Afya Restricted Declares First-Quarter 2022 Monetary Outcomes

NOVA LIMA, Brazil–(BUSINESS WIRE)–Afya Restricted (Nasdaq: AFYA) (“Afya” or the “Firm”), the main medical training group and digital well being companies supplier in Brazil, reported right now monetary and working outcomes for the three-month interval ended March 31, 2022 (first quarter 2022). Monetary outcomes are expressed in Brazilian Reais and are offered in accordance with Worldwide Monetary Reporting Requirements (IFRS).

First Quarter 2022 Highlights

• 1Q22 Adjusted Internet Income elevated 41.0% YoY to R$567.7 million. Adjusted Internet Income excluding acquisitions grew 10.6%, reaching R$445.3 million.
• 1Q22 Adjusted EBITDA elevated 30.4% YoY reaching R$270.8 million, with an Adjusted EBITDA Margin of 47.7%. Adjusted EBITDA excluding acquisitions grew 3.0%, reaching R$213.9 million, with an Adjusted EBITDA Margin of 48.0%.
• 1Q22 Internet Revenue of R$134.9 million, 19.1% larger than 1Q21.
• Money conversion of 113.0%, with a strong money place of R$ 789.4 million.
• ~260 thousand month-to-month energetic physicians and medical college students utilizing Afya’s Digital Companies.

Desk 1: Monetary Highlights
	For the three months interval ended March 31,
(in thousand of R$)	2022	2022 Ex Acquisitions*	2021	% Chg	% Chg Ex Acquisitions
(a) Internet Income	566,324	443,864	394,351	43.6%	12.6%
(b) Adjusted Internet Income (1)	567,716	445,256	402,555	41.0%	10.6%
(c) Adjusted EBITDA (2)	270,801	213,893	207,652	30.4%	3.0%
(d) = (c)/(b) Adjusted EBITDA Margin	47.7%	48.0%	51.6%	-390 bps	-360 bps
*For the three months interval ended March 31, 2022, “2022 Ex Acquisitions” excludes: iClinic (solely January, 2022; Closing of iClinic was in January, 2021), Medicinae, Medical Harbour, Cliquefarma, Shosp, UNIFIPMoc, FIPGuanambi, UNIGRANRIO, RX PRO, Garanhuns and Além da Medicina (all from January to March, 2022).
(1) Consists of necessary reductions in tuition charges granted by state decrees and particular person/collective authorized proceedings and public civil proceedings on account of COVID 19 on website courses restriction and excludes acknowledged income that pertains to reductions that had been granted in 2H2020, however had been invoiced in 1H21, primarily based on the Supreme Courtroom resolution that was launched in December 28, 2020. (2) See extra data on “Non-GAAP Monetary Measures” (Merchandise 09).

1. Message from Administration

For us in Afya, these outcomes point out one other nice begin for the yr forward. We’re proud to current, as soon as once more, sturdy outcomes, reaffirming the success and the resilience of Afya, together with excessive and predictable progress, and a report money technology. You will need to spotlight that our operational leverage and capital allocation self-discipline are leading to a sturdy EPS growth even contemplating the upper web debt and rate of interest out there.

We are able to lastly see the pandemic shedding its power, pushing our college students, staff, and companions to proceed extracting the perfect from our campuses and digital well being companies.

One good instance of that’s our Persevering with Training restoration on this quarter. After difficult intervals, our sensible courses are boosting once more, as we’ve invested in an growth plan that allowed us to greater than double our campuses, launch new programs, and strengthen our consumption course of.

As offered final month at our Traders and ESG Day, our digital companies technique is extra thriving than ever. All through growth and new acquisitions, our digital ecosystem is being constructed with a number of choices, unlocking new interactions and income streams that transcend the physicians, attaining pharma gamers, hospitals, labs and drugstores chains by our platforms, scratching the floor of a complete addressable market of R$28.4 billion.

M&A stays a key progress technique for us and we’ll proceed to guage alternatives to deploy capital into strategic acquisitions. Along with Além da Medicina and Cardiopapers, we’re proud to announce right now one other enterprise mixture, our third of 2022: Glic, a free diabetes care and administration app answer for physicians and sufferers, that makes use of expertise to enhance diabetes training and each day routine practices, connecting customers, gadgets and well being suppliers. This enterprise mixture represents Afya´s coming into into the physician-patient relationship pillar and additional strengthens Afya’s digital companies technique and ecosystem. Additionally, we’re dedicated to persevering with to increase our undergrad medical operation granting no less than 200 medical seats per yr by M&A offers, as we even have a pipeline of greater than 4,500 seats.

Within the undergrad situation, we’ve efficiently consolidated our management in medical college seats in Brazil. The growth of our providing within the undergrad enterprise continues to develop sturdy, and, already in 2022, we’ve elevated 200 operational seats with 4 new Mais Médicos licensed models by MEC, with operations to begin within the second semester, together with 28 new seats from the UniSL Ji-Paraná campus. Up to now, Afya has reached 2,759 permitted seats, representing nearly 20 thousand college students at maturity. Contemplating all acquisitions and seats permitted by MEC, we’ve added 1,307 seats since our IPO and we’ve turn out to be extraordinarily environment friendly in working medical faculties and we proceed to see alternatives on this space. All this effort means one factor: that our medical training enterprise stays, and can proceed to be, the cornerstone of our enterprise within the quick and center phrases.

Relating to fairness operations within the quarter, one is essential to be talked about, despite the fact that it has occurred after the quarter: this month, Afya was notified of the closing of the transaction the place Bertelsmann SE& Co. KGaA, or “Bertelsmann”, acquired 6,000,000 Class B frequent shares of Afya on the buy value of US$26.90 per share, from Nicolau Carvalho Esteves, Rosângela de Oliveira Tavares Esteves and NRE Capital Ventures Ltd. On account of the closing of the transaction, Bertelsmann and the Esteves household will beneficially personal ~57.5% and ~33.1% voting curiosity, and ~31% and ~17.9% of the full shares, respectively, in Afya. As beforehand mentioned, we’re delighted that Bertelsmann, one of many world’s main media firms with a major footprint within the training sector, has evidenced its dedication to Afya’s long-term technique by its analysis of accelerating its stake. We look ahead to persevering with to profit from the imaginative and prescient and dedication of the Esteves household with their vital shareholding and energetic participation in our firm.

