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Results 4Q24 March 13, 2025
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Disclaimer O material que segue é uma apresentação de informações gerais da Cogna Educação S.A (“Cogna”). Tratam-se de informações resumidas sem intenção de serem completas, que não devem ser consideradas por investidores potenciais como recomendação. Esta apresentação é estritamente confidencial e não pode ser divulgada a nenhuma outra pessoa. Não fazemos nenhuma declaração nem damos nenhuma garantia quanto à correção, adequação ou abrangência das informações aqui apresentadas, que não devem ser usadas como base para decisões de investimento. Esta apresentação contém declarações e informações prospectivas nos termos da Cláusula 27A da Securities Act of 1933 e Cláusula 21E do Securities Exchange Act of 1934. Tais declarações e informações prospectivas são unicamente previsões e não garantias do desempenho futuro. Advertimos os investidores de que as referidas declarações e informações prospectivas estão e estarão, conforme o caso, sujeitas a riscos, incertezas e fatores relativos às operações e aos ambientes de negócios da Cogna e suas controladas, em virtude dos quais os resultados reais de tais sociedades podem diferir de maneira relevante de resultados futuros expressos ou implícitos nas declarações e informações prospectivas. Embora a Cogna acredite que as expectativas e premissas contidas nas declarações e informações prospectivas sejam razoáveis e baseadas em dados atualmente disponíveis à sua administração, a Cogna não pode garantir resultados ou acontecimentos futuros. A Cogna isenta-se expressamente do dever de atualizar qualquer uma das declarações e informações prospectivas.. Esta apresentação não constitui oferta, convite ou solicitação de oferta de subscrição ou compra de quaisquer valores mobiliários. Esta apresentação e seu conteúdo não constituem a base de um contrato ou compromisso de qualquer espécie.
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690 2020 2021 2022 2023 2024 1,260 1,460 1,736 2,174+33.2% 240 494 540 653 2020 2021 2022 2023 2024 1,045+44.5% Achievement of the Recurring EBITDA and OCG after Capex guidance for 2024 Recurring EBITDA (R$ million) OCG after Capex (R$ million) Guidance¹ 2,100 Guidance 1,000 R$ 1.05 Billion Exceeding the guidance R$ 2.17 Billion Reaching the guidance range 1- Guidance range for Recurring EBITDA: between R$ 2.1 billion and R$2.4 billion. CAGR CAGR
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4 Message from Management ✓ Net Revenue of Cogna growing double digits in 4Q24 +13.2% and +8.9% in 2024; ✓ Growth in Recurring EBITDA of +47.2% with strong margin expansion +8.7p.p., the fifteenth consecutive quarter of value generation increase; ✓ Saber exceeded the Recurring EBITDA guidance, reaching R$257.8 million; ✓ Cash Generation after Capex of R$337.3 million (+40.1%) and Free Cash Flow of R$199.4 million (+34.6%) vs. 4Q23; ✓ In the year 2024, Net Income was R$879.9 million. With this result, the Company resumes dividend distribution; ✓ The Company's leverage reached 1.35x in 4Q24, the lowest level since 4Q18 with a reduction in Net Debt of R$397.1 million.
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Operational Performance Student Intake (thousand) Final Student Base (thousand) -5.6% On-Site -15.1% DL 6 -5.8% Kroton Med 7.422.9 273.0 2H23 6.921.7 231.8 2H24 303.3 260.4 -14.1% 33.5 140.0 780.6 2H23 37.2141.7 875.8 2H24 954.1 1,054.7 10.5% +1.2% On-Site +12.2% DL +11.0% Kroton Med ✓ Student base with double-digit growth (+10.5%); ✓ Maintaining a student base of over 1.0 million, even in a more challenging macroeconomic scenario. ✓ In 2H24, we faced challenges in intake: i. lower intake of Prouni students, as we had already exceeded the minimum required for POEB; ii. intentional decrease in actions to recover dropouts, due to high cost and low return; iii. more challenging general intake cycle. Semester Dropout Rate Kroton Med On-Site DL 20.6% 13.4% 15.2% 21.9% 2H23 20.2% 13.4% 14.2% 21.4% 2H24 Kroton Total On-Site Kroton Med DL ✓ Quality of intake, process improvement, and customer centricity have increased student engagement.
