Sustainability Report 2019 2019 Report Sustainability 2 Yduqs Sustainability Report 2019 4

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Sustainability Report 2019 2019 Report Sustainability 2 Yduqs Sustainability Report 2019 4 SUSTAINABILITY REPORT 2019 REPORT SUSTAINABILITY SUSTAINABILITY REPORT 2019 YDUQS 2 YDUQS SUSTAINABILITY REPORT 2019 4 Table of Contents Introduction 5 Interview with the Chief ExecutiveOfficer 6 Profile 9 Governance Context 22 Social Context 30 Corporate Social Responsibility 44 Economic Context 56 Education Context 64 Environmental Context 84 GRI content index 90 SUSTAINABILITY REPORT 2019 5 Introduction In July 2019, Estácio Participações changed Built in accordance with the Global Report- its corporate name to YDUQS, an evolu- ing Initiative (GRI) methodology, the 2019 tion that consolidates the 50-year tradition Sustainability Report presents details on the of Estácio in education and prepares the recent acquisitions of Higher Education In- group for a future of growth. The creation stitutions (HEI); advances in the field of gov- of YDUQS marks a new era in the history of ernance and compliance; the main financial one of the largest private higher education results for the year; the highlights of people groups in Brazil. In preparing for the acquisi- management and in the educational field; tions that would take place throughout 2019 and socio-environmental responsibility ini- and 2020, the Estácio Group rethought its tiatives. The qualitative and quantitative data strategy and positioning in the market, keep- in the content refers to the Estácio Business ing students as the main focus of its value Unit, the only one in operation throughout proposition. The creation of YDUQS, the ex- 2019. Except for specific information explic- pansion of the network, changes in manage- itly highlighted in the text, the performance ment, and growth prospects are summarized indicators refer to Estácio operations and in this Report, which brings together the were not influenced by the introduction of main events of 2019 for the Estácio brand the new brands as of October 2019. GRI 102- and the Company's performance in its five 46, 102-50 sustainability Contexts: Governance, Social, Economic, Education and Environmental. YDUQS thanks everyone who contributed to the 2019 results, and to the development of the content of this Report, and wishes stu- dents, teachers, administrative staff, suppli- ers, partners, and investors a good reading. APRESENtaÇÃO 6 If you could briefly summarize your impressions of your first year leading YDUQS, what would be the highlights? It was a remarkable year. We have maintained a good level of performance, focused on the growth of two areas in which Brazil has sig- nificant needs: distance learning education and Medicine. There is a shortage of physi- cians, so our strategy is to expand Medical Units, particularly in the countryside. In online learning, we serve a huge number of people who have not had the opportunity to study and who are now returning to it, with Interview with the the offer of high-quality distance learning education - as MEC evaluations show. CEO GRI 102-14 Comment about the creation of the Eduardo Parente lived in 2019 his first full YDUQS brand, and what it means for the year as CEO of YDUQS - he took office in future of the Company. REMARKABLE YEAR December 2018. In his own words, it was "a We created YDUQS in 2019. Much more Eduardo Parente led remarkable year". The Company has under- than a brand, we have introduced a new intense changes in his gone several transformations in the period, concept to our business and gained much first year at the helm including the presentation of the YDUQS more freedom to grow in a diversified man- of YDUQS brand, which will allow an unprecedented ner. Estácio has a very beautiful history, a expansion and diversification, in a way never good vision - offering quality education, not seen before in Estácio's 50-year history. In only for the elite. But we have reached a the interview below, Parente ponders about time when, in order to grow even more, we the main achievements and challenges of need greater freedom. We are talking about 2019 and the prospects for the future of distance learning education, helping other one of the largest private higher education institutions with our technology. We will groups in the country. consolidate this movement with the cre- ation of the Premium Units, Digital Content and Whole Life. We will use these segments to bring distance learning education to WATCH more people, in other ways, depending on the video from YDUQS CEO, the purchasing power of each region, the Eduardo Parente physical access that people have to the ma- terial. The growth rate of these Units will be strong, maintaining balance in the face of the losses from the Student Financing Fund (Fies) in 2020, and standing out intensively from 2021 onwards. SUSTAINABILITY REPORT 2019 7 Regarding financial performance, how do you evaluate the year's results? In recent years, we have been on a path