Final, however not least, as additionally proven at our Traders and ESG Day, we’ve been making vital enhancements within the environmental, social, and governance agenda, sequentially. Topics associated to local weather change, clear vitality powering, environmental governance, social affect on susceptible areas, variety agenda and company tradition, human rights, relationship with the group, transparency and compliance, inside audit and cyber safety had been broadly disclosed. I wish to invite all of you that might not take part in Afya’s Traders and ESG Day to go to our Investor Relations web site to examine not solely the video of the occasion but in addition our 2021 Sustainability Report, which we’re proud to announce the supply concurrently with this earnings launch.

Excessive and predictable progress, sturdy steerage for the yr, and segments ramp-up: this proves how are we evolving and empowering our mission to turn out to be the reference in medical training and digital companies, encouraging college students and physicians to remodel their ambitions into rewarding lifelong experiences. We’re happy with our enterprise and of what we’ve achieved to this point, and in addition excited for what comes subsequent throughout this yr.

2. Key Occasions within the Quarter:

• Afya introduced, on January 2022, that Júlio de Angeli, Vice President of Innovation & Digital Companies, left the corporate for private causes. “We’re grateful for the time Mr. de Angeli has spent with us creating our digital companies technique and we want him all the perfect” mentioned Virgilio Gibbon, our CEO. Lélio de Souza, who has joined Afya efficient as of November 2021 and has 22 years of expertise in tech firms, assumed the place of Vice President of Innovation & Digital Companies.

• Third share repurchase program, on January 2022 – after the completion of its second share repurchase program, which resulted within the buy of 1,383,108 Class A typical shares, the Board of Administrators has permitted a brand new share repurchase program. Underneath this share repurchase program, Afya could repurchase as much as 1,874,457 of its excellent Class A typical shares, which represents 4% of its free float, within the open market, primarily based on prevailing market costs, starting on January 27, 2022 till the sooner of the completion of the repurchase or December 31, 2022, relying upon market circumstances. Through the three-month interval ended March 31, 2022, the Firm repurchased 1,204,424 shares.

• Reinforcing our ESG dedication, Afya introduced, on January 2022, that it’s one among 418 firms throughout 45 international locations and areas to hitch the 2022 Bloomberg Gender-Equality Index (GEI), a modified market capitalization-weighted index that goals to trace the efficiency of public firms dedicated to transparency in gender-data reporting. This reference index measures gender equality throughout 5 pillars: feminine management & expertise pipeline, equal pay & gender pay parity, inclusive tradition, anti-sexual harassment insurance policies, and pro-women model. Afya was included on this yr’s index for scoring above a world threshold established by Bloomberg to replicate disclosure and the achievement or adoption of best-in-class statistics and insurance policies.

• Afya introduced, on February 2022, that the Secretary of Regulation and Supervision of Larger Training of the Ministry of Training (“MEC”) licensed the operations of the medical faculties in Abaetutuba, within the State of Pará, and Itacoatiara, within the State of Amazonas, each underneath the Mais Médicos II program. With these authorizations, Afya reaches its third and fourth faculties licensed to begin working underneath the Mais Medicos II program. Every medical college will contribute with 50 seats and, with that, Afya will attain 2,581 working seats out of two,731 permitted seats.

• Afya introduced, on March 2022, the acquisition of 100% of the full share capital of Além da Medicina, a medical content material on-line platform for physicians and medical college students that gives instructional instruments along with technical medical content material that may help them all through their careers. Its sturdy content material contains mentoring for residency, mushy abilities, finance, accounting, and funding fundamentals for physicians. Além da Medicina had greater than 4.000 subscribers in 2021, with a basic NPS of 77 and nearly 100.000 followers on Instagram. The corporate expects a R$12.7 million gross income for 2022.

• Afya introduced, on March 2022, that it was notified that an affiliate of Bertelsmann SE& Co. KGaA, or “Bertelsmann” has agreed to purchase 6,000,000 Class B frequent shares of Afya on the buy value of US$26.90 per share, pursuant to a binding supply made by Nicolau Carvalho Esteves, Rosângela de Oliveira Tavares Esteves and NRE Capital Ventures Ltd (along with Nicolau Carvalho Esteves and Rosângela de Oliveira Tavares Esteves, the “Esteves Household”). Bertelsmann’s acceptance of the supply stays topic to due diligence and Bertelsmann board approval. If the transaction proceeds, following the transaction, Bertelsmann and the Esteves household will beneficially personal ~57.5% and ~33.1% voting curiosity, and ~31.0% and ~17.8% of the full shares respectively, in Afya. Afya was notified that if Bertelsmann accepts the supply, the Esteves household and Bertelsmann have agreed to amend Afya’s articles of affiliation and the present shareholder’s settlement between Bertelsmann and the Esteves household in an effort to permit Bertelsmann to consolidate its funding in Afya underneath Worldwide Monetary Reporting Requirements as a controlling shareholder.

• Afya introduced, on March 2022, that the Secretary of Regulation and Supervision of Larger Training of MEC licensed the operations of the medical faculties in Bragança, within the State of Pará, and Manacapuru, within the State of Amazonas, each underneath Mais Médicos II program. With these authorizations, Afya reaches its fifth and sixth licensed faculties to begin working underneath the Mais Medicos II program. Every medical college will contribute with 50 seats and with that, Afya will attain 2,681 working seats out of two,731 permitted seats.

• Afya introduced, on March 2022, that the Secretary of Regulation and Supervision of Larger Training of MEC licensed the rise of 28 seats of Centro Universitário São Lucas, in Ji-Parana positioned within the state of Rondônia. With the authorization, Afya reaches 2,759 permitted seats, which is able to symbolize round 19,865 college students at maturity, contemplating FIES and PROUNI.

3. Subsequent Occasions within the Quarter

• CardioPapers acquisition in April, 2022 – CardioPapers is the principle medical content material and training platform within the Cardiology subject, providing programs and books developed by physicians and for physicians, overlaying all phases of the medical profession, aligned with Afya’s general enterprise technique.
• Afya introduced, on April 2022, that Mr. Paulo Passoni, a board member since Might 2021, has submitted his resignation letter as a member of the Board of Administrators. Mrs. Maria Tereza Azevedo was appointed as his alternative efficient as of April 19^th.
• Afya introduced, on April 2022, that the resolutions set out in its Discover of Annual Basic Assembly dated April 12, 2022 had been duly handed at its Annual Basic Assembly held right now: (1) the approval and ratification of Afya’s monetary statements as of and for the fiscal yr ended December 31, 2021; and (2) the approval of the Amended and Restated Memorandum and Articles of Affiliation accessible at Afya’s web site at https://ir.afya.com.br, topic to and with impact from Closing of the transaction disclosed within the Type 13D/A on March 4, 2022, between Esteves Household and Bertelsmann SE & Co. KGaA, accessible on the Firm’s web site at https://ir.afya.com.br.
• Afya introduced, on Might 2022, that it was notified of the closing of the transactions the place Bertelsmann acquired 6,000,000 Class B frequent shares of Afya on the buy value of US$26.90 per share, from Esteves Household. On account of the closing of the transaction, Bertelsmann and the Esteves household will beneficially personal ~57.5% and ~33.1% voting curiosity, and ~31.0% and ~17.8% of the full shares respectively, in Afya.
• Glic acquisition in Might, 2022 – Glic is a free diabetes care and administration app answer for physicians and sufferers that makes use of expertise to enhance diabetes training and each day routine practices, connecting customers, gadgets and well being suppliers. This enterprise mixture represents Afya´s coming into into the physician-patient relationship pillar.

