4Q16 Results March 17, 2017

Transcription

1 4Q6 Results March 7, 207

2 Disclaimer This material reflects management s expectations and may contain estimates related to future events. Any information, data, forecasts or future plans herein refer to estimates, and therefore cannot be taken as concrete evidence or a promise to the market. Ser Educacional is not responsible for investment operations or decisions taken based on the information herein. These estimates are subject to change without prior notice. This material has been prepared by Ser Educacional S.A. ( Ser Educacional" or the Company ) in accordance with the highest national and international standards and includes certain forward-looking statements that are primarily based on Ser Educacional s current expectations and projections of future events and financial trends that currently affect or may affect the Company s business, and therefore they are not guarantees of future performance. They are based on management s expectations and involve a number of risks and uncertainties that could lead the Company s financial situation and operating results to differ materially from those expressed in said forward-looking statements. Ser Educacional assumes no obligation to publicly update or revise any forward-looking statements. This material is disclosed solely for information purposes and should not be construed as a request or an offer to buy or sell any shares or related financial instruments. Accordingly, this presentation is not a recommendation of investment and should not be considered as such. It is not related to the specific investment objectives, financial situation or particular needs of any recipient, neither does it make a statement or provide a guarantee, either expressly or implicitly, related to the accuracy, completeness or reliability of the information herein. This presentation should not be regarded as a substitute to the recipients judgment. Any opinion expressed herein is subject to change without prior notice and Ser Educacional does not assume the obligation to update or revise them. 2

3 206 showed improvements in its main operational and financial indicators +5% Student base 4 New units +28% Courses base New distance learning headquarters + 9% Net revenue + 3.2pp Adjusted EBITDA Record net income R$230 million Strong financial position 3

4 Student base evolution On Campus Undergraduate Distance Learning Undergraduate On-Campus Graduate Distance Learning Graduate Technical Courses 4

5 New units and courses opening history Number of units evolution 57 Course base evolution Total Organic

6 Status of the 45 accreditations of on campus units with the Brazilian Ministry of Education Accreditation status Accreditation of Course / Unit Final Opinion SERES / Waiting for CNE Judgment Procedure for Publishing Order Accreditation Completed Accreditation Full Accreditation Year Region City Brand Year Region City Brand 205 NE Feira de Santana (BA) NASSAU 205 NE Olinda (PE) NASSAU 205 NE Jaboatão dos Guararapes (PE) NASSAU 205 NE Petrolina (PE) NASSAU 206 NE Cabo de Santo Agostinho (PE) NASSAU 206 NE João Pessoa (PB) NABUCO 206 NE Jaboatão dos Guararapes (PE) NABUCO 206 NE Maceió (AL) NABUCO Total Total N Boa Vista (RR) UNAMA 207 N Porto Velho (RO) UNAMA 207 N Rio Branco (AC) UNAMA 207 NE Fortaleza (CE) NASSAU 207 N Marabá (PA) UNAMA 207 NE Garanhuns (PE) NASSAU 207 NE Maracanaú (CE) NASSAU 207 NE Ananindeua (PA) NASSAU 207 MW Anápolis (GO) NASSAU Total

7 Focus on regional brands and reformulation of the southeast to operate the brand UNIVERITAS North 24k 0 0 On Campus units On Campus undergraduate students Distance Learning Center Undergraduate Distance Learning students Brazil k 5 6k 5 6 Northeast 37 90k 9 0 Southeast / Midwest 8 7k 6 0 Data: student base on Dec / 6 and units base of Mar / 7 7

8 Solid practices of quality control of teaching are efficient and sustainable in face of the growth of the student base CPC in number of courses evaluated and % by concept ENADE in number of courses evaluated and % by concept IGC in number of units evaluated and % by concept +4% +48% % +69% % % % 3 90% 40 77% % 6% 0 4 0% 20% 8 8% % % 48% 50% 60% % 52% 45% 40% % 94% % 7 9% 3 00% 0 0 9% 87% 6% CPC 2 CPC 3 and 4 ENADE and 2 ENADE 3 and 4 IGC 2 IGC 3 and 4 8

9 Q7 Intake Status of Undergraduate Student Enrollment 03/6/207 03/6/206 % Undergraduate enrollments ,8% On Campus ,0% Distance learning ,5% Student Finacing 03/6/207 FIES 207: total 5,800 (,00 upperclassmen) 48% of the 2,000 seats authorized by MEC FIES 206 (3/5): 8,700 total (,500 upperclassmen), 46% of the 9,00 seats authorized by MEC PraValer,000 students x 300 in Q6 Educred 400 mil students x 300 in Q6 9

10 Results summary Financial Highlights (R$MM) 4Q6 4Q5 (EX NPV) (%) (EX NPV) (%) Net Revenue %,25.4, % Gross Profit % % Gross Margin 50.% 47.2% 2.9 p.p. 54.6% 53.8% 0.8 p.p. Adjusted EBITDA % % Adjusted EBITDA Margin 24.7% 2.5% 3.2 p.p. 3.5% 28.8% 2.6 p.p. Net Income % % Net Margin.6% 6.5% 5. p.p. 20.5% 6.8% 3.7 p.p. Highlights Average ticket increase in 0.6% between 4Q5 and 4Q6 Improvement in all financial margins Accounts receivable under control and behavior of the PDA as expected for the second half Adjusted net income of R$ 32.2 mm in 4Q6 and R$40.0 mm excluding non-recurring items 0

