Cogna Educacao S.a. · BMFBOVESPA:COGN3
Cogna Educacao — Q2 2020 Earnings Presentation
20 slides from Cogna Educacao's earnings presentation, Aug 15, 2020
Slide 1: 2Q20 Results
EDUCAGAO 2Q20 Results August 2020
Slide 2: Disclaimer
Disclaimer The following material is a presentation of general information on Cogna Educação S.A. ("Cogna"). The information herein is summarized and does not purport to be complete, and should not be construed by potential investors as a recommendation. This presentation is strictly confidential an
Slide 3: Opening Remarks
Opening Remarks
Slide 4: Overview of 2Q20 performance
Overview of 2Q20 performance • Recurring EBITDA growth in 1H20 in all the group’s companies, except undergraduate education • Operating cash generation after capex of R$145 million in 2Q20 • Maintained a solid cash position (R$3.7 billion at the end of 2Q20, before the resources from Vasta’s IPO) an
Slide 5: The digital transformation of postsecondary education
The digital transformation of postsecondary education Be Digital Go Digital 1st Phase 2nd Phase 3rd Phase Cultural change in Digitalization of K-12 Digitalization of Postsecondary Education management Vasta IPO Phase 1: Cultural change Phase 2: Digitalization of K12 Phase 3: Digitalization of Postse
Slide 6: The digital transformation of postsecondary education
The digital transformation of postsecondary education Digital Platform Services offered: Kroton On-Campus ✓ B2C: DL Undergraduate Services offered: ✓ B2B2C: DL Undergraduate and DL Graduate studies ✓ On-campus Undergraduate ✓ B2B: Content Services and Digital Services ✓ DL Undergraduate, acting as a
Slide 7: PEP fulfilled an important part and will end in 2020
PEP fulfilled an important part and will end in 2020 Penetration (%) of PEP in On-Campus enrollments 29 23 22 12 14 6 2016 2017 2018 2019 1H20 2H20E • PEP played an important role in supporting the transition to a new phase without FIES in On-Campus, serving as an accessible alternative for students
Slide 8: Vasta IPO successfully concluded
Vasta IPO successfully concluded • Listing of 24.9% of Vasta at NASDAQ, raising US$ 405 million, the largest IPO of a Brazilian education company ever carried out • Pricing of US$ 19.00, above the indicative range of US$ 15.50 to US$ 17.50 • Strong demand, 15x higher than the volume offered, with 28
Slide 9: Operating Results
Operating Results
Slide 10: Kroton and Platos Results
Kroton and Platos Results R$ million Kroton Net Revenue Recurring EBITDA1 • Revenue impacted by reduction in -26.8% -36.3% student base and lower on-campus 40.5% 35.2% ticket, partially compensated by 1,334.1 9.2% increase in the digital student base. 1,051.9 539.8 976.9 96.5 343.6 • EBITDA impacted
Slide 11: Vasta and Saber Results
Vasta and Saber Results R$ million Vasta Net Revenue Recurring EBITDA1 • Reduction in revenue reflecting the -23.8% 21.5% billing seasonality and Covid-19 144.7 144.7 1.6% impacts. In 1H20, revenue grew 9%. 110.2 110.2 31.2 -30.0 -12.0 • EBITDA impacted by higher marketing 2.3 costs. In the semester
Slide 12: Others and Cogna Results
Others and Cogna Results R$ million Others Net Revenue Recurring EBITDA1 • Decrease in revenue and EBITDA due 10.7% +291.9% to the seasonality of PNLD, hindering -45.5% 6.5% the quarterly comparison. 0.9% 61.9 61.9 6.6 2.2 33.7 0.6 2Q19 2Q19 PF 2Q19 2Q19 PF 2Q20 2 2Q20 2 EBITDA Margin Cogna Net Reve
Slide 13: Financial Performance
Financial Performance
Slide 14: Accounts Receivable, Coverage Ratio and ART
Accounts Receivable, Coverage Ratio and ART Cogna Kroton Platos Vasta Saber Outros Accounts Receivable and PDA 46.6% 17.8% 27.7% 17.0% 20.2% 50.3% 23.4% 8.9% 64.1% 35.5% 37.2% 15.2% 83 (R$ million) 5,450 4,853 66 72 4,755 4,298 23 344 58 70 12 15 1,690 1,597 2,441 258 31 10 11 51 2,541 60 60 58 2,90
Slide 15: Accounts Receivable, Coverage Ratio and ART (Kroton)
Accounts Receivable, Coverage Ratio and ART Kroton Accounts Receivable and PDA Average Receivables Term (R$ million) (Days) 58.0% 48.3% 49.8% 32.2% 28.5% 3,219 17.1% 2,603 1,867 1,257 1,367 1,249 446 267 592 677 213 441 1,346 1,352 133 127 121 91 1,036 926 127 76 319 134 2Q19 2Q20 2Q19 2Q20 2Q19 2Q2
Slide 16: Capex, Investments in Expansion and Operating Cash Generation
Capex, Investments in Expansion and Operating Cash Generation Capex and Investments in Expansion OCG After Capex and Investments in Expansion R$ million and % NR R$ million -48% -35% 44.8% 9.9% 14.7% 6.5% 52.8 88 18.6 120.6 57 70.8 2Q19 2Q20 2Q19 2Q20 1 Capex Investments in Expansion In 2Q20, the su
Slide 17: Solid cash position and debt level
Solid cash position and debt level Solid cash position and leverage Elongated debt amortization schedule -8,537 Short 1,330 -5,103 -4,712 2,632 Term 2,250 2,232 7,208 137 254 3,727 Long Term 835 400 37 -293 2020 2021 2022 2023 2024 2025 Loans and Other ST Cash and Cash ST Accounts LT Accounts To t a
Slide 18: Closing Remarks
Closing Remarks
Slide 19: Closing Remarks
Closing Remarks • 2020.2 enrollment process being carried out 100% digitally. Amplification of the trends observed in 2020.1: higher pressure in on-campus education and higher growth in digital education Kroton • Reenrollments can be affected by more restrictive renegotiation policies • More details
Slide 20: Investor Relations
Bruno Giardino bruno.giardino@kroton.com.br Pedro Gomes pedro.gsouza@kroton.com.br Investor Relations Ana Troster ir.cogna.com.br ana.mtroster@kroton.com.br