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Kroton announces 4Q14 Results and Conference Call

Belo Horizonte, March 19, 2015, Kroton Educacional S.A. (BM&FBovespa: KROT3 and Bloomberg: KROT3:BZ), announces its results for the fourth quarter of 2014 (4Q14).

Highlights:

- The process to integrate Anhanguera is making consistent progress, with many deliveries already made and various projects anticipated with the aim of capturing efficiency gains more quickly and comprehensively.

- Net revenue grew 137.2% from 4Q13, driven primarily by the incorporation of the Anhanguera figures, but also by the higher number of Postsecondary students. In 2014, net revenue amounted to R$3,774.5 million, increasing 87.2% over 2014.

- Adjusted EBITDA surpassed R$400 million, representing growth of 131.2% compared to 4Q13. Adjusted EBITDA margin stood at 32.5% in 4Q14. In 2014, adjusted EBITDA was R$1.5 billion, increasing 100.0% over 2013, with EBITDA margin of 38.6%, expanding 2.5 p.p. year over year.

- Adjusted net income came to R$335.4 million in 4Q14, increasing 143.5% from R$137.8 million in 4Q13. Adjusted net margin was 27.3%, expanding 0.7 p.p. from 4Q13, already reflecting the effects from the Anhanguera merger. In 2014, adjusted net income grew 108.8% on 2013 to R$1,216.3 million, with net margin of 32.2%.

- Operating cash flow after capex (Pro forma) of R$290.3 million in 4Q14. The ratio of this indicator to EBITDA (unadjusted) represents a conversion rate of 81.4% in the period.

- Kroton's merger of Anhanguera was recognized as the "Best Deal of the Year" by Latin Finance magazine.

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

4Q14 Earnings Conference Call: March 19th, 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: 10060843

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: 65776197

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 March19th. The Conference Call will be webcasted simultaneously on the same website, and will remain available after the event.

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

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