4. Full Yr 2022 Steerage Reaffirmed

The Firm is reaffirming its beforehand issued steerage for FY22 together with the efficiently concluded acceptances of latest medical college students for the primary semester, guaranteeing 100% occupancy in all of its medical faculties.

The steerage for FY2022 is outlined within the following desk:

Steerage for 2022	Essential concerns
2022 Adjusted Internet Income is predicted to be between R$2,280.0 million – R$2,360.0 million	Consists of 4 Mais Médicos models begin working in 2H22; Consists of Ji-Parana acquisition begin working within the 2H22; Consists of Além da Medicina acquisition; Excludes any acquisition which may be concluded after the issuance of the steerage.
2022 Adjusted EBITDA is predicted to be between R$935.0 million – R$1,015 million

5. 1Q22 Overview

Operational Assessment

Afya is the one firm providing instructional and technological options to assist physicians throughout each stage of the medical profession, from undergraduate college students of their medical college years by medical residency preparatory programs, medical specialization packages and persevering with medical training. The Firm additionally gives options to empower the physicians of their each day routine together with supporting clinic selections by cell app subscription and delivering follow administration instruments by a Software program as a Service (SaaS mannequin).

The Firm experiences outcomes for 3 distinct enterprise models. The primary, Undergrad – medical faculties, different healthcare packages and ex-health levels. Income is generated from the month-to-month tuition charges the Firm expenses college students enrolled within the undergraduate packages. The second, Persevering with Training – specialization packages and graduate programs for physicians. Income can be generated from the month-to-month tuition charges the Firm expenses college students enrolled within the specialization and graduate programs. The third is Digital Companies – digital companies provided by the Firm at each stage of the medical profession. This enterprise unit is split into: Content material & Know-how for Medical Training, Medical Resolution Software program, Observe Administration Instruments & Digital Medical Information, Doctor-Affected person Relationship, Telemedicine and Digital Prescription for physicians and gives entry and demand for the healthcare gamers. Income is generated from printed books and e-books, which is acknowledged on the cut-off date when management is transferred to the shopper and subscription charges (SaaS mannequin).

Key Income Drivers – Undergraduate Programs

Desk 2: Key Income Drivers	Three months interval ended March 31,
	2022	2021	% Chg
Undergrad Packages
MEDICAL SCHOOL
Authorised Seats	2,759	2,143	28.7%
Working Seats	2,481	1,893	31.1%
Whole College students (finish of interval)	17,523	12,852	36.3%
Common Whole College students	17,523	12,852	36.3%
Common Whole College students (ex-Acquisitions)*	14,023	12,852	9.1%
Tuition Charges (Whole – R$MM)	501,523	333,319	50.5%
Tuition Charges (ex- Acquisitions* – R$MM)	393,709	333,319	18.1%
Medical College Gross Avg. Ticket (ex- Acquisitions* – R$/month)	9,359	8,645	8.3%
Medical College Internet Avg. Ticket (ex- Acquisitions* – R$/month)	7,858	7,271	8.1%
UNDERGRADUATE HEALTH SCIENCE
Whole College students (finish of interval)	20,902	14,112	48.1%
Common Whole College students	20,902	14,112	48.1%
Common Whole College students (ex-Acquisitions)*	13,408	14,112	-5.0%
Tuition Charges (Whole – R$MM)	78,310	41,664	88.0%
Tuition Charges (ex- Acquisitions* – R$MM)	42,401	41,664	1.8%
OTHER UNDERGRADUATE
Whole College students (finish of interval)	24,209	13,167	83.9%
Common Whole College students	24,209	13,167	83.9%
Common Whole College students (ex-Acquisitions)*	11,715	13,167	-11.0%
Tuition Charges (Whole – R$MM)	69,182	42,999	60.9%
Tuition Charges (ex- Acquisitions* – R$MM)	37,948	42,999	-11.7%
TOTAL TUITION FEES
Tuition Charges (Whole – R$MM)	649,015	417,982	55.3%
Tuition Charges (ex- Acquisitions* – R$MM)	474,058	417,982	13.4%
*For the three months interval ended March 31, 2022 – “2022 Ex Acquisitions” excludes: UNIFIPMoc and FIPGuanambi (January to March, 2022; Closing of UNIFIPMoc and FIPGuanambi was in June, 2021), UNIGRANRIO (January to March, 2022; Closing of UNIGRANRIO was in August, 2021) and Garanhuns (January to March, 2021; Closing of Garanhuns was in November, 2021).

Key Income Drivers – Persevering with Training and Digital Companies

Desk 3: Key Income Drivers	Three months interval ended March 31,
	2022	2021	% Chg
Persevering with Training
Medical Specialization & Others
Whole College students (finish of interval)	3,479	3,698	-5.9%
Common Whole College students	3,479	3,698	-5.9%
Common Whole College students (ex-Acquisitions)	3,479	3,698	-5.9%
Internet Income from programs (Whole – R$MM)	23,851	19,288	23.7%
Internet Income from programs (ex- Acquisitions¹)	23,851	19,288	23.7%
Digital Companies
Content material & Know-how for Medical Training
Medcel Lively Payers
Prep Programs & CME – B2P	11,673	13,862	-15.8%
Prep Programs & CME – B2B	4,574	1,842	148.3%
Além da Medicina Lively Payers	6,345	–	n.a
Medical Resolution Software program
Whitebook Lively Payers	131,193	110,659	18.6%
Medical Administration Tools²
iClinic Lively Payers	19,622	13,272	47.8%
Shosp Lively Payers	2,278	–	n.a
Digital Companies Whole Lively Payers (finish of interval)	175,685	139,635	25.8%
Internet Income from Companies (Whole – R$MM)	47,477	53,538	-11.3%
Internet Income – B2P	41,197	51,678	-20.3%
Internet Income – B2B	6,280	1,860	237.6%
Internet Income From Companies (ex-Acquisitions¹)	40,742	53,538	-23.9%
(1) For the three months interval ended March 31, 2022 – “2022 Ex Acquisitions” excludes: iClinic (January, 2022; Closing of iClinic was in January, 2021), Medicinae (January to March, 2022; Closing of Medicinae was in March, 2021), Medical Harbour (January to March, 2022; Closing of Medical Harbour was in April, 2021), Cliquefarma (January to March, 2022; Closing of Cliquefarma was in April, 2021), Shosp (January to March, 2022; Closing of Shosp was in Might, 2021), RX PRO (January to March, 2022; Closing of RX PRO was in October, 2021) and Além da Medicina (January to March, 2022; Closing of Além da Medicina was in March, 2022).
(2) Medical administration instruments contains Telemedicine and Digital Prescription options.

