Our Strategy
The Company’s objective is to maintain its leadership position in the Higher Education market in the North and Northeast regions of Brazil, while also strengthening its presence as a key player in other regions of the Country. To achieve this, the Company has developed a growth strategy based on five main pillars:
(i) On-campus organic growth, through the launch of new undergraduate programs at existing campuses as well as the accreditation of new units;
(ii) Organic growth through distance learning (DL), a segment that has shown strong growth potential and offers superior margins;
(iii) Accreditation of new medical programs, through the approval of administrative processes currently under review by the Ministry of Education (MEC), participation in public calls under the Mais Médicos program, and the development of new course offerings;
(iv) Investments in enhancing the student experience, expanding the continuing education ecosystem and educational technologies, developing new academic technologies and improving the Company’s academic model by implementing best pedagogical practices and technology tools. This will provide increasingly personalized and adaptive learning pathways, alongside the creation of new programs aligned with labor market demands; and
(v) Ongoing pursuit of efficiency and profitability, through better utilization of leased real estate, process automation, and the generation of synergies across existing businesses, with the goal of increasing cash flow and reducing financial indebtedness.
Organic Growth of On-Campus, Distance Learning, and Medical Programs
a) Investments and new undergraduate programs, expansion of existing campuses
Over the past five years, the Company has experienced significant expansion, primarily through organic growth. It continues to expand smaller campuses to increase available seats, allowing for growth with limited capital requirements and reduced risks. In addition, its University Centers benefit from greater autonomy in launching new programs and expanding student intake, thereby accelerating organic growth.
The Company plans to continue accrediting new programs at units with strong growth potential, focusing on high-demand and high-margin areas such as Health Sciences (Medicine, Dentistry, Psychology, among others) and Engineering, which generate higher average monthly tuition and lower dropout rates.
b) Accreditation of new campuses
Accreditation of new on-campus higher education units by MEC typically requires an average of 36 months. Leveraging market intelligence and its proven track record in opening new campuses, the Company has identified opportunities in regions underserved by local institutions. These new campuses will be strategically located to preserve the attractiveness of existing campuses.
c) Expansion of distance learning (DL)
The Company operates an extensive network of over 800 distance learning hubs and serves more than 185,000 students across undergraduate and postgraduate programs. It expects to sustain growth in this modality by leveraging its differentiated quality standards—particularly laboratories designed for Health Sciences and Engineering programs—thus ensuring the continuity of its organic expansion.
d) Expansion of Medical program capacity
The Company views medical programs in Brazil as strategically important for revenue generation, operating performance, and brand recognition. To strengthen its position in this segment, it has pursued both organic initiatives and acquisitions. Between 2020 and 2022, the Company completed three acquisitions that increased its annual authorized medical seats from 268 to 521.
Organically, the Company seeks to accredit new medical programs under the framework of the SINAES Law, currently under judicial review in Declaratory Action of Constitutionality (ADC 81), and has also applied in the latest public call of the Mais Médicos Program. Following a favorable ruling in ADC 81, disclosed in a material fact dated June 3, 2024, and further detailed in Section 1.6 of this Reference Form, the Company significantly expanded its medical program offerings.
e) Strengthening brand recognition and student recruitment campaigns
The Company believes that in the higher education market, brands with strong regional identity and ties to local communities will prevail. Accordingly, it continues to invest in community-focused communication strategies to strengthen brand recognition.
Its integrated communication strategy includes media campaigns, social and environmental initiatives, support for sports, and student recruitment campaigns. These efforts not only enhance student enrollment but also increase brand awareness and community engagement.
Additionally, the Company engages in partnerships with corporations for internships and trainee programs, collaborates with public institutions and schools, and participates in university fairs and other recruitment events, coordinated with its sales teams for direct outreach to prospective students.
Continuous Efficiency and Profitability Gains
Through ongoing innovation in its academic model, the Company remains committed to offering high-quality higher and technical education, with updated programs aligned with student profiles and labor market demands. Programs are delivered by highly qualified faculty using modern teaching methodologies and technology, supported by well-equipped and strategically located facilities.
The Company understands that in addition to receiving a top-notch education, focused on job placement, students also value high-quality customer services. Therefore, the Company will invest significantly and continuously in infrastructure—particularly digital infrastructure—to enhance the student experience both on-campus and online.
Operational efficiency initiatives include:
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intelligent portfolio management, prioritizing high-demand and high-margin programs;
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structuring classes with minimum viable enrollment;
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cross-utilization of curricula across programs.
The Company regularly reviews its portfolio based on market research, regional economic development, and competitor offerings, while its centralized academic team develops new programs to meet emerging demand.
Ongoing Investment in Technology
The Company will continue investing in technology to enhance teaching quality and strengthen engagement with students and faculty. These investments aim to improve operational efficiency by reducing costs and providing greater convenience for administrators and students.
Technology advancements will also enable greater product flexibility, improved quality assurance, and cost reduction across campuses. The Company plans to allocate significant resources to support expected growth, ensuring a robust technology infrastructure for students, faculty, and administrative staff.
Investment in the Student Experience
The Company is committed to continuously improving the student experience by offering intuitive and accessible learning environments for both on-campus and online education.
A central component is the development of Ubíqua, its academic model designed around omnipresent learning, high-quality content delivered through active learning methodologies, and seamless integration between online and in-person education.
The Company is also broadening its course portfolio and exploring innovative digital distribution channels, such as social media, messaging apps, and retail e-commerce platforms. These initiatives aim to create new, more convenient pathways for accessing higher education, combining flexibility with high-quality, career-oriented content.
Mergers, Acquisitions, and Sector Consolidation
The Company may accelerate growth through acquisitions of educational institutions and businesses that enhance its continuing education ecosystem.
Acquisition decisions are guided by strict criteria, including location suitability, facilities, student convenience, and competitive landscape. These are validated through comprehensive market analysis, considering variables such as target market size, competitive intensity, higher education penetration rates, high school graduate volume, student purchasing power, and income distribution.
Given the structure of the higher education market in the Northeast and North regions—where most acquisition targets are small to mid-sized colleges, university centers, and universities—the Company also conducts market research to identify new program opportunities to strengthen demand at acquired institutions.