Cogna Educacao S.a. · BMFBOVESPA:COGN3
Cogna Educacao — Q4 2022 Earnings Presentation
28 slides from Cogna Educacao's earnings presentation, Mar 24, 2023
Slide 1: 4Q22 Presentation of Results
4Q22 Presentation of Results March 24, 2023
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 Net Revenue Growth of 12.6% in 4Q22, the Net Revenue grows 33.4% and 26.8% in Result confirms 2022 as the year of results 2nd consecutive quarter of double-digit 4Q22, which reinforces confidence in inflection for Cogna and its main business growth, reinforces a consistent trend
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) Kroton undergraduate student base 11,5% 897 +8.4% continue to grow reaching the 3rd 804 High on-site attendance (HOA) consecutive quarter of expansion; 325 300 572 +13.3% Low on-site attendance Student base growth is driven
Slide 6: Productivity Increase by Campuses
Productivity Increase by Campuses Productivity by Kroton Campus Rationalization of Campi, started in 2020, enabling a 38.6% increase in the number of Number of students High Attendance (HOA) by Campus (#) HOA/Kroton Campus students¹; +38.6% High success rate in the migration of students from closed
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 by the scale of our operation. Ticket (P) Freshman x Quantity (Q) Freshman = Revenue (R) - Variable Cost (digitalization) = Profitability High Attendance Revenue
Slide 8: Net Revenue (NR)
Net Revenue (NR) Net Revenue (R$ million) Quarter Year-to-date +3.6 % Kroton's Net Revenue grew 12.6% in 4Q22 +12.6 % 3550 3350 3,229 3,347 compared to 4Q21. This is the 2nd consecutive quarter of double-digit 3150 1000 953 2950 846 growth, reinforcing the trend of 900 2750 2550 800 2350 700 2150 im
Slide 9: Costs and Expenses
Costs and Expenses Higher share of Kroton’s DL segment, Sales and marketing expenses were reduced by 16.7% year-to-date, more than compensates for the despite increase in the captured volume. resumption of costs, temporary reduced in 2021 given the pandemic, showing a In the year, PDA + Interest and
Slide 10: Recurring EBITDA
Recurring EBTIDA Recurring EBTIDA and Quarter EBITDA Margin (R$ million) 22.5% +9,2% 21.8% 400 25% 350 20% 208 Recurring EBITDA grows 9.6% year-to-date, 300 250 191 15% 200 150 100 10% driven by margin gain of 1.6 p.p. and Net Revenue expansion 5% 50 0 0% 4Q21 4Q22 Recurring EBTIDA and EBITDA Margin
Slide 11: Accounts receivable, Average Collection Period and Coverage Ratio
Accounts receivable (AR), Average Collection Period (ACP) and Coverage Ratio (CR) Average Collection Period (out-of-pocket) Reduction of 8 days in the Average -24 days Collection Period (ACP) comparing 4Q22 78 72 76 - 8 days to 4Q21, reflects better student profile 55 62 60 54 and adoption of strict
Slide 12: KrotonMed
KrotonMed Financial Operacional R$ 554.5 million 580 medical seats Net Revenue 2022 Active at the end of 2022 We ended the year with 115% of the Guidance Kroton Med accumulates 580 active medical for the year (R$ 482 million). undergraduate seats in the year 2022. Guidance achievement reflects opera
Slide 13: Vasta - K12
Vasta K12
Slide 14: Net Revenue
Net Revenue Net Revenue (R$ thousand) Quarter +26.8% 505 398 Net Revenue in 4Q22 is 26.8% higher in 4Q21, with an increase in underwriting 4Q21 4Q22 participation, reaching R$ 505.0 million; Revenue from Subscription products (R$ million) Revenue from complementary solutions Total Subscription grows
Slide 15: Recurring EBITDA
Recurring EBITDA Recurring EBTIDA and Quarter EBITDA Margin (R$ million) 800 75, 0% 700 +27,0% 65, 0% 600 55, 0% 500 39.2% 39.3% 45, 0% 4Q22 Recurring EBITDA grows 27.0%, driven by 400 35, 0% 300 198 25, 0% 200 156 15, 0% the increase in Net Revenue (+26.8%) 100 5,0 % - -5,0% 4Q21 4Q22 In the year,
