Arco Platform : 4Q21 & FY21 Earnings Presentation

Disclaimer

This presentation contains forward-looking statements as pertains to Arco Platform Limited (the "Company") within the meaning of the Private Securities Litigation Reform Act of 1995, which statements involve substantial risks and uncertainties. All statements other than statements of historical fact could be deemed forward looking, including risks and uncertainties related to statements about our competition; our ability to attract, upsell and retain customers; our ability to increase the price of our solutions; our ability to expand our sales and marketing capabilities; general market, political, economic, and business conditions, and our financial targets such as revenue, share count and IFRS and non-IFRS financial measures including gross margin, operating margin, net income (loss) per diluted share, and free cash flow.

We undertake no obligation to update any forward-looking statements made in this presentation to reflect events or circumstances after the date of this press release or to reflect new information or the occurrence of unanticipated events, except as required by law.

The achievement or success of the matters covered by such forward-looking statements involves known and unknown risks, uncertainties and assumptions. If any such risks or uncertainties materialize or if any of the assumptions prove incorrect, our results could differ materially from the results expressed or implied by the forward-looking statements we make. You should not rely upon forward-looking statements as predictions of future events. Forward-looking statements represent our management's beliefs and assumptions only as of the date such statements are made. Further information on these and other factors that could affect our financial results is included in filings we make with the Securities and Exchange Commission from time to time, including the section titled "Risk Factors" in our most recent Forms 20-F, 6-K and our Rule 424(b) prospectus. These documents are available on the SEC Filings section of the Investor Relations section of our website at:https://investor.arcoplatform.com/.

We prepared this presentation solely for informational purposes. The information in this presentation does not constitute or form part of, and should not be construed as, an offer or invitation to subscribe for, underwrite or otherwise acquire, any of our securities or securities of our subsidiaries or affiliates, nor should it or any part of it form the basis of, or be relied on in connection with any contract to purchase or subscribe for any of our securities or any of our subsidiaries or affiliates nor shall it or any part of it form the basis of or be relied on in connection with any contract or commitment whatsoever.

We have included in this presentation our Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Net Income, Adjusted Net Income Margin, Free Cash Flow and Adjusted Free Cash Flow, which are non-GAAP financial measures, together with their reconciliations, for the periods indicated. We understand that, although Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Net Income, Adjusted Net Income Margin, Free Cash Flow and Adjusted Free Cash Flow are used by investors and securities analysts in their evaluation of companies, these measures have limitations as analytical tools, and you should not consider them in isolation or as substitutes for analysis of our results of operations as reported under IFRS. Additionally, our calculations of Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Net Income, Adjusted Net Income Margin, Free Cash Flow and Adjusted Free Cash Flow may be different from the calculation used by other companies, including our competitors in the education services industry, and therefore, our measures may not be comparable to those of other companies.

KEY MESSAGES

2021 RESULTS: HEALTHY TOP LINE GROWTH AND EBITDA MARGIN WITHIN

GUIDANCE DESPITE

CHALLANGES

• • Net Revenues were R$460.8 million in 4Q21 (+55% YoY), reflecting the strong 2022 commercial cycle, leading to a top line of R$1,232.1 million in 2021 (+23% YoY or +18% YoY excluding M&As concluded in 2021)

• • Adj. EBITDA margin was 48.7% in 4Q21 and 35.0% for the 2021 fiscal year

  • • Excluding M&As concluded in 2021¹, margin was 36.0% for 2021, within guidance range of 35.5% - 37.5%

• • Adj. Net margin of 10.8% in 2021 reflected lower operating margin for 9M21 and higher finance costs

2022 ACV OF R$1,560 MM

REPRESENTS A STRONG

46% YOY GROWTH

• • Commercial cycle for the 2022 school year resulted in a 32% YoY organic growth

• • Core segment presented an organic growth of 32% YoY

• • Supplemental solutions delivered an organic growth of 35% YoY

• • We will continue to increase our share in the market due to our superior value proposition, while focusing on cross-sell to further boost growth

  PRIORITIES FOR 2022:

  STRONG GROWTH, EFFICIENCY, CASH GENERATION & ESG

  1) Businesses acquired in 2021 were not considered in the 2021 adjusted EBITDA margin guidance (Me Salva!, Eduqo, Edupass, COC and Dom Bosco).

• • Efficiency roadmap will allow Arco to benefit from its scale

  • • 2022 Adjusted EBITDA margin guidance maintained at 36.5% to 38.5%

• • Cash generation to improve as we combine a more efficient structure to a lower effective tax rate and better capital allocation

• • ESG Priorities for the year are improve the learning of our partner schools,

strengthen our diversity strategies and map the life cycle of our paper

3

4Q21 AND 2021

RESULTS

In R$, mm

Organic top line growth of 18% YoY in 2021 and Adj. EBITDA Margin of 36%², within guidance range

1) EBITDA adjusted for share-based compensation plan, M&A expenses, non-recurring expenses and effects related to COVID-19 pandemic. 2) Excluding business combination concluded in 2021 (MeSalva!, Eduqo, Edupass, COC and Dom Bosco). Detailed explanation on our Financial Statements for the period ended December 31, 2021.

Net Revenues

CoreSup.

Adjusted EBITDA¹

Adj. EBITDA¹

Adj. EBITDA Margin

Adj. EBITDA Margin (ex-M&A)²

4Q20

4Q21

51.9%

48.7%

42.5%

4Q20

2020

2021

38.0%

381.0

430.9

4Q21

2020

36.0% 35.0%

2021