Cogna Educacao S.a. · BMFBOVESPA:COGN3
Cogna Educacao — Q1 2021 Earnings Presentation
25 slides from Cogna Educacao's earnings presentation, May 15, 2021
Slide 1: 1Q21 Results
1Q21 Results \ \ May 2021 -
Slide 2: Disclaimer
\ Uj Disclaimer The material that follows is a presentation of general information from Cogna Educagao S.A (“Cogna”). These are summarized information without the intention of being complete, which should not be considered by potential investors as a recommendation. This presentation is strictly con
Slide 3: Starting on a new value generation pathway
Yy Y arting on a new value generation pathway g Yj; Starting 2021 I ti th Kroton’s restructuring process showed its first results, with 9.3 p.p. of expansion in recurring EBITDA margin, even with a drop in revenue The average collection period (ACP) for out-of-pocket students at Kroton ended the qua
Slide 4: Positive Operating Cash Flow Generation in 1Q21
GY, YY 7 Positive Operating Cash Flow Generation in 1Q21 * Post-Capex operating cash flow generation (OCG) was positive in R$ 170 million, despite the drop in EBITDA. If adjusted for the prepayment of credit card receivables, OCG would have been R$ 62 million, still substantially higher than the con
Slide 5: Leverage under control and close to an inflection point
“/, Leverage under control and close to an inflection point + Renegotiation of the debentures’ covenants was successfully concluded. On May 5, Cogna obtained a waiver that includes in the calculation of adjusted EBITDA for the last 12 months, the extraordinary adjustment of the RS 644 million comple
Slide 6: Kroton
cu Kroton May 2021 \ \ \
Slide 7: Kroton's Restructuring - Leaving 2020 behind
Kroton’s Restructuring - Leaving 2020 behind * 1Q21 results make it clear that we have put Kroton back on a path of profitability and reduction in defaults * Even with a drop in revenue, recurring EBITDA grew 18% in 1Q21, with an expansion of 9.3 p.p. at the margin Kroton - Variation in Recurring EB
Slide 8: Restructuring Expenses and P&L/Cash Impacts
• • P&L Impacts Cash Impacts Restructuring Expenses (R$ Million) 4Q20 1Q21 2Q-4Q21E Total 4Q20 1Q21 2Q-4Q21E Total Executive Summary Total Total Opex with cash effect 131 47 38 217 62 21 134 217 Investments (R$ million) 268 Write-offs 187 35 22 245 - - - - Total Opex 319 82 60 461 62 21 134 217 Payb
Slide 9: Kroton — Accounts receivable
Kroton — Accounts receivable Average Collection Period (ACP) for out-of-pocket students of 67 days in 1Q21, 7 days less than in 4Q20, consolidating itself as one of the smallest in the industry The reduction reflects the reduction in defaults and demonstrates that the improvement in the provisioning
Slide 10: Enrollments 2021.1
Enrollments 2021.1 Total enrollment in the first semester 2021.1 grew by 5% in student volume Highlight for the Digital segment (100% Digital), which grew 42% in volume and 43% in revenue Hybrid segment (Sermni-presential and EAD Premium) grew 15% in revenue, driven mainly by Premium DL, whose reven
Slide 11: Kroton — Operating Results
Gy Y Kroton — Operating Results + Revenue decline due to the effects of the pandemic on-campus education and a reduction in the FIES base * 18% growth in recurring EBITDA, due to lower occupancy expenses (arising from restructuring), cost savings with the new academic model, and lower expenses with
Slide 12: Vasta
Vasta May 2021 \ \ \
Slide 13: Vasta — Operating Results
Vasta — Operating Results + Subscription revenue grew 11% in the commercial year of 2021 (4Q20 + 1Q21), with emphasis on ex-PAR subscription (traditional education systems and complementary solutions), which grew 21% + PAR and non-subscription business most impacted by the reuse of textbooks, leadin
Slide 14: Platos
cu Platos May 2021 \ \ \
Slide 15: Platos — Operating Results
Y Y Platos — Operating Results Z + Net revenue from digital graduate courses grew 28% in the period, and 14% in the consolidated, reflecting the strategy of focusing on the digital product * Recurring EBITDA margin remains at a high level, despite the more conservative level of provisioning (affecti
Slide 16: Saber
Saber May 2021 \ \ \
Slide 17: Saber | Operating Results
\ Yy Saber | Operating Results Lis * Pandemic effect continues to be preponderant in Saber revenue: drop in student base combined with reduction in daytime activities were the main offenders in the quarter * Compression in recurring EBITDA margin due to reduced revenue Net Revenue (R$ million) Recur
Slide 18: Other Business
Other Business YYyyYYy, May 2021 -
Slide 19: Other Business — Operating Results
\ Other Business — Operating Results Yy p 9g Net revenue impacted in 1Q21 by the seasonality of the National Textbook Program (PNLD). Other lines contributed positively to the composition of revenue + Profitability was favored by the lower cost associated with the sale of collections for replacement
Slide 20: Cogna
Cogna May 2021 \ \ \
Slide 21: Cogna — Operating Results
\ Yy Cogna — Operating Results Net revenue impacted by the drop in revenue from higher education and basic education due to the pandemic, by the seasonality in the PNLD revenue, partially offset by the growth of Platos Kroton’s restructuring and better profitability in other businesses drove expansi
Slide 22: Cogna — Net Income excluding non-cash effects
Y yy * Net income excluding non-cash effects, net income would have been R$ 42 million, a reduction of 11% in the annual basis Cogna — Net Income Adjusted Net Income (R§ million) || Recurring and non-cash expenses Non-recurring and non-cash expenses 35 42 -91 73 Net Loss Amortization of intangible I
Slide 23: Cogna | Indebtedness
“Uj “ _, Cogna | Indebtedness Solid cash position of R$ 3.9 billion and extended debt profile Net debt of R$ 2.9 billion at the end of December Net debt / adjusted EBITDA of 1.97x, according to the new criterion of adjusted EBITDA, which excludes the extraordinary allowances for allowances made in 2
Slide 24: Cogna's Perspectives
Cogna’s Perspectives Kroton growing strong in digital, back to the path of growing profitability and with a light balance sheet Organic growth of the subscription business preserved, despite the effects of the pandemic on the volume of students enrolled in partner schools and the sale of textbooks.
Slide 25: Investor Relations
Investor Relations dcogna com br dri@cogna.com.br ~