Economic and financial performance

The merger with Anhanguera had an extremely positive impact on Kroton's results in 2014. This transaction led to a 90% increase in the higher education student base from 2013 to 2014, driving significant improvement in the company's financial indicators. In the year, net added value was approximately R$ 2.8 billion, representing a considerable increase.

The integration which is underway is rapidly promoting the capture of gains in synergies and efficiencies on a large scale, a key driver in the positive results achieved this year and future improvement in operational and financial performance.

In on-campus and distance learning post-secondary education, the increase in net revenues is the result of growth in the number of student enrollments due to the incorporation of the Anhanguera student base. In primary and secondary education, the numbers reflect the growth in the number of collections sold, as well as initiatives undertaken to improve the services provided to the associated schools.

The growth in the company's operational and financial indicators reaffirms the robustness of its management mechanisms, the strength of its processes and the propriety of its strategy.

Additionally, in 2014 Kroton received R$ 1.8 billion for services provided based on government programs. As incentives from the public sector, the company took advantage of benefits, subsidies and subventions totaling R$ 468 million.