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Net Revenue Accumulated (R$ million) +14.3% On-Site +18.8% DL +10.4% Kroton Med 194.1 275.4 498.8 4Q23 214.3 314.8 592.7 4Q24 968.3 1,121.8 15.9% Kroton Med On-Site DL 694.0 1,120.0 1,826.6 2023 790.0 1,123.6 2,142.8 2024 3,640.6 4,056.4 11.4% +0.3% On-Site +17.3% DL +13.8% Kroton Med 7 ✓ Double-digit increase in the quarterly Net Revenue of Kroton (+15.9%); ✓ Growth across all lines due to: i. increase in volumes in the latest intake cycles; ii. improvement in re-enrollment; iii. price adjustment for veteran students; iv. adjustment of discounts for inactive students. Quarter (R$ million) ✓ Year-to-date, Kroton's Net Revenue grew by 11.4%; ✓ Double-digit increase in the Net Revenue of DL (+17.3%) and Kroton Med (+13.8%) year-to-date.
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Financial Performance Gross Profit - Quarter (R$ million) +29.2% On-Site +20.1% DL +9.9% Kroton Med 4Q23 4Q24 758.4 910.5 140.5 155.5 462.4 154.4 201.0 555.1 20.1% Kroton Med On-Site DL 2023 2024 2,895.0 3,276.2 489.6 692.6 1,712.8 573.8 692.9 2,009.5 13.2% 0.0% On-Site +17.3 DL +17.2% Kroton Med Gross Margin - Quarter 8 ✓ +20.1% increase in quarterly Gross Profit, due to a higher share of DL course revenue and efficiency gains in forming classes with a larger number of students; ✓ +1.2p.p. expansion of Gross Margin year-to-date, resulting in a Gross Profit of R$3,276.2 million. +7.4p.p. vs 4Q23 On-Site +1.0p.p. vs 4Q23 DL -0.3p.p. vs 4Q23 Kroton Med Gross Profit – Accumulated (R$ million) +2.8p.p. vs 4Q23 Kroton Total
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Costs and Expenses (R$ million) Selling and Marketing Expenses 4Q23 PDA Corporate Expenses Operating Expenses ✓ Reduction of 1.2 p.p. in Corporate Expenses, due to efficiency gains from processes, systems, and automation; ✓ Reduction of 10.3p.p.in Operating Expenses, due to the reversal of R$35.0 million in contingencies related to tax lawsuits in 4Q24, recorded in 2022 under the same line; ✓ Increase in PDA/NOR from 9.6% to 21.9%, due to the change in the allocation of discounts for inactive students, which in 4Q24 started to be allocated in this line. Specifically in this quarter, we allocated the discounts applied in the last six months, in addition to the return of the provision reversed in 3Q24. Excluding these events, the PDA/NOR would be 9.9%; ✓ Reduction of 6.8p.p in Selling and Marketing Expenses, following our strategy of concentrating marketing investment in odd-numbered quarters. 91- The total costs and expenses do not inclued the line fpr Interest and Penalties. 29.6% 19.3% 9.6% 21.9% -10.3p.p. +12.3p.p. -6.8p.p. -1.2p.p. % NOR 4Q24 14.7% 7.9% 4.8% 3.6% Direct Costs 21.7% 18.8% -2.9p.p. 4Q23 40.0 4Q24 778.8 802.3 46.7 93.0 286.6 142.6 209.9 245.9 216.3 88.8 211.3 3.0%
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Costs and Expenses – Year (R$ million) Selling and Marketing Expenses 2023 PDA Corporate Expenses Operating Expenses ✓ Reduction of 0.5p.p in Corporate Expenses and 5.4p.p. in Operating Expenses, due to efficiency gains from processes, systems, and automation; ✓ Increase in PDA/NOR from 10.4% to 12.7%, due to the change in the allocation of discounts for inactive students, which in 4Q24 started to be allocated in this line. Specifically in this quarter, we allocated the discounts applied in the last six months. 101- The total costs and expenses do not inclued the line fpr Interest and Penalties. % NOR 2024 Direct Costs 141.2 2023 136.5 2024 2,598.7 2,689.0 378.7 935.5 397.8 745.5 515.1 821.5 435.7 780.2 3.5% 25.7% 20.3% 10.4% 12.7% -5.4p.p. +2.3p.p. -0.2p.p. -0.5p.p. 10.9% 10.7% 3.9% 3.4% 20.5% 19.2% -1.3p.p.
