Vasta Platform : Q2 2022 Earnings Presentation

2Q22 Earnings Presentation

August 2022

DISCLAIMER

This presentation contains forward-looking statements that can be identified by the use of forward-looking words such as "anticipate," "believe," "could," "expect," "should," "plan," "intend," "estimate" and "potential," among others. Forward-looking statements appear in a number of places in this presentation and include, but are not limited to, statements regarding our intent, belief or current expectations. Forward-looking statements are based on our management's beliefs and assumptions and on information currently available to our management. Forward-looking statements speak only as of the date they are made, and we do not undertake any obligation to update them in light of new information or future developments or to release publicly any revisions to these statements in order to reflect later events or circumstances or to reflect the occurrence of unanticipated events. Such statements are subject to risks and uncertainties, and actual results may differ materially from those expressed or implied in the forward-looking statements. Further information on these and other factors that could affect our financial results is included in filings we have made and will make with the U.S. Securities and Exchange Commission from time to time, including in the section titled "Risk Factors" in our most recent Form F-1 and 424(b) prospectus. These documents are avaialble on the SEC Filings section of the investor relations section of our website at: https://ir.vastaplatform.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 EBITDA, Adjusted EBITDA, Free Cash Flow and Adjusted Cash Conversion Ratio, which are non-GAAP financial measures, together with their reconciliations, for the periods indicated. We understand that, although EBITDA, Adjusted EBITDA, Free Cash Flow and Adjusted Cash Conversion Ratio 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, Free Cash Flow and Adjusted Cash Conversion Ratio 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.

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Quarter Highlights

Net revenue grew 35% year-on-year in 2Q22 and 27% in the 2022 cycle to date, driven

by an acceleration in the growth of subscription revenue (+48% in the quarter and +33% in the cycle to date). In this quarter, Vasta not only consolidated the recovery of profitability but also delivered a strong cash flow generation.

Adjusted EBITDA was R$11 million in 2Q22, recovering from a loss of R$17 million in 2Q21. In the 2022 cycle to date, the adjusted EBITDA margin expanded 6.6 percentage points, to 32.3%, the highest margin for this period in our recent story.

Operating cash flow totaled R$103 million in 2Q22, a significant improvement versus last

year, driven by the recovery of operating results and better working capital dynamics.

As the present cycle approaches its conclusion, subscription revenue growth of 33% in the cycle to date converges to the 2022 ACV growth of 35%. Therefore, Vasta confirms the recognition of 100% of the 2022 ACV of R$1 billion by 3Q22.

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More than 85% of 2022 ACV already captured to date

	ACV Recognition(1)				Vasta guides for full recognition of 2022 ACV
	38.3%						within the 2022 cycle (4Q21 to 3Q22)
	34.7%			33.4%
			32.8%
							15.8%	17.4%		13.0%	14.6%
	4Q20	4Q21		1Q21	1Q22		2Q21	2Q22		3Q21	3Q22
Net Revenue	4Q20	4Q21	% Y/Y	1Q21	1Q22(2)	% Y/Y	2Q21	2Q22	% Y/Y	3Q21	3Q22

Subscription (ACV)	284	347	+22%	243	334	+37%	117	174	48%	96
Non-subscription	60	51	-14%	37	47	+25%	24	16	-33%	31
Total		343	398	+16%	281	381	+36%	141	190	35%	127

2Q22 net revenue 35% higher year-on-year

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(1) Calculated over the subscription revenue for the 2021 cycle, for 4Q20 to 3Q21. (2) Management's guidance for the 1Q22.

Net Revenue | 2Q22

Values in R$ (million)

Total100%

+35%

190

31

141

2Q212Q22

of net revenue	%

Subscription92%

+48%

174 31

117

112			167
5			7
2Q21				2Q21
		PAR		Ex-PAR		Eleva

Non-Subscription8%

-33%

24

16

2Q212Q22

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Note: The Business is comprised of two reportable operating segments: Content & EdTech Platform and Digital Platform. We are presenting in this slide a supplemental information in terms of the sub-segments composing the reportable operating ones