Cogna Educacao S.a. · BMFBOVESPA:COGN3
Cogna Educacao — Q3 2022 Earnings Presentation
22 slides from Cogna Educacao's earnings presentation, Nov 11, 2022
Slide 1: 3Q22 Presentation of Results
3Q22 Presentation of Results November 11, 2022
Slide 2: Disclaimer
Disclaimer The material that follows 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
Slide 3: Message from the CEO
Message from the CEO Intake grows in terms of student volume Delivery of the BRL1.0 billion Annual The generation of long-term value (+16.6%) and Revenue (+10.8%), adding to Contract Value Guidance for the 2022 continues to be delivered for the 6th yet another growing season; intake cycle; consecuti
Slide 4: Kroton Higher Education
Kroton Higher Education
Slide 5: Student base and Dropout
Student base and Dropout Number of Undergraduate students (No. in Thousands) +11.7% 882 985 +8.9% High on-site attendance (AP) Kroton undergraduate student base 353 324 grows 11.7% in 3Q22 compared to 3Q21, with a 8.9% variation in AP +13.3% 558 632 Low on-site attendance (BP) and +13.3% in BP 3Q21
Slide 6: Intake: Growing seasons for another cycle
Intake: Growing seasons for another cycle Volume of student intake (thousand) Revenue intake (Variation vs. 3Q21) +16.6% 288 247 +21.5% +20.8% Low on-site attendance (BP) 211 +5.1% 174 +5.0% High on-site attendance (AP) 73 77 3Q21 3T21 3Q22 3T22 AP HOA BP LOA (1) (1) (1) 6 (1) Only considers the win
Slide 7: Net Revenue
Net Revenue Net Revenue (BRL million) Quarter 9M22 +11.7% +0.5% After 14 quarters without growth, Kroton's Net Revenue grew 11.7% in 3Q22 versus 2,394 685 765 2,383 3Q21, following a consistent trend of improvement as a result of the last 6 3T21 3T22 3T21 9M21 3T22 9M22 quarters; 3Q21 3Q22 Net Reven
Slide 8: Recurring EBITDA
Recurring EBTIDA Recurring EBTIDA and EBITDA Margin (BRL million) Recurring EBTIDA and EBITDA Margin (BRL million) 27.1% 30.9% 33.7% 23.4% +29.5% +9.7% 207 736 807 160 1S21 1S22 1S21 9M21 1S22 9M22 3Q21 3Q22 Costs and Expenses as percentages of Net Revenue 4% 4% Despesas Corporativas 9% 7% -0.7 p.p.
Slide 9: Accounts receivable, Average Collection Period and Coverage Ratio
Accounts receivable (AR), Average Collection Period (ACP) and Coverage Ratio (CR) CAR and Kroton Coverage Ratio (Total)1 Net AR Coverage ratio ADA balance Série1 Série2 Série3 68,8% 67,6% 69,8% 64,1% 66,7% 65,5% 68,4% 67,0% Milhares CR and ADA/Net revenue (Total) 49,9% 54,1% 45,1% Índice de Cobertur
Slide 10: KrotonMed
KrotonMed Financial Operational 556 medicine course BRL 401 million vacancies Net Revenue in 9M22 Active in 9M22 We ended the YTD with 83.2% of the Guidance for Kroton Med accumulates 556 active medicine the year (BRL 482 million). undergraduate course vacancies in 2022. BRL 177 million Recurring EB
Slide 11: Vasta K12
Vasta K12
Slide 12: Net Revenue
Net Revenue Net Revenue (BRL thousands) Quarter Cycle Cycle Net Revenue is 29.7% higher than the +48.5% +29.7% 2021 cycle 189 1,158 127 893 Subscription Revenue reaches 88.5% of the 2022 cycle Revenue (vs. 83.0% in the 2021 cycle) 3T21 3T22 3Q21 3Q22 21 Cycle Ciclo 21 Ciclo 22 22 Cycle Share of Comp
Slide 13: Annual Contract Value 2022
Annual Contract Value 2022: As a result of 3Q22, we reached the Guidance of BRL1.0 billion in Annual Contract Value for the cycle Annual Contract Value Recognition(1) 38,3% 34,7% 32,8% 33,4% 15,8% 17,4% 17,0% 13.1% 4T20 4Q20 4T21 4Q21 1T21 1Q21 1T22 1Q22 2T21 2Q21 2T22 2Q22 3T21 3Q21 3T22 3Q22 35% 6
Slide 14: Financial Highlight: Recurring EBITDA
Financial Highlight: Recurring EBITDA (%) Net Revenue Recurring EBITDA for the 2022 cycle grows 3,8% 2,4% 114.6%,, driven by the significant increase in -1.4 p.p. PCLD 4,3% 3,1% -1.2 p.p. Net Revenue (+29.7%) and margin (+10.4 p.p.) 15,1% 15,3% -0.2p.p. Despesas Corporativas e Outros 18,7% 16,3% -2.
Slide 15: Saber
Saber NBTP, Red Balloon, SETs and Other Businesses
Slide 16: Financial Highlights
Financial Highlights (%) Net Revenue (BRL million) Quarter Semester Saber's Recurring EBITDA dropped 82.5% in the -29.8% quarter, mainly due to the seasonality of the NBTP -46.0% 369 213 259 intake cycle, in line with the historical variation: 115 I. In 2022, we traded the school segment with a lowe
Slide 17: Cogna Holding
Cogna Holding
Slide 18: Net Revenue and Recurring EBITDA
Net Revenue and Recurring EBITDA (%) Net Revenue (BRL million) Quarter Accumulated +4.1% +3.5% 1,064 3,396 1,022 3,280 We ended 3Q22 with a growth of 4.1% in Net Revenue, as a result of the good 3T21 3T22 results in Kroton and Vasta, which more 3T21 3T22 3Q21 3Q22 9M21 9M22 than offset the result in
Slide 19: Post-Capex operating cash generation (OCG)
Post-Capex operating cash generation (OCG): Post-Capex Operating Cash Generation (OCG) Quarter (BRL million) was positive by BRL477 million year-to-date, -3.3% with a variation of +22.4% or +87.3 million 193 187 versus 9M21 OCG positively impacted mainly by: 3T21 3Q21 3T22 3Q22 Year to date (BRL mil
Slide 20: Financial Highlights: Cash Position and Indebtedness
Financial Highlights: Cash Position and Indebtedness Stable and healthy leverage at 2.15x Leverage (Net Debt / Adjusted EBITDA) 16.8% reduction in gross debt in 3Q22 versus 3,00x 3Q21, with an average term of 33 months and 65.0% of the total with maturities over 1 year 2,07x 2,16x 2,15x 2,09x 2,15x
Slide 21: Final Considerations
Final Considerations Accumulation of growing seasons in Net Revenue growth is already a Growth of 2.8 p.p. in Recurring EBITDA volume and Revenue, through the reality in the quarter and we are aiming margin in 9M22, reaching 33.7% expansion of DL hubs and CAC efficiency for a positive result in the
Slide 22: IR Contact
IR Contact: dri@cogna.com.br https://ri.cogna.com.br/ 22