3.6 250 Macro Scenario 501 • End of FIES 201 2019 2020 2021 2022 2023 2024 LTM¹ 153 153 142 80 80 38 • Economic Crisis 2018 2019 2020 2021 20
Slide 20: … and a heathy cash flow stream generation
… and a heathy cash flow stream generation Recurring Free Cash Flow (R$ million) 736 718 Covid + 580 514 505 188 2019 2020 2021 2022 2023 2024 LTM Note: 2024 LTM considers the interval between April/23 and march/24. 20
Slide 21: All businesses significantly support the recovery in Net Income
All businesses significantly support the recovery in Net Income LTM Adjusted EBITDA 2.000 1.68 1.71 1.75 875 1.62 1.800 1.46 1.54 1.41 1.40 1.41 775 1.35 1.600 1.35 1.32 1.35 1.34 691 695 679 656 1.400 675 1.200 598 598 579 545 542 541 538 555 515 503 517 518 520 1.000 507 575 450 454 800 443 422 52
Slide 22: Key messages
Key messages There are more than 32.2 million Brazilians that could triple their income by using our services. This number is growing We have reinvented our business, with intense digital transformation and gained full independence from government incentives Yduqs has delivered growth, high margins
Slide 23: Strategic Horizon
Strategic Horizon We are market Leaders Our cash generation will surprise you Triggers will be ours The industry is at a time of Very strong Our cash generation gives us many opportunity relative positioning degrees of freedom Margin at a new level as a mix, and operating Market: 32 M people can inc
Slide 24: Our net income will grow more than 250% in the coming years
Our net income will grow more than 250% in the coming years Adjusted EPS Evolution (1) (R$) Revenue and Adjusted 1.2 1.6 – 1.9 2-3 2.5 – 3.5 3-4 EBIDTA CAGR Mid to High Single Digit 2023 2024 2025 2026 2027 2028 2029 (1) Adjusted EPS = Adjusted net income divided by the total number of shares ex tre
Slide 25: Cash generation and capital allocation framework
We are focused on transforming this … And we will allocate our capital through result into Cash Generation of up to a clear and transparent framework R$ 10 Billion in 5 years … 8 - 10 Debt Cash Generation (1) 2025-29 (R$ billion) Dividends Acquisitions (1) Accumulated operating cash flow (OCF) = EBI
Slide 26: Key messages
Key messages There are more than 32.2 million Brazilians that could triple their income by using our services. This number is growing We have reinvented our business, with intense digital transformation and gained full independence from government incentives Yduqs has delivered growth, high margins
Slide 27: ESG Agenda
ESG Agenda Large social capital, extensive experience in high-impact actions and one of the best ESG management systems in the country Produced by MSCI ESG E Our digital learning platform allows us S Highly recognized for its commitment G Apractices, global benchmark for governance to promote a sign
Slide 28: IR Contact
IR Contact ri@yduqs.com.br www.yduqs.com.br 28
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