Last Updates

Belo Horizonte, August 12, 2015, Kroton Educacional S.A. (BM&FBovespa: KROT3 and Bloomberg: KROT3:BZ), announces its results for the second quarter of 2015 (2Q15).

2Q15 Results

2Q15 Highlights:

- Net revenue grew 94.7% from 2Q14, driven primarily by the incorporation of the Anhanguera figures, but also by organic growth in the Postsecondary student base. In 1H15, net revenue amounted to R$2,699.1 million, increasing 92.9% on the prior-year period.
- Adjusted EBITDA in the quarter was R$600.9 million, growing 84.3% on 2Q14. In 1H15, Adjusted EBITDA was R$1.152.5 million, with margin of 42.7%, significantly higher than in the last six months of 2014, which already consolidated the Anhanguera figures. The pro forma data also show strong margin expansion of 8.7 p.p. on 2Q14 and 5.8 p.p. on 1H14.
- Adjusted net income came to R$513.8 million in 2Q15, increasing 79.6% from R$286.0 million in 2Q14. Adjusted net margin stood at 36.4% in the quarter, also substantially above the margins of recent quarters that already considered the Anhanguera merger. In 1H15, adjusted net income advanced 68.2% on 1H14 to R$969.1 million, with adjusted net margin of 35.9%. Pro forma net margin posted robust increases of 9.1 p.p. on 2Q14 and of 6.0 p.p. between 1H15 and 1H14.
- Operating cash generation after capex in the quarter came to R$209.2 million in 2Q15, reflecting the inflow of FIES credits in accordance with this year's schedule (PN 23) and the appropriated revenue-recognition policy.
- The launch of KLS 2.0 for all freshman in 2015 will improve academic quality, while also representing an important tool for leveraging operating efficiency in the On-Campus segment.
- Kroton won six awards in the IR Magazine Awards 2015, which once again demonstrated its efforts in over the years to improve its investor relations practices.

To access Kroton's earnings release, please, click here.

2Q15 Earnings Conference Call: August 12, 2015

English
Time: 12:30 p.m. (Brasília)
Time: 11:30 a.m. (New York)
Phone: +1 (412) 317-6776 or
+1 (877) 317-6776
Code: Kroton
Replay: +1 (412) 317-0088
Code: 10068869

Portuguese
Time: 11:00 a.m. (Brasília)
Time: 10:00 a.m. (New York)
Phone: +55 (11) 3127-4971 or
+55 (11) 3728-5971
Code: Kroton
Replay: +55 (11) 3127-4999
Code: 22157705

Participants are requested to connect ten minutes prior to the time set for the conference call.

Slides and Webcast: The conference call slides will be available on our website www.kroton.com.br/ir on August 12. The Conference Call will be webcasted simultaneously on the same website, and will remain available after the event.

Notice to Shareholders

We hereby inform the Shareholders that the Board of Directors of Kroton Educacional S.A. ("Company"), at a meeting held on August 12, 2015, at 7:00 a.m. approved, subject to approval of the Annual Shareholders' Meeting of the Company that will consider and vote on the results of the fiscal year ending December 31, 2015, the payment of interim dividends, calculated towards the minimum mandatory dividends for fiscal year 2015.

To access the Notice to Shareholders, please, click here.

For more information, please contact our investor relations department:

Carlos Lazar - Director
Carolina Igi - Coordinator
Pedro Gomes - Coordinator
Telephone: +55 (11) 3133-7309 / +55 (11) 3133-7314 / +55 (11) 3133-7311
Email: dri@kroton.com.br

distributed by