Key Operational Drivers – Digital Companies

Month-to-month Lively Customers (MaU) represents the variety of distinctive people that consumed Digital Companies content material in every one among our merchandise within the final 30 days of a particular interval.

Month-to-month Lively Distinctive Customers (MUAU) represents the variety of distinctive people, with out overlap of customers amongst merchandise, within the final 30 days of a particular interval. Since this idea is being carried out for the primary time beginning this quarter, historic metrics of MUAU couldn’t be disclosed.

Whole month-to-month energetic customers reached roughly 260 thousand, 17.1% larger over the identical interval within the final yr.

Desk 4: Key Operational Drivers for Digital Companies – Month-to-month Lively Customers (MaU)
	1Q22	1Q21	% Chg YoY	4Q21	3Q21	2Q21
Content material & Know-how for Medical Training	21,464	19,857	8.1%	16,205	20,015	18,968
Medical Resolution Software program	218,313	173,959	25.5%	194,308	194,082	181,138
Medical Administration Tools¹	19,762	27,799	-28.9%	37,030	32,909	32,968
Whole Month-to-month Lively Customers (MaU) – Digital Companies	259,539	221,615	17.1%	247,543	247,006	233,074
1) Medical administration instruments contains Telemedicine and Digital Prescription options
2) Medical administration instruments MAU excludes different customers aside from payors, beginning in 1Q22

Desk 5: Key Operational Drivers for Digital Companies – Month-to-month Distinctive Lively Customers (MuaU)
	1Q22
Whole Month-to-month Distinctive Lively Customers (MuaU) – Digital Companies	242,374
1) Whole Month-to-month Distinctive Lively Customers excludes non-integrated firms: Medicinae, Shosp and Além da Medicina

Seasonality

Undergrad’s and Persevering with Training tuition revenues are associated to the consumption course of and month-to-month tuition charges charged to college students over the interval thus the Firm doesn’t have vital fluctuations through the semester. Digital Companies is comprised principally by Medcel, Pebmed and iClinic revenues. Whereas Pebmed and iClinic should not have vital fluctuation concerning seasonality, Medcel’s income is concentrated within the first and final quarter of the yr, because of the enrollments of Medcel’s purchasers interval. Nearly all of Medcel’s revenues are derived from printed books and e-books, that are acknowledged on the cut-off date when management is transferred to the shopper. Consequently, the Digital Companies section typically has larger revenues and outcomes of operations within the first and final quarters of the yr in comparison with the second and third quarters of the yr.

Income

Adjusted Internet Income for the primary quarter of 2022 was R$567.7 million, a rise of 41.0% over the identical interval of the prior yr, primarily because of the maturation of medical seats, a rise within the common ticket of Medical packages and consolidation of acquisitions of medical faculties and digital companies. Adjusted Internet Income additionally contains an affect of R$ 1.4 million because of the remaining web non permanent reductions in tuition charges granted by particular person and collective authorized proceedings and public civil proceedings associated to COVID-19, which are anticipated to finish through the second quarter.

Excluding acquisitions, Adjusted Internet Income within the first quarter elevated 10.6% YoY to R$445.3 million, primarily because of the growth of Undergrad and the Persevering with Training restoration, which ended the primary quarter with a 23.7% enhance in web income, primarily because of the interruption of the results of the COVID-19 pandemic. The expansion in Adjusted Internet Income was partially offset by Digital Companies income, which decreased 23.9%, on account of a decrease efficiency of Medcel within the 1Q22, which was brought on by larger competitors within the Residency Preparatory market.

Desk 6: Income & Income Combine
(in 1000’s of R$)	For the three months interval ended March 31,
	2022	2022 Ex Acquisitions*	2021	% Chg	% Chg Ex Acquisitions
Internet Income Combine
Undergrad	495,395	379,670	321,852	53.9%	18.0%
Adjusted Undergrad¹	496,787	381,062	330,056	50.5%	15.5%
Persevering with Training	23,851	23,851	19,288	23.7%	23.7%
Digital Companies	47,477	40,742	53,538	-11.3%	-23.9%
Inter-segment transactions	– 399	– 399	– 327	n.a	n.a
Whole Reported Internet Income	566,324	443,864	394,351	43.6%	12.6%
Whole Adjusted Internet Income ¹	567,716	445,256	402,555	41.0%	10.6%
*For the three months interval ended March 31, 2022, “2022 Ex Acquisitions” excludes: iClinic (solely January, 2022; Closing of iClinic was in January, 2021), Medicinae, Medical Harbour, Cliquefarma, Shosp, UNIFIPMoc, FIPGuanambi, UNIGRANRIO, RX PRO, Garanhuns and Além da Medicina (all from January to March, 2022).
(1) Consists of necessary reductions in tuition charges granted by state decrees and particular person/collective authorized proceedings and public civil proceedings on account of COVID 19 on website courses restriction and excludes acknowledged income that pertains to reductions that had been granted in 2H2020, however had been invoiced in 1H21, primarily based on the Supreme Courtroom resolution that was launched in December 28, 2020. (2) See extra data on “Non-GAAP Monetary Measures” (Merchandise 09).

Adjusted EBITDA

Adjusted EBITDA for the three-month interval ended March 31, 2022 elevated 30.4% to R$ 270.8 million, up from R$ 207.7 million in the identical interval of the prior yr, whereas the Adjusted EBITDA Margin decreased 390 foundation factors to 47.7%, primarily on account of consolidations of acquisitions with decrease EBITDA Margins and a lower in Medcel Internet Income, primarily on account of larger competitors within the Residency Preparatory market.

Excluding acquisitions, Adjusted EBITDA for the three months interval ended March 31, 2022 elevated 3.0% YoY to R$ 213.9 million from R$ 207.7 million, whereas the Adjusted EBITDA Margin decreased 360 foundation factors to 48.0%, primarily on account of Medcel decrease outcomes.

