Cogna Educacao S.a. · BMFBOVESPA:COGN3

Cogna Educacao — Q2 2022 Earnings Presentation

22 slides from Cogna Educacao's earnings presentation, Aug 15, 2022

  1. Slide 1: 2Q22 Quarterly results

    EDUCACAO 2Q22 Quartely results

  2. Slide 2: Disclaimer

    Disclaimer O This 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 not be disclosed to an

  3. Slide 3: Message from CEO

    Mensage from CEO Another quarter that reinforces that we are Net revenue growth of 34.5% in the quarter; Long-term value creation continues to be getting closer to the revenue´s inflection point; delivered for the 5th consecutive quarter; Vasta is moving towards achieving the ACV Recurrent EBITDA ma

  4. Slide 4: Kroton - Higher Education

    Kroton Higher Education

  5. Slide 5: Student base and Dropout

    Student base and Dropout Undergraduate student base (# thousand) Kroton follows its journey of student growth in both +12.0% Total segments, with greater concentration on Low On-site 929 829 Attendance, in line with scalability and profitability +13.9% Low On-site strategy; 519 592 Attendance The ex

  6. Slide 6: Net Revenue

    Net Revenue Net Revenue (R$ million) Trimestre Semestre -3.4% -4.1% 960 927 The 3.4% lower net revenue in 2Q22 compared with 2Q21 follows a consistent trend of decrease in revenue year 1,698 1,629 on year, for the 5th consecutive quarter. 2Q21 2T21 2Q22 2T22 1S21 1S22 Net Revenue Evolution (%) -4.9%

  7. Slide 7: Average Ticket (AT)

    Average Ticket (AT) In view of a highly competitive market with offers and discounts reducing freshman prices, Kroton believes that the most appropriate strategy is to maximize revenue and take advantage of the low variable cost offered by course digitalization and the scale of its operations. Volum

  8. Slide 8: Recurring EBITDA

    Recurring EBTIDA Costs and expenses as a percentagem of Net Revenue Despite the increase in total costs, we see recurring EBITDA growth Salling and Marketing 100% 100% resulting from lower comps due to the isolation measures implemented at Expenses 8.6% 7.9% the time. 13.1% -0,7pp PDA 19.6% -6,5pp 2

  9. Slide 9: KrotonMed

    KrotonMed Financial Operational R$ 267 million 556 medical seats 1S22 Net Revenue Operating in 1S22 With growth of 32.3% versus 1Q22, Kronton Med Kroton Med totalled 556 undergraduate medical seats in 2022 year to date. ended 1H22 with 55.5% of the guidance for the year (BRL 482 million). R$ 121 mil

  10. Slide 10: Vasta - K-12 Education

    Vasta K-12 Education

  11. Slide 11: Operational Highlights

    Operational Highlights Partner Schools – Core Content (‘000) We ended 2Q22 with growth in the student base in core content. CAGR: 13.3% Vasta reached 1.5 million students in 5,4 thousand partner schools in the 2022 cycle. 5.4 4.2 4.5 For complementary solutions, 187 new schools, with 92 thousand new

  12. Slide 12: Financial Highlights: Net Revenue

    Financial Highlights: Net Revenue Net Revenue (R$ million) Quarter Cycle 34.5% of Net Revenue growth in the quarter. 34.5% 26.5% 969 190 141 765 The Net Revenue result reinforces the ACV conversion potential. Until the second quarter of 2022, +85% ACV was converted in revenue. 2Q21 2T21 2Q22 2T22 21

  13. Slide 13: ACV 2022: Subscription Revenue converging to 100% of ACV

    2022 ACV 2022: Subscription Revenue gradually converging to 100% of ACV ACV Recognition(1) 35% 68% 85% 100% Net Revenue 4Q20 4Q21 % Y/Y 1Q21 1Q22 % Y/Y 2Q21 2Q22 % Y/Y 3Q21 3Q22 Subscription (ACV) 284 347 +22% 243 334 +37% 117 174 49% 96 Non-subscription 60 51 -14% 37 47 +25% 24 16 -33% 31 Total 344

  14. Slide 14: Financial Highlight: Recurring EBITDA

    Financial Highlight: Recurring EBITDA (%) Net Revenue In the 2022 cycle, there was a lower incidence of costs Corporate Expenses and 100% 100% compared to net revenue, which represented 36.5% of net Others -2,6pp 7.8% 5.2% revenue compared to 38.9% in the previous year's cycle. 14.5% -2,9pp Salling

  15. Slide 15: Saber

    Saber PNLD, Red Ballon, SETs and Other Business

  16. Slide 16: Financial Highlights

    Financial Highlights Net Revenue (R$ million) Quarter Semester -19.2% -7.6% Saber recorded revenue reduction in the quarter, mainly due to the seasonality of the PNLD (National Textbook Program) segment; 53 43 156 144 2Q21 2T21 2Q22 2T22 1S21 1S22 Recurring EBITDA and Margin (R$ million) Quarter Sem

  17. Slide 17: Cogna

    Cogna

  18. Slide 18: Net Revenue and Recurring EBITDA

    Net Revenue and Recurring EBITDA Net Revenue (R$ million) Quarter Semester We ended the first half of 2022 with even more clarity 0,2% 3,3% that the actions carried out over the last two years 2,258 2,332 generated recurring efficiencies in the company's 1,153 1,155 main transactions (Kroton and Vas

  19. Slide 19: Operating Cash Generation post-CAPEX

    Operating Cash Generation post-CAPEX Quarter (R$ million) 309,5% 113 Due to the anticipation of the credit cards in 1Q21, the analysis between semesters is the most appropriate. 27 2Q21 2T21 2Q22 2T22 Semester (R$ million) 38.4% 30.7% Post-Capex operating cash generation (OCG) of R$ 290.8 47,6% mill

  20. Slide 20: Financial Highlights: cash and debt

    Financial Highlights: cash and debt Leverage (Net Debt/ Adjusted EBITDA) Maintenance of the leverage ratio below the 3.00 covenants limit and with a safe margin (2.09x 2.13 2.07 2.16 2.15 2.09 versus 3.00x) 1,427 1,442 1,435 1,472 1,503 Solid cash position (R$3.7 billion) allows us to 415 415 1,012

  21. Slide 21: Final Considerations

    Final Considerations Revenue growth expectation for the Reduction of delinquency and focus on Recurring EBITDA growth of 4.1% in 2nd Semester of 2022 or 2023 cash generation. 1S22, with margin reaching 36.8% Resumption of the sector and Educbank Investment is Recurring EBITDA increase and Revenue gr

  22. Slide 22: Contato RI

    Contato RI: dri@cogna.com.br https://ri.cogna.com.br/ 23

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