Cogna Educacao S.a. · BMFBOVESPA:COGN3
Cogna Educacao — Q4 2023 Earnings Presentation
30 slides from Cogna Educacao's earnings presentation, Mar 21, 2024
Slide 1: 4Q23 Earnings Conference Call
4Q23 Earnings Conference Call March, 21, 2024
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 no
Slide 3: Message from CEO
Message from CEO In 2023, Net Revenue totaled R$3,640.6 million, The start of the 2024 cycle saw a growth of Operating Cash Flow after CAPEX in 2023 grows by an 8.8% growth compared to 2022; 16.0% in ACV, reaching 36.8% of the total for 65.4%, reaching approximately R$900 million, with a CAGR 2024;
Slide 4: Kroton – Higher Education
Kroton Higher Education
Slide 5: Student base and Dropout
Student base and Dropout Number of Undergraduate students (#million) +6.7 % 6.4% 954.1 High On-site Attendance 896.5 (HOA) Kroton's undergraduate student base continues to 324.8 346.4 grow, reaching 954.1 thousand students in 4Q23, +6.3% with a +6.7% increase in High In-person Low On-site Attendance
Slide 6: Net Revenue
Net Revenue Net Revenue (R$ million) Accumulated Quarter +8.8% Kroton's Net Revenue grew by 1.7% in 4Q23 3.640,6 3.346,7 compared to 4Q22. This marks the sixth +1.7% 968,3 consecutive quarter of revenue growth; 952,6 In 2023, Kroton's Net Revenue reached R$3,640.6 million, with a growth of 8.8% comp
Slide 7: Average Ticket (AT)
Average Ticket (AT) Strategy to maximize revenue by taking advantage of the low variable cost offered by digitalization of the courses and scale of our operation. Ticket (P) x Quantity (Q)¹ = Revenue (R) ² - Variable Cost Profitability Freshman = Freshman (digitalization) High On-Site Attendance Rev
Slide 8: Costs and Expenses
Costs and Expenses % NOR 4Q22 4Q23 D Costs and Expenses¹ - Quarter (R$ million) Total Costs 21.3% 21.7% + 0.4p.p +2.1% Selling and Marketing expenses 12.6% 14.7% + 2.1p.p 763.1 778.8 ADA 203,1 209,9 9.8% 9.6% -0.2 p.p 120,3 142,6 93,0 93,0 Operating expenses 31.2% 29.6% - 1.6p.p 297,5 286,6 Corporat
Slide 9: Average Collection Period (ACP) and Coverage Ratio (CR)
Average Collection Period (ACP) and Coverage Ratio (CR) Average Collection Period (ACP) (Out of Pocket) - 18 days Average Receivable Collection Period continues to - 10 days 62 decrease, reflecting the ongoing improvement in 60 54 53 student profiles and the implementation of 48 48 45 47 44 enhancem
Slide 10: Recurring EBITDA
Recurring EBITDA Recurring EBITDA and EBITDA Margin – Quarter (R$ million) In the fourth quarter of 2023, Recurring EBITDA increased by 1.1%, totaling R$210.4 million, with 21,8% 21,7% margin in line with 4Q22; 400,0 +1.1% 350,0 300,0 208,1 210,4 250,0 200,0 There was a 15.8% reduction in non-recurr
Slide 11: Productivity Increase by Campuses
Productivity Increase by Campuses Productivity by Kroton Campus Number of students High On-Site Attendance (HOA) by Campus (#) +44.7% We concluded 4Q23 with 112 campuses, the rationalization process initiated in 2020 did not prevent a 44.7% increase in the number of students per campus in Kroton; 2.
