Cogna Educacao S.a. · BMFBOVESPA:COGN3
Cogna Educacao — Q1 2024 Earnings Presentation
23 slides from Cogna Educacao's earnings presentation, May 9, 2024
Slide 1: Results 1Q24
Results 1Q24 cs May, 09, 2024 Va
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 Management
Message from Management ✓ The Net Revenue of Cogna continues to grow at a high double-digit rate, with all business units growing consistently; ✓ Recurring EBITDA grows for the 12th consecutive quarter; ✓ Operating Cash Flow after Capex and Debt Service positive in R$9.4 million; ✓ The 1Q24 results
Slide 4: Kroton
kroton*
Slide 5: Operating Performance
Operating Performance Student Intake (thousand) Total Student Base (thousand) Average Ticket (R$ Thousand/month) 12.1% 14.7% 1,105.7 419.6 986.7 36.9 365.9 45.1 11.0 32.8 152.9 +3.9% vs 1Q23 Kroton Med 10.8 152.6 39.6 +1.4% +12.5% Kroton Med Kroton Med +14.1% +0.2% +0.7% vs 1Q23 On - Campus 363.5 91
Slide 6: Financial Performance
Financial Performance Net Revenue (R$ million) Gross Profit (R$ million) Gross Margin (R$ million) 14.9% 12.5% 746.7 907.1 649.6 806.3 176.5 +13.0% 133.4 +18.5% +3.6p.p vs 1Q23 Kroton Med 112.5 156.3 Kroton Med 161.4 Kroton Med 252.9 173.3 263.6 -4.1% -6.9% -1.9p.p vs 1Q23 On-Campus On - Campus On -
Slide 7: Consolidated Financial Performance
Consolidated Financial Performance Costs and Expenses¹ (R$ millions) Recurring EBITDA (R$ millions) % ROL 1Q24 vs 1Q23 36.4% 17.5% 31.7% 639.5 Total Costs -1.7p.p 544.1 160.5 -1.9% Operating Expenses -2.5p.p 293.5 156.6 287.9 193.0 PDA -1.6p.p 192.0 97.8 Corporate Expenses +0.5p.p 91.3 32.9 25.0 1
Slide 8: Vasta
Slide 9: Net Revenue
Net Revenue Quarter (R$ million) Cycle (R$ million) 11.8% 1,014.8 14.4% 907.9 n.a 69.0 460.7 73.5 106.7 -31.1% 402.8 n.a 69.0 45.6 -24.8% 34.3 801.2 872.2 +8.9% 357.2 +0.0% 357.4 1Q23 1Q24 Cycle 2023 Cycle 2024 B2G No - Subscription Subscription ✓ Subscription with 8.9% growth in the Cycle, less con
Slide 10: Costs and Expenses
Costs and Expenses Costs and Expenses¹ - Quarter (R$ million) % ROL 1Q24 1Q23 Corporate Expenses 3.1% 2.3% +0.8p.p 7.4% 298.0 277.4 14.3 PDA 2.9% 2.6% +0.3p.p 13.2 10.4 9.4 46.1 46.2 Operational Expenses 10.0% 11.5% -1.5p.p 51.1 73.3 Selling and Marketing 15.9% 12.7% +3.2p.p expenses 160.3 151.1 T
Slide 11: Recurring EBITDA and EBITDA Margin
Recurring EBITDA and EBITDA Margin Quarter (R$ million) Cycle (R$ millions) 38.9% 35.6% 34.7% 31.0% 22.0% 394.4 28.0% 323.4 160.0 125.0 1Q23 1Q24 Cycle 2023 Cycle 2024 EBITDA Recurring Margin ✓ Efficiency gain in the quarter of 3.7p.p in EBITDA Margin; ✓ Expansion of Gross Margin in the cycle ✓ Impr
Slide 12: Update on new growth avenue: START ANGLO
Update on new growth avenue: START ANGLO São José do Rio Preto • Flagship acquired in 2023 • ~300 students • In operation Alphaville Prospects • Our first franchise mapped +2k • ~190 students (target 120) In operation 2024 Prospects 230 • in negotiation Liceu Pasteur São Paulo Signed • New flagship
Slide 13: New Artificial Intelligence of Vasta Platform
New Artificial Intelligence of Vasta Platform Intelligent Assistant for Teachers and Students ✓ Content queries ✓ Content summaries The Artificial Intelligence of Vasta Platform ✓ Exercise list generation Launched at ✓ Homework suggestions ✓ Videos, podcasts and image generation ✓ Variation in cogni
Slide 14: Saber
SABER’:
Slide 15: Financial Highlights
Financial Highlights Net Revenue (R$ million) Recurring EBITDA and EBITDA Margin (R$ million) 25.8% 24.7% 46.8% 193.1 40.3% 131.5 47.6 33.9 1Q23 1Q24 1Q23 1Q24 EBITDA Recurring Margin ✓ The strong growth in Net Revenue in 1Q24 comes mainly from: ✓ The Recurring EBITDA grew by 40.3% compared to the s
Slide 16: Cogna Educação
EDUCACAO
Slide 17: Financial Highlights
Financial Highlights Net Revenue (R$ million) Recurring EBITDA and EBITDA Margin (R$ million) 34.0% 32.2% 15.7% 1,538.5 1,329.9 9.5% 452.4 495.5 1Q23 1Q24 1Q23 1Q24 Recurring EBITDA Margin ✓ 15.7% increase in Cogna's Consolidated Net Revenue; ✓ 9.5% growth in Recurring EBITDA in 1Q24 represents the
Slide 18: Operating Cash Generation (OCG)
Operating Cash Generation (OCG) After Capex (R$ million) After Capex and Debt Service (R$ million) 50.2% 42.4% -7.4% 227.0 210.2 -119.5% 9.4 1Q23 1Q24 -48.4 Conversion of Recurring EBITDA into OCG 1Q23 1Q24 ✓ 7.4% reduction in OCG after Capex explained mainly by: ✓ The relevance of the asset-light s
Slide 19: Net Profit
Net Profit Adjusted Net Profit and Adjusted Net Margin (R$ million) Net Profit (Loss) and Net Margin (R$ million) 8.9% 4.1% 3.3% -0.6% -57.1% 117.7 -115.7% 54.4 50.5 -8.5 1Q23 1Q24 Adjusted Net Margin 1Q23 1Q24 ✓ Adjusted Net Income was R$50.5 million in the quarter, impacted by: ✓ 12.1% increase in
Slide 20: Leverage and Indebtedness
Leverage and Indebtedness ✓ The leverage ratio reduced to 1.79x, reaching the lowest level since 4Q20, as a result of the consistent growth in EBITDA and cash generation of the Company; ✓ In April/24, the Company carried out the early redemption totaling R$169.7 million of the 4th (Fourth) Debenture
Slide 21: Cash Position and Indebtedness
Cash Position and Indebtedness Breakdown of Net Debt (R$ million) 4.935 124 5.059 1.782 3.277 ✓ In 1Q24, the Company received the second tranche with FINEP, with a value of R$23.8 million; Loans and Accounts Gross Debt Cash Net Debt ✓ With the adoption of IFRS 16 in 2019, we began financing payable
Slide 22: We started 2024 focused on our Strategic Pillars
We started 2024 focused on our Strategic Pillars... Growth Cogna’s revenue will continue to grow across all business units Experience We anticipated enrollment aiming for a better experience for our students, resulting in a record NPS that will bear fruit in the coming quarters Efficiency Growing an
Slide 23: Results 1Q24
Results 1Q24 cs May,09, 2024 Va