B2B POSTSECONDARY EDUCATION PAULO DE TARSO€¦ · This presentation does not constitute any offer, invitation or request to subscribe to or purchase any securities. This presentation

B 2 B P O S T S E C O N D A R Y E D U C A T I O N P A U L O D E T A R S O

DISCLAIMER

The following material is a presentation of general information regarding the Company. 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 and may not be disclosed to any other persons. We make no representations or warranties as to the

accuracy, adequacy or scope of the information presented herein, which should not be used as the basis for any investment decisions.

This presentation contains forward-looking statements and information pursuant to Clause 27A of the Securities Act of 1933 and Clause 21E of the Securities Exchange Act of 1934. Said

forward-looking statements are merely forecasts and do not represent guarantees of future performance. Investors are cautioned that said forward-looking statements and information are and

will be, as applicable, subject to risks, uncertainties and factors related to the business operations and environments of the Company and its subsidiaries, and the actual results of said

companies may differ materially from the future results expressed or implied by said forward-looking statements and information.

Although the Company believes that the expectations and assumptions contained in said forward-looking statements and information are reasonable and based on the data currently available to

its management, it cannot guarantee future results or events. The Company does not undertake any liability for updating any forward-looking statements or information.

This presentation does not constitute any offer, invitation or request to subscribe to or purchase any securities. This presentation and its contents do not constitute the basis of any contract or

commitment.

2018/20192010 2011 2014

ONCE AGAIN, WE NOTICE MAJOR DRIVERS THAT WILL BE KEY TO CREATING VALUE

S O M O S A C Q U I S I T I O N

DIGITAL TRANSFORMATION

F O C U S O N K 1 2 E D U C A T I O N

A N D B 2 B M A R K E T S

I U N I A C Q U I S I T I O N

U N O P A R A C Q U I S I T I O N

A N H A N G U E R A A C Q U I S I T I O N

F O C U S O N E F F I C I E N C Y

A N D Q U A L I T Y

D I G I T A L I Z A T I O N O F E D U C A T I O N

S C A L E A S A V A L U E D R I V E R

N E W B 2 B B U S I N E S S M O D E L S

DIGITAL TRANSFORMATION IMPELLED THE STRUCTURING OF THE DISCOVERY PROJECT, WHICH HAS ALREADY PROVEN

SUCCESSFUL, POSITIONING US FOR A NEW MARKET

OPERATION AS AN INTERNAL PLATFORM (197 IHL)

Segregation and autonomy of teams

New positioning of Kroton Graduate Programs

New platform dedicated to the product

Increase of ~40% in new enrollments

Growth of ~30% in revenue and EBITDA

Higher rating from users (NPS)

Format gaining prominence in Brazil

DL undergraduate education will account for biggest share of

enrollments

Increase in student base (undergraduate and graduate)

New revenue sources for client institutions

Market size of ~34bn

Potential GMV of ~330bn

68M+ students with Secondary Education

+ 23M+ students with Postsecondary Educat ion

2,000+ Inst itut ions without DL accreditat ion


DISCOVERY PROJECT

RESULTS DISTANCE LEARNING TRENDS

POTENTIAL MARKET



OPERATION AS AN INTERNAL PLATFORM (197 IHL)









enrollments





68M+ students with Secondary Education




DISCOVERY PROJECT


POTENTIAL MARKET

DL FORMAT GAINING SHARE IN BOTH UNDERGRADUATE AND GRADUATE EDUCATION

2013 2018 2023E

UNDERGRADUATE ENROLLMENTS1

(in Millions)

GRADUATE STUDENTS2

(in Millions)

GROWTH OF DISTANCE LEARNING FORMAT

UNDERGRADUATE AND GRADUATE EDUCATION

DISTANCE LEARNING TRENDS


DL undergraduate education will account for biggest share

of enrollments

Increase in student base (undergraduate and graduate

education)

1: ABMES May/18 study and INEP 2013/18 Census; 2: PNAD Contínua IBGE

2017 2018 20192016











enrollments



DISCOVERY PROJECT





68M+ students withSecondary Education



POTENTIAL MARKET

OPERATION AS AN INTERNAL PLATFORM (197 IES)

INTERNAL ESTIMATES INDICATE TAM OF ~R$330 BILLION, CONSIDERING THE ENTIRE POPULATION WITH SECONDARY AND UNDERGRADUATE EDUCATION

MARKET SIZEIN R$ BN

POTENTIAL MARKETIN R$ BN

POTENTIAL MARKET

New revenue sources for clientinstitutions






BRAZIL HAS 2,000+ INSTITUTIONS WITHOUT DL ACCREDITATION, WHICH COULD BETTER EXPLORE THE POTENTIAL OF THIS FORMAT IN THEIR REGIONS

DISTRIBUTION OF PRIVATE INSTITUTIONS WITH AND WITHOUT DL ACCREDITATION Local institutions have greater brand

awareness, both among students and the

labor market, but lower share in

distance learning education

POTENTIAL MARKET

New revenue sources for clientinstitutions






Source: 2018 Postsecondary Education Census- INEP

THE POSTSECONDARY B2B MARKET CONSISTS OF 4 LARGE SEGMENTS AND ACCOUNTS FOR ~US$3 BN GLOBALLY, MOSTLY CONCENTRATED IN THE USA

MARKET GROWTH

TOTAL OPM REVENUE, IN US$ BN

2014 2015 2016 2017 2018

Source: HolonIQ, Anatomy of an OPM; MOOC: Massive Open Online Courses

OUR PLATFORM IMPACTS ALL STAGES OF A STUDENT'S ACADEMIC CYCLE, SUITED FOR BOTH GRADUATE AND UNDERGRADUATE EDUCATION


GRADUATE EDUCATION

Platform prepared to offer all services, which we already use internally


Focus on content production

Impact also on services to institutions, their students and

regulatory requirements

UNDERGRADUATEWe serve the undergraduate education market with SSA and ENADE products

SSA: Saraiva Learning Solution

ACCELERATED HISTORIC GROWTH, WHICH WILL BE LEVERAGED BY NEW EXTERNAL CLIENTS STARTING FROM 2020

Evolution of the technological platform

Conclusion of other services for undergraduate education

Roll-out for more third-party institutions

Validation of growth thesis for Kroton graduate education

Consolidation of internal PS B2B platform

GRADUATE NET REVENUE

2017 2018 2019 E 2020 2021 2022

JOINING THE PIECES

IN A CONSTANTLY EVOLVING LABOR MARKET, HIGHER EDUCATION DRIVES THE PROFESSIONAL SUCCESS OF STUDENTS

PROVEN TRACK RECORD SERVING ~200 INSTITUTIONS, COMBINED WITH THE CONTENT QUALITY ENDORSEMENT VIA SARAIVA EDUCAÇÃO

POTENTIAL TO GENERATE NEW SOURCES OF INCOME FOR PLATOS’ PARTNER INSTITUTIONS

HIGHER EDUCATION SEGMENT IS

TRANSFORMING ITSELF, WITH HIGH GROWTH IN DL

ONE-STOP-PARTNER IN HIGHER EDUCATION: SERVICES

OFFERING THROUGH NEW PLATFORM AND BUSINESS

MODEL POWERED BY TECHNOLOGY

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B2B POSTSECONDARY EDUCATION PAULO DE TARSO€¦ · This presentation does not constitute any offer, invitation or request to subscribe to or purchase any securities. This presentation