to Within this context, reduce costs and waste, which was important major acquisitions were made in 2019. for us to continue offering quality products Financially, we were able to mitigate the at affordable prices. And we also have an effects of the economic crisis and the obligation to pay back to the shareholders, reduction of Fies. This gave us the strength who believe in us. In 2019, we achieved a to pursue new acquisitions. We had a timid very competitive level of profitability. Due presence in the interior of São Paulo, and to the drop in the entrance of Fies students, acquired a very strong brand in the region, we knew that 2018, 2019 and 2020 would Unitoledo. It was the first time that an insti- be hard years in financial terms. But we have tution was acquired and did not become Es- managed to maintain a recipe very similar to tácio. With the absorption of Adtalem, more the previous level. than 100 thousand students were received, at institutions of great tradition. It is an acquisition that brings very qualified content. "We will lead the How does YDUQS intend to democratize all this quality? transformation of It is an expensive education, it goes far beyond what most Brazilians can afford. But, Higher Education in Brazil" when this quality is brought to distance learn- ing education, we are able to put this level Last but not least, what are the priorities for content in all of our classrooms, throughout 2020 and the coming years? Brazil. Whether in distance education, or in We will continue to invest in our distance the use of digital resources in didactic materi- learning education format - a winning model al, which greatly raises the level of experience - with the absorption of professionals of the of the student. They are contents with a very highest standard, to produce content for sound didactics, highly qualified, but accessi- digital media. This strategy will affect the ble and attractive to all students. remote student, as well as the on-campus student, and change all of our Units, all of How has YDUQS considered the different our classrooms. This content will be con- profiles and experiences of students in the stantly updated and presented in a language expansion of digital resources in teaching? that young people are familiar with. This We seek to encourage much more active helps the teacher to ensure that students student participation in the educational are better prepared before each class. The process. People live in a digital world today, new licenses and the increased number of many of them do not have the habit of read- Medicine vacancies and the expansion of ing, or the necessary free time. Our digital the capillarity of our network, in on-campus content is based on this reality. We encour- and distance learning education, are also age students to access digital content before very relevant topics. In view of the dimen- coming to class - watching a video, listening sion of our network, our size and our geo- to a podcast. And it transforms the class- graphic presence, these developments will room; the student arrives better prepared, contribute to the improvement of Brazilian with their curiosity aroused. education as a whole. Once again, through innovation, we will lead the transformation of Higher Education in Brazil. ENTREVISta COM O DIRETOR-PRESIDENTE 8 SUSTAINABILITY REPORT 2019 9 A new era began in 2019 with the creation of YDUQS, which was born as one of the largest private higher education groups in Brazil PROFILE YDUQS YDUQS is one of the largest private higher The creation of YDUQS will allow a broad education groups in the country, bringing and more diversified expansion of the edu- together a university, 13 university centers, cation network, preserving brands with an 53 accredited colleges, and 933 distance important presence in regional markets, and learning education (EAD) hubs accredited making it possible to reach new segments of by the Ministry of Education (MEC). With students, all without losing focus on the main administrative headquarters in the city of target audience: middle and lower middle Rio de Janeiro (RJ) and Units in all Brazilian class workers, seeking opportunities for pro- states and the Federal District, YDUQS was fessional development and access to quality officially created in July 2019, signaling the private education. beginning of a new era for Estácio Partic- ipações S.A., a publicly held corporation organized in March 2007. Considering all WATCH the institutions together, the student base in the video of the 2019 was 570.3 thousand students. GRI 102- YDUQS Manifesto 1, 102-3, 102-5, 102-7 ISABELLE CRISTINA RETAMIRO CRUZ Artistic Gymnastics Athlete, member of the Estácio Team and student of the Physical Education course. A YDUQS 10 Strategic values GRI 102-16 YDUQS will transform the panorama of higher education in Brazil through innovative teaching, which incorporates the digital reality of our time with offers for all profiles and stages of adult life, across the country.
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