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Recurring EBITDA and Margin EBITDA ✓ Significant increase of 55.4% in Recurring EBITDA in 4Q24 with an expansion of 7.4p.p. in EBITDA margin, reaching 29.1%; ✓ Year-to-date Recurring EBITDA reached R$1,421.0 million, representing a 24.2% increase compared to the previous year, driven by: i. growth in gross margin; ii. reduction in general and administrative expenses, , due to the reversal of R$35.0 million in contingencies related to tax lawsuits in 4Q24, as mentioned earlier; iii. reduction in sales and marketing expenses by approximately R$50 million; iv. efficiency gains in corporate expenses. 11 Quarter (R$ million) Accumulated (R$ million) 4Q23 4Q24 210.4 327.0 55.4% 2023 2024 1,144.2 1,421.0 24.2%21.7% 29.1% 31.4% 35.0% Recurring EBITDA Margin
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39.2 514.9 4Q23 35.843.8 619.3 4Q24 554.1 698.9 26.1% ✓ Subscription grows 20.3% in the quarter and 14.4% year-to-date, driven by the performance of Core Content and increased contribution from Complementary Solutions; ✓ Vasta's Net Revenue totaled R$1,674 million, representing an increase of 12.6% vs. 2023; ✓ Increase of 29.1% in B2G in 2024, as a result of the performance of contracts signed throughout the period. Net Revenue Quarter (R$ million) Accumulated (R$ million) +11.6% +20.3% 13 n.a. 81.2 127.0 1,278.1 2023 104.9 107.0 1,462.3 2024 1,486.3 1,674.2 12.6% -15.7% +14.4% +29.1% B2G No-Subscription Subscription
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✓ Improvement of 2.1p.p. in PDA, even considering a more restrictive credit scenario; ✓ Improvement of 1.4p.p. in Operating Expenses, due to process, system, and automation improvements; ✓ Increase of 4.9p.p. in Direct Costs, resulting from a seasonal effect in production costs linked to the mix of products and services delivered in the period. 14 Costs and Expenses¹ (R$ million) Selling and Marketing Expenses 4Q23 Operating Expenses Direct Costs Corporate Expenses PDA 3.2% 3.9% 5.2% 3.1% 5.0% 3.6% -0.7p.p. -2.1p.p. -1.4p.p. -1.8p.p. +4.9p.p. % NOR 4Q24 12.1% 10.3% 32.2% 37.1% 17.6 29.0 27.7 67.1 178.6 4Q23 17.521.8 25.3 72.2 259.6 4Q24 320.0 396.4 23.9% 1- The total costs and expenses do not inclued the line fpr Interest and Penalties.
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✓ Improvement of 0.6p.p. in PDA, even considering a more restrictive credit scenario; ✓ Improvement of 1.8p.p. in Operating Expenses, due to process, system, and automation optimization. 15 Costs and Expenses¹ - Year (R$ million) Selling and Marketing Expenses 4Q23 Operating Expenses Direct Costs Corporate Expenses PDA % NOR 4Q24 53.355.8 2023 59.553.0 2024 1,064.3 1,162.1 141.0 246.1 568.1 128.1 282.7 638.8 9.2% 3.6% 3.6% 3.8% 3.2% 9.5% 7.7% - -0.6p.p. -1.8p.p. +0.3p.p -0.1p.p 16.6% 16.9% 38.2% 38.1% 1- The total costs and expenses do not inclued the line fpr Interest and Penalties.