Desk 7: Adjusted EBITDA
(in 1000’s of R$)	For the three months interval ended March 31,
	2022	2022 Ex Acquisitions*	2021	% Chg	% Chg Ex Acquisitions
Adjusted EBITDA	270,801	213,893	207,652	30.4%	3.0%
% Margin	47.7%	48.0%	51.6%	-390 bps	-360 bps
*For the three months interval ended March 31, 2022, “2022 Ex Acquisitions” excludes: iClinic (solely January, 2022; Closing of iClinic was in January, 2021), Medicinae, Medical Harbour, Cliquefarma, Shosp, UNIFIPMoc, FIPGuanambi, UNIGRANRIO, RX PRO, Garanhuns and Além da Medicina (all from January to March, 2022).

Adjusted Internet Revenue

Internet Revenue for the primary quarter of 2022 was R$134.9 million, a rise of 19.1% over the identical interval of the prior yr. Internet Revenue outcomes had been primarily affected by a rise of 141.4% in finance bills, particularly on account of the next debt place associated to 9 enterprise mixtures and license acquisitions executed within the final 12 months, and the next rate of interest over the identical interval final yr.

Our EPS reached R$1.42 per share, a rise of twenty-two.4% yr over yr, reflecting the rise in our Internet Revenue, and capital allocation self-discipline executing our three buyback packages.

Adjusted Internet Revenue for the primary quarter of 2022 was R$ 167.2 million, a rise of 4.5% over the identical interval of the prior yr. The distinction between Internet Revenue and Adjusted Internet Revenue on this quarter was diminished primarily associated to decreases of 39.8% and 79.1% in non-recurring bills and in share-based compensation, respectively.

Desk 8: Adjusted Internet Revenue
(in 1000’s of R$)	For the three months interval ended March 31,
	2022	2021	% Chg
Internet revenue	134,942	113,348	19.1%
Amortization of buyer relationships and trademark (1)	18,283	14,317	27.7%
Share-based compensation	2,929	14,009	-79.1%
Non-recurring bills:	11,027	18,315	-39.8%
– Integration of latest firms (2)	4,171	3,023	38.0%
– M&A advisory and due diligence (3)	1,212	1,811	-33.1%
– Growth tasks (4)	602	1,227	-50.9%
– Restructuring bills (5)	3,650	4,050	-9.9%
– Necessary Reductions in Tuition Charges (6)	1,392	8,204	-83.0%
Adjusted Internet Revenue	167,181	159,989	4.5%
Primary earnings per share – R$ (7)	1.42	1.16	22.4%
(1) Consists of amortization of buyer relationships and trademark recorded underneath enterprise mixtures.
(2) Consists of bills associated to the combination of newly acquired firms.
(3) Consists of bills associated to skilled and advisor charges in reference to due diligence companies for our M&A transactions.
(4) Consists of bills associated to skilled and advisor charges in reference to the opening of latest campuses.
(5) Consists of bills associated to the worker redundancies in reference to the organizational restructuring of our acquired firms.
(6) Consists of necessary reductions in tuition charges granted by state decrees, particular person/collective authorized proceedings and public civil proceedings on account of COVID 19 on website courses restriction and excludes acknowledged income that pertains to reductions that had been granted in 2H2020, however had been invoiced in 1H21, primarily based on the Supreme Courtroom resolution that was launched in December 28, 2020.
(7) Primary earnings per share: Internet Revenue/Common variety of shares within the interval (ex-treasury).

Money and Debt Place

For the three-month interval ended March 31, 2022, Afya reported Adjusted Money Movement from Operations of R$293.6 million, up from R$194.1 million in the identical interval of the earlier yr, a rise of 51.3% YoY, boosted by the strong operational outcome.

Working Money Conversion Ratio for the three-month interval ended March 31, 2022, was 113.0%, in contrast with 102.5% in the identical interval of the earlier yr. This enhance was primarily on account of a lower within the progress of the commerce receivables evaluating 1Q22 over FY2021, primarily affected by the top of the grace interval of tuition renegotiation that occurred in 2020 and extremely affected the 1Q21 and the enrollment renewals.

Money and money equivalents on March 31, 2022 had been R$ 789.4 million, a lower of 18.2% over the identical interval in 2021.

On March 31, 2022, web debt, excluding the impact of IFRS 16, totaled R$1,368.7 million, in contrast with web debt of R$230.0 million in the identical interval in 2021, primarily on account of funds associated to (a) 9 enterprise mixtures and license acquisitions executed within the final 12 months, totaling R$1,184.5 million; (b) shares repurchase program of R$237.7 million, executed within the final 12 months and (c) investments actions in properties, tools and intangibles (excluding license acquisitions) totaling R$213.4 million within the final 12 months, that had been partially offset by the R$730.3 million money technology from March 31, 2021 by March 31, 2022. The next desk exhibits extra data concerning the price of debt for the primary quarter, contemplating loans and financing and accounts payable to promoting shareholders.

Desk 9: Gross Debt and Common Price of Debt
(in 1000’s of R$)	For the three months interval ended March 31,
			Price of Debt
	Gross Debt	Period (Years)	per yr	%CDI*
Loans and financing: Softbank	823	4.2	6.5%	65%
Loans and financing: Others	566	1.3	11.9%	116%
Accounts payable to promoting shareholders	769	1.5	10.2%	100%
Common		2.5	9.2%	90%
*Based mostly on the annualized Interbank Certificates of Deposit (“CDI”) fee for the interval as a reference: 1Q22: ~10.06% p.y.

Desk 10: Working Money Conversion Ratio Reconciliation	For the three months interval ended March 31,
(in 1000’s of R$)	Contemplating the adoption of IFRS 16
	2022	2021	% Chg
(a) Money circulation from operations	278,715	179,279	55.5%
(b) Revenue taxes paid	14,850	14,801	0.3%
(c) = (a) + (b) Adjusted money circulation from operations	293,565	194,080	51.3%
(d) Adjusted EBITDA	270,801	207,652	30.4%
(e) Non-recurring bills:	11,027	18,315	-39.8%
– Integration of latest firms (1)	4,171	3,023	38.0%
– M&A advisory and due diligence (2)	1,212	1,811	-33.1%
– Growth tasks (3)	602	1,227	-50.9%
– Restructuring Bills (4)	3,650	4,050	-9.9%
– Necessary Reductions in Tuition Charges (5)	1,392	8,204	-83.0%
(f) = (d) – (e) Adjusted EBITDA ex- non-recurring bills	259,774	189,337	37.2%
(g) = (a) / (f) Working money conversion ratio	113.0%	102.5%	1050 bps
(1) Consists of bills associated to the combination of newly acquired firms.
(2) Consists of bills associated to skilled and advisor charges in reference to due diligence companies for M&A transactions.
(3) Consists of bills associated to skilled and advisor charges in reference to the opening of latest campuses.
(4) Consists of bills associated to the worker redundancies in reference to the organizational restructuring of acquired firms.
(5) Consists of necessary reductions in tuition charges granted by state decrees and particular person/collective authorized proceedings and public civil proceedings on account of COVID 19 on website courses restriction and excludes acknowledged income that pertains to reductions that had been granted in 2H2020, however had been invoiced in 1H21, primarily based on the Supreme Courtroom resolution that was launched in December 28, 2020.