11 Cash generation analysis Cash Flow Adherence to Adjusted EBITDA Cash Conversion (Adjusted EBITDA Taxes Working Capital Capex (ex acquisitions) - Paid Interest + Adjustment payment FIES*) % of EBITDA Operating Cash Flow Analysis (OCF) OCF - Financial statements Minimum rent paid (39.0) (38.5) Interest booked % 89% Provision for doubtful accounts (48.7) (47.7) OCF - Adjusted by interest paid and PDA Portion of FIES received the following year* OCF - Adjusted by FIES payments Reported Adjusted EBITDA 2M OCF / EBITDA Adherence 07.4% 8.7% * FIES values received in the following year, adjusted by management for reference to the conversion calculation of OCF in EBITDA and cash conversion

12 Consistent track record Net Revenue (R$MM) Gross Profit (R$MM) and Gross Margin (%) 705,032,25 Gross Profit Gross Margin % 62% 54% 55% Adjusted EBITDA (R$MM) and Adjusted EBITDA Margin (%) Net Income (R$MM) and Net Margin (%) % 35% 29% 32% 26% 30% 7% 2% Adjusted EBITDA Adjusted EBITDA Margin Net Income Net Margin 2

13 History of return to shareholders Return on Equity (ROE) Return on Invested Capital (ROIC) 34% 35% 29% 30% 28% 29% 26% 26% 23% 25% 24% 25% 22% 9% 24% 5% ROE Adjusted ROE ROE: Net Income / Shareholders' Equity Adjusted ROE: Net Income Adjusted for Non-Recurring Effects / Shareholders' Equity ROIC Adjusted ROIC ROIC: (Net Income - Dividends) / (Shareholders Equity + Net Debt) Adjusted ROIC: (Net Income adjusted for non-recurring effects - Dividends) / (Shareholders Equity+ Net Debt adjusted by the accounts receivable of the FIES 205 agreement) 3

14 Aging of accounts receivables Aging of Monthly tuition fees (R$ '000) 4Q6 % Chg. 4Q5 % Chg. Overdue by up to 30 day 8, % 2,09 7.3% Overdue from 3 to 60 days 4, % 9,867 4.% Overdue from 6 to 90 days 3, % 8, % Overdue from 9 to 80 days 8,05 2.4% 2,60 8.0% Overdue more than 80 days 9, % 26, % TOTAL 84, % 69, % % of Gross Accounts Receivable 8.7% 6.4% Aging of Negotiated Agreements (R$ '000) 4Q6 % Chg. 4Q5 % Chg. Not yet due 4, % 4, % Overdue by up to 30 day 8, % 5, % Overdue from 3 to 60 days 7,035.6% 4, % Overdue from 6 to 90 days 6,57 0.% 4, % Overdue from 9 to 79 days 2, % 8, % Overdue more than 80 days 2, % 8,57 8.2% TOTAL 60, % 46, % % of Gross Accounts Receivable 3.5%.0% 4

15 Capital expenditure (R$MM) 206 Main Investments: R$8.MM Investments evolution Software Licenses 7.3% MEC Licenses 5.2% Equipment / Library / IT 27.5% Intangibles and Others 8.2% Property acquisition / Construction / Maintenance of campuses 5.8% % 23% 0% 7% Capex Ex Acquisitions % Net Revenue Delivery of Aracaju and Salvador buildings and expansion of João Pessoa and Caruaru (Q6) Expansion in Fortaleza, medicine unit in Recife, parking lot in Aracaju (2Q6) Delivery of medicine unit in Recife and laboratories (3Q6) Library and equipment (4Q6) 5

16 Cash and net indebtedness (R$ million) Cash and Cash Equivalents (R$ MM) and % of Net Revenue in Cash Net Debt and Net Debt / Adjusted EBITDA % 37 9% 27% 36% Cash and Cash Equivalents Net revenue in cash Net Debt Net Debt / Adjusted EBITDA (LTM) 6

17 Gross indebtedness and amortization schedule (R$ MM) Gross Debt Debt Amortization Schedule Short term Long term Commitments Short Term Between one and two years Between two and three years 79 Between three and four years Debt Debenture Acquisitions Between four and five years Over five years In July / 6, Fitch assigned the "A + (bra)" Long-Term National Initial Rating with a stable outlook. Commitments payable refer to acquisitions made and not yet settled 7

18 Ser Educacional is prepared to value to shareholders in this new phase of the Brazilian post-secondary education market 206 results represent a resumption of the Company's profitability and stabilization levels after the FIES impacts in On Campus organic growth project and Distance Learning in significant evolution between 207 and Strong financial position to resume acquisitions 4 Operational, academic and financial controls advance significantly in the 3 rd generation of OPS (Operational Platform Ser) Beach Without Barrier Project allows people with physical disabilities to have access to leisure on the beach and to the sea bath. 8

19 Contacts In Memorian: Luis Carlos Vieira da Silva ( ) Fiscal Council member Jânyo Diniz CEO João Aguiar CFO Rodrigo de Macedo Alves IRO Geraldo Soares IR Assistant Manager Phone: +55 () Website: 9