Yduqs Participacoes Sa · BMFBOVESPA:YDUQ3
Yduqs Participacoes Sa — Investor Presentation (November 2023)
22 slides from Yduqs Participacoes Sa's investor presentation, November 2023
Slide 1: Corporate Presentation
Corporate Presentation November 2023 Produced by MSCI ESG Research as of October, 2023 1 THE USE BY YDUQS Participações S.A. OF ANY MSCI ESG RESEARCH LLC OR ITS AFFILIATES (“MSCI”) DATA, AND THE USE OF MSCI LOGOS, TRADEMARKS, SERVICE MARKS OR INDEX NAMES HEREIN, DO NOT CONSTITUTE A SPONSORSHIP, ENDO
Slide 2: Key messages
Key messages There are more than 32.2 million Brazilians that could triple their income by using our services. This number is growing We have reinvented our business, with intense digital transformation and gained full independence from government incentives Yduqs has delivered growth, high margins
Slide 3: Key messages
Key messages There are more than 32.2 million Brazilians that could ‘ triple their income by using our services. This number is growing We have reinvented our business, with intense digital transformation and gained full independence from government incentives Yduqs has delivered growth, high margin
Slide 4: Several sources demonstrate the impact of higher education on Brazilians’ income
Several sources demonstrate the impact of higher education on Brazilians’ income… Increase in average salary – OECD Average salary – JPM/IBGE Increase in our students’ salary (%, Higher Education vs. High School) (R$/month, 1Q23) immediately after graduation (%, 2022) 5,000 +121% 4,500 81.8% 183% 4,
Slide 5: … and employability
… and employability Unemployment rate (%, 1Q23) 12% -4 p.p. 10% 8% 6% 4% 2% 0% No High School High School Higher Education Sources: JP Morgan/IBGE. 5
Slide 6: There are 32.2 million Brazilians that could benefit from an investment in higher education
There are 32.2 million Brazilians that could benefit from an investment in higher education The “inventory” is huge… …it is growing… … and the solution is in the private sector Education level of the Brazilian population Graduates in Brazil Freshmen (In million, 2020) (In thousand, 2022) (%, 2022) G
Slide 7: Key messages
Key messages There are more than 32.2 million Brazilians that could triple their income by using our services. This number is growing We have reinvented our business, with intense digital ‘ transformation and gained full independence from government incentives Yduqs has delivered growth, high margin
Slide 8: We divide our services in three Business Units…
We divide our services in three Business Units… History Brief description Public Aprox ticket range 3-4 days a week on one of our 87 (R$/month) campi, complemented by lots of 52 years of tradition, digital content Classes B/C, mostly On-campus from public high- 300-1.200 our original service 1-2 day
Slide 9: …presenting a unique and highly compelling investment opportunity
…presenting a unique and highly compelling investment opportunity • Highest margins of the sector – most efficient On-campus • Highly recognized nationwide brand operation • Best positioned for the on-campus recovery • Relevant operational leverage • High Growth • Technology leader Digital • Maturin
Slide 10: Over the past years we have transformed into a digital institution, independent from the Government
Over the past 6 years we have transformed into a digital institution, independent from the Government Higher margin businesses have grown faster Net Revenue CAGR EBITDA % (R$ billion) 5.0 4.4 4.6 in 2022 3.9 0.3 1.2 1.1 49% 47% 3.6 3.6 3.4 0.4 0.7 1.0 0.7 0.5 Fies 1.7 1.3 0.2 0.3 1.3 1.4 26% 39% fad
Slide 11: After showing resilience through several crisis, the power of operating leverage is evident
After showing resilience through several crisis, the power of operating leverage is evident 1.68 LTM Adjusted EBITDA 1.54 1.62 1.600 1.46 775 1.41 1.40 1.41 1.400 1.35 1.32 1.35 1.35 1.34 656 691 675 1.200 598 598 1.000 545 542 541 538 575 515 503 507 517 518 520 800 443 450 454 524 475 600 422 490
Slide 12: Medicine: high contracted growth, and well positioned to capture regulatory seats expansion
Medicine: high contracted growth, and well positioned to capture regulatory seats expansion Companies’ Share of Mais Médicos* Seats Medical students/seat (%) (thousand students) 6.7 6.7 6.3 5.1 5.9 5.2 42% 14% 13% 12% 11% 5% 1% 1% Player G YDUQ3 Player B Player F Player A Player E Player H Others YD
Slide 13: 2022 Enade Results
2022 Enade Results Distribution of the participant base by bracket YDUQS’s progress by Enade concept Players’ ranking by concept in 2022 (%) (%) +1.4p.p. YDUQS 48% 52% 0.1% 62.2% 63.6% 5.3% 5.3% Player A Empresa A 51% 49% 0.5% 56.9% 58.3% Player BB Empresa 53% 47% Player C Empresa C 56% 44% 0.1% 37.
Slide 14: Our digital platforms have transformed the way students learn and connect with us
Our digital platforms have transformed the way students learn and connect with us The digital ecosystem permeates the Solutions to accelerate careers: market Excellence content, focusing on real cases and entire journey and is available to all preparation trails, intermediate certifications, the dev
Slide 15: The incorporation of emerging technologies is part of our DNA, preserving the difference of our product
The incorporation of emerging technologies is part of our DNA, preserving the difference of our product We have Artificial Intelligence applied ...and also in the student's other in the teaching and learning journey... touchpoints with our institutions • Automatic correction of exams through • Segme
Slide 16: Key messages
Key messages There are more than 32.2 million Brazilians that could triple their income by using our services. This number is growing We have reinvented our business, with intense digital transformation and gained full independence from government incentives Yduqs has delivered growth, high margins
Slide 17: We have a history of growth, margin, payment of dividends…
We have a history of growth, margin, payment of dividends… Net Revenue Dividends and Share Buyback(1) (R$ billion) (R$ million) CAGR +9% 250 5.0 4.4 4.6 3.6 4.1 Macro Scenario 501 • End of FIES 201 153 153 142 80 38 • Economic Crisis 2019 2020 2021 2022 3T23 (LTM) 3Q23 2018 2019 2020 2021 2022 2023
Slide 18: … and a heathy cash flow stream generation
… and a heathy cash flow stream generation Recurring Free Cash Flow (R$ million) 713 Covid + 580 514 505 188 2019 2020 2021 2022 3Q23 (LTM) 18
Slide 19: We have been delivering our promises
We have been delivering our promises What we promised (Adjusted EBITDA) What we delivered 3Q22 – From -1% to -5% vs 3Q21 ↓ +3% vs. 3Q21 4Q22 – From 10% to 20% vs 4Q21 ↑↑ +19% vs. 4Q21 1Q23 – From 10% to 20% vs 1Q22 ↑↑ +21% vs. 1Q22 2Q23 – From 10% to 20% vs 2Q22 ↑↑ +24% vs. 2Q22 3Q23 – From 10% to 2
Slide 20: Key messages
Key messages There are more than 32.2 million Brazilians that could triple their income by using our services. This number is growing We have reinvented our business, with intense digital transformation and gained full independence from government incentives Yduqs has delivered growth, high margins
Slide 21: ESG Agenda
ESG Agenda Large social capital, extensive experience in high-impact actions and one of the best ESG management systems in the country Produced by MSCI ESG E Our digital learning platform allows us S Highly recognized for its commitment G Apractices, global benchmark for governance to promote a sign
Slide 22: IR Contact
IR Contact ri@yduqs.com.br www.yduqs.com.br 22
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