Desk 11: Money and Debt Place
(in 1000’s of R$)
	1Q22	FY2021	% Chg	1Q21	% Chg
(+) Money and Money Equivalents	789,435	748,562	5.5%	965,546	-18.2%
Money and Financial institution Deposits	42,648	88,487	-51.8%	41,191	3.5%
Money Equivalents	746,787	660,075	13.1%	924,355	-19.2%
(-) Loans and Financing	1,388,841	1,374,876	1.0%	620,928	123.7%
Present	142,654	128,720	10.8%	115,089	24.0%
Non-Present	1,246,187	1,246,156	0.0%	505,839	146.4%
(-) Accounts Payable to Promoting Shareholders	698,413	679,826	2.7%	499,309	39.9%
Present	264,520	239,849	10.3%	193,692	36.6%
Non-Present	433,893	439,977	-1.4%	305,617	42.0%
(-) Different Brief and Lengthy Time period Obligations	70,880	72,726	-2.5%	75,329	-5.9%
(=) Internet Debt (Money) excluding IFRS 16	1,368,699	1,378,866	-0.7%	230,020	495.0%
(-) Lease Liabilities	733,420	714,085	2.7%	466,204	57.3%
Present	27,750	24,955	11.2%	65,999	-58.0%
Non-Present	705,670	689,130	2.4%	400,205	76.3%
Internet Debt (Money) with IFRS 16	2,102,119	2,092,951	0.4%	696,224	201.9%

CAPEX

Capital expenditures is consisting of the acquisition of property and tools and intangible belongings, together with expenditures primarily associated to the growth and upkeep of our campuses and headquarters together with leasehold enhancements, and the event of latest options within the digital section, amongst others.

For the primary quarter of 2022, CAPEX went from R$32.9 million to R$76.8 million, a rise of 133.2% over the identical interval of the prior yr, on account of larger expenditures associated to intangible belongings, primarily defined by the R$24.4 million earn-out associated to the 28 extra seats of Centro Universitário São Lucas, in Ji-Parana, that was permitted in March, 2022.

Desk 12: CAPEX
(in 1000’s of R$)	For the three months interval ended March 31,
	2022	2021	% Chg
CAPEX	76,759	32,922	133.2%
Property and tools	30,670	23,056	33.0%
Intanglibe belongings	46,088	9,866	367.1%
– Licenses	24,408	–	n.a.
– Others	21,680	9,866	119.7%

ESG Metrics

ESG dedication is a vital a part of Afya’s technique and permeates the Firm’s core values. Afya has been advancing yr after yr on its core pillars and, since 2021, ESG metrics have been disclosed within the Firm’s quarterly monetary outcomes.

In August 2021, Afya assumed a voluntary dedication to have no less than 50% ladies in its administration positions by 2030. As well as, Afya introduced that it was certificated by Ladies on Board, an unbiased initiative whose function is to acknowledge, worth and promote company environments wherein ladies are a part of the board of administrators. The corporate voluntarily dedicated to persevering with to have no less than two ladies as board members.

On January 2022, Afya introduced that it’s one among 418 firms throughout 45 international locations and areas to hitch the 2022 Bloomberg Gender-Equality Index (GEI), a modified market capitalization-weighted index that goals to trace the efficiency of public firms dedicated to transparency in gender-data reporting. This reference index measures gender equality throughout 5 pillars: feminine management & expertise pipeline, equal pay & gender pay parity, inclusive tradition, anti-sexual harassment insurance policies, and pro-women model. Afya was included on this yr’s index for scoring above a world threshold established by Bloomberg to replicate disclosure and the achievement or adoption of best-in-class statistics and insurance policies.

Concurrently with the quarterly outcomes, we’re additionally proud to announce Afya’s 2021 Sustainability Report.

We’ve got consolidated our management place in Medical Training, and continued our inroads into the Digital Medical Companies section, which is per our proposal to be the doctor’s accomplice in all levels of their tutorial coaching {and professional} journey. This technique, which guides our enterprise, in addition to its unfolding, is detailed within the report, together with the outcomes achieved from our operations. In it, we’ve additionally gathered data on our Administration construction and ESG practices, along with the socio-environmental impacts we produce by our operations.

This materials, because it has been since our 1st version, was ready primarily based on the rules laid down by the International Reporting Initiative (GRI), which is the worldwide benchmark for the preparation of sustainability experiences. To depict the impacts of our operations on society and the setting, we’ve complemented the data with parts from the strategy decided by the Worldwide Built-in Reporting Council (IIRC), the establishment that units the parameters for Built-in Experiences.

For the aim of offering extra data to those that want to assess our efficiency as regards ESG practices, we’ve included some indicators from the Sustainability Accounting Requirements Board (SASB), a global group that establishes parameters for a greater evaluation of those subjects. We’ve got additionally indicated, all through the report, how our initiatives contribute to attaining the targets established by world actions led by the United Nations Group (UNO): the International Compact, to which we’ve been a signatory since 2020, and by the 2030 Agenda, which unfolds within the Sustainable Improvement Objectives (SDGs).

The 2021 Sustainability Report may be discovered at: https://ir.afya.com.br/ >> Company Governance >> Sustainability.

