Yduqs Participacoes Sa · BMFBOVESPA:YDUQ3
Yduqs Participacoes Sa — Investor Presentation (September 2023)
22 slides from Yduqs Participacoes Sa's investor presentation, September 2023
Slide 1: Corporate presentation
Corporate presentation September 2023 Produced by MSCI ESG Research as of October, 2022 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, END
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$/month, 1Q23) immediately after graduation (%, 2022) 5,000 +121% 4,500 81.8% 183% 4,
Slide 5: … and employability
… and employability Unemployment rate (%, 1Q23) 12% -4 p.p. 10% 8% 6% 4% 2% 0% No High School High School Higher Education Sources: JP Morgan/IBGE. 5
Slide 6: There are 32.2 million Brazilians that could benefit from an investment in higher education
There are 32.2 million Brazilians that could benefit from an investment in higher education The “inventory” is huge… …it is growing… … and the solution is in the private sector Education level of the Brazilian population Graduates in Brazil Freshmen (In million, 2020) (In thousand, 2020) (%, 2021) G
Slide 7: Key messages
Key messages There are more than 32.2 million Brazilians that could triple their income by using our services. This number is growing We have reinvented our business, with intense digital ‘ transformation and gained full independence from government incentives Yduqs has delivered growth, high margin
Slide 8: We divide our services in three Business Units…
We divide our services in three Business Units… History Brief description Public Aprox ticket range 3-4 days a week on one of our 87 (R$/month) campi, complemented by lots of 52 years of tradition, digital content Classes B/C, mostly On-campus from public high- 300-1.200 our original service 1-2 day
Slide 9: …presenting a unique and highly compelling investment opportunity
…presenting a unique and highly compelling investment opportunity • Highest margins of the sector – most efficient On-campus • Highly recognized nationwide brand operation • Best positioned for the on-campus recovery • Relevant operational leverage • High Growth • Technology leader Digital • Maturin
Slide 10: 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 CAGR EBITDA % (R$ billion) 4.9 in 2022 4.4 4.6 0.3 1.2 48% 47% 3.6 3.9 1.1 3.4 3.6 0.4 0.7 Fies 1.0 0.7 0.5 1.4 1.6 25% 39% fading 1.3 0.2 0.3
Slide 11: After showing resilience through several crisis, the power of operating leverage is evident
After showing resilience through several crisis, the power of operating leverage is evident LTM Adjusted EBITDA 1.62 1.624 725 1.600 1.54 1.543 1.41 1.413 1.40 1.396 1.41 1.409 1.46 1.459 656 675 1.35 1.351 1.32 1.325 1.35 1.352 1.35 1.347 1.34 1.337 1.400 598 625 1.200 545 598 542 541 575 1.000 515
Slide 12: Medicine: high contracted growth, and well positioned to capture regulatory seats expansion
Medicine: high contracted growth, and well positioned to capture regulatory seats expansion Companies’ Share of Mais Médicos* Seats Medical students/seat (%) (thousand students) 6.7 6.7 6.3 5.1 5.9 5.2 42% 14% 13% 12% 11% 5% 1% 1% Player G YDUQ3 Player B Player F Player A Player E Player H Others YD
Slide 13: The most recent national graduation exams show that we evolved and are well positioned quality-wise
The most recent national graduation exams show that we evolved and are well positioned quality-wise 2017 2021 Player 1 22% 52% 26% Player 1 33% 51% 16% On-campus Player 2 37% 44% 19% YDUQS 37% 51% 12% Clear “change of Player 3 44% 41% 15% Player 2 45% 41% 14% league,” reaching #2 among the listed pl
Slide 14: ... and our digital platforms have transformed the way students learn and connect with us
... and our digital platforms have transformed the way students learn and connect with us The digital ecosystem permeates the Solutions to accelerate careers: market Excellence content, focusing on real cases and entire journey and is available to all preparation trails, intermediate certifications,
Slide 15: The incorporation of emerging technologies is part of our DNA, preserving the difference of our product
The incorporation of emerging technologies is part of our DNA, preserving the difference of our product We have Artificial Intelligence applied ...and also in the student's other in the teaching and learning journey... touchpoints with our institutions • Automatic correction of exams through • Segme
Slide 16: 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 17: The past five years have been very consistent…
The past five years have been very consistent… Net Revenue (R$ billion) CAGR: 8% Dividends and Share Buyback (1) (R$ million) 4.6 4.9 4.4 3.6 3.9 Share Buyback 250 Dividends Macro Scenario • End of FIES 2019 2020 2021 2022 2Q23 (LTM) 501 201 • Economic Crisis 153 153 142 80 38 • Covid 1 2018 2019 20
Slide 18: … generating a heathy cash flow stream
… generating a heathy cash flow stream Recurring Free Cash Flow (R$ million) 695 Covid + 580 514 505 188 2019 2020 2021 2022 2Q23 (LTM) 18
Slide 19: We have been delivering our promises
We have been delivering our promises What we promised (Adjusted EBITDA) What we delivered 3Q22 – From -1% to -5% vs 3Q21 ↓ +3% vs. 3Q21 4Q22 – From 10% to 20% vs 4Q21 ↑↑ +19% vs. 4Q21 1Q23 – From 10% to 20% vs 1Q22 ↑↑ +21% vs. 1Q22 2Q23 – From 10% to 20% vs 2Q22 ↑↑ +24% vs. 2Q22 3Q23 – From 10% to 2
Slide 20: 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 21: ESG Agenda
ESG Agenda Large social capital, extensive experience in high-impact actions and one of the best Produced by MSCI ESG ESG management systems in the country Research as of October, 2022 E Our digital learning platform allows us S Highly recognized for its commitment G Apractices, global benchmark for
Slide 22: IR Contact
IR Contact ri@yduqs.com.br www.yduqs.com.br 22
Yduqs Participações — Investor Presentation (September 2023) on 6ix