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cogna EDUCAÇÃO EARNINGS RELEASE 3Q21 Belo Horizonte , November 12 , 2021 , Cogna Educação S.A. ( B3 : COGN3 ; OTCQX : COGNY ) - " Cogna " or the " Company " discloses today its results for the third quarter of 2021 ( 3Q21 ) . The Company's financial information is presented on a consolidated basis , in Reais , under the Brazilian Corporate Law and accounting practices adopted in Brazil ( BRGAAP ) , and the financial report standards ( IFRS ) , except when otherwise provided . FINANCIAL HIGHLIGHTS Values in R $ ( 000 ) Net Revenue Recurring EBITDA Recurring EBITDA Margin 3Q21 3Q20 Chg . % 2Q21 Chg . % 9M21 9M20 Chg . % 1,168,603 235,387 20.1 % 1,256,140 229,268 18.3 % -7.0 % 2.7 % 1,300,599 1.9 p.p. ( 121,898 ) ( 162,884 ) -10.4 % 192,914 82.0 % -13.0 % 183,407 80.0 % -25.2 % 2.5 p.p. 329,517 25.3 % ( 20,376 ) -1.6 % -10.1 % -28.6 % -5.2 p.p. 498.3 % 5.2 % 27,471 -8.9 p.p. 602.2 % 3,731,587 930,717 24.9 % ( 135,778 ) -3.6 % 4,256,128 790,145 18.6 % -12.3 % 17.8 % ( 256,062 ) 6.4 p.p. -47.0 % -6.0 % 389,976 181,895 2.4 p.p. 114.4 % 2.0 p.p. 8.3 % 73.6 p.p. 41.9 % Adjusted Net Income ( Loss ) ² Adjusted Net Margin Operating Cash Generation ( OCG ) after Capex³ OCG after Capex / Recurring EBITDA 23.0 % 18.9 p.p. 1 The EBITDA considers interest and arrears in the result and excludes the impacts of inventory appreciation ² Net Profit adjusted by amortization of intangible assets , inventory appreciation , recognition of impairment of assets , and write - off of deferred assets . 3 It considers organic CAPEX and investments with M & A and Expansion . • • • Net revenue of R $ 1,2 billion , a 7.0 % reduction reflecting the pressure on on - campus higher education and Vasta's revenues , whose results were partially offset by the growth shown in EAD ( distance learning ) higher education and the PNLD ( National Textbook Program ) revenues . Recurring EBITDA of R $ 235 million , with a margin of 20.1 % , as a result of improved performance at collection , higher timely payment by our students , and better efficiency with marketing and corporate expenses . Such improvement was reflected in a lower Provision for Doubtful Accounts ( PDA ) in paying higher education and installment products ( PEP / PMT ) compared to 3Q20 . Post - CAPEX operating cash generation ( OGC ) accumulated in the year of R $ 390 million , a growth of 114.4 % compared to 9M20 . This performance shows that we followed the correct strategy when choosing to close units in 2020 and focused on the growth of hybrid and digital education . Net debt / adjusted EBITDA in the last 12 months reached 2.07x , keeping leverage healthy and in line with 2Q21 . OPERATING HIGHLIGHTS Cogna : Completion of the extension of the debt profile with issuance debentures in the amount of R $ 900 million , funding of R $ 500 million in Vasta , and extension of the term for payment of R $ 220 million . With such operations , the average debt term went from 22 months to 28 months . Kroton : Growth of 37.8 % in the students ' intake ( ex - Prouni ) in the 2H21 cycle , highlighting both the on - campus and EAD segments , which had significant increases of 21.9 % and 40.3 % , respectively . A deep dive in the EAD segment , shows that the intake result was led by the 100 % Online and EAD Premium segments . As a result , the total undergraduate student base grew 7.8 % in 3Q21 , with emphasis on the digital student base , which grew 19.1 % in the same period . Additionally , Kroton registered a significant 8p.p. improvement of its on - time payments base , due to initiatives taken since 2020 . Vasta : End of Trade Cycle 2021 with 8.7 % growth in net revenue of the subscription segment . Trade Cycle 2022 with agreements growth ( ACV ) of 32 % of which , 20 % organic and 12 % due to the acquisition of Eleva . Both organic and inorganic segments can grow further until the end of the cycle CONFERENCE CALL ON THE RESULTS Date : November 12 | 2:00 pm Brasília , 12:00 pm New York | Phones : +55 ( 11 ) 3181-8565 , +55 ( 11 ) 4210-1803 | Password : Cogna 1