Yduqs Participacoes Sa · BMFBOVESPA:YDUQ3
Yduqs Participacoes Sa — Q1 2020 Earnings Presentation
16 slides from Yduqs Participacoes Sa's earnings presentation, May 7, 2020
Slide 1: Earnings Presentation 1Q 2020
EARNIGS PRESENTATION 1Q 2020 May 7th, 2020 1
Slide 2: Disclaimer
DISCLAIMER 1Q20 Rio de Janeiro, May 7th - YDUQS Participações S.A., one of the largest private education organizations in Brazil, presents its results for the first quarter 2020 (1Q20). The Company´s financial information is presented based on the consolidated numbers, in Brazilian Reais, in accorda
Slide 3: COVID-19: Measures to Face the Challenge
COVID-19: MEASURES TO FACE THE CHALLENGE STUDENTS 1Q20 . 100% of classes broadcasted live . No impact on . Theoretical classes on in virtual environment classes virtual environment . Unchanged curriculum . High . Use of high-tech tools On-campus DL engagement Medicine . 15k classes per week . Engage
Slide 4: COVID-19: Responses to Implemented Actions
COVID-19: RESPONSES TO IMPLEMENTED ACTIONS 1Q20 Evolution of attendance in real-time* classes Engagement superior to historical levels (%) 1st week 2nd week 3rd week 4th week 5th week 6th week 7th week 70% 81% 80% 60% attendance 70% 50% attendance Virtual attendance classes start STUDENTS Transmissã
Slide 5: 2020.1 Intake
2020.1 INTAKE 1Q20 Intake expectations 82% (undergraduate) completion ON-CAMPUS DIGITAL LEARNING 0% 0% 0% 0% -5% +5% -5% +5% +5% -5% -5% +5% -10% +10% -10% -10% +10% +10% -10% +10% < -10% < -10% >10% < -10% >10% >10% < -10% >10% Net revenues Intake volume Intake volume Net revenues(1) ex-FIES(1) ON-
Slide 6: Highlights of the Quarter
HIGHLIGHTS OF THE QUARTER 1Q20 DOUBLE DIGIT BASE GROWTH with REVENUES EX-FIES continues to COSTS AND EXPENSES impacted STRONG CASH FLOWS and digital learning as highlight increase despite total revenues by COVID-19 pressuring EBITDA solid liquidity slight decline (-1% YoY) Student base by segment Ne
Slide 7: On-Campus: Resilience in a Challenging Scenario
ON-CAMPUS: RESILIENCE IN A CHALLENGING SCENARIO 1Q20 On-campus student base On-campus intake 2020.1 FIES base and share over on- PAR students and share over on- (thd students, includes UniToledo) vs 2019.1 campus undergraduate base campus undergraduate base (thd students) (thd students; %) (thd stud
Slide 8: Digital Learning: Expansion Across the Board
DIGITAL LEARNING: EXPANSION ACROSS THE BOARD 1Q20 New intake record Digital Learning base DL centers (thd students) (thd students) (#) +55% +31% +60% DL retention rate (%) 314 1,015 graduates New 239 47 82 centers(1) 53 Flex 635 82.8% 50 81.8% 152 33 28 98 214 100% Online 156 2019.1 2020.1 1T19 1Q19
Slide 9: Medicine: Great Opportunity Ahead
MEDICINE: GREAT OPPORTUNITY AHEAD 1Q20 Student base Average ticket from paying student(1) Net revenues (thd) (R$ 000’/month) (R$ million) +16% +30% 8.8 o Expansion of paying base seat expansion in Mais 8.0 +10% Médicos I unity. o Avg. ticket improvement 3.8 4.4 108 driven by new premium 83 unity in
Slide 10: Net Revenues: Positioned for Growth
NET REVENUES: POSITIONED FOR GROWTH 1Q20 Net revenues ex-FIES Contribution by segment to net revenues (R$ million) (R$ million; 1Q19 vs 1Q20) +21% 47 25 (71) (10) +8% 833 933 -1.0% 923 688 771 1Q18 1T18 1Q19 1T19 1Q20 1T20 Receita 1Q19 ∆ FIES ∆∆on-campus Presencial ∆∆EAD DL ∆∆medicine Medicina Recei
Slide 11: Costs & Expenses: Short Term Pressure
COSTS & EXPENSES: SHORT TERM PRESSURE 1Q20 Bad debt Costs and Expenses (R$ million) (R$ million) Expenses related to COVID-19 +14% +6% contingency plan. 683 +20% a/a 645 72 G&A 154 63 129 expenses Bad debt increase due change in student base mix (more out-of- Selling 156 180 pocket; less FIES) when
Slide 12: EBITDA and Cash Flow
EBITDA AND CASH FLOW 1Q20 Adjusted gross profit(1) Adjusted EBITDA and margin Adjusted operational cash flow(2) (R$ million) (R$ million) (R$ million, before Capex) +0.7% -9% from 385 351 Dec/19 13 Non-recurring 573 576 items 136 +36% 338 Reported 273 1T19 1Q19 1T20 1Q20 201 Adjusted gross margin(1)
Slide 13: Solid Cash Position After Acquisitions
SOLID CASH POSITION AFTER ACQUISITIONS 1Q20 As of March, 2020 Cash position after Adtalem acquisition and new loans Debt profile after new loans (Apr/20) (R$ billion) NET DEBT (CASH) OF -R$159 million (R$ million) R$ Debt as of Mar/20 2,286 New debt 725 +0.7 NET DEBT/EBITA AT Total 3,011 -0.1x (
Slide 14: Subsequent Event: Adtalem Acquisition Concluded
SUBSEQUENT EVENT: ADTALEM ACQUISITION CONCLUDED 1Q20 Timetable Identified synergies 10/21/19 04/13/20 04/24/20 CATEGORIES INITIATIVES Efficiency Integration of shared services Acquisition Final decision Closing announcement from anti-trust Efficiency Optimization of the corporate structure agency Ef
Slide 15: Conclusion & Perspectives for 2020
CONCLUSION & PERSPECTIVES FOR 2020 1Q20 (thd students) 247 New record of Digital 187 Learning intake and 160 166 95 On-campus Despite slowdown in EBITDA due 89 regaining momentum 97 90 to COVID-19, operations continues 152 DL at the on-campus 98 on solid ground and evolving 63 76 2017.1 2018.1 2019.
Slide 16: Contatos de RI
Contatos de RI Rogério Tostes | Pedro Yagelovic | Rosimere Nunes | Milena Gonçalves +55 (21) 3311-9875 | 3311-9290 ri@yduqs.com.br www.yduqs.com.br 16