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| Statement |
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| The cash flow from operations, was also up even more, 71% in the full-year, which led to an adjusted cash flow conversion rate of 96% |
| We saw an untapped opportunity to increase the intake of this brand in the second intake cycle of the year and then we grew 59% over the previous year |
| We had very strong performance in the third quarter, a smaller performance in the fourth quarter |
| These levers are not only personal optimization, but also gains of scale in contracts and better retention practice at Uniasselvi |
| In the case of UniCesumar, the hubs are also way better and bigger than the ones of the peers |
| So in this scenario, we're showing here that Vitru would be quite well-positioned and the changes in regulations may even benefit us |
| But this is just to illustrate the positive, I'd say, working capital environment that we managed to have in the second half of last year |
| This will result over time in higher retention rates, lower PDA and higher EBITDA margins as well |
| For PDA, at the right, as it was the case in the third quarter of last year, the fourth quarter of ‘23 was very positive for us in terms of cash collection |
| So, this is also a very promising area and we do believe that we can offer complementary products to our students throughout their adult life |
| And Continuing Education on the right, a strong growth here in the Continuing Education course segment, sorry |
| So expect promising results for this business over the next years |
| In the case of Uniasselvi, intake grew by 13%, which is a strong performance considering that the quite high comparison base, the quite tough comp, knowing that the intake of Uniasselvi grew at an annual rate of almost 30% between 2019 and 2022 |
| So, we were able last year to grow intake tickets quite well |
| Gross profit increasing 59%, so margin went up by four points from 61.9% to 65.9% in the year and the EBITDA margin went up by 2.7%, reaching as I mentioned before 36.6% in the year |
| So for cost opportunities, I mean, we are, I mean, quite well advanced in the integration |
| So, net revenue in our core segment of Digital Education Undergraduate, up 42% in the year with overall consolidated net revenue increasing 49% year-on-year |
| So R$225 million in cash flow from operations in the semester, is a very nice level and a very important cash conversion as well |
| And I mean, the one-off effect in cash that we mentioned, we have a very strong collection in the third quarter of last year |
| So here on the right, you can see that we as you know, that we have been gaining market share throughout the last years in a booming business |
| Adjusted EBITDA increased even further, about 60% in the year |
| In the case of UniCesumar, we have noticed a clear improvement in the pricing throughout last year, so a 13% increase semester-on-semester |
| So Page 27, the integration, which is called here Project Ilumina, integration with UniCesumar is advanced and is advancing faster than expected |
| We also managed to beat our estimation for commercial synergies |
| So, even here in the south of the country grew by 9% year-on-year, an important growth of 20% in the Southeast, 22% in the Northeast and now the number of hubs also increasing by more than 300 hubs year-on-year with important increase also in the Southeast |
| We do believe that we are better prepared than anybody else to adapt to this type of requirement for more in person hours or percentage for these courses |
| But the positive contribution of this was more important and more was stronger in the fourth quarter of ‘22 in R$30 million than it was in fourth quarter of ‘23 |
| So, this can be a nice contributor for our numbers over the next years |
| So with this combination of seats maturing and tickets growing above inflation, the net revenue of our Medical business grew 31% in the quarter |
| Those are the highest numbers among the listed players in the country |
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| We had a deterioration of this retention rate in the last years, given the economic situation, etcetera, given off our growth |
| So in the fourth quarter, reaching 7.1% of net revenue, reaching 6.2% throughout the year on average last year in ‘23, going down from 7.4% in ‘22 |
| For example, we are now in December, we were at the lowest level ever in receivable days with 44 days compared to 57 days that we had, for example, in June of ‘23 |
| This quarter, we had a reduction in this net income for the quarter, which was impacted by two effects, two things |
| Regarding churn and retention rates, that's an important issue |
| CapEx went down throughout the year |
| We had also some postponements of payments in the third quarter |
| So, when we analyze these numbers, even for cost of service and for G&A, we had, in case of cost of service a decrease, in the case of G&A, a stable number of around 6% of net revenue, which is, by the way, the lowest in the industry |
| So, this is relatively low given our asset light operation |
| So, we had a slight decrease in the cash flow in the quarter |
| So, PDA in the year amounted to 13.4%, so a reduction of 0.8 points over the number of ‘22, even despite the strong intake results of last year |
| So, around 2% today, we are 2.9% and this will go down at around more or less 0.2 points per quarter more or less |
| Investors should understand that general economic conditions, market conditions and other operating factors may affect Vitru's future performance and lead to results that differ materially from those expressed in such forward-looking statements |
| I think it's still a bit premature to mention how this will evolve over time |
| Just, we've been hearing from other players that intake volume has been flattish so far in the first half intake cycle for this year, mainly due to not only a strong comparison base, but also due to the top down scenario as a whole |
| One was higher financial expenses, given that we prepaid the self-financing this in December |
| So, what we have been doing is that we are quite, I'd say, at ease with this issue |
| So, we could have a very low churn, low overall average churn, if we have no intake, for example |
| So, regarding cost of service, we had a slight increase in the quarterly numbers because of intra-year semester variations, but the yearly numbers, they were declined at 2.3 percent points year-on-year, which is basically due to operational synergies that I have been mentioning to you over the last quarters |
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