Slide 12: KrotonMed
KrotonMed Net Revenue (R$ million) Quarter Accumulated +25.2% 694,0 554,5 Net Revenue continues to show consistent growth, +26.6% with a 26.6% increase compared to the third quarter, 153,3 194,1 reaching R$194.1 million; 4Q22 4Q23 2022 2023 In the quarter, there was a growth in Recurring EBITDA of 6
Slide 13: Vasta – K-12 Education
Vasta K-12 Education
Slide 14: Net Revenue
Net Revenue Net Revenue – Quarter (R$ million) In this fourth quarter, Net Revenue increased by +9.7% 554,1 505,0 9.7% compared to the fourth quarter of 2022, due to: (i) Growth of 15.8% in Net Subscription Revenue ex-PAR; 4Q22 4Q23 (ii) Growth of 17.0% in Subscription Products of Net Revenue – Accu
Slide 15: Net Revenue – Subscription
Net Revenue Net Revenue - Subscription (R$ million) +17.0% PAR +16.0% 514.9 The value of ACV for the sales cycle of 2024 was set 444.0 +41.2% Complementary at R$1.4 billion, representing an organic growth of 77,9 66,6 Solutions 16% compared to the ACV of 2023; 131.2 92,9 284,5 305,8 +7.5% Core Conte
Slide 16: Costs and Expenses
Costs and Expenses Costs and Expenses¹ - Cycle (R$ million) % ROL 4T22 4T23 D Total Costs 34.4% 32.2% -2.2p.p +5.2% Selling and Marketing 9.9% 12.1% +2.2p.p expenses 304.3 320.1 10,3 17,6 ADA 5.7% 5.2% -0.5p.p 41,5 27,7 29,0 28,8 50,2 67,1 Operating 8.2% 5.0% -3.2p.p expenses 173,5 178,6 Corporate e
Slide 17: Recurring EBITDA
Recurring EBITDA Recurring EBITDA and EBITDA Margin – Quarter (R$ million) 2000,0 80,0% 1800,0 70,0% 1600,0 60,0% 1400,0 1200,0 39,3% 42,3% 50,0% 1000,0 800,0 40,0% In 4Q23, Recurring EBITDA grew by 18.1%, reflecting operational efficiency improvement, cost 30,0% 600,0 +18,1% reduction, and sales mi
Slide 18: Anglo: Absolute leader in approvals at the best universities in Brazil
Anglo: Absolute leader in the approvals of the best universities in Brazil íder +6 thousand national Highlight in approvals at USP and Largest Approver of approvals Unicamp in the most competitive courses Medicine in Brazil in Brazil 35% from the total of Medicine Unicamp 45% from the total of Medic
Slide 19: New Growth Avenue – Start Anglo
New Growth Avenue – Start Anglo São José do Rio Preto • Flagship acquired in 2023 • 300 students • In operation Alphaville Prospects • Our first franchisee mapped 366 • 173 students (the goal was Prospectos 120) • In operation in negotiation 54 Liceu Pasteur – São Paulo Signed contracts • New partne
Slide 20: Saber
Saber PNLD, Red Balloon, SETs e Other Businesses
Slide 21: Financial Highlights
Financial Highlights Net Revenue (R$ million) Quarter Accumulated +58.0% 807,9 Net Revenue from Learning Solutions grew by +59.4% 511,2 59.4% in 4Q23 due to the strong performance of 402,1 operations: PNLD (+62.0%) and Other Services 252,2 (+102.7%), as well as the sale of the Acerta Brasil program;
Slide 22: Cogna
Cogna
Slide 23: Net Revenue and Recurring EBITDA
Net Revenue e Recurring EBITDA Net Revenue (R$ million) Quarter Accumulated +15,8% 5.895,5 Net Revenue grew by 12.6% in 4Q23 and by 5.092,2 +12,6% 1.908,9 15.8% in the year as a whole, driven by 1.696,0 growth in all three business units; Growth of 17.1%in Recurring EBITDA in 4Q22 4Q23 2022 2023 4Q2
Slide 24: Operating Cash Generation (OCG) after Capex
Operating Cash Generation (OCG) after Capex Quarter (R$ 930 million) 56,0% 43,6% 830 46,0% 730 36,0% 630 530 26,0% Operational Cash Flow after CAPEX was one of the 430 13,4% main highlights of the results, growing by 282.2% 330 240,8 16,0% compared to 4Q22, totaling R$240.8 million; 230 +282.2% 130
Slide 25: Net Profit
Net Profit Adjusted Net Profit and Adjusted Net Margin (R$ million) -52,6 In 4Q23, a deferred income tax write-off was made on a tax -449.2% -289,0 loss of group companies, impacting the results for the year -1,0% 2023; -4,9% The Company adjusted its corporate reorganization to 2022 2023 submit up t
Slide 26: Leverage and Indebtedness
Leverage and Indebtedness 3,00 The leverage ratio decreased to 1.83x, reaching the lowest level since 4Q18, as a result of the 2.10x 2.03x 1.98x consistent growth in EBITDA and cash generation 1.88x 1,83 of the Company; 3.333 3.317 3.363 3.308 3.278 In 4Q23, we reduced Net Debt by R$30.1 million com
Slide 27: Cash Position and Indebtedness
Cash Position and Indebtedness Throughout 2023, the company completed Breakdown of Net Debt 4 financing transactions: (R$ million) (i) 1Q23: R$500 million at a rate of CDI+2.15% p.a. with a maturity of 36 months from the contracting date; 4,935 136 5,072 1,794 3,278 (ii) 2Q23: The first tranche of f
Slide 28: ESG: Achievements of 2023 and Commitments
ESG: Achievements of 2023 and Cogna's Commitments for a Better World 2nd consecutive year as the only education Achievement of 131% company to be part of B3's Corporate of the established ESG goals for 2023 Sustainability Index Completion of 43% of the goals (50% ahead of the established deadline -
Slide 29: We are very pleased with 2023 and we want even more in 2024
We are very pleased with 2023 and we want even more in 2024 Growth Lifelong learning and potential shareholder value generation. Experience Platforms and distribution channels focused on customers. Efficiency Building solid processes and systems year after year. People and Culture A culture of owner
Slide 30: IR Contact
IR Contact: dri@cogna.com.br https://ri.cogna.com.br/ 30