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Recurring EBITDA e Margem EBITDA Quarter (R$ million) Accumulated (R$ million) 16 ✓ 28.1% growth in Recurring EBITDA driven by operational efficiency gains and sales mix due to the growth of Subscription products; ✓ Recurring EBITDA Margin growing by 0.7p.p. compared to 4Q23; ✓ Recurring EBITDA grew double-digits (+20.2%) year-to-date, demonstrating the solid growth of Vasta's businesses. 4Q23 4Q24 234.4 300.3 28.1% 2023 2024 416.8 501.0 20.2% 42.3% 43.0% 28.0% 29.9% Recurring EBITDA Margin
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Net Revenue Quarter (R$ million) 18 4Q23 4Q24 402.1 379.8 -5.5% Accumulated (R$ million) 2023 2024 807.9 779.3 -3.5% ✓ Reduction in Net Revenue for the quarter and year-to-date due to: i. reduction in NBTP Net Revenue, as the commercial calendar includes only Repurchases; ii. sale of higher education book operations (SETS). ✓ Growth in Languages Net Revenue (+75.4%) and Other Services (+92.2%) in 4Q24 partially offsets the aforementioned decline.
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Recurring EBITDA and EBITDA Margin 19 2023 2024 175.2 257.8 47.2% Quarter (R$ million) Accumulated (R$ million) ✓ Saber exceeding Recurring EBITDA guidance, reaching R$257.8 million; ✓ Reduction in Recurring EBITDA for the quarter due to the NBTP repurchase year; ✓ Recurring EBITDA Margin was 50.1% in 4Q24, an expansion of 23.5p.p vs. 4Q23; ✓ 47.2% growth in Recurring EBITDA year-to-date; ✓ EBITDA Margin expansion of 11.4p.p. vs. 2023. 4Q23 4Q24 107.2 190.3 77.6% 26.7% 50.1% 21.7% 33.1% Recurring EBITDA Margin Guidance R$230.0
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✓ In 4Q24, Cogna's Consolidated Net Revenue grew by 13.2%, reaching R$2,160.6 million, as a result of revenue growth in all business units; ✓ Year-to-date, Net Revenue reached R$6.4 billion, driven by growth in Kroton (+11.4%) and Vasta (+12.6%), which offset Saber's result, highlighting the importance of having a diversified portfolio. Net Revenue Quarter (R$ million) 21 4Q23 4Q24 1,908.9 2,160.6 13.2% Accumulated (R$ million) 2023 2024 5,895.5 6,422.4 8.9%
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Recurring EBITDA and EBITDA Margin Accumulated (R$ million) 22 Quarter (R$ million) 4Q23 4Q24 551.9 812.3 47.2% 2023 2024 1,736.1 2,174.4 25.2% ✓ Double-digit growth both in the quarter and year-to-date, demonstrating the Company's commitment to value generation; ✓ EBITDA Margin gain of 8.7p.p. in the quarter and 4.4p.p. year-to-date, reflecting efficiency gains in Kroton, Vasta, and Saber; ✓ Year-to-date, Cogna's Recurring EBITDA reached R$2,174.4 million, reaching the guidance range of R$2,100 – R$2,400 million, with 25.2% growth. 29.4% 33.9% 28.9% 37.6% Recurring EBITDA Margin Guidance R$2,100.0
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Net Profit Quarter (R$ million) Accumulated (R$ million) 23 2023 2024 -492.9 879.9 278.5% -8.4% 13.7% ✓ Year-to-date, Net Income reached R$879.9 million, due to: i. net Revenue optimization; ii. strong Cash Generation; iii. recurring EBITDA growth; iv. effect of contingency reversals. ✓ The completion of the turnaround process brought the resumption of profitability to the Company, allowing us to generate positive returns to shareholders through dividend payments; ✓ The Company resumes paying dividends in 2025. 4Q23 4Q24 -397.4 925.8 333.0% -20.8% 42.9% Net Margin
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Operating Cash Generation (OCG) after Capex Quarter (R$ million) Accumulated (R$ million) 24 4Q23 4Q24 240.8 337.3 40.1% 51.5% 48.0% ✓ In the 4th quarter, Operating Cash Generation (OCG) was R$337.3 million, a 40.1% increase compared to 4Q23, due to: i. revenue growth in Kroton and Vasta with better cash conversion; ii. receipt of NBTP . ✓ In 2024, OCG after Capex reached R$1,044.6 million, confirming the Company's commitment to guidance; ✓ Operating Cash Generation after Capex and Debt Service in the fourth quarter was R$199.4 million. Year-to-date, it was R$395.4 million.. 2023 2024 893.5 1,044.6 16.9% Guidance R$1,000.0 43.6% 41.5% Conversion of Recurring EBITDA into OCG