Desk 12: ESG Metrics			1Q22	1Q21	2020	2019
#	GRI	Governance and Worker Administration
1	405-1	Variety of staff	8,528	6,012	6,100	3,369
2	405-1	Share of feminine staff	56%	55%	55%	57%
3	405-1	Share of feminine staff within the board of administrators	18%	18%	18%	22%
4	102-24	Share of unbiased member within the board of administrators	36%	36%	36%	22%
		Environmental
4	302-1	Whole vitality consumption (kWh)	2,757,942	1,877,353	6,428,382	5,928,450
4.1	302-1	Consumption per campus	72,577	69,532	257,135	395,230
5	302-1	% provided by distribution firms	78.5%	90.0%	87.4%	96.2%
6	302-1	% provided by different sources	21.5%	10.0%	12.6%	3.8%
		Social
8	413-1	Variety of free medical consultations provided by Afya	80,751	62,096	427,184	270,000
9		Variety of physicians graduated in Afya’s campuses	16,597	n.a	12,691	8,306
10	201-4	Variety of college students with financing and scholarship packages (FIES and PROUNI)	8,223	5,789	4,999	2,808
11		% college students with scholarships over complete undergraduate college students	13.1%	15.9%	13.7%	11.7%
12	413-1	Hospital, clinics and metropolis halls partnerships	1,816	432	432	60

6. Convention Name and Webcast Data

When:		Might 23, 2021 at 5:00 p.m. ET.
Who:		Mr. Virgilio Gibbon, Chief Government Officer Mr. Luis André Blanco, Chief Monetary Officer Ms. Renata Costa Couto, Head of Investor Relations
Dial-in: Brazil: +55 11 4680 6788 or +55 11 4700 9668 or +55 21 3958 7888 or +55 11 4632 2236 or +55 11 4632 2237   United States: +1 312 626 6799 or +1 929 205 6099 or +1 301 715 8592 or +1 346 248 7799 or +1 669 900 6833 or +1 253 215 8782   Webinar ID: 916 1547 5303   Different Numbers: https://afya.zoom.us/u/aenU85FCu OR Webcast: https://afya.zoom.us/j/91615475303   Webinar ID: 916 1547 5303

7. About Afya Restricted (Nasdaq: AFYA)

Afya is the main medical training group in Brazil primarily based on variety of medical college seats. It delivers an end-to-end physician-centric ecosystem that serves and empowers college students to be lifelong medical learners, from the second they enroll as medical college students, by their medical residency preparation, graduate program, and persevering with medical training actions. Afya additionally gives content material and medical resolution functions for healthcare professionals by its merchandise WhiteBook, Nursebook and Portal PEBMED. For extra data, please go to www.afya.com.br.

8. Ahead – Trying Statements

This press launch comprises forward-looking statements throughout the which means of the Non-public Securities Litigation Reform Act of 1995, which statements contain substantial dangers and uncertainties. All statements aside from statements of historic reality may very well be deemed ahead wanting, and embody dangers and uncertainties associated to statements about our competitors; our means to draw, upsell and retain college students; our means to extend tuition costs and prep course charges; our means to anticipate and meet the evolving wants of scholars and professors; our means to supply and efficiently combine acquisitions; basic market, political, financial, and enterprise circumstances; and our monetary targets reminiscent of income, share depend and IFRS and non-IFRS monetary measures together with gross margin, working margin, web revenue (loss) per diluted share, and free money circulation. Ahead-looking statements by their nature tackle issues which are, to completely different levels, unsure, reminiscent of statements concerning the potential impacts of the COVID-19 pandemic on our enterprise operations, monetary outcomes and monetary place and the Brazilian economic system.

The Firm undertakes no obligation to replace any forward-looking statements made on this press launch to replicate occasions or circumstances after the date of this press launch or to replicate new data or the incidence of unanticipated occasions, besides as required by legislation. The achievement or success of the issues coated by such forward-looking statements entails identified and unknown dangers, uncertainties and assumptions. If any such dangers or uncertainties materialize or if any of the assumptions show incorrect, our outcomes may differ materially from the outcomes expressed or implied by the forward-looking statements we make. Readers shouldn’t depend on forward-looking statements as predictions of future occasions. Ahead-looking statements symbolize administration’s beliefs and assumptions solely as of the date such statements are made. Additional data on these and different components that might have an effect on the Firm’s monetary outcomes are included within the filings made with america Securities and Trade Fee (SEC) on occasion, together with the part titled “Danger Elements” in the latest Rule 434(b) prospectus. These paperwork can be found on the SEC Filings part of the investor relations part of our web site at: https://ir.afya.com.br/.

9. Non-GAAP Monetary Measures

To complement the Firm’s consolidated monetary statements, that are ready and offered in accordance with Worldwide Monetary Reporting Requirements as issued by the Worldwide Accounting Requirements Board—IASB, Afya makes use of Adjusted EBITDA and Working Money Conversion Ratio data, that are non-GAAP monetary measures, for the comfort of buyers. A non-GAAP monetary measure is usually outlined as one which intends to measure monetary efficiency however excludes or contains quantities that will not be equally adjusted in probably the most comparable GAAP measure.

Afya calculates Adjusted EBITDA as web revenue plus/minus web monetary outcome plus revenue taxes expense plus depreciation and amortization plus curiosity obtained on late funds of month-to-month tuition charges, plus share-based compensation plus/minus share of revenue of affiliate plus/minus non-recurring bills. The calculation of Adjusted Internet Revenue is web revenue plus amortization of buyer relationships and trademark, plus share-based compensation. We calculate Working Money Conversion Ratio because the money circulation from operations, adjusted with revenue taxes paid divided by Adjusted EBITDA plus/minus non-recurring bills.

Administration presents Adjusted EBITDA, as a result of it believes these measures present buyers with a supplemental measure of economic efficiency of the core operations that facilitates period-to-period comparisons on a constant foundation. Afya additionally presents Working Money Conversion Ratio as a result of it believes this measure gives buyers with a measure of how effectively the Firm converts EBITDA into money. The non-GAAP monetary measures described on this prospectus usually are not an alternative to the IFRS measures of earnings. Moreover, calculations of Adjusted EBITDA and Working Money Conversion Ratio could also be completely different from the calculations utilized by different firms, together with opponents within the training companies business, and due to this fact, Afya’s measures is probably not corresponding to these of different firms.

10. Investor Relations Contact

Renata Couto, Head of Investor Relations

Telephone: +55 31 3515.7564 | +55 31 98463.3341

E-mail: renata.couto@afya.com.br

11. Monetary Tables

Consolidated statements of revenue

For the three months interval ended March 31, 2022 and 2021

(In 1000’s of Brazilian Reais, besides earnings per share)

	March 31, 2022 (unaudited)	March 31, 2021 (unaudited)
Internet income	566,324	394,351
Price of companies	(186,730)	(126,492)
Gross revenue	379,594	267,859
Basic and administrative bills	(178,514)	(130,404)
Different (bills) revenue, web	(309)	1,185
Working revenue	200,771	138,640
Finance revenue	24,569	13,815
Finance bills	(81,291)	(33,672)
Finance outcome	(56,722)	(19,857)
Share of revenue of affiliate	4,240	3,239
Revenue earlier than revenue taxes	148,289	122,022
Revenue taxes bills	(13,347)	(8,674)
Internet revenue	134,942	113,348
Different complete revenue	–	–
Whole complete revenue	134,942	113,348
Revenue attributable to
Fairness holders of the father or mother	129,610	108,090
Non-controlling pursuits	5,332	5,258
	134,942	113,348
Primary earnings per share
Per frequent share	1.42	1.16
Diluted earnings per share Per frequent share	1.42	1.15

