Kroton Educacional : Day 2019 - Platos

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.

ONCE AGAIN, WE NOTICE MAJOR DRIVERS

THAT WILL BE KEY TO CREATING VALUE		DIGITAL
			TRANSFORMATION
I UNI	U N O P A R	ANH ANG UE R A	S O MO S	NE W B2 B BU S I NE S S
MO DE LS
A C Q U I S I T I O N	A C Q U I S I T I O N	A C Q U I S I T I O N	A C Q U I S I T I O N

2010

2011

2014

2018/2019

F OC U S ON			DI G I T A L I ZA T I ON			S C A L E A S A			F OC U S ON
						K 1 2 EDU C A T ION
EF F I C I EN C Y								V A L U E
			OF EDU C A T I ON					A N D B 2 B M A R K ET S
A N D QU A L IT Y					DR IVER

DIGITAL TRANSFORMATION IMPELLED THE STRUCTURING OF THE DISCOVERY PROJECT, WHICH HAS ALREADY PROVEN SUCCESSFUL, POSITIONING US FOR A NEW MARKET

DIGITAL TRANSFORMATION

DISCOVERY	RESULTS
PROJECT
Segregation and	Increase of ~40% in
autonomy of teams	new enrollments
New positioning of Kroton	Growth of ~30% in
Graduate Programs	revenue and EBITDA
New platform dedicated	Higher rating from
to the product	users (NPS)

OPERATION AS AN INTERNAL PLATFORM (197 IHL)

DISTANCE LEARNING	POTENTIAL
MARKET
TRENDS
Format gaining prominence in	New revenue sources for
client institutions
Brazil
DL undergraduate education will	Market size of ~34bn
account for biggest share of	Potential GMV of ~330bn
enrollments
	68M+ students with
Increase in student base	Secondary Education
(undergraduate and graduate)	+ 23M+ students with
	Postsecondary Education
	2,000+ Institutions without DL
	accreditation

DIGITAL TRANSFORMATION IMPELLED THE STRUCTURING OF THE DISCOVERY PROJECT, WHICH HAS ALREADY PROVEN SUCCESSFUL, POSITIONING US FOR A NEW MARKET

DIGITAL TRANSFORMATION

DISCOVERY	RESULTS
PROJECT
Segregation and	Increase of ~40% in
autonomy of teams	new enrollments
New positioning of Kroton	Growth of ~30% in
Graduate Programs	revenue and EBITDA
New platform dedicated	Higher rating from
to the product	users (NPS)

OPERATION AS AN INTERNAL PLATFORM (197 IHL)

DISTANCE LEARNING	POTENTIAL
MARKET
TRENDS
Format gaining prominence in	New revenue sources for
client institutions
Brazil
DL undergraduate education will	Market size of ~34bn
account for biggest share of	Potential GMV of ~330bn
enrollments
	68M+ students with
Increase in student base	Secondary Education
(undergraduate and graduate)	+ 23M+ students with
	Postsecondary Education
	2,000+ Institutions without DL
	accreditation