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25 Leverage and Indebtedness 4Q23 1Q24 2Q24 3Q24 4Q24 1,794 3,278 1,835 3,277 1,853 3,323 1,931 3,050 2,135 2,880 Adjusted EBITDA Net Debt ✓ At the end of 4Q24, the leverage indicator reached a level of 1.35x, the lowest leverage level since 4Q18. ✓ In 4Q24, the company advanced with Liability Management operations, finalizing the 14th debenture issuance in the amount of R$500 million, at a cost of CDI + 1.60% and a term of 5 years. The proceeds were used for the early redemption of the 6th debenture issuance, with a principal of R$500 million and a cost of CDI + 2.95%. ✓ With these operations, the company's weighted average cost was CDI + 1.65% and the duration was 28 months. 1.83x 1.79x 1.79x 1.58x 1.35x Net Debt/EBITDA 3.50x Covenants Average Cost CDI+ 2.16% 4Q23 2.13% 1Q24 1.93% 2Q24 1.82% 3Q24 1.65% 4Q24 -51 bps
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Loan and Financing Amortization Schedule (R$ million) Breakdown of Net Debt (R$ million) 26 Cash Position and Indebtedness ✓ Net debt reduced by R$397 million or 12.1% in 4Q24 compared to 4Q23, going from R$3,278 million to R$2,880 million, mainly due to the company's cash generation in the fiscal year. ✓ At the end of 4Q24, total Cash and Cash Equivalents amounted to R$ 1,332 million, a 25.7% decrease compared to 4Q23, due to Liability Management actions, which reduced gross debt by 16.8%. ✓ The next principal maturity will be in August 2025, in the amount of 500 million referring to the COGNA0 and COGNB0 series, followed by the COGN19 maturity in January 2026; ✓ In January 2025, we announced the completion of a share buyback program of approximately 44 million shares and announced a new program of approximately 144 million shares. 660 504 911 690 131 2025 2026 2027 2028 2029 >=2030 1,104 1- The schedule does not consider derivative financial instrument balances. 111 101 Loans and Financing Derivative Financial Instruments Accounts Payable Gross Debt Cash Net Debt 4,000 4,212 1,332 2,880
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27 We finished 2024 focused on our strategic pillars.... Growth Continuous growth in enrollment revenue and improvement in re-enrollment at Kroton, increased sales to B2G, and growth in subscription revenue. At Saber, increased sales of Acerta Brasil Solutions. Experience Efficiency Kroton won 10 major market experience awards, reinforcing our commitment to providing an incredible experience. We have the recognition and trust of our students. Efficiency gains in all business units through changes in the operational model, processes, and systems, as well as new technologies, allowing us to achieve Recurring EBITDA and Cash Generation guidance. People and Culture Innovation ESG Results of the annual Engagement Survey reinforce our commitment to valuing and enhancing employee experience and to building an increasingly inclusive and productive work environment. Maintaining consistency in our innovation journey, with a focus on the pillars of CVB and Open Innovation. We will continue in 2025 to drive new initiatives that unite technology, efficiency, and impact for our students and clients.. Celebrating the 26th edition of the Educator Nota 10 Award, an initiative that reaffirms our commitment to valuing quality education and educators. In addition to the IV Education & ESG Forum.
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Results 4Q24 March 13, 2025