Consolidated stability sheets – For the three months interval ended March 31, 2022 and December 31, 2021

(In 1000’s of Brazilian Reais)

	March 31, 2022 (unaudited)		December 31, 2021
Belongings
Present belongings
Money and money equivalents	789,435		748,562
Commerce receivables	364,701		378,351
Inventories	13,864		11,827
Recoverable taxes	31,544		25,579
Different belongings	30,678		42,533
Whole present belongings	1,230,222		1,206,852
Non-current belongings
Commerce receivables	28,390		27,442
Different belongings	182,946		180,306
Funding in affiliate	51,163		48,477
Property and tools	440,193		419,808
Proper-of-use belongings	676,402		663,686
Intangible belongings	3,952,453		3,900,835
Whole non-current belongings	5,331,547		5,240,554
Whole belongings	6,561,769		6,447,406
Liabilities
Present liabilities
Commerce payables	57,066		59,098
Loans and financing	142,654		128,720
Lease liabilities	27,750		24,955
Accounts payable to promoting shareholders	264,520		239,849
Notes payable	15,306		14,478
Advances from clients	111,541		114,585
Labor and social obligations	152,438		131,294
Taxes payable	30,059		26,715
Revenue taxes payable	11,608		11,649
Different liabilities	13,205		15,163
Whole present liabilities	826,147		766,506
Non-current liabilities
Loans and financing	1,246,187		1,246,156
Lease liabilities	705,670		689,130
Accounts payable to promoting shareholders	433,893		439,977
Notes payable	55,574		58,248
Taxes payable	95,341		96,598
Provision for authorized proceedings	152,106		148,287
Different liabilities	2,394		2,486
Whole non-current liabilities	2,691,165		2,680,882
Whole liabilities	3,517,312		3,447,388
Fairness
Share capital	17		17
Extra paid-in capital	2,375,344		2,375,344
Share-based compensation reserve	97,030		94,101
Treasury inventory	(241,393)		(152,630)
Retained earnings	760,927		631,317
Fairness attributable to fairness holders of the father or mother	2,991,925		2,948,149
Non-controlling pursuits	52,532		51,869
Whole fairness	3,044,457		3,000,018
Whole liabilities and fairness	6,561,769		6,447,406

Consolidated statements of money circulation – For the three months interval ended March 31, 2022 and 2021

(In 1000’s of Brazilian Reais)

				March 31, 2022 (unaudited)	March 31, 2021 (unaudited)
Working actions
	Revenue earlier than revenue taxes			148,289	122,022
		Changes to reconcile revenue earlier than revenue taxes
			Depreciation and amortization	48,387	31,651
			Disposals of property and tools	319	26
			Disposals of intangible	2,894	–
			Allowance for uncertain accounts	14,983	11,065
			Share-based compensation expense	2,929	14,009
			Internet international change variations	126	(3,988)
			Accrued curiosity	46,106	12,285
			Accrued lease curiosity	20,641	13,120
			Share of revenue of affiliate	(4,240)	(3,239)
			Provision for authorized proceedings	3,819	2,002
Modifications in belongings and liabilities
	Commerce receivables			(576)	(33,229)
	Inventories			(2,037)	(2,077)
	Recoverable taxes			(5,965)	779
	Different belongings			9,263	1,550
	Commerce payables			(2,736)	7,088
	Taxes payables			2,357	729
	Advances from clients			(9,229)	13,582
	Labor and social obligations			21,074	9,046
	Different liabilities			(2,839)	(2,341)
				293,565	194,080
	Revenue taxes paid			(14,850)	(14,801)
	Internet money flows from working actions			278,715	179,279
Investing actions
	Acquisition of property and tools			(30,670)	(23,056)
	Dividends obtained			1,554	5,770
	Acquisition of intangibles belongings			(21,680)	(9,866)
	Funds of notes payable			(3,614)	(2,628)
	Acquisition of subsidiaries, web of money acquired			(47,904)	(150,483)
	Internet money flows utilized in investing actions			(102,314)	(180,263)
Financing actions
	Funds of loans and financing			(14,494)	(2,010)
	Funds of lease liabilities			(27,476)	(17,509)
	Treasury shares			(88,763)	(64,752)
	Dividends paid to non-controlling pursuits			(4,669)	(4,275)
	Internet money flows from (utilized in) financing actions			(135,402)	(88,546)
	Internet international change variations			(126)	3,984
	Internet enhance in money and money equivalents			40,873	(85,546)
	Money and money equivalents firstly of the yr			748,562	1,045,042
	Money and money equivalents on the finish of the yr			789,435	959,496

Reconciliation between Internet Revenue and Adjusted EBITDA

(in 1000’s of R$)	For the three months interval ended March 31,
	2022	2021	% Chg
Internet revenue	134,942	113,348	19.1%
Internet monetary outcome	56,722	19,857	185.7%
Revenue taxes expense	13,347	8,674	53.9%
Depreciation and amortization	48,387	31,651	52.9%
Curiosity obtained (1)	7,687	5,037	52.6%
Revenue share affiliate	(4,240)	(3,239)	30.9%
Share-based compensation	2,929	14,009	-79.1%
Non-recurring bills:	11,027	18,315	-39.8%
– Integration of latest firms (2)	4,171	3,023	38.0%
– M&A advisory and due diligence (3)	1,212	1,811	-33.1%
– Growth tasks (4)	602	1,227	-50.9%
– Restructuring bills (5)	3,650	4,050	-9.9%
– Necessary Reductions in Tuition Charges (6)	1,392	8,204	-83.0%
Adjusted EBITDA	270,801	207,652	30.4%
Adjusted EBITDA Margin	47.7%	51.6%	-390 bps
(1) Represents the curiosity obtained on late funds of month-to-month tuition charges. (2) Consists of bills associated to the combination of newly acquired firms. (3) Consists of bills associated to skilled and advisor charges in reference to due diligence companies for our M&A transactions. (4) Consists of bills associated to skilled and advisor charges in reference to the opening of latest campuses. (5) Consists of bills associated to the worker redundancies in reference to the organizational restructuring of our acquired firms. (6) Consists of necessary reductions in tuition charges granted by state decrees and particular person/collective authorized proceedings due COVID 19 on website courses restriction and excludes acknowledged income that pertains to reductions that had been granted in 2H2020, however had been invoiced in 1H21, primarily based on the Supreme Courtroom resolution that was launched in December 28, 2020.