Slide 16: Costs and Expenses
Costs and Expenses PDA/NR Increase in 4Q22 vs. 4Q21 due to In the year, a reduction of 5.5 p.p. in the share of costs in Net provision of 100% of the AR from retail Revenue a greater composition of premium and complementary companies in judicial reorganization (R$15.0 solutions in the Net Revenue mi
Slide 17: 2023 ACV by Quarter
2023 ACV by Quarter ACV Recognition ACV 2023 is slightly less concentrated in the first two quarters (65% mid Mid range range) than in previous year (66.5%), due to the different seasonality 33,9% 36,1% 32,5% and mix of our products. 29,0% 17,0% 16,6% 4Q21 4Q22 1Q22 1Q23 2Q22 2Q23 3Q22 3Q23 Net Reve
Slide 18: Saber - NBTP, Red Balloon, SETs and Other Businesses
Saber NBTP, Red Balloon, SETs and Other Businesses
Slide 19: Financial Highlights
Financial Highlights (%) Net Revenue (R$ million) Saber’s Recurring EBITDA decreased 41.9% in the year mainly due to NBTP’s seasonality during Quarter Year-to-date (YTD) the purchase cycle, in line with historical -18.9% -3.6% variation: 900 630 511 800 262 700 280 252 600 500 260 400 I. The 2022’s
Slide 20: Cogna
Cogna
Slide 21: Net Revenue and Recurring EBITDA
Net Revenue and Recurring EBITDA (%) Net Revenue (R$ million) Quarter Year-to-date (YTD) 2022 was the year of inflection point regarding Net Revenue, with a growth +13.2% +6.6% 6.6%, due to Kroton and Vasta results 1.800 1,696 5.200 5.100 5,092 that offset NBTP’s result; 1,498 1.700 1.600 5.000 4.90
Slide 22: Operating cash generation (OCG) after Capex
Operating cash generation (OCG) after The Generation of Operational Cash post Capex CAPEX (OCG) was positive representing R$ Quarter (R$ million) 540 million in the year-to-date (YTD) period, -39.5% with a +9.4% variation or +R$ 46.2 million vs. 120 104 2021 YTD; 100 80 63 i. Higher Cash Generation
Slide 23: Leverage and Indebtedness
Leverage and Indebtedness Leverage (Net Debt/Adjusted EBITDA) EBITDA Ajustado Adjusted Dívida EBITDA Líquida/EBITDA Ajuste PCLDPDA Adjusted Covernants Stable leverage at 2.10x, with Net Debt/EBITDA Covenants 3,00x healthy covenant distance of 3.00x; 2,16x 2,15x 2,09x 2,15x 2,10x 1.435 1.472 1.503 1.
Slide 24: Cash Position and Indebtedness
Cash Position and Indebtedness 23.5% reduction in 4Q22 gross debt versus 4Q21 Composition of Net Debt (R$ million) Relevant liability management actions in 4Q22 and 2023 focused on reduction of financial 5.462 5.209 252 2.129 expenses and debts extension: 3.333 i) Raising of R$ 500 million at CDI +
Slide 25: ESG Pioneers: 1st Brazilian education company to launch public goals
ESG Pioneers: 1st Brazilian education company to launch public goals 14 goals to accelerate the ESG agenda 2022-2025 COGNA’s COMMITMENTS FOR A BETTER WORLD Balance between Energy Environmental education Climate Change Have 90% of the energy Impact 1.8 million people in environmental Measure the impa
Slide 26: Recognition and leadership in the main ratings and indexes
Comprehensive actions, recognition and leadership, national and international, in the main ratings and indexes Frameworks ESG Stamps e Certifications Ratings e Indexes ‒ 2nd global in Consumer Services ‒ 1st place Global em Educação ‒ 1st place in Brazil in Education ‒ 2nd lugar Global Consumer Serv
Slide 27: Final Considerations
Final Considerations Positive prospects for the 1H23 cycle Reduction of 12 own units, productivity CAPEX's focus on technology and of intake and re-enrollment brings gain, good management of direct costs, digital transformation generate NPS confidence in student base and unification of national bran
Slide 28: IR Contact
IR Contact : dri@cogna.com.br https://ri